State of Indiana v. Beth A. Neff , 117 N.E.3d 1263 ( 2019 )


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  •                                                                FILED
    Feb 27 2019, 3:21 pm
    CLERK
    Indiana Supreme Court
    Court of Appeals
    and Tax Court
    IN THE
    Indiana Supreme Court
    Supreme Court Case No. 18S-IF-00478
    State of Indiana,
    Appellant/Cross-Appellee (Plaintiff below),
    –v–
    Beth A. Neff,
    Appellee/Cross-Appellant (Defendant below).
    Argued: September 27, 2018 | Decided: February 27, 2019
    Appeal from the Delaware Circuit Court,
    No. 18C01-1707-IF-000015
    The Honorable Marianne L. Vorhees, Judge
    On Petition to Transfer from the Indiana Court of Appeals,
    No. 18A02-1708-IF-01933
    Opinion by Justice Goff
    Chief Justice Rush and Justices David, Massa, and Slaughter concur.
    Goff, Justice.
    Turning to the judiciary to remove a duly-elected public official from
    office is a radical departure from our usual democratic process because it
    risks silencing the collective voice of the people, spoken in each election.
    As such, it is a remedy rarely sought and even more rarely granted. This
    appeal involves such a request by the State to remove the Town of
    Yorktown’s Clerk-Treasurer, Beth Neff, but it does not fall within the
    exceptionally rare category of cases that warrant removal. Under the
    statute relied on by the State for this removal action, a public official may
    be removed from office for only a general failure to carry out his or her
    required duties. Because the State has not shown that Neff’s failures and
    errors constitute such a general failure, she is not subject to removal.
    Factual and Procedural History
    At all times relevant to this appeal, Beth Neff served as the elected
    Clerk-Treasurer of the Town of Yorktown and was responsible for, among
    other things, managing and keeping account of Yorktown’s finances. In
    connection with these responsibilities, her office was subject to financial
    examination by the Indiana State Board of Accounts (the “SBOA”). Two
    such examinations by the SBOA, along with actions taken in response to
    those examinations, laid the foundation for this proceeding.
    The first examination related to the 2012 calendar year, and the SBOA
    uncovered several deficiencies in Yorktown’s financial records and
    processes. The deficiencies included improper bank account
    reconciliations, errors in Yorktown’s report of its yearly financial
    activities, and a financial account showing a negative cash balance of
    approximately $140,000. In a November 2013 exit conference, the SBOA
    discussed the results of its examination with Neff, the Yorktown Town
    Council President, and the Yorktown Town Manager, and it provided
    some direction to Neff on avoiding future deficiencies.
    The second examination related to the 2013, 2014, and 2015 calendar
    years, and the SBOA found that the deficiencies noted in the 2012
    examination continued into 2013, 2014, and 2015. In fact, the SBOA Audit
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019    Page 2 of 14
    Manager who oversaw both examinations testified that Yorktown’s
    financial records worsened after the first examination, and, as a practical
    matter, there were too many errors to identify. In an October 2016 exit
    conference, the SBOA again discussed the results of its examination with
    Neff, the Yorktown Town Council President, and the Yorktown Town
    Manager.
    In response to the second examination, the Yorktown Town Council
    approved hiring an outside accounting firm to review Yorktown’s books
    and to complete bank account reconciliations for the 2012, 2013, 2014, and
    2015 calendar years. The accounting firm’s review revealed over 150
    errors that, without considering whether each error increased or
    decreased the balance of Yorktown’s books, totaled approximately
    $3,090,000. The net effect of these errors was that Yorktown’s books were
    understated by approximately $346,000. After completing the bank
    account reconciliations, the accounting firm was able to identify and
    propose adjustments to Yorktown’s books to reduce the errors to just near
    $250. Yorktown initially contracted to spend $20,000 for this work but
    ultimately spent almost $70,000 after discovering the full extent of the
    work required.
    On July 12, 2017, about a month after the outside accounting firm
    completed its work reviewing Yorktown’s 2012, 2013, 2014, and 2015
    books, the State, by the Delaware County prosecuting attorney, filed its
    Complaint for Removal from Office against Neff. Relying on Indiana
    Code section 5-8-1-35 (the “Removal Statute”), the State sought Neff’s
    removal for her alleged “refus[al] or neglect[], on numerous occasions, to
    perform the official duties pertaining to the office of the Yorktown Clerk-
    Treasurer.” Appellant’s App. Vol. 2, p. 23, ¶4. The State brought three
    specific counts alleging that Neff failed to: (1) complete monthly
    accounting reconciliations; (2) follow the directions of the SBOA, the
    relevant state examiner; and (3) use the accounting and financial reporting
    systems adopted by the SBOA in its Accounting and Uniform Compliance
    Guideline Manual for Cities and Towns (the “SBOA Manual”). Neff
    sought dismissal of the complaint pursuant to Trial Rule 12(B)(6), but the
    trial court denied her motion.
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019   Page 3 of 14
    Sixteen days after the State filed its Complaint and within the Removal
    Statute’s twenty-day deadline, the trial court held a summary hearing on
    the merits. See 
    Ind. Code § 5-8-1-35
    (a) (2017). A few days later, the trial
    court issued its written findings of fact, conclusions of law, and judgment
    in favor of Neff. It found that “Neff failed to reconcile [Yorktown’s] books
    for forty-eight consecutive months[;] . . . did not follow [SBOA]
    directives; violated the [SBOA] Manual that should have directed her in
    doing her job; and committed errors that resulted in over $3 million in
    total errors affecting over thirty accounts.” Appellant’s App. Vol. 2, p. 81
    (emphases in original). However, it also found that Neff was completing
    the other work of her office, including fulfilling her non-financial duties.
    
    Id. at 84
    . After discussing this Court’s precedent interpreting the Removal
    Statute and applicable constitutional provisions, the trial court concluded
    that the Removal Statute applies in three situations: “complete failures to
    act, the inability to act due to mental conditions, or crimes.” 
    Id.
     Because
    Neff was successfully completing some of her duties as Clerk-Treasurer,
    the trial court concluded that she had committed misfeasance rather than
    nonfeasance; that is, she had not completely failed to carry out her duties.
    
    Id.
     Thus, the trial court entered judgment in her favor. 
    Id.
    The State appealed, arguing that the Removal Statute does not require
    the State to show a failure to fulfill all duties, all the time, to remove a
    public official. Instead, the State contended that pervasive failures
    involving critical duties suffice for removal. In response, Neff argued in
    favor of the trial court’s judgment, but she also cross-appealed the trial
    court’s denial of her motion to dismiss the complaint. The Court of
    Appeals agreed generally with the State and held that “an officeholder
    like Neff need not abandon each and every statutory duty before removal
    from office may be warranted.” State v. Neff, 
    103 N.E.3d 635
    , 642 (Ind. Ct.
    App. 2018). It concluded that the Removal Statute applied because Neff
    “neglected to perform a critical, official, and mandatory duty of her office
    for an extended period of time.” 
    Id. at 643
    . Thus, it reversed the trial
    court. 
    Id.
     at 643–44.
    We granted Neff’s petition to transfer to address the merits of the
    State’s complaint for removal, thereby vacating the Court of Appeals
    opinion in part. See Ind. Appellate Rule 58(A). We summarily affirm the
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019   Page 4 of 14
    portion of the Court of Appeals opinion regarding Neff’s cross-appeal.
    See App. R. 58(A)(2).
    Standard of Review
    The parties do not dispute the trial court’s factual findings regarding
    what Neff did or did not do. 1 Instead, they disagree as to the standard for
    removing a public officer under the Indiana Constitution and the Removal
    Statute. This disagreement concerning the meaning of our Constitution
    and statutes presents us with a question of law, which we review de novo.
    Horton v. State, 
    51 N.E.3d 1154
    , 1157 (Ind. 2016). See also State v. McRoberts,
    
    207 Ind. 293
    , 298–300, 
    192 N.E. 428
    , 430–31 (1934) (reviewing the trial
    court’s legal conclusions in an appeal of a removal proceeding de novo). 2
    Discussion and Decision
    Although public officials are normally voted in and out of office, our
    Constitution provides ways to remove an official outside of an election in
    certain circumstances. See Ind. Const. art. 6, §§ 7–8. One such way is
    through a judicial proceeding pursuant to the Removal Statute. I.C. § 5-8-
    1Neff erroneously characterizes the trial court’s conclusion that she committed misfeasance
    rather than nonfeasance as a factual finding. While this conclusion was surely informed by
    the trial court’s findings regarding Neff’s actions, its determination was a conclusion of law,
    and we owe it no deference.
    2 Both parties contend that, because the trial court entered findings of fact and conclusions of
    law, the clearly erroneous standard of review applies here. However, the clearly erroneous
    standard in this context comes from Trial Rule 52(A). See Gittings v. Deal, 
    109 N.E.3d 963
    , 970
    (Ind. 2018). In at least one case, we relied on the summary nature of proceedings under the
    Removal Statute in stating that “the ordinary rules of civil procedure do not apply to the
    procedure in the trial court, and no good reason is seen why they should be made to apply
    here.” Beesley v. State, 
    219 Ind. 239
    , 242, 
    37 N.E.2d 540
    , 541 (1941). Because we would review
    the legal issues in this appeal de novo whether we applied Trial Rule 52(A)’s clearly
    erroneous standard or not, compare Horton, 51 N.E.3d at 1157 (noting the general rule that we
    review legal questions de novo) with Gittings, 109 N.E.3d at 970 (noting the rule that, when
    applying Trial Rule 52(A), we review legal questions de novo), we decline to address the
    rule’s applicability on appeal here.
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019                    Page 5 of 14
    1-35. But judicial removal “is an extreme and extraordinary measure,
    intended only for extreme and extraordinary occasions. It is fraught with
    seriousness and a demand for extreme caution both from the standpoint
    of [the person] who prefers the charge and [the person] who listens and
    pronounces judgment.” State ex rel. Ayer v. Ewing, 
    231 Ind. 1
    , 16, 
    106 N.E.2d 441
    , 447 (1952) (Emmert, J., concurring) (citation omitted). As a
    result, we exercise restraint and caution in considering petitions for
    removal. Bateman v. State, 
    214 Ind. 138
    , 149, 
    14 N.E.2d 1007
    , 1011 (1938)
    (stating that removal “is a matter of serious importance” that “should be
    exercised with caution”).
    With this cautious approach in mind, we consider two related
    questions in this appeal. First, under what circumstances do the Indiana
    Constitution and the Removal Statute allow for the judicial removal of a
    public official? Second, should Neff have been removed? We address
    each question in turn.
    I. The Removal Statute applies only in limited
    situations.
    The judiciary’s removal power originates from two provisions of the
    Indiana Constitution. Article 6, section 7 provides, “All State officers
    shall, for crime, incapacity, or negligence, be liable to be removed from
    office, either by impeachment . . . or by a joint resolution of the General
    Assembly . . . .” Article 6, section 8 states more generally that “[a]ll State,
    county, township, and town officers, may be impeached, or removed from
    office, in such manner as may be prescribed by law.” We have said that
    these two sections should be construed together. McComas v. Krug, 
    81 Ind. 327
    , 333 (1882). Thus, as relevant here, our Constitution provides that
    county, township, and town officers may be impeached, or removed from
    office, for crime, incapacity, or negligence in such manner as the
    legislature may prescribe. 
    Id.
     (construing Article 6, sections 7 and 8).
    While our Constitution lays the general foundation for removal, the
    Removal Statute supplies the specific mechanism applicable here by
    which a public official may be removed. At issue in this case is Subsection
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019    Page 6 of 14
    (a)(2) of the Removal Statute which allows for removal of an officer for
    “refusing or neglecting to perform the official duties pertaining to the
    officer’s office[.]” I.C. § 5-8-1-35(a)(2); accord I.C. § 5-8-1-35(b). When the
    State files an action according to the Removal Statute, the trial court must
    hear the case within twenty days in a summary proceeding, I.C. § 5-8-1-
    35(a), where “the rules of civil procedure have been held
    inapplicable . . . .” State ex rel. Durham v. Marion Circuit Court, 
    240 Ind. 132
    , 139, 
    162 N.E.2d 505
    , 508 (1959) (citing Beesley v. State, 
    219 Ind. 239
    , 
    37 N.E.2d 540
     (1941); State v. Perry Circuit Court, 
    204 Ind. 673
    , 
    185 N.E. 510
    (1933)). Because of the unique nature of the summary proceedings and
    the penalty mandated by the legislature, the Removal Statute must be
    strictly construed in favor of the defendant and not expanded further than
    the legislature has expressly provided. Ayer, 
    231 Ind. at
    5–6, 
    106 N.E.2d at 442
    ; Beesley, 
    219 Ind. at 244
    , 
    37 N.E.2d at 542
    .
    Although the language of Subsection (a)(2) of the Removal Statute has
    remained largely unchanged since the statute’s enactment in 1897, compare
    I.C. § 5-8-1-35 with McRoberts, 
    207 Ind. at 298
    , 
    192 N.E. at 430
     (quoting the
    statute in effect without change since 1897), we have addressed it only a
    handful of times. From these few cases, we can glean a broad rule that
    Subsection (a)(2) may be invoked to remove an officer only if there has
    been “a general failure to perform official duties.” Ayer, 
    231 Ind. at 12
    , 
    106 N.E.2d at 445
    . Supporting this broad rule are three more specific
    guidelines. First, as Subsection (a)(2) uses the plural “official duties”
    when describing a basis for removal, we have said that “a failure to
    perform just one duty required by law is not . . . sufficient” for removal.
    Ayer, 
    231 Ind. at 12
    , 
    106 N.E.2d at 445
     (discussing McRoberts). And until
    proven otherwise, a defendant in a removal action is presumed to have
    carried out his or her duties. See 
    id. at 8
    , 
    106 N.E.2d at 443
    ; McRoberts, 
    207 Ind. at 299
    , 
    192 N.E. at 430
    . Therefore, the State must affirmatively show
    that an officer has failed to perform multiple required duties before that
    officer is subject to removal under the Removal Statute. Second,
    Subsection (a)(2) addresses nonfeasance rather than malfeasance or
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019    Page 7 of 14
    misfeasance. 3 Ayer, 
    231 Ind. at 13
    , 
    106 N.E.2d at 446
    . In other words, the
    statute is not concerned with degrees of failure—only complete failure to
    perform required duties will do. Third, the officer’s nonfeasance must
    have a significant impact on the day-to-day operation of the officer’s
    office. See Bateman, 
    214 Ind. at
    148–49, 
    14 N.E.2d at 1011
     (refusing to allow
    removal for “inconsequential matters”). Nonfeasance of critical or
    essential duties of the office will necessarily have a significant impact on
    the day-to-day operation of the officer’s office and will thus warrant
    removal. On the other hand, nonfeasance of a few ancillary duties will not
    always have an impact large enough to warrant removal. Based on this
    broad rule and its related guidelines, Subsection (a)(2) of the Removal
    Statute does not apply when an officer has done his or her job poorly or
    even improperly; rather, it applies when an officer has effectively not
    done his or her job at all. 4
    While applying the rule and guidelines in previous cases, we provided
    two examples of situations that did not warrant removal and one
    hypothetical example that would. In McRoberts, we held that the alleged
    failure of several members of the Gibson County Council to appropriate
    $300 for the travel expenses of the County Superintendent did not warrant
    removal. 
    207 Ind. at
    295–300, 
    192 N.E. at
    429–31. “The petition . . .
    specifie[d] but one instance where it [was] claimed and alleged that [the
    councilmen] failed to perform the duties of the office[,]” and that was not
    enough to remove them. 
    Id. at 299
    , 
    192 N.E. at 430
    . In Ayer, we held that a
    Hammond Township, Spencer County, trustee could not be removed
    under the Removal Statute for his alleged refusal to consider the
    3Nonfeasance is “[t]he failure to act when a duty to act exists.” Nonfeasance, BLACK’S LAW
    DICTIONARY (10th ed. 2014); see also McRoberts, 
    207 Ind. at 298
    , 
    192 N.E. at 430
     (providing a
    similar definition). Malfeasance is “[a] wrongful, unlawful, or dishonest act[.]” Malfeasance,
    BLACK’S LAW DICTIONARY (10th ed. 2014); see also McRoberts, 
    207 Ind. at 298
    , 
    192 N.E. at 430
    (providing a similar definition). Misfeasance is “[a] lawful act performed in a wrongful
    manner.” Misfeasance, BLACK’S LAW DICTIONARY (10th ed. 2014); see also Ayer, 
    231 Ind. at 20
    ,
    
    106 N.E.2d at 449
     (Emmert, J., concurring) (providing a similar definition).
    4We note that the legislature has provided other tools that could be used to address an
    officer’s performance when removal is not warranted. See, e.g., I.C. ch. 34-27-3 (2018).
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019                   Page 8 of 14
    employment applications of two teachers unless they donated to his
    political campaign. 
    231 Ind. at
    4–5, 8, 
    106 N.E.2d at
    442–443. These
    allegations did not allege a general failure by the trustee to perform the
    official duties of his office, and the Removal Statute did not apply. 
    Id. at 12
    , 
    106 N.E.2d at
    445–46. On the other hand, in both McRoberts and Ayer
    we gave the same hypothetical example of when an officer would be
    subject to removal under the Removal Statute: “where a sheriff closes his
    office and remains away and refuses and neglects to discharge the duties
    thereof, and has no one to perform his official duties.” McRoberts, 
    207 Ind. at 299
    , 
    192 N.E. at 430
    ; Ayer, 
    231 Ind. at 12
    , 
    106 N.E.2d at 445
    . Such a
    complete abandonment of the office “would come squarely within the
    statute.” McRoberts, 
    207 Ind. at 299
    , 
    192 N.E. at 430
    . These three examples
    provide the poles at opposite ends of the wide spectrum of errors and
    failures that could potentially fall within Subsection (a)(2) of the Removal
    Statute. This case, however, falls in between these poles and thus presents
    a much closer question.
    II. Neff’s failures and errors do not rise to the level
    required for removal pursuant to the Removal
    Statute.
    Neff’s case is a particularly close call because she was undeniably
    ineffective in carrying out certain parts of her job. Moreover, her shoddy
    performance cost Yorktown tens of thousands of dollars. Given these
    facts it is not surprising that the local prosecutor would look to the
    Removal Statute to prevent further economic harm. However, a careful
    analysis of Neff’s conduct, as it relates to her official duties as Clerk-
    Treasurer, demonstrates that she was still carrying out the essential
    functions of her job and, thus, did not generally fail to perform her official
    duties.
    Our review of the record and of the applicable statutes reveals at least
    fourteen statutory duties of a town clerk-treasurer. Eleven specific duties
    and one catch-all provision are provided in a single section of the Indiana
    Code dedicated to town clerk-treasurers. This section required Neff to:
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019    Page 9 of 14
    (1) Receive and care for all town money and pay the money out
    only on order of the town legislative body.
    (2) Keep accounts showing when and from what sources the
    clerk-treasurer has received town money and when and to
    whom the clerk-treasurer has paid out town money.
    (3) Prescribe payroll and account forms for all town offices.
    (4) Prescribe the manner in which creditors, officers, and
    employees shall be paid.
    (5) Manage the finances and accounts of the town and make
    investments of town money.
    (6) Prepare for the legislative body the budget estimates of
    miscellaneous revenue, financial statements, and the proposed
    tax rate.
    (7) Maintain custody of the town seal and the records of the
    legislative body.
    (8) Issue all licenses authorized by statute and collect the fees
    fixed by ordinance.
    (9) Serve as clerk of the legislative body by attending its
    meetings and recording its proceedings.
    (10) Administer oaths, take depositions, and take
    acknowledgment of instruments that are required by statute to
    be acknowledged, without charging a fee.
    (11) Serve as clerk of the town court under IC 33-35-3-2, if the
    judge of the court does not serve as clerk of the court or
    appoint a clerk of the court under IC 33-35-3-1.
    (12) Perform all other duties prescribed by statute.
    I.C. § 36-5-6-6(a) (2017). The State did not allege any deficiencies in Neff’s
    performance of these eleven specific duties. Rather, its allegations related
    to three additional duties imposed on town clerk-treasurers by other
    statutes. See I.C. § 36-5-6-6(a)(12) (providing a catch-all provision
    incorporating other duties). These other statutes required Neff to
    “reconcile at least monthly the balance of public funds, as disclosed by
    [her records], with the balance statements provided by the respective
    depositories[,]” I.C. § 5-13-6-1(e), to follow the SBOA’s directions, I.C. § 5-
    11-1-10(2), and to use the systems of accounting and financial reporting
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019    Page 10 of 14
    adopted by the SBOA, I.C. § 5-11-1-21. The State focused on these final
    three duties in this removal proceeding.
    To determine whether Neff’s alleged failures to carry out her duties
    amounted to “a general failure to perform official duties” that would
    subject her to removal, we consider Neff’s duties and actions in light of
    the three specific removal guidelines discussed above. First, an officer
    may be removed under the Removal Statute only for failure to perform
    multiple required duties. Second, the officer’s failures must constitute
    nonfeasance rather than malfeasance or misfeasance. Third, this
    nonfeasance must significantly impact the day-to-day operation of the
    officer’s office. We address each guideline below.
    A. Neff’s failures and errors involved multiple duties.
    The State alleged and the trial court found that Neff’s failures related to
    multiple duties. The State alleged that Neff failed to complete monthly
    account reconciliations, follow the SBOA’s directions, and adopt and use
    the systems of accounting and financial reporting required by the SBOA,
    and the trial court entered findings consistent with these allegations. As
    noted above, each of these relates to a separate duty of a town clerk-
    treasurer. See I.C. §§ 5-13-6-1(e), 5-11-1-10(2), 5-11-1-21. Thus, the first
    guideline in the removal analysis is met.
    B. Neff’s failures and errors resulted in nonfeasance of at
    least one duty, but we need not determine the full
    extent of her nonfeasance.
    While the trial court’s undisputed factual findings support the
    conclusion that Neff committed nonfeasance of at least one specific duty,
    they are less clear regarding whether Neff committed nonfeasance of
    multiple duties. As discussed above, the State alleged, and the trial court
    found, that Neff failed to complete the required reconciliations, follow the
    SBOA’s directions, and adopt and use the accounting and financial
    reporting systems adopted by the SBOA as required in the SBOA Manual.
    Because Neff failed to complete monthly accounting reconciliations when
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019   Page 11 of 14
    she had a duty to do so, she committed nonfeasance of this duty. See
    Nonfeasance, BLACK’S LAW DICTIONARY (10th ed. 2014) (defining
    nonfeasance as “[t]he failure to act when a duty to act exists”). However,
    the trial court’s findings regarding Neff’s response to the SBOA’s
    directions and her adoption and use of the systems required by the SBOA
    Manual are less clear. Compare Appellant’s App. Vol. 2, p. 81 (“Neff did
    not follow [SBOA] directives [and] violated the [SBOA] Manual that
    should have directed her in doing her job . . . .”) with id. at 84 (“Neff is
    making mistakes and not performing up to the standards expected by the
    [SBOA] . . . .”). If Neff wholly failed to act on all the SBOA’s directions
    and failed to adopt and use any of the systems required by the SBOA
    Manual, she would have committed nonfeasance of these duties. But if
    Neff tried to follow the SBOA’s directions and adopt and use the required
    systems but just could not get it all done properly, she would have
    committed misfeasance. See Misfeasance, BLACK’S LAW DICTIONARY
    (defining misfeasance as “[a] lawful act performed in a wrongful
    manner”). We need not resolve this question because, even assuming
    Neff committed nonfeasance in connection with each of these three duties,
    her nonfeasance did not have a significant impact on the operation of her
    office.
    C. Neff’s failures and errors did not have a significant
    impact on the day-to-day operation of her office.
    Neff’s failure to carry out three of her duties did not have a significant
    impact on the day-to-day operation of her office because those duties were
    not essential to the regular functioning of her office. Those three duties—
    completing reconciliations, following the SBOA’s directions, and adopting
    and using certain accounting and financial systems—dealt with
    maintaining proper oversight rather than ensuring the daily functioning
    of her office. In other words, the fact that Neff failed to reconcile accounts
    and follow the SBOA’s directions had no impact on the ability of a
    Yorktown resident to pay his or her water bill. Because Neff’s
    nonfeasance did not have a significant impact on the day-to-day operation
    of her office, the third guideline in the removal analysis is not met, and
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019   Page 12 of 14
    she did not generally fail to perform her official duties. Thus, she was not
    subject to removal. 5
    Our conclusion that Neff’s failures did not significantly impact the day-
    to-day operation of her office is driven home by the many duties she
    presumably did carry out. As an initial matter, we note that Neff holds
    the dual office of Clerk-Treasurer, and her duties include some related to a
    traditional clerk’s role and others related to a traditional treasurer’s role.
    Despite this dual role, the State did not allege that Neff failed to perform
    any of the duties traditionally associated with a clerk, such as recording
    the proceedings of the town’s legislative body or keeping custody of the
    town seal. See I.C. § 36-5-6-6(a)(7), (9). Absent any contrary findings, we
    must presume she fully carried out these duties. See Ayer, 
    231 Ind. at 8
    ,
    
    106 N.E.2d at 443
    ; McRoberts, 
    207 Ind. at 299
    , 
    192 N.E. at 430
    . Further, the
    State did not allege that Neff failed to perform many of the duties
    traditionally associated with a treasurer, such as paying money out only
    on order of the town legislative body, investing the town’s money, or
    preparing budget estimates. See I.C. § 36-5-6-6(a)(1), (5), (6). As noted
    above, without proof otherwise, we presume she performed these duties.
    Thus, we cannot say that there was a “general failure to perform official
    duties.”
    Given all the duties she presumably carried out, Neff is more similar to
    the McRoberts councilmen and the Ayer trustee that were not subject to
    removal than the McRoberts/Ayer hypothetical sheriff that would have
    been. Rather than effectively closing up shop like the hypothetical sheriff,
    Neff continued the daily operation of her office like the councilmen and
    trustee. Although Neff failed to carry out some of her required duties,
    this did not amount to a general failure to carry out her duties as Clerk-
    5We acknowledge that Yorktown spent almost $70,000 to fix the problems Neff’s performance
    caused, and that expenditure may have had a significant impact on Yorktown’s finances
    generally. However, the Removal Statute and our cases require us to focus on the impact of
    Neff’s failures on her office specifically. Thus, while this large, unexpected expense might be
    significant for Yorktown residents, it cannot be significant in our analysis.
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019                 Page 13 of 14
    Treasurer. As such, she is not subject to the extreme and extraordinary
    measure of removal.
    Conclusion
    The judiciary has the power to remove a public official only in extreme
    situations, and we wield this power only after careful and cautious
    consideration. For a public official to be removed pursuant to Subsection
    (a)(2) of the Removal Statute, the State must show that the official has
    generally failed to perform his or her official duties. Here, Neff’s failures
    and errors did not result in such a general failure, so the Removal Statute
    does not apply. Accordingly, we affirm the trial court’s judgment in favor
    of Neff.
    Rush, C.J., and David, Massa, and Slaughter, JJ., concur.
    ATTORNEYS FOR APPELLANT/CROSS-APPELLEE
    Curtis T. Hill, Jr.
    Attorney General of Indiana
    Patricia C. McMath
    Deputy Attorney General
    Indianapolis, Indiana
    ATTORNEY FOR APPELLEE/CROSS-APPELLANT
    Jeffrey M. Heinzmann
    Heinzmann Law Office LLC
    Fishers, Indiana
    Indiana Supreme Court | Case No. 18S-IF-00478 | February 27, 2019   Page 14 of 14
    

Document Info

Docket Number: 18S-IF-478

Citation Numbers: 117 N.E.3d 1263

Filed Date: 2/27/2019

Precedential Status: Precedential

Modified Date: 1/12/2023