Indiana Law Review Indiana law Review Volume 21 No. 1 1988 1987 Survey of Recent Developments In Indiana Law Contributors to This Issue James W. Clark Francina A. Dlouhy Leonard E. Eilbacher Mary A. Findling Paul J. Galanti Barbara J. Germano Harold Greenberg James W. Hehner Andrew W. Hull Donald L. Jackson John L. Kellam J. B. King Walter W. Krieger George Pendygraft George M. Plews Richard Pitts James A. Reed Danielle Gates Sheff Mark R. Smith Theodore F. Smith, Jr. Carolyn W. Spengler Robert W. Strohmeyer, Jr. Susan Stuart William H. Thompson Scott A. Weathers Peter C. Wright LW REVIHAS ^^^^ k nr Search thousands of law review and bar journal / 1 \ articles effortlessly on WESTl^W! It's lite hav^ I 1 \ ^ ^^^ ^^ experts always at your command. Tb m f \ answer your questions on taxation. Business ^^^^ J L 1 Regulation. Bankruptcy. Securities. And more! WKILW! DALE A CHRIST ESQ ^^^ relcvant articles instantly. 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INDIANA LAW REVIEW INDIANA UNIVERSITY SCHOOL OF LAW -INDIANAPOLIS 735 West New York Street Indianapolis, Indiana 46202 Subscription Rates (one year): Regular, $22; Foreign, $25; Survey, $12; Single Issue, $7 Indiana Laiiv Revieiv Volume 21 1988 Number 1 Copyright © 1988 by the Trustees of Indiana University TABLE OF CONTENTS Acknowledgment xi I. Business and Commercial Law A. Developments in Business Association Law: CTS Cor- poration V. Dynamics Corporation of America Paul J. Galanti 1 B. Vertical Privity and Damages for Breach of Implied Warranty Under the U.C.C.: It's Time for Indiana to Abandon the Citadel Harold Greenberg 23 II. Civil Procedure A. Pre-trial Discovery of Trial Preparation Materials Pre- pared, and Non-testifying Experts Retained, in Anticipation of Prior Litigation. Andrew W. Hull 57 B. The ^'Savings" Clause of Trial Rule 60(B): Muddy Waters? Scott A. Weathers 73 III. Criminal Law A. White V. State: And Now for Something Different Susan Stuart Richard Pitts 85 IV. Environmental Law A. Who Pays for Environmental Damage: Recent Develop- ments in CERCLA Liability and Insurance Coverage Litigation George Pendygraft George M. Plews James W, Clark Peter C. Wright 117 Volume 21 Winter 1988 Number 1 The INDIANA LAW REVIEW (ISSN 0090-4198) is the property of Indiana University and is published quarterly by the Indiana University School of Law—Indianapohs, which assumes complete editorial responsibilty thereof. Subscription rates: one year $22; foreign $25. Please notify us one month in advance of any change in address and include both old and new addresses with zip codes to ensure delivery of all issues. Send all correspondence to Editorial Assistant, Indiana Law Review, Indiana University School of Law—Indianapolis, 735 West New York Street, Indianapolis, Indiana 46202. Publication office: 735 West New York Street, Indianapolis, Indiana 46202. Second class postage paid at Indianapolis, Indiana 46201. POSTMASTER: Send address changes to INDIANA LAW REVIEW, 735 West New York Street, Indianapohs, Indiana 46202. V. Family Law A. Family Law Survey James A. Reed 159 VL Health Care Law A. Indiana's New Health Care Consent Act: A Guiding Light for the Health Care Provider William H. Thompson 181 VIL Insurance Law A. Underinsurance in Indiana: An Illusion of Coverage? Mary A. Findling Barbara 7. Germano 205 B. The Indiana Insurance Guaranty Association Act: More Problems Than Protection James W. Hehner Mark R. Smith 223 VIII. Judicial Reform A. The Indiana Judicial System: An Analysis of Change John L. Kellam 213 IX. Professional Responsibility A. Developments in Professional Responsibility Donald L. Jackson 291 B. Indiana Rules of Professional Conduct: A Comparison with the Old Code Danielle Oates Sheff Fran Quigley 307 X. Property Law A. Property Survey 1987 Walter W. Krieger 343 XI. Social Security A. Developments in Social Security Law Theodore F. Smith, Jr. 367 XII. Tax Law A. Significant Developments in Indiana Taxation Francina A. Dlouhy JB. King 383 XIII. Tort Law A. Nonparty Tortfeasors in Indiana: The Early Cases .Leonard E. Eilbacher 413 B. Loan Receipt Agreements Revisited: Recognizing Sub- stance Over Form Robert W. Strohmeyer, Jr. 439 XIV. Workmen's Compensation A. Hansen v. Von Duprin: Have the Floodgates Opened to Workmen's Compensation Claims? Carolyn W. Spengler 453 Indiana l^a\¥ Revieiv Volume 21 1988 Editor-in-Chief Ellen M. White Executive Editors Articles and Production Notes and Topics Kristin A. Mulholland John R. Maley Articles Editors Margo Eckard Scott Bruning Stahl Marcia K. Icenogle Ron Weisenberger Michael D. Wright Business Editor D. Michael Young Note and Development Editors Leslie Cracraft Stephen C. Hombach Michael P. Dugan Kevin R. Kaster David H. Eyke John G. Shubat Associate Editors Jay D. Benjamin Mary Jane Harmon Lyn K. Berkebile Amy Link Karozos David Berry Michael McNelis Duane R. Denton Patrick D. Murphy Richard R. Dykhouse Fran Quigley Teresa Eppley Clifford T. Rubenstein Robert C. Feightner James Schrier Edwin W. Free III Douglas Taylor Ronald Gorsline Jeffrey Townsend Kathryn S. Hall James Waanders Rebecca Wehling Editorial Assistant Amy Morrison Grubbs Faculty Advisor Paul J. Galanti Indiana University School of Law—Indianapolis 1987-88 ADMINISTRATIVE OFFICERS AND FACULTY Administrative Officers Thomas M. Ehrlich, LL.B., President of the University Gerald L. Bepko, L.L.M., Vice-President Norman Lefstein, LL.M., Dean James F. Bindley, J.D., Assistant Dean for Administration G. Kent Frandsen, J.D., Associate Dean for Student Affairs James W. Torke, J.D., Acting Associate Dean for Student Academic Affairs Faculty Thomas B. Allington, Professor. B.S., University of Nebraska, 1964; J.D., 1966; LL.M., New York University, 1971. Edward P. Archer, Professor. B.M.E., Rensselaer Polytechnic Institute, 1958; J.D.., Georgetown University, 1962; LL.M., 1964. James F. Bailey, III., Professor and Director of Law Library. A.B., University of Michigan, 1961; J.D., 1964; M.A.L.S., 1970. James F. Bindley, Assistant Dean for Administration and Director of Placement & Develop- ment, B.A., Loyola University, 1969; J.D., University of Kentucky, 1972. Paul N. Cox, Professor. B.S., Utah State University, 1971; J.D., University of Utah, 1974; LL.M., University of Virginia, 1980. Clyde Harrison Crockett, Professor. A.B., University of Texas, 1962; J.D., 1965; LL.M., University of London (The London School of Economics and Political Science), 1972. Debra a. Falender, Professor. A.B., Mount Holyoke College, 1970; J.D., Indiana Univer- sity, 1975. G. Kent Frandsen, Associate Dean for Student Affairs and Associate Professor. B.S., Bradley University, 1950; J.D., Indiana University. 1965. David A. Funk, Professor. A.B., College of Wooster, 1949; J.D., Case Western Reserve University, 1951; M.A., The Ohio State University 1968; LL.M., Case Western Reserve University, 1972; LL.M., Columbia University, 1973. Paul J. Galanti, Professor. A.B., Bowdoin College, 1960; J.D., University of Chicago, 1963. Helen P. Garfield, Professor. B.S.J., Northwestern University, 1945; J.D., University of Colorado, 1967. Harold Greenberg, Associate Professor. A.B., Temple University, 1959; J.D., University of Pennslyvania, 1962. Jeffrey W. Grove, Professor. A.B., Juniata College, 1965; J.D., George Washington Univer- sity, 1969. William F. Harvey, Carl M. Gray Professor of Law. A.B., University of Missouri, 1954; J.D., Georgetown University, 1959; LL.M., 1961. W. WiLLDy^ Hodes, Professor. A.B., Harvard College, 1966; J.D. Rugters Newark, 1969. Lawrence A. Jegen, III., Thomas F. Sheehan Professor of Tax Law and Policy, 1982. A.B., Beloit College, 1956; J.D., The University of Michigan 1959; M.B.A., 1960, LL.M., Harvard University, 1963. Henry C. Karlson, Professor. A.B., University of Illlinois, 1965; J.D., 1968; LL.M., 1977. William Andrew Kerr, Professor. A.B., West Virginia University, 1955. J.D., 1957, LL.M., Harvard University, 1958; B.D., Duke University, 1968. Eleanor D. Kinney, Assistant Professor. A.B., Duke University, 1969; M.A., University of Chicago, 1970; J.D., Duke University, 1973. Walter W. Krieger, Associate Professor. A.B., Bellarmine College, 1959; J.D., University of Louisville, 1962; LL.M., George Washington University, 1969. David P. Leonard, Professor. B.A., University of California at San Diego, 1974; J.D., UCLA School of Law, 1977. Robin Paul Malloy, Associate Professor. B.S., Purdue University, 1971; J.D., University of Florida, 1980; LL.M., University of Illinois, 1983. Wblldvm E. Marsh, Professor. B.S., University of Nebraska, 1965; J.D., 1958. SusANAH M, Mead, Associate Professor. B.A., Smith College, 1969; J.D., Indiana University, 1976. Mary H. Mitchell, Associate Professor. A.B., Butler University, 1975; J.D., Cornell Law School, 1978. David R. Papke, Associate Professor. A.B., Harvard College, 1969; J.D., Yale Law School, 1973; M.A., in American Studies, Yale University, 1973; Ph.D., in American Studies, The University of Michigan, 1984. Ronald W. Polston, Professor. B.S., Eastern Illinois University, 1953; LL.B., University of Illinois, 1958. Kenneth M. Stroud, Professor. A.B., Indiana University, 1958; J.D., 1961. James W. Torke, Acting Associate Dean. B.S., University of Wisconsin, 1963; J.D., 1968. Joe a, Tlicker, Assistant Professor. B.A., Houston, 1977; J.D., University of Texas, 1981. James Patrick White, Professor of Law. A.B., University of Iowa, 1953; J.D., 1956; LL.M., George Washington University, 1959. Lawrence P. Wilkins, Professor. B.A., The Ohio State University, 1968; J.D., Capital University Law School, 1973; LL.M., University of Texas School of Law, 1974. Mary Wolf, Visiting Assistant Professor of Law, B.A., Saint Xavier College, 1969; J.D., University of Iowa College of Law, 1974. Harold R. Woodard, Professorial Lecturer. B.S., Harvard University, 1933; J.D., 1936. Emeriti Agnes P. Barrett, Associate Professor Emeritus. B.S., Indiana University, 1942; J.D., 1964. Cleon H. Foust, Professor Emeritus. A.B., Wabash College, 1928; J.D., University of Arizona, 1933. John S. Grimes, Professor of Jurisprudence Emeritus. A.B., Indiana University. 1929; J.D., 1931. Melvin C. Poland, Cleon H. Foust Professor of Law Emeritus. B.S., Kansas State University, 1940; LL.B., Washburn University, 1949; LL.M., The University of Michigan, 1950. R. Bruce Townsend, Cleon H. Foust Professor of Law Emeritus, A.B., Coe College, 1938; J.D., University of Iowa, 1940. Legal Writing Instructors Cynthla Adams, B.A., Indiana State University, 1976; B.A., Kentucky Wesleyan College, 1977; J.D., Indiana University, 1983. Robert L, Ellis, B.A., Ohio State University, 1971; J.D., Antioch School of Law, 1981. Vickie Renfrow, Lecturer, B.A., University of Northern Iowa, 1970; M.A., 1971; Ph.D., Indiana University, Bloomington, 1976; J.D., Indiana University, Bloomington, 1981. Joan Ruhtenberg, Lecturer. B.A., Mississippi University Women, 1959; J.D., Indiana Univer- sity, 1980. Law Library Staff Terri Lea Hardin, Affiliate Librarian, B.A., Indiana University, 1982; M.L.S., 1983. Mary P. Hudson, Assistant Librarian, B.A., Ball State, 1969; M.L.S., Indiana University, 1973. Wendell F. Johnting, Technical Services Librarian. A.B., Taylor University, 1974; M.L.S., Indiana University. 1975. KiYOSKi Otsu, Assistant Librarian, Parkland College, A.A., 1976; A.B., University of Illinois, 1980; M.S., 1982; C.A.S., 1983. Acknowledgement The Board of Editors of the Indiana Law Review welcomes Dean Norman Lefstein to the Indiana University School of Law—Indianapolis. Dean Lefstein left his position as professor of law at the University of North Carolina to become Dean, effective January 1, 1988. After engag- ing in private practice in Chicago for several years, Dean Lefstein served as an Assistant United States Attorney, as a Project Director for the National Conference of Juvenile Court Judges, and as a staff attorney with the Deputy Attorney General of the United States. He has also served as Director of the Public Defender Service for the District of Columbia and has held visiting appointments at Duke University School of Law and Hebrew University in Jerusalem. The Board of Editors would also like to acknowledge the work of Jeffrey W. Grove, who occupied the position of Acting Dean prior to Dean Lefstein's appointment. His leadership and dedication provided needed stability during a period of change at our school. Board of Editors Indiana Law Review