Indiana treasurer, wife sue Morgan County nonprofits over disputed Martinsville building deal

Title: Indiana treasurer, wife sue Morgan County nonprofits over disputed Martinsville building deal URL Source: https://indianacapitalchronicle.com/2026/04/14/indiana-treasurer-wife-sue-morgan-county-nonprofits-over-disputed-martinsville-building-deal/ Published Time: 2026-04-14T10:00:54+00:00 Markdown Content: A dispute over a downtown Martinsville building has escalated into a lawsuit filed by Indiana State Treasurer Daniel Elliott, who claims he and his wife were promised ownership of the property after investing roughly $250,000 in improvements. But the Elliots allege that promise was never fulfilled after a group of Morgan County nonprofits reneged on the agreement. The complaint, filed April 8 in Morgan County Superior Court, names the Morgan County Public Library Foundation, the Morgan County Veterans Memorial and the Morgan County History Center and Museum as defendants. In the lawsuit, Elliott, his wife Laura Elliott and their business, The Source CoWork LLC, allege breach of contract, unjust enrichment and other claims tied to a long-running arrangement involving a building at 75 and 77 E. Washington St. in Martinsville. The outcome of the case could hinge on whether the court finds an enforceable agreement existed — and, if so, whether the Elliots are entitled to ownership of the property or compensation for their alleged quarter-million dollars invested. _The iconic Morgan County Courthouse is reflected in the storefront window of the disputed building on East Washington Street in Martinsville. An easel sits just inside the window, highlighting the location as the ‘future home of the Morgan County History Center and Museum.’ (Photo by Stephen Crane/Morgan County Correspondent)_ The Elliots contend a binding agreement was reached with the library that entitled them to ownership of the property after meeting certain conditions. But no agreement was included as an exhibit in the filed suit. “There’s no agreement attached (to the complaint). That’s gotta tell you something,” Dale Coffey, an attorney representing the library foundation, told the Indiana Capital Chronicle. When asked whether any contract had been formalized between the parties, Coffey said flatly that “no, there is none.” In a statement provided after publication, Elliott disputed that characterization, saying the agreement was clear even if not formally documented. “My wife, Laura, and I had an agreement with the Morgan County Public Library to renovate a dilapidated property owned by the Library,” Elliott said in a statement provided by his legal team. “Because the library had no interest in maintaining the unoccupied property, we reached an agreement where we would take it over and rehabilitate the building.” “Over several years,” he added, “we invested significant time and over $200,000 of our funds into improving the property based on the understanding that we would take ownership.” Daniel Elliot, who has served as Indiana State Treasurer since 2023, is up for reelection this year. No hearings have yet been scheduled in the case. It’s not the first time the Elliots have turned to the courts over a property dispute. In 2020, the couple filed a separate lawsuit involving neighboring landowners in Morgan County that included an adverse possession claim. That case was later resolved through a settlement agreement and dismissed in 2022. ## ‘Promises made’ According to the new complaint, the contract dispute traces back to 2015, when Elliott offered to purchase the Washington Street property from the library. Instead, the library allegedly proposed a different arrangement: if the Elliotts formed a nonprofit entity, occupied and rehabilitated the building and made space available for community use as a free co-working space, the property would be conveyed to that entity “for no additional consideration.” The lawsuit states the Elliotts accepted those terms, took possession of the property in 2015 and later formed The Source CoWork LLC. _Story continues below._ From that point through March 2025, the plaintiffs said they occupied the building, leased part of it to a tenant and made repairs and improvements. “In reliance upon the promises made,” the complaint states, the plaintiffs “took possession of the property … and made improvements to the property” worth approximately $250,000. The lawsuit alleges that the arrangement unraveled in late 2024, however, when the library transferred the property — without notice to the Elliots — to the Morgan County Veterans Memorial. That transfer, dated September 2024, was followed by another in December 2024, when the Veterans Memorial conveyed the property to the Morgan County History Center and Museum, also for no consideration — meaning no money or other compensation was exchanged for the transfer of ownership — according to attached deeds. Days later, on Dec. 30, 2024, the museum notified the Elliots that it now owned the building and demanded they vacate. The Elliots said they surrendered possession on March 30, 2025. ## Questions remain Their lawsuit alleges the library breached its agreement by failing to transfer the property as promised and instead conveying it to another entity. It further claims the subsequent recipients of the property were aware of the alleged agreement when they accepted title. The Elliots are now asking the court to order the property transferred to their entity, The Source CoWork LLC. Specifically, the plaintiffs are seeking a court order requiring the defendants to follow through on the alleged agreement by transferring ownership of the property, rather than simply paying damages. _While the interior is largely empty, save a smattering of random office furniture, some of the historic details of the building can still be seen. The Elliotts allege they put $250,000 into the building. (Photo by Stephen Crane/Morgan County Correspondent)_ Alternatively, the Elliots asked for financial compensation equal to the value of the improvements made to the property — about $250,000 — under an unjust enrichment claim. No list of improvements was provided in the complaint. The complaint also asks the court to reform the deed and quiet title in favor of the plaintiffs. In question, though, is the nature of the alleged agreement between Elliott and the library, including whether it was formalized in writing. Coffey held that the absence of a written agreement could be significant under Indiana law, which generally requires real estate transactions to be in writing. “Anytime that you are alleging you have an agreement for the sale of real estate … it needs to be in writing,” he said, referencing the state statute which stipulates that contracts for the sale of goods priced at $500 or more must generally be in writing and signed to be enforceable. Elliott, however, told the Capital Chronicle that he and his wife were “blindsided” by the property transfers and maintained the agreement was understood by both sides. “We were blindsided when we discovered the Library transferred ownership of the property to the Morgan County Veteran’s group, who then gave it to the Morgan County History Center & Museum without our knowledge or consent,” he said. “We learned of this decision through a newspaper article.” Coffey said the defendants are preparing to challenge the lawsuit in its early stages, including a likely motion to dismiss. He said a formal response is expected to be filed with the court within the next 20 to 30 days. Coffey also indicated the library foundation may pursue its own claims against the plaintiffs. “We’re most likely going to file a counterclaim as well,” Coffey said, describing the lawsuit as potentially “a baseless, groundless claim.” Elliott said efforts to resolve the dispute outside of court have been unsuccessful. “Attempts were unsuccessful in resolving the dispute, leaving us no choice but to file a lawsuit,” he said. “We were taken advantage of.” He added that his family believes the nonprofits unfairly benefited from their investment in the property. “We believe it is unjust for a large public institution to benefit from the years of investment our family made, and then walk away from the agreement without explanation,” Elliot said. ## Prior litigation The lawsuit follows earlier legal action by the Elliots involving a dispute with their neighbors in Morgan County. In that 2020 case, the couple sought to claim ownership of a strip of land through adverse possession, alleging they had “maintained, used, and controlled” the property as their own. That case also included claims of trespass, intimidation and emotional distress against neighboring landowners. Court filings show the dispute centered on a narrow strip of land between neighboring properties. The Elliots argued their long-term use of the land entitled them to legal ownership, while also accusing neighbors of harassment and interference during the dispute. The dispute was ultimately resolved through a settlement agreement, and the case was dismissed with prejudice in 2022. _Morgan County Correspondent Editor Stephen Crane contributed reporting._ _UPDATE: This story has been updated with a statement from Daniel Elliott provided after publication._