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Jason Gates v. Peter D. Leadstrom
State: Indiana
Court: Court of Appeals
Docket No: 02A03-0611-CV-526
Case Date: 08/09/2007
Preview:Pursuant to Ind.Appellate Rule 65(D), this Memorandum Decision shall not be regarded as precedent or cited before any court except for the purpose of establishing the defense of res judicata, collateral estoppel, or the law of the case.

ATTORNEY FOR APPELLANT: R. DAVID BOYER, II Boyer & Boyer Fort Wayne, Indiana

ATTORNEY FOR APPELLEE: JOHN C. THEISEN HOLLY A. BRADY Fort Wayne, Indiana

IN THE COURT OF APPEALS OF INDIANA

JASON GATES, Appellant, vs. PETER D. LEADSTROM, Appellee.

) ) ) ) ) ) ) ) )

No. 02A03-0611-CV-526

APPEAL FROM THE ALLEN SUPERIOR COURT The Honorable David J. Avery, Judge Cause No. 02D01-0407-PL-311

August 9, 2007 MEMORANDUM DECISION - NOT FOR PUBLICATION BARNES, Judge

Case Summary Jason Gates appeals the jury's verdict in favor of Peter Leadstrom on Leadstrom's complaint for civil conversion. We affirm. Issue Gates raises two issues, which we consolidate and restate as whether there is sufficient evidence to support the jury's verdict in favor of Leadstrom on his claim of conversion. Facts In January 2002, Leadstrom approached Gates regarding the purchase of Industrial Piping and Engineering, LLC, ("IPE"). To obtain financing, Gates told Leadstrom they would create a limited liability company to purchase IPE. Based on his discussions with Gates, Leadstrom believed Leadstrom would have a 40% interest in the company and a 50% interest in the real estate owned by IPE. Leadstrom was to contribute $35,000 and his expertise as an engineer. Leadstrom would act as president, and Gates would serve as CEO. In the spring of 2002, pursuant to Gates's instruction, Leadstrom transferred $10,000 and another $25,000 to an account owned by Graber Investments, LLC ("Graber"). In July 2002, Gates closed on the purchase of the company. Leadstrom served as president until May 18, 2004, when Gates fired him. On June 14, 2004, Leadstrom requested a settlement of $500,000. subsequently filed for bankruptcy protection. Gates rejected this offer, and IPE

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On July 29, 2004, Leadstrom filed a complaint alleging breach of contract, theft, and conversion. After a trial, a jury found in favor of Gates on the breach of contract and theft claims and in favor of Leadstrom on the conversion claim. Gates now appeals. Analysis 1 Gates argues that there is insufficient evidence to support the jury's finding in favor of Leadstrom on Leadstrom's claim of civil conversion. "Our standard of review of sufficiency of the evidence is the same in civil cases as in criminal cases." Indian Trucking v. Harber, 752 N.E.2d 168, 172 (Ind. Ct. App. 2001). We consider only the evidence most favorable to the verdict and the reasonable inferences drawn therefrom. Id. We neither reweigh the evidence nor judge the credibility of the witnesses. Id. Under Indiana Code Section 34-24-3-1, a person who proves the elements of criminal conversion by a preponderance of the evidence may recover up to three times the actual damages, the costs of the action, and reasonable attorney's fees. Greco v. KMA Auto Exchange, Inc., 765 N.E.2d 140, 147 (Ind. Ct. App. 2002). A person who knowingly or intentionally exerts unauthorized control over property of another person commits Class A misdemeanor criminal conversion. Ind. Code
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