ILNews

Supreme Court divided on whether man's claims against bank can proceed

Back to TopCommentsE-mailPrintBookmark and Share

Two Indiana justices believed that a man’s actual fraud and tortious interference with contract claims against Old National Bank should go to trial, an opposite conclusion reached by their fellow justices.

Justices Frank Sullivan, Mark Massa and Steven David – who authored the majority opinion – found there wasn’t sufficient evidence presented by James Purcell to withstand a motion for judgment on the evidence by the bank on his claims of fraud, deception, and tortious interference with a contract.

Purcell had a security interest in Midwest Fulfillment, a company he established in 1998, that required if the company’s assets-to-liabilities ratio fell below a certain level for three consecutive months, Midwest Fulfillment would be in default and Purcell would gain 100 percent ownership of the company. He previously had sold his majority interest in the company.

Midwest got a line of credit from Old National Bank, which required Purcell to sign a subordination agreement making his security interest in the assets subordinate to Old National’s interest. Both Purcell and Old National received monthly financial statements from the company. A couple of years later, the company went out of business and Old National liquidated the assets.

Purcell sued Midwest, and during interrogation of Joseph Stein, a majority owner of the company, Stein testified as though an employee of Old National instructed Stein to make adjustments to the company’s balance sheets. These adjustments kept the company above the threshold ratio. Purcell then sued Old National for negligence, constructive fraud, actual fraud, deception and tortious interference with a contract. At this trial, Stein’s interrogatory answer was entered as proof that the bank employee instructed Stein to knowingly make false statements. Both the bank employee and Stein denied that the balance sheets were falsified at the bank’s direction.

The trial court granted Old National’s motion for judgment on the evidence on all claims, finding the bank owed no duty to Purcell. The Court of Appeals affirmed in part and reversed with respect to the fraud, deception, and tortious interference with a contract claims.

The majority affirmed the trial court, finding Purcell didn’t produce sufficient evidence to withstand the motion for judgment on the evidence on the claims of fraud, deception, and tortuous interference.

Justice Robert Rucker and Chief Justice Brent Dickson dissented regarding these claims because the majority affirmed the lower court on grounds the trial court didn’t reach, Rucker wrote. Also, the conflicting inferences from the evidence before the jury on Stein’s testimony precluded judgment on the evidence on these two claims.

The justices did all agree with the lower court’s judgment on the evidence regarding Purcell’s claims of negligence and constructive fraud. Purcell’s relationship with the bank as a subordinate creditor didn’t give rise to a duty of care required to prove these claims. They also affirmed the denial of attorney fees for Old National.
 

ADVERTISEMENT

  • link
    The link is in there - the word "sued" was hyperlinked. I've hopefully made the link more obvious.
  • Case links
    Are you no longer linking the actual cases to your articles? Did I miss something?

    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
    ADVERTISEMENT
    Subscribe to Indiana Lawyer
    1. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

    2. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

    3. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

    4. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

    5. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

    ADVERTISEMENT