Robert Hrezo v. City of Lawrenceburg

81 N.E.3d 1146, 2017 WL 3598150, 2017 Ind. App. LEXIS 360
CourtIndiana Court of Appeals
DecidedAugust 22, 2017
DocketCourt of Appeals Case 15A01-1612-CT-2957
StatusPublished
Cited by4 cases

This text of 81 N.E.3d 1146 (Robert Hrezo v. City of Lawrenceburg) 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
Robert Hrezo v. City of Lawrenceburg, 81 N.E.3d 1146, 2017 WL 3598150, 2017 Ind. App. LEXIS 360 (Ind. Ct. App. 2017).

Opinion

Bradford, Judge.

Case Summary

Appellants-Plaintiffs Hrezo Engineering, Inc. (“HEI”), and Robert Hrezo (collectively, “Appellants”) appeal from the judgment entered in favor of Appellee-Defendant the City of Lawrenceburg (“the City”). Robert established HEI in 1983 and, from at least 1997 until 2005, HEI *1150 worked on several construction projects for the City and/or its agencies, billing several million dollars over that period. In 2003, Tom Steidel began his tenure as City Manager, charged with assisting the may- or and the City’s government.

Over the next couple of years, issues developed with HEI’s work for the City, and several projects were terminated or suspended. Among the issues were concerns about possible overbilling and over-staffing and substandard work. In March of 2005, City Manager Steidel prepared a memorandum summarizing his concerns about HEI’s work and distributed it to the Mayor, the City Council, the City’s Clerk-Treasurer, and the City’s Board of Works. Later in 2005, the decision was made to stop using HEI for City projects.

In 2006, Appellants sued the City, alleging tortious interference, defamation, interference with prospective business advantage, and violations of Indiana’s RICO statutes. Ultimately, the trial court granted summary judgment in favor of the City on the tortious interference, interference with prospective business advantage, RICO, and defamation per se claims, leaving defamation per quod the only claim remaining for trial. Following trial, the jury returned a verdict in favor of the City, and the trial court denied Appellants’ motion to correct error.

Appellants contend that the trial court erred in (1) granting summary judgment in favor of the City on Appellants’ defamation per se claim, (2) granting summary judgment in favor of the City on Appellants’ tortious interference claim, (3) excluding proffered testimony regarding Appellants’ alleged damages, (4) refusing to deliver Appellants’ proposed jury instruction on publication, and (5) refusing to include several allegedly defamatory statements on a verdict form given to the jury. Because we conclude that Appellants’ claims are without merit, we affirm.

Facts and Procedural History

Robert is the sole owner of HEI, which he established in 1983 and whose operations he oversees. In 1997, Robert was appointed City Engineer for the City, and HEI worked on approximately ninety-five projects for the City from 1997 to 2005, including such projects as the Law-renceburg Police Station, three swimming pools, and work on the Lawrenceburg levy system. Altogether, HEI billed the City over $3.5 million from 1997 to 2005. During this time, Appellants also worked with Mel Davis, the City’s utilities director.

On January 1 or 2, 2003, City Manager Steidel began his tenure. City Manager Steidel’s job was to bring a “professional management process as a proponent to the City [and] assist the Mayor, and the Council[.]” Tr. Vol. II p. 136. City Manager Steidel was supposed to “manage contracts that the City was engaged in and in some cases develop contracts that the City would enter into.” Tr. Vol. II p. 136. In November of 2003, William Cunningham was elected Mayor of the City and took office on January 1, 2004. On the first day of Mayor Cunningham’s tenure, City Manager Steidel decided that he was terminating or putting on hold fifteen of HEI’s thirty-three to thirty-five ongoing projects.

Among the projects HEI worked on for the City was Todd-Creech Park, which was a drainage basin that was to be converted into a recreational area. At the time, Mario Todd was an independent contractor working with HEI. Todd served as an inspector on the Todd-Creech project along with another inspector from HEI. City Manager Steidel told Robert that he only wanted one inspector on the Todd-Creech jobsite, because, in City Manager Steidel’s view, the park was not large enough to require two inspectors and there were “a lot of days I went over there, there was very little going on.” Tr. Vol. II *1151 p. 142. City Manager Steidel also told Hre-zo to begin bringing one representative to Todd-Creech construction meetings when he had been bringing up to five. Director of engineering for the City Michael Clark noted later that there had been problems with HEI’s work on the Todd-Creech project, including “major de-watering issues” caused by a breached aquifer and baseball field that would not drain properly because it had been designed “table top flat[.]” Tr. Vol. II p. 119.

In 2004, Todd was working with HEI performing inspections on City building projects, including those worked on by a company called Fortune Management, which was working with the City’s redevelopment commission to rehabilitate and sell older structures. In early 2004, it came to Todd’s attention that there were questions about one particular project that HEI had approved. HEI had issued an American Institute of Architects (“ALA”) document for a house on 19 Williams Street in the City indicating that new windows and cabinets had been installed. The address, however, was an empty lot. When Todd confronted Robert and his son Mike about the ALA document, Robert told him that City Manager Steidel had told him to sign it. Todd resigned from HEI that day and was later hired by the City to perform in-house inspections.

On March 3, 2005, in anticipation of an executive" session meeting at which Robert was expected to complain about his mounting issues with the City, City Manager Steidel issued a memorandum to Mayor Cunningham, the City Council, the City’s Clerk-Treasurer, and the Board of Works (“the Steidel Memo”), which provides, in relevant part, as follows:

To: Mayor & City Council, Clerk-Treasurer, Bd. Of Works
From: Tom Steidel, City Manager
Date: March 3, 2005
Subject: Hrezo Engineering Billing Issues
I must apologize for being absent for Tuesday night’s X-session but the beaches call. Mr. Hrezo is appearing before Council & The Board of Works to protest what he says is my refusal to pay his firm for services rendered. That is not exactly the case. I have called in to question several of his bills to the city while promptly paying others. I have asked him to consider amending some of his billings to reflect problems on the job that his firm has some responsibility for. So far he has failed to do so.
Mr. Hrezo and I have been having discussions for quite some time about his billing tendencies. First he bills quarterly instead of monthly and only recently has submitted time cards.
Unfortunately, the review of the time cards only reinforces my view that he deploys way more employees to our jobs than is warranted. Todd[-]Creech Park is a classic example where he has insisted on deploying two inspectors day after day after day. The park just isn’t big enough to warrant that level of 'coverage nor was a lot of work being done. Sometimes there was none at all but the inspectors were there.
Mr. Hrezo bills out his inspectors at $55 per hour I believe and pays approximately $25 per hour.

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81 N.E.3d 1146, 2017 WL 3598150, 2017 Ind. App. LEXIS 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-hrezo-v-city-of-lawrenceburg-indctapp-2017.