ILNews

Peace of mind restored: Cemetery trust case results in multi-million dollar settlement

Michael W. Hoskins
January 1, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
It was bad enough that Cecilia Means had to watch as her grandmother's casket was pulled from a waterlogged gravesite where it had been buried for 17 years.

On that day in March 2007, the southeast Indiana woman stood covering her mouth and sobbing as workers pulled the stainless steel casket from several feet of muddy brown water and a steady stream of water leaked from where the lid joined the sides. That day seemed liked a nightmare at the 40-acre cemetery where her grandparents, two uncles, and cousins are buried.

But that wasn't the extent of the problems at Grandview Memorial Gardens, which sits just outside the small town of Madison north of the Ohio River and Kentucky state line. It gets worse.

Not only did other families witness similar situations with their loved ones, but cemetery financial woes were mounting at the same time that plunged a local community into crisis-mode and brought an Indianapolis law firm into their lives.

Wanting to be near family at Grandview when the time came, Means and her husband had two decades earlier decided to prepare for the inevitable and buy burial plots, caskets, grave markers, and opening and closing services for themselves. It was supposed to provide peace of mind, but she later learned in 2006 that the trust fund where her money was supposed to be placed was gone. Her peace of mind vanished.

As many as 3,000 people faced similar concerns and were on the losing end of a $3-$4 million shortfall, and it took an 18-month legal battle to recapture what they'd all lost. Their ordeal was a nightmare, but it's evolved into a legal victory that could be seen as a framework for others ongoing throughout the state and country.

"This has been a local community crisis," said Indianapolis attorney Richard Shevitz with Cohen & Malad, who represented Means as the sole plaintiff in the class action cemetery trust case. "They wanted peace of mind and that's why they bought these contract services, but that peace of mind was shattered when they found out there wasn't any money and they might have to buy those goods again. We're pleased to be able to give them back what was taken away."

Means volunteered at the cemetery and developed a non-profit committee to oversee its upkeep and management amid the trouble. She contacted Shevitz and Cohan & Malad associate Vess Miller to help navigate the legal waters leading up to this lawsuit, which was filed a month after she witnessed her grandmother's grave being disturbed.

The April 2007 suit alleged that four banks serving as trustees and previous Grandview owners mishandled millions from the cemetery's trust fund. The fund was established in 1992 and should have had payments accruing since then. Under Indiana law, money paid for funeral expenses can only be disbursed upon death. But the fund had dwindled to next to nothing by the time this lawsuit came, and it's since been completely wiped out.
 No one knows what happened to the money, and that's the subject of an ongoing grand jury investigation by the Jefferson County Prosecutor's Office. The fund vanished through the years as cemetery ownership changed hands - from Grandview Memorial Gardens Inc. up until 1997, to Carriage Funeral Services of Indiana and Carriage Cemetery Services until January 2001, to Madison Funeral Service through 2005, and then to current owner Grandview Memorial Gardens LLC.

The suit accused cemetery owners of failing to properly deposit money collected for burials and funerals into the trust and also of illegally withdrawing funds. The suit also accused the banks of breaching their fiduciary duty by permitting the money to be disbursed and failing to maintain accounts detailing each individual's payments as required by law.

With the trust fund nearly depleted as the lawsuit began, Shevitz says there was a growing fear that plot owners would be forced to pay for their burial services a second time. Now, with the settlement, it appears that won't happen.

"This is a win-win situation and a good thing for this community," he said. "Everyone's been in such an uproar about this, thinking they'd have to pay twice. "(Carriage Funeral Services and the banks) have in our view very much done the right thing and are going to take care of a problem that otherwise would be difficult to take care of."

Miller said the defendants didn't just roll over for this settlement, that it took tens of thousands of dollars to pay for analyzing an estimated 40,000 discovery documents. This agreement isn't an admission of guilt on behalf of Carriage Funeral Services or any the banks, attorneys said. Cohen & Malad will hold an informational meeting in Madison Nov. 2 to discuss details with the plaintiffs, including how Marion Superior Judge Robyn Moberly is expected to give final approval to the settlement in January. In the meantime, attorneys say that the current cemetery owner who inherited the mess in 2005 will likely have to pay for any prepaid burial goods since the fund is gone.

Similar suits alleging administrative and financial mismanagement are being launched nationally against cemetery owners, and attorneys say this case will provide a roadmap for navigating that ongoing and future litigation.

Another case Shevitz and Miller are handling involves Forest Lawn Memorial Gardens in the Greenwood area. The cemetery owners are accused of transferring more than $20 million in cemetery trust funds and spending some of the money on personal expenses. A Marion County classaction suit has been combined with a civil one filed by Indiana Attorney General Steve Carter, and the case is pending in Johnson Circuit Court. A motion to dismiss hearing is set for mid-November and attorneys expect a ruling by the end of the year.

"We think this (Grandview) case is good framework for these types of cases, and it can provide some guidance," Miller said.

While Grandview plaintiffs achieved a victory, defendants still remain in that suit - Madison Funeral Services and Grandview Memorial Gardens have not resolved claims about ownership. An unresolved classaction suit dealing specifically with waterlogged gravesites also remains pending in the Southern District of Indiana, New Albany Division. That case filed in August 2007 is Leathermon v. Grandview Memorial Gardens, et al., 4:07-cv-137, and was removed to federal court from Jefferson Circuit Court because damages could be more than $5 million.

Despite what's left, Means is pleased the nightmare is mostly finished. More than a year after witnessing her grandmother's grave being dug up, she stands near the headstone and points to her plot nearby. Thoughts of the settlement make her smile in the sunlight, even though she wishes it never had gotten to this point.

"We were and are very angry about all of this, about what happened to everyone, to our families, to our plots and caskets, about all the money that's missing," she said. "But this is wonderful and we're very happy with the result." •  
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  2. My situation was hopeless me and my husband was on the verge of divorce. I was in a awful state and felt that I was not able to cope with life any longer. I found out about this great spell caster drlawrencespelltemple@hotmail.com and tried him. Well, he did return and now we are doing well again, more than ever before. Thank you so much Drlawrencespelltemple@hotmail.comi will forever be grateful to you Drlawrencespelltemple@hotmail.com

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT