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Reprimand issued for ALJ in IURC-Duke scandal

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A former administrative law judge with the Indiana Utility Regulatory Commission has been reprimanded by the Indiana Supreme Court, which ruled this week that a harsher sanction was unwarranted because he’d already been punished enough for seeking a job with Duke Energy while making rulings concerning the utility.

The reprimand for Scott Storms is appropriate, justices wrote, because the Indiana Ethics Commission fined him $12,000 and barred him from future state employment. Storms “has already suffered considerable penalties for his misconduct,” justices wrote in the disciplinary case In the Matter of Scott Storms, 49S00-1311-DI-747.

Duke hired Storms then fired him when accusations of ethical breaches arose. Ethics complaints clouded IURC decisions after the allegations came to light and resulted in criminal charges against former IURC director Thomas Lott Hardy. Former Gov. Mitch Daniels fired Hardy after the revelations.

Hardy was charged with a Class D felony count of official misconduct that was dismissed last year, but the state has sought to appeal that decision. Hardy was accused of lobbying Duke to hire Storms and having an ex parte communication with the company about its Edwardsport power plant in 2010.

The Indiana Court of Appeals upheld later IURC rulings against Duke that were issued when rate matters were revisited after the alleged improprieties came to light.

Justices ruled Storms violated Profession Rule of Conduct 1.11(d), which generally prohibits a lawyer serving as a public employee from negotiating for private employment with anyone “involved as a party or as lawyer for a party in a matter in which the lawyer is participating.”

In the unanimous order, Chief Justice Brent Dickson wrote for the court that discipline might have been more severe had the Disciplinary Commission not agreed to the reprimand.

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  1. Hail to our Constitutional Law Expert in the Executive Office! “What you’re not paying attention to is the fact that I just took an action to change the law,” Obama said.

  2. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  3. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  4. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  5. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

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