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Is this normal SC procedure?

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Shannon Stinks

Junior Member
What is the name of your state (only U.S. law)? Indiana

Here is a general overview of this recent case. A friend and I entered
into an LLC two years ago and opened a retail shop. We signed a four year
lease and were required to sign a personal guarantee on the lease, as well
as our spouses. After just one year, this friend "quit", refused to come to
work and formally withdrew from the LLC. I was left to run the shop alone
and tried to do so but was unable to do it alone and was forced to close
the shop and break the lease as of December 2008. In February and March, I
received two letters from the landlords demanding immediate full payment of
$65,000 for the remainder of the lease, which I most certainly could not
pay. I then heard nothing else regarding this until 9/23/2009, when I
received a letter from Lawrence Township Small Claims informing me that on
7/22/09, a default judgement had been entered against me for $7500 and I
was ordered to appear on 10/21/2009 to answer as to income, property, etc.
I went today and to my surprise, the only person I was called in to speak
to was one of the landlords himself who is also an attorney. I never went
before a judge at all. The judgment was for $6000 and this
attorney/landlord is charging $1500 for his legal fees. (He is also
charging this to two other people on the lease, and they were also never
served until after the judgment. The fourth person settled for his share
months ago.) I signed a payment agreement for $100 a month because there is no way I can come even close to paying this amount. (So did the other two
people.) He also told me a notice was served by taping it to my front door
on 6/12/2009. My questions are thus...1)Can he charge those legal fees when
he himself is the plaintiff? 2)IC 33-34-1-2 states that a landlord/tenant
dispute must be filed in the township where the real estate was located if
a small claims court is located there, which would have been Washington
Township Small Claims. Is wrong venue grounds for dismissal? 3) Rule 3 Part
A of the Indiana Rules Of Court states that if service is by leaving it at
the defendant's residence, it must also be sent by first class mail. It
never was to any of the three defendants. Is this grounds for appeal
because I was not served? 4)Because I was never notified that I had even
been sued until two months had passed from the date of the judgement and
defendants have only 30 days to appeal, can I still appeal on any of the
above questions if they are valid arguments?
 


Proserpina

Senior Member
What is the name of your state (only U.S. law)? Indiana

Here is a general overview of this recent case. A friend and I entered
into an LLC two years ago and opened a retail shop. We signed a four year
lease and were required to sign a personal guarantee on the lease, as well
as our spouses. After just one year, this friend "quit", refused to come to
work and formally withdrew from the LLC. I was left to run the shop alone
and tried to do so but was unable to do it alone and was forced to close
the shop and break the lease as of December 2008. In February and March, I
received two letters from the landlords demanding immediate full payment of
$65,000 for the remainder of the lease, which I most certainly could not
pay. I then heard nothing else regarding this until 9/23/2009, when I
received a letter from Lawrence Township Small Claims informing me that on
7/22/09, a default judgement had been entered against me for $7500 and I
was ordered to appear on 10/21/2009 to answer as to income, property, etc.
I went today and to my surprise, the only person I was called in to speak
to was one of the landlords himself who is also an attorney. I never went
before a judge at all. The judgment was for $6000 and this
attorney/landlord is charging $1500 for his legal fees. (He is also
charging this to two other people on the lease, and they were also never
served until after the judgment. The fourth person settled for his share
months ago.) I signed a payment agreement for $100 a month because there is no way I can come even close to paying this amount. (So did the other two
people.) He also told me a notice was served by taping it to my front door
on 6/12/2009. My questions are thus...
1)Can he charge those legal fees when he himself is the plaintiff?
Yes he can.

2)IC 33-34-1-2 states that a landlord/tenant
dispute must be filed in the township where the real estate was located if
a small claims court is located there, which would have been Washington
Township Small Claims. Is wrong venue grounds for dismissal?
Perhaps, but it will only delay the inevitable; you will be served eventually and within the correct jurisdiction ( it's not unheard of to be served the day of the hearing with the refiled suit which will inevitably be ready to go about 20 seconds after the attorney/landlord is served with your motion to dismiss).

3) Rule 3 Part
A of the Indiana Rules Of Court states that if service is by leaving it at
the defendant's residence, it must also be sent by first class mail. It
never was to any of the three defendants. Is this grounds for appeal
because I was not served?
Perhaps but again it will only postpone the inevitable.

4)Because I was never notified that I had even
been sued until two months had passed from the date of the judgement and
defendants have only 30 days to appeal, can I still appeal on any of the
above questions if they are valid arguments?
You can request a copy of the proof of service from the court but regardless these things will usually only mean the suit is dismissed without prejudice - in other words, the plaintiff will refile and if you are to prevail you actually need a defense to the suit itself. Do you have one?

For what it's worth $7500 is a really good deal compared to $65,000....
 

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