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Court reduces $1.4M judgment in dispute over work done at Honda plant

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The Indiana Court of Appeals has found that Greensburg-based Custom Conveyor Inc. is only entitled to recover about a tenth of the original $1.4 million awarded to it on breach of contract and warranty claims the company made against a subcontractor regarding work on the Indiana Honda plant.

Honda hired CCI, which specializes in installing conveyor systems in factories, to install the necessary systems in the plant it was building in Greensburg. CCI subcontracted computer programming and electrical control box work to L.H. Controls Inc. There were issues with L.H. completing work on time. The delays resulted in pushing the conveyor installation back three months, but that did not affect the opening of the factory.

L.H. sought payment for unpaid invoices from CCI, which it did not pay, so L.H. filed a mechanic’s lien against the Honda plant as well as a personal liability notice against Honda. CCI eventually paid a portion of the invoices, withholding more than $80,000 in chargebacks. L.H. sued Honda and CCI in 2009 for breach of contract and to enforce the personal liability notice against Honda and foreclose the mechanic’s lien. Honda was eventually dismissed and CCI counterclaimed for breach of contract and warranty and indemnification.

The trial court found L.H. breached its contract with CCI in 12 ways, had a contractual obligation to indemnify CCI, and breached warranties. It ultimately awarded CCI damages against L.H. in the amount of $1,409,896.97, which later went up to $1,467,587.61 after factoring in attorney fees and costs.

In L.H. Controls, Inc. v. Custom Conveyor, Inc., 16A05-1111-PL-606, the Court of Appeals reversed the lost profit damages of $1,144,470 awarded to CCI, the $133,328.53 in attorney fees, and the award of damages of $82,184.10 for CCI’s chargebacks, as well as $5,259.38 in set-off for L.H. the court allowed against the chargebacks amount.

Judge Michael Barnes wrote the appellate court could not discern any conceivable basis upon which to affirm the award of lost profit damages against L.H. in any amount. CCI is entitled to seek to make a profit on projects it completes, but there is nothing in the trial court’s findings or the record that would support shifting that expectation onto the back of L.H., he continued.

There is no plain language in the master construction agreement’s indemnity provision that clearly and unambiguously states L.H. would be required to indemnify CCI for all costs associated with any cause of action asserted even by parties to the agreement in a breach of contract action between the parties, the judges held. L.H. would not be required to pay CCI’s attorney fees.

The trial court also erred in including the $82,000 in chargebacks.

The judges did affirm $8,005.86 in costs related to CCI’s removal of the mechanic’s lien against Honda’s property. That amount combined with the damages L.H. did not challenge on appeal – which totaled $104,858.60 – means CCI is only entitled to $112,864.46.

 

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  1. Actually, and most strikingly, the ruling failed to address the central issue to the whole case: Namely, Black Knight/LPS, who was NEVER a party to the State court litigation, and who is under a 2013 consent judgment in Indiana (where it has stipulated to the forgery of loan documents, the ones specifically at issue in my case)never disclosed itself in State court or remediated the forged loan documents as was REQUIRED of them by the CJ. In essence, what the court is willfully ignoring, is that it is setting a precedent that the supplier of a defective product, one whom is under a consent judgment stipulating to such, and under obligation to remediate said defective product, can: 1.) Ignore the CJ 2.) Allow counsel to commit fraud on the state court 3.) Then try to hide behind Rooker Feldman doctrine as a bar to being held culpable in federal court. The problem here is the court is in direct conflict with its own ruling(s) in Johnson v. Pushpin Holdings & Iqbal- 780 F.3d 728, at 730 “What Johnson adds - what the defendants in this suit have failed to appreciate—is that federal courts retain jurisdiction to award damages for fraud that imposes extrajudicial injury. The Supreme Court drew that very line in Exxon Mobil ... Iqbal alleges that the defendants conducted a racketeering enterprise that predates the state court’s judgments ...but Exxon Mobil shows that the Rooker Feldman doctrine asks what injury the plaintiff asks the federal court to redress, not whether the injury is “intertwined” with something else …Because Iqbal seeks damages for activity that (he alleges) predates the state litigation and caused injury independently of it, the Rooker-Feldman doctrine does not block this suit. It must be reinstated.” So, as I already noted to others, I now have the chance to bring my case to SCOTUS; the ruling by Wood & Posner is flawed on numerous levels,BUT most troubling is the fact that the authors KNOW it's a flawed ruling and choose to ignore the flaws for one simple reason: The courts have decided to agree with former AG Eric Holder that national banks "Are too big to fail" and must win at any cost-even that of due process, case precedent, & the truth....Let's see if SCOTUS wants a bite at the apple.

  2. I am in NJ & just found out that there is a judgment against me in an action by Driver's Solutions LLC in IN. I was never served with any Court pleadings, etc. and the only thing that I can find out is that they were using an old Staten Island NY address for me. I have been in NJ for over 20 years and cannot get any response from Drivers Solutions in IN. They have a different lawyer now. I need to get this vacated or stopped - it is now almost double & at 18%. Any help would be appreciated. Thank you.

  3. I am in NJ & just found out that there is a judgment against me in an action by Driver's Solutions LLC in IN. I was never served with any Court pleadings, etc. and the only thing that I can find out is that they were using an old Staten Island NY address for me. I have been in NJ for over 20 years and cannot get any response from Drivers Solutions in IN. They have a different lawyer now. I need to get this vacated or stopped - it is now almost double & at 18%. Any help would be appreciated. Thank you.

  4. Please I need help with my class action lawsuits, im currently in pro-se and im having hard time findiNG A LAWYER TO ASSIST ME

  5. Access to the court (judiciary branch of government) is the REAL problem, NOT necessarily lack of access to an attorney. Unfortunately, I've lived in a legal and financial hell for the past six years due to a divorce (where I was, supposedly, represented by an attorney) in which I was defrauded of settlement and the other party (and helpers) enriched through the fraud. When I attempted to introduce evidence and testify (pro se) in a foreclosure/eviction, I was silenced (apparently on procedural grounds, as research I've done since indicates). I was thrown out of a residence which was to be sold, by a judge who refused to allow me to speak in (the supposedly "informal") small claims court where the eviction proceeding (by ex-brother-in-law) was held. Six years and I can't even get back on solid or stable ground ... having bank account seized twice, unlawfully ... and now, for the past year, being dragged into court - again, contrary to law and appellate decisions - by former attorney, who is trying to force payment from exempt funds. Friday will mark fifth appearance. Hopefully, I'll be allowed to speak. The situation I find myself in shouldn't even be possible, much less dragging out with no end in sight, for years. I've done nothing wrong, but am watching a lot of wrong being accomplished under court jurisdiction; only because I was married to someone who wanted and was granted a divorce (but was not willing to assume the responsibilities that come with granting the divorce). In fact, the recalcitrant party was enriched by well over $100k, although it was necessarily split with other actors. Pro bono help? It's a nice dream ... but that's all it is, for too many. Meanwhile, injustice marches on.

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