Judge Reed Hears Class-Action Suit
July 28, 2016 at 4:25 p.m.
By Craig Brosman-
Reed was appointed special judge in March 2011 in the matter of Bonnell vs. United Financial Systems Corp., which was originally filed in Fulton County.
One after another, a line of lawyers walked into Reed’s courtroom to argue over where the lawsuit should be adjudicated.
Shannon Starr and Mark Fryman Jr. of Starr, Austen and Miller LLP in Logansport, as well as Richard Shevits, of Cohen and Malad, Indianapolis, represented the plaintiffs against United Financial Systems Corp.
Representing the defendants, John Joyce and Andrew Mark Eads, were John McDavid, of Tucker-Hester LLC, and Scott Weathers.
In January 2011, Starr, Austen and Miller filed a class action lawsuit against UFSC, naming Donald Bonnell, from Kewanna in Fulton County and Wayne L. Landes the plaintiffs against UFSC, Indianapolis, a not-for-profit credit counseling service for unauthorized practice of law. The firm believes that there could be up to 2,000 other plaintiffs and damages could reach $10 million to $20 million.
Two months after Bonnell filed against UFSC, Richard Kennard filed a class-action lawsuit in Marion Superior Court stating that UFSC sold him $2,500 in estate planning in 2002, as well as two annuities. Kennard is represented by Shevits.
The lawsuit alleges constructive fraud, contractual claim violations, conversion, and disgorgement of fees due to unauthorized practice of law.
On Wednesday, Shevits told Reed that he thinks the Bonnell case should be moved to Marion County based on the preferred venue rule.
“The preferred venue rule states that if there is a preferred venue then if the motion for change of venue was properly submitted, it shall be granted,” Shevits said. “Since UFSC is from Indianapolis, then it clearly states that Marion County is the preferred venue for the case.”
McDavid did not agree with Shevits.
“Under Rule 42 for consolidation it says that to consolidate you must consolidate to the first lawsuit filed. The Bonnell case was filed two months before the Kennard case was in Indianapolis,” McDavid said.
Shevits responded that the reason why McDavid opposes the change of venue is because UFSC has had a prior ruling against them in August 2011 and that it is not where UFSC wants to have the case.
McDavid said that if the case was allowed to move to Indianapolis, then it would open up a much larger issue of forum shopping.
“If someone can file a lawsuit in Fulton County and then move it to Indianapolis because they like the judges there, that is not right,” he said.
Starr said there really isn’t a case for UFSC to not have the venue changed.
“Everyone in this case but McDavid and UFSC are fine with the change of venue,” Starr said. “Within the preferred venue rule it clearly states that if there is a preferred venue that supercedes any consolidation rule then the case must be moved to Indianapolis.”
In 2010, the Indiana Supreme Court sided against UFSC for selling estate planning packages to customers and using non lawyer agents to execute the documents. The court issued a ruling to UFSC informing the company that they had 15 days to issue refunds to those customers in Indiana who purchased the product from October 2006 to May 2009. The court said the ruling would affect 1,306 customers and UFSC would have to pay out more than $3 million. The decision could cost UFSC tremendously considering that 18.8 percent of UFSC’s total income came from estate planning in Indiana.
UFSC has yet to pay out to the customers that they were ordered to refund.
The class action lawsuit that Starr filed in Fulton County has not been certified or classified as a class action suit yet. But the Kennard case in Marion County has a hearing in the next few months in order to be classified as a class action suit. If the Kennard case is classified as a class action suit, then all plaintiffs that fit into the description of the suit will be consolidated to the Kennard case.
As of Wednesday UFSC was not operating in indiana according to Starr.
Reed said that he will issue a ruling on the change of venue by Wednesday.[[In-content Ad]]
Latest News
E-Editions
Reed was appointed special judge in March 2011 in the matter of Bonnell vs. United Financial Systems Corp., which was originally filed in Fulton County.
One after another, a line of lawyers walked into Reed’s courtroom to argue over where the lawsuit should be adjudicated.
Shannon Starr and Mark Fryman Jr. of Starr, Austen and Miller LLP in Logansport, as well as Richard Shevits, of Cohen and Malad, Indianapolis, represented the plaintiffs against United Financial Systems Corp.
Representing the defendants, John Joyce and Andrew Mark Eads, were John McDavid, of Tucker-Hester LLC, and Scott Weathers.
In January 2011, Starr, Austen and Miller filed a class action lawsuit against UFSC, naming Donald Bonnell, from Kewanna in Fulton County and Wayne L. Landes the plaintiffs against UFSC, Indianapolis, a not-for-profit credit counseling service for unauthorized practice of law. The firm believes that there could be up to 2,000 other plaintiffs and damages could reach $10 million to $20 million.
Two months after Bonnell filed against UFSC, Richard Kennard filed a class-action lawsuit in Marion Superior Court stating that UFSC sold him $2,500 in estate planning in 2002, as well as two annuities. Kennard is represented by Shevits.
The lawsuit alleges constructive fraud, contractual claim violations, conversion, and disgorgement of fees due to unauthorized practice of law.
On Wednesday, Shevits told Reed that he thinks the Bonnell case should be moved to Marion County based on the preferred venue rule.
“The preferred venue rule states that if there is a preferred venue then if the motion for change of venue was properly submitted, it shall be granted,” Shevits said. “Since UFSC is from Indianapolis, then it clearly states that Marion County is the preferred venue for the case.”
McDavid did not agree with Shevits.
“Under Rule 42 for consolidation it says that to consolidate you must consolidate to the first lawsuit filed. The Bonnell case was filed two months before the Kennard case was in Indianapolis,” McDavid said.
Shevits responded that the reason why McDavid opposes the change of venue is because UFSC has had a prior ruling against them in August 2011 and that it is not where UFSC wants to have the case.
McDavid said that if the case was allowed to move to Indianapolis, then it would open up a much larger issue of forum shopping.
“If someone can file a lawsuit in Fulton County and then move it to Indianapolis because they like the judges there, that is not right,” he said.
Starr said there really isn’t a case for UFSC to not have the venue changed.
“Everyone in this case but McDavid and UFSC are fine with the change of venue,” Starr said. “Within the preferred venue rule it clearly states that if there is a preferred venue that supercedes any consolidation rule then the case must be moved to Indianapolis.”
In 2010, the Indiana Supreme Court sided against UFSC for selling estate planning packages to customers and using non lawyer agents to execute the documents. The court issued a ruling to UFSC informing the company that they had 15 days to issue refunds to those customers in Indiana who purchased the product from October 2006 to May 2009. The court said the ruling would affect 1,306 customers and UFSC would have to pay out more than $3 million. The decision could cost UFSC tremendously considering that 18.8 percent of UFSC’s total income came from estate planning in Indiana.
UFSC has yet to pay out to the customers that they were ordered to refund.
The class action lawsuit that Starr filed in Fulton County has not been certified or classified as a class action suit yet. But the Kennard case in Marion County has a hearing in the next few months in order to be classified as a class action suit. If the Kennard case is classified as a class action suit, then all plaintiffs that fit into the description of the suit will be consolidated to the Kennard case.
As of Wednesday UFSC was not operating in indiana according to Starr.
Reed said that he will issue a ruling on the change of venue by Wednesday.[[In-content Ad]]
Have a news tip? Email [email protected] or Call/Text 360-922-3092