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Judges uphold contempt order against attorney

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A Morgan Circuit judge had jurisdiction to order a Unionville attorney to pay $75,000 to the county clerk after finding the attorney in contempt, the Indiana Court of Appeals ruled Tuesday.

In the case In Re: The Order of Contempt Against Craig Benson, Martinsville Depot, Inc., and SBS Enterprises, Inc. v. Co-Alliance, LLP, No. 55A04-1010-CC-646, Craig Benson appealed the trial court’s finding that he was in contempt of court orders by distributing funds in 2010 that were to be held in his account. Martinsville Depot Inc. and SBS Enterprises were represented by Benson in a complaint filed by Co-Alliance seeking money for fuel that it had provided to Depot. The court ordered that proceeds from sales of assets from the defendants should be held until the court decides what should happen to those proceeds.

A sale happened in February 2010, and funds were deposited into Benson’s escrow account. Despite the court order, Benson distributed $75,000 to creditors and himself for attorney fees. After the distributions, Benson filed a motion for partial relief to be allowed to distribute some funds, but that was denied.

Several months later, SBS and Depot filed for protection under Chapter 7 of the United States Bankruptcy Code and proceedings against SBS and Depot were stayed by the trial court. Co-Alliance then filed an unverified motion for contempt against Benson, and later filed a similar amended verified motion for contempt. The trial court found Benson in contempt and ordered he pay the $75,000 to the Morgan County Clerk and that he be jailed until he paid the money. He paid the amount owed to the clerk.

Benson attempted to have the contempt petition dismissed because the original contempt petition was unverified. It appears the parties decided to have the trial judge rule on the original motion, but even if the court erred by proceeding on this motion, any error didn’t affect Benson’s substantial rights, ruled the appellate court. As a result of the amended contempt motion, the trial court had before it almost identical verified allegations against Benson, so the essential purpose of the verification requirement was satisfied, wrote Judge Michael Barnes.

Also, the trial court did have subject matter jurisdiction to order the payment of $75,000 for contempt even though the bankruptcy court had previously stayed the proceedings. The money the trial court ordered him to pay wasn’t proceeds from the defendants’ sale and property of the bankruptcy estate, but was Benson’s personal money and it was damages resulting from his contempt. The funds at issue here aren’t subject to the bankruptcy court’s jurisdiction, wrote the judge.

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  1. My daughters' kids was removed from the home in March 2015, she has been in total compliance with the requirements of cps, she is going to court on the 4th of August. Cps had called the first team meeting last Monday to inform her that she was not in compliance, by not attending home based therapy, which is done normally with the children in the home, and now they are recommending her to have a psych evaluation, and they are also recommending that the children not be returned to the home. This is all bull hockey. In this so called team meeting which I did attend for the best interest of my child and grandbabies, I learned that no matter how much she does that cps is not trying to return the children and the concerns my daughter has is not important to cps, they only told her that she is to do as they say and not to resist or her rights will be terminated. I cant not believe the way Cps treats people knowing if they threaten you with loosing your kids you will do anything to get them back. My daughter is drug free she has never put her hands on any of her children she does not scream at her babies at all, but she is only allowed to see her kids 6 hours a week and someone has to supervise. Lets all tske a stand against the child protection services. THEY CAN NO LONGER TAKE CHILDREN FROM THERE PARENTS.

  2. Planned Parenthood has the government so trained . . .

  3. In a related story, an undercover video team released this footage of the government's search of the Planned Parenthood facilities. https://www.youtube.com/watch?v=ZXVN7QJ8m88

  4. Here is an excellent movie for those wanting some historical context, as well as encouragement to stand against dominant political forces and knaves who carry the staves of governance to enforce said dominance: http://www.copperheadthemovie.com/

  5. Not enough copperheads here to care anymore, is my guess. Otherwise, a totally pointless gesture. ... Oh wait: was this done because somebody want to avoid bad press - or was it that some weak kneed officials cravenly fear "protest" violence by "urban youths.."

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