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. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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