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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. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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