Ill. High Court Tosses Out Fraud Claim

The Illinois Supreme Court has reversed an appellate court decision and reconfirmed that deceptive advertising cannot be the proximate cause of damages under the Illinois Consumer Fraud Act (ICFA) unless it actually deceives the plaintiff.

The judgment came in the class-action case of Shannon v. Boise Cascade, in which several homeowners claimed that Boise Cascade, a manufacturer of wood siding, had practiced consumer fraud and deceptive business practices in advertising that its product was of good quality although the plaintiffs experienced problems with the product.

However, all plaintiffs reportedly admitted they had not received any representation from Boise Cascade and that in fact some of them had purchased homes with the siding already installed.

The original trial court entered a summary judgment for Boise Cascade, the appellate court reversed, and the Illinois Supreme Court vacated the appellate court's judgment. However, the appellate court then reissued its pervious opinion in full.

In its amicus brief, the Des Plaines, Ill.-based Property Casualty Insurance Association of America (PCI) maintained that the appellate court's decision would not only create a windfall for people who were not misled or deceived in any way, but would eliminate sensible limits that courts and legislatures have placed on false advertising claims, calling the appellate court's interpretation "akin to a 'six degrees of separation' theory of causation."

The Supreme Court reversed the appellate court decision, stating that there was no genuine issue of material fact that the plaintiffs were damaged because of Boise Cascade's alleged deceptive advertising and reaffirmed the original court's summary judgment for the defendant on the consumer fraud count.

Toledo Man Gets 30 Days for Comp Fraud

A Toledo man has been sentenced to 30 days in jail for committing workers' compensation fraud, according to the Ohio Bureau of Workers' Compensation. William Douglas was sentenced to 30 days jail time, two years community control, court costs and restitution in the amount of $2,534.76.

BWC's special investigations unit (SIU) was alerted by an automated detection and intelligence team search that showed Douglas was receiving wages while collecting workers' compensation benefits. During the investigation, the SIU revealed that Douglas was an employee at Atlas Paving, Raceway Park and Cappelletty Asphalt Repair.

Douglas' original injury occurred in June 2000. He worked for Foster Wheeler Zach where he lost footing at a construction site and twisted his back. BWC allowed the claim and began providing him temporary total benefits and 30 days of living maintenance.

In fiscal year 2003, BWC's SIU uncovered $102 million in savings from fraudulent activity. There were 130 convictions. The average take in a fraudulent workers' compensation case is $35,000.

Ind. Lawyer Charged With 28 Counts of Insurance Fraud

An Indiana lawyer is charged with submitting unauthorized claims to a health insurer, according to the Associated Press.

Karon Perkins, 44, of Columbus, Ind., was charged with 28 counts of insurance fraud for allegedly claiming to work for a company that was actually a client of hers and then submitting health insurance claims.

Columbus police have issued a warrant for her arrest on the Class D felony charges, each punishable by six months to three years in prison and up to a $10,000 fine.

Perkins has been a lawyer in private practice in Columbus for 20 years and is a public defender in Indianapolis. Perkins, an attorney for 20 years, is a public defender in Indianapolis and practices law in Columbus, about 50 miles south.

Perkins, who wasn't reached for comment by the AP, told a client she had a stroke and a heart attack and had no health insurance. The client, William F. Brown, asked his employer, AMT, to add Perkins as an employee so she could be covered, according to court documents.

Perkins later added her daughter to the policy, according to Brown, and she asked him to lie about her employment with the company if asked by the health insurer, the Southeastern Indiana Health Organization.