ILNews

COA affirms Vectren, Citizens lack of standing

Jennifer Nelson
January 1, 2007
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The Indiana Court of Appeals affirmed the dismissal of a breach-of-contract complaint filed by Vectren Energy and Citizens By-products Coal Co. against Executive Risk Specialty Insurance, finding the two companies never had standing to file the complaint because they are trying to fix alleged wrongdoings done to another company, rather than themselves.

In Vectren Energy Marketing & Service, Inc., et al. v. Executive Risk Specialty Insurance Co., ProLiance Energy, LLC, et al., 82A05-0702-CV-115, Vectren and Citizens appealed the trial court's order granting Executive Risk Specialty Insurance Company's (ERISC) motion to dismiss its complaint pursuant to Indiana Trial Rule 12(B)(6). Vectren and Citizens argue they have standing to pursue the complaint, their claim is not barred by collateral estoppel, and they have sufficiently pleaded a breach of contract claim against ERISC to withstand the motion to dismiss.

Vectren and Citizens are the only two members of ProLiance, an energy trading company. All three companies have a policy through ERSIC. The City of Huntsville, Ala., filed a complaint against ProLiance and two of its employees, and a jury found ProLiance and the two employees liable for violations, fraud, breach of contract, and other issues. Based on the finding of the jury and the final judgment of $32 million in favor of the city, ERSIC denied coverage to ProLiance and the employees.

ProLiance's policy states that no coverage will be available for loss when a claim was brought by knowing, intentional, dishonest, fraudulent, or criminal wrongful acts by the insured.

ERISC filed a complaint against ProLiance and the two employees in the U.S. District Court for the Southern District of Indiana. In response, Vectren and Citizens filed a motion to intervene in the federal lawsuit to protect their purported interests. Vectren and Citizens were not named as defendants in the original lawsuit by Huntsville, they did not attempt to intervene to protect their interests in the policy, nor was any judgment entered against them.

ERISC filed a motion to dismiss Vectren's complaint stating the two companies didn't have standing to assert any claims against ERISC; the trial court dismissed Vectren and Citizen's complaint.

Chief Judge John Baker wrote in the opinion that the court found no authority establishing that Vectren and Citizen's have standing to pursue a breach-of-contract claim against ERISC based on contractual duties owed to ProLiance. Vectren and Citizens did not suffer a loss as defined by the policy as a result of the City of Huntsville's lawsuit against ProLiance, nor has either company received a claim and incurred damages, judgments, or settlements as a result of a claim. Vectren and Citizens have no personal stake in the outcome of the litigation between ERISC and ProLiance because "any loss which Vectren and Citizens will purportedly suffer would merely be derivative as a result of their relationship to ProLiance."
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  1. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

  2. Family court judges never fail to surprise me with their irrational thinking. First of all any man who abuses his wife is not fit to be a parent. A man who can't control his anger should not be allowed around his child unsupervised period. Just because he's never been convicted of abusing his child doesn't mean he won't and maybe he hasn't but a man that has such poor judgement and control is not fit to parent without oversight - only a moron would think otherwise. Secondly, why should the mother have to pay? He's the one who made the poor decisions to abuse and he should be the one to pay the price - monetarily and otherwise. Yes it's sad that the little girl may be deprived of her father, but really what kind of father is he - the one that abuses her mother the one that can't even step up and do what's necessary on his own instead the abused mother is to pay for him???? What is this Judge thinking? Another example of how this world rewards bad behavior and punishes those who do right. Way to go Judge - NOT.

  3. Right on. Legalize it. We can take billions away from the drug cartels and help reduce violence in central America and more unwanted illegal immigration all in one fell swoop. cut taxes on the savings from needless incarcerations. On and stop eroding our fourth amendment freedom or whatever's left of it.

  4. "...a switch from crop production to hog production "does not constitute a significant change."??? REALLY?!?! Any judge that cannot see a significant difference between a plant and an animal needs to find another line of work.

  5. Why do so many lawyers get away with lying in court, Jamie Yoak?

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