The Indiana Jury Verdict Reporter
The Most Current and Complete Summary of Indiana Jury Verdicts
September, 2006 Statewide Jury Verdict Coverage 7 IJVR 9
Unbiased and Independently Researched Jury Verdict Results
In This Issue Legal Negligence - When a health major part of the problem seems to be
traceable to the excessive ambitions of
Marion County insurance trust became insolvent, the
Department of Insurance sued the the management team.
Legal Negligence - $17,991,043 p. 1
Auto Negligence - $75,000 p. 4 trust’s legal counsel to recover Among other things, a cabal of three
Forklift Repair Neg. - Defense verdict p. 5 massive unpaid claims made against of the top managers decided to expand
Auto Negligence - $12,500 p. 7 the trust the trust’s customer base beyond the
Auto Negligence - $9,161 p. 9 Atterholt v. Dennerline, et al., construction industry. The three
Lake County 49C01-0207-PL-1884-1 managers were chairman Paul Scali,
Auto Negligence - $60,524 p. 3 Plaintiff: Irwin B. Levin and Richard general operations manager Russell
Bus Negligence - Defense verdict p. 4 E. Shevitz, Cohen & Malad, LLP., Roth, and accountant David Norris. In
Auto Negligence - $15,000 p. 6 Indianapolis pursuing their dreams of expansion,
Auto Negligence - $7,819 p. 10 insufficient care was taken to set
Auto Negligence - $2,425 p. 11
Defense: David J. Beach, Gregory A.
Crisman, David C. Jensen, and premiums at a level that could cover
Auto Negligence - Defense verdict p. 12 payments on future claims.
Auto Negligence - Defense verdict p. 12 Katherine H. Hosty, Eichhorn &
Eichhorn, Hammond In addition to such recklessness, the
Porter County three managers allegedly embezzled
Medical Negligence - Defense verdict p. 3 Verdict: $17,991,043 for plaintiff
Bad Faith - Defense verdict p. 7 County: Marion, Circuit some $450,000 from the trust over a
Bartholomew County Court: J. Sosin, 8-28-06 two-year period. They were apparently
Auto Negligence - $33,111 p. 5 In the later 1960s, a group of able to get away with this scheme by
Auto Negligence - $7,297 p. 10 construction industry trade associations keeping the trustees in the dark about
Dearborn County formed an entity called the Indiana day-to-day operations. When the trust
Subrogation - Defense verdict p. 8 Construction Industry Trust began to have financial difficulties,
Monroe County (hereinafter, “ICIT”). The purpose of Scali, Roth, and Norris simply explained
Auto Negligence - $10,000 p. 8 the ICIT was to provide health care it away as due in part to difficulties with
Auto Negligence - Defense verdict p. 12 benefits to workers in the construction a new computer system.
Federal Court - Indianapolis industry. Also, in order to pump up the balance
Race Discrimination - Defense verdict p. 8 Initially, the health care coverage the sheet, the men listed a collection of
Madison County ICIT provided to its members was precious jewels as an asset of the trust
Auto Negligence - $10,000 p. 9 valued at nearly $3,000,000. In reality,
purchased from an outside insurer.
Federal Court - Fort Wayne however, the jewels had been leased
Education/Sex Disc. - Defense verdict p. 9
However, the trust eventually
transformed itself into a self-insured from a company in New Orleans and
Federal Court - South Bend were therefore actually a liability rather
Race Discrimination - Defense verdict p. 10 entity, known technically as a
“MEWA,” or “Multiple Employer than an asset.
Kosciusko County As a result of these and other forms of
Auto Negligence - $4,000 p. 11 Welfare Arrangement.” That fact
would later have some significance for financial chicanery, the trust became
Tippecanoe County insolvent and was unable to pay
Auto Negligence - $2,129 p. 11 this case.
Beginning in 1995, attorney approximately 8,200 claims for health
Notable Out of State Verdicts p. 13
Frederick Dennerline, III, of the care benefits made by its members.
Indianapolis law firm of Fillenwarth, When the house of cards finally
Dennerline, Groth & Towe, began collapsed, and the Indiana Department
Civil Jury Verdicts providing legal advice to the ICIT. By of Insurance stepped in an put the ICIT
Timely coverage of civil jury 1998, Dennerline had officially become in liquidation in July of 2002. The total
verdicts in Indiana including court, the ICIT’s outside legal counsel. amount of the unpaid claims was
division, presiding judge, parties, cause However, all was not well with the calculated at nearly $18,000,000.
number, attorneys and results. ICIT. As the millennium turned, the Scali and Roth were indicted for their
entire operation began falling apart. embezzlement, and Norris was indicted
There is some disagreement about the for assisting in covering up their
exact source of the difficulties, but a scheme. Scali and Roth both ended up