McLinden v. Coco

765 N.E.2d 606, 2002 Ind. App. LEXIS 453, 2002 WL 448921
CourtIndiana Court of Appeals
DecidedMarch 20, 2002
Docket45A05-0105-CV-219
StatusPublished
Cited by37 cases

This text of 765 N.E.2d 606 (McLinden v. Coco) 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
McLinden v. Coco, 765 N.E.2d 606, 2002 Ind. App. LEXIS 453, 2002 WL 448921 (Ind. Ct. App. 2002).

Opinion

OPINION

BAKER, Judge.

Appellants-plaintiffs William N. McLin-den (Meclinden), William D. McLinden, and Southwick Homes, Ltd. (collectively "Southwick Homes") appeal the trial court's judgment in favor of appellees-de-fendants Ronald R. Coco, Sr. (Coco), and Mutual Development Company, Inc. (collectively, "Mutual Development"), on their claims for breach of fiduciary duty and intentional interference with a contractual relationship. More specifically, Southwick Homes asserts that Coco, a shareholder of Southwick Homes, breached a fiduciary duty to the company and other shareholders when he contracted to perform construction work for Whiteco Industries, Inc (Whiteco). Southwick Homes also contends that Mutual Development intentionally induced Whiteco to breach a contract which had enlisted Southwick Homes as developer and construction manager of an upscale subdivision in Lake County.

FACTS

Southwick Homes is an Indiana corporation in the business of developing and marketing residential subdivisions,. Coco and MclLinden each own 40% of Southwick Homes' stock. Coco's son, Robert, owns 10% and Mecliinden's son, William, owns the remaining 10%. In addition to South-wick Homes, Coco and MclLinden had a history of business dealings stretching back to the late 1970s, including joint ownership in a third corporation named South-wick Properties.

The present controversy involves the parties' business dealings with Whiteco in the development of an upscale residential subdivision,. The parties first dubbed the subdivision "Schulien Woods" and later changed its name to "Morningside Development." In reference to the Schulien Woods development, Whiteco sent the following typed document ("September 1996 Agreement") on Whiteco letterhead to MeLinden:

September 24, 1996
William N. McLinden, President
Southwick Properties, Inc.
2025 East 175th Street
Lansing, Illinois 60488
RE: Southwick Homes, Ltd. of Indiana
Schulien Woods Residential Development
Crown Point, Indiana
Our File No. 38115
Dear Bill:
First, I would like to thank you and Ron for meeting with me to discuss the development of Mr. White's upscale community within Schulien Woods, Crown Point, Lake County, Indiana. The purpose of this letter is to outline the agreement reached with respect to Southwick Homes, Ltd. of Indiana serving as project manager for the development of the subdivision. We have discussed that your services will be in a manner as if you were developing the property yourself keeping in mind Mr. White's intentions for this subdivision.
We have discussed that Whiteco Industries will proceed with retaining Jim New Associates and John Vogley to prepare plans and specifications for the infrastructure.
Based upon that information, you will designate a civil engineer to be retained by Whiteco to provide services in connection with the development. You will then prepare cost estimates for construction of improvements and a project *610 proforma to present to Mr. White for his review and analysis. We will then work together toward providing marketing materials and strategies for the development.
We have discussed that the community will be a gated community with private streets and lake and other community enhancements. You will prepare a bar graph on studies and projections with respect to the project. Whiteco will proceed to locate a mitigation area for off site wetland mitigation.
Within the next 90 to 120 days, we would anticipate that Vogley will provide spec sheets to be sit [sic] adapted by the civil engineer with the engineering to be supplied for the project. As indicated, you will serve as construction manager and project representative with respect to this project. All contracts will be reviewed and entered into by Whiteco.
To compensate you for your services, you will be paid a general construction fee in the amount of 5% of the cost of the improvements. You will be responsible for all supervision of the general construction. On the marketing of the finished lot, you will receive a commission equal to 5% of the purchase price of the lots, plus an additional 5% if a cooperating broker is involved in the sale. As the developer of the subdivision, you will receive a fee of 5% of the development cost.
The project will proceed on the basis of many of our other joint projects with you being fully responsible for the development, subject to Whiteco's approval. Again, we will work together to assure that this is coordinated with you being responsible for the overall project.
In addition, at some point in time we may explore the possibility of a spec home within the community. It would be anticipated that if a spec home is pursued, you will again serve as project manager for a fee equal to 5% of the hard construction cost, with financing provided by Whiteco. Upon sale of the spec home to a third party, Southwick Homes and Whiteco would share equally the profits from the project. The details of the arrangement would be agreed upon prior to construction.
Bill, we look forward to working with you and Ron on this project. If the terms and conditions outlined in this letter are acceptable to you, please note your approval where below indicated and return this letter to me. We think this is an excellent project and a wonderful opportunity for all of us.
Very truly yours,
WHITECO INDUSTRIES, INC.
[signature of John M. Peterman]
John M. Peterman

Executive Vice President

JMP :kml:WP503:092496
AGREED AND ACCEPTED:
SsOUTHWICK HOMES, LTD. OF INDIANA

By: [signature of William N. McLinden] Its: VP

Dated: 24 Sept 96

Appellant's App. at 18-19. McLinden received and signed the document on the same day.

Over a year later Whiteco sent Coco, as President of Mutual Development, a document ("October 1997 Agreement") on Whi-teco letterhead in reference to the same subdivision. The document named Mutual Development the developer and general contractor for the subdivision's site work. In exchange for Mutual Development's services, it would receive a 5% development fee and a 5% general contractor's fee. John Peterman signed the document, dated October 1, 1997, and directed that Coco also sign the document to note his *611 "approval" of the "agreement." lant's App. at 20-21. agreement. Appel-Coco signed the

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Cite This Page — Counsel Stack

Bluebook (online)
765 N.E.2d 606, 2002 Ind. App. LEXIS 453, 2002 WL 448921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mclinden-v-coco-indctapp-2002.