Wallem v. CLS Industries, Inc.

725 N.E.2d 880, 5 Wage & Hour Cas.2d (BNA) 1857, 2000 Ind. App. LEXIS 265, 2000 WL 260320
CourtIndiana Court of Appeals
DecidedMarch 9, 2000
Docket88A04-9904-CV-157
StatusPublished
Cited by40 cases

This text of 725 N.E.2d 880 (Wallem v. CLS Industries, Inc.) 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
Wallem v. CLS Industries, Inc., 725 N.E.2d 880, 5 Wage & Hour Cas.2d (BNA) 1857, 2000 Ind. App. LEXIS 265, 2000 WL 260320 (Ind. Ct. App. 2000).

Opinions

OPINION

RILEY, Judge

STATEMENT OF THE CASE

Plaintiff-Appellant Ralph Wallem (Wal-lem) appeals the trial court’s grant of summary judgment in favor of Defendants-Appellees CLS Industries, Inc. (CLS), Carolyn Short (Carolyn), Myron Short (Myron), Indianapolis Airport Authority, and Indianapolis International Airport, (hereinafter collectively referred to as “Defendants”), on Wallem’s four count complaint against Defendants.

We affirm in part and remand with instructions.1

ISSUES

Wallem presents several issues for our review which we consolidate and restate as follows:

1. Whether the trial court erred in granting summary judgment in favor of [882]*882Defendants on Wallem’s breach of compensation contract claim.

2. Whether the trial court erred in granting summary judgment in favor of Defendants on Wallem’s claim for a purported resignation bonus.

3. Whether the trial court erred in granting summary judgment in favor of Defendants on Wallem’s statutory claim under Ind.Code § 36-1-12-1 et seq., for his alleged unpaid portion of a compensation package.

4. Whether the trial court erred in granting summary judgment in favor of Defendants on Wallem’s fraud claim.

FACTS AND PROCEDURAL HISTORY

CLS is a certified Disadvantaged Business Enterprise (DBE) construction contractor. It may also be characterized as a Women-Owned Business Enterprise (WBE), owned and operated by a female, Carolyn Short. Carolyn’s husband, Myron, is an employee of CLS. Generally, CLS performs construction work as a subcontractor of a prime contractor. Under 49 CFR 23 et seq., firms owned, operated, and controlled by minorities and women (minority business enterprises (MBE)), are given the fullest possible participation opportunity to participate in Department of Transportation programs, including airport and highway development.

Sometime in 1991, Wallem wished to perform engineering work for a DBE because he perceived a legitimate business opportunity. On October 2, 1991, Wallem met with Carolyn and Myron to discuss financial terms under which he wished to work for CLS. Wallem made a proposal whereby he would work with CLS, submitting bids on behalf of CLS for construction engineering work, and perform the work. Wallem proposed a compensation package plan whereby he would receive a percentage of the gross construction engineering income. After this meeting Carolyn and Myron stressed their concern that they did not believe that Wallem’s plan would work because Wallem could not legally be a subcontractor of CLS, which is a subcontractor in and of itself.

However, Wallem became an employee of CLS, salaried at approximately $700.00 per week. Wallem worked for CLS in its construction engineering division from October of 1991 until October of 1994. During Wallem’s employment, there was a significant amount of discussion regarding Wallem’s compensation. In April, 1994, Wallem made his first demand for payment of his purported bonus he argued that he was due as a result of his bonus proposal discussed at the first meeting on October 2,1991. However, CLS disagreed with the amount Wallem was due.

As a result, on March 25, 1996, Wallem filed a four count complaint against Defendants, stemming from an alleged breach of this purported bonus agreement with CLS. In Count I, Wallem contended that Carolyn and Myron committed fraud by failing to pay him his purported bonus. Count II presented a claim against CLS for breach of an oral employment contract for Defendants’ refusal to pay pursuant to the alleged agreed upon bonus formula. Count III asserted a statutory claim under Ind. Code § 36-1-12-1 et seq. to recover the unpaid portion of Wallem’s compensation package attributable to the Indianapolis Airport project. Count IV asserted a breach of a September 1, 1994 Settlement Agreement. Additional facts will be supplied where necessary.

Wallem filed his amended complaint on April 15, 1996. On May 8, 1996, Defendants filed their answer and affirmative defenses. On August 7, 1998, Defendants filed their motion for summary judgment and brief in support of summary judgment. On November 9, 1998, Wallem filed his brief in opposition to Defendants’ motion for summary judgment, together with Wallem’s affidavit and other evidentiary materials in support of his motion. On February 8, 1999, a hearing was held of Defendants’ motion for summary judgment. On March 10, 1999, the trial court [883]*883granted Defendants’ motion for summary judgment. On May 10, 1999, the trial court entered its subsequent order granting Defendants’ motion for summary judgment on Counts I through IV of Wallem’s amended complaint and Defendants’ answer and affirmative defenses thereto. Wallem now appeals.

DISCUSSION AND DECISION

Standard of Revietu

This case was resolved below by summary judgment. Our standard of review is well-established. Summary judgment is appropriate only if the pleadings and evidence sanctioned show “there is no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law.” Ind.Trial Rule 56(C). When reviewing a summary judgment ruling, we stand in the shoes of the trial court. Becker v. Four Points Inv. Corp., 708 N.E.2d 29, 30 (Ind.Ct.App.1999). We do not weigh the evidence, but construe the pleadings and designated materials in a light most favorable to the non-movant. Id. The party appealing from the grant of summary judgment has the burden of persuading the court that the grant of summary judgment was erroneous. Greathouse v. Armstrong, 616 N.E.2d 364, 366 (Ind.1993). The trial court’s determination is carefully scrutinized to assure that the party against whom summary judgment was entered is not improperly prevented from having its day in court. Id.

I. Breach of Employment Contract — Count II2

Wallem contends that summary judgment was improper because genuine issues of material fact exist regarding whether CLS breached the oral, at will employment contract entered into with Wallem by failing and refusing to pay Wallem the bonus earned by him under the oral, at will employment agreement. CLS responds that no breach occurred because Wallem’s deposition testimony as well as statements Wallem made in a letter, establish that CLS did not agree to the terms of the purported bonus agreements, and therefore, no meeting of the minds occurred in order to establish a contract. Thus, CLS argues that the purported bonus agreements are unenforceable.

It is fundamental that a contract is formed by the exchange of an offer and acceptance between contracting parties. Rosi v. Business Furniture Corp., 615 N.E.2d 431, 435 (Ind.1993).

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725 N.E.2d 880, 5 Wage & Hour Cas.2d (BNA) 1857, 2000 Ind. App. LEXIS 265, 2000 WL 260320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallem-v-cls-industries-inc-indctapp-2000.