ILNews

Sanctioned firm settles on legal fees

Back to TopCommentsE-mailPrintBookmark and Share

An Indianapolis law firm sanctioned for the conduct of some of its attorneys in an environmental cleanup case won't appeal the sanction and has agreed to pick up some of the opposing counsel's legal tab as part of a settlement agreement.

With a settlement reached late Friday, Bose McKinney & Evans has agreed to pay an unspecified amount of legal fees as a result of the June 5 order from U.S. District Judge Larry McKinney, who determined the firm should be sanctioned for essentially helping its client abuse the discovery process, failing to correct misleading or false statements made by the client, and not properly turning over to the court or opposing counsel key documents relating to the case.

Notice of a settlement was filed with the court on Friday, saying the parties, "resolved the issues between them, including the relief the Court granted to 1100 West as against BME."

In a statement from managing partner Kendall C. Crook, he says the firm is pleased with being able to resolve its differences in a "mutually satisfactory manner," but doesn't delve into specifics of the agreement reached in 1100 West LLC v. Red Spot Paint & Varnish Co., 1:05-CV-1670.

The case involves a business's 7-acre site in the Evansville area that it claims was heavily contaminated with toxic chemicals from the nearby Red Spot property. The plaintiff asked the judge to order the removal of all the chemicals near its property and for the company to stop discharging hazardous and solid waste from its nearby property, and a central issue in the case was whether particular chemicals were used at the site. Red Spot denied that they were stored or used there, but Judge McKinney determined otherwise based on discovery initially withheld from the court and opposing counsel.

Specifically, the judge's order focused on former Bose attorneys Richard VanRheenen and Amy Cueller, who firm leaders asked to leave late last year because of this case. A declaration submitted by Crook shows that VanRheenen voluntarily resigned his partnership effective Jan. 1, 2009, and remained on a limited contract attorney basis until Feb. 20 to transition his practice and clients to a new firm; Cueller declined to resign and was fired Jan. 6.

Others mentioned include partner Kathleen Lucas, who remains at the firm; former associate Matthew Klein and former partner Jan Nelson, both of whom are no longer listed on the firm's Web site; and an unnamed paralegal who assisted on the case.

Aside from the firm sanctions, Judge McKinney entered a default judgment against Red Spot and determined the company had forfeited the right to have these issues determined on the merits.

In his 66-page order, Judge McKinney wrote that 1100 West was entitled to attorneys' fees and costs from all discovery dating back to May 23, 2006, and for all the costs associated with the sanctions' motions and hearings. Bose was ordered to pay half those costs, splitting the tab with Red Spot.

While details of the settlement are confidential, the costs are expected to run into the millions. Firm spokesman Roger Harvey, senior vice president of Bose Public Affairs Group, declined to discuss details but said this settlement resolves all issues so there will be no appeal by the firm.

"We won't let this define us," he said. "The true test of an organization is its ability to recover from an unfortunate situation like this, and we're certainly committed to doing that."

Court documents show that Red Spot has argued that Bose McKinney & Evans collected almost $3 million in legal fees on this case and that the firm threw its former client "under the bus" in an effort to distract the court from its own misconduct, while the firm says that Red Spot's continued evasion of the truth shows that the client was the problem, not the attorneys.

Lead counsel for 1100 West, Tom Barnard with Taft Stettinius & Hollister, said that this settlement doesn't end the case against Red Spot, which has new counsel after Bose McKinney & Evans stepped down from that role earlier this year. The company is now represented by attorneys at Indianapolis-based Ice Miller and two out-of-state firms, Michigan's Butzel Long and Chicago's Foley & Lardner.

Barnard says that Judge McKinney's order allows 1100 West to move forward with a remediation plan and determine what the cost will be for cleanup. That proposed plan is due Aug. 4, and a show cause hearing is set for Nov. 4.

He declined to discuss specifics of the settlement or comment on sanctions against the entire firm - something that plaintiffs did not request from the judge in this case. But he said he hopes the default judgment and fees sanction against Red Spot will move the case along.

"This has been a remarkably frustrating process for me as a trial lawyer, and it was unfortunate for us to have to seek sanctions," he said. "But sometimes those are the only mechanisms left to obtain justice."

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. "Am I bugging you? I don't mean to bug ya." If what I wrote below is too much social philosophy for Indiana attorneys, just take ten this vacay to watch The Lego Movie with kiddies and sing along where appropriate: https://www.youtube.com/watch?v=etzMjoH0rJw

  2. I've got some free speech to share here about who is at work via the cat's paw of the ACLU stamping out Christian observances.... 2 Thessalonians chap 2: "And we also thank God continually because, when you received the word of God, which you heard from us, you accepted it not as a human word, but as it actually is, the word of God, which is indeed at work in you who believe. For you, brothers and sisters, became imitators of God’s churches in Judea, which are in Christ Jesus: You suffered from your own people the same things those churches suffered from the Jews who killed the Lord Jesus and the prophets and also drove us out. They displease God and are hostile to everyone in their effort to keep us from speaking to the Gentiles so that they may be saved. In this way they always heap up their sins to the limit. The wrath of God has come upon them at last."

  3. Did someone not tell people who have access to the Chevy Volts that it has a gas engine and will run just like a normal car? The batteries give the Volt approximately a 40 mile range, but after that the gas engine will propel the vehicle either directly through the transmission like any other car, or gas engine recharges the batteries depending on the conditions.

  4. Catholic, Lutheran, even the Baptists nuzzling the wolf! http://www.judicialwatch.org/press-room/press-releases/judicial-watch-documents-reveal-obama-hhs-paid-baptist-children-family-services-182129786-four-months-housing-illegal-alien-children/ YET where is the Progressivist outcry? Silent. I wonder why?

  5. Thank you, Honorable Ladies, and thank you, TIL, for this interesting interview. The most interesting question was the last one, which drew the least response. Could it be that NFP stamps are a threat to the very foundation of our common law American legal tradition, a throwback to the continental system that facilitated differing standards of justice? A throwback to Star Chamber’s protection of the landed gentry? If TIL ever again interviews this same panel, I would recommend inviting one known for voicing socio-legal dissent for the masses, maybe Welch, maybe Ogden, maybe our own John Smith? As demographics shift and our social cohesion precipitously drops, a consistent judicial core will become more and more important so that Justice and Equal Protection and Due Process are yet guiding stars. If those stars fall from our collective social horizon (and can they be seen even now through the haze of NFP opinions?) then what glue other than more NFP decisions and TRO’s and executive orders -- all backed by more and more lethally armed praetorians – will prop up our government institutions? And if and when we do arrive at such an end … will any then dare call that tyranny? Or will the cost of such dissent be too high to justify?

ADVERTISEMENT