Judges rule on breach of contract lawsuit

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The City of Jeffersonville breached its contract with a company hired to maintain its sewer system by not adequately providing written notice before ending the contract.

Environmental Management Corporation filed an action against the City of Jeffersonville and its Sanitary Sewer Board alleging Jeffersonville breached its contract with EMC, violated Indiana’s Open Door Law, and acted in contempt of an agreed entry and order.

Based on the parties’ contract, written notice had to be given to the other party 90 days before terminating the contract, to allow the party to cure its performance. There were issues after EMC began operating the city’s sewer system, and a letter was sent by the city attorney to EMC asking for specific information, but it never detailed that the city would terminate the contract if problems were not rectified within 90 days. That letter, and one sent in August that said the city was terminating the contract, were authorized during an executive session of the sewer board held before the open board meeting. The city took over operations of the plant in December 2008.

EMC filed its suit, in which the judge ruled in favor of EMC, awarded damages to EMC, and ordered the city to pay attorney fees and costs.

In City of Jeffersonville, Indiana and City of Jeffersonville Sanitary Sewer Board v. Environmental Management Corporation, No. 10A01-1005-PL-217, the Court of Appeals agreed that the city did not provide sufficient written notice to EMC 90 days before terminating the contract. The city’s verbal comments at a regular sewer board meeting held prior to the first letter being sent do not count because they were oral and never recorded in the board’s minutes. In addition, the letter didn’t allege inadequate performance as required by the terms of the contract.

The judges reversed summary judgment for EMC regarding its Open Door Law claims, finding EMC waived those claims. EMC had a 30-day time limit to file its complaints, which it did not do. The time period begins when the plaintiff “knew or should have known” about the act or failure to act that had occurred. EMC had representatives attending every sewer board meeting, so it should have known under the principles of common knowledge and experience, that the two letters weren’t authorized at a public meeting, wrote Judge Patricia Riley. The two complaints filed regarding these letters were filed more than 30 days after the point when EMC should have known about a violation.

The trial court based its award of attorney fees in part on the Open Door Law violations, so the judges remanded for the trial court to recalculate those fees as well as only order the city to pay EMC costs related to filing fees and statutory witness fees.

The judges affirmed the finding the city was in contempt of an agreed entry between the parties to not interfere with EMC’s access to the sewer facilities while a preliminary injunction hearing was pending. The appellate court also affirmed the trial court’s decision to reduce EMC’s corporate support expenses from its losses during calculation of EMC’s damages.


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.