R.L. Turner Corp. v. Town of Brownsburg

949 N.E.2d 372, 2011 Ind. App. LEXIS 815, 2011 WL 1733536
CourtIndiana Court of Appeals
DecidedMay 6, 2011
Docket32A01-1008-PL-373
StatusPublished
Cited by3 cases

This text of 949 N.E.2d 372 (R.L. Turner Corp. v. Town of Brownsburg) 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
R.L. Turner Corp. v. Town of Brownsburg, 949 N.E.2d 372, 2011 Ind. App. LEXIS 815, 2011 WL 1733536 (Ind. Ct. App. 2011).

Opinion

OPINION

CRONE, Judge.

Case Summary 1

R.L. Turner Corporation (“Turner”) sued the Town of Brownsburg (“the Town”) for tortious interference with a contractual relationship, quantum meruit, and breach of a duty to a third-party beneficiary after the Town allegedly interfered with a settlement agreement regarding a lawsuit between Turner and the Browns-burg Municipal Building Corporation (“BMBC”) concerning a construction project. The Town moved for partial summary judgment and/or dismissal of the tortious interference count and dismissal of all other counts. The Town also requested an award of attorney’s fees, as *376 serting that Turner’s lawsuit was frivolous, unreasonable, and groundless.

The trial court entered its judgment on May 18, 2010. In that judgment, the trial court granted partial summary judgment, or in the alternative, dismissal in favor of the Town on Turner’s claim for tortious interference and dismissed all remaining counts of Turner’s complaint. The trial court’s judgment provided for “costs to be assessed” against Turner but did not specifically mention attorney’s fees. Fifty-nine days after that judgment was entered, the Town filed a petition requesting that Turner be assessed $27,410.67 in attorney’s fees and expenses. The trial court granted the Town’s petition.

Turner appeals the award of fees, asserting that the award was untimely and thus outside the scope of the trial court’s authority. Turner also argues that the record does not support a finding that its lawsuit was frivolous, unreasonable or groundless. Determining that the trial court had authority to award fees and that the record supports the trial court’s conclusion that Turner’s claims were frivolous, unreasonable, or groundless, we affirm the trial court’s order.

Facts and Procedural History

In March of 2005, Turner, a general contractor, entered into a multi-million dollar contract with BMBC to construct a new town hall, police station, and maintenance garage in Brownsburg. Thereafter, Turner and BMBC began having contract disputes regarding the project. On August 21, 2007, Turner filed a complaint against BMBC seeking compensation for the work Turner had performed on the project. Thereafter, on April 29, 2009, a representative of Turner met with Ken Krohne, the president of BMBC, to discuss the possibility of settling the litigation between Turner and BMBC. Krohne, who was leaving for Florida the following day, signed a written settlement proposal prepared by Turner that was dated April, 30, 2009. BMBC’s legal counsel, Sydney Steele, was not notified of and did not have an opportunity to review the proposal. On May 5, 2009, the BMBC board of directors met and “conditionally” approved the settlement proposal subject to some date changes and subject to approval by the Brownsburg Town Council as provided in the proposal. Appellant’s App. at 145. Indeed, the proposal specifically provided for the signature of both the president of BMBC and the president of the Browns-burg Town Council. Thereafter, Steele, who was also legal counsel for the Town, was notified of and reviewed the settlement proposal. He recommended that it not be approved by BMBC. Steele also recommended that the Town Council not approve the proposal. Steele informed BMBC that because a quorum was not physically present during the May 5 meeting, it could still rescind its conditional approval of the proposed settlement. On May 14, 2009, the BMBC board of directors rescinded its prior approval of the settlement proposal. Similarly, the Town Council did not approve the proposal.

On October 28, 2009, Turner’s attorney sent a confidential letter to Steele indicating that Turner may file suit against the Town for tortious interference with a contract. However, the stated central purpose of the letter was to inform Steele of what Turner believed to be inherent conflicts in Steele’s representation of both the Town and BMBC. Thereafter, on December 11, 2009, Turner sued the Town for tortious interference with a business relationship, claiming that a valid and enforceable settlement agreement was made between Turner and BMBC and that the Town intentionally interfered with the business relationship between the parties.

*377 On January 4, 2010, the Town filed a motion to dismiss Turner’s complaint. In response, Turner filed an amended complaint against the Town alleging four counts, including tortious interference with a contractual relationship, quantum meru-it, and two counts of breach of duty to a third-party beneficiary. The Town responded with a motion to dismiss all four counts of the amended complaint as well as a motion for partial summary judgment on the tortious interference claim. The Town included a request for attorney’s fees pursuant to Indiana Code Sections 34-52-1-1 and 34-13-3-21 in both its motion to dismiss and its motion for partial summary judgment, alleging that Turner’s claims were frivolous, unreasonable, and groundless.

The trial court held a hearing on the Town’s motions for dismissal and partial summary judgment on May 3, 2010. The parties submitted proposed orders to the court, and on May 18, 2010, the trial court granted the Town’s motions and entered extensive findings of fact, conclusions thereon, and judgment, which adopted the Town’s proposed order verbatim. The judgment provided in relevant part:

IT IS THEREFORE ORDERED ADJUDGED AND DECREED as follows:
1. Defendant’s motion for partial summary judgment on Count I of the Amended Complaint is GRANTED. Judgment therefore should be and hereby is entered for the defendant, Town of Brownsburg, and against plaintiff, R.L. Turner Corporation, on Count I. Alternatively defendant’s motion to dismiss Count I of the Amended Complaint is GRANTED.
2. Defendant’s motion to dismiss all remaining Counts of plaintiffs Amended Complaint is GRANTED, and all remaining Counts' and claims are hereby DISMISSED.
3.Costs to be assessed against the plaintiff, R.L. Turner Corporation.

Appellee’s App. at 21. The judgment did not specifically mention attorney’s fees.

Turner did not appeal the trial court’s judgment. Thereafter, on July 16, 2010, the Town filed a “Petition for Attorney’s Fees as Costs allowed by Law,” requesting $27,410.67 in attorney’s fees and expenses pursuant to Indiana Code Sections 34-52-1 — 1(b) and 34-13-3-21. Turner responded, arguing both a lack of foundation for the award of attorney’s fees and that the Town’s petition was essentially an untimely motion to correct error. The trial court granted the Town’s petition for attorney’s fees on August 3, 2010. This appeal ensued. Additional facts will be provided as necessary.

Discussion and Decision

I. Attorney’s Fees Generally

This is an appeal from the trial court’s grant of a petition for attorney’s fees. We begin by noting that Indiana follows the “American Rule,” which provides that litigants must generally pay their own attorney’s fees absent an agreement between the parties, statutory authority, or other rule to the contrary. Smyth v. Hester, 901 N.E.2d 25, 32 (Ind.Ct.App.2009), trans. denied.

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Related

R.L. Turner Corp. v. Town of Brownsburg
963 N.E.2d 453 (Indiana Supreme Court, 2012)

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Bluebook (online)
949 N.E.2d 372, 2011 Ind. App. LEXIS 815, 2011 WL 1733536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rl-turner-corp-v-town-of-brownsburg-indctapp-2011.