Estate of Mueller v. Karns

873 N.E.2d 652, 2007 Ind. App. LEXIS 2122, 2007 WL 2695645
CourtIndiana Court of Appeals
DecidedSeptember 17, 2007
Docket29A02-0702-CV-196
StatusPublished
Cited by29 cases

This text of 873 N.E.2d 652 (Estate of Mueller v. Karns) 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
Estate of Mueller v. Karns, 873 N.E.2d 652, 2007 Ind. App. LEXIS 2122, 2007 WL 2695645 (Ind. Ct. App. 2007).

Opinion

OPINION

BAKER, Chief Judge.

Appellant-respondent Estate of Helen Moffitt Mueller (the Estate) appeals the trial court’s judgment in favor of appellee-claimant William Earns on his claim against the Estate seeking payment for services he provided prior to Mueller’s death. Specifically, the Estate argues that the trial court erroneously found that the parties executed a binding contract regarding Karns’s compensation.

Finding that Karns’s offer was never accepted, that even if there was a contract its enforcement is barred by the Statute of Frauds, and that Earns is entitled to quantum meruit compensation but failed to provide evidence supporting the valuation of his services apart from evidence that he has received between $2500 and $10,000 on past projects, we reverse the judgment of the trial court and remand with instructions to hold a hearing on the amount of compensation to which Earns is entitled, with a minimum of $2500 and a maximum of $25,000.

FACTS

In 1998, the Conservatorship of Mueller (Conservatorship) entered into lease negotiations with Martin Marietta Materials (Martin) for the. mining of sand, gravel, and other material on land owned by the Conservatorship. Lease negotiations were handled by Michael Antrim, the attorney for the Conservatorship. Sometime in 1998, Martin sent Antrim a proposed lease, which provided for a 4% royalty to be paid to the Conservatorship. Antrim sought advice from four different sources to help him determine the amount of royalties to which the Conservatorship was entitled.

Among the experts enlisted by Antrim was Earns, a consultant who had twenty-five years of relevant experience, was a *655 family friend to Mueller, and was familiar with the property. Sometime in. or around October 1998, Antrim and Karns reviewed Martin’s proposed lease, and both men made handwritten notations on the draft. With Karns’s advice and consultation, An-trim continued negotiating the terms of the lease with Robert Furlong, Martin’s representative. Ultimately, on May 27, 1999, the royalty negotiations concluded when Antrim and Furlong agreed that the Conservatorship would receive a 6% royalty, which would increase to 6.5% after ten years. Negotiations on other terms of the lease continued. Although Karns had assisted Antrim with multiple portions of the lease, his primary responsibility had been to determine the amount of royalties to which the Conservatorship was entitled.

On November 8, 1999, the co-conservators signed a proposed draft of the lease, which Antrim then sent to Furlong. An-trim’s cover letter indicated that the lease was subject to “final review and approval by consultant, Bill Karns, satisfactory to the Co-Conservators in their sole discretion.” Appellant’s App. p. 291. Subsequently, the parties added a force majeure clause to the lease, which was executed with an effective , date of January 1, 2000.

Antrim and Karns had never agreed upon a fee for Karns’s services. It is unclear precisely when they first discussed the issue, but Antrim documented a telephone call with Karns on December 15, 1998, and his memo stated that Karns wanted a scholarship fund established in his wife’s name

rather than payment to him. [Karns] suggested that on another matter he was paid $10,000 for a consultation. It’s not so much on a time basis as much as for his experience.... He said something very small such as one-quarter of a cent per ton would be a long-term contribution to that scholarship fund.

Id. at 286. And in fact, Karns testified that “early on,”, he told Antrim that he “didn’t expect. anything” in the -way of payment and that “it could be whatever [Antrim] thought was reasonable.... ” Tr. p. 95. At trial, when asked, “would you still be willing to leave it up to Mr. Antrim to come up with a reasonable fee,” Karns replied, “Certainly. Because he’s a reasonable person.” Id. Antrim testified that he continually asked Karns to keep track of the time he spent working for the Conservatorship, but Karns did not and cannot make a rough estimate of the amount of time he spent on the job. Id. at 93-94,149.

After receiving the executed draft of the lease in November 1999, Karns sent a letter to the Conservatorship on December 16, 1999 (the Letter), which states, in relevant part, as follows:

My consulting fee for the Mueller property is one cent ($.01) per ton for all minerals, clay, and topsoil extracted and sold from the Mueller farm. The term of this agreement will be for twenty (20) years starting January 1, 2000.
If minerals are still extracted and sold after 20 years the same rate per ton will prevail as long as minerals are extracted and sold.
The minimum annual fee. will be $7500.00 per year.
[[Image here]]
Upon my death the payments will be divided equally between my children ....

Appellant’s App. p. 259. Given Karns’s estimate that there are 77.1 million tons of material to be excavated from the property, this fee proposal means that Karns would receive approximately $771,000 over the next two or more decades, without regard to how long he fives. Appellant’s *656 Br. p. 10. In mid-January 2000, within three weeks of the receipt of the Letter, Antrim told Karns during a telephone call that the fee proposal was rejected. Neither party took further action until July 31, 2001, when Antrim sent Karns a letter stating, “Enclosed please find a check made payable to you in the amount of $25,000 which represents payment in full for all consultation services rendered to date in regard to the [MartinJ/Mueller Lease negotiations.” Appellant’s App. p. 267. Karns did not cash the check.

Karns took no further action for four years. On April 28, 2005, Mueller died, and on June 7, 2005, Karns filed a claim against her Estate. Karns’s claim states, in its entirety, that the Estate is indebted to him as follows:

Consulting fee for lease negotiations on behalf of Deceased’s conservatorship currently due in the amount of Thirty-Seven Thousand Dollars ($37,000), plus interest. Claimant is also entitled to annual payments based on production of aggregate product with a minimum of Seven Thousand Five Hundred Dollars ($7,500) per year.

Appellant’s App. p. 10. Karns argued that the Letter constitutes a binding contract because Antrim failed to successfully reject Karns’s offer; consequently, the Estate is bound to the Letter’s terms. The trial court agreed. Following an October 17, 2006, bench trial, on January 9, 2006, the trial court found in Karns’s favor. The Estate had requested that the trial court enter findings of fact and conclusions of law, and the relevant findings and conclusions are as follows:

9. Antrim requested and Karns provided his fee for consulting services by Karns’[s] letter dated December 16, 1999....
* * *
12. No written response was ever made to [the Letter]. The Conservator-ship on January 10, 2000[,] petitioned this Court, and obtained this Court’s Order, “authorizing the payment of a reasonable commission to William R.

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

Related

Tonia Land v. IU Credit Union
Indiana Supreme Court, 2023
Steve Ford v. Brandon Slate
Indiana Court of Appeals, 2023
Centennial Park, LLC v. Highland Park Estates, LLC (mem. dec.)
117 N.E.3d 565 (Indiana Court of Appeals, 2018)
Woodruff v. Indiana Family & Social Services Administration
947 N.E.2d 934 (Indiana Court of Appeals, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
873 N.E.2d 652, 2007 Ind. App. LEXIS 2122, 2007 WL 2695645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-mueller-v-karns-indctapp-2007.