ILNews

COA reverses treble damages in business deal gone bad

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Today, I want to use this opportunity to tell everyone about Dr agbuza of agbuzaodera(at)gmail. com, on how he help me reunited with my husband after 2 months of divorce.My husband divorce me because he saw another woman in his office and he said to me that he is no longer in love with me anymore and decide to divorce me.I seek help from the Net and i saw good talk about Dr agbuza and i contact him and explain my problem to him and he cast a spell for me which i use to get my husband back within 2 days.am totally happy because there is no reparations and side-effect. If you need his help Email him at agbuzaodera(at)gmail. com

  2. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  3. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  4. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

  5. I am the mother of the child in this case. My silence on the matter was due to the fact that I filed, both in Illinois and Indiana, child support cases. I even filed supporting documentation with the Indiana family law court. Not sure whether this information was provided to the court of appeals or not. Wish the case was done before moving to Indiana, because no matter what, there is NO WAY the state of Illinois would have allowed an appeal on a child support case!

ADVERTISEMENT