Shepard Wrex Management, LLC v. The Estate of Betty M. Scott

CourtIndiana Court of Appeals
DecidedNovember 7, 2025
Docket24A-PL-03069
StatusPublished

This text of Shepard Wrex Management, LLC v. The Estate of Betty M. Scott (Shepard Wrex Management, LLC v. The Estate of Betty M. Scott) 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
Shepard Wrex Management, LLC v. The Estate of Betty M. Scott, (Ind. Ct. App. 2025).

Opinion

FILED Nov 07 2025, 8:38 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

IN THE

Court of Appeals of Indiana Shepard Wrex Management, LLC, Appellant-Defendant/Counterclaimant,

v.

The Estate of Betty M. Scott and Fashion Cleaners, Inc., Appellees-Plaintiff/Counterclaim Defendants.

November 7, 2025

Court of Appeals Case No. 24A-PL-3069

Appeal from the Madison Circuit Court

The Honorable Angela G. Warner Sims, Judge

Trial Court Cause No. 48C01-2002-PL-40

Court of Appeals of Indiana | Opinion 24A-PL-3069 | November 7, 2025 Page 1 of 17 Opinion by Senior Judge Crone Judges Weissmann and Kenworthy concur.

Crone, Senior Judge.

Statement of the Case [1] This case involves the environmental contamination of property that once

contained a dry cleaning business owned by William and Betty Scott (the 1 Scotts). Litigation began when the Scotts filed suit for injunctive relief to

obtain access to the property, which is now owned by Shepard Wrex

Management LLC, to continue their remediation efforts. Shepard Wrex

counterclaimed asserting an Environmental Legal Action, trespass, and

criminal trespass. The trial court denied the Scotts’ request for an injunction as

well as all of Shepard Wrex’s counterclaims, and Shepard Wrex now appeals

that determination. Concluding that the trial court’s judgment is not contrary

to law, we affirm its decision.

Facts and Procedural History [2] In 1968, William and Betty Scott purchased commercial property (“Property”)

in Anderson. From 1968 until 2006, they operated a dry cleaning business

1 Both William and Betty have since passed away, and Betty’s estate has been substituted as the named party. However, for ease of reference, we will refer to William, Betty, Betty’s estate, and Fashion Cleaners collectively as “the Scotts.”

Court of Appeals of Indiana | Opinion 24A-PL-3069 | November 7, 2025 Page 2 of 17 known as Fashion Cleaners, Inc. on the Property. In the normal course of their

business, the Scotts used a dry cleaning chemical that contained

tetrachloroethylene, a chlorinated solvent. At some point during the operation

of the Scotts’ business, some of this chemical was released on the Property.

[3] In February 2008, a limited subsurface investigation revealed the presence of

chemicals, including tetrachloroethylene, in the soil and groundwater at the

Property. These findings were reported to the Indiana Department of

Environmental Management (“IDEM”) in March 2008. IDEM responded by

ordering a site investigation to determine the nature and extent of the soil and

groundwater contamination.

[4] The Scotts retained HydroTech Environmental Consulting and Engineering to

investigate and remediate the contamination. In implementing its remediation

plan, HydroTech cooperated with and obtained approval from IDEM. As part

of the remediation efforts, an air sparge/soil vapor extraction system

(“AS/SVE”) was installed on the Property in 2017. However, in November

2019, a storm caused the AS/SVE system to shut down.

[5] In the meantime, Shepard Wrex Management bought the Property at a tax sale

and took ownership in early 2019. Shepard Wrex Management LLC was

created for the sole purpose of owning a single asset, namely the Property, and

Stephen Henshaw is its manager. Thereafter, although the Scotts remained

obligated to finalize the environmental cleanup of the Property, Shepard Wrex

refused to allow HydroTech or anyone representing the Scotts access to the

Court of Appeals of Indiana | Opinion 24A-PL-3069 | November 7, 2025 Page 3 of 17 Property to continue remediation efforts. As a result, the Scotts filed suit for an

injunction in February 2020 seeking access to the Property to restart and

operate the AS/SVE system and complete the environmental remediation.

[6] In response, Shepard Wrex counterclaimed asserting an Environmental Legal

Action (“ELA”), and claims of trespass and criminal trespass, and requesting a

judgment declaring the AS/SVE system to be abandoned by the Scotts. The

parties proceeded to a bench trial in July/August 2024, after which the court

issued its findings of fact, conclusions thereon, and judgment denying the

Scotts’ claim for injunctive relief and Shepard Wrex’s counterclaims of an ELA,

trespass, and criminal trespass. The court granted Shepard Wrex’s

counterclaim of declaratory judgment. This appeal ensued.

Issues [7] Shepard Wrex presents three issues for our review, which we consolidate and

restate as:

I. Whether the trial court erred by denying Shepard Wrex’s ELA counterclaim.

II. Whether the trial court erred by denying Shepard Wrex’s counterclaims of trespass.

Discussion and Decision [8] The trial court entered findings and conclusions pursuant to Trial Rule 52, and

our standard of review in that situation is well settled:

Court of Appeals of Indiana | Opinion 24A-PL-3069 | November 7, 2025 Page 4 of 17 First, we determine whether the evidence supports the findings and second, whether the findings support the judgment. In deference to the trial court’s proximity to the issues, we disturb the judgment only where there is no evidence supporting the findings or the findings fail to support the judgment. We do not reweigh the evidence but consider only the evidence favorable to the trial court’s judgment. Challengers must establish that the trial court’s findings are clearly erroneous. Findings are clearly erroneous when a review of the record leaves us firmly convinced a mistake has been made. However, while we defer substantially to findings of fact, we do not do so to conclusions of law. Additionally, a judgment is clearly erroneous under Indiana Trial Rule 52 if it relies on an incorrect legal standard. We evaluate questions of law de novo and owe no deference to a trial court’s determination of such questions.

RCM Phoenix Partners, LLC v. 2007 E. Meadows, LP, 118 N.E.3d 756, 759-60

(Ind. Ct. App. 2019) (quoting Estate of Kappel v. Kappel, 979 N.E.2d 642, 651-52

(Ind. Ct. App. 2012)).

[9] And because Shepard Wrex did not prevail at trial on its counterclaims, it

appeals from a negative judgment. “A negative judgment is a judgment entered

against the party who bore the burden of proof at trial.” Universal Auto, LLC v.

Murray, 149 N.E.3d 639, 642 (Ind. Ct. App. 2020).

On appeal from a negative judgment, this Court will reverse the trial court only if the judgment is contrary to law. A judgment is contrary to law if the evidence leads to but one conclusion and the trial court reached an opposite conclusion. In determining whether the trial court’s judgment is contrary to law, we will consider the evidence in the light most favorable to the prevailing party, together with all reasonable inferences therefrom. We neither reweigh the evidence nor judge the credibility of

Court of Appeals of Indiana | Opinion 24A-PL-3069 | November 7, 2025 Page 5 of 17 witnesses. Further, “[w]hen appealing from a negative judgment, a party has a heavy burden to establish to the satisfaction of the reviewing court that there was no basis in fact for the judgment rendered.”

Burnell v. State, 56 N.E.3d 1146, 1150 (Ind. 2016) (alteration in original)

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