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Cleary v. Morlan - Mechanic's Lien Foreclosure Appeal

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Filed March 6th, 2026
Detected March 6th, 2026
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Summary

The Indiana Court of Appeals affirmed and remanded a mechanic's lien foreclosure case. The court found that the trial court did not err in foreclosing the lien and will consider appellate attorney fees. The case involves a dispute over payment for electrical work on a new house.

What changed

The Indiana Court of Appeals has issued an opinion in the case of Christopher R. Cleary v. Charles Morlan, docket number 25A-PL-1590. The court affirmed the trial court's decision to foreclose a mechanic's lien filed by Charles Morlan against Christopher Cleary. The dispute arose from a verbal agreement for electrical work on a new house, where Cleary refused to pay Morlan, claiming a misunderstanding of the payment terms.

This ruling means the mechanic's lien foreclosure stands, and the case is remanded for further consideration of appellate attorney fees. The decision reinforces the legal framework for enforcing mechanic's liens in Indiana. Legal professionals involved in construction disputes or real estate litigation should note the court's reasoning regarding the agreement and lien foreclosure.

What to do next

  1. Review decision for implications on mechanic's lien enforcement in Indiana.
  2. Assess potential for appellate attorney fees in similar lien foreclosure cases.

Source document (simplified)

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Top Caption Disposition [Combined Opinion

                  by Judge Felix](https://www.courtlistener.com/opinion/10804908/christopher-r-cleary-v-charles-morlan/about:blank#o1) The text of this document was obtained by analyzing a scanned document and may have typos.

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March 6, 2026 Get Citation Alerts Download PDF Add Note

Christopher R. Cleary v. Charles Morlan

Indiana Court of Appeals

Disposition

Remanded and Affirmed

Combined Opinion

                        by Judge Felix

IN THE

Court of Appeals of Indiana
Christopher R. Cleary, FILED
Mar 06 2026, 9:24 am
Appellant-Defendant
CLERK
Indiana Supreme Court
Court of Appeals
v. and Tax Court

Charles Morlan,
Appellee-Plaintiff

March 6, 2026
Court of Appeals Case No.
25A-PL-1590
Appeal from the LaPorte Superior Court
The Honorable Richard R. Stalbrink Jr., Judge
Trial Court Cause No.
46D02-2302-PL-000232

Opinion by Judge Felix
Judges May and Mathias concur.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 1 of 14
Felix, Judge.

Statement of the Case
[1] Pursuant to a verbal agreement, Charles Morlan agreed to wire Christopher

Cleary’s new house for $9,000. Morlan completed the work—which by all

accounts was satisfactory and passed inspection—but Cleary refused to pay.

Cleary claimed the agreement was for labor and materials; Morlan claimed it

was for labor only. Morlan filed a mechanic’s lien and sued Cleary to foreclose

that lien. After a bench trial, the trial court entered judgment of foreclosure in

favor of Morlan. Cleary now appeals, and between them, the parties raise two

issues for our review:

  1. Whether the trial court erred by foreclosing Morlan’s mechanic’s lien; and
  2. Whether Morlan is entitled to appellate attorneys’ fees.

[2] We affirm and remand with instructions.

Facts and Procedural History
[3] In 1990, Cleary purchased the real estate located at 2007 Oriole Trail, Long

Beach, Indiana (the “Property”). At some time prior to March 2021, Cleary’s

house on the Property “burned down,” Jan. Tr. Vol. II at 7. 1 Thereafter,

1
Indiana Appellate Rule 28(A) and Items 2(a), 11, and 13 of Appendix A require a court reporter to
consecutively number the volumes of the Transcript; prepare only one table of contents for the entire
transcript, including when multiple hearings are transcribed; and to combine multiple hearings into a single
transcript, although the hearings may be split between volumes if the court reporter so chooses. Here, two
hearings were transcribed, and they occurred on January 23 and May 20, 2025. The court reporter submitted

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 2 of 14
Cleary, who is a builder in Illinois, began building a new home on the Property

(the “New House”).

[4] In fall 2022, Cleary solicited estimates for wiring the New House. James

Lechtanski of Harbor Electric estimated his company could do the work for

$25,000, which included materials and labor but did not include fixtures.

Approximately $12,000 to $14,000 of that estimate was solely for labor. In mid-

November, Morlan and fellow electrician Walter Wroblewski met with Cleary

at the Property to determine what Cleary “wanted done.” Jan. Tr. Vol. II at 77.

Soon after Morlan and Wroblewski left, Cleary and Morlan had a telephone

conversation regarding payment. Morlan verbally agreed to wire the New

House in exchange for $9,000 (the “Agreement”). Cleary told Morlan to “call

in what [he] need[ed] to do” the job, and Cleary would “go pick it up.” Id. at

128.

[5] Morlan had Wroblewski, James Buchanan, and Darren Nichols help him

complete the work. The four men had “almost 100 years” of combined

experience as electricians. Jan. Tr. Vol. II at 118. Morlan “placed the order”

for the materials, id. at 144; Cleary picked up and paid for the materials; and

Morlan and his team completed the job as requested. Cleary was satisfied with

Morlan’s work, and it was approved by a local inspector. Nevertheless, Cleary

refused to pay Morlan the full $9,000 “[b]ecause [Cleary] deducted the material

two tables of contents and two sets of Transcript Volume II, one for each of the two hearings. To avoid
confusion, we include the relevant month before each reference to the Transcript.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 3 of 14
list from the 9,000,” which would have left Morlan with $2,400. Jan. Tr. Vol.

II at 48. Cleary and Morlan disagreed over the amount owed, and Morlan

handed off the discussion to Wroblewski. Cleary told Wroblewski that “he

wouldn’t pay [Morlan and his team] a red cent. . . . He said we charged way

too much. Thought it was just astronomical.” Id. at 81.

[6] On December 1, 2022, Morlan recorded a $9,000.00 mechanic’s lien on the

Property (the “Lien”). In February 2023, Morlan sued Cleary for foreclosure of

the Lien based on Cleary’s breach of the Agreement and unjust enrichment.

Cleary countersued Morlan for violating the Indiana Home Improvement

Contracts Act 2 (“HICA”).

[7] At the bench trial, Morlan testified that the Agreement was $9,000 for labor

only and Cleary “was covering all materials,” Jan. Tr. Vol. II at 125. Cleary

testified that the agreement was “$9,000 for time and material.” Id. at 153.

Additionally, Cleary agreed that if the cost of materials had been more than the

agreed upon price, Morlan would have owed Cleary money:

Q [H]ypothetically sir, according to you, if the agreed upon
amount was $10,000 and the material cost came in at 12,
[Morlan] would owe you 2?

A Hypothetically, yes.

2
Ind. Code §§ 24-5-11-1 to -14.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 4 of 14
Id. at 42.

[8] The trial court determined that HICA did not apply; the Agreement was for

only labor and Cleary breached the Agreement by refusing to pay Morlan; and

Morlan was “equally entitled to relief and the foreclosure of [the] Lien under

either the theory of unjust enrichment or Quantum Meruit,” Appellant’s App.

Vol. II at 24. Consequently, the trial court foreclosed the Lien; ordered the

Property sold by sheriff’s sale; and awarded Morlan a “judgment in rem against

[the Property] and in personam against . . . Cleary, in the sum of $27,091.45 as

of February 28, 2025, to which the net proceeds of the sale of the [Property]

shall be applied.” Appellant’s App. Vol. II at 27. The judgment consists of the

following:

Principal Balance of the Lien $ 9,000.00

Interest of $1.97 per diem from December $ 1,617.37
1, 2022, to February 28, 2025

Attorneys’ Fees & Costs $ 16,474.08

Total $ 27,091.45

See id. The trial court also provided for post-judgment interest. This appeal

ensued.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 5 of 14
Discussion and Decision
1. The Trial Court Did Not Err by Foreclosing the Lien

[9] Cleary contends the trial court erred by foreclosing the Lien because (a) HICA

applies and bars Morlan’s claims giving rise to the Lien and (b) the Agreement

is unenforceable. We address each contention in turn.

a. Application of HICA

[10] First, Cleary argues that the trial court erred by concluding HICA did not apply

to bar Morlan’s claims. The purpose of HICA

is to protect consumers by placing specific minimum
requirements on the contents of home improvement contracts . . .
[because] few consumers are knowledgeable about the home
improvement industry or of the techniques that must be
employed to produce a sound structure. The consumer’s reliance
on the contractor coupled with the well-known abuses found in
the home improvement industry, served as an impetus for the
passage of [HICA], and contractors are therefore held to a strict
standard.

Benge v. Miller, 855 N.E.2d 716, 720 (Ind. Ct. App. 2006) (internal citation

omitted). To that end, HICA requires a real property improvement supplier

performing any real property improvement in an amount greater than $150 to

provide the consumer with a written contract therefor. Ind. Code § 24-5-11-1 to

-14. A real property improvement supplier who violates HICA—by, among

other things, failing to provide a written contract—commits “a deceptive act

that is actionable . . . by a consumer under IC 24-5-0.5-4 and is subject to the

remedies and penalties under IC 24-5-0.5.” Id. § 24-5-11-14.
Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 6 of 14
[11] The parties specifically dispute whether Morlan performed a “real property

improvement” because the New House was a new build rather than an already

existing house. “[W]e review issues of statutory interpretation de novo.”

J.Q.R. v. State, 252 N.E.3d 919 (Ind. 2025) (citing Bojko v. Anonymous Physician,

232 N.E.3d 1155, 1158 (Ind. 2024)). In interpreting HICA’s provisions, we

must “give effect to every word and ‘eschew those [interpretations] that treat

some words as duplicative or meaningless.’” Cutchin v. Beard, 171 N.E.3d 991,

997 (Ind. 2021) (alteration in original) (quoting Estabrook v. Mazak Corp., 140

N.E.3d 830, 836 (Ind. 2020)). We also give the words and phrases used “their

plain, or ordinary and usual,” meaning. I.C. § 1-1-4-1(1); see also Morales v. Rust,

228 N.E.3d 1025, 1054 (Ind. 2024) (quoting ESPN, Inc. v. Univ. of Notre Dame

Police Dept., 62 N.E.3d 1192, 1195 (Ind. 2016)) (“When interpreting words in a

statute, this Court’s ‘first task’ is to assign words their ‘plain meaning’ . . . .”),

reh’g denied (Apr. 22, 2024), cert. denied, 145 S. Ct. 177 (2024). “The meaning of

doubtful words may be determined by reference to their relationship with other

associated words and phrases.” ESPN, 62 N.E.3d at 1198 (quoting 600 Land,

Inc. v. Metro. Bd. of Zoning Appeals of Marion Cnty., 889 N.E.2d 305, 311 (Ind.

2008)).

[12] As used in HICA, a “real property improvement” is “any alteration, repair,

replacement, reconstruction, or other modification of residential real property.”

I.C. § 24-5-11-3. Cleary argues that the New House was merely a

“replacement” or “reconstruction” of his prior house on the Property that

burned down, which means Morlan replaced or reconstructed the house’s

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 7 of 14
wiring. Morlan contends that HICA “is not applicable to new residential

construction,” such as the New House, and contemplates only the improvement

of existing residential real property. Appellee’s Br. at 14. Cleary does not argue

that HICA applies to new construction.

[13] We begin with the definition of “residential real property.” That term “means

real property that . . . contains one (1) to four (4) units; and . . . is used in whole

or in part as a dwelling of a consumer”; this term “includes all fixtures to,

structures on, and improvements to the real property.” I.C. § 24-5-11-7.5

(emphases added). The use of the present tense—“contains” and “is”—

indicates that to qualify as “residential real property,” the real estate must

currently have one to four units thereon and must currently be used as a dwelling

of a consumer, either in whole or in part.

[14] Next, we turn to the list of nouns used in the definition of “real property

improvement.” We interpret each word in that list “in the same general sense.”

Mi.D. v. State, 57 N.E.3d 809, 814 (Ind. 2016) (quoting State v. D.M.Z., 674

N.E.2d 585, 588 (Ind. Ct. App. 1996), trans. denied). HICA does not define

“alteration,” “repair,” “replacement,” “reconstruction,” or “modification,” so

we look to general-language dictionaries to ascertain the plain meanings of

these terms. Performance Servs., Inc. v. Randolph E. Sch. Corp., 211 N.E.3d 508,

512 (Ind. 2023) (quoting Rainbow Realty Grp., Inc. v. Carter, 131 N.E.3d 168, 174

(Ind. 2019)). “Alteration” generally means the act or process of making a thing

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 8 of 14
different without changing it into something else. 3 “Repair” generally means

the act or process of restoring by replacing a part or putting together what is

torn or broken.4 “Replacement” generally means the action or process of

putting something new in the place of something else or restoring something to

a former place or position. 5 “Reconstruction” generally means the act or

process of rebuilding, repairing, or restoring something. 6 “Modification”

generally means the making of a limited change in something. 7 Read together,

these terms signal that a “real property improvement” is performed on something

that already exists as opposed to something that is being constructed for the first time.

Considering the definition of “residential real property” together with the listed

nouns reveals that a “real property improvement” cannot be performed on a

house that is being newly constructed.

[15] Here, Cleary’s previous house on the Property was “completely destroyed” by a

fire and “was torn down.” Jan. Tr. Vol. II at 61. It is undisputed that the New

3
Alteration, MERRIAM-WESTER.COM DICTIONARY (Feb. 17, 2026), https://www.merriam-
webster.com/dictionary/alteration; Alter, MERRIAM-WESTER.COM DICTIONARY (Feb. 15, 2026),
https://www.merriam-webster.com/dictionary/alter.
4
Repair, MERRIAM-WESTER.COM DICTIONARY (Feb. 18, 2026), https://www.merriam-
webster.com/dictionary/repair.
5
Replacement, MERRIAM-WESTER.COM DICTIONARY (Feb. 6, 2026), https://www.merriam-
webster.com/dictionary/replacement; Replace, MERRIAM-WESTER.COM DICTIONARY (Feb. 19, 2026),
https://www.merriam-webster.com/dictionary/replacing.
6
Reconstruction, MERRIAM-WESTER.COM DICTIONARY (Feb. 18, 2026), https://www.merriam-
webster.com/dictionary/reconstruction.
7
Modification, MERRIAM-WESTER.COM DICTIONARY (Feb. 6, 2026), https://www.merriam-
webster.com/dictionary/modification.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 9 of 14
House was new construction that was in progress when Morlan performed the

electrical work. Morlan and his team were the first to wire the New House.

There was nothing for them to alter, repair, replace, reconstruct, or otherwise

modify. In other words, Morlan was not performing a “real property

improvement.” On these facts, HICA does not apply and the trial court did not

err in so concluding.

b. Enforceability of the Agreement

[16] Second, Cleary argues that the Agreement is not enforceable because it was

missing an essential term, namely, whether the Agreement was for (1) labor

only or (2) labor and materials. The trial court determined the Agreement was

for labor only:

  1. That on or about the second week of November, 2022[,]
    CLEARY and MORLAN, entered into an oral agreement
    wherein Morlan agreed to provide the labor required to install the
    “rough in” electrical service in connection with the construction of a
    new three-bedroom, 4300 square foot (including basement) single
    family residence on the [Property]. CLEARY agreed to provide and
    pay for the materials and upon completion of the work and
    inspection would pay $9,000.00 to MORLAN for his work.

  2. That pursuant to said agreement, MORLAN immediately
    furnished the labor to install the “rough-in” electrical service in a
    good and workmanlike manner; per the NEC Code; passing all
    inspections; and otherwise kept his promises for the labor
    provided in exchange for payment in the agreed amount of
    ($9,000.00) nine thousand dollars.

Appellant’s App. Vol. II at 16–17 (emphases added).

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 10 of 14
25. CLEARY, a builder, did not have a written contract with
any of the tradesmen working this job.

Id. at 19.

  1. MORLAN and Company, all local tradesmen, are
    professionally trained union electricians; with more than 100
    years of combined service between them.

  2. Not only did they know the value of their expertise,
    MORLAN gave CLEARY the option to hire them on an hourly
    basis of payment for their time; which option was rejected by
    CLEARY who insisted on a hard number for the labor while he picked
    up the costs of the materials.

  3. Whether the job took two days, two weeks or two months,
    MORLAN and company were being paid by the job; NOT by
    the hour and at that price certainly, not including the cost of
    materials. To think that the agreement was anything other than an
    agreement for their services to get the job done as quickly as possible in
    exchange for a lump sum payment of $9,000.00 would amount to
    rewriting the agreement and a windfall to CLEARY who has
    accepted the benefits of their expertise and had already turned
    down another contractor who was more expensive.

Id. at 23 (emphases added).

[17] The trial court here entered findings and conclusions sua sponte, so we review

the “issues covered by the findings with a two-tiered standard of review that

asks whether the evidence supports the findings, and whether the findings

support the judgment.” Steele-Giri v. Steele, 51 N.E.3d 119, 123 (Ind. 2016)

(citing In re S.D., 2 N.E.3d 1283, 1287 (Ind. 2014)). We will not reweigh the

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 11 of 14
evidence or judge witness credibility, and we consider only the evidence and

reasonable inferences that support the court’s decision. In re Ma.H., 134 N.E.3d

41, 45 (Ind. 2019) (citing In re K.E., 39 N.E.3d 641, 646 (Ind. 2015)). We

review any issue not covered by the findings “under the general judgment

standard,” which means we will affirm “on any legal theory supported by the

evidence.” Steele-Giri, 51 N.E.3d at 123–24 (citing S.D., 2 N.E.3d at 1287).

[18] The parties do not dispute the Agreement’s existence; instead, they dispute

whether the Agreement was missing an essential term such that it is

unenforceable. Where, as here, the contract was not reduced to writing, the

terms thereof “are a matter to be interpreted by the trier of fact.” Ballew v. Town

of Clarksville, 683 N.E.2d 636, 639 (Ind. Ct. App. 1997) (citing Tuthill Corp., Fill-

Rite Div. v. Wolfe, 451 N.E.2d 72, 77 (Ind. Ct. App. 1983), reh’g denied), trans.

denied. A contract only needs to contain the essential terms to be enforceable.

Conwell v. Gray Loon Outdoor Mktg. Grp., Inc., 906 N.E.2d 805, 813 (Ind. 2009)

(citing Illiana Surgery & Med. Ctr., LLC. v. STG Funding, Inc., 824 N.E.2d 388

(Ind. Ct. App. 2005)). We “will not find that a contract is so uncertain as to

preclude specific enforcement where a reasonable and logical interpretation will

render the contract valid.” Id. (citing Donovan v. Ivy Knoll Apartments P’ship, 537

N.E.2d 47 (Ind. Ct. App. 1989)).

[19] Here, the trial court determined that the Agreement was for labor only. In

making this determination, the trial court clearly discredited Cleary’s testimony

that he believed it was for both labor and materials. Cleary’s appellate

arguments to the contrary are requests for us to reweigh the evidence and

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 12 of 14
reassess witness credibility, which we cannot do, see Ma.H., 134 N.E.3d at 45

(citing K.E., 39 N.E.3d at 646). We therefore cannot say the trial court clearly

erred by concluding the Agreement was for labor only and by enforcing the

Agreement. Consequently, the trial court did not err by foreclosing the Lien

based on Cleary’s breach of the Agreement.8, 9

  1. Morlan Is Entitled to Appellate Attorneys’ Fees

[20] Morlan cross-appeals for appellate attorneys’ fees. The mechanic’s lien statute

provides that a lienholder who prevails in enforcing a lien is entitled to recover

“reasonable attorney’s fees.” I.C. § 32-28-3-14(a). The statute also

encompasses appellate attorneys’ fees. Ambrose v. Dalton Const., Inc., 44 N.E.3d

707, 715 (Ind. Ct. App. 2015) (citing Templeton v. Sam Klain & Son, Inc., 425

N.E.2d 89, 94–95 (Ind. 1981)), as clarified on reh’g, 51 N.E.3d 320 (Ind. Ct. App.

2016). Lienholder Morlan has prevailed in this appeal, so he is entitled to

recover reasonable attorneys’ fees pursuant to Indiana Code section 32-28-3-

14(a).

8
Cleary does not dispute that he failed to pay Morlan $9,000, nor does he dispute that this failure constitutes
a breach of the Agreement.
9
Because we conclude the trial court did not err by foreclosing the Lien based on Cleary’s breach of the
Agreement, we need not address Cleary’s remaining appellate argument that the trial court erred by
concluding Morlan was alternatively entitled to foreclosure of the Lien based on quantum meruit. Also, we
note that Cleary does not challenge the trial court’s award of prejudgment interest, post-judgment interest,
and attorneys’ fees.

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 13 of 14
Conclusion
[21] In sum, the trial court did not err by foreclosing the Lien, and Morlan is

statutorily entitled to appellate attorneys’ fees. We therefore affirm the trial

court’s judgment of foreclosure and remand for a determination of Morlan’s

reasonable appellate attorneys’ fees.

[22] Affirmed and remanded.

May, J., and Mathias, J., concur.

ATTORNEY FOR APPELLANT
Bradley J. Adamsky
Drayton, Biege, Sirugo & Elliott, LLP
LaPorte, Indiana

ATTORNEY FOR APPELLEE
Michael S. Bergerson
Law Offices of Michael S. Bergerson
Michigan City, Indiana

Court of Appeals of Indiana | Opinion 25A-PL-1590 | March 6, 2026 Page 14 of 14

Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
Federal and State Courts
Filed
March 6th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Legal professionals
Geographic scope
National (US)

Taxonomy

Primary area
Judicial Administration
Operational domain
Legal
Topics
Contract Law Real Estate Law

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