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Law firm pays $50,000, ending $18M nightmare

January 1, 2008
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An Indianapolis law firm has paid $50,000 to the Indiana Department of Insurance in a deal that extricates it from an $18 million jury verdict stemming from the collapse of a health insurance trust.

The department released Fillenwarth Dennerline Groth & Towe from the massive judgment that a Marion County jury handed down against the law firm two years ago. In return, the firm transferred to the department the bad-faith claims it is pursuing against its malpractice insurer, Alabama-based ProNational Insurance Co.

That's where the real money is, said Doug Webber, chief legal counsel for the department.

"It is our view that the law firm had limited assets," and even those would be difficult to get at if the firm sought bankruptcy court protection, Webber said.

In addition, he said he believes the law firm's bad-faith claims are strong. Fillenwarth Dennerline was hit with the judgment only after the insurer refused the department's offer to settle for a mere $1 million - the maximum amount of the firm's insurance coverage.

The legal tangle stems from the 2002 collapse of the Indiana Construction Industry Trust, which provided health coverage to non-union construction workers. The jury found that Fillenwarth Dennerline partner Frederick Dennerline III, who served as outside counsel for the trust, failed to notify trustees of its growing financial problems. The verdict equaled the amount of unpaid claims due 8,200 Hoosiers after the trust went bust.

Those insurance customers have collected nearly $4 million from other parties that previously settled. Any additional sums the department collects on the bad-faith claims would go to those customers, after attorneys' fees are paid. As a result of the agreement with Fillenwarth Dennerline, "We have a much better chance to recover the amounts necessary to make these 8,200 people whole," Webber said.

Joseph Chapelle, an attorney for ProNational, could not be reached. The insurer previously has denied acting improperly.
Check out the July 9 - July 22, 2008, edition of Indiana Lawyer or the Indiana Lawyer Web site Wednesday for more information about this suit.
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  1. 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.."

  2. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

  3. No second amendment, pro life, pro traditional marriage, reagan or trump tshirts will be sold either. And you cannot draw Mohammed even in your own notebook. And you must wear a helmet at all times while at the fair. And no lawyer jokes can be told except in the designated protest area. And next year no crucifixes, since they are uber offensive to all but Catholics. Have a nice bland day here in the Lego movie. Remember ... Everything is awesome comrades.

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  5. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

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