FOR PUBLICATION
ATTORNEYS FOR APPELLANT: ATTORNEY FOR APPELLEE:
JEFFREY A. MODISETT LESLIE C. SHIVELY
Attorney General of Indiana Fine & Hatfield
Evansville, Indiana
BARBARA GASPER HINES
Deputy Attorney General
IN THE
COURT OF APPEALS OF INDIANA
INDIANA DEPARTMENT OF )
TRANSPORTATION, )
)
Appellant-Defendant, )
)
vs. ) No. 82A01-9908-CV-261
)
SOUTHERN BELLS, INC., d/b/a )
TACO BELL, et al., )
)
Appellee-Plaintiff. )
APPEAL FROM THE VANDERBURGH SUPERIOR COURT
The Honorable Robert J. Tornatta, Judge
Cause No. 82D03-9903-CP-791
November 19, 1999
OPINION - FOR PUBLICATION
GARRARD, Judge
Case Summary
The Indiana Department of Transportation (INDOT) appeals the trial courts denial of its
motion to dismiss and grant of a preliminary injunction to Southern Bells, et
al. (Business Owners
).
INDOT asserts that there is an adequate legal remedy
which precludes the grant of injunctive relief. We reverse and remand.
Facts and Procedural History
INDOT issued a permit to Hahn Development to construct road improvements in the
states right-of-way at the intersection of State Road 62 (also referred to as
the Lloyd Expressway) and Red Bank Road in Vanderburgh County, Indiana. In
the permit process, Hahn submitted construction plans which were approved by INDOT.
State Road 62, westbound, has two through lanes, a right turn lane, and
a left turn lane at Red Bank Road. State Road 62, eastbound,
has two through lanes and a left turn lane at Red Bank Road.
Red Bank Road is a two-lane road. There is a private
frontage road approximately 140 feet south of the eastbound edge of the pavement
of State Road 62. The Business Owners are located on the private
frontage road. There are entrances to the access road from Red Bank
Road, Rosenberger Road, by the Steak & Shake, and another entrance by Schnucks
grocery store. The entrance to the access road from Red Bank Road
is within the states right-of-way for State Road 62.
Under the road improvement project to be completed by Hahn, State Road 62
will have two left turn lanes for traffic turning south onto Red Bank
Road. There will be three lanes of traffic in each direction on
Red Bank Road. A six inch concrete curb median will be constructed
from State Road 62 and will extend past the entrance to the frontage
road. The median conforms to state engineering standards. A traffic impact
study was prepared by Bernardin Lockmueller & Associates indicating that the increased traffic
in the area posed safety concerns at the State Road 62/Red Bank Road
intersection. The Evansville Urban Transportation Study, the county and city engineers, and
the Area Planning Commission reviewed and approved the study. At a private
meeting, INDOT, along with these entities, concluded that the median was necessary for
public safety. The proposed median will extend past the access road thereby
preventing southbound traffic on Red Bank Road from turning onto the access road
to reach the Business Owners establishments.
The Business Owners moved for a temporary injunction, enjoining the road improvements on
Red Bank Road. INDOT moved for dismissal based on the Business Owners
failure to state a claim for relief. The trial court granted the
Business Owners a temporary injunction and denied INDOTs motion for dismissal.
Discussion and Decision
INDOT asserts that the trial court erred in granting the injunction because the
Business Owners have an adequate remedy at law. The grant or denial
of an injunction lies within the sound discretion of the trial court and
will not be overturned unless it was arbitrary or amounted to an abuse
of discretion.
Wagler Excavating v. McKibben Const., 679 N.E.2d 155, 157 (Ind.
Ct. App. 1997) (citing Saurer v. Board of Zoning Appeals, 629 N.E.2d 893,
896 (Ind. Ct. App. 1994)), trans. denied. The party seeking an injunction
carries the burden of demonstrating an injury which is certain and irreparable if
the injunction is denied. Id. In determining whether to grant an
injunction, the trial court must weigh whether the party seeking the injunction has
an adequate remedy at law and the court must consider whether the injunction
is in the public interest. Dible v. City of Lafayette, 713 N.E.2d
269, 272 (Ind. 1999). If the movant fails to prove any one
or more of the requirements for injunctive relief, a grant of a preliminary
injunction is an abuse of discretion. Jay County Rural Elec. Membership Corp.
v. Wabash Valley Power Assn, Inc., 692 N.E.2d 905, 909 (Ind. Ct. App.
1998), trans. denied.
INDOT asserts that the Business Owners have an adequate remedy at law, inverse
condemnation
See footnote
, and thus injunctive relief is improper. In their reply brief, the
Business Owners contend that injunctive relief is proper because INDOTs actions were for
a private purpose and INDOT failed to comply with the eminent domain statutory
procedures.
Although injunctive relief may be necessary to remedy interference with landowner rights for
a private purpose, where an alleged taking occurs for what is clearly a
public purpose, equitable relief is generally unavailable as a matter of law where
an action for compensation can be brought subsequent to the taking.
Dible,
713 N.E.2d at 274. In the present case, INDOT established a valid
public purpose for the median construction: public safety. A traffic study prepared
by Bernardin Lockmueller & Associates indicated that the Hahn development would increase traffic
at the intersection. The Evansville Urban Transportation Study, the city and county
engineers, and the Area Planning Commission all reviewed and approved the study.
Due to the increased traffic that would be created by the Hahn development,
INDOT determined that a median was necessary to protect the public safety.
In its order, the trial court acknowledged that INDOT had a legitimate public
purpose in constructing the median.
The Business Owners contend, however, that the road improvements are for the sole
benefit of a private entity, Hahn Development, and thus an injunction is appropriate.
See City of Muncie v. Pizza Hut, 171 Ind. App. 397, 357
N.E.2d 735, 737-38 (1976) (finding injunctive relief proper for a taking determined to
be private because it served to benefit only a few citizens). We
disagree. As the trial court concluded, given the growth in the area,
the road improvements are necessary for public safety. Although private entities may
benefit, the purpose is for public safety. Highland Realty, Inc. v. Indianapolis
Airport Authority, 182 Ind. App. 439, 395 N.E.2d 1259 (1979) (holding that exercise
of eminent domain for a public purpose which is primary will not be
defeated by the fact that an incidental private use or benefit will result).
Given this valid public purpose, if and to the extent INDOTs actions
constitute any taking of the Business Owners property interests, they would be entitled
to just compensation.
See footnote
However, there is an adequate legal remedy available to
them: a suit for inverse condemnation. See Ind. Code § 32-11-1-12See footnote ; see also
VanKeppel v. County of Jasper, 556 N.E.2d 333, 337 (Ind. Ct. App. 1990)
(finding that the appropriate remedy for a public taking of private land is
a damage claim in inverse condemnation).
The Business Owners, however, contend they are entitled to an injunction because INDOT
failed to comply with the procedures of the eminent domain statute. We
find this argument unavailing. As the supreme court noted in
Dible, it
is precisely such instances--where interests in land are taken for public use without
having been obtained under the eminent domain statute--for which Ind. Code § 32-11-1-12,
authorizing inverse condemnation actions, is designed. Dible, 713 N.E.2d at 273-74 n.7.
Thus, injunctive relief is improper.
Furthermore, absent fraud, bad faith, or arbitrary and capricious behavior on the part
of INDOT, the court may not interfere with INDOTs decision to construct a
median strip on Red Bank Road. Our courts have clearly recognized the
authority of the legislature over the state highway system.
State v. Roberts,
226 Ind. 106, 76 N.E.2d 832, 835 (1948). Under the separation of
powers doctrine, courts are prohibited from substituting their judgment for that of the
legislature where the legislature has not acted arbitrarily. Ind. Const. art. IV,
§ 1; see also Rassi v. Trunkline Gas Co., 262 Ind. 1, 240
N.E.2d 49, 53 (1968). In the present case, the trial court acknowledged
a public purpose and found no evidence of bad faith or arbitrary behavior
by INDOT. However, the court proceeded to grant an injunction to the
Business Owners. The fact that the court and the Business Owners may
perceive a better design that would appear to satisfy all the parties involved
does not permit the court to grant injunctive relief.
The Business Owners seek only injunctive, not monetary, relief. They seek to
prevent INDOT from performing an action that it not only has the express
legislative power, but the responsibility, to perform.
See Ind. Code § 8-23-2-4.1.
Thus, the trial court abused its discretion in granting injunctive relief to
the Business Owners. See Town Board of Orland v. Greenfield Mills, 663
N.E.2d 523 (Ind. 1996) (holding that injunctive relief is improper when there exists
an adequate legal remedy and therefore the landowners complaint seeking only injunctive relief
must be dismissed). The Business Owners claim for injunctive relief is inappropriate
under these facts because they have an adequate remedy at law.
Reversed and remanded with instructions to dismiss the Business Owners complaint.
SULLIVAN, J. and BAILEY, J. concur.
Footnote:
Inverse condemnation is a cause of action against an entity with
the power to condemn (usually a governmental defendant) to recover the value of
property which has been taken in fact, even though no formal exercise of
the power of eminent domain has been attempted by the taking agency.
While the typical taking occurs when the government acts to condemn property in
the exercise of its power of eminent domain, the entire doctrine of inverse
condemnation is predicated on the proposition that a taking may occur without such
formal proceedings. The action is brought by the owner rather than the
condemnor. It is not based on tort, but on the constitutional prohibition
of the taking of property without just compensation.
City of Gary v. Belovich, 623 N.E.2d 1084, 1090 n.1 (Ind. Ct. App.
1993) (citations omitted).
Footnote:
We do not find it necessary to decide whether or not such
a taking has occurred.
Footnote:
Ind. Code § 32-11-1-12 provides that a person having an interest
in land which has been taken for public use without having been appropriated
under the procedures set forth in Ind. Code § 32-11-1-1, et. seq., may
proceed to have his damages assessed in accordance with that chapter.