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Published by the Indiana Office of Court Services

Belcher v. Kroczek, No. 45A03-1311-CT-436 , __ N.E.3d __ (Ind. Ct. App., July 9, 2014).

July 10, 2014 Filed Under: Civil Tagged With: Appeals, N. Vaidik

Vaidik, C.J.
Case Summary
Indiana Trial Rule 75(A) allows a case to be filed in any county in Indiana. In this case, Catherine Kroczek, a Lake County dentist, filed suit against William W. Belcher in Lake County under Trial Rule 75(A)(2). Belcher later filed a motion to transfer venue, and a dispute arose over whether Dr. Kroczek had properly established preferred venue in Lake County.
We conclude that preferred venue does not lie in Lake County. In relevant part, Trial Rule 75(A)(2) provides that preferred venue may lie in the county where the chattels at issue are located. When identifying chattels, our Courts have emphasized their transferrable nature. At issue here is Dr. Kroczek’s reputation, privacy, and identity, none of which may be transferred. We therefore conclude that they are not chattels, and Dr. Kroczek may not invoke Trial Rule 75(A)(2). We reverse.
…
…Here, Dr. Kroczek alleges injury to her reputation, privacy, and identity, but none of these things are transferrable. For this reason, they are inherently different from patents, money judgments, and publicity rights. We therefore conclude that they are not chattels. [Footnote omitted.]
Goodwill, however, may qualify as chattel. There are two types of goodwill: enterprise goodwill and professional goodwill. Enterprise goodwill is a business asset that is “generally transferrable to others and has a value to others.” Jay Myoung Yoon v. Sunsook Yoon, 711 N.E.2d 1265, 1269 (Ind. 1999). Enterprise goodwill is subject to division in dissolution proceedings. Id. “In contrast, the goodwill that depends on the continued presence of a particular individual is a personal asset, and any value that attaches to a business as a result of this ‘personal goodwill’ represents nothing more than the future earning capacity of the individual and is not divisible.” Id.
But goodwill cannot serve as the basis for preferred venue in this case. Dr. Kroczek’s complaint does not allege an injury to enterprise goodwill: enterprise goodwill is a business asset, and Dr. Kroczek has not claimed any ownership in a business or dentistry practice. And if Dr. Kroczek’s claim that her “personal and business reputations have been and continue to be damaged” implicates goodwill, it merely refers to her future earning capacity, which is a non-transferrable personal asset. We therefore conclude that Dr. Kroczek has not established preferred venue in Lake County based on Indiana Trial Rule 75(A)(2), and Belcher is entitled to transfer venue to Marion County based on his residence. See T.R. 75(A)(1).
Reversed.
NAJAM, J., and BROWN, J., concur.
 

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