IN THE 

COURT OF APPEALS OF INDIANA 

 

 

BOB ANDERSON PONTIAC d/b/a  
MIKE ANDERSON CHEVROLET OF 
MERRILLVILLE, INC., 
Appellant, 

vs.

THE INDIANA DEPARTMENT OF  
WORKFORCE DEVELOPMENT, 
 Appellee. 

 

APPEAL FROM THE INDIANA DEPARTMENT OF WORKFORCE DEVELOPMENT 

 Case No. 06-06090 

 

 

 May 16, 2007 

 

 MEMORANDUM DECISION - NOT FOR PUBLICATION 

 

BAILEY, Judge 

Pursuant to Ind.Appellate Rule 65(D), 
this Memorandum Decision shall not be 
regarded as precedent or cited before 
any court except for the purpose of 
establishing the defense of res judicata, 
collateral estoppel, or the law of the case.



Case Summary 

 Bob Anderson Pontiac, Inc. d/b/a Mike Anderson Chevrolet of Merrillville, Inc. 
(“Anderson Pontiac”) appeals a decision of a Liability Administrative Law Judge (“LALJ”) 
concluding that Anderson Pontiac became a “successor employer” for purposes of calculating 
its contribution to the Unemployment Insurance Benefit Fund (“Fund”),1 by purchasing 
certain assets of Shaver Motors, Inc. (“Shaver Motors”). We affirm. 

Issues 

 Anderson Pontiac raises two issues on appeal, which we reorder and restate as: 

(1) Whether the LALJ erred in concluding that it was not necessary to 
include Shaver Motors as a party, and 

(2) Whether the LALJ erred in concluding that Anderson Pontiac acquired 
substantially all the assets of Shaver Motors. 


 

Facts and Procedural History 

 Shaver Motors was in the business of auto sales, auto service, and insurance, operating 
from a location in Merrillville. Meanwhile, Anderson Pontiac had been in the business of 
auto sales and auto service since 1969. In October, 2005, Anderson Pontiac agreed to 
purchase certain assets of Shaver Motors and began offering auto sales and auto service from 
the same location. 

 Shaver Motors submitted a form to the Indiana Department of Workforce 
Development (“Department”), entitled “Report of Transfer – Complete Sale” (“Complete 
Sale Form”). Appendix at 2. On the Complete Sale Form, Shaver Motors marked a box 
labeled, “Sale of Complete organization.” Id. The Department notified Anderson Pontiac 
that it had become the “successor employer” for purposes of calculating its contribution to 
the Fund. Id. at 3. Anderson Pontiac filed a written Protest, objecting to the Department’s 
determination and seeking a hearing on the issue. In so doing, Anderson Pontiac stated that it 
did not know that Shaver Motors had submitted the Complete Sale Form. Also, it attached a 
“Report of Transfer – Partial Sale” form (“Partial Sale Form”), in which Shaver Motors 
stated that it had disposed of 95% of its operations in the transfer to Anderson Pontiac. Id. at 
1. 

 During the hearing, Anderson Pontiac objected to the fact that Shaver Motors had not 
been joined as a party. The LALJ took the objection under advisement, concluded hearing 
the evidence, and later issued his Decision denying Anderson Pontiac’s Protest. This appeal 
ensued. 

Discussion and Decision 

I. Absence of Shaver Motors as a Party 

 Anderson Pontiac argues that the LALJ erred as a matter of law in concluding that it 
was not necessary to include Shaver Motors as a party. Presented with a question of law, our 
review is de novo. LinkAmerica Corp. v. Albert, 857 N.E.2d 961, 965 (Ind. 2006). 

Anderson Pontiac bases its argument on Indiana Code § 22-4-11.5-7(d), providing that 
the “predecessor employer and successor employer shall be parties to the hearing . . . .” The 
General Assembly enacted this chapter during the 2005 Session, applicable “to the 
assignment of contribution rates and transfers of employer experience accounts after 
December 31, 2005.”2 Ind. Code § 22-4-11.5-1. The statute does not define explicitly the 
date of the “assignment of contribution rates and transfers of employer experience accounts.” 
Where a statute is ambiguous, “our primary goal of statutory construction is to determine, 
give effect to, and implement the intent of the legislature.” Sees v. Bank One, Indiana, N.A., 
839 N.E.2d 154, 157 (Ind. 2005). In interpreting the language of one section, we must 
construe it with due regard for all other sections of the act. Capehart v. Capehart, 771 N.E.2d 
657, 661 (Ind. Ct. App. 2002). Section 7 of the same chapter, upon which Anderson Pontiac 
relies, provides that “contribution rates of both employers shall be recalculated, and the 
recalculated rate made effective on the effective date of the transfer.” 

 

Here, there is no dispute that the transfer occurred in October, 2005. In light of the 
language in Section 7, making the recalculation effective on the date of the transfer, we 
conclude that Section 1 makes this chapter applicable to all such transfers occurring after 
January 1, 2006. Accordingly, this chapter is not applicable here.3

Alternatively, Anderson Pontiac argues in its Reply Brief that Shaver Motors was 
an interested party for purposes of the statutes governing this administrative adjudication 
or that Shaver Motors was a necessary or indispensable party under Indiana Trial Rule 19. 
The LALJ shall notify interested parties of the hearing date. Ind. Code § 22-4-32-5. An 
interested party is “any person appearing to the [LALJ] to be necessary or indispensable 
to the determination of the issues involved in the hearing.” Ind. Code § 22-4-32-6. No 
reported case applies or interprets either section.4 Accordingly, we rely upon T.R. 19 in 
analyzing this issue. 

 T.R. 19 provides as follows: 

(A) A person who is subject to service of process shall be joined as a 
party in the action if: 

(1) in his absence complete relief cannot be accorded among 
those already parties; or 
(2) he claims an interest relating to the subject of the action and 
is so situated that the disposition of the action in his absence 
may: 
(a) as a practical matter impair or impede his 
ability to protect that interest, or 
(b) leave any of the persons already parties 
subject to a substantial risk of incurring 
double, multiple, or otherwise inconsistent 
obligations by reason of his claimed 
interest. 


If he has not been so joined, the court shall order that he be 
made a party. If he should join as a plaintiff but refuses to do so, he 
may be made a defendant. 


(B) Notwithstanding subdivision (A) of this rule when a person 
described in subsection (1) or (2) thereof is not made a party, the 
court may treat the absent party as not indispensable and allow the 
action to proceed without him; or the court may treat such absent 
party as indispensable and dismiss the action if he is not subject to 
process. In determining whether or not a party is indispensable the 
court in its discretion and in equity and good conscience shall 
consider the following factors: 

(1) the extent to which a judgment rendered in the person’s 
absence might be prejudicial to him or those already parties; 
(2) the extent to which, by protective provisions in the judgment, 
by the shaping of relief, or other measures, the prejudice can 
be lessened or avoided; 
(3) whether a judgment rendered in the person’s absence will be 
adequate; 
(4) whether the plaintiff will have an adequate remedy if the 
action is dismissed for nonjoinder. 

 

Anderson Pontiac makes no argument that the absence of Shaver Motors prevented the 
parties from being accorded complete relief. To the contrary, the sole function of the 
litigation was to determine Anderson Pontiac’s status for purposes of calculating its 
contribution to the Fund. Nor does Anderson Pontiac assert how it will be subject to 
inconsistent obligations by virtue of the predecessor’s absence. Anderson Pontiac asserts 
that it was prejudiced by the absence of Shaver Motors, arguing simply that it “was forced to 
stand alone at the hearing and defend its interests, which exposed it to 100% of the 
unemployment experience liability.” Reply Br. at 11. The analysis of this issue, infra, would 
be no different if Shaver Motors had been included as a party before the LALJ. Accordingly, 
we conclude that Anderson Pontiac has failed to demonstrate that the LALJ erred as a matter 
of law by deciding the case without Shaver Motors participating as a party. 

II. Anderson Pontiac Purchased Substantially All of Shaver Motors’ Assets 

 Anderson Pontiac further argues that the LALJ erred as a matter of law in concluding 
that it had purchased substantially all of the assets of Shaver Motors. A decision of the LALJ 
is conclusive and binding as to all questions of fact. Ind. Code § 22-4-32-9. An assignment 
of errors that the decision is contrary to law shall be sufficient to present both the sufficiency 
of the facts found to sustain the decision, and the sufficiency of the evidence to sustain the 
finding of facts.5 Ind. Code § 22-4-32-12. In considering similar provisions of the 
Unemployment Compensation Act, the Indiana Supreme Court described our review as 
follows: 

In sum, basic facts are reviewed for substantial evidence, legal propositions are 
reviewed for their correctness. The best that can be said for ultimate facts or 
“mixed questions” as a general proposition is that the reviewing court must 
determine whether the Board’s finding of ultimate fact is a reasonable one. 
The amount of deference given to the Board turns on whether the issue is one 
within the expertise of the Board. 


McClain v. Review Bd. of Ind. Dep’t of Workforce Dev., 693 N.E.2d 1314, 1318 (Ind. 
1998). 

 Indiana Code § 22-4-10-6(a)(2) provides that when an employer acquires 
“substantially all the assets of another employer,” the successor employer shall “assume the 
position of the predecessor with respect to all the resources and liabilities of the 
predecessor’s experience account.”6 This Court has noted that the phrase “substantially all” 
is not a fixed percentage, but an elastic term. Astral Indus., Inc. v. Ind. Emp. Sec. Bd., 419 
N.E.2d 192, 197 (Ind. Ct. App. 1981) (quoting Harris v. Egan, 60 A.2d 922, 924 (Conn. 
1948)) (holding that accounts receivable do not constitute assets for purposes of this statute).7 
Significantly, the parties do not dispute that Shaver Motors completed two Department 
forms; initially, a Complete Sale Form, in which Ronald Shaver indicated that the transfer 
constituted a “Sale of Complete organization” and later, a Partial Sale Form, in which he 
indicated that 95% of Shaver Motors’s operations were included in the transfer. App. at 25. 


Finally, the contract lists various assets included in the sale, including new vehicle inventory, 
used vehicle inventory, new parts, customer lists, real estate, furniture, Shaver Motors’s 
rights as a franchised Chevrolet dealer, and the right to use the insignia of Shaver Motors for 
two years.8 Given this evidence, we conclude that substantial evidence supported the LALJ’s 
findings and the LALJ’s conclusion that Anderson Pontiac purchased substantially all of 
Shaver Motors’s assets was reasonable. 

Conclusion 

 We conclude that the LALJ did not err in deciding the case without the predecessor 
employer as a party or in concluding that Anderson Pontiac acquired substantially all of the 
assets of Shaver Motors. 

Affirmed. 

 

SHARPNACK, J., and MAY, J., concur.