News and Tribune

Floyd County

July 3, 2012

Civil suit against Coffey, Price dismissed

NEW ALBANY — A civil lawsuit against Dan Coffey that accused the New Albany City Councilman of taking an elderly woman’s house through a forged deed has been dismissed by a judge.

Last month, Special Judge Roger Duvall granted in Floyd County Circuit Court a summary judgment in favor of Coffey. He ruled there was no evidence that Marcelene Jahn’s will or property deed were forged.

Coffey held power of attorney over Jahn during the last years of her life before she died at age 77. Jahn’s children filed a tort claim against Coffey, the District 1 councilman, in March of 2011 accusing him of obtaining their mother’s West Seventh Street home by manipulating her will.

Former City Councilman Steve Price was also named in the claim, as he purchased the house from Coffey in 2007 and said last year he was renting out the home.

According to court records, Coffey took control of the Jahn property through a deed dated March 24, 2005. In April 2005, Jahn suffered a heart attack that forced her to a nursing home.

The initial lawsuit alleged Coffey borrowed $15,000 using the home as collateral, and then sold it to Price for an amount below market value. Plaintiffs accused Coffey of using his position of trust with Jahn to gain access to her checking account, mail and food stamps.

The News and Tribune reported on the claims initially in 2007, and no criminal chargers were ever filed against Coffey. Through the tort claim, the family was seeking compensation or ownership of the house.

Coffey and Price stated when the civil suit surfaced they felt the case was politically motivated, as the tort claim was filed just weeks before the May 2011 primary. Coffey’s attorney Rick Fox said Monday he was obviously pleased with the ruling.

“The judge found that there was no evidence before the court to suggest that the deed in question was forged,” he said. “That’s what was alleged ... and they were not able to produce any evidence to the court to suggest that the Jahn deed was forged.”

A message left seeking comment from the Evansville firm Rudolph, Fine, Porter and Jackson that represented the plaintiffs hadn’t been returned as of press deadline Monday.

The parties signed a mutual release and settlement agreement so counter claims will not be pursued against the plaintiff.

“I was asked if I was going to file suit against them,” Coffey said. “I knew their mom extremely well and I don’t think it’s something she would have cared for.”

A default judgment filed by Price against the plaintiffs was denied as part of Duvall’s ruling.

Price — who lost his re-election bid after being defeated in the 2011 primary — said he met with Coffey and agreed not to pursue further action against the plaintiffs.

Price maintained a search by an insurance company revealed the title for the house was clean when he purchased it from Coffey in 2007. He said he had no knowledge of the actions between Coffey and Jahn that led to the property being transferred to Coffey’s ownership.

“I’m glad it’s over with, and I’m just ready to move on,” he said.

 

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