ILNews

COA affirms Vectren, Citizens lack of standing

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
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."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Based on several recent Indy Star articles, I would agree that being a case worker would be really hard. You would see the worst of humanity on a daily basis; and when things go wrong guess who gets blamed??!! Not biological parent!! Best of luck to those who entered that line of work.

  2. I was looking through some of your blog posts on this internet site and I conceive this web site is rattling informative ! Keep on posting . dfkcfdkdgbekdffe

  3. Don't believe me, listen to Pacino: https://www.youtube.com/watch?v=z6bC9w9cH-M

  4. Law school is social control the goal to produce a social product. As such it began after the Revolution and has nearly ruined us to this day: "“Scarcely any political question arises in the United States which is not resolved, sooner or later, into a judicial question. Hence all parties are obliged to borrow, in their daily controversies, the ideas, and even the language, peculiar to judicial proceedings. As most public men [i.e., politicians] are, or have been, legal practitioners, they introduce the customs and technicalities of their profession into the management of public affairs. The jury extends this habitude to all classes. The language of the law thus becomes, in some measure, a vulgar tongue; the spirit of the law, which is produced in the schools and courts of justice, gradually penetrates beyond their walls into the bosom of society, where it descends to the lowest classes, so that at last the whole people contract the habits and the tastes of the judicial magistrate.” ? Alexis de Tocqueville, Democracy in America

  5. Attorney? Really? Or is it former attorney? Status with the Ind St Ct? Status with federal court, with SCOTUS? This is a legal newspaper, or should I look elsewhere?

ADVERTISEMENT