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Tuesday, July 08, 2008

Indiana Law - "Indy law firm moves beyond its nightmare"

John Ketzenberger, business columnist for the Indianapolis Star, writes again today about the law firm of Fillenwarth Dennerline Groth & Towe. Some quotes:

The venerable labor law firm was on the hook for an $18 million judgment that held it solely liable for the 2002 collapse of the Indiana Construction Insurance Trust, which provided health insurance for union contractors. Some 50 others settled with the Indiana Department of Insurance for far less.

Fillenwarth Dennerline wanted to settle, too, but its malpractice insurer did not. ProNational Insurance Co. refused to settle for the $1 million policy limits and took a chance. That move backfired when a jury decided Frederick Dennerline III, the trust's attorney, was liable for the failure.

But even before that, Fillenwarth Dennerline filed a lawsuit against ProNational that claimed the insurance company acted in bad faith by not settling before the trial.

Last month Fillenwarth Dennerline did what ProNational would not do -- settle.

The partners made an undisclosed cash payment to the state, then gave Department of Insurance Commissioner Jim Atterholt the right to sue ProNational. The state's attorneys, Irwin Levin and Richard Shevitz, who won the original judgment against Fillenwarth Dennerline, did just that.

"Things could have been very different if the insurance company had taken a different approach," Shevitz said.

That's lawyerspeak for "They shoulda settled." Now ProNational is the state's sole focus for collecting the judgment that, with interest, increases by $3,943.24 each and every day. * * *

Partners declined to talk about the case. Undoubtedly living with the mammoth judgment has been painful. Attorney Bill Hurst told me two years ago, "It's the worst, most god-awful thing I've ever seen."

It still is, but now the attorneys at Fillenwarth Dennerline feel like they can look ahead. They have a new malpractice carrier and a new Downtown address. And they have restructured the partnership to limit a partner's individual liability.

Instead of fighting with the state or their insurance company, they can fight for their clients.

For background, start with this June 20, 2008 ILB entry headed "State Insurance Commissioner sues Insurer in Dennerline matter." The entry includes a link to the 8-page complaint of the Indiana Insurance Commissioner, filed in federal court June 19th.

Posted by Marcia Oddi on July 8, 2008 09:28 AM
Posted to Indiana Law