Decision Reversed In Orban Case
July 28, 2016 at 4:25 p.m.
By Daniel [email protected]
In documents presented to the Times-Union recently, the Court Of Appeals Of Indiana reached a 3-0 decision reversing the jury verdict against the city of Warsaw and R. Paul Schmitt in a civil action filed by Richard and Jan Orban.[[In-content Ad]]In their conclusion, the court stated, "The Orbans did not present sufficient evidence to permit the jury to conclude that Detective Schmitt committed conspiracy to criminally convert property."
The court also stated the Orbans did not show that Schmitt or Agent Rick Albrecht of the Indiana Department of Revenue, with some improper motivation, planned with David Melching to commit an unlawful act against the Orbans.
"The court's decision in that they wrote speaks for itself," said attorney Mark Ulmschneider, who represented Schmitt. "My thought was the (initial) verdict never made any sense. It seemed clear to me that Paul Schmitt and the city of Warsaw never did anything that led to a trial."
Schmitt was pleased with the decision.
"You can't imagine what a relief it is," said Schmitt.
Ulmschneider characterized a story ran by the Times-Union in July 6, 2007, titled "Wrongly Accused Orbans Win Suit Against Warsaw" as a premature disclosure by the Orban's and the Times-Union.
Ulmschneider cited the court's ruling that the original jury in Indianapolis never had jurisdiction to address civil rights action.
The Orbans' attorney, James R. Fisher, said he was disappointed with the decision and that he "wanted it to be over but we'll retry it in federal court and we expect the same or larger verdict (as the original)."
Both Fisher and Ulmschneider expect the case to go to federal court, though a date has not yet been set.
"They made no decision about merits of the case," said Fisher of the Court Of Appeals. "Nothing has changed in terms of facts."
In 2001, the Orbans filed a Constitutional rights lawsuit against the state of Indiana, the Indiana Department of Revenue, the city of Warsaw, Schmitt, Albrecht, David A. Melching and D.A. Melching and Associates Inc.
On June 29, 2007, a Marion County jury found for the Orbans on counts of violation of Constitutional rights, conspiracy to violate Constitutional rights and conspiracy to convert assets.
The jury awarded the Orbans $1,975,000 in damages.
In the Court Of Appeals decision, the court characterized Carpet Express as an "insolvent business."
A Marion County jury awarded the Orbans a $3.275 million judgement against Melching and his business in 2002.
The origins of the case started in 1997. Richard Orban and Melching became partners and co-owners of Carpet Express. Orban became a managing partner in the business. Jan, his wife, was a bookkeeper for the business.
The partnership was dissolved and Melching and the Orbans accused each other of taking money from the business.
Computers and other items were seized from the business after Melching went to the police.
Schmitt, a Warsaw Police Department officer at the time, acted as a liaison between WPD and the Kosciusko County Prosecutor's Office.
Albrecht was an officer for the Indiana Department of Revenue, investigating possible fraud by Richard Orban.
The Orbans were charged with multiple felonies in 1999, including money laundering, perjury and theft.
Those charges were eventually dropped and the Orbans then filed their lawsuits.
In documents presented to the Times-Union recently, the Court Of Appeals Of Indiana reached a 3-0 decision reversing the jury verdict against the city of Warsaw and R. Paul Schmitt in a civil action filed by Richard and Jan Orban.[[In-content Ad]]In their conclusion, the court stated, "The Orbans did not present sufficient evidence to permit the jury to conclude that Detective Schmitt committed conspiracy to criminally convert property."
The court also stated the Orbans did not show that Schmitt or Agent Rick Albrecht of the Indiana Department of Revenue, with some improper motivation, planned with David Melching to commit an unlawful act against the Orbans.
"The court's decision in that they wrote speaks for itself," said attorney Mark Ulmschneider, who represented Schmitt. "My thought was the (initial) verdict never made any sense. It seemed clear to me that Paul Schmitt and the city of Warsaw never did anything that led to a trial."
Schmitt was pleased with the decision.
"You can't imagine what a relief it is," said Schmitt.
Ulmschneider characterized a story ran by the Times-Union in July 6, 2007, titled "Wrongly Accused Orbans Win Suit Against Warsaw" as a premature disclosure by the Orban's and the Times-Union.
Ulmschneider cited the court's ruling that the original jury in Indianapolis never had jurisdiction to address civil rights action.
The Orbans' attorney, James R. Fisher, said he was disappointed with the decision and that he "wanted it to be over but we'll retry it in federal court and we expect the same or larger verdict (as the original)."
Both Fisher and Ulmschneider expect the case to go to federal court, though a date has not yet been set.
"They made no decision about merits of the case," said Fisher of the Court Of Appeals. "Nothing has changed in terms of facts."
In 2001, the Orbans filed a Constitutional rights lawsuit against the state of Indiana, the Indiana Department of Revenue, the city of Warsaw, Schmitt, Albrecht, David A. Melching and D.A. Melching and Associates Inc.
On June 29, 2007, a Marion County jury found for the Orbans on counts of violation of Constitutional rights, conspiracy to violate Constitutional rights and conspiracy to convert assets.
The jury awarded the Orbans $1,975,000 in damages.
In the Court Of Appeals decision, the court characterized Carpet Express as an "insolvent business."
A Marion County jury awarded the Orbans a $3.275 million judgement against Melching and his business in 2002.
The origins of the case started in 1997. Richard Orban and Melching became partners and co-owners of Carpet Express. Orban became a managing partner in the business. Jan, his wife, was a bookkeeper for the business.
The partnership was dissolved and Melching and the Orbans accused each other of taking money from the business.
Computers and other items were seized from the business after Melching went to the police.
Schmitt, a Warsaw Police Department officer at the time, acted as a liaison between WPD and the Kosciusko County Prosecutor's Office.
Albrecht was an officer for the Indiana Department of Revenue, investigating possible fraud by Richard Orban.
The Orbans were charged with multiple felonies in 1999, including money laundering, perjury and theft.
Those charges were eventually dropped and the Orbans then filed their lawsuits.
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