Trail v. Boys & Girls Club of Northwest Indiana

811 N.E.2d 830, 2004 Ind. App. LEXIS 1277, 2004 WL 1516831
CourtIndiana Court of Appeals
DecidedJuly 8, 2004
Docket45A03-0309-CV-389
StatusPublished
Cited by2 cases

This text of 811 N.E.2d 830 (Trail v. Boys & Girls Club of Northwest Indiana) 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.

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Trail v. Boys & Girls Club of Northwest Indiana, 811 N.E.2d 830, 2004 Ind. App. LEXIS 1277, 2004 WL 1516831 (Ind. Ct. App. 2004).

Opinion

OPINION

SHARPNACK, Judge.

Eddie Trail and Katrinka Trail (collectively, "the Trails") appeal the trial court's grant of a motion to dismiss filed by the Boys and Girls Club of Northwest Indiana ("Club"), Donald Weiss, Bonnie Coleman, John Diederich, Paul Bailey, Edward Williams, Fran Taylor, James Greiner, Raymond Morris, and Bonnie Fine (collectively, "Defendants"). The Trails raise four issues, which we restate as:

I. Whether the trial court erred when it dismissed Eddie's claim for breach of contract;
II. Whether the trial court erred when it dismissed Eddie's claim for tor-tious interference with a contractual relationship;
Whether the trial court erred when it dismissed Eddie's claim for defamation; and IIL
*834 IV. Whether the trial court erred when it dismissed Katrinka's claim for loss of consortium.

We affirm in part, reverse in part, and remand. 1

The relevant facts alleged in the Trails' complaint follow. The Club is an Indiana not-for-profit corporation that is part of and chartered by the national Boys and Girls Clubs of America. Eddie was the Executive Director of the Club for six years. Weiss, Coleman, Diederich, Bailey, Williams, Taylor, Greiner, Morris, and Fine were members of the Club's Executive Committee. (Appellants' Appendix at 16)

In June 2002, Eddie was allegedly removed as Executive Director of the Club, and, on September 183, 2002, the Trails filed a complaint against the Club, the members of the Executive Committee in their official capacities, and Weiss, Coleman, Bailey, and Taylor in their personal capacities ("Individual Defendants"). The complaint alleged, in part, that:

11. [Eddie's] employment contract expired December 31, 2001. On January 7, 2002, [Weiss] called [Eddie] to tell him the Executive Committee determined and voted to give him a raise and a bonus. On February 4, 2001(sgic), [Diederich] told [Eddie] that the Executive Committee went around the table and everybody was asked to give their opinion. A vote then was taken, and it was unanimously decided to retain [Eddie] as the Executive Director "to lead the organization into the future."
12. Defendants Weiss, Coleman, Bailey, and Taylor were unhappy for personal reasons with the retention of [Eddie] as Executive Director. They were upset with [Eddie] because he refused to defer to them those initiatives and actions that properly were [Eddie's] duties as Executive Director.
18. To justify reversing the decision of the Executive Committee to retain [Eddie], Weiss, Coleman, Bailey, and Taylor contrived a study of the Club to "assess the organization's structure and functions ... to determine if improvements could be made," but in reality to discredit [Eddie] and justify his termination.
14. Towards this end, these Defendants structured the actual reporting so that only the four of them and select individuals, chosen solely by them, would be interviewed for the study to be performed by a consultant ("consultant's report").
15. Although any such report would be given to the Executive Director as a matter of course, [Eddie] has been denied access to it.
16. It appears, though, that in addition to these four Defendants, the individuals interviewed for the report were Club personnel who were unhappy with [Eddie] because he had withheld performance raises because of poor performance.
17. In accordance with standard protocol and procedures with the [Club], an adverse consultant's report *835 would be shared with an executive director, any issues or problems would be openly discussed, and a cure period would be given to the executive director. None of this occurred here.
18. On June 26, 2002, Bailey falsely told [Eddie] that the Board of Directors voted unanimously to terminate him based on the contents of the consultant's report.
19. The [Cllub has approximately 56 member Board of Directors. Under the [Club's] articles, [tlhe Board has sole authority to terminate [Eddie]. The Board of Directors was not even presented with the issue of whether or not to terminate [Eddie].
20. Bailey subsequently falsely announced to the Board of Directors of the Club and the media that [Eddie] had resigned.
21. [The Trails] do not know if the four individual Defendants used the slanted consultant's report to get the other members of the Executive Committee to reverse their previous unanimous decision to retain him or whether these Defendants tried to get [Eddie] to resign without any decision by the Board of Directors or Executive Committee.
22. The Defendants have refused to release the consultant's report to anyone, including the members of the Board of Directors. The Defendants have released to a few individuals the alleged contents of parts of the report highly negative about [Eddie]. One of these individuals, with very close ties to the Club, told [Eddie] he should have had those who supported him interviewed by the consultant. [Eddie] told him that he was not allowed to select any of the interviewees.
28. With most people the Defendants have refused to say anything about the report. They know that with the national organization of Boys and Girls Clubs this would be taken "erroneously to mean that [Eddie] had been found to have committed grave personal improprieties with the children they serve or financial misdeeds such as embezzlement. Members of the Board of Directors and other officials of the Club already have drawn these false conclusions from the Defendants' silence.
24. Before the Defendants' actions, [Eddie] had an exemplary reputation and status within the Boys and Girls Clubs, locally and nationally. Since then he has been treated in almost all instances as a pariah.
25. [Eddie] has since applied for various openings. He has received form rejections or simply no response, which would have been inconceivable beforehand. [Eddie] has sought to find out what was said about him by the Defendants. The Clubs to which he applied have refused to tell him. In one instance [Eddie] was offered an interim position, which immediately afterwards was withdrawn without explanation.
26. Eddie Trail has suffered emotional pain and suffering and mental distress, loss of earnings, and damage to his reputation from the Defendant's actions. Katrinka Trail has suffered a loss of consortium.
27. The actions of the individual Defendants were intentional and malicious. The imposition of punitive *836 damages against them is appropriate.

Appellants' Appendix at 17-20.

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811 N.E.2d 830, 2004 Ind. App. LEXIS 1277, 2004 WL 1516831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trail-v-boys-girls-club-of-northwest-indiana-indctapp-2004.