ILNews

COA affirms Vectren, Citizens lack of standing

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
The Indiana Court of Appeals affirmed the dismissal of a breach-of-contract complaint filed by Vectren Energy and Citizens By-products Coal Co. against Executive Risk Specialty Insurance, finding the two companies never had standing to file the complaint because they are trying to fix alleged wrongdoings done to another company, rather than themselves.

In Vectren Energy Marketing & Service, Inc., et al. v. Executive Risk Specialty Insurance Co., ProLiance Energy, LLC, et al., 82A05-0702-CV-115, Vectren and Citizens appealed the trial court's order granting Executive Risk Specialty Insurance Company's (ERISC) motion to dismiss its complaint pursuant to Indiana Trial Rule 12(B)(6). Vectren and Citizens argue they have standing to pursue the complaint, their claim is not barred by collateral estoppel, and they have sufficiently pleaded a breach of contract claim against ERISC to withstand the motion to dismiss.

Vectren and Citizens are the only two members of ProLiance, an energy trading company. All three companies have a policy through ERSIC. The City of Huntsville, Ala., filed a complaint against ProLiance and two of its employees, and a jury found ProLiance and the two employees liable for violations, fraud, breach of contract, and other issues. Based on the finding of the jury and the final judgment of $32 million in favor of the city, ERSIC denied coverage to ProLiance and the employees.

ProLiance's policy states that no coverage will be available for loss when a claim was brought by knowing, intentional, dishonest, fraudulent, or criminal wrongful acts by the insured.

ERISC filed a complaint against ProLiance and the two employees in the U.S. District Court for the Southern District of Indiana. In response, Vectren and Citizens filed a motion to intervene in the federal lawsuit to protect their purported interests. Vectren and Citizens were not named as defendants in the original lawsuit by Huntsville, they did not attempt to intervene to protect their interests in the policy, nor was any judgment entered against them.

ERISC filed a motion to dismiss Vectren's complaint stating the two companies didn't have standing to assert any claims against ERISC; the trial court dismissed Vectren and Citizen's complaint.

Chief Judge John Baker wrote in the opinion that the court found no authority establishing that Vectren and Citizen's have standing to pursue a breach-of-contract claim against ERISC based on contractual duties owed to ProLiance. Vectren and Citizens did not suffer a loss as defined by the policy as a result of the City of Huntsville's lawsuit against ProLiance, nor has either company received a claim and incurred damages, judgments, or settlements as a result of a claim. Vectren and Citizens have no personal stake in the outcome of the litigation between ERISC and ProLiance because "any loss which Vectren and Citizens will purportedly suffer would merely be derivative as a result of their relationship to ProLiance."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I have dealt with more than a few I-465 moat-protected government attorneys and even judges who just cannot seem to wrap their heads around the core of this 800 year old document. I guess monarchial privileges and powers corrupt still ..... from an academic website on this fantastic "treaty" between the King and the people ... "Enduring Principles of Liberty Magna Carta was written by a group of 13th-century barons to protect their rights and property against a tyrannical king. There are two principles expressed in Magna Carta that resonate to this day: "No freeman shall be taken, imprisoned, disseised, outlawed, banished, or in any way destroyed, nor will We proceed against or prosecute him, except by the lawful judgment of his peers or by the law of the land." "To no one will We sell, to no one will We deny or delay, right or justice." Inspiration for Americans During the American Revolution, Magna Carta served to inspire and justify action in liberty’s defense. The colonists believed they were entitled to the same rights as Englishmen, rights guaranteed in Magna Carta. They embedded those rights into the laws of their states and later into the Constitution and Bill of Rights. The Fifth Amendment to the Constitution ("no person shall . . . be deprived of life, liberty, or property, without due process of law.") is a direct descendent of Magna Carta's guarantee of proceedings according to the "law of the land." http://www.archives.gov/exhibits/featured_documents/magna_carta/

  2. I'm not sure what's more depressing: the fact that people would pay $35,000 per year to attend an unaccredited law school, or the fact that the same people "are hanging in there and willing to follow the dean’s lead in going forward" after the same school fails to gain accreditation, rendering their $70,000 and counting education worthless. Maybe it's a good thing these people can't sit for the bar.

  3. Such is not uncommon on law school startups. Students and faculty should tap Bruce Green, city attorney of Lufkin, Texas. He led a group of studnets and faculty and sued the ABA as a law student. He knows the ropes, has advised other law school startups. Very astute and principled attorney of unpopular clients, at least in his past, before Lufkin tapped him to run their show.

  4. Not that having the appellate records on Odyssey won't be welcome or useful, but I would rather they first bring in the stray counties that aren't yet connected on the trial court level.

  5. Aristotle said 350 bc: "The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.

ADVERTISEMENT