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COA upholds award of attorney fees but orders damages amount reduced against construction company

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A claimed scrivener’s error on the Secretary of State’s website should not be held against the couple filing the lawsuit against a company, the Indiana Court of Appeals held. The error involving an incorrect address on the website was made by an employee of the company being sued more than two years before the suit was filed.

A representative of Storm Damage Specialists of America solicited Porter County couple Melissa and Michael Johnson to repair their roof for suspected hail damage. The Johnsons agreed to hire the company and their insurer sent a check for $4,224.78 to the company to perform the work. SDS never repaired the roof and refused to refund the insurance proceeds.

The Johnsons sued SDS and sent the summons to the name and Gary address listed on the Secretary of State’s website. SDS never replied or appeared in court, so the trial court granted default judgment to the Johnsons. They received $23,936.94 for compensatory damages, treble damages, prejudgment interest, costs, and reasonable attorney fees, plus statutory interest at 8 percent per annum.

After the judgment was entered, SDS filed a motion to correct error, citing lack of service and an error in the judgment amount as grounds to set aside the award. It claimed an accountant sent the wrong address to the SOS’s office two years prior to the Johnsons’ lawsuit, but never corrected the error. The Johnsons had no reason to believe the address was an error because someone signed the return receipt at the address.

“The Johnsons complied with our rules of trial procedure when they sent the complaint and summons to Storm Damage Specialists’ acknowledged registered agent at the address it provided to the Indiana Secretary of State,” Judge John Baker wrote in Storm Damage Specialists of America d/b/a America's SDS Construction, Inc. v. Melissa A. Johnson and Michael B. Johnson, 64A03-1209-CT-386. “In our view, the fact that the registering of that particular address is claimed to be a scrivener’s error on the part of Storm Damage Specialists’ accountant is a burden that should be born by the company.”

But the amount of damages should be reduced, the judges ruled and the Johnsons conceded, because the trial court erred in quadrupling rather than trebling the compensatory damages that were awarded. The damage award should be reduced by $4,224.78. The amount of attorney fees awarded was affirmed.

 

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  1. Hail to our Constitutional Law Expert in the Executive Office! “What you’re not paying attention to is the fact that I just took an action to change the law,” Obama said.

  2. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  3. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  4. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  5. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

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