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COA reverses treble damages in business deal gone bad

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A trial court erred in awarding treble damages to an Indiana man who entered into a business venture with a North Carolina couple that ended up costing him more than $1 million in money owed to him, the Indiana Court of Appeals concluded Thursday.

E.J. Agnew and Golden-AGI LLC sued Joel and Ruby Bowden and their companies, Golden Companies Inc. and Golden Purchasing and Staffing, after learning that he was owed profits from the Bowdens from a joint business venture they entered into to develop business with U.S. auto and truck producers and arrange for the production and delivery of parts from overseas manufacturers.

They entered into the 50/50 ownership deal in 2004 that created Golden AGI LLC. They were to split profits from a deal with a manufacturer in India, but Agnew later earned the Bowdens, who lived in North Carolina, used money from the India deal to pay off debts in a separate deal supplying parts to Cummins. He also learned that Golden AGI income and expenses were comingled with that of other Golden entities and that the Bowdens never intended to operate GAGI as a functional business entity.

Agnew sued for money damages in 2009; the Bowdens sought dismissal for lack of personal jurisdiction, which was denied. At the bench trial, Agnew’s expert David DeWitt, a licensed CPA, testified regarding the profits derived from the India deal. He said Agnew’s share was at least $1,754,278, which is the amount the trial court awarded to Agnew. The trial court also awarded treble damages based on the conclusion the Bowdens committed conversion. The Bowdens appealed.

“The Bowdens’ wrongful failure to distribute net revenue in accordance with the 50/50 agreement constitutes a failure to pay a debt, not criminal conversion. The money withheld from Agnew was not a separate, specifically identifiable chattel,” Judge Ezra Friedlander wrote in Joel Bowden, Ruby Bowden, Golden Companies, Inc., and Golden Purchasing and Staffing, Inc. v. E.J. Agnew and Golden-AGI, LLC, 49A05-1301-PL-23. As such, the trial court erred in awarding treble damages under I.C. 34-24-3-1. The judges ordered the judgment reduced to the original $1.75 million awarded to Agnew.

The Court of Appeals found the trial court’s reliance on DeWitt’s expert testimony regarding damages was not erroneous and that the Indiana courts have personal jurisdiction over the North Carolina couple in their individual capacities.
 

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  1. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  2. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  3. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  4. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  5. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

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