Justices base ruling on level of intent

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The Indiana Supreme Court has determined that not enough evidence of intent existed for a judge to grant summary judgment for a bank alleging a business owner committed fraud.

In Harold J. Klinker v. First Merchants Bank, N.A., No. 01S04-1107-PL-438, the justices reversed an Adams Circuit Court ruling on fraud claims because genuine issues of material fact exist about whether the defendant acted with the requisite criminal intent.

The case involves a used car dealership manager in Decatur. In December 2008, First Merchants Bank discovered that 31 vehicles that the bank had loaned purchase money for weren’t in Harold Klinker’s possession and some had been transferred to another dealer. The bank sued Klinker on fraud.

When the bank moved for summary judgment, Klinker filed an affidavit stating that only 22 vehicles were “missing.” But the trial court refused to consider the document, reasoning that it had not been properly designated and that no genuine issue of material fact existed about the vehicles. The judge also determined Klinker had defaulted and acted with intent to commit fraud and granted summary judgment to the bank along with attorney fees and treble damages.

The Court of Appeals held the trial court had erred in refusing to consider Klinker’s, affidavit, but that summary judgment was proper because the affidavit consisted of self-serving statements unsupported by real evidence.

On transfer, the justices found that the bank’s evidence is not sufficient to warrant summary judgment on the element of intent. The trial court could have reasonably determined that only a simple breach of contract occurred rather than criminal fraud, regardless of how strong the evidence may have appeared, Justice Frank Sullivan wrote. The justices made a similar finding in regard to whether Klinker acted with the requisite intent under the state’s bank fraud statute.

The justices emphasized that they’re only determining whether summary judgment was proper, not the strength of the fraud evidence presented by the bank. The case is remanded for further proceedings at the trial level.



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  1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...