McLemore v. McLemore

827 N.E.2d 1135 (2005)

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McLemore v. McLemore

Indiana Court of Appeals
827 N.E.2d 1135 (2005)

RW

Facts

Brian McLemore (plaintiff) signed a “conditional land sales contract,” or contract for deed, to buy real property from his uncle, Morris McLemore (defendant), and to pay for the property in installments. The contract stipulated that Brian would forfeit the property if he failed to meet his contractual obligations, one of which was to pay taxes on the property. Over the next three years, Brian kept up with his installments and paid off approximately 18 percent of the property’s sale price. However, when Brian missed a property-tax deadline, Morris paid the tax himself and then locked Brian out of the property. Two weeks later, Brian directed the property’s tenants to make future rent payments to Morris. Brian sued Morris for damages. Morris counterclaimed for forfeiture. The trial court found that Brian (1) breached the sale contract by failing to pay the property tax on time, (2) lacked substantial equity in the property, and (3) abandoned the property by giving up the right to receive the tenants’ rent payments. The court entered judgment that Brian had forfeited the property. Brian appealed to the Indiana Court of Appeals.

Rule of Law

Issue

Holding and Reasoning (Mathias, J.)

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