Dedelow v. Pucalik

801 N.E.2d 178, 2003 Ind. App. LEXIS 2361, 2003 WL 23009926
CourtIndiana Court of Appeals
DecidedDecember 24, 2003
Docket45A03-0304-CV-148
StatusPublished
Cited by25 cases

This text of 801 N.E.2d 178 (Dedelow v. Pucalik) 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
Dedelow v. Pucalik, 801 N.E.2d 178, 2003 Ind. App. LEXIS 2361, 2003 WL 23009926 (Ind. Ct. App. 2003).

Opinion

OPINION

SULLIVAN, Judge.

Duane W. Dedelow, as the Mayor of the City of Hammond ("the Mayor"), and the Hammond Development Corporation ("HDC") appeal from the trial court's declaratory judgment in favor of Kathleen Pucalik, as President of the Common Council of the City of Hammond ("the Council"). The appellants present one issue for our review: whether the trial court erred in concluding that a contract entered into by the City of Hammond, the Hammond Redevelopment Commission ("HRC"), the Hammond Port Authority '("HPA"), the Hammond Redevelopment Authority ("HRA"), and Horseshoe Hammond, Inc., successor in interest to Empress Casino Hammond Corporation ("the Casino"), 1 involved the transfer, encumbrance, or disposal of property rights belonging to the City of Hammond.

*180 We reverse and remand.

The parties stipulated to the relevant facts at the trial court level. These facts reveal that in May of 1994, the Council adopted and the Mayor signed Ordinance No. 7685, which established a "riverboat development" within the City and provided for the spending of revenue earned from riverboat gambling for various purposes in certain percentages. Appendix at 272. This ordinance provided, "That a development agreement between the Hammond riverboat licensee and the City of Hammond shall be approved and authorized by ordinance by the Hammond City Council, within thirty (80) days of the State Gaming issuance of such license." Id. at 278. In 1996, the Mayor negotiated an agreement titled "Hammond Riverboat Gaming Project Development Agreement" ("the Agreement") with the Casino. The Council's attorney was present at several of the negotiation sessions and proposed changes to the Agreement, some of which were incorporated into the Agreement.

On June 17, 1996, the Council passed Ordinance No. 7887, which provided that the Agreement should be presented to and approved by the Council prior to its execution by the Mayor. The Council also simultaneously passed Ordinance No. 7888, which approved the Agreement. The Mayor vetoed both of these ordinances on June 27, 1996. 2 The Council sustained the vetoes on July 8, 1996. The Mayor executed the Agreement on June 21, 1996. Subsequently, the Mayor negotiated and executed four amendments to the Agreement without approval of the Council. At issue in the present case is the fourth amendment to the Agreement ("the Amendment").

The parties to the Amendment are the City of Hammond, the HRC, the HPA, the HRA, and the Casino. In the Amendment, the HRC grants the Casino an exclusive and irrevocable option to lease a portion of a piece of land known as the Marina Parcel. The Marina Parcel is owned by the HRA and was leased to the HRC on April 15, 1999. Also on April 15, 1999, the HRC and the HPA entered into an operating agreement whereby the HPA operates the Marina Parcel. The Amendment also stated that the HRC and the HPA would amend the intergovernmental lease which they had previously entered into to incorporate the terms of a proposed parking plan contained in the Amendment. In consideration for the granting of the option to lease the Marina Parcel, the Casino agreed to pay a total of $14,000,000. Of this sum, $8,700,000 was to be paid to the HDC, 3 $4,500,000 was to be paid to the HRC, and $800,000 was to be paid to the HPA.

On July 8, 2002, the Council filed a "Verified Complaint for Preliminary Injunction and Declaratory Judgment and Petition for Determination of the Nature of City Executive and Legislative Power" in the Lake Superior Court 4 The Coun *181 cil's complaint alleged that the Council and the Mayor had several meetings to resolve their differences, but that the Mayor was "adamant in insisting that his statutory authority to sign agreements gives him the power to make amendments to the riverboat agreement which require the riverboat licensee to pay millions of dollars to various groups without any approval or appropriation of funds by the Common Council." App. at 60. The complaint further alleged that the Mayor had made an agreement with the Casino without any involvement of the Council and had "direct[ed] the expenditure of funds paid by the [Casino] without any appropriation of funds by the Common Council," which the Council alleged violated Indiana law. Id. at 62. The complaint requested that the trial court "hold that the Mayor does not have exclusive authority to negotiate and execute contracts with the [Casino] which provide for the spending of millions of dollars which otherwise may have been available to the City for appropriation by the Common Council without any participation by the Common Council. ..." Id. at 63. The complaint also stated:

"Unless this Court enters a preliminary injunction, the Mayor may continue to make contracts with the [Casino] divert, ing millions of dollars which are desperately needed for public projects such as improving the infrastructure of the City and providing for adequate police and fire protection for private purposes such as the millions of dollars he has diverted to a private corporation to fix up old buildings in downtown Hammond. Such continued usurpation of power would cause irreparable damage to the citizens of the City of Hammond and would frustrate the exercise by the Common Council of its lawful fiscal authority to oversee the finances of the City of Hammond and to appropriate all funds." Id. at 63-64.

The Mayor answered this complaint on October 18, 2002. The answer raised five defenses: (1) waiver and estoppel; (2) failure to state a claim fipon which relief may be granted; (8) the doctrine of unclean hands; (4) laches; and (5) that the Council's action of sustaining the Mayor's vetoes acknowledged the Mayor's authority to enter into the Agreement.

On October 9, 2002, the trial court entered a "Stipulation and Order" which arose from a status conference held on September 20, 2002. This Order stated in part:

"The issue to be decided by the en bane panel of this Court in this lawsuit is the Council's claim that the Mayor has no authority to reach an agreement with regard to or to direct the disposition of funds paid by [the Casino] pursuant to the Agreement or Amendments, without participation or approval of the Council, and the Defendants' defenses to that claim. The parties agree that the resolution of this issue shall not affect the performance of the existing Agreement or the Amendments in any way except as to a potential claim by the Council for repayment from the recipients of any funds transferred without authority, to be filed later, if this Court determines that the Mayor did not have authority to reach such an agreement or to direct the transfer of any funds." Appellant's App. at 237.

The order also withdrew the Council's request for a preliminary injunction. Pursuant to the order, the parties submitted *182 Stipulations of Fact to the trial court on October 17, 2002.

The parties filed briefs, and on November 22, 2002, the Lake Superior Court held an en bane hearing on the matter. Thereafter, on March 19, 2008, the trial court entered an order in favor of the Council. According to this Order:

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Bluebook (online)
801 N.E.2d 178, 2003 Ind. App. LEXIS 2361, 2003 WL 23009926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dedelow-v-pucalik-indctapp-2003.