Jack A. Sheets v. A Progressive Realty, Inc., d/b/a Myers Trust and David Myers (mem. dec.)
20A03-1701-PL-161
Ind. Ct. App.Nov 15, 2017Background
- Jack Sheets served as CEO/president of Interra Credit Union from 1985 until 2013 and oversaw branch expansion efforts.
- David Myers, president and majority owner of Progressive Realty and Interra board member, and his son Andrew (a Progressive contractor) assisted Interra with site data and brokered the Verdant Drive purchase; Progressive received a 10% commission ($49,500) from the seller.
- Sheets claimed he first learned Progressive would receive the full commission at closing and raised conflict-of-interest concerns; later he instructed use of a different broker for subsequent purchases.
- Over 2012–2013, Myers participated in raising concerns about Sheets’ competence, the board conducted an evaluation, and the board unanimously voted to transition Sheets out as CEO.
- Sheets sued Myers (individually and as agent for Progressive) for intentional tortious interference with his at-will employment; Myers moved for summary judgment arguing his conduct was within his official duties as a director.
- The trial court granted summary judgment for Myers; on appeal the Court of Appeals affirmed, holding Myers acted within the scope of his official duties and motive was irrelevant to liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Myers can be personally liable for tortious interference with Sheets’ at-will employment | Sheets: Myers engaged in self-dealing and retaliatory conduct outside his official duties (conflict of interest, nondisclosure of commission, and retaliatory role in Sheets’ ouster) | Myers: all challenged acts were within his express or implied authority as an Interra director (investigating performance, proposing sites, participating in board decision) | Court affirmed summary judgment for Myers: his actions fell within the scope of his official duties; improper motive or bylaw/statute violations do not make internal-board actions tortious interference |
Key Cases Cited
- Trail v. Boys and Girls Clubs of Nw. Indiana, 845 N.E.2d 130 (Ind. 2006) (directors/officers not personally liable for interfering with corporate contracts when acting within official duties)
- Bochnowski v. Peoples Fed. Sav. & Loan Ass’n, 571 N.E.2d 282 (Ind. 1991) (at-will employee interference actionable only when interferer acted intentionally and without legitimate business purpose)
- Manley v. Sherer, 992 N.E.2d 670 (Ind. 2013) (standard of review for summary judgment)
- Orr v. Westminster Vill. North, Inc., 689 N.E.2d 712 (Ind. 1997) (distinguishing definite-term vs. at-will employment)
- Poznanski ex rel. Poznanski v. Horvath, 788 N.E.2d 1255 (Ind. 2003) (definition of genuine issue of material fact for summary judgment)
