Jack A. Sheets v. A Progressive Realty, Inc., d/b/a Myers Trust and David Myers (mem. dec.)

Indiana Court of Appeals·Decided November 15, 2017·No. 20A03-1701-PL-161·Published

Opinion

MEMORANDUM DECISION Pursuant to Ind. Appellate Rule 65(D), FILED

this Memorandum Decision shall not be regarded as precedent or cited before any Nov 15 2017, 7:57 am

court except for the purpose of establishing CLERK Indiana Supreme Court

the defense of res judicata, collateral Court of Appeals and Tax Court

estoppel, or the law of the case.

ATTORNEY FOR APPELLANT ATTORNEYS FOR APPELLEES Patrick F. O’Leary Bradford R. Shively Elkhart, Indiana Jonathan R. Slabaugh Sanders Pianowski, LLP

Elkhart, Indiana

IN THE

COURT OF APPEALS OF INDIANA

Jack A. Sheets, November 15, 2017 Appellant-Plaintiff, Court of Appeals Case No.

20A03-1701-PL-161

v. Appeal from the Elkhart Superior Court

A Progressive Realty, Inc., The Honorable Evan S. Roberts, d/b/a Myers Trust and David Judge Myers, Trial Court Cause No. Appellees-Defendants. 20D01-1305-PL-139

Robb, Judge.

Court of Appeals of Indiana | Memorandum Decision 20A03-1701-PL-161 | November 15, 2017 Page 1 of 20

Case Summary and Issue

[1] Jack Sheets appeals the trial court’s entry of summary judgment in favor of

David Myers and A Progressive Realty, Inc. (“Progressive”), in his action alleging tortious interference with an at-will employment contract. Sheets raises only one issue for our review which we restate as: whether the trial court erred in entering summary judgment in favor of Myers and Progressive. Concluding the trial court did not err, we affirm.

Facts and Procedural History [2] In 1976, Interra Credit Union (“Interra”)1 hired Sheets to serve as an assistant

to the chief executive officer. Nine years later, Sheets was selected to replace his former boss and serve as the CEO and president of Interra. Sheets’ tenure lasted until 2013, during which time he helped grow Interra from “six employees and a few thousand members” to “150 employees [and] over 45,000 members . . . .” Appellant’s Brief at 5.

[3] In November 2007, Myers was asked to join Interra’s board of directors. Myers was a longtime veteran of the real estate industry, having founded Progressive2 in 1985. Myers maintains a majority ownership of Progressive and serves as its president. Myers’ son, Andrew Myers, works for Progressive as an independent

1 Interra Credit Union originally opened its doors as Elkhart County Farm Bureau Cooperative Association Credit Union in 1932. Then, for what we can only assume are reasons of brevity, it changed its name to Elkhart County Farm Bureau Credit Union before becoming Interra Credit Union in 2008. 2 A Progressive Reality d/b/a Myers Trust deals in both commercial and residential real estate.

Court of Appeals of Indiana | Memorandum Decision 20A03-1701-PL-161 | November 15, 2017 Page 2 of 20 contractor. In becoming a member of Interra’s board of directors, Myers became subject to Interra’s bylaws, Interra’s code of ethics, and Indiana Code section 28-7-1-31.3(a)(b).3

[4] In January 2008, both Sheets and Myers attended Interra’s planning meeting in Indianapolis. After presentations about potential expansion locations, the board of directors identified a location in Elkhart as a likely candidate. The board of directors instructed Sheets to proceed with planning the expansion and Sheets delegated the responsibility to Sanford Miller, Interra’s Vice President of Branch Administration and a member of the senior management team.4 Myers told Miller that his son, Andrew, could assist Miller in compiling demographic data about the possible expansion locations. Miller followed up with Andrew and acquired the relevant information. Andrew told Miller that he would not charge Interra for the data if they chose Progressive as their real estate broker. Myers also discussed possible expansion locations with Miller and visited Miller at Interra to discuss real estate prospects.

3 Indiana Code section 28-7-1-31.3 provides, in relevant part:

(a) As used in this section, “official” means an individual who is or who was a director, committee member, officer, or employee of a credit union.

(b) An official of a credit union shall discharge the duties of the official’s position in good faith and with the degree of diligence, care, and skill that an ordinarily prudent person would exercise under similar circumstances in a like position . . . .

4 Sheets’ responsibility as CEO and president included supervising four vice-presidents composing Interra’s senior management team.

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[5] On February 14, 2008, Miller, Myers, and Andrew visited a property on Verdant Drive in Elkhart.5 Myers testified that he brought Miller to the Verdant Drive location on Andrew’s request. As Miller prepared to present to the board of directors his proposal for the Verdant Drive location, Andrew emailed the site’s listing agent, Robert Letherman, to determine Progressive’s commission for delivering a buyer. In his email, Andrew stated that Myers was behind the inquiry:

Rob,

My clients are bringing the property on Verdant before the their [sic] board tomorrow night. Hopefully you can wait on us.

Two things my father instructed me I have to get for our office file: (and I am sorry he is a stickler)

1. Property profile sheet from your office containing the price and if there are any additional terms 2. Letter indicating the buyer brokerage policy for this particular property

Thanks so much and I am sorry my father told me I had to get those two items, and well for now he is the boss[.]

Appellant’s Corrected Appendix, Volume 3 at 124. Letherman responded he did not have a profile sheet for the property but advised that the price was $525,000. Andrew reminded Letherman that he had previously quoted a price of $495,000, and Letherman agreed, saying “I got 3 people looking at this lot. You are getting the best price. Good thing you got in early.” Id., Vol. 4 at 182.

5 Miller testified at a deposition that Andrew brought “a number of properties to consider” and that he did not remember how many he, Myers, and Andrew visited. Appellant’s Corrected Appendix, Volume 4 at 165.

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Letherman also informed Andrew that the buyer brokerage policy was ten percent.6 Andrew later emailed Miller and informed him that he did not believe any attempts to negotiate the price with the seller would be worthwhile.

[6] On March 20, 2008, Miller presented his recommendation to Interra’s board of directors. The board of directors voted in favor of Miller’s proposal and offered $495,000 for the property on Verdant Drive. Myers abstained from the vote.7 Interra’s offer was made conditional upon obtaining the Indiana Department of Financial Institutions’ approval to construct a service office on the property. Interra’s application for such approval, signed on July 23, 2008, provided:

I, [Jack A. Sheets], President of Interra Credit Union . . . do hereby attest to the best of my knowledge, that Mr. David Myers, Board member, owns [Progressive], and that his son, Mr. Andy Myers, is employed by [Progressive], and that Andy Myers represented Interra Credit Union in the purchase of the land for the new branch. Andy Myers and [Progressive] will receive a normal 10% commission from the seller from the purchase of this land. Mr. David Myers abstained from the vote approving the purchase of this land. I am not aware of any other credit union official, or member of a credit union officials [sic] family, who will profit directly in any way from the transaction that is contemplated by this application.

6 Letherman provided, “Broker Policy-10% commission paid to broker at closing.” Appellant’s Corrected App., Vol. 4 at 180. 7 Myers also maintains that he “disclosed that he had an interest in the Verdant Drive transaction to Interra’s board of directors.” Brief of Appellees at 13.

Court of Appeals of Indiana | Memorandum Decision 20A03-1701-PL-161 | November 15, 2017 Page 5 of 20

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