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Coonrod v. Marsh

Citations: 830 N.E.2d 91; 2005 Ind. App. LEXIS 1166; 2005 WL 1532104Docket: No. 06A01-0409-CV-381

Court: Indiana Court of Appeals; June 30, 2005; Indiana; State Appellate Court

Narrative Opinion Summary

In a legal dispute involving the authority of a County Auditor to contract for the collection of county assets, the court affirmed the dismissal of a breach of contract claim filed by Coonrod against the Auditor. The case centered on a 2000 agreement between Coonrod's firm and a former County Auditor for collecting County Adjusted Gross Income Tax (CAGIT) funds, from which Coonrod sought a percentage as a fee. The court found that the Auditor lacked authority to enter into such a contract without the county fiscal body's approval, leading to the dismissal of Coonrod's claims for breach of contract, promissory estoppel, and unjust enrichment. The court also addressed a cross-appeal by the Auditor concerning attorneys' fees related to a venue dispute, upholding the lower court's denial of fees. The appellate court reviewed the case de novo, concluding that the Auditor acted as an agent without beneficiary status and that Coonrod's reliance on the Auditor's authority was unreasonable. The judgment emphasized the necessity of county approval for contracts involving the recovery of assets and the irrelevance of motives in venue disputes, affirming that no bad faith or sham pleading warranted attorneys' fees.

Legal Issues Addressed

Authority of County Auditor to Enter Contracts

Application: The court determined that the County Auditor lacked the authority to enter into a contract for identifying and collecting county assets without the approval of the governing body.

Reasoning: The court ruled that a County Auditor lacks the authority to contract with an individual for identifying and collecting county assets and funds without permission from the governing body.

Denial of Attorneys' Fees for Venue Dispute

Application: The court upheld the denial of attorneys' fees related to a venue dispute, finding no evidence of bad faith or sham pleading by the appellant.

Reasoning: The trial court's denial of Marsh's motion for attorneys' fees was upheld, affirming the judgment with concurrence from KIRSCH, C.J. and BARNES, J.

Dismissal of Breach of Contract Claim

Application: The breach of contract claim was dismissed because the Auditor did not have the requisite authority to enter into the contract in question.

Reasoning: Count I for breach of contract was dismissed because the Auditor lacked authority to enter into the contract.

Promissory Estoppel and Reasonable Reliance

Application: The court held that reliance on the Auditor's promises was unreasonable due to her lack of authority, leading to the dismissal of the promissory estoppel claim.

Reasoning: Count II for promissory estoppel was dismissed as reliance on promises from the Auditor was unreasonable due to her lack of contracting authority.

Unjust Enrichment and Benefit Conferred

Application: Although a benefit was conferred to the taxing units, the court dismissed the claim because the Auditor was not the beneficiary of the contract.

Reasoning: Count III was dismissed because, although a benefit may have been conferred to the taxing units, the Auditor merely acted as a conduit for tax revenue, not as a beneficiary.