Thomas Bunger as Personal Representative of the Estate of Kenneth K. Kinney, and Cheryl Underwood v. Sheree Demming

40 N.E.3d 887, 2015 Ind. App. LEXIS 529, 2015 WL 4468751
CourtIndiana Court of Appeals
DecidedJuly 22, 2015
Docket53A01-1409-PL-395
StatusPublished
Cited by7 cases

This text of 40 N.E.3d 887 (Thomas Bunger as Personal Representative of the Estate of Kenneth K. Kinney, and Cheryl Underwood v. Sheree Demming) 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
Thomas Bunger as Personal Representative of the Estate of Kenneth K. Kinney, and Cheryl Underwood v. Sheree Demming, 40 N.E.3d 887, 2015 Ind. App. LEXIS 529, 2015 WL 4468751 (Ind. Ct. App. 2015).

Opinion

MAY, Judge.

[1] Cheryl Underwood, a real estate broker, and the estate of her business partner Kenneth Kinney appeal a judgment for Shereé Demming. We affirm in part, reverse in part, and remand.

Facts and Procedural History

[2] We summarized the facts. 1 of this case in Demming v. Underwood, where we reversed summary judgment for Underwood and Kinney and remanded for further proceedings:

[3] Demming is a real estate investor . in the business of acquiring properties in the Bloomington, Indiana area for remodeling, renovation, leasing, and sale. Demming, who has never held a realtor’s license, engaged Underwood’s . professional services as a realtor to buy and sell properties on multiple occasions between July 2002 and April 2007. During this time, Demming routinely discussed her real estate investment strategy with Underwood, including her plans to acquire multiple properties within a “target zone” near the Indiana University campus.
[4] In 2002, Demming became particularly interested in purchasing two properties located within her target zone at 424 and 426 East Sixth. Street (“the Properties”). The Properties were owned by Marion and Frances Morris (“the Morrises”), who lived out of state. Realtor Julie Costley (“Costley”) managed the Properties, which were not listed for sale. After discussing Demming’s interest in acquiring the Properties, Demming and Underwood agreed that *892 the best strategy would be for Underwood to approach Costley with an offer on behalf of Demming, because as a realtor, Costley would be obligated to relay an offer presented by another realtor to the Morrises.
[5] Underwood first presented an offer to Costley on Demming’s behalf in the fall of 2002. After the offer was declined, Demming and Underwood “stra-tegized” together on how Demming could acquire the Properties, and Underwood offered to contact Costley every few months to inquire about the Properties' availability. Over the next few years, up until early 2007, Underwood contacted Costley on Demming’s behalf regarding the Properties “every four of [sic] five months.” Additionally, in May, August, and October 2006, Underwood contacted Costley to inquire into the availability of the Properties after Demming specifically instructed her to do so. While Underwood was not compensated for these services, “it was discussed and understood that ... Underwood would be paid a real estate commission, at closing, in the customary amount of seven percent (7%) of the sales price.” However, unbeknownst to Demming, Underwood became interested in purchasing the Properties for herself after she acquired a neighboring property in May 2006.
[6] In February 2007, Demming again instructed Underwood to call Costley and inquire into the availability of the Properties for purchase. Underwood responded, “Sheree, she’s just not going to sell.” Demming nevertheless insisted that Underwood contact Costley, and said that if Underwood refused, she would contact Costley herself. Underwood then agreed to call Costley, and when she did so, she asked Costley to contact Mrs. Morris, whose husband had recently passed away, to find out if she would be interested in selling. Costley responded that she would contact Mrs. ' Morris, but she expressed doubt as to whether Mrs. Morris would be willing to sell. The next day, Underwood told ■ Demming that the Properties were not for sale. Demming instructed Underwood to “stay on it” because she believed that Mrs. Morris would be willing to sell in the near future.
[7] A few days later, Costley contacted Mrs. Morris, who instructed her to re- . quest that anyone interested in purchasing the Properties tender a written offer. When-Costley informed Underwood that Mrs. Morris was willing to entertain an offer, Underwood did not relay this information to Demming. ■ Instead, on March 9, 2007, Underwood and Kinney, acting as partners, tendered their own written offer to purchase the Properties. A counteroffer was tendered and accepted, pursuant to which Underwood and Kinney agreed to purchase the Properties for $650,000. Underwood and Kinney closed on the transaction on March 80, 2007.
On April 14, 2007, Demming contacted Underwood after noticing one of Underwood’s “For Rent” signs in front of the Properties. Underwood and Demming met the next day, and Underwood informed Demming that she and Kinney had purchased the Properties.
On April 19, 2007, Demming filed suit against Underwood asserting claims for breach of fiduciary duty and constructive fraud. Demming also requested the imposition of a constructive trust compelling Underwood and Kinney to convey, title of the Properties to her.

948 N.E.2d 878, 882-83 (Ind.Ct.App.2011) (citations omitted), reh’g denied, tram, denied.

*893 [8] The trial court in Demming granted summary judgment for Underwood and Kinney on all claims. It determined, among other things, that there was no agency relationship between Demming and Underwood as a matter of law. Demming appealed, and we reversed on various grounds, including that there were genuine issues of material fact as to whether there was an agency relationship. Id. at 888.

[9] On remand a trial was conducted and judgment was entered for Demming. The trial court imposed a constructive trust in Demming’s favor on the property based on the “existence and breach of an agency relationship between [Demming] and [Underwood], Underwood’s breach of common law, statutory and fiduciary duties that Underwood owed to Demming and Underwood’s fraudulent and deceptive conduct as well as the vicarious partnership liability imposed upon [Kinney].” (Appendix of Appellant Cheryl Underwood (hereinafter “Underwood App.”) at 42). , It awarded Demming damages, prejudgment interest, and attorney fees.

Discussion and Decision

[10] After the trial on remand, the trial court entered findings of fact and conclusion's thereon. When a trial court does so pursuant to Indiana Trial Rule 52, we apply the following two-tier standard of review: whether the evidence supports the findings of fact, and whether the findings support the conclusions.- Crider v. Crider, 15 N.E.3d 1042, 1052 (Ind.Ct.App.2014), tram, denied. We will set aside findings of fact only if they are clearly erroneous, which occurs if the record contains no facts to support a finding either directly or by inference. Id. We defer to the trial court’s ability to assess the credibility of witnesses and will not reweigh the evidence, and we must consider only the evidence most favorable to the judgment along with all reasonable inferences- drawn in favor of the judgment. Id. It is not enough that the evidence might. support some other conclusion; it must positively require the conclusion contended for by appellant before there is a basis for reversal. Id. A judgment also is clearly erroneous if it relies on an incorrect legal standard, and we do not. defer to a trial court’s legal conclusions. Id.

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40 N.E.3d 887, 2015 Ind. App. LEXIS 529, 2015 WL 4468751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-bunger-as-personal-representative-of-the-estate-of-kenneth-k-indctapp-2015.