Arguments Not Made Below Are Waived
BROADDUS v. SHIELDS (December 21, 2011)
As of 2001, Bret Broaddus and Kevin Shields were partners in Will Partners, LLC. Broaddus was in a bad car accident in November of that year. Between February and September 2002, a legal guardian conducted Broaddus' affairs. In early 2003, Shields purchased Broaddus’ interest in Will Partners for $600,000. In May 2008, Broaddus brought suit against Shields for breach of fiduciary duty, alleging that Shields lied to him about the company’s financial health. The suit was filed five years and two months after the sale. Shields moved for summary judgment on statute of limitations grounds. Judge St. Eve (N.D. Ill.) granted the motion, rejecting Broaddus’ invocation of the discovery rule. The court also granted summary judgment to Shields on his counterclaims for contractual indemnification and fee shifting. The court awarded approximately $800,000 in attorneys fees. Broaddus appeals.
In their opinion, Seventh Circuit Judges Flaum and Manion and District Judge Magnus-Stinson affirmed. The Court first concluded that Broaddus waived his legal disability argument in that he raised it for the first time on appeal. The Court also concluded that Broaddus waived his discovery rule argument. Although he raised and argued it in the district court, he did not raise it in his opening brief on appeal. The Court also rejected the discovery rule argument on its merits. Broaddus had the burden of proving the date of discovery. His evidence on that point was generally inadmissible and unreliable. Turning to the counterclaims, the Court noted that Broaddus’ sole argument was that his agreements to indemnify Shields only applied to third party claims. Relying on the contractual language, the general definition of indemnify, and Delaware law, the Court agreed with the district court that the indemnification provisions were enforceable. Finally, the Court found Broaddus’ challenges to the fee award without merit.
Christopher Moreland was arrested on a drunk driving charge in 1997. While in jail, he was beaten to death. His estate filed suit, pursuant to § 1983, against three jail officers. In May of 2002, a jury returned a verdict against two of the officers for $29 million in compensatory and $27.5 million in punitive damages. The jury deadlocked in the case against the third officer. A defense verdict was returned after a September 2003 retrial. In July of 2003, Indiana amended its statute governing the indemnification of government employees. Prior to the amendment, indemnification was discretionary. After the amendment, indemnification for non-punitive damages became mandatory. In 2007, Moreland's estate filed a motion for a writ of execution to collect the award of compensatory damages from St. Joseph County. The district court denied the motion. The Estate appeals.