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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: CHARLES V. TRAYLOR Indianapolis, Indiana ATTORNEY FOR APPELLEES: STEVEN STOESZ Stoesz & Stoesz Westfield, Indiana

IN THE COURT OF APPEALS OF INDIANA
NANCY J. MCDONOUGH, Appellant-Defendant, vs. SCOTT MCDONOUGH as Personal Representative of the estate of Charles McDonough, Appellees-Plaintiff. ) ) ) ) ) ) ) ) ) ) )

No. 49A04-0612-CV-725

APPEAL FROM THE MARION SUPERIOR COURT The Honorable Robyn L. Moberly, Judge Cause No. 49D12-0407-CT-1393

December 28, 2007

MEMORANDUM DECISION - NOT FOR PUBLICATION

ROBB, Judge

Case Summary and Issues Nancy McDonough appeals the trial court's judgment in favor of the Estate of Charles McDonough (the "Estate"). On appeal, Nancy raises two issues, which we expand and restate as 1) whether the trial court properly entered judgment in favor of the Estate; 2) whether the trial court properly awarded prejudgment interest to the Estate; and 3) whether the trial court properly refused to award prejudgment interest to Nancy on her claims against the Estate. Although we conclude the trial court properly entered judgment in favor of the Estate and properly determined the Estate was entitled to a prejudgment interest award, we reverse and remand to the trial court with instructions to recalculate its judgment because Nancy also should have been awarded prejudgment interest on her claims against the Estate. Facts and Procedural History On September 14, 1990, Nancy purchased a home located at 8307 Mud Creek Road in Indianapolis (the "Residence") for $130,000. Nancy paid $26,000 as a down payment, which her mother, Eleanor Best, loaned to her, and secured the remainder of the purchase price with a mortgage. Because the Residence was in a state of disrepair, Nancy's father, George Best, agreed to perform substantial renovations, including removing and reframing the interior walls, replacing the electrical and plumbing systems, and installing new ceilings and floors. By May 1992, the Residence was in a suitable condition for Nancy to move in. On December 22, 1992, Nancy and Charles McDonough were married. During the couple's marriage, and while they were living in the Residence, George continued with his renovations and also undertook an expansion project. By December 1998, George had completed most of the expansion project, which increased the Residence from one-story and 2

2,200 square feet to two stories and 4,500 square feet. On December 15, 1998, George wrote a letter to Nancy that listed the time he spent on the renovations and the expansion project, as well as the expenses he incurred. The letter also stated that the balance on the loan from Eleanor was $15,500 and that the total amount owed to George and Eleanor was $95,240 (the "Debt"). Toward the end of 1999, Nancy filed a petition for dissolution of marriage. Several months later, in late January 2000, Nancy and Charles executed a property settlement agreement that she had drafted (the "Settlement Agreement"). Section 2.2 of the Settlement Agreement pertained to the Residence: The marital residence and contiguous real estate located at 8307 Mud Creek Rd., Indianapolis, IN 46256 is encumbered by a mortgage. The Residence shall be sold and at closing to be released from lien and all fees related to the sale to be paid in full. Husband and Wife shall divide equally the profit from the sale of said Residence. Appellant's Appendix at 150. On February 2, 2000, the dissolution court entered a decree dissolving the parties' marriage and disposing of the marital estate pursuant to the terms of the Settlement Agreement. On February 16, 2000, two weeks after the dissolution court entered its decree, Charles suffered a heart attack and died. On July 7, 2000, Nancy filed an affidavit with the Marion County Recorder's office that acknowledged the Debt and stated that "George Best and Eleanor Best have a lien against the property as security for the Debt." Id. at 156.

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On November 14, 2000, Nancy sold the residence for $270,000. At the closing, Nancy used the proceeds from the sale to pay the $148,367.19 balance on the mortgage1 and $4,084 in closing costs. Nancy also directed the title company to pay the Debt, leaving her with $22,308.81. On December 18, 2000, Nancy issued a check payable to Scott

McDonough, Charles's brother and the Estate's personal representative, for $10,374.41.2 The bottom of the check stated, "

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