ILNews

COA affirms $17.9 million judgment against firm

Michael W. Hoskins
January 1, 2008
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Two years ago, a jury hit an Indianapolis law firm with a $17.9 million verdict after it found the firm liable for a failed health plan that left 8,200 Hoosier with unpaid medical bills.

The Indiana Court of Appeals affirmed an appeal from that general jury verdict and judgment in favor of the state's insurance commissioner, Jim Atterholt. The 37-page opinion, which includes a two-page dissent from Judge Carr Darden, comes in Frederick W. Dennerline III, and Fillenwarth Dennerline Groth & Towe v. Jim Atterholt, Insurance Commissioner of the State of Indiana as Liquidator of Indiana Construction Industry Trust, No. 49A04-0610-CV-557.

A Marion Circuit Court jury handed down the $17,991,043 verdict in August 2006 after a six-day trial. The jury found the then 43-year-old firm completely liable for not notifying trustees about growing financial losses in the Indiana Construction Industry Trust, created by a dozen construction-related companies to cover nonunion employees. The health plan went insolvent in 2002 after two executives were imprisoned for embezzling money from the plan. While the Indiana Department of Insurance settled with all other original defendants sued, the law firm was the only one of about 80 defendants to fight the state and go to trial, attorneys said at the time.

The firm raised six issues on appeal that included preserving error about a legal malpractice expert's testimony, and whether the trial court abused its discretion in ruling on discovery motions and one of the four legal theories used relating to legal malpractice liability. The appellate panel majority - authoring Judge Terry Crone and Judge Melissa May - affirmed on all the issues.

"We agree with the Commissioner that the $17.9 million verdict is supported by ample evidence that the ICIT's demise was caused by Dennerline's failure to advise the trustees of their duty under Article 14.01 of the trust agreement to 'cease and terminate' the trust ..." Judge Crone wrote.

"In sum, we conclude that the trial court did not abuse its discretion in denying Dennerline's motion to correct error as to fault allocation," the opinion states. "Accordingly, we affirm in all respects."

But in his separate opinion that agreed with the majority on all but one issue raised, Judge Darden dissented regarding the jury's finding on Dennerline's 100 percent fault.

"Essentially, I am unable to support the approval of what I believe to be a windfall to a State agency," he wrote, noting that he supports the argument that Atterholt lacks authority to recover the $7.6 million previously collected through liquidation. He added that the agency should be able to collect any legal costs, including attorneys' fees and interest, for prosecuting this action and any unsettled claims.
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  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

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