$3.6 Million Verdict Won for Lite Machines Corp. in Legal Malpractice Case

Lite Machines Corp. v. Brent E. Clary, Roger W. Bennett, and Bennett, Boehning & Clary. 
Tippecanoe Superior Court No. 2, Cause No. 79D02-0012-CT-61.

Date: June 1 to June 10, 2004.
Judge or Jury Trial: Jury trial
Judge: Special Judge Steve David, Boone Circuit Court.
Disposition: $3,612,574.
Plaintiff’s Attorneys: Ronald J. Waicukauski and Carol A. Nemeth, Price Waicukauski & Mellowitz, PC.
Defendants’ Attorneys: David Kasper and Dean Brackenridge, Locke Reynolds LLP

Case Information:
The plaintiff, Lite Machines Corp. (“Lite”), brought a legal malpractice claim against the defendants, Brent E. Clary, Roger W. Bennett, and the Lafayette law firm of Bennett, Boehning & Clary (“BB&C”).  The malpractice claim arose out of BB&C’s representation of Lite in a prior lawsuit brought by Lite against Techno, Inc. (the “Techno Case”). 

Lite had purchased a computer-controlled machine made by Techno to use in manufacturing radio-controlled model helicopters in its start-up business.  The Techno machine was defective, causing Lite to suffer damages including lost profits.  In the Techno Case, following a bench trial in the Tippecanoe Superior Court, the court found that Lite sustained approximately $2.6 million in lost profits but found in favor of Techno on its mitigation of damages defense and awarded only $260,000 to Lite. 

In the malpractice lawsuit, Lite presented evidence that BB&C had failed in the Techno Case to address appropriately the mitigation of damages defense.  Lite alleged that with respect to the mitigation issue, BB&C failed to perform adequate legal research, failed to take needed depositions, failed to cross-examine the opposing expert witness, and failed to present rebuttal evidence or argument.

 Lite also alleged that after the entry of judgment in the Techno Case, BB&C violated its fiduciary duty to Lite and committed conversion by depositing the Techno Case judgment check of $260,000 (plus post-judgment interest) in BB&C’s trust account without Lite’s consent and in violation of Lite’s instructions to the contrary.   BB&C’s actions caused the judgment funds to be withheld from Lite for more than a year, resulting in further damages to its business.  

Following an eight-day trial, the jury returned a verdict in favor of Lite in the amount of $3,612,574. 

I certify that I have sent a copy of this report, via e-mail, to opposing counsel on July 12, 2004.
      

Signed,

Ronald J. Waicukauski