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Judges affirm attorney fees from State Farm’s ‘groundless’ lawsuit

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A car dealership accused of playing a role in a car fire that destroyed four cars and part of a man’s home is entitled to the more than $12,000 in attorney fees awarded to it after State Farm’s negligence lawsuit was dismissed. The Indiana Court of Appeals noted the insurer’s refusal to dismiss the claim despite knowing the dealership was not at fault for the fire.

Kenneth Burkhart, insured through State Farm Fire & Casualty Co., filed a claim with State Farm after his 2006 GMC truck caught fire while parked in his garage. The fire engulfed the garage, the truck and three other cars, and a portion of his house. Burkhart said the last people to enter the engine compartment were employees of H.H. Niswander. The dealership had performed an oil change on his truck about a week before the fire.

State Farm instituted an investigation and Timothy Herndon and Walter Herndon, of Herndon & Associates, determined the fire was a result of oil leaking from the engine and into the ignition. It was classified as an accidental fire. The report was concluded ten months before State Farm filed its complaint.

During a deposition of State Farm’s experts, Timothy Herndon explained that he believed the oil change had nothing to do with the fire and it was due to a manufacturing defect. State Farm refused to dismiss the case. The dealership filed a motion to dismiss and sought sanctions and fees. The trial court dismissed it with prejudice and ordered State Farm to pay $12,503.39 in attorney fees incurred by H.H. Niswander, noting that State Farm knew prior to filing the suit that the dealership did not cause the fire.

In State Farm Fire & Casualty Company a/s/o Kenneth Burkhart v. H.H. Niswander, 35A02-1307-CT-638, State Farm appealed the order to pay attorney fees. But the Court of Appeals affirmed, finding State Farm’s lawsuit was groundless.

“Based on our standard of review, we cannot find with a definite and firm conviction that the trial court made a mistake in determining that State Farm pursued the lawsuit against H.H. Niswander without evidence that H.H. Niswander was negligent or caused the fire,” Chief Judge Nancy Vaidik wrote.
 

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  1. "So we broke with England for the right to "off" our preborn progeny at will, and allow the processing plant doing the dirty deeds (dirt cheap) to profit on the marketing of those "products of conception." I was completely maleducated on our nation's founding, it would seem. (But I know the ACLU is hard at work to remedy that, too.)" Well, you know, we're just following in the footsteps of our founders who raped women, raped slaves, raped children, maimed immigrants, sold children, stole property, broke promises, broke apart families, killed natives... You know, good God fearing down home Christian folk! :/

  2. Who gives a rats behind about all the fluffy ranking nonsense. What students having to pay off debt need to know is that all schools aren't created equal and students from many schools don't have a snowball's chance of getting a decent paying job straight out of law school. Their lowly ranked lawschool won't tell them that though. When schools start honestly (accurately) reporting *those numbers, things will get interesting real quick, and the looks on student's faces will be priceless!

  3. Whilst it may be true that Judges and Justices enjoy such freedom of time and effort, it certainly does not hold true for the average working person. To say that one must 1) take a day or a half day off work every 3 months, 2) gather a list of information including recent photographs, and 3) set up a time that is convenient for the local sheriff or other such office to complete the registry is more than a bit near-sighted. This may be procedural, and hence, in the near-sighted minds of the court, not 'punishment,' but it is in fact 'punishment.' The local sheriffs probably feel a little punished too by the overwork. Registries serve to punish the offender whilst simultaneously providing the public at large with a false sense of security. The false sense of security is dangerous to the public who may not exercise due diligence by thinking there are no offenders in their locale. In fact, the registry only informs them of those who have been convicted.

  4. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  5. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

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