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. Especially I would like to see all the republican voting patriotic good ole boys to stop and understand that the wars they have been volunteering for all along (especially the past decade at least) have not been for God & Jesus etc no far from it unless you think George Washington's face on the US dollar is god (and we know many do). When I saw the movie about Chris Kyle, I thought wow how many Hoosiers are just like this guy, out there taking orders to do the nasty on the designated bad guys, sometimes bleeding and dying, sometimes just serving and coming home to defend a system that really just views them as reliable cannon fodder. Maybe if the Christians of the red states would stop volunteering for the imperial legions and begin collecting welfare instead of working their butts off, there would be a change in attitude from the haughty professorial overlords that tell us when democracy is allowed and when it isn't. To come home from guarding the borders of the sandbox just to hear if they want the government to protect this country's borders then they are racists and bigots. Well maybe the professorial overlords should gird their own loins for war and fight their own battles in the sandbox. We can see what kind of system this really is from lawsuits like this and we can understand who it really serves. NOT US.... I mean what are all you Hoosiers waving the flag for, the right of the president to start wars of aggression to benefit the Saudis, the right of gay marriage, the right for illegal immigrants to invade our country, and the right of the ACLU to sue over displays of Baby Jesus? The right of the 1 percenters to get richer, the right of zombie banks to use taxpayer money to stay out of bankruptcy? The right of Congress to start a pissing match that could end in WWIII in Ukraine? None of that crud benefits us. We should be like the Amish. You don't have to go far from this farcical lawsuit to find the wise ones, they're in the buggies in the streets not far away....

  2. Moreover, we all know that the well heeled ACLU has a litigation strategy of outspending their adversaries. And, with the help of the legal system well trained in secularism, on top of the genuinely and admittedly secular 1st amendment, they have the strategic high ground. Maybe Christians should begin like the Amish to withdraw their services from the state and the public and become themselves a "people who shall dwell alone" and foster their own kind and let the other individuals and money interests fight it out endlessly in court. I mean, if "the people" don't see how little the state serves their interests, putting Mammon first at nearly every turn, then maybe it is time they wake up and smell the coffee. Maybe all the displays of religiosity by American poohbahs on down the decades have been a mask of piety that concealed their own materialistic inclinations. I know a lot of patriotic Christians don't like that notion but I entertain it more and more all the time.

  3. If I were a judge (and I am not just a humble citizen) I would be inclined to make a finding that there was no real controversy and dismiss them. Do we allow a lawsuit every time someone's feelings are hurt now? It's preposterous. The 1st amendment has become a sword in the hands of those who actually want to suppress religious liberty according to their own backers' conception of how it will serve their own private interests. The state has a duty of impartiality to all citizens to spend its judicial resources wisely and flush these idiotic suits over Nativity Scenes down the toilet where they belong... however as Christians we should welcome them as they are the very sort of persecution that separates the sheep from the wolves.

  4. What about the single mothers trying to protect their children from mentally abusive grandparents who hide who they truly are behind mounds and years of medication and have mentally abused their own children to the point of one being in jail and the other was on drugs. What about trying to keep those children from being subjected to the same abuse they were as a child? I can understand in the instance about the parent losing their right and the grandparent having raised the child previously! But not all circumstances grant this being OKAY! some of us parents are trying to protect our children and yes it is our God given right to make those decisions for our children as adults!! This is not just black and white and I will fight every ounce of this to get denied

  5. Mr Smith the theory of Christian persecution in Indiana has been run by the Indiana Supreme Court and soundly rejected there is no such thing according to those who rule over us. it is a thought crime to think otherwise.