Parke County v. Ropak, Inc.

526 N.E.2d 732, 1988 Ind. App. LEXIS 568, 1988 WL 81085
CourtIndiana Court of Appeals
DecidedAugust 2, 1988
Docket28A01-8711-CV-273
StatusPublished
Cited by26 cases

This text of 526 N.E.2d 732 (Parke County v. Ropak, Inc.) 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
Parke County v. Ropak, Inc., 526 N.E.2d 732, 1988 Ind. App. LEXIS 568, 1988 WL 81085 (Ind. Ct. App. 1988).

Opinion

RATLIFEF, Chief Judge.

STATEMENT OF THE CASE

Defendant County appeals judgment and award of $150,000.00 damages in favor of plaintiff corporation which filed suit against the county under the Indiana Tort Claims Act! (ITCA). 1 We affirm.

FACTS

Ropak, Inc., a meat processing business, was formed on January 13, 1977, by Gary and Anne Cooper. Ropak was unable to make a profit operating as a custom butchering service for the general public, so the Coopers changed the focus of their business to wholesale butchering for a commercial market. Gross sales increased during the years 1979-81, and Ropak cultivated a *735 profitable business relationship with Crest Mark Packing Co., a large meat packing company. |

In the summer of 1980, complaints about run-off and smell from Ropak's operation prompted Dwight Milligan, the Parke County Sanitarian, to contact Cooper about the problem. Milligan informed Cooper that Ropak's waste water disposal system was not functioning properly. During July and August of 1980, Cooper and Milligan met at least twice to discuss the problem, and Milligan advised Cooper that the septic problem could be solved in either one (1) of two (2) ways. Cooper could either hook into the municipal sewer system or construct a holding pond or lagoon. Milligan contacted Cooper in September 1980, and informed him that the City of Rockville had refused permission for a sewer hook-up. Milligan further stated that Cooper would have to build a lagoon or be shut down.

On September 24, 1980, Milligan issued Ropak a permit to begin building the lagoon. Milligan checked on the progress of the lagoon construction nearly every day. On February 18, 1981, a representative of the State Board of Health inspected the lagoon. The inspection revealed that the State had given no prior approval for the project, and no SPC-15 permit had been issued as was required by state law and Stream Pollution Control Board regulations. On February 19, Milligan notified Cooper by letter that the Parke County regulations had been satisfied, inspection by the State Board of Health had been completed, and Milligan had discussed the project with the State Board and found that everything was all right. Ropak began using the lagoon.

On or about May 11, 1981, Joseph Snyder of the State Board of Health notified Cooper that Ropak's waste disposal problem had been referred to the Attorney General's office for enforcement because Cooper had failed to comply with state law. The State Board denied Cooper's request for an SPC-15 permit. Cooper contacted Milligan, and Milligan stated again that he had discussed the issue with Joseph Snyder, that there was going to be no problem with the lagoon, and that Cooper should not worry about it. Snyder subsequently testified that he had never spoken with Milligan about the lagoon. Shortly after receiving the May 11 letter, Ropak was sued by the Stream Pollution Control Board which was seeking to enjoin use of the lagoon. Ropak hired an engineering consulting firm to work on correcting the lagoon problem, but Ropak's business operated at a loss and eventually closed. By letter dated October 20, 1981, Ropak notified the Parke County Board of Commissioners and the Attorney General of its claim against Parke County.

The Coopers filed a complaint for damages against Parke County and the State Board of Health on April 22, 1983. On August 18, 1983, the trial court granted summary judgment in favor of the State Board of Health finding that the plaintiffs' action against the State was barred for failure to comply with the notice requirements of the ITCA. Discovery ensued between the remaining parties, and Ropak, Inc. was substituted for the Coopers as plaintiff. Parke County filed a motion for summary judgment which was denied. A jury trial was held in May, 1987, and at the close of the plaintiff's case, Parke County moved for judgment on the evidence. The court granted the motion as to plaintiff's claim under 42 U.S.C. § 1983 and the negligence claim, but allowed the fraud claim to go to the jury. The jury returned a verdict of $150,000.00 in favor of Ropak, and the court entered judgment upon the verdict. Parke County brings this appeal.

ISSUES

1. Was the plaintiff's claim of fraud based upon misrepresentations of fact or law?

2. Did the plaintiff comply with the notice requirements of the ITCA?

8. Did the trial court properly conclude that Parke County was not immune from liability under the ITCA?

4. Does the evidence support the findings of intentional misrepresentation and reasonable reliance?

*736 5. Was the damage award adequately supported by the evidence?

6. Did the trial court properly exclude defendant's exhibit "I", a letter from plaintiff's counsel which allegedly showed plaintiff's reliance on someone other than the Parke County Sanitarian?

7. Did the trial court properly admit plaintiff's financial statements into evidence?

8. Did the trial court err in refusing defendant's tendered instructions numbered one (1), five (5), six (6), and eight (8), and in modifying defendant's instruction number seven (7)?

9. Did the trial court properly give instructions numbered four (4) and eleven (11)?

DISCUSSION AND DECISION

Issue One

The appellant contends first that any misrepresentation made by Dwight Milli-gan was one of law rather than fact, and therefore not actionable under a fraud theory. The appellant notes correctly that in order to sustain an action for fraud, it must be proven by a preponderance of the evidence that a material misrepresentation of a past or existing fact was made which was untrue and known to be untrue by the person making it, or else recklessly made, and that another party in fact relied on the misrepresentation and was induced thereby to act to his detriment. Plymale v. Upright (1981), Ind.App., 419 N.E.2d 756, 760. Parke County contends that Milligan's only misrepresentation concerned the need for a state permit, and because this was a legal issue rather than a factual issue, the fraud allegation must fail. In addition, Parke County argues that because all persons are charged with knowledge of the rights and remedies prescribed by statute, Middleton Motors, Inc. v. Indiana Dept. of State Revenue (1978), 269 Ind. 282, 285, 380 N.E.2d 79, 81, Ropak should have known about the state permit requirement and not relied on Milligan's statements.

Contrary to appellant's assertions, the record does contain evidence that Milli-gan's misrepresentations included factual misstatements as well as erroneous statements of law regarding the state permit. Cooper testified that he contacted Milligan after receiving a letter from Joseph Snyder of the State Board of Health advising him that Ropak's violations were being referred to the Attorney General for enforcement action. According to Cooper, Milligan stated that he had talked to Snyder, and that "everything was O.K.

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Cite This Page — Counsel Stack

Bluebook (online)
526 N.E.2d 732, 1988 Ind. App. LEXIS 568, 1988 WL 81085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parke-county-v-ropak-inc-indctapp-1988.