KEY POINTS | INDIANA APPELLATE COURT AFFIRMS JUDGMENT WHICH LIMITED DAMAGES AND ATTORNEYS’ FEES IN FORECLOSURE JUDGMENT

1. The Court of Appeals of Indiana affirmed a circuit court judgment wherein the trial court refused to award the lender, Frank Garber, $78,803.57 in late fees, costs and attorneys’ fees against Robert Blair for contract damages resulting from Blair’s default under the terms of a note and mortgage. Garber v. Blair, 224 N.E.3d 970, *2, *6 (Ind. Ct. App. 2023).

2. The trial court refused to award Garber the late fees and penalties he sought because he failed to timely demand them in writing and failed to provide Blair an opportunity to cure the default. The court also found Garber had misinterpreted the plain language of the parties’ agreement in his calculation of damages. Notably, the trial court refused to award Garber $61,003.57 in attorneys’ fees finding Garber’s request “grossly disproportionate to the amount truly in controversy” which the court calculated to be $3,200.

3. On appeal the Indiana Court of Appeals affirmed the lower court’s judgment in the amount of $105,200 in favor of Garber. Contrary to Garber’s much higher demands, the judgment awarded outstanding principal of $97,000 (an amount not in dispute), late fees/penalties of $3,200 (instead of the $17,800 requested) and attorneys’ fees of $5,000 (instead of the $61,003.57 requested).

Click to read the full article