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COA: Second amended complaint allowed

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A former Steak 'n Shake employee appealed the trial court's dismissal of his claims of defamation and invasion of privacy against the company, which the Indiana Court of Appeals reversed and remanded today.

In William H. Hart v. Walter C. Webster and The Steak-n-Shake Co.,  No. 49A05-0802-CV-47, William Hart filed a complaint against Walter Webster and The Steak 'n Shake Co., claiming defamation and invasion of privacy against both parties as a result of Webster's investigation of allegations that Hart violated the company's gratuity policy and engaged in unethical relationships with vendors. Hart was cleared of any wrongdoing but claims Webster "maliciously communicated" to other employees, vendors, and people who did business with Steak 'n Shake that Hart had engaged in unethical conduct as vice president of purchasing.

He claimed as a result of the "embarrassment, humiliation, and severe emotional and physical distress" he suffered because of the investigation that he became disabled and couldn't work. Steak 'n Shake fired him as a result.

The defendants filed a joint motion to dismiss; Hart filed an amended complaint. The trial court dismissed Hart's amended complaint without prejudice and ordered him to file another complaint within 15 days. The trial court also denied his motion to reconsider the order of dismissal under Trial Rule 12(B)(6). Then, the court granted the defendant's joint motion to reconsider the ruling on a motion to dismiss under T.R. 12(B)(1) and dismissed Hart's complaint in its entirety, with prejudice. However, the court didn't specify whether it was referring to Hart's original complaint, his amended complaint, the second amended complaint he filed, or all three.

The trial court did properly dismiss Hart's original complaint and amended complaint for lack of subject matter jurisdiction because his claims of suffering emotional and physical distress that made him unable to work fell under the Workers' Compensation Act, which must be ruled on by the Workers' Compensation Board, wrote Judge Patricia Riley.

Although it is unclear if the trial court actually did dismiss the second amended complaint, the trial court erred in dismissing it because in it, Hart made no mention of any physical injury, disability, or impairment, so the Workers' Compensation Act wouldn't apply to the second amended complaint. In that one, Hart claimed damages to his personal and business reputation, humiliation, and emotional injuries.

Hart also wasn't precluded from filing his second amended complaint even though the trial court dismissed his previous ones with prejudice. The appellate court remanded to the trial court for further proceedings on Hart's second amended complaint, beginning with an opportunity for Webster and Steak 'n Shake to file a response, wrote the judge.

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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