ILNews

Bad breakup leads to lawsuit between former associate, firm

Jennifer Nelson
January 1, 2007
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The Indiana Court of Appeals ruled today on a case where a law firm sued its former associate who left, along with several other employees, to join a new firm.

In Kopka, Landau & Pinkus v. Larry Hansen, et al., No49A02-0611-CV-987, Hansen's previous employer, law firm Kopka Landau & Pinkus, appealed two trial court orders -summary judgment in favor of Hansen and judgment in favor of Hansen on the counterclaims against KLP.

Hansen worked as an associate attorney for KLP and was an at-will employee. In September 2000, Hansen quit along with four associates and three support staffers. All those who resigned joined Hansen at the law firm Skiles Hansen Cook & DeTrude, where Hansen became a partner.

KLP filed a complaint of eight counts against Hansen and his new law firm. After a hearing, the trial court granted summary judgment in favor of Hansen and SHCD on all eight counts. Hansen's two counterclaims against KLP - malicious prosecution and compensation and damages to Hansen pursuant to the Wage Payment Statute - were granted in Hansen's favor.

KLP appealed Count 1 of its complaint - breach of fiduciary duty by Hansen - and the judgment in Hansen's favor on his new law firm's claims.

KLP argued Hansen breached his fiduciary duty to KLP when he spoke to other employees about how much money it would take to have them join him at SHCD before leaving KLP. Although he expressed a desire to find positions for the KLP employees at his new firm, there is no evidence that Hansen made formal offers to any KLP employees or his actions constituted anything more than preparation to compete with KLP, so the Court of Appeals affirmed the summary judgment in Hansen's favor on Count 1 of KLP's complaint, wrote Chief Judge John Baker.

The Court of Appeals did reverse the trial court's decision to award damages and attorney fees pursuant to the Wage Payment Statute in Hansen's favor. The money he was owed was a bonus and he eventually received the payment from the firm. Despite the delay, his bonus does not fall under "wages" for purposes of the Wage Payment Statute and he is not entitled to up to double the unpaid wages and attorney fees for not receiving that bonus within a certain time period.

KLP did breach a contract with Hansen owing him the bonus money and Hansen argued that he is entitled to the prejudgment interest on those damages. The Court of Appeals remanded this matter back to the trial court for a calculation of the amount of prejudgment interest to which Hansen is entitled.
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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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