Knightstown Banner, LLC v. Town of Knightstown

882 N.E.2d 270, 36 Media L. Rep. (BNA) 1623, 2008 Ind. App. LEXIS 499, 2008 WL 696172
CourtIndiana Court of Appeals
DecidedMarch 14, 2008
Docket33A05-0705-CV-239
StatusPublished
Cited by2 cases

This text of 882 N.E.2d 270 (Knightstown Banner, LLC v. Town of Knightstown) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knightstown Banner, LLC v. Town of Knightstown, 882 N.E.2d 270, 36 Media L. Rep. (BNA) 1623, 2008 Ind. App. LEXIS 499, 2008 WL 696172 (Ind. Ct. App. 2008).

Opinion

OPINION

FRIEDLANDER, Judge.

This is the second time this lawsuit between Knightstown Banner, LLC (the Newspaper) on one side and Town of Knightstown (the Town), Governmental Insurance Managers, Inc. (GIM), and Governmental Interinsurance Exchange (GIE) on the other has come before us. In this appeal, the Newspaper presents the following restated issues for review:

1. Did the trial court err in denying the Newspaper’s motion for summary judgment and instead permitting the Town to dismiss its counterclaim for attorney fees?
2. Did the trial court err in determining the amount of the Newspaper’s attorney fees award?
3. Did the trial court abuse its discretion in denying the Newspaper’s motion for change of judge?

We affirm in part, reverse in part, and remand with instructions.

As indicated above, this is the second time this lawsuit has come before this court. We set out the underlying facts in the first opinion (Knightstown I) as follows:

This case arises out of three separate requests from the Banner to Knights-town, GIM, and GIE, each seeking to inspect and copy a settlement agreement that resolved a civil rights lawsuit filed on November 25, 2002 in the United States District Court for the Southern District of Indiana, by Gigi Steinwachs (Steinwachs) against Knightstown, members of its police de *272 partment, and other third parties. In her lawsuit, Steinwachs alleged sexual harassment, physical assault, and intimidation during her employment as a dispatcher with the Knightstown police department. Besides Knightstown’s regular town counsel (Regular Town Counsel), an attorney retained by Knightstown’s reciprocal insurer, GIE (Retained Town Counsel), also participated in the civil rights lawsuit.
GIE is a reciprocal insurer organized under the laws of Illinois, and authorized to conduct insurance business in Indiana. It is a reciprocal interinsurance program whereby governmental entities enter into contracts of indemnity with each other through their common attorney-in-fact, GIM. GIE’s insureds, known as subscribers, are exclusively local governmental entities, of which seventy-three percent are located in Indiana. At the time of the initiation of the civil rights lawsuit, Knightstown was insured by GIE. Under the terms of the policy, GIM, as the appointed true and lawful attorney of [Knightstown], had the right to
pay those sums that [Knightstown] becomes legally obligated to pay as “damages” because of injury caused by “Designated Wrongful Employment Practices”: to which this Coverage Part applies. [GIM] will have the rights and duty to defend any insured against a “suit” seeking these damages from [Knightstown], and [GIM] will have the right to administer, manage, and control the defense of [Knightstown] ... [GIM] may at our discretion investigate any “occurrence” and settle, in whole or in part, any “claim” or “suit” that may result.
On October 21, 2003, Steinwachs, individually and through counsel, and Knightstown, through Regular Town Counsel and Retained Town Counsel, resolved the civil rights lawsuit in a settlement conference. Following the conference, the district court ordered the filing of a motion to dismiss or stipulation of dismissal within thirty days because of the settlement between the parties. Pursuant to the terms of the settlement, Knightstown was to directly pay Steinwachs $5,000.00 in partial payment of the agreed compensation. However, the Town Council President refused to further discuss the terms of the settlement because of a confidentiality provision which would result in additional compensation for Steinwachs if breached.
On or about November 13, 2003, Ste-inwachs filed a motion to extend the time to file a stipulation of dismissal in the civil rights lawsuit. On or about November 18, 2003, the district court granted Steinwachs’ motion and extended the time to file the stipulation until “ten days after receipt of remaining funds.” Thereafter, on or about December 9, 2003, Steinwachs’ counsel and Retained Town Counsel filed a stipulation to dismiss. That same day, the district court dismissed the civil rights lawsuit without sealing the settlement agreement.
On October 29, 2003, pursuant to APRA, the Banner submitted its first request to Knightstown seeking to inspect a copy of the settlement agreement. Approximately two weeks later, on November 10, 2003, the Banner submitted identical requests to Knightstown and GIE to receive a copy of the settlement agreement, or in the alternative in the event the settlement was not reduced to writing, “complete copies of any and all documents which reveal the amount of money either already paid or to be paid to [Steinwachs] ... as well as any and all documents which set forth *273 any nonmonetary terms and conditions of the settlement agreement.” Both Knightstown and GIE denied the request.
On May 21, 2004, the Banner filed a Verified Complaint against Knightstown, GIE, and GIM alleging a violation of APRA, a violation of the common law right to inspect public records, and a violation of article I, §§ 1 and 9 of the Indiana Constitution. On January 14, 2005, the Banner filed its Motion for Summary Judgment on All Counts of the Complaint. Thereafter, on February 16, 2005, Knightstown, GIE, and GIM filed cross-motions for summary judgment. On April 6, 2005, after a hearing, the trial court denied Banner’s motion for summary judgment but granted Knightstown’s, GIE’s, and GIM’s cross-motions for summary judgment.

Knightstown Banner, LLC v. Town of Knightstown, 838 N.E.2d 1127, 1128-1130 (Ind.Ct.App.2005) (internal citations omitted), trans. denied.

To summarize, Knightstown I involved a demand by the Newspaper under Indiana Access to Public Records Act (APRA) to view the settlement agreement between the Town and a former employee in a lawsuit filed by the employee alleging sexual harassment, physical assault, and intimidation. The trial court determined that the settlement agreement was not a public record and thus the Town was not required by APRA to produce it. We reversed that , determination and held that the settlement agreement is a public record under APRA. We remanded to the trial court with instructions to order the Town to deliver to the Newspaper a copy of the settlement agreement.

On June 16, 2005, after notice of appeal was filed in Knightstown I, GIE and GIM filed a motion for costs and attorney fees on the basis that the Newspaper’s lawsuit was frivolous. The Town also filed its own motion for attorney fees. Ruling on the attorney fees issue was deferred pending the conclusion of the appeal. Knightstown I was handed down on December 13, 2005. Two days later, on December 15, the Newspaper submitted a motion for change of judge pursuant to Trial Rule 76(C)(3). That motion was granted on December 20, 2005.

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882 N.E.2d 270, 36 Media L. Rep. (BNA) 1623, 2008 Ind. App. LEXIS 499, 2008 WL 696172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knightstown-banner-llc-v-town-of-knightstown-indctapp-2008.