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 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.”
A statement being prepared by Elliott’s legal team was not received before publication.
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.
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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.
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.
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.”
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.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
