Opinion ID: 852327
Heading Depth: 1
Heading Rank: 2

Heading: History of Two Lawsuits

Text: A few days before the Commission's 2005 hearing on transferring the license, Second Century filed an action in the Marion Superior Court, requesting a declaration that Resorts would be required to continue making payments to Second Century. A few months later, Attorney General Steve Carter (now succeeded in office by Gregory F. Zoeller) sought to intervene, and the trial court granted the request on April 27, 2006. The Attorney General filed a counterclaim and a crossclaim, seeking imposition of a constructive trust for public benefit and an accounting for the money paid to Second Century and its principals (collectively Second Century). Second Century moved to dismiss the Attorney General's claims, and the trial court did so. The Attorney General appealed, and the Court of Appeals affirmed. Carter v. City of East Chicago, 881 N.E.2d 1114 (Ind.Ct. App.2008). We granted transfer and recently reinstated the claims at issue. Zoeller v. East Chicago Second Century, Inc., 904 N.E.2d 213 (Ind.2009). The present appeal is a continuation of the original matter filed by Second Century, seeking declaration that Second Century was a third-party beneficiary of the letter agreements entitled to continue receiving funds from the riverboat operation. Resorts filed an answer, counterclaim, and third-party complaint against the two foundations and the City on April 18, 2005, requesting that the trial court declare which entity or entities should continue to receive the gambling revenues designated under the license for economic development in East Chicago. The Foundations filed their answer and intervening complaint on May 11, 2005, and the City filed its answer, third-party complaint, counterclaims, and crossclaims on June 27, 2005. Late in 2005, Second Century and the Foundations moved to dismiss the City's claims, and the City moved for partial summary judgment. The Attorney General filed an amicus brief supporting the City's position that the letter agreement violated public policy. These motions were still pending on June 8, 2006, when the Commission announced that the Attorney General had completed an investigation into the financial operations of Second Century with the assistance of Special Deputy Attorney General Patrick Baude. This inquiry concluded that much of the $16 million forwarded to Second Century could not be accounted for and could be traced to Second Century's principals. Based on financial irregularities found in that investigation, the Commission issued Resolution 2006-58, disapproving continued payments by Resorts to Second Century. Second Century then sought judicial review of the Commission's resolution in the Marion Superior Court under the Administrative Orders and Procedures Act, Ind.Code §§ 4-21.5-5.1-1 to -7-9. This review proceeding was assigned to Judge Moberly in Marion Superior Court 12. On July 20, 2006, the Foundations moved to consolidate the agency review with the civil lawsuit pending before Judge Bradford in Marion Superior Court I. The proceedings were consolidated on July 26, 2006. [1] Judge Bradford dismissed all but one of the City's counterclaims, crossclaims, and third-party claims under the statutes of limitation. The trial court found the City's breach of contract claim actionable, however, because it serve[d] to put Second Century on notice regarding compliance with its obligations to East Chicago under both the confirmation agreement and the letter agreements. (App. at 61.) It denied the City's motion for summary judgment. The City appealed, and the Court of Appeals affirmed in part and reversed in part. City of East Chicago v. East Chicago Second Century, Inc., 878 N.E.2d 358 (Ind.Ct.App.2008). We granted transfer, 898 N.E.2d 1219 (Ind.2008) (Table). We will first turn to whether the trial court erred in dismissing the City's claims under the statutes of limitation. Then, we will consider whether the letter agreements are terminable at will. Finally, we determine whether the Foundations and Second Century are third-party beneficiaries under the agreements and the license who are entitled to receive ongoing payments from the riverboat operations.