Judge Needs More Info In Civil Suit Against Johns
December 12, 2019 at 2:06 a.m.
By Amanda [email protected]
Kosciusko Superior Court IV Judge Chris Kehler signed an order Monday that partially sustains the Johns’ motion to dismiss the case, but allows the plaintiff, Michael J. Dewitt, to amend his complaint. Otherwise Kehler will dismiss it with prejudice.
Dewitt sued the Johns on Sept. 20, alleging fraud and breach of contract for $2 million in a $4 million real estate transaction from 2018.
Dewitt alleges the Johns entered into a purchase agreement for their home and surrounding land at 11199 N. East Wawasee Drive, Syracuse, for $4 million that included terms that the Johns would transfer 3.5 shares of Travel Lite Inc. stock, valued at $2.1 million, to Dewitt at closing, along with $1.885 million in cash and a $15,000 earnest money deposit.
Dewitt is asking the court to order the Johns to transfer the real estate to him and he will return the partial consideration previously paid. Dewitt is also seeking $2.1 million in damages – the value of the stock from the deal – plus 8% interest, along with attorney fees and court costs.
Dewitt claims in his filing that the Johns provided him with fraudulent financial information regarding Travel Lite Inc., and the Travel Lite stock in connection with the sale and transfer of the stock. The sale of the stock in exchange of the real estate was a transaction covered by the Indiana Uniform Securities Act, Indiana Code 23-19.
The Johns had until Oct. 31 to respond to Dewitt’s action, and on Oct. 30 they filed a motion to dismiss, arguing the claims didn’t meet Indiana rule standards for alleging fraud. On Nov. 6, Dewitt filed a response and asked the court to rule on the matter with a hearing.
Kehler seems to agree with the Johns.
“Indiana Trial Rule 9(B) requires that ‘(i)n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be specifically averred.’ Plaintiff’s complaint fails to specify in sufficient detail the circumstances constituting the alleged fraud and fails to specify in sufficient detail the time, the place, the substance of the false representations, the facts misrepresented, and the identification of what was procured by fraud with respect to each defendant. The allegations should not be conclusory and should not be directed to both defendants as one unit,” Kehler’s order reads. “Plaintiff’s failure to provide sufficient detail with respect to the allegations contained in Count I – fraud causes the other counts in plaintiff’s complaint to also be insufficient.”
In October, Dustin Johns told the Times-Union that “anyone can sue anyone, but that in this case, I didn’t do anything wrong.”
Kosciusko Superior Court IV Judge Chris Kehler signed an order Monday that partially sustains the Johns’ motion to dismiss the case, but allows the plaintiff, Michael J. Dewitt, to amend his complaint. Otherwise Kehler will dismiss it with prejudice.
Dewitt sued the Johns on Sept. 20, alleging fraud and breach of contract for $2 million in a $4 million real estate transaction from 2018.
Dewitt alleges the Johns entered into a purchase agreement for their home and surrounding land at 11199 N. East Wawasee Drive, Syracuse, for $4 million that included terms that the Johns would transfer 3.5 shares of Travel Lite Inc. stock, valued at $2.1 million, to Dewitt at closing, along with $1.885 million in cash and a $15,000 earnest money deposit.
Dewitt is asking the court to order the Johns to transfer the real estate to him and he will return the partial consideration previously paid. Dewitt is also seeking $2.1 million in damages – the value of the stock from the deal – plus 8% interest, along with attorney fees and court costs.
Dewitt claims in his filing that the Johns provided him with fraudulent financial information regarding Travel Lite Inc., and the Travel Lite stock in connection with the sale and transfer of the stock. The sale of the stock in exchange of the real estate was a transaction covered by the Indiana Uniform Securities Act, Indiana Code 23-19.
The Johns had until Oct. 31 to respond to Dewitt’s action, and on Oct. 30 they filed a motion to dismiss, arguing the claims didn’t meet Indiana rule standards for alleging fraud. On Nov. 6, Dewitt filed a response and asked the court to rule on the matter with a hearing.
Kehler seems to agree with the Johns.
“Indiana Trial Rule 9(B) requires that ‘(i)n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be specifically averred.’ Plaintiff’s complaint fails to specify in sufficient detail the circumstances constituting the alleged fraud and fails to specify in sufficient detail the time, the place, the substance of the false representations, the facts misrepresented, and the identification of what was procured by fraud with respect to each defendant. The allegations should not be conclusory and should not be directed to both defendants as one unit,” Kehler’s order reads. “Plaintiff’s failure to provide sufficient detail with respect to the allegations contained in Count I – fraud causes the other counts in plaintiff’s complaint to also be insufficient.”
In October, Dustin Johns told the Times-Union that “anyone can sue anyone, but that in this case, I didn’t do anything wrong.”
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