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. @ President Snow, like they really read these comments or have the GUTS to show what is the right thing to do. They are just worrying about planning the next retirement party, the others JUST DO NOT CARE about what is right. Its the Good Ol'Boys - they do not care about the rights of the mother or child, they just care about their next vote, which, from what I gather, the mother left the state of Indiana because of the domestic violence that was going on through out the marriage, the father had three restraining orders on him from three different women, but yet, the COA judges sent a strong message, go ahead men put your women in place, do what you have to do, you have our backs... I just wish the REAL truth could be told about this situation... Please pray for this child and mother that God will some how make things right and send a miracle from above.

  2. I hear you.... Us Christians are the minority. The LGBTs groups have more rights than the Christians..... How come when we express our faith openly in public we are prosecuted? This justice system do not want to seem "bias" but yet forgets who have voted them into office.

  3. Perhaps the lady chief justice, or lady appellate court chief judge, or one of the many female federal court judges in Ind could lead this discussion of gender disparity? THINK WITH ME .... any real examples of race or gender bias reported on this ezine? But think about ADA cases ... hmmmm ... could it be that the ISC actually needs to tighten its ADA function instead? Let's ask me or Attorney Straw. And how about religion? Remember it, it used to be right up there with race, and actually more protected than gender. Used to be. Patrick J Buchanan observes: " After World War II, our judicial dictatorship began a purge of public manifestations of the “Christian nation” Harry Truman said we were. In 2009, Barack Obama retorted, “We do not consider ourselves to be a Christian nation.” Secularism had been enthroned as our established religion, with only the most feeble of protests." http://www.wnd.com/2017/02/is-secession-a-solution-to-cultural-war/#q3yVdhxDVMMxiCmy.99 I could link to any of my supreme court filings here, but have done that more than enough. My case is an exclamation mark on what PJB writes. BUT not in ISC, where the progressives obsess on race and gender .... despite a lack of predicate acts in the past decade. Interested in reading more on this subject? Search for "Florida" on this ezine.

  4. Great questions to six jurists. The legislature should open a probe to investigate possible government corruption. Cj rush has shown courage as has justice Steven David. Who stands with them?

  5. The is an unsigned editorial masquerading as a news story. Almost everyone quoted was biased in favor of letting all illegal immigrants remain in the U.S. (Ignoring that Obama deported 3.5 million in 8 years). For some reason Obama enforcing part of the immigration laws was O.K. but Trump enforcing additional parts is terrible. I have listed to press conferences and explanations of the Homeland Security memos and I gather from them that less than 1 million will be targeted for deportation, the "dreamers" will be left alone and illegals arriving in the last two years -- especially those arriving very recently -- will be subject to deportation but after the criminals. This will not substantially affect the GDP negatively, especially as it will take place over a number of years. I personally think this is a rational approach to the illegal immigration problem. It may cause Congress to finally pass new immigration laws rationalizing the whole immigration situation.

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