Rainbow Realty Group, Inc. v. CarterAnnotate this Case
The Supreme Court affirmed in part and reversed in part the judgment of the trial court in this landlord-tenant dispute, holding that the parties' rent-to-buy agreement was not a land-sale contract but a rental agreement subject to Indiana's residential landlord-tenant statutes.
Plaintiffs and Defendants entered into a purported rent-to-buy contract regarding a house. When Defendants fell behind in their payments, Plaintiffs tried to evict them. The case resulted in a small claims court order allowing Plaintiffs to retake possession. On appeal, Plaintiffs sought damages and attorney's fees, plus costs to clean and re-rent the property. Defendants asserted various counterclaims, including failure to meet landlord obligations under the residential landlord-tenant statutes. The trial court entered judgment for Defendants, concluding, inter alia, that the agreement was unlawful and unenforceable. The Supreme Court affirmed in part and reversed and remanded in part, holding (1) the parties' agreement was subject to the protections afforded by the residential landlord-tenant statutes; and (2) Defendants' claim that Plaintiffs violated Indiana's Deceptive Consumer Sales Act was without merit.