Cherokee Air Products, Inc. v. Buchan

14 N.E.3d 831, 38 I.E.R. Cas. (BNA) 1525, 2014 WL 3856437, 2014 Ind. App. LEXIS 379
CourtIndiana Court of Appeals
DecidedAugust 6, 2014
DocketNo. 02A05-1312-PL-635
StatusPublished
Cited by3 cases

This text of 14 N.E.3d 831 (Cherokee Air Products, Inc. v. Buchan) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cherokee Air Products, Inc. v. Buchan, 14 N.E.3d 831, 38 I.E.R. Cas. (BNA) 1525, 2014 WL 3856437, 2014 Ind. App. LEXIS 379 (Ind. Ct. App. 2014).

Opinion

OPINION

GARRARD, Senior Judge.

Cherokee Air Products, Inc., Cherokee Family Limited Partnership, Tippmann Industrial Products, Inc., Dennis Tippmann, Sr. Family Partnership, LLP, and Tippmann Farm, LLC (collectively “Cherokee”) bring this interlocutory appeal from the trial court’s order granting partial summary judgment in favor of Bruce E. Buchan in an action alleging breach of his employment contract and seeking damages. Concluding that there are no genuine issues of material fact precluding the entry of partial summary judgment in favor of Buchan, we affirm.

Sometime in the late 1980s, Buchan, in his capacity as a certified public accountant for an independent accounting firm, began working with Dennis Tippmann, Sr. and Dennis Tippmann, Jr. providing tax [833]*833preparation services and advice on business matters. Later in 2004, the Tippmanns sought the assistance of an individual to provide full-time assistance to them in managing and investing the family’s wealth. The Tippmanns extended an offer to Buchan in 2005 to work for Cherokee, various business entities owned by the Tippmann family. After successfully reaching an agreement on Buchan’s salary, Buchan began working for Cherokee in the summer of 2005 as an at-will employee. No employment contract was signed at that time.

On December 28, 2006, Cherokee presented Buchan with a draft employment contract. On May 14, 2007, Buchan proposed a revision to the draft contract adding a new section pertaining to his compensation. On December 11, 2007, Cherokee and Buchan executed the employment contract, which included Bu-chan’s revision.1 Because Buchan had been employed by Cherokee since 2005, the contract was made retroactive to January 1, 2006. The contract provisions will be discussed more specifically below, but, in general, the contract provided for an initial term of five years with an automatic renewal for up to three successive five-year periods. Either party could elect not to renew the contract by providing a ninety-day written notice prior to the expiration of the current term. If Buchan continued to be employed by Cherokee for twenty years, his contract would renew for successive one-year periods.

On September 29, 2010, Cherokee provided Buchan with a notice of non-renewal of his employment contract. Buchan’s last day of employment was to be December 31, 2010. Buchan continued to work for Cherokee after receiving the notice, and on October 1, 2010, provided Cherokee with a notice of 'retirement indicating that his retirement would be effective December 31, 2010. On January 14, 2011, Cherokee sent a letter to Buchan informing him that Cherokee did not recognize his ability to retire after receipt of the notice of non-renewal and that Cherokee considered Bu-chan to be employed on December 31, 2010.

In February 2011, Buchan filed a complaint against Cherokee alleging that he did not receive timely compensation for accrued paid vacation days and that Cherokee had breached the contract by not paying him the remaining portion of his bonus upon his retirement. Cherokee filed a counterclaim against Buchan alleging breach of the duty of loyalty, breach of contract, fraud and constructive fraud, disgorgement, and conversion. Buchan filed a motion for partial summary judgment and Cherokee filed a motion for summary judgment in the matter. After a hearing on the motions for summary judgment and other motions filed, the trial court took the matter under advisement, ultimately granting Buchan’s motion for partial summary judgment on the issue of his entitlement to retire. The trial court denied the remainder of Buchan’s motion for summary judgment and denied Cherokee’s motion for summary judgment. The trial court granted Cherokee’s request to certify the interlocutory order and this Court accepted Cherokee’s interlocutory appeal.

Cherokee appeals from the trial court’s order granting Buchan’s motion for partial summary judgment. “When reviewing a grant or denial of a motion for summary judgment, our standard of review is the [834]*834same as it is for the trial court.” Reed v. Reid, 980 N.E.2d 277, 285 (Ind.2012). We have set forth the applicable standard of review as follows:

Summary judgment is appropriate only if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. The party moving for summary judgment has the burden of making a prima facie showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. Once the moving party meets these two requirements, the burden shifts to the non-moving party to show the existence of a genuine issue of material fact by setting forth specifically designated facts. We must accept as true those facts alleged by the nonmoving party, construe the evidence in favor of the nonmoving party, and resolve all doubts against the moving party.

Ryan v. Brown, 827 N.E.2d 112, 117 (Ind.Ct.App.2005) (internal citations omitted). “[T]he fact that the parties have made cross-motions for summary judgment does not alter our standard of review. Rather, we consider each motion to determine whether the moving party is entitled to judgment as a matter of law.” Blasko v. Menard, Inc., 831 N.E.2d 271, 273 (Ind.Ct.App.2005) (citation omitted).

Buchan sought partial summary judgment on the issue of his contractual entitlement to retire. Therefore, the trial court was required to interpret his employment contract. “Summary judgment is especially appropriate in the context of contract interpretation because the construction of a written contract is a question of law.” TW Gen. Contracting Servs., Inc. v. First Farmers Bank & Trust, 904 N.E.2d 1285, 1287-88 (Ind.Ct.App.2009).

When the language of a written contract is not ambiguous, its meaning is a question of law for which summary judgment is particularly appropriate. In interpreting an unambiguous contract, we give effect to the intentions of the parties as expressed in the four corners of the instrument. Clear, plain, unambiguous terms are conclusive of that intent. We will neither construe clear and unambiguous provisions nor add provisions not agreed upon by the parties.

Kaghann’s Korner, Inc. v. Brown & Sons Fuel Co., 706 N.E.2d 556, 565 (Ind.Ct.App.1999) (citations omitted), clarified on reh’g on other grounds. A contract is not ambiguous merely because the parties disagree as to its proper construction; rather, a contract will be found to be ambiguous only if reasonable persons would differ as to the meaning of its terms. The Trs. of Ind. Univ. v. Cohen, 910 N.E.2d 251, 257 (Ind.Ct.App.2009). “We interpret a written contract by reading the contract as a whole, and we attempt to construe the language so as to not render any words, phrases, or terms ineffective or meaningless.” DLZ Indiana, LLC v. Greene Cnty., 902 N.E.2d 323

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14 N.E.3d 831, 38 I.E.R. Cas. (BNA) 1525, 2014 WL 3856437, 2014 Ind. App. LEXIS 379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cherokee-air-products-inc-v-buchan-indctapp-2014.