NAJAM, Judge.
Clarke Kahlo and Howard Elder ("Plaintiffs"), individually and as purported class representatives, filed a complaint against the City of Indianapolis ("the City"), the Metropolitan Development Commission ("the Commission"), and the Indiana Sports Corporation ("the ISC") (collectively "Defendants") seeking declaratory, injunctive, and monetary relief arising from Defendants' amendment to the 1985 Project Agreement for Private Redevelopment of Square 88 ("the 1985 Agreement") executed by the City and the ISC. Defendants filed a motion for judgment on the pleadings, which the trial court treated as a motion for summary judgment. Following a hearing, the court denied Defendants' motion, treating the same as a motion for summary judgment. On interlocutory appeal, we consider the following restated issues:
We affirm in part, reverse in part, and remand with instructions.
In 1981, the Commission adopted certain resolutions to create the Union Station Center Urban Renewal Plan ("the Renewal Plan").
In March 1985, the Commission passed Resolution No. 29, which authorized the City's Department of Economic and Housing Development to purchase Square 88 in furtherance of the Renewal Plan. Square 88 was then purchased along with other real property as part of the Renewal Plan.
Id. at 146, 148-49 (emphasis added). In other words, the covenant required the ISC to maintain a plaza for the use and benefit of the public, but a buyout provision allowed the ISC to terminate the covenant before its stated expiration date. Following execution of the Warranty Deed, the ISC caused to be constructed an office building, an underground parking lot, and a plaza as required by the 1985 Agreement. The plaza contemplated in the agreement is commonly known as Pan Am Plaza.
On December 19, 2007, some twenty-two years after execution of the 1985 Agreement, the Commission adopted Resolution 07-R-70, which authorized the Department of Metropolitan Development to "enter into an amendment with [the ISC] reducing the plaza area subject to the Agreement's Restrictive Covenant to ten thousand (10,000) square feet." Id. at 161. On December 21, the ISC and the "Consolidated City of Indianapolis, Indiana, acting by and through its Department of Metropolitan Development[,]" executed an "Amendment to Project Agreement for Private Redevelopment of Square 88" ("the Amendment"). In relevant part, the Amendment carried out Resolution 07-R-70, replacing the Restrictive Covenant in the 1985 Agreement with the following language:
Id. at 163 (emphases added). Thus, the Amendment reduced the size of the plaza from 88,000 square feet to 10,000 square feet and removed the thirty-year term of the restrictive covenant. Instead, the now smaller plaza shall remain for public use in perpetuity unless the ISC, or its successors or assigns, pays to the City three million dollars adjusted for inflation.
In July 2008, Plaintiffs filed their Class Action Complaint.
On October 8, Plaintiffs filed a response to Defendants' motion for judgment on the pleadings. Defendants subsequently filed a joint reply. On June 24, 2009, at Defendants' request, the court held a hearing on the motion for judgment on the pleadings. And on September 21, the trial court entered its order ("Order"), which contains sua sponte findings and conclusions. The trial court treated Defendants' motion as one for summary judgment due to Defendants' designation of exhibits to their answers. The court found in relevant part that Plaintiffs had standing to pursue the complaint under the public standing doctrine;
Defendants appeal the Order denying their joint motion for judgment on the pleadings. A motion for judgment on the pleadings tests the sufficiency of the complaint to state a redressable claim, not the facts to support it. Book v. Hester, 695 N.E.2d 597, 599 (Ind.Ct.App.1998). The test to be applied is whether the allegations of the complaint, taken as true and in the light most favorable to the nonmovant and with every intendment regarded in his favor, sufficiently state a redressable claim. Id. When the pleadings present no issues of material fact and the facts shown by the pleadings clearly entitle a party to judgment, the entry of judgment on the pleadings is appropriate. See id. But when a motion for judgment on the pleadings is predicated, as here, on matters extraneous to the pleadings,
When reviewing a trial court's ruling on a motion for summary judgment, we apply the same standard as the trial court. No deference is given to the trial court's judgment. Hutchens v. MP Realty Group-Sheffield Square Apartments, 654 N.E.2d 35, 37 (Ind.Ct.App.1995), trans. denied. Summary judgment is appropriate only if the designated evidence shows that there is no genuine issue of material fact and that a party is entitled to judgment as a matter of law. T.R. 56(C).
Defendants contend that Plaintiffs lack standing to bring the Complaint seeking declaratory, injunctive, and monetary relief. Specifically, Defendants question Plaintiffs' standing because they were not parties to the contract containing the Restrictive Covenant. Defendants also argue that Plaintiffs are not third party beneficiaries of that contract and have no standing under the public standing doctrine. Plaintiffs counter that they have standing both as third party beneficiaries and under the public standing doctrine. We conclude that Plaintiffs have standing as third party beneficiaries to the 1985 Project Agreement.
"The judicial doctrine of standing focuses on whether the complaining party
Normally, "one not a party to a contract has no standing to enforce it." Gregory & Appel Ins. Agency v. Phila. Indem. Ins. Co., 835 N.E.2d 1053, 1058 n. 7 (Ind.Ct.App.2005) (quoting Nahmias Realty, Inc. v. Cohen, 484 N.E.2d 617, 623 (Ind.Ct.App.1985)). But a third party beneficiary of a contract has standing to enforce it. For a contract to be enforceable by a third party,
Cain v. Griffin, 849 N.E.2d 507, 514 (Ind. 2006).
Here, the parties dispute whether the restrictive covenant in the 1985 Agreement created an obligation for the ISC to maintain the plaza in favor of the public. To resolve that dispute, we must construe the restrictive covenant.
King v. Ebrens, 804 N.E.2d 821, 826 (Ind. Ct.App.2004) (citation omitted). The original covenanters' intent must be determined from the specific language used and the situation as it existed at the time the covenant was made. Id. (citations omitted). Specific words and phrases cannot be read exclusive of other contractual provisions. Id. Rather, the parties' intentions when entering into the contract must be determined by reading the contract in its entirety and attempting to construe contractual provisions so as to harmonize the agreement. Id.
Here, the recitals in the 1985 Agreement provide in relevant part that the City desired "that a portion of the Project Area [Square 88] be subject to certain restrictive covenants restricting the use and development of said portion to a plaza which shall be accessible to the public as provided for in [the 1985] Agreement[.]" Appellants' App. at 143-44 (emphasis added).
Appellants' App. at 148 (emphasis added).
The City and the ISC executed the 1985 Agreement in furtherance of the City's Union Station Center Urban Renewal Plan, which it established to revitalize a blighted area on the south side of downtown Indianapolis. Once fulfilled, the terms of the 1985 Agreement furthered the intent of the Renewal Plan as well as terms in a separate project agreement executed under the Renewal Plan.
Still, Defendants contend that the 1985 Agreement does not contain "affirmative language that places a direct obligation or duty upon the Indiana Sports Corporation for the benefit of the public." Appellants' Brief at 16. We cannot agree. Again, the 1985 Agreement states specifically that "the use of [the plaza] by the public ... shall not be unreasonably withheld or delayed." Appellants' App. at 148. That the obligation is written in passive rather than active voice is of no moment. The meaning of the restrictive covenant is clear: the City and the ISC agreed that 88,000 square feet of the project area would be set aside for a plaza to be "accessible to the public" under the stated terms. Id. at 144. Thus, we reject Defendants' argument that the restrictive covenant in the 1985 Agreement does not obligate the ISC to provide a plaza for the public.
In sum, the specific language used in the restrictive covenant and the situation as it existed at the time the covenant was made show that the City and the ISC intended for the ISC to develop and maintain an 88,000-square-foot plaza for the use and benefit of the public. See King, 804 N.E.2d at 826. As such, Plaintiffs have standing as third party beneficiaries to file this action to enforce the terms of the restrictive covenant.
Defendants also challenge the trial court's finding that there exists a genuine
We first consider whether the 1985 Agreement was a redevelopment plan or a project agreement. The construction of a contract and an action for its breach are matters of judicial determination. Niezer v. Todd Realty, Inc., 913 N.E.2d 211, 215 (Ind.Ct.App.2009). Construction of a written contract is generally a question of law for which summary judgment is particularly appropriate. Id. Our standard of review in such cases is de novo. Id. When construing a contract, unambiguous contractual language is conclusive upon the parties and the courts. Id. If an instrument's language is unambiguous, the parties' intent is determined from the four corners of the instrument. Id.
If, however, a contract is ambiguous or uncertain, its meaning is determined by extrinsic evidence and its construction is a matter for the fact-finder. Id. When interpreting a written contract, the court should attempt to determine the parties' intent at the time the contract was made, which is ascertained by the language used to express their rights and duties. Id. The contract is to be read as a whole when trying to determine the parties' intent. Id. The court will make every attempt to construe the contractual language such that no words, phrases, or terms are rendered ineffective or meaningless. Id. at 216. The court must accept an interpretation of the contract that harmonizes its provisions as opposed to one that causes its provisions to conflict. Id.
To construe the 1985 Agreement, we look first to the statutory framework for renewal plans and redevelopment projects. Indiana Code chapter 36-7-15.1 governs the redevelopment of blighted areas in Marion County. "Redevelopment plan" is not a defined term, but Indiana Code Section 36-7-15.1-8 describes the requirements for a redevelopment plan. That statute provides in relevant part:
The redevelopment or urban renewal plan must include:
Ind.Code § 36-7-15.1-8(b). Here, in 1985 Defendants executed a document entitled
Indiana Code Section 36-7-25-5 describes project agreements as follows:
Here, the terms of the 1985 Agreement require the ISC to build an office building, an underground parking facility, and the plaza at issue in this case. Those requirements constituted, in part, the consideration for the purchase of Square 88. Thus, the agreement "contains terms and provisions... for the development of the project... including ... [the] type and character of consideration for the disposition, [and] conditions and covenants as to future actions of the commission and the developer[.]" See Ind.Code § 36-7-25-5. The agreement also refers to the "Union Station Center Urban Renewal Plan ... to guide the redevelopment of Square 88 and the other declared areas[.]" Appellants' App. at 143. And the language used in the Amendment states that the City and the ISC "desire to amend, modify and supplement the Project Agreement [.]" Appellants' App. at 162 (emphasis added). In sum, the language employed and the material elements contained in the 1985 Agreement indicate that the agreement is a project agreement.
Still, Plaintiffs contend that the trial court's conclusion that the nature of the 1985 Agreement is "clearly confusing" shows the existence of a genuine issue of material fact on that issue. In support of that conclusion, the court made the following findings:
Hence, the trial court found that the references to Indiana Code chapter 36-7-15.1, which governs urban renewal plans, conflict with other references to project agreements. We cannot agree.
These references can be easily harmonized.
In sum, we conclude that the 1985 Agreement is not ambiguous. The contracting parties intended to execute a project agreement and, in 2007, an amendment to the project agreement, respectively. The terms of those agreements do not meet the statutory requirements under Indiana Code Section 36-7-15.1-8 for redevelopment plans. As such, we conclude that the 1985 Agreement is a project agreement and that the trial court erred when it found the existence of a genuine issue of material fact regarding the nature of that agreement.
Defendants next challenge the trial court's denial of summary judgment regarding whether the reduction in the plaza's size accomplished through the Amendment required City-County Council approval pursuant to Indiana Code Section 36-1-11-3. Specifically, Defendants challenge the trial court's conclusion that a genuine issue of material fact exists regarding the applicability of Indiana Code Section 36-1-11-3. That statute provides, in relevant part: "Except as provided in section 3.2 of this chapter [regarding cities with populations of less than 105,000], the fiscal body of a unit must approve ... every sale of real property having an appraised value of fifty thousand dollars ($50,000) or more[.]" Ind.Code § 36-1-11-3(c)(1). The parties do not dispute that Square 88 had an appraised value of $50,000 or more.
The trial court found that the Warranty Deed conveying Square 88 to the ISC in 1985 ("the Deed") was ambiguous because it could be construed as conveying title either from the City or from
In construing a deed, a court should regard the deed in its entirety, considering the parts of the deed together so that no part is rejected. Timberlake, Inc. v. O'Brien, 902 N.E.2d 843, 850 (Ind. Ct.App.2009) (citation omitted). "[W]here there is no ambiguity in the deed, the intention of the parties must be determined from the language of the deed alone." Brown v. Penn Centr. Corp., 510 N.E.2d 641, 641 (Ind.1987). Courts consider the "known use to which the property was to be subjected and therefrom give the conveyance the effect intended by the parties." Ross, Inc. v. Legler, 245 Ind. 655, 199 N.E.2d 346, 348 (Ind.1964) (footnote omitted).
The Commission was established by statute "in the Department of Metropolitan Development." Ind.Code § 36-7-4-202(c) (emphasis added). The Commission has all powers, duties, functions, and obligations prescribed by law as of August 31, 1981. Ind.Code § 36-3-5-6(a). Among its statutory powers and duties, the Commission may:
Ind.Code § 36-7-15.1-7. Real property acquired in furtherance of a redevelopment plan must be conveyed to "City of Indianapolis for the use and benefit of its Department of Metropolitan Development." See I.C. § 36-7-15.1-12(c). Similarly,
I.C. § 36-7-15.1-15(i). In this respect, the Commission operates independent from the civil city. However, "[t]he legislative body of the consolidated city [the City of Indianapolis, the City-County Council] may adopt ordinances to regulate ... (1)[t]he time that the commission holds its meetings[, and] (2)[t]he voting procedures of the commission." I.C. § 36-7-4-202(c).
Nevertheless, Plaintiffs maintain that the City, not the Commission, transferred title to Square 88 to the ISC. In support, Plaintiffs contend that Indiana Code Section 36-7-15.1-12(c) requires that the purchase of the property for the renewal plan follow negotiations. Because "the pleadings contain no evidence that there were ever any negotiations carried on by the [C]ommission to acquire [Square 88,]" Plaintiffs contend that there is insufficient evidence to show that the Commission had ever acquired title the property. Appellees' Brief at 15. "Instead, it appears that the property [was] held by the City of Indianapolis." Id. We cannot agree.
Indiana Code Section 36-7-15.1-12(c) provides:
Finally, Defendants contend that the trial court erred when it found that a genuine issue of material fact exists as to whether the execution of the Amendment triggered the buyout provision of the restrictive covenant in the 1985 Agreement. Specifically, they argue that the mutual amendment of the 1985 Agreement did not eliminate the restrictive covenant but merely altered its terms. Because the Amendment modified but did not terminate the restrictive covenant, they argue, the Amendment did not trigger the buyout provision. We must agree.
Whether the restrictive covenant was terminated by the execution of the Amendment requires that we construe the covenant. Again, the construction of a written contract containing restrictive covenants is a question of law for which summary judgment is particularly appropriate. King, 804 N.E.2d at 826. Here, the restrictive covenant in the 1985 Agreement provides that the covenant shall expire upon the thirtieth anniversary of the closing date or upon the payment of liquidated damages to the City. The covenant provides for a buyout in the event of early termination, but not in the event of a modification.
Again, the City and the ISC agreed to amend the restrictive covenant. The Amendment reduced the size of the plaza from 88,000 square feet to 10,000 square feet, but in consideration for that reduction in size the term of the restrictive covenant was extended from its original thirty years to perpetuity. These are material alterations to the terms of the restrictive covenant, but they did not result in "termination" of the restrictive covenant since the covenant remained in effect as amended.
We can envision a scenario where the reduction in plaza size might create a question of fact as to whether the restrictive covenant had been effectively terminated. But Plaintiffs have not pointed to any evidence in the record to establish a question of fact in this regard. Thus, we conclude that the trial court erred when it found an issue of material fact as to whether the Amendment resulted in the termination of the restrictive covenant.
We conclude that Plaintiffs have standing to bring the Complaint as third party beneficiaries. The terms of the restrictive covenant in the 1985 Agreement created an obligation for the ISC to make the plaza available for the use and benefit of the public. The facts that the obligation was stated in passive language and that
Additionally, we conclude that the Commission, not the City, conveyed title to Square 88 to the ISC under the terms of the 1985 Agreement. The statutory framework provides that the Commission may acquire, hold title, and convey property in furtherance of an urban renewal plan. This distinguishes the role and responsibility of the Commission and the Department of Metropolitan Development from those of the civil city, which is otherwise authorized to acquire, own, and convey real estate for other purposes. And the lack of any evidence of negotiations for the initial purchase of Square 88 is also insignificant. Indiana Code Section 36-7-15.1-12(c) provides a framework for negotiations, but negotiations are not required for the purchase of property that is to be included in a redevelopment plan. And finally, we conclude that the effect of the Amendment, which reduced the size of the plaza but extended the term of the restrictive covenant in perpetuity, did not terminate the restrictive covenant in the 1985 Agreement. As such, the trial court erred when it found the existence of a genuine issue of material fact as to whether execution of the Amendment triggered the buyout provision in the restrictive covenant.
In sum, we affirm the trial court's grant of summary judgment on the issue of standing, although on different reasoning, and we reverse the trial court's denial of summary judgment on the issues of the nature of the 1985 Agreement, the applicability of Indiana Code Section 36-1-11-3, and whether the execution of the Amendment triggered the buyout provision in the restrictive covenant of the 1985 Agreement. Thus, we affirm in part, reverse in part, and remand with instructions for the trial court to enter summary judgment for Defendants accordingly.
Affirmed in part, reversed in part, and remanded with instructions.
BAKER, C.J., and MATHIAS, J., concur.