Baylor Intermodal, Inc. v. Chris Hood, Clay Daniel Walton & Adams PLC, and Fast Trak Investment Company, Inc. (mem. dec.)

Indiana Court of Appeals·Decided September 5, 2017·No. 10A01-1612-PL-2770·Published

Opinion

MEMORANDUM DECISION

Pursuant to Ind. Appellate Rule 65(D), this Memorandum Decision shall not be regarded as precedent or cited before any FILED court except for the purpose of establishing Sep 05 2017, 5:49 am the defense of res judicata, collateral CLERK

estoppel, or the law of the case. Indiana Supreme Court Court of Appeals

and Tax Court

ATTORNEY FOR APPELLANT ATTORNEY FOR APPELLEE Paul L. Jefferson CLAY DANIEL WALTON & McNeely Stephenson ADAMS, PLC Indianapolis, Indiana Theodore W. Walton Clay, Daniel, Walton & Adams PLC

Louisville, Kentucky

IN THE

COURT OF APPEALS OF INDIANA

Baylor Intermodal, Inc., September 5, 2017 Appellant-Defendant, Court of Appeals Case No.

10A01-1612-PL-2770

v. Appeal from the Clark Circuit Court

Chris Hood, Clay Daniel Walton The Honorable Bradley B. Jacobs, & Adams PLC, and Fast Trak Judge Investment Company, Inc., Trial Court Cause No. Appellee-Plaintiff. 10C02-1606-PL-73

Mathias, Judge.

[1] Baylor Intermodal, Inc. (“Baylor”) appeals the Clark Circuit Court’s order

dismissing this case for lack of personal jurisdiction over all named defendants. Court of Appeals of Indiana | Memorandum Decision 10A01-1612-PL-2770 | September 5, 2017 Page 1 of 17

[2] On appeal, Baylor challenges the trial court’s conclusion that the defendants’ contacts with Indiana were insufficient to establish the “minimum contacts” necessary for the court to exercise personal jurisdiction. Concluding that the trial court’s ruling is consistent with the requirements of personal jurisdiction as defined in Indiana Trial Rule 4.4(A) and the Constitutions of this state and the United States, we affirm.

Facts and Procedural History [3] Attorney Ted Walton (“Walton”) represented Hood in a federal wrongful

termination action after Hood’s employer, Baylor, terminated him for refusing to haul an overweight load. Hood’s termination occurred on May 12, 2011, in Joliet, Illinois. Baylor is an Indiana corporation with its principal office in Indiana. Its drivers haul freight through multiple states.

[4] Hood was a resident of the Commonwealth of Kentucky and was referred to Walton’s firm, Clay, Daniel, Walton & Adams, PLC (“CDWA”), by the Louisville Bar Association. CDWA has its sole business office in Kentucky, and all of its fourteen attorneys are licensed in Kentucky. Walton and two other CDWA attorneys maintain Indiana bar licenses. Baylor retained an Indiana law firm after Walton filed a complaint on Hood’s behalf with the Occupational Safety and Health Administration (“OSHA”) in Chicago on August 8, 2011.

[5] On May 22, 2013, a federal Administrative Law Judge in Louisville, Kentucky, found that Baylor had inappropriately terminated Hood. Baylor sought review

Court of Appeals of Indiana | Memorandum Decision 10A01-1612-PL-2770 | September 5, 2017 Page 2 of 17 of the ALJ’s findings by an Administrative Review Board in Washington, D.C. The Board upheld the ALJ’s determination on December 4, 2015.

[6] On January 29, 2016, Baylor filed a Petition for Review of the Board’s decision with the United States Court of Appeals for the Seventh Circuit in Chicago. While the Seventh Circuit appeal was pending, Hood met with Baylor’s president, Mark Fessel (“Fessel”), on or about March 17, 2016, in Elizabethtown, Kentucky. At this point in the proceedings, mediation of the controversy had stalled, and Baylor was facing bankruptcy. Hood was also unemployed and in financial distress. Without attorneys for either side present, they entered into an agreement purporting to settle the entirety of the disagreements between them. Two more meetings between Fessel and Hood were held at Baylor’s offices in Indiana in March and April 2016. The writings produced in these meetings stated Baylor would not be a party to any attorney fee or lien disputes and that Hood would be responsible for the lien payments.

[7] On March 18, 2016, Walton learned that his client’s agreement with Baylor called for Baylor to make settlement payments directly to Hood, in contravention of the contingency fee contract Hood had with Walton. Walton notified Baylor that disbursement of payments to Hood would render Baylor liable for repayment of liens on the proceeds Hood received, which included Walton’s lien for attorney fees. Hood had also executed two additional liens,

Court of Appeals of Indiana | Memorandum Decision 10A01-1612-PL-2770 | September 5, 2017 Page 3 of 17 one with the New Jersey loan-issuing corporation Fast Trak on June 29, 2015. Appellant’s App. Vol. 2, pp. 34–42.1

[8] On June 24, 2016, Baylor filed the declaratory action in Clark Circuit Court and named Hood, CDWA, and Fast Trak as defendants. Baylor sought the trial court’s determination of the parties’ rights under the settlement agreement between Baylor and Hood. The complaint specifically asked the court to determine that Baylor was authorized to pay Hood according to the terms of their settlement agreement and that Baylor was not obligated for repayment of liens to CDWA or Fast Trak.

[9] On July 13, 2016, CDWA filed a motion to dismiss and a brief in support in which Walton argued the court should dismiss Baylor’s action pursuant to Indiana Trial Rule 12(B)(1)(2)(7), Indiana Trial Rule 4.4(A) and (D), Indiana Trial Rule 19, and, in the alternative, principles of comity and forum non conveniens. CDWA also cited the complaint it filed in Jefferson Circuit Court in Kentucky two days earlier, on July 11, 2016, which named all interested parties, including both known lienholders. CDWA argued the Clark Circuit Court should defer to the Kentucky proceedings and explained:

Indiana courts apply the “most intimate contacts” test to resolve any choice of law issues. Citing Standard Fusee Corp., 940 N.E.2d 810, 815 (Ind. 2010) (citing W.H. Barber Co. v. Hughes, 223 Ind.

1 While Fast Trak is named in Baylor’s complaint, it did not respond or appear. The final lien was between Hood and a family member, William Miller (“Miller”) of Kentucky. Miller is not named in Baylor’s complaint, and Baylor cites a release signed by Miller on March 31, 2016. Appellant’s App. Vol. 2, p. 160.

Court of Appeals of Indiana | Memorandum Decision 10A01-1612-PL-2770 | September 5, 2017 Page 4 of 17 570, 63 N.E.2d 417, 423 (Ind. 1945)).… The engagement agreement between CDWA and Hood was a contract between Kentucky residents, negotiated in Kentucky, signed in Kentucky, and performed in Kentucky. The purported settlement agreement between Baylor and Hood was negotiated and signed at a Cracker Barrel in Elizabethtown, Kentucky. It is clear Kentucky law applies.

Appellant’s App. Vol. 2, pp. 53–54.

[10] On September 16, 2016, Baylor responded to CDWA’s motion to dismiss with a motion for default or summary judgment. Baylor argued that the court should deny CDWA’s motion to dismiss because personal jurisdiction over CDWA was established by Walton’s minimum contacts with the state. Appellant’s App. Vol. 3, p. 3. Those contacts included Walton’s correspondence with Baylor’s counsel, his membership with the Indiana bar, and “purposeful acts” Walton directed toward an Indiana entity. Appellant’s App. Vol. 3, pp. 5–6. Baylor argued the present controversy arose from its settlement agreement with Hood, and not from the initial OSHA complaint and proceedings. Baylor believed its settlement agreement with Hood resolved the federal controversy and was therefore the proper basis for jurisdictional analysis. That settlement agreement “is between Hood, a Kentucky resident, and Baylor, an Indiana corporation. [The] agreement was primarily negotiated in Indiana.” Baylor came to the opposite conclusion regarding CDWA’s forum non conveniens argument and the application of Indiana’s “most intimate contacts” test:

The settlement agreement [with Hood] was performed by Baylor in Indiana. The subject matter of the settlement agreement is for

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Baylor Intermodal, Inc. v. Chris Hood, Clay Daniel Walton & Adams PLC, and Fast Trak Investment Company, Inc. (mem. dec.) (Baylor Intermodal, Inc. v. Chris Hood, Clay Daniel Walton & Adams PLC, and Fast Trak Investment Company, Inc. (mem. dec.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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