Kelly Sickafoose v. Mary Beery, Auditor of Adams County

Indiana Court of Appeals·Decided December 12, 2018·No. 18A-MI-1549·Published

Opinion

FILED

Dec 12 2018, 8:34 am

CLERK

Indiana Supreme Court

Court of Appeals

and Tax Court

ATTORNEY FOR APPELLANT ATTORNEYS FOR APPELLEE William A. Ramsey Adam L. Bartrom Barrett McNagny LLP Mark D. Scudder Fort Wayne, Indiana Barnes & Thornburg LLP Fort Wayne, Indiana

IN THE

COURT OF APPEALS OF INDIANA

Kelly Sickafoose, December 12, 2018 Appellant, Court of Appeals Case No.

18A-MI-1549

v. Appeal from the Adams Superior Court

Mary Beery, Auditor of Adams The Honorable Kenton Kiracofe, County, Special Judge Appellee. Trial Court Cause No.

01D01-1706-MI-29

Bradford, Judge.

Court of Appeals of Indiana | Opinion 18A-MI-1549 | December 12, 2018 Page 1 of 19

Case Summary

[1] This appeal stems from a controversy arising out of the Adams County Drug

Court. Presiding Judge Patrick Miller initiated a lawsuit against Adams County Auditor Mary Beery (“the Auditor”) and, on June 7, 2017, ordered her to make certain tax and retirement benefit payments in connection to the employment of Drug Court Coordinator Kelly Sickafoose. The Auditor made the payments at issue in July of 2017. Despite the Auditor having made full payment, in August of 2017, Sickafoose moved for a rule to show cause, alleging that the Auditor was in contempt of the June 7, 2017 order. The trial court denied Sickafoose’s motion and awarded attorney’s fees in favor of the Auditor. Sickafoose challenges these orders on appeal.

[2] Upon review, we conclude that any possible contempt by the Auditor was cured by payment of the funds at issue. Further, because Sickafoose filed numerous motions after payment was made despite knowing that she was not a party to the lawsuit, we agree with the trial court’s determination that Sickafoose’s filings were frivolous. We therefore conclude that the trial court did not err in denying Sickafoose’s motion for rule to show cause, granting the Auditor’s motion to dismiss, and awarding $16,463.50 in attorney’s fees to the Auditor. In addition, because we find this appeal to be frivolous, we conclude that an award of appellate attorney’s fees is warranted, and we remand to the trial court for a determination of the amount of appellate fees that should be awarded to the Auditor.

Facts and Procedural History [3] Judge Miller is the judge of the Adams County Superior Court and presiding

judge of the drug court. In 2016, Judge Miller hired Sickafoose as an independent contractor to be the Drug Court Coordinator.

[4] Sickafoose was paid for work completed in 2016 as an independent contractor and was provided with an IRS form indicating such status. In early 2017, Judge Miller resolved that Sickafoose should no longer be an independent contractor but rather an employee of the court. The Adams County Board of Commissioners approved Sickafoose’s employment in March of 2017. After Sickafoose was hired as an employee of the court, a dispute arose between Judge Miller and Sickafoose and the Adams County Board of Commissioners, County Council, Auditor’s Office, and Auditor (collectively, “the County”) regarding retroactive application of employee status. Specifically, Judge Miller and Sickafoose wanted the County to treat Sickafoose’s hire date as the day she began providing services as an independent contractor and to make retroactive tax and retirement benefits payments on her behalf. After the County rejected this request, Judge Miller initiated the underlying lawsuit against the Auditor over which he initially presided.

[5] On June 7, 2017, Judge Miller ordered the Auditor to pay certain tax and retirement benefits within forty-eight hours. The order covered payment of

FICA and FICE taxes1 (collectively, “the federal taxes”) and PERF2 benefits for the period of October 1, 2016, through March 3, 2017. The claims were “in the nature of payroll” and were to be made for the benefit of the “Adams Superior Court/Adams County Drug Court Coordinator.” Appellant’s App. Vol. II p. 27. Judge Miller held that failure to comply with the order “will subject the Auditor … to indirect criminal contempt proceeding[s] including the possibility of fines, incarceration or both.” Appellant’s App. Vol. II p. 28.

[6] The next day, the Auditor filed a motion to vacate Judge Miller’s order, arguing that as the plaintiff to the action, Judge Miller did not have jurisdiction to issue the order. On June 9, 2017, the Auditor filed a petition for an emergency writ of mandamus and prohibition with the Indiana Supreme Court. That same day, the Supreme Court issued an emergency writ and ordered Judge Miller to stay the proceedings pending its review of the Auditor’s petition. On June 29, 2017, the Supreme Court denied the Auditor’s request for a permanent writ and dissolved the previously-issued emergency writ. Judge Miller then issued an order lifting the stay.3 At some point, Sickafoose filed an appearance as an “Interested Party.” Appellant’s App. Vol. II p. 74.

1 FICA, which stands for the Federal Insurance Contributions Act, requires payment of social security and Medicare taxes. While it is unclear from the record what FICE stands for, counsel for the Auditor “speculate[d] that it refers to Medicare.” Appellant’s App. Vol. II p. 101. 2 PERF stands for the Public Employees Retirement Fund.

3 Judge Miller also denied the Auditor’s pending motion to vacate his June 7, 2017 order.

Court of Appeals of Indiana | Opinion 18A-MI-1549 | December 12, 2018 Page 4 of 19

[7] The federal taxes were paid on July 5, 2017. The PERF benefits were paid on July 20, 2017 after Sickafoose’s PERF profile was amended to reflect that she was a court employee.4

[8] On July 6, 2017, the Auditor moved for a change of judge. Sickafoose, acting as an interested party, submitted a list of acceptable judges to receive the cause of action. Judge Miller granted the Auditor’s motion and the Honorable Thomas M. Hakes of the Huntington Circuit Court was ultimately appointed as the special judge.

[9] In August, Sickafoose, again acting as an interested party, moved for a rule to show cause, alleging that the Auditor “appears to be in Indirect Criminal Contempt of Court, as well as in Civil Contempt of Court.” Appellant’s App. Vol. II p. 80. She further claimed that “As of the date of this motion, [the Auditor] has failed and refused to comply with the Honorable Judge Miller’s Order issued June 7, 2017.” Appellant’s App. Vol. II p. 81. Claiming that Judge Miller’s June 7, 2017 order was made for her benefit, Sickafoose requested that Judge Hakes find the Auditor in indirect criminal and civil contempt of the court and order her to “immediately and fully comply with the Order issued by the Honorable Patrick R. Miller on June 7, 2017.” Appellant’s App. Vol. II p. 82.

4 Sickafoose was also required to pay a portion of the back-PERF benefits, which she paid to the Adams County Treasurer on July 7, 2017.

Court of Appeals of Indiana | Opinion 18A-MI-1549 | December 12, 2018 Page 5 of 19

[10] On September 7, 2017, the Auditor responded to Sickafoose’s motion for a rule to show cause, asserting that the motion was moot as the claims at issue had been paid. The Auditor alternatively argued that Sickafoose did not have standing to file the motion as she was not a party to the lawsuit and had not sought to intervene. The Auditor requested that Judge Hakes deny Sickafoose’s motion, award attorney’s fees to the Auditor, and dismiss the case with prejudice.

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