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Friday, September 09, 2005

Ind. Courts - Tomisue and Stephen Hilbert attend Court of Appeals arguments in Terre Haute

"Hilbert takes case to appeals judges: Ex-CEO attends hearing in Muncie, seeks jury trial related to Conseco debts" reads the headline today to the J.K. Wall story in the Indianapolis Star business section. Some quotes:

MUNCIE, Ind. -- Stephen and Tomisue Hilbert shook hands with the Indiana Court of Appeals judges and thanked them after the judges heard oral arguments in Stephen Hilbert's megamillion-dollar dispute with the company he founded, Conseco Inc.

Hilbert hopes judges Patricia Riley, Carr Darden and Paul Mathias overturn a $72 million judgment against him and grant him a jury trial in Hamilton County court.

"We thank the judges of the appeals court for taking the time to hear oral arguments," said Hilbert, dressed in a navy pinstriped suit and sporting a summer tan. "We're confident." * * *

More than 500 people filed into the lecture hall to hear the arguments, which made front-page news Thursday in the student newspaper. Backpacks outnumbered briefcases, as most attendees were students on class assignments. For educational purposes, the appeals court regularly hears cases outside Indianapolis.

The case concerns interest Conseco paid on Hilbert's behalf on more than $162 million in company-backed loans he used to buy Conseco stock. Hilbert has repaid little of the more than $240 million in principal and interest he allegedly owes.

The loan program was created in 1996 at the direction of Hilbert, who was Conseco's chairman and chief executive until 2000. Conseco, since emerging from bankruptcy reorganization in 2003, has tried to recover the full debt of only the largest 11 borrowers.

More than 150 employees participated in the program. Hilbert was the largest borrower.

In October 2004, Hamilton County Judge Judith S. Proffitt ordered Hilbert to pay the interest, $72 million at the time, without granting him a jury trial. Hilbert appealed Proffitt's ruling and won a stay until the appeals judges make a decision.

The Ball State Daily News has this report, headlined "BSU views Court of Appeals process: Audience hears oral arguments in Hilbert v. Conseco." Some quotes:
“I’m pleased so many attended this time,” Michael Spillman, instructor of telecommunications, said.

Among spectators, Hilbert, who was not required to be there, sat alongside his wife, Tomisue. “The campus is beautiful,” Tomisue Hilbert said. ”It’s another great university in Indiana.”

Hilbert said he was pleased with his counsel’s performance during the session. “We have to thank the appellate judges for listening to the oral arguments,” he said. “Hopefully, the judges will make a decision that will allow us to get our day in court.” * * *

Spillman said the last case the Indiana Court of Appeals heard at Ball State, which concentrated on privacy issues, did not have as wide of an appeal as this case. “We certainly had more people attend,” he said.

More than 300 people came to the event. Mathias, who heard Lee v. State of Indiana at Ball State in March, said he was impressed with the students and facilities at the university.

“Students came well-prepared and were properly respectful,” he said. “It’s not easy to come to grips with the facts presented in this case.”

For background, see this ILB entry from Tuesday, titled "State appeals court to hear case at Ball State."

Posted by Marcia Oddi on September 9, 2005 06:37 AM
Posted to Indiana Courts