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

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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.


  • 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?

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    1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

    2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

    3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

    4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

    5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...