Treble damages under Sales Rep Act not subject to Punitive Damages Act

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The Indiana Supreme Court unanimously held Thursday that treble damages under the Sales Representative Act are not subject to the Punitive Damages Act.

The justices granted transfer to and reversed the trial court’s ruling which agreed with Mor/Ryde International Inc. that the punitive damages restrictions apply to an action pending against the company. Ralph Andrews sued the company after Mor/Ryde terminated his contract with the company. Ralph worked as an independent commissioned sales rep for the company for 12 years and argued that it owed him unpaid commissions. He sought recovery under the Sales Representative Act, which allows for companies to be held liable for exemplary damages in an amount no more than three times the sum of the commissions owed to the sales rep.

On interlocutory appeal, a split Court of Appeals affirmed the trial court. But in Ralph Andrews v. Mor/Ryde International, Inc., 20S04-1406-PL-399, the justices reversed the trial court, citing Judge Michael Barnes’ dissent.

“We agree with Judge Barnes that Obremski’s distinction between common-law punitive damages and statutory exemplary damages is controlling here. While the Punitive Damages Act was enacted to drastically restrict recovery in light of perceived abuses at common law generally, the Sales Representative Act’s treble-damage provisions at issue here — like the similar Crime Victims Relief Act provisions in (Obremski v. Henderson, 497 N.E.2d 909, 911 (Ind. 1986)) — were enacted to increase recovery from what the common law would otherwise permit. We think it highly unlikely that the Legislature would expand a remedy with one hand (the Sales Representative Act or the Crime Victims Relief Act), while restricting it with the other (the Punitive Damages Act),” Justice Loretta Rush wrote.
She noted that the Legislature could have abolished Obremski’s distinction between common law and statutory punitive damages as part of major 1995 amendments to the Punitive Damages Act, but chose not to do so.

“… we find it instructive that an amendment that dramatically increased the reach of the Punitive Damages Act nevertheless did not include a change extending it to encompass statutory treble damages,” she wrote.



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  1. I think the cops are doing a great job locking up criminals. The Murder rates in the inner cities are skyrocketing and you think that too any people are being incarcerated. Maybe we need to lock up more of them. We have the ACLU, BLM, NAACP, Civil right Division of the DOJ, the innocent Project etc. We have court system with an appeal process that can go on for years, with attorneys supplied by the government. I'm confused as to how that translates into the idea that the defendants are not being represented properly. Maybe the attorneys need to do more Pro-Bono work

  2. We do not have 10% of our population (which would mean about 32 million) incarcerated. It's closer to 2%.

  3. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  4. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  5. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.