City of Lawrence Utilities Service Board, City of Lawrence, Indiana, and Dean Jessup, Individually and in His Official Capacity v. Carlton E. Curry

55 N.E.3d 895, 26 Wage & Hour Cas.2d (BNA) 1054, 2016 Ind. App. LEXIS 187, 2016 WL 3185474
CourtIndiana Court of Appeals
DecidedJune 8, 2016
Docket49A02-1506-CT-699
StatusPublished
Cited by2 cases

This text of 55 N.E.3d 895 (City of Lawrence Utilities Service Board, City of Lawrence, Indiana, and Dean Jessup, Individually and in His Official Capacity v. Carlton E. Curry) 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
City of Lawrence Utilities Service Board, City of Lawrence, Indiana, and Dean Jessup, Individually and in His Official Capacity v. Carlton E. Curry, 55 N.E.3d 895, 26 Wage & Hour Cas.2d (BNA) 1054, 2016 Ind. App. LEXIS 187, 2016 WL 3185474 (Ind. Ct. App. 2016).

Opinions

[897]*897BAKER, Judge.

[1] An Indiana statute clearly provides that a utility service board may terminate a superintendent for cause after providing an opportunity for a hearing. The question with which we are confronted is whether this is the exclusive manner in which a utility superintendent may be terminated. We find that it is not.

[2] The City of Lawrence (the City), the City of Lawrence Utilities Services Board (the USB), and Mayor Deán Jessup (collectively, the Government) appeal the trial court’s order, which granted summary judgment in favor of Carlton Curry on Curry’s wrongful discharge claim and denied the Government’s summary judgment motion on Curry’s claim for intentional interference with employment relationship. Curry cross-appeals, arguing that the trial court erroneously granted summary judgment in favor of the Government on his claim under the Wage Payment Statute.

[3] We find as follows: (1) the mayor had authority to terminate Curry’s employment; (2) as such, Curry has no right to prevail on an intentional interference with employment relationship claim; and (3) Curry is not entitled to recover under the Wage Payment Statute. We reverse the judgment of the trial court with respect to the wrongful discharge and intentional interference with employment relationship claims and remand with instructions to enter summary judgment in the Government’s favor on those two counts. We affirm the trial court’s order with respect to the Wage Payment Statute count.

Facts1

[4] In May 2006, Lawrence voters passed a referendum authorizing the creation of the USB, which placed utility management under municipal control. The City Council then passed an ordinance creating the USB with an effective date of January 1, 2008. The ordinance provides that the USB consists of five members, three of whom are appointed by the mayor and two of whom are- appointed by the council. The ordinance does not- discuss the .utility head position, At a March 12, 2008, USB meeting, the title of the utility head position was changed from “director of utilities” to “directqr/superintendent.”2 Appellants’ App. p. 176,190-92.

[5] The USB requires mayoral approval to issue bonds, incur debts, or raise rates.- Therefore, it is important for the mayor to be on board with USB’s major policy initiatives. -Utilities are financed through water and sewage usage fees and utility employees are paid through the City, though the USB has a budget that is separate frbm the City’s generál fund. ■

[6] In 2009, then-Mayor of Lawrence Paul Ricketts approached Curry about becoming USB superintendent, and Curry agreed to take the position. At the August 12, 2009, USB meeting, Mayor Rick-etts recommended Curry for the - position, and — with no discussion — board members voted unanimously in favor of appointing Curry. During Curry’s tenure, hé worked closely with Mayor Ricketts regarding the direction of the USB and all major policy ihitiatives. One USB initiative that both Curry and Mayor Ricketts' advocated for strongly was -the construction of a waste-water treatment plant for Lawrence.

.[7] In November 20Í1, Mayor Ricketts was defeated in the . general election by Dean Jessup. Mayor-elect Jessup’s transition team sent correspondence to all de[898]*898partment heads,' including Curry, inviting them to submit a resume and letter of interest if they wished to remain in their positions. Curry submitted a letter of interest and resume, met with the transition team’s utility committee, and gave a presentation. Curiy also communicated directly with Mayor-elect Jessup.

[8] Mayor-elect Jessup learned about the proposed wastewater treatment plant, which would cost approximately $150 to $200 million. Mayor-elect Jessup had concerns about the cost of the project and was not convinced that it was a good plan. Curry advocated strongly ,for the project, and Mayor-elect Jessup believed that if Curry was retained as USB superintendent,. there would be frequent conflict if the mayor .decided to forego the wastewa-ter treatment plant project. Mayor-elect Jessup wanted a USB superintendent who would implement his goals and objectives and give balanced advice rather than advance his own point of view.

[9] Mflien Mayor Jessup took office on January 1, 2012, he asked for the resignations of all mayoral appointees on every city board. The three mayoral appointments on the USB complied and were replaced with Mayor Jessup’s appointees. Curry continued to advocate strongly for the wastewater treatment plant. Mayor Jessup felt that he was being given a sales pitch, and his concerns about his working relationship with Curry increased. Mayor Jessup decided to replace Curry with John Solenberg. Curry was notified by letter and in person on January 19, 2012, that his employment would end on January 20. Mayor Jessup submitted a recommendation for Solenberg as the new USB superintendent, and the USB approved Solen-berg unanimously.

[10] On December 21, 2012, Curry filed a complaint against the Government, asserting both federal and state law claims. The case was removed to federal court; on March 3, 2014, the district court granted summary judgment in favor of the Government on all of Curry’s federal claims and remanded the case to state court for consideration of Curry’s remaining claims based in state law. The remaining claims are as follows: Count I, Wrongful Discharge; Count III, Defamation; Count IV, Intentional Interference with Employment Relationship; and Count V, Wage Payment Statute Claim.

[11] On October 22, 2014, Curry filed a motion for partial summary judgment on Count I, and on November 25, 2014, the Government, filed a motion for summary judgment on all counts. Following briefing and a hearing, on April 6, 2015, the trial court granted summary judgment in favor of Curry on Count I (wrongful discharge), granted summary judgment in favor of the Government on Counts III (defamation) and V (Wage Payment Statute), and denied summary judgment on Count IV (intentional interference). The Government now brings this interlocutory appeal of the trial court’s order with respect to the wrongful discharge and intentional interference claims, and Curry cross-appeals with respect to the Wage Payment Statute claim.

Discussion and Decision

I. Standard of Review

[12] Our standard of review on •summary judgment is well established:

We review summary judgment de novo, applying the same standard as the trial court: “Drawing all reasonable inferences in favor of ... the non-moving parties, summary judgment is appropriate ‘if the designated evidentiary matter shows that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.’ ” Williams v. Tharp, 914 N.E.2d [899]*899756, 761 (Ind.2009) (quoting T.R. 56(C)). “A fact is ‘material’ if its resolution would affect the outcome of the case, and an issue is ‘genuine’ if a trier of fact is required to resolve the parties’ differing accounts of the truth, or if the undisputed material facts support conflicting reasonable inferences.” Id. (internal citations omitted).

Hughley v. State, 15 N.E.3d 1000, 1003 (Ind.2014). We apply a de novo standard of review to questions of statutory interpretation. E.g., State v. Int’l Bus. Machs. Corp.,

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55 N.E.3d 895, 26 Wage & Hour Cas.2d (BNA) 1054, 2016 Ind. App. LEXIS 187, 2016 WL 3185474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-lawrence-utilities-service-board-city-of-lawrence-indiana-and-indctapp-2016.