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COA extends judicial immunity to arbitrators

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The Indiana Court of Appeals affirmed the dismissal of a real estate broker’s action to vacate an arbitration award to another broker. In doing so, the appellate court extended judicial and quasi-judicial immunity to arbitrators and their sponsors.

Real estate broker Ron Droscha challenged the arbitration award of nearly $19,000 in favor of Scott Shepherd. The money was half of the brokers’ commission from a sale of commercial property in which Shepherd represented the seller and Droscha’s firm represented the buyer.

Originally the $37,000 in brokers’ commission was divided equally between the two companies, but Shepherd challenged the split, claiming he was entitled to the whole commission. The first arbitration panel awarded Shepherd nearly $10,000; that order was vacated, and an arbitration panel established by the Fort Wayne Association of Realtors awarded Shepherd the entire amount he wanted.

In Ron Droscha v. Scott Shepherd and Fort Wayne Area Association of Realtors, No. 52A02-1001-PL-26, Droscha filed suit against Shepherd and the association, arguing the proceedings didn’t follow the trial court instructions given when it vacated the original award granted by a different panel. The trial court granted the defendants’ motions to dismiss for failure to state a claim upon which relief could be granted.

The appellate court agreed with the association that the trial court properly dismissed Droscha’s action against it because it has arbitral immunity. Relying on Olson v. Nat. Ass’n of Sec. Dealers, 85 F.3d 381 (8th Cir. 1996), the judges decided to extend judicial and/or quasi-judicial immunity to arbitrators and their sponsors.

Droscha’s claim relates to the association’s appointment of a panel and the panel’s performance of its official decision-making function in addressing the fee dispute. That challenge is to the overall arbitration process and therefore is akin to judicial or quasi-judicial functions subject to immunity, wrote Judge Cale Bradford.  

The Court of Appeals also upheld the dismissal of claims against Shepherd, in which Droscha argued, among other things, that the panel didn’t constitute a representative peer panel. There’s no suggestion in the statutes cited by Droscha that noncompliance permits a court to vacate the arbitration award. The panel wasn’t a party to the action at the time of the trial court’s judgment, and Droscha failed to allege that the orders were introduced as an exhibit or otherwise used to inform the arbitration panel. The judges also didn’t find the panel committed misconduct that prejudiced Droscha’s rights to warrant judicial relief.
 

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  1. I will continue to pray that God keeps giving you the strength and courage to keep fighting for what is right and just so you are aware, you are an inspiration to those that are feeling weak and helpless as they are trying to figure out why evil keeps winning. God Bless.....

  2. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  3. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  4. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  5. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

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