Galloway v. Hadley

881 N.E.2d 667, 2008 Ind. App. LEXIS 306, 2008 WL 466697
CourtIndiana Court of Appeals
DecidedFebruary 22, 2008
Docket32A04-0707-CV-400
StatusPublished
Cited by8 cases

This text of 881 N.E.2d 667 (Galloway v. Hadley) 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
Galloway v. Hadley, 881 N.E.2d 667, 2008 Ind. App. LEXIS 306, 2008 WL 466697 (Ind. Ct. App. 2008).

Opinion

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

Hendricks County Sheriff Dave Galloway brings this interlocutory appeal from the trial court’s Order Granting David Hadley’s Complaint for Preliminary Injunction (“Injunctive Order”). 1 Sheriff Galloway raises four issues for our review, which we restate as follows:

1. Whether Indiana Code Section 27-10-3-18 (the “Equal Access Law” 2 ) creates a private cause of action.
2. Whether the trial court abused its discretion in entering the preliminary injunction.

We affirm.

FACTS AND PROCEDURAL HISTORY

Since at least the early 1990s, the Hendricks County Sheriff Department has maintained and used a list of preferred bail agents (“Preferred Agent List”). When an arrestee completes the booking process, a jail officer asks the arrestee if he or she has or would like to have a bail agent. If the arrestee does not have an agent but would like one, the jail officer informs the arrestee that he or she can either refer to an alphabetical listing of local agents or the officer can contact an agent on the arrestee’s behalf. And if the arrestee requests the officer to contact an agent on the arrestee’s behalf, the officer contacts an agent from the Preferred Agent List.

Each week, one agent on the Preferred Agent List is “on call.” Appellant’s App. at 96. When an officer is requested to contact an agent for an arrestee, the officer begins with the agent that is on call for that week. If that agent does not answer the officer’s call, the officer leaves a message. And if the agent does not call back within ten to fifteen minutes of the mes *671 sage, the officer “will go to the next one” on the list. Id. at 97.

Hadley is a licensed bondsman and does business in Hendricks County under the name of D & D Bonding. Throughout the terms of at least the prior two sheriffs, either Hadley’s name or his business’ name appeared on the Preferred Agent List. However, shortly after Sheriff Galloway began his term as Hendricks County Sheriff on January 2, 2007, Hadley was removed from the Preferred Agent List. Rather, the Preferred Agent List includes only the following licensed bail agents: Ken Krohne, Gene Ploughe, John Hancock, James Tackitt, and Kyle Smith. That list was prepared by Krohne and Tackitt, and each of those five bail agents made financial contributions to Sheriff Galloway’s political committee during his campaign in 2006. No other bail agents made financial contributions to Sheriff Galloway’s campaign.

Hadley called the Hendricks County Jail the afternoon that Sheriff Galloway took office and discovered that he was no longer on the Preferred Agent List. Hadley then called Sheriff Galloway, and Sheriff Galloway “indicated that he wasn’t aware of any changes on the list.” Id. at 142. On January 3, Hadley filed his complaint seeking a preliminary and permanent injunction against Sheriff Galloway’s use of the Preferred Agent List.

On March 6, Hadley deposed Sheriff Galloway. During his deposition, Sheriff Galloway testified that Hadley was not included on the Preferred Agent List “because he didn’t contact” Sheriff Galloway beforehand. Id. at 133. Sheriff Galloway also testified that “[he didn’t] know anything positive or negative about [Hadley].” Id. On March 8, Sheriff Galloway filed his Motion to Dismiss for Lack of Subject Matter Jurisdiction (“Motion to Dismiss”). On March 20, the trial court held a hearing on Hadley’s complaint and Sheriff Galloway’s Motion to Dismiss.

At the hearing, Sheriff Galloway testified that he had learned from four of his jail officers that “the reason Mr. Hadley’s not on the list is because ... he won’t write bonds for blacks or Hispanics.” Id. Hadley also testified at the hearing, stating that his insurance carrier imposes “a standing rule” against issuing bail to “illegal Hispanics” or Hispanics that “have green cards” because “[fit’s to[o] great a risk.” Id. at 152. And Hadley acknowledged that he “probably” asked whether an arrestee seeking bail was African-American before he would agree to act as that arrestee’s bondsman. Id. at 161. Finally, both Hadley and Eddie Lee, the owner of the insurance company that underwrote Hadley’s bonds, testified that Hadley’s business had experienced a “[d]ramatic reduction in volume” since Hadley was removed from the Preferred Agent List, although neither person could provide exact numbers. Id. at 70, 146.

Also testifying at the hearing was Carol Mihalik, the Chief Deputy Commissioner and Counsel for the Consumer Protection Unit of the Indiana Department of Insurance (“IDOI”). Commissioner Mihalik’s responsibilities include the licensing of bail agents and management of IDOI’s Bail Bond Division. Commissioner Mihalik testified that she would have authority to “take ... action against a county sheriff’ in only two circumstances: when “the Sheriff was functioning as a licensefd] bail agent without a license” and when a person not licensed as a bail agent violated certain provisions of the Indiana Administrative Code. Id. at 43. She also stated that an investigation into Sheriff Galloway’s conduct was ongoing. Commissioner Mi-halik further testified that she believed the purpose of the Equal Access Law, on which Hadley’s complaint against Sheriff *672 Galloway is based, is to protect licensed bail agents from unfair competition by providing those agents with an opportunity for equal access to Indiana jails.

On June 26, the court issued the Injunc-tive Order and its Order on the Motion to Dismiss. After having found that it had subject-matter jurisdiction over Hadley’s claims, the court found that Hadley’s “injury and loss runs deeper than simply the economic loss[, as he] has been denied the opportunity to have equal access to jails.” Id. at 15. The court then enjoined Sheriff Galloway from using the Preferred Agent List. 3 This interlocutory appeal ensued.

DISCUSSION AND DECISION

Issue One: Equal Access Law

Sheriff Galloway first asserts that the Equal Access Law does not create a private cause of action, and therefore the trial court lacks subject-matter jurisdiction to hear Hadley’s complaint. Indiana’s Equal Access Law provides as follows:

A person who holds a valid bail agent’s license issued by the insurance commissioner and registered as required in section 17 of this chapter may have equal access to the jails of this state for the purpose of making bond, subject to this article and rules adopted under this article.

Ind.Code § 27-10-3-18 (2004). Whether Indiana Code Section 27-10-3-18 creates a private cause of action is an issue of first impression.

Whether a statute creates a private cause of action is a question of law that we review de novo. See Whinery v. Roberson,

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881 N.E.2d 667, 2008 Ind. App. LEXIS 306, 2008 WL 466697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galloway-v-hadley-indctapp-2008.