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Reimbursement to estate should be proportional

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The Indiana Supreme Court ruled today that a proportional allocation of proceeds from a pre-trial settlement would be best way to reimburse an estate for funeral and burial expenses.

The high court accepted In the Matter of the Supervised Administration of the Estate of Lawrence W. Inlow, deceased; Anita Inlow v. Jason L. Inlow, et al., No. 29S02-0902-CV-89, to answer the question: To what extent is a decedent's estate entitled to payment from a pre-trial settlement of a wrongful-death action in which the settlement doesn't allocate specifically between different types of damages.

Lawrence Inlow was killed in 1997 when he was struck in the head by a blade of a company helicopter. At the time of his death, he had no will.

Inlow's widow, Anita, paid $284,000 in funeral and burial costs, and then sought and received reimbursement from the estate. After a settlement was reached in a wrongful-death action in federal court, the estate sought reimbursement of that money in 2004. The Hamilton County trial court ordered in 2007 that Inlow's estate receive full reimbursement of the $284,000.

Anita appealed, believing Indiana Code Section 34-23-1-1 requires the payment of funeral and burial expenses from a wrongful-death award to an estate only when the award specifies what amount should go toward funeral expenses. If the award is able to be used to reimburse the estate, she argued she and her dependent son will receive no portion of those monies.

The defendants in this case, the personal representative of Inlow's estate and his four adult children from a previous marriage, argued the statute requires the damages to be used first to reimburse the estate for the funeral and burial costs incurred whether or not a portion of the damages award was designated for these expenses.

A split Indiana Court of Appeals upheld the trial court order, but the Supreme Court disagreed today. In its decision, Justice Brent Dickson wrote, "To impose upon all pre-trial wrongful death settlements a requirement that the net proceeds must first be allocated to medical, hospital, funeral, and burial expenses before distribution for other damages could frequently, as here, be inequitable and create an undesired counter-incentive to seek settlement."

The justices also disagreed with Anita's argument that none of the settlement could be paid to the estate for funeral or burial expenses because it didn't specify any of that recovered money was to be used for that purpose.

"It is quite apparent from the language of the Act that, in creating a statutory cause of action for wrongful death, the legislature intended particular attention to the payment of medical, hospital, funeral, and burial expenses," the justice wrote. "To extend this legislative objective to pre-trial settlements, a proportional allocation appears most equitable."

The court should direct payment from a pre-trial wrongful-death settlement the part of the medical, hospital, funeral, and burial expenses that corresponds to the ratio of the total of such expenses to the estimated total damages sustained.

The case is remanded to the trial court for a determination of the portion of the funeral and burial expenses that will be reimbursed to the estate from the wrongful-death settlement.

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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