ILNews

Supreme Court examines Indiana's blacklisting statute

Back to TopCommentsE-mailPrintBookmark and Share

In declaring precedent from 1904 bad law, the Indiana Supreme Court has determined that individuals who’ve voluntarily left employment can pursue a claim against their former employers under the state’s blacklisting statute.

But the justices also determined that attorney fees are not an element of compensatory damages under that same statute and that an employer’s suit against a former employee to protect trade secrets isn’t a basis for recovery under that law.

Justices addressed in Loparex, LLC v. MPI Release Technologies, LLC, Gerald Kerber, and Stephen Odders, No. 94S00-1109-CQ-546, three certified questions from U.S. Judge Jane Magnus-Stinson in the Southern District of Indiana involving a federal case filed by Illinois-based Loparex LLC that makes products such as nametags, window films and roofing underlayment.

The case involves two employees who were fired or resigned in 2008 and 2009 and had non-competition agreements to not take any of their knowledge of “trade secrets” for one year. The company accused them of taking materials and knowledge and tried to stop other companies from hiring them, while the two employees filed answers and counterclaims accusing Loparex of blacklisting them in violation of Indiana law. In September 2011, Magnus-Stinson certified a trio of issues to the state justices after she denied Loparex’s motions to dismiss the counterclaims and granted summary judgment to the two employees.

Recapping the history of the Indiana Blacklisting Statute that was enacted near the start of the 20th century, Chief Justice Randall Shepard recounted statutory and constitutional changes as well as evolving caselaw on the blacklisting statute and also the Indiana Constitution’s requirement that laws be confined to a single subject.

When the Indiana Supreme Court decided Wabash Railroad Co. v. Young, 162 Ind. 102, 69 N.E. 1003 (1904), it held that a portion of the blacklisting statute extending to employees not discharged ran afoul of the Indiana Constitution. But Shepard wrote that Young is no longer good law because of rulings and constitutional changes to the single subject requirement through the years.

The justices also determined that nothing in the language, history or nature of the blacklisting statute points to anything but the American rule that attorney fees may not be recovered as an element of compensatory damages for a plaintiff in a blacklisting claim. On the third question, the justices determined the blacklisting statute can’t be used as a basis for recovery in an unsuccessful suit aimed at protecting alleged trade secrets relating to a non-compete agreement.

 

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. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  2. My situation was hopeless me and my husband was on the verge of divorce. I was in a awful state and felt that I was not able to cope with life any longer. I found out about this great spell caster drlawrencespelltemple@hotmail.com and tried him. Well, he did return and now we are doing well again, more than ever before. Thank you so much Drlawrencespelltemple@hotmail.comi will forever be grateful to you Drlawrencespelltemple@hotmail.com

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT