Jennifer Nelson for www.theindianalawyer.com

The Indiana Supreme Court affirmed the admission of a couple’s uninsured motorist policy limits at a trial in which the couple sued its insurer to recover under that provision. But in doing so, the justices declined requests by the Indiana Trial Lawyers Association and the Defense Trial Counsel of Indiana to adopt a bright-line rule on the admission of coverage limits.

The trial court allowed the jury to hear evidence that the motorist policy for Jerry Earl included a $250,000 limit under his uninsured motorist coverage. The jury then returned a verdict in favor of the couple against State Farm –  $175,000 to Earl’s estate and $75,000 to his widow, Kimberly. Earl was severely injured while riding his motorcycle on I-65 in southern Indiana when a tractor-trailer entered his lane, causing him to swerve and strike the median. He was covered by the State Farm policy and his wife was also able to sue for loss of consortium. While the lawsuit was pending, Earl died from an unrelated illness.

State Farm moved to exclude any evidence of the coverage limit on the grounds it was irrelevant to damages. The insurer and amici DTCI and the Insurance Institute of Indiana  asked the Supreme Court to create a rule that coverage limits are irrelevant to the determination of tortious damages and are therefore inadmissible. The Earls, along with amicus ITLA, argued for a rule that coverage limits are relevant to the underlying contract claim and therefore “must” be admitted.

“We decline either side’s invitation to take such a rigid approach; instead, we think it more appropriate to rely on our trial courts to exercise their discretion in determining what evidence is probative in the particular case before them. And, on these facts, we find the court was within that discretion,” Justice Mark Massa wrote in State Farm Mutual Automobile Insurance Company v. Kimberly S. Earl and the Estate of Jerry Earl, 35S05-1408-CT-562.

The justices found the admission of the coverage limit contained within the insurance policy was relevant background information that would help the jury understand the relationship between the Earls and State Farm and the basis for the lawsuit itself. Massa noted that State Farm did not deny liability.

The Indiana Court of Appeals reversed the ruling in favor of the Earls, but the justices aligned themselves with Judge Patricia Riley’s dissent regarding whether the jury’s award of the exact value of the coverage limit is conclusive evidence that its admission amounted to substantial unfair prejudice. Riley wrote, “The more appropriate inference is that the jury followed the trial court’s instructions and, in light of the overwhelming evidence, arrived at the policy limit.”

“We understand State Farm’s concerns about a coverage limit’s potentially harmful influence on the calculation of actual damages,” Massa wrote. “Accordingly, our decision today does not stand for the proposition that coverage limits are always admissible.  We can foresee instances where the insured’s injury is so minor and the coverage limit so large it gives rise to a legitimate concern that the jury will inflate its award, a concern that would be heightened if, for example, plaintiff’s counsel repeatedly emphasized the limit despite its relatively low probative value. In this case, however, we do not have such a concern, and we conclude the trial court did not abuse its discretion in admitting the evidence.”

Marilyn Odendahl for www.theindianalawyer.com

The American Bar Association has denied provisional accreditation to Indiana Tech Law School.

In a memorandum issued Tuesday, the Council of the Section of Legal Education and Admissions to the Bar rejected the application for provisional ABA approval from the two-year-old law school located in Fort Wayne. The council notified the school prior to the memorandum being issued.

“While we are disappointed not to receive accreditation at this time, we were encouraged that the Council narrowed the issue we need to focus on, and we believe that the Council ahs provided us with good feedback as we begin the reapplication process,” Indiana Tech Law School Dean Charles Cercone said.

The council heard a presentation by Cercone and other school officials during a meeting June 5 and 6 in Minneapolis. Details of that presentation have not been released but afterward, Indiana Tech described it as productive.

Indiana Tech Law School can appeal within 30 days. If filed in accordance with proper procedure, the appeal will be considered by an appeals panel, and the council’s decisions would be stayed pending the final outcome.

Cercone drew attention that Indiana Tech is not the only law school to be denied accreditation.

“Historically, several new law schools have not received accreditation on their first attempt, but am confident that with the input provided to us by the ABA we will move successfully towards accreditation,” Cercone said. “In the meantime, we continue to work as always with our students to provide them with a top-notch, career-focused legal education.”

Today, the U.S. Court of Appeals for the District of Columbia Circuit dismissed State of West Virginia et al v. Environmental Protection Agency, Case No. 14-1112. Indiana was one of fourteen petitioners in the case, which asked the Court to review the legality of the EPA’s proposed regulations limiting carbon dioxide emissions from existing power plants. The Court held that it does not have the authority to review proposed agency rules. In response, Governor Mike Pence issued the following statement.

“The Court’s decision is discouraging, but it does not dampen our resolve to use every legal means at our disposal to stop burdensome regulations. Though the Court declined to let the litigation proceed because of procedural matters, the Court’s decision did not speak to the substance of our claim that the EPA lacks the authority to regulate carbon dioxide emissions from existing power plants in the way proposed. We will renew our claim and seek to invalidate the regulations once they are finalized later this summer.”

Governor Mike Pence will join executives from Sirmax North America, an Italy-based global supplier of plastic compounds and resins, for a ceremonial groundbreaking of the company’s planned 141,000 square-foot facility in Anderson. At noon, the Governor will visit with Hoosiers at The Toast in Anderson. Details below.

Wednesday, June 10:

10:45 a.m. EDT – Governor Pence will join executives from Sirmax North America, an Italy-based global supplier of plastic compounds and resins, for a ceremonial groundbreaking of the company’s planned 141,000 square-foot facility on 26.3 acres of land in Anderson. The Governor met with Sirmax North America executives in January at the 2015 North American International Auto Show in Detroit, where the company announced plans to locate its first North American facility in Anderson, creating 50 new jobs by 2020.
*Media are welcome to attend. Note: the entrance is off of 25th Street.
2915 Martin Luther King Jr. Blvd., Anderson, IN

12:00 p.m. EDT – Governor Pence will visit with Hoosiers in Anderson
*Media are welcome to attend.
The Toast, 28 E. 13th Street, Anderson, IN