ILNews

COA split over whether damages are punitive

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals released a divided opinion Wednesday on the issue of whether damages awarded under the Indiana Sales Representative Act are punitive in nature. The majority affirmed the trial court’s ruling that damages awarded under the Act would be subject to the evidentiary standard, limitation and diversion provisions of Indiana’s punitive damages statute.

Ralph Andrews sued Mor/Ryde International for breach of contract, alleging the company materially breached the agreement and had done so in an “egregious manner.” Andrews worked as an independent sales representative who performed services on behalf of the company from 1996 until Mor/Ryde terminated the agreement in 2008.

The trial court ruled that the ISRA applied to Andrews’ claim, and it issued an order following a pleading from Mor/Ryde that the exemplary damages awarded under the Act are punitive in nature, and subject to the procedures outlined in I.C. 34-51-3-2 and -6, the punitive damages statutes, including the requirement of proof by clear and convincing evidence.

On interlocutory appeal in Ralph Andrews v. MOR/Ryde International, Inc., 20A04-1303-PL-141, Judges Rudolph Pyle III and Terry Crone affirmed the trial court, noting that the term “exemplary” as used in the Act, as it refers to damages, is also defined as “punitive damages” by Black’s Law Dictionary. The majority held that if the Legislature intended that the damages awarded under the Act were to be something other than punitive in nature, it could have specifically exempted those damages from the requirements of I.C. 35-51-3-1, et. seq., Pyle wrote.

“Therefore, when a plaintiff has alleged bad faith under the Act, the plaintiff must show bad faith by clear and convincing evidence, and any exemplary damages awarded are subject to the requirements of I.C. § 35-51-3-1 et. seq.,” he wrote.

Judge Michael Barnes dissented because he didn’t believe that the general statutes and principles governing “punitive” damages control an express statutory award of “exemplary” damages under the Act, even if those two words are sometimes used interchangeably.

“The treble damages are a matter of statutory entitlement, not common law discretion. If the legislature had intended these exemplary damages to be controlled by punitive damages limitations, it could have expressly said so, but it did not,” he wrote.
 

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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  2. My situation was hopeless me and my husband was on the verge of divorce. I was in a awful state and felt that I was not able to cope with life any longer. I found out about this great spell caster drlawrencespelltemple@hotmail.com and tried him. Well, he did return and now we are doing well again, more than ever before. Thank you so much Drlawrencespelltemple@hotmail.comi will forever be grateful to you Drlawrencespelltemple@hotmail.com

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT