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Factual and Procedural Background

This appeal arises from a decision by the LaPorte County Board of Zoning Appeals granting a variance and special exception that allowed the contract purchasers, the Smalls, to operate a sanitary landfill on a 52-acre portion of a 288-acre tract they contracted to purchase from the Estate of Everett Fail. Neighboring property owners, the Fails, objected to the variance and special exception. The zoning board initially granted the petitions, but the circuit court vacated that decision due to the board's failure to enter findings and remanded the case. Upon rehearing, the board made findings and again granted the variance and special exception. The Fails sought certiorari review in the circuit court, which affirmed the board's decision. This appeal followed, raising six categories of alleged error.

Legal Issues Presented

  1. Whether a conflict of interest existed that disqualified a zoning board member from participating in the decision.
  2. Whether the failure of zoning board members to separately sign findings constitutes reversible error.
  3. Whether the evidence was sufficient to support the zoning board's findings regarding traffic, character of the district, and property values.
  4. Whether the contract purchasers (Smalls) had standing to seek the variance and special exception.
  5. Whether an unnecessary hardship existed to justify granting the variance, and if such hardship could be claimed by the purchasers.
  6. Whether the rezoning of the land constituted impermissible spot zoning subject to reversal.

Arguments of the Parties

Appellants' (Fails) Arguments

  • A zoning board member, Blint, had a conflict of interest due to past and recent equipment sales to Small, requiring disqualification.
  • The zoning board's failure to have members separately sign findings invalidated the decision.
  • The evidence did not support the findings that the variance would not materially increase traffic congestion, alter the district's character, or reduce adjacent property values.
  • The Smalls lacked standing because their contract purchase had not been approved by the probate court.
  • No unnecessary hardship existed to justify the variance, and even if it did, the Smalls could not claim it since they purchased with knowledge of zoning restrictions.
  • The rezoning of the property from residential to agricultural was spot zoning and should be reversed.

Appellees' Arguments

  • The board member Blint’s participation did not constitute a conflict of interest sufficient to disqualify him.
  • Proceedings before zoning boards are not subject to strict procedural rules; the unsigned findings were harmless error because each finding was separately moved, seconded, and unanimously adopted.
  • There was substantial evidence to support the board’s findings, including expert testimony and evidence of road improvements mitigating traffic concerns.
  • The Smalls, as contract purchasers, had sufficient standing to seek the variance despite the probate court approval pending.
  • An unnecessary hardship existed because the land was unsuitable for farming due to its physical characteristics, and hardship claims extend to purchasers as well as original owners.
  • The alleged spot zoning concerned a prior zoning amendment and was not subject to review in this certiorari proceeding.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Zell v. Borough of Roseland, 125 A.2d 890 (N.J. 1956) Conflict of interest does not require proof of actual influence on vote. Used to explain that conflict of interest is a question of fact; court examined facts and found no disqualifying conflict.
Josephson v. Planning Board of Stamford, 199 A.2d 690 (Conn. 1964) Conflict of interest may be found if situation undermines public confidence and security in zoning authority. Supported the standard for assessing conflict of interest; court found no such undermining here.
Devon Civic League v. Marion Co. Bd. Zoning Appeals, 224 N.E.2d 66 (Ind. App. 1967) Zoning board proceedings are not governed by strict judicial procedural rules. Supported harmless error ruling regarding unsigned findings.
Metropolitan Bd. of Zoning Appeals v. Froe Corp., 209 N.E.2d 36 (Ind. App. 1965) Majority vote requirement and procedural regularity in zoning board decisions. Distinguished as inapposite because all findings were unanimously adopted in this case.
Bd. of Zoning Appeals v. School City of Mishawaka, 145 N.E.2d 302 (Ind. App. 1957) Appellate and trial court review of zoning board decisions limited to substantial evidence standard. Applied to affirm sufficiency of evidence supporting board’s findings.
Bowen v. Metropolitan Bd. of Zoning Appeals, 317 N.E.2d 193 (Ind. App. 1974) Standing requires a sufficient interest to show injury from zoning action. Applied to hold that contract purchaser had standing.
Metropolitan Bd. of Zoning Appeals v. Gateway Corp., 268 N.E.2d 736 (Ind. 1971) Trial court may take additional evidence in certiorari proceedings to supplement record. Justified admission of evidence regarding probate court approval of sale.
City of East Chicago v. Sinclair Refining Co., 111 N.E.2d 459 (Ind. 1953) Unnecessary hardship and conforming use are factual determinations for zoning boards. Applied to affirm hardship findings based on land characteristics.
Bd. of Zoning Appeals v. Waskelo, 168 N.E.2d 72 (Ind. 1960) Hardship cannot be claimed for conditions created by petitioner. Distinguished; hardship claims available to purchasers despite knowledge of restrictions.
Bowman v. Metropolitan Bd. of Zoning Appeals, 331 N.E.2d 739 (Ind. App. 1975) Hardship claims extend to purchasers as well as original owners. Supported holding that Smalls could claim hardship.
Suess v. Vogelgesang, 281 N.E.2d 536 (Ind. App. 1972) Similar to Bowman on hardship claims by purchasers. Further supported hardship claim availability to purchasers.
Penn v. Metropolitan Plan Comm., 228 N.E.2d 25 (Ind. App. 1967) Definition and treatment of spot zoning. Referenced by appellants but court found no reviewable issue on spot zoning here.
Bryant v. Lake County Trust Co., 284 N.E.2d 537 (Ind. App. 1972) Spot zoning challenges not reviewable via certiorari on prior zoning amendments. Applied to reject spot zoning argument.
First Church of the Nazarene v. Weaver, 289 N.E.2d 155 (Ind. App. 1972) Similar to Bryant on limitations of certiorari review of zoning amendments. Applied to support rejection of spot zoning claim.
City Plan Comm. v. Pielet, 338 N.E.2d 648 (Ind. App. 1975) Clarifies scope of zoning amendment review. Referenced in context of spot zoning issue.
Kessler-Allisonville C.L. v. Marion Co. Bd. of Z.A., 209 N.E.2d 43 (Ind. App. 1965) Failure to assign error waives review. Applied to note waiver of spot zoning claim by failure to assign error in petition.

Court's Reasoning and Analysis

The court first examined the alleged conflict of interest of zoning board member Blint. It recognized that conflict of interest is a question of fact and that the relevant inquiry is whether the situation undermines public confidence in zoning authority. The court found that the limited and remote sales of equipment from Blint to Small, all paid in cash and unrelated to the landfill operation, did not constitute a disqualifying interest. Thus, Blint’s participation was proper.

Regarding unsigned findings, the court acknowledged precedents requiring signed findings in judicial proceedings but emphasized that zoning boards are not bound by strict procedural rules. Because each finding was separately moved, seconded, and unanimously adopted, any failure to sign was harmless error.

In assessing the sufficiency of evidence, the court applied the standard limiting review to whether substantial evidence of probative value supported the board’s findings. Despite conflicting evidence, the court found sufficient support for findings that traffic congestion would not materially increase, the district’s character would not be materially altered, and property values would not be diminished. Expert testimony and proposed road improvements supported these conclusions, and the court declined to reweigh evidence.

The court addressed standing, holding that a contract purchaser has sufficient interest to seek a zoning variance. Although the probate court had not approved the sale at the zoning board hearing, the contract purchasers’ interest was undisputed, and the circuit court properly admitted additional evidence of probate approval during certiorari review. The statute prohibiting trial de novo did not bar taking this supplementary evidence.

On hardship, the court recognized that determining unnecessary hardship is a factual matter for the zoning board. The land’s unsuitability for farming due to physical characteristics supported hardship. The court rejected the argument that hardship could not be claimed by purchasers who bought with knowledge of zoning restrictions, citing precedent that hardship claims extend to purchasers as well as original owners.

Finally, the court considered the spot zoning claim. It held that challenges to prior zoning amendments are not reviewable in certiorari proceedings and that the appellants waived the issue by failing to assign error properly. Thus, no reversible error arose from the alleged spot zoning.

Holding and Implications

The judgment of the circuit court affirming the LaPorte County Board of Zoning Appeals' grant of a variance and special exception to operate a sanitary landfill is affirmed.

The direct effect is to uphold the zoning board’s decision allowing the Smalls to operate the landfill on the designated property. The court’s decision affirms the principles that zoning board members’ conflicts of interest must be clearly established to disqualify participation, that zoning board procedural irregularities are subject to harmless error analysis, and that contract purchasers have standing to seek variances. No new precedent was established beyond the application of existing zoning and appellate standards.

GLENN FAIL, EVA NETTIE FAIL, CALVIN JONAS AND SAM CADY v. LaPORTE COUNTY BOARD OF ZONING APPEALS ET AL.

1. ZONING — Conflict of Interest. — The existence of a conflict of interest in a zoning action is generally acknowledged to be a question of fact. p. 196.

2. ZONING — Conflict of Interest. — The trial court may find a conflict of interest in a zoning action upon a consideration of whether the situation is one reasonably calculated to weaken public confidence and undermine the public's sense of security for the protection of individual rights in the exercise of zoning authority. p. 196.

3. ZONING — Actions Before Zoning Board. — Proceedings before zoning boards are not governed by the rules of strictness that apply in judicial proceedings. p. 197.

4. ZONING — Failure of Board Members to Sign Findings — Harmless Error. — Any error that occurred from failure of zoning board members to separately sign its findings was harmless where each finding was separately moved, seconded and unanimously adopted. p. 197.

5. APPEAL — Review of Zoning Board's Decision to Grant a Variance. — Function of trial court and Court of Appeals in reviewing decision of zoning board in granting a variance and special exception to operate a sanitary landfill is limited to ascertaining whether there was any substantial evidence of probative value to support the board's findings. p. 197.

6. APPEAL — Review of Zoning Action — Court Could not Reweigh Evidence. — Court of Appeals could not weigh the evidence to reach a conclusion different from that of the zoning board and board could have concluded from evidence presented that granting of variance and special exception for sanitary landfill would not materially change traffic patterns, the character of the district, or lower the market value of adjacent property. p. 198.

7. ZONING — Action for Variance — Standing. — An applicant for a variance must have standing, that is, he must have a sufficient interest in the subject matter of the application that he will actually be injured by the governmental action or prospective action to enforce the zoning ordinance. p. 199.

8. ZONING — Action for Variance — Standing Existed. — Where property buyer's interest was that of contract purchaser of land for which zoning variance was sought for sanitary landfill, such interest gave buyer sufficient standing to seek such variance, and contract was not rendered a nullity where proper approval was required by the probate court. p. 199.

9. ZONING — Action on Petition for Certiorari — Additional Evidence Proper. — Evidence in an action to review the grant of a variance and special exception to operate a sanitary landfill, that sale of property to contract purchaser had been properly consummated was a proper supplement to enable the trial court to correctly decide the appeal where such action was taken in a certiorari proceeding and not in a trial de novo. p. 199.

10. ZONING — Action for Variance. — Whether an unnecessary hardship exists allowing the grant of a variance is a question of fact to be determined by the county board of zoning appeals. p. 200.

11. ZONING — Action for Variance. — The primary question in an action for a variance is whether the land in question may reasonably be put to a conforming use. p. 200.

12. ZONING — Action for Variance — Evidence Sustained Grant of Variance. — Where land in question was zoned for agricultural use but was not suitable for farming due to its rolling, brush-covered character and poor soil quality, evidence sustained grant of variance and special exception for use as sanitary landfill. p. 200.

13. ZONING — Action for Variance — Hardship. — A petition for a variance cannot claim unnecessary hardship from a condition which he created. p. 200.

14. ZONING — Action for Variance — Claim of Hardship Available to Purchaser. — Where an unnecessary hardship is shown to exist upon the basis of the terms of the zoning ordinance as they apply to the land, the ability to claim the hardship is available to a purchaser as well as the original owner. p. 200.

15. ZONING — Question of "Spot-zoning" — Earlier Zoning Amendment not Proper Subject for Review. — Even if property owner had challenged the rezoning of land for purpose of establishing a sanitary landfill as spot-zoning, alleged illegality of an earlier zoning amendment changing land status from residential to agricultural use was not subject to attack by petition for certiorari. p. 201.

GARRARD, J.

This appeal challenges a circuit court decision upholding a county zoning board's grant of a variance and special exception which were necessary for the Smalls to be able to operate a sanitary landfill in compliance with a zoning ordinance. We affirm.

The record disclosed that Smalls had contracted to purchase a 288 acre tract from the Estate of Everett Fail, deceased. They petitioned for the variance and special exception to enable them to utilize 52 acres from the tract as a landfill. Neighboring property owners (hereinafter referred to as "Fail") objected. The zoning board granted the petitions and Fail appealed to the circuit court. The court vacated the decision and remanded the case to the zoning board because the board had failed to enter findings. After a new hearing, the board made findings and again granted the variance and special exception. Fail again sought certiorari in the circuit court. The court affirmed the board and this appeal followed. The errors raised by Fail fall into six categories.

I. Conflict of Interest

In the proceedings before the zoning board, no challenge was made to participation by any of the members in the decision. Before the circuit court, however, Fail asserted that answers to certain post-hearing interrogatories disclose that board member Blint should have disqualified himself. Error is assigned for the failure of the court to set aside the board's determination upon the basis of Blint's participation.

Fail relies upon IC 1971, 18-7-5-1 which provides:

"No member of the . . . board of zoning appeals . . . shall participate in the hearing or decision . . . upon any zoning matter . . . in which he is directly or indirectly interested in a financial sense. . . ."

The evidence presented to the trial court disclosed that Blint is the owner and operator of Blint Equipment, Inc., a retail dealership selling automobiles and equipment. Over a five-year period which ended some ten years before these proceedings were initiated, Mr. Small, who was in the landscaping business, had purchased two tillers and a used tractor from the dealership. In addition, after the board had granted the petition the first time and before its decision had been vacated by the court, Small purchased a new small Ford landscaping tractor from Blint Equipment, Inc. All the purchases had been made for cash. There was no evidence that the latter purchase was suitable for use in a landfill operation or that Blint would sell equipment to Small to operate the landfill.

Fail, citing Zell v. Borough of Roseland (N.J. 1956), 125 A.2d 890, argues that it is unnecessary to establish that the prohibited interest actually affected the member's [1, 2] vote. While we agree, that conclusion does not answer the question of whether a prohibited conflict of interest has been shown to exist. The existence of such an interest is generally acknowledged to be a question of fact. See, 82 Am.Jur.2d, Zoning Planning, § 65, at 490; Anno.: 10 A.L.R.3d 694. Thus, in reaching its determination upon the facts, the trial court is not limited to ascertaining whether a party has actually exercised improper influence. The court may find a conflict of interest upon a consideration of whether the situation is one reasonably calculated to weaken public confidence and undermine the public's sense of security for the protection of individual rights in the exercise of zoning authority. Josephson v. Planning Board of Stamford (1964), 151 Conn. 489, 199 A.2d 690, 10 A.L.R.3d 687.

Yet in appealing from an adverse determination, Fail is appealing from a negative judgment on this issue. From the facts as recited, we cannot say there was but one conclusion a reasonable mind would reach, and that it was contrary to that reached by the trial court. We therefore find no error in the court's determination that board member Blint was not disqualified from participating in the decision.

II. Unsigned Findings

It is argued that the board's decision should have been set aside because the findings made by the board and upon which its decision was based were not separately signed by the board members. As authority Fail cites a line of cases requiring a trial court to separately sign special findings of fact. These decisions appear to emanate from Peoria Marine and Fire Ins. Co. v. Walser (1864), 22 Ind. 73, where the court held that the findings entered by the court could not constitute a basis for appellate review unless they were signed by the judge or were incorporated into the bill of exceptions signed by the judge.

Whether these precedents are viable under our present rules of civil procedure is doubtful, but need not now be decided. Proceedings before zoning boards are not governed by [3, 4] the rules of strictness that apply in judicial proceedings. Devon Civic League v. Marion Co. Bd. Zoning Appeals (1967), 140 Ind. App. 519, 224 N.E.2d 66. The record of the proceedings before the board discloses that each finding entered by the board was separately moved, seconded and unanimously adopted. If the findings should have been signed, under these circumstances the error was harmless. Metropolitan Bd. of Zoning Appeals v. Froe Corp. (1965), 137 Ind. App. 403, 209 N.E.2d 36, relied on by Fail, is inapposite. In that case only four members were present and only two voted in favor of the action taken. The illegality which required reversal was the lack of a majority vote which was not cured by an attempt to add votes after the board lost jurisdiction of the proceeding.

III. Evidence to Support Findings

The board found that granting the variance would not materially increase congestion in the streets. It also found that the proposed use would not materially change the character of the district or lower the market value of adjacent property. Fail claims the evidence was insufficient to sustain these findings.

Our function, and that of the trial court, is limited to ascertaining whether there was any substantial evidence of probative value to support the findings. Bd. of Zoning Appeals v. School City of Mishawaka (1957), 127 Ind. App. 683, 145 N.E.2d 302. While the evidence was in conflict, we cannot say that error was committed.

Although it appeared that traffic would increase, there was evidence regarding improvements to be made to the roads, including suitable sleeper and turn-off lanes. The board could have concluded that the increase in traffic would be sufficiently offset by the proposed improvements so that congestion would not materially increase.

On the question of the character of the area and market values, the evidence was in direct conflict. Mr. Small's engineer and two real estate appraisers testified there would be no adverse [6] effect. The engineer presented a detailed study considering precautions to be taken to insure proper operation and location of the landfill. We may not now reweigh the evidence to reach a conclusion different from that of the board.

IV. Standing

At the time of the hearing before the zoning board, Smalls' interest in the real estate was that of contract purchasers. The contract was not offered in evidence to the board. However, the Smalls' representations in this regard were not challenged by Fail. Instead, Fail argued to the zoning board that while an ordinary contract purchaser had standing to seek relief from the board, the Smalls did not because there had been no order entered in the proceedings in the Estate of Everett Fail, deceased, approving the contract or sale.

At the second hearing a recording of the evidence produced at the first hearing was admitted. It is suggested therein that at least one of the Smalls' applications was joined in by the administrator of the estate. However, from the transcript before us, we are unable to determine whether the administrator actually joined or whether the petitions recited his joinder but his signature was not secured. Appellees' argument makes no issue of this, and our decision assumes arguendo that the administrator did not join in one or more of the petitions before the board.

In the subsequent certiorari proceeding before the circuit court, both the contract and administrator's deed were permitted in evidence. In addition, by stipulation, the court took judicial notice of the record in the estate. Fail asserts this amounted to a trial de novo, which is prohibited by IC 1971, 18-7-5-92.

It is true that an applicant for a variance must have "standing." He must have a sufficient interest in the subject matter of the application that he will actually be injured [7] by the governmental action or prospective action to enforce the zoning ordinance. See, Bowen v. Metropolitan Bd. of Zoning Appeals (1974), 161 Ind. App. 522, 317 N.E.2d 193.

Smalls' interest was that of a contract purchaser of the real estate. While the sale required proper approval by the probate court, this did not render the contract a nullity. We hold [8] that Smalls had sufficient standing to seek a variance.

Since their standing as contract purchasers was sufficient to enable them to seek a variance, and since the fact that they were contract purchasers was undisputed (except as to the [9] necessity of court approval), the trial court properly admitted evidence establishing the court approval and perfection of the sale. The statute IC 1971, 18-7-5-92, while prohibiting a trial de novo, permits the trial court on a petition for certiorari to take additional evidence to supplement the evidence and facts disclosed by the return where such evidence is necessary for the proper disposition of the case. Evidence that the sale to Smalls had been properly consummated was a proper supplement to enable the court to correctly decide the appeal. See, Metropolitan Bd. of Zoning Appeals v. Gateway Corp. (1971), 256 Ind. 326, 268 N.E.2d 736.

V. Hardship

Fail next contends that an evidence was insufficient to support the findings that a hardship would exist if the variance was not granted. Fail also contends that even if a hardship existed, it did not apply to Smalls, who purchased the property with knowledge of the zoning requirements.

Whether an unnecessary hardship exists is a question of fact to be determined by the board. The primary question is whether the land in question may reasonably be put to a conforming [10-12] use. City of East Chicago v. Sinclair Refining Co. (1953), 232 Ind. 295, 111 N.E.2d 459. Here the land was zoned for agricultural use. The board found that the 52 acres proposed to be used for the landfill was not suitable for farming due to its rolling, brush-covered character and poor soil quality. The evidence sustained such a finding.

City of East Chicago v. Sinclair Refining Co., supra, imposes two other requirements to a determination of unnecessary hardship. One is that the condition be unique to the owner rather than one that is general to the neighborhood and might therefore indicate unreasonableness of the zoning ordinance itself. Here the balance of the land concededly was farmable. The other requirement is that the use requested in the variance not alter the essential character of the locality. This we have considered supra under III.

Even so, it is claimed that no hardship existed as to Smalls since they agreed to purchase the land with knowledge of the zoning requirements. As stated in Bd. of Zoning Appeals v. Waskelo (1960), 240 Ind. 594, 168 N.E.2d 72, a petitioner cannot claim unnecessary hardship from a condition which he created.

The doctrine of Waskelo does not apply. Subsequent decisions have made it clear that where an unnecessary hardship is shown to exist upon the basis of the terms of the ordinance as [14] they apply to the land, the ability to claim the hardship is available to a purchaser as well as the original owner. Bowman v. Metropolitan Bd. of Zoning Appeals (1975), 165 Ind. App. 212, 331 N.E.2d 739, reh. den. 336 N.E.2d 708; Suess v. Vogelgesang (1972), 151 Ind. App. 631, 281 N.E.2d 536. VI. Spot Zoning

Fail's final argument urges that the court erred in failing to make a finding upon the "issue" of spot zoning, and that a reversal is necessary because the evidence demonstrates spot zoning.

Under the zoning ordinance, landfills can be operated only upon land zoned for agricultural use. Fail argues that the land in the area had all been zoned for residential use until the 288 acre tract was rezoned for agricultural use. He contends the 288 acres was "singled out for different treatment than the surrounding area" and that this constituted spot zoning. See, e.g., Penn v. Metropolitan Plan Comm. (1967), 141 Ind. App. 387, 228 N.E.2d 25.

We find that Fail has presented no reviewable issue. The question concerns the amendment of the zoning ordinance which occurred prior to these proceedings. Even if Fail had [15] challenged the rezoning as spot zoning in his petition for certiorari, which he did not, the alleged illegality of the zoning amendment was not subject to attack in this fashion. Bryant v. Lake County Trust Co. (1972), 152 Ind. App. 628, 284 N.E.2d 537; First Church of the Nazarene v. Weaver (1972), 154 Ind. App. 157, 289 N.E.2d 155; cf. City Plan Comm. v. Pielet (1975), 167 Ind. App. 324, 338 N.E.2d 648. As to failure to assign an error in the petition for certiorari constituting a waiver, see, Kessler-Allisonville C.L. v. Marion Co. Bd. of Z.A. (1965), 137 Ind. App. 610, 209 N.E.2d 43.

The judgment is affirmed.

Hoffman, J., concurs; Lowdermilk, J., sitting by designation, concurs.

NOTE. — Reported at 355 N.E.2d 455.

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Comments

FAIL ET AL. v. LaPORTE CO. BD. ZONING APP
(Oct 14, 1976)