Wenzel v. Hopper & Galliher, P.C.

830 N.E.2d 996, 2005 Ind. App. LEXIS 1273, 2005 WL 1669394
CourtIndiana Court of Appeals
DecidedJuly 19, 2005
Docket49A02-0402-CV-134
StatusPublished
Cited by20 cases

This text of 830 N.E.2d 996 (Wenzel v. Hopper & Galliher, P.C.) 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
Wenzel v. Hopper & Galliher, P.C., 830 N.E.2d 996, 2005 Ind. App. LEXIS 1273, 2005 WL 1669394 (Ind. Ct. App. 2005).

Opinions

OPINION

MAY, Judge.

Mark R. Wenzel appeals the trial court's judgment in favor of Hopper & Galliher, P.C. ("H & G"), formerly known as Hopper, Wenzel, & Galliher, P.C. Wenzel raises three issues, which we restate as:

1. Whether the evidence supports the trial court's award of $20,000 in damages to H & G;

2. Whether the trial court erred when it declined to award post-judgment interest on the fair value of Wenzel's shares of stock in H & G; and

3. Whether the trial court erred when it ordered H & G to pay Wenzel the value of his shares only on delivery of his shares or of "an instrument effecting and unequivocally evidencing his surrender of those shares." (Appellant's App. at 180.)

We affirm.

FACTS AND PROCEDURAL HISTORY

Wenzel, George Hopper and Mark Galli-her are attorneys who formerly practiced together in the professional corporation [998]*998that is now H & G. These parties have been before this court on two prior occasions. See Wenzel v. Hopper & Galliher, P.C., 737 N.E.2d 1239 (Ind.Ct.App., 2000) ("Wenzel I") and Wenzel v. Hopper & Galliher, P.C., 779 N.E.2d 30 (Ind.Ct.App.2002) ("Wenzel II"). In Wenzel II, we stated the facts as follows:

In the fall of 1990, Wenzel began talking to George Hopper ("Hopper") about working as an attorney at Hopper's unincorporated law firm. After a series of meetings, it was agreed that Wenzel would join the firm at the beginning of January, 1991 as a salaried employee and that Hopper would incorporate and capitalize the firm as a professional corporation. At the end of 1991, an agreement was entered into whereby Wenzel and Mark Galliher ("Galliher") would each purchase one third of H & 's stock from Hopper. Under the compensation plan, the net revenues were to be distributed in relation to each shareholder's contribution to the firm.
In the spring of 1994, Wenzel began stating to Galliher that Hopper was not being forthright in his provision of information to Wenzel about H & G's income. Wenzel further stated that he did not like working with Hopper. In September of 1994, Hopper and Galliher completed a trial in which a large settlement was won for H & 's client. Wenzel expressed his belief that he was entitled to one third of the contingency fee from the aforementioned case and that he feared he would be deprived of the share. Discussions began pertaining to a specific formula for determining respective compensation, but Wenzel expressed disapproval of a subsequent proposed formula.
On March 27, 1995, Hopper, Galliher, and Wenzel met for H & (@s annual shareholder meeting. The meeting ended with a discussion of the shareholders' inability to resolve the issue of compensation raised by Wenzel, and Wenzel agreed that he would seek employment elsewhere. After the meeting, Wenzel continued to work for H & G's clients and to receive his full salary while he looked for another position. Wenzel ended his employment with H & G on June 30, 1995.
The facts, as contained in the record but not specifically found by the trial court, are as follows. After Wenzel's departure, Hopper and Galliher attempted to negotiate with Wenzel to determine the amount due Wenzel as a withdrawing shareholder of H & (G. As part of these negotiations, Wenzel requested to be paid approximately $400,000.00 for his stock and a share of H & G's contingency fees. In response, H & G offered to purchase Wenzel's stock at the amount he paid for it (approximately $27,000.00) and to pay Wenzel a portion of H & C's contingency fees. In response to H & G's offer, Wenzel demanded that H & G file a petition to value Wenzel's shares pursuant to the Indiana Professional Corporations Act (the "Act").
H & G then commenced an action requesting the trial court to determine the fair value of Wenzel's shares. In response, Wenzel asserted claims against H & G, and against Hopper and Galliher individually, for breach of fiduciary duty and "freeze out." H & G subsequently asserted a breach of fiduciary duty claim against Wenzel seeking damages caused by Wenzel's alleged improper pre-depar-ture solicitation of H & G clients.
After a bench trial, the trial court determined the value of Wenzel's stock, denied Wenzel's breach of fiduciary duty claim, and granted H & G's breach of fiduciary duty claim.

[999]*999779 N.E.2d at 35-86 (internal citations omitted). The trial court awarded H & G $20,000.00 in damages for Wenzel's breach of fiduciary duty. We affirmed in part and reversed in part, stating:

To the extent that the trial court's findings of fact and conclusions of law pertain to Wenzel's breach of fiduciary duty by secretly soliciting NCB, the trial court's findings are proper. However, the trial court's findings of fact and conclusions of law are clearly erroneous to the extent they apply to the alleged secret solicitation of other clients. We remand with instructions that the trial court adjust its damage award to an amount consistent with this opinion.

Id. at 49.

On remand, the parties argued the damages issue. The trial court entered its Order and Judgment on Remand, again awarding $20,000.00 in damages for Wen-zel's breach of fiduciary duty. In its order, the trial court stated in relevant part:

(1) The Court's Findings are revised to provide that the "fair value" of Wenzel's stock is and shall be in the amount of $63,092.31, which amount shall be payable by the Firm to Wenzel, only upon Wenzel's delivery to the Firm of his shares of stock in the Firm, or an instrument effecting and unequivocally evidencing Wenzel's surrender of his shares in the Firm to the Firm;
x x x * # *
(3) Following this Court's further review and consideration of Wenzel's trial testimony regarding his admitted pre-departure solicitation of the Firm's major client, National City Bank, during April, May and June, 1995 while Wenzel was continually employed and compensated by the Firm, the Court finds that judgment should be and is hereby entered in favor of the Firm, and against Wenzel, upon the Firm's counterclaim against Wenzel for breach of fiduciary duty, in the amount of $20,000.00; (4) Wenzel's request for an award of post-judgment interest should be and is hereby denied[.]

(Appellant's App. at 179-81.)

DISCUSSION AND DECISION

The trial court entered modified findings of fact and conclusions of law following the hearing on remand. As we explained in Wenzgel II:

When a party has requested specific findings of fact and conclusions of law pursuant to Ind. Trial Rule 52(A), we may affirm the judgment on any legal theory supported by the findings. Mitchell v. Mitchell, 695 N.E.2d 920, 923 (Ind.1998). In reviewing the judgment, we first must determine whether the evidence supports the findings and second, whether the findings support the judgment. Ahuja v. Lynco Ltd. Medical Research, 675 N.E.2d 704, 707 (Ind.Ct.App.1996), trans. denied.

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Wenzel v. Hopper & Galliher, P.C.
830 N.E.2d 996 (Indiana Court of Appeals, 2005)

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830 N.E.2d 996, 2005 Ind. App. LEXIS 1273, 2005 WL 1669394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wenzel-v-hopper-galliher-pc-indctapp-2005.