Christopher R. Cleary v. Charles Morlan

Indiana Court of Appeals·Decided March 6, 2026·No. 25A-PL-01590·Published·Judge Felix

Opinion

IN THE

Court of Appeals of Indiana Christopher R. Cleary, FILED Mar 06 2026, 9:24 am

Appellant-Defendant

CLERK

Indiana Supreme Court

Court of Appeals

v. and Tax Court

Charles Morlan,

Appellee-Plaintiff

March 6, 2026

Court of Appeals Case No.

25A-PL-1590

Appeal from the LaPorte Superior Court The Honorable Richard R. Stalbrink Jr., Judge Trial Court Cause No.

46D02-2302-PL-000232

Opinion by Judge Felix

Judges May and Mathias concur.

Felix, Judge.

Statement of the Case [1] Pursuant to a verbal agreement, Charles Morlan agreed to wire Christopher

Cleary’s new house for $9,000. Morlan completed the work—which by all accounts was satisfactory and passed inspection—but Cleary refused to pay. Cleary claimed the agreement was for labor and materials; Morlan claimed it was for labor only. Morlan filed a mechanic’s lien and sued Cleary to foreclose that lien. After a bench trial, the trial court entered judgment of foreclosure in favor of Morlan. Cleary now appeals, and between them, the parties raise two issues for our review:

1. Whether the trial court erred by foreclosing Morlan’s mechanic’s lien;

and

2. Whether Morlan is entitled to appellate attorneys’ fees.

[2] We affirm and remand with instructions.

Facts and Procedural History [3] In 1990, Cleary purchased the real estate located at 2007 Oriole Trail, Long

Beach, Indiana (the “Property”). At some time prior to March 2021, Cleary’s house on the Property “burned down,” Jan. Tr. Vol. II at 7. 1 Thereafter,

1 Indiana Appellate Rule 28(A) and Items 2(a), 11, and 13 of Appendix A require a court reporter to consecutively number the volumes of the Transcript; prepare only one table of contents for the entire transcript, including when multiple hearings are transcribed; and to combine multiple hearings into a single transcript, although the hearings may be split between volumes if the court reporter so chooses. Here, two hearings were transcribed, and they occurred on January 23 and May 20, 2025. The court reporter submitted

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 2 of 14

Cleary, who is a builder in Illinois, began building a new home on the Property (the “New House”).

[4] In fall 2022, Cleary solicited estimates for wiring the New House. James Lechtanski of Harbor Electric estimated his company could do the work for $25,000, which included materials and labor but did not include fixtures. Approximately $12,000 to $14,000 of that estimate was solely for labor. In mid- November, Morlan and fellow electrician Walter Wroblewski met with Cleary at the Property to determine what Cleary “wanted done.” Jan. Tr. Vol. II at 77. Soon after Morlan and Wroblewski left, Cleary and Morlan had a telephone conversation regarding payment. Morlan verbally agreed to wire the New House in exchange for $9,000 (the “Agreement”). Cleary told Morlan to “call in what [he] need[ed] to do” the job, and Cleary would “go pick it up.” Id. at 128.

[5] Morlan had Wroblewski, James Buchanan, and Darren Nichols help him complete the work. The four men had “almost 100 years” of combined experience as electricians. Jan. Tr. Vol. II at 118. Morlan “placed the order” for the materials, id. at 144; Cleary picked up and paid for the materials; and Morlan and his team completed the job as requested. Cleary was satisfied with Morlan’s work, and it was approved by a local inspector. Nevertheless, Cleary refused to pay Morlan the full $9,000 “[b]ecause [Cleary] deducted the material

two tables of contents and two sets of Transcript Volume II, one for each of the two hearings. To avoid confusion, we include the relevant month before each reference to the Transcript.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 3 of 14 list from the 9,000,” which would have left Morlan with $2,400. Jan. Tr. Vol. II at 48. Cleary and Morlan disagreed over the amount owed, and Morlan handed off the discussion to Wroblewski. Cleary told Wroblewski that “he wouldn’t pay [Morlan and his team] a red cent. . . . He said we charged way too much. Thought it was just astronomical.” Id. at 81.

[6] On December 1, 2022, Morlan recorded a $9,000.00 mechanic’s lien on the Property (the “Lien”). In February 2023, Morlan sued Cleary for foreclosure of the Lien based on Cleary’s breach of the Agreement and unjust enrichment. Cleary countersued Morlan for violating the Indiana Home Improvement Contracts Act 2 (“HICA”).

[7] At the bench trial, Morlan testified that the Agreement was $9,000 for labor only and Cleary “was covering all materials,” Jan. Tr. Vol. II at 125. Cleary testified that the agreement was “$9,000 for time and material.” Id. at 153. Additionally, Cleary agreed that if the cost of materials had been more than the agreed upon price, Morlan would have owed Cleary money:

Q [H]ypothetically sir, according to you, if the agreed upon amount was $10,000 and the material cost came in at 12, [Morlan] would owe you 2?

A Hypothetically, yes.

2 Ind. Code §§ 24-5-11-1 to -14.

Id. at 42.

[8] The trial court determined that HICA did not apply; the Agreement was for only labor and Cleary breached the Agreement by refusing to pay Morlan; and Morlan was “equally entitled to relief and the foreclosure of [the] Lien under either the theory of unjust enrichment or Quantum Meruit,” Appellant’s App. Vol. II at 24. Consequently, the trial court foreclosed the Lien; ordered the Property sold by sheriff’s sale; and awarded Morlan a “judgment in rem against [the Property] and in personam against . . . Cleary, in the sum of $27,091.45 as of February 28, 2025, to which the net proceeds of the sale of the [Property] shall be applied.” Appellant’s App. Vol. II at 27. The judgment consists of the following:

Principal Balance of the Lien $ 9,000.00

Interest of $1.97 per diem from December $ 1,617.37 1, 2022, to February 28, 2025

Attorneys’ Fees & Costs $ 16,474.08 Total $ 27,091.45

See id. The trial court also provided for post-judgment interest. This appeal ensued.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 5 of 14

Discussion and Decision 1. The Trial Court Did Not Err by Foreclosing the Lien

[9] Cleary contends the trial court erred by foreclosing the Lien because (a) HICA applies and bars Morlan’s claims giving rise to the Lien and (b) the Agreement is unenforceable. We address each contention in turn.

a. Application of HICA

[10] First, Cleary argues that the trial court erred by concluding HICA did not apply to bar Morlan’s claims. The purpose of HICA

is to protect consumers by placing specific minimum requirements on the contents of home improvement contracts . . .

[because] few consumers are knowledgeable about the home improvement industry or of the techniques that must be employed to produce a sound structure. The consumer’s reliance on the contractor coupled with the well-known abuses found in the home improvement industry, served as an impetus for the passage of [HICA], and contractors are therefore held to a strict standard.

Benge v. Miller, 855 N.E.2d 716, 720 (Ind. Ct. App. 2006) (internal citation omitted). To that end, HICA requires a real property improvement supplier performing any real property improvement in an amount greater than $150 to provide the consumer with a written contract therefor. Ind. Code § 24-5-11-1 to -14. A real property improvement supplier who violates HICA—by, among other things, failing to provide a written contract—commits “a deceptive act that is actionable . . . by a consumer under IC 24-5-0.5-4 and is subject to the remedies and penalties under IC 24-5-0.5.” Id. § 24-5-11-14.

Free access — add to your briefcase to read the full text and ask questions with AI

Christopher R. Cleary v. Charles Morlan, (Ind. Ct. App. 2026).

Christopher R. Cleary v. Charles Morlan (Christopher R. Cleary v. Charles Morlan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Conwell v. Gray Loon Outdoor Marketing Group, Inc.
906 N.E.2d 805 (Indiana Supreme Court, 2009)
Benge v. Miller
855 N.E.2d 716 (Indiana Court of Appeals, 2006)
Ballew v. Town of Clarksville
683 N.E.2d 636 (Indiana Court of Appeals, 1997)
Donavan v. Ivy Knoll Apartments Partnership
537 N.E.2d 47 (Indiana Court of Appeals, 1989)
Illiana Surgery & Medical Center, LLC v. STG Funding, Inc.
824 N.E.2d 388 (Indiana Court of Appeals, 2005)
Templeton v. Sam Klain & Son, Inc.
425 N.E.2d 89 (Indiana Supreme Court, 1981)
Tuthill Corp., Fill-Rite Division v. Wolfe
451 N.E.2d 72 (Indiana Court of Appeals, 1983)
Thomas A. Ambrose II v. Dalton Construction, Inc.
44 N.E.3d 707 (Indiana Court of Appeals, 2015)
Thomas A. Ambrose II v. Dalton Construction, Inc.
51 N.E.3d 320 (Indiana Court of Appeals, 2016)
In Re the Marriage of: Amy Steele-Giri v. Brian K. Steele
51 N.E.3d 119 (Indiana Supreme Court, 2016)
Michael Day v. State of Indiana
57 N.E.3d 809 (Indiana Supreme Court, 2016)
State v. D.M.Z.
674 N.E.2d 585 (Indiana Court of Appeals, 1996)