Symons International Group, Inc. v. Continental Casualty Co.

306 F.R.D. 612, 2014 WL 9879991
CourtDistrict Court, N.D. Indiana
DecidedDecember 5, 2014
DocketNo. 1:01-cv-00799-RLY-MJD
StatusPublished
Cited by1 cases

This text of 306 F.R.D. 612 (Symons International Group, Inc. v. Continental Casualty Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Symons International Group, Inc. v. Continental Casualty Co., 306 F.R.D. 612, 2014 WL 9879991 (N.D. Ind. 2014).

Opinion

ORDER ON MOTION FOR PROCEEDINGS SUPPLEMENTAL

MARK J. DINSMORE, United States Magistrate Judge.

This matter comes before the Court on Continental Casualty Company’s (“CCC”) Verified Motion for Proceedings Supplemental. [Dkt. 576.] For the reasons stated below, the Court GRANTS IN PART and DENIES IN PART CCC’s motion.

I. Background

This litigation arises from a Strategic Alliance Agreement (“SAA”) entered into by Continental Casualty Company, IGF Insurance Company (“IGF”), IGF Holdings (“IGFH”), and Symons International Group, Inc. (Indiana) (“SIG”). The factual background is set out in more detail in the Court’s prior entries. [See, e.g., Dkt. 257.] In brief, the IGF Parties sued CCC, alleging breach of contract, fraud, and breach of fiduciary duty. CCC filed claims against the IGF Parties and two affiliated companies, Goran Capital, Inc. (“Goran”) and Granite Reinsurance Company, Ltd. (“Granite Re”). CCC then amended its claims to add five new Defendants: Pafco General Insurance Company (“Pafco”), Superior Insurance Company (“Superior”), G. Gordon Symons, Alan G. Symons, and Douglas H. Symons.

CCC alleged that the IGF parties breached the SAA; that IGFH breached the terms of a promissory note; and that IGF fraudulently transferred assets to Goran, SIG, Granite Re, Pafco, and Superior. CCC also asserted an alter ego theory seeking to hold the individual and corporate counter-defendants accountable for the contractual liabilities of IGF and IGFH.

The Court entered findings of fact and conclusion of law on October 19, 2009. [Dkt. 257.] Among other findings, the Court determined that the individual counter-defendants owned the majority interest in and effectively controlled SIG, Granite Re, Superior, Pafco, IGF, and IGFH. [Id. at 49.] The Court also noted that SIG indirectly owned 100% of Pafco and Superior. [Id]

On July 14, 2014, the Court entered an Amended Final Judgment in favor of CCC and against SIG and IGFH on CCC’s breach of contract claims. [Dkt. 557.] The Court also found in favor of CCC on its fraudulent transfer and alter ego claims. It accordingly entered judgment against the individual and corporate counter-defendants Alan G. Sym-ons; Robert Symons, as successor in interest of G. Gordon Symons; IGFH; SIG; Goran; and Granite Re. [Id. at 3.] The Court determined that the counter-defendants were jointly and severally liable for $34,258,078.00, plus prejudgment interest in the amount of $10,036,978.00 through December 31, 2012. [Id.] During these proceedings, both Pafco and Superior underwent rehabilitation, and the assets of both companies were interpled to this Court. [See Dkt. 576 at 2.]

On July 29, 2014, Goran, Goran Re, Alan G. Symons, SIG, and Robert Symons appealed from the Amended Final Judgment to the Seventh Circuit. [Dkts. 562 & 564.] The same day, CCC filed an application for a writ of execution to satisfy the Court’s judgment. [Dkt. 568.] On August 7, 2014, CCC then filed the current Motion for Proceedings Supplemental. [Dkt. 576.]

CCC’s motion identifies Alan Symons, Robert Symons as successor in interest of G. Gordon Symons, IGFH, SIG, Goran, and Granite Re as the “Judgment Debtors.” [Dkt. 576 ¶ 1.] It also identifies Superior Insurance Group (“Superior Group”) and Superior Insurance Group Management (“Supe[616]*616rior Management”) as the “Garnishee Defendants.” [Dkt. 576 ¶ 4.] The motion states that the Garnishee Defendants “are shell companies with no assets other than the surpluses of Superior and Pafco, which have been interpled to this Court.” [Id. ¶ 4.] CCC also claims that the Garnishee Defendants are “completely controlled by the Symons Family,” such that they are “each alter egos of the other Symons Parties.” [Id.]

CCC asks the Court to order the Judgment Debtors and Garnishee Defendants to appear and “answer as to any non-exempt property subject to proceedings supplemental.” [Id. at 3.] It has also attached document requests related to the Judgment Debtors’ and Garnishee Defendants’ finances, and ask the Court to order a response to these requests within 21 days. [Id. at 3-7.] Finally, CCC asks the Court to order that all property belonging to the Judgment Debtors be applied towards the judgment. [Id. at 3.]

II. Discussion

The Judgment Debtors and Garnishee Defendants filed three responses to CCC’s motion for proceedings supplemental. SIG, Granite Re, and Goran present four arguments in opposition. They contend 1) that CCC has not followed the proper procedures governing its motion for proceedings supplemental and its document requests [Dkt. 589 at 2.]; 2) that CCC’s requests are duplicative and unduly burdensome [id. at 3]; 3) that proceedings supplemental are limited to assets within this judicial district [id. at 5]; and 4) that neither Pafco nor Superior Insurance Company has been named as a Garnishee Defendant or served with process. [Id. at 6.] Alan G. Symons and Superior Insurance Group filed a separate response that reiterates many of these arguments, but adds that the Garnishee Defendants have not been properly served. [Dkt. 588 at 3.] Finally, Robert Symons states only that he stands by the arguments in the other responses. [Dkt. 587 at 1-2.]

A. Procedure for Discovery Requests

Rule 69 governs proceedings supplemental to a judgment:

(1) Money Judgment; Applicable Procedure. A money judgment is enforced by a writ of execution, unless the court directs otherwise. The procedure on execution— and in proceedings supplementary to and in aid of judgment or execution—must accord with the procedure of the state where the court is located, but a federal statute governs to the extent it applies.
(2) Obtaining Discovery. In aid of the judgment or execution, the judgment creditor or a successor in interest whose interest appears of record may obtain discovery from any person—including the judgment debtor—as provided in these rules or by the procedure of the state where the court is located.

Fed.R.Civ.P. 69(a). This action is pending in Indiana and no party has suggested that a federal statute governs the collection of CCC’s judgment. [See Dkts. 576, 587, 588, 589, & 592.] The law of Indiana therefore controls.

Indiana Trial Rule 69(E) governs proceedings supplemental:

(E) Proceedings supplemental to execution. Notwithstanding any other statute to the contrary, proceedings supplemental to execution may be enforced by verified motion or with affidavits in the court where the judgment is rendered alleging generally:
(1) that the plaintiff owns the described judgment against the defendant;
(2) that the plaintiff has no cause to believe that levy of execution against the defendant will satisfy the judgment;
(3) that the defendant be ordered to appear before the court to answer as to his non-exempt property subject to execution or proceedings supplemental to execution or to apply any such specified or unspecified property towards satisfaction of the judgment; and,

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306 F.R.D. 612, 2014 WL 9879991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/symons-international-group-inc-v-continental-casualty-co-innd-2014.