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City of Lawrence Utilites Service Board, City of Lawrence, Indiana, and Mayor Dean Jessup, Individually and in his Official Capacity v. Carlton E. Curry
68 N.E.3d 581
Ind.
2017
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Background

  • Carlton Curry was appointed superintendent of Lawrence Utilities by the Utility Service Board (USB) in 2009; he worked closely with then-mayor Ricketts on utility policy.
  • Dean Jessup defeated Ricketts, sought resignations of prior appointees, and ultimately instructed that Curry be terminated after policy disagreements (notably over a proposed wastewater treatment plant).
  • Curry was notified of termination by the new mayor and a letter; he sued claiming wrongful discharge under the utility superintendent statute, unpaid wages under Indiana’s Wage Payment Statute (WPS), and tortious interference by the mayor.
  • Federal claims were dismissed on summary judgment and remaining state-law claims proceeded; the trial court granted summary judgment for Curry on wrongful discharge, denied summary judgment on intentional interference, and entered summary judgment for the City on the WPS claim.
  • The Indiana Supreme Court affirmed: the USB (not the mayor) has exclusive statutory authority to remove a superintendent under Ind. Code § 8-1.5-3-5(d) (only after notice and a hearing); Curry was not entitled to wages under the WPS because he did not perform work after termination; a genuine factual dispute existed on intentional interference.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the mayor had authority to remove the utility superintendent Curry: statute gives board removal power; mayor lacked authority to terminate him City: mayor had authority (Morrison dictum is not binding); mayor could remove Curry Held: Mayor lacked authority; only USB may remove superintendent for cause after notice and hearing (summary judgment for Curry affirmed)
Whether Curry is owed wages under the Wage Payment Statute Curry: he remained "ready, willing and able" to work and thus is owed wages City: Curry performed no labor after termination; WPS protects unpaid wages for labor actually performed Held: Curry not entitled to WPS wages (summary judgment for City affirmed)
Whether the mayor tortiously interfered with Curry’s employment contract Curry: mayor intentionally interfered by terminating him, lacking justification City: a public entity cannot interfere with its own employee; termination was justified Held: Genuine issue of material fact exists about intentional interference; denial of summary judgment for City affirmed
Effect of USB appointing superintendent and later appointing replacement Curry: USB appointment means removal requires USB action; replacement does not cure lack of notice/hearing City: USB’s later appointment ratified termination Held: USB’s appointment of a replacement did not cure absence of statutorily required notice and hearing; wrongful discharge stands

Key Cases Cited

  • Morrison v. McMahon, 475 N.E.2d 1174 (Ind. Ct. App. 1985) (prior case discussing board’s discharge power over superintendent)
  • Elrod v. Burns, 427 U.S. 347 (U.S. 1976) (patronage hiring practices and public policy considerations)
  • City of Clinton v. Golder, 885 N.E.2d 67 (Ind. Ct. App. 2008) (Wage Payment Statute requires actual labor or service to recover wages)
  • SCI Propane, LLC v. Frederick, 39 N.E.3d 675 (Ind. 2015) (standard of review for summary judgment)
Read the full case

Case Details

Case Name: City of Lawrence Utilites Service Board, City of Lawrence, Indiana, and Mayor Dean Jessup, Individually and in his Official Capacity v. Carlton E. Curry
Court Name: Indiana Supreme Court
Date Published: Feb 8, 2017
Citation: 68 N.E.3d 581
Docket Number: 49S02-1609-CT-481
Court Abbreviation: Ind.