Indiana Law Review U'vu Volume 25 No. 4 1992 1991 Survey of Recent Developments in Indiana Law Special 25th Anniversary Edition Our Bill of Rights The Honorable Justice Lewis F. Powell, Jr. Indiana Law and the Idea of Progress The Honorable Chief Justice Randall T. Shepard Other Contributors to this Issue: Bruce G. Berner Kevin W. Betz Douglass G. Boshkoff Barbara J. Fick Paul J. Galanti Sophia C. Goodman Harold Greenberg Lawrence A. Jegen, HI Henry C. Karlson Eleanor D. Kinney Jeffrey Kolb Walter W. Krieger Vjaneeta M. Kumar Rosalie Berger Levinson John R. Maley Earl D. Mathews Kathleen M. Mulligan George T. Patton, Jr. Peter M. Racher Thomas H. Ristine Michael G. Ruppert Michael E. Schroder Jay Tidmarsh Jeffrey D. Todd John C. Trimble John R. Van Winkle David E. Vandercoy Monty K. Woolsey Career Move. No doubt you plan to start a successful legal career soon, so here's a tip: Start reading Law Week now. While you're still in law school. Why? 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Seamands Articles Editors Note Development Editors Scott R. Alexander Janet M. Charles Frank C. Capozza Rhonda L. Fuller Linda J. Cooley Katherine M. Gilson Mary T. Doherty James P. Leeds Joe Liebeschuetz Jerry L. Siefers, Jr. Jodie L. Miner Courtney N. Stillman .Associate Editors Joseph R. Hillebrand Heather K. dinger Kathryn A. Hillebrands Stephanie L. Paine Julia Bunton Jackson Katherine Coble Pierce Lawrence R. Kemm Charles S. Roach Thomas E. Mixdorf Vickie R. Shaw Laurie S. Morone Sally A. Voland Rebekah N. Murphy Barbara J. Weigel Kathryn W. Williams Editorial Assistant Amy Morrison Grubbs Faculty Advisor Debra A. Falender Indiana Law Review (ISSN 0090-4198) Published four times a year by Indiana University. Editorial and Business Offices are located at: Indiana Law Review 735 W. New York Street Indianapolis, IN 46202 (317) 274-4440 Subscriptions. The current subscription rates are $25.00 per four-issue volume (domestic mailing) and $28.00 (foreign mailing). Unless the Business Office receives notice to the contrary, all subscriptions will be renewed automatically. Address changes must be received at least a month prior to publication to ensure prompt delivery and must include old and new addresses and the proper zip code. Single and Back Issues. Current single regular issues may be obtained from the Law Review Business Office for $8.00. Current Survey issues may be purchased for $17.00. Please enclose payment with order. Complete sets and single issues of prior volumes are also available from the Law Review Business Office. Unless a claim is made for nonreceipt of issues within one year of the mailing date, we cannot guarantee supplying the issues without charge. Manuscripts. The Indiana Law Review invites submission of unsolicited manuscripts. All citations should conform to A Uniform System of Citation (15th ed. 1991). Manuscripts should be triple-spaced with wide margins. The Indiana Law Review, as a matter of policy, promotes the use of gender-neutral language, and alternate use of the female or male pronoun is intended to refer to both female and male. Copyright. All articles Copyright 1992 by The Trustees of Indiana University, except where otherwide indicated. All rights reserved. Opinions expressed are those of the contributor and are not presented as the views of the Indiana Law Review, its editors, or Indiana University School of Law-Indianapolis. Indiana Law Review Volume 25 1992 Number 4 Copyright © 1992 by the Trustees of Indiana University TABLE OF CONTENTS I. 25th Anniversary Selection Our Bill of Rights The Honorable Justice Lewis F. Powell, Jr. (retired). . . 937 II. Foreword Indiana Law and the Idea of Progress The Honorable Chief Justice Randall T. Shepard . . . 943 III. Alternative Dispute Resolution Mediation: An Analysis of Indiana's Court-Annexed Mediation Rule John R. Van Winkle 957 Bankruptcy in the Seventh Circuit: 1991 Douglass G. Boshkoff 981 IV. Business and Commercial Law Indiana Nonprofit Corporation Act Paul J. Galanti 999 Indiana Adds Articles 2A and 4A of the Uniform Commercial Code Harold Greenberg 1029 Developments in Indiana Banking Law Thomas H. Ristine Michael E. Schroder 1059 V. Civil Procedure 1991 Federal Practice and Procedure Update for the Seventh Circuit Practitioner John R. Maley 1073 Recent Developments in Indiana Appellate Procedure: Reforming the Procedural Path to the Indiana Supreme Court George T. Patton, Jr. 1 105 Volume 25 1992 Number 4 ® The entire text of this Law Review is printed on recycled paper. VI. Constitutional Law State and Federal Constitutional Law Developments Affecting Indiana Law Rosalie Berger Levinson 1129 VII. Criminal Law and Procedure Update—Criminal Law & Procedure David E. Vandercoy Bruce G. Berner 1157 VIII. Environmental Law Clean Air Act Amendments Leave Small Business Up In The Air Peter M. Racher 1 183 IX. Evidence Developments in the Law of Evidence . . . Henry C. Karlson Kathleen M. Mulligan Sophia C. Goodman 1213 X. Family Law The Continuing Evolution of Indiana's Family Law in 1991 Michael G. Ruppert Monty K. Woolsey 1243 XI. Health Care Law Indiana Lawmakers Face National Health Policy Issues Vaneeta M. Kumar Eleanor D. Kinney 121 \ XII. Insurance Law Survey of Recent Developments in Insurance Law .... John C. Trimble 1291 XIII. Labor and Employment Law Labor and Employment Law Barbara J. Fick 1311 XIV. Professional Responsibility Survey of Professional Responsibility . Jeffrey D. Todd 1331 j XV. Property and Estates Indiana Power of Attorney Act Jeffrey Kolb 1345 Recent Developments in Property Law Walter W. Krieger 1375 XVI. Taxation 1991 Developments in Indiana Taxation Lawrence A. Jegen, III John R. Maley 1405 XVII. Torts Tort Law: The Languages of Duty Jay Tidmarsh 1419 XVIII. Tables An Examination of the Indiana Supreme Court Docket, Dispositions, and Voting in 1991 Kevin W. Betz 1469 XIV. Twenty-five Year Author Index Earl D. Mathews 1485 Indiana University School of Law—Indianapolis 1991-92 ADMINISTRATIVE OFFICERS AND FACULTY Administrative Officers Thomas M. Ehrlich, President of the University and Professor of Law. LL.B., Harvard University. Gerald L. Bepko, Vice-President, Indiana University; Chancellor, Indiana University- Purdue University at Indianapolis and Professor of Law. J.D., IIT/Chicago-Kent College of Law; LL.M., Yale University. Norman Lefstein, Dean and Professor of Law. LL.B., University of Illinois; LL.M., Georgetown University. Thomas B. Allington, Associate Dean for Academic Affairs and Professor of Law. J.D., University of Nebraska; LL.M., New York University. Arlene G. Anderson, Assistant Dean for Student Affairs. J.D., Indiana University- Indianapolis. Jonna M. Kane, Assistant Dean for External Affairs. J.D., Indiana University-Indianapolis. Joni D. Thompson, Assistant Dean for Development. M.S., Ball State University. Angela M. Espada, Assistant Dean for Admissions. J.D., Indiana University-Bloomington. Faculty Thomas B. Allington, Associate Dean and Professor of Law. B.S., J.D., University of Nebraska; LL.M., New York University. Edward P. Archer, Professor of Law. B.M.E., Rensselaer Polytechnic Institute; J.D., LL.M., Georgetown University. James F. Bailey, III, Professor ofLaw and Director ofLaw Library. A.B., J.D., M.A.L.S., University of Michigan. Gerald L. Bepko, Vice President, Chancellor and Professor of Law. B.S., Northern Illinois University; J.D., IIT/Chicago-Kent College of Law; LL.M., Yale University. Robert Brookins, Associate Professor of Law. B.S., University of Southern Florida; J.D., Ph.D., Cornell University. Daniel H. Cole, Assistant Professor of Law. A.B., Occidental College; A.M., University of Chicago; J.D., Lewis and Clark College; J.S.M., Stanford Law School. Paul N. Cox, Professor of Law. B.S., Utah State University; J.D., University of Utah; LL.M., University of Virginia. Clyde Harrison Crockett, Professor of Law. A.B., J.D., University of Texas; LL.M., University of London (The London School of Economics and Political Science). Debra A. Falender, Professor of Law. A.B., Mount Holyoke College; J.D., Indiana University-Indianapolis. David A. Funk, Professor of Law. A.B., College of Wooster; J.D., Case Western Reserve University; M.A., The Ohio State University; LL.M., Case Western Reserve University; LL.M., Columbia University. Paul J. Galanti, Professor of Law. A.B., Bowdoin College; J.D., University of Chicago. Helen P. Garfield, Professor of Law. B.S.J., Northwestern University; J.D., University of Colorado. Harold Greenberg, Professor of Law. A.B., Temple University; J.D., University of Pennsylvania. Jeffrey W. Grove, Professor of Law. A.B., Juniata College; J.D., George Washington University. Frances W. Hardy, Clinical Assistant Professor of Law. B.S., Ball State University; J.D., Indiana University-Indianapolis. William F. Harvey, Carl M. Gray Professor of Law & Advocacy. A.B., University of Missouri; J.D., LL.M., Georgetown University. Paul T. Hayden, Assistant Professor of Law. B.A., Yale University; J.D., University of California, Los Angeles. W. William Hodes, Professor of Law. A.B., Harvard College; J.D., Rutgers Newark. Lisa C. Ikemoto, Assistant Professor of Law. B.A., University of California, Los Angeles; J.D., University of California, Davis; LL.M., Columbia University. Lawrence A. Jegen, III, Thomas F. Sheehan Professor of Tax Law and Policy. A.B., Beloit College; J.D., M.B.A., The University of Michigan; LL.M., New York University. Henry C. Karlson, Professor of Law. A.B., J.D., LL.M., University of Illinois. William Andrew Kerr, Professor of Law. A.B., West Virginia University; J.D., LL.M., Harvard University; D.B., Duke University. Eleanor D. Kinney, Professor of Law and Director of the Center for Law and Health. B.A., Duke University; M.A., University of Chicago; J.D., Duke University; M.P.H., University of North Carolina. Walter W. Krieger, Associate Professor of Law. A.B., Bellarmine College; J.D., Uni- versity of Louisville; LL.M., George Washington University. Norman Lefstein, Dean and Professor of Law. LL.B., University of Illinois; LL.M., Georgetown University. Deborah McGregor, Lecturer in Law. B.A., University of Evansville; J.D., Georgetown University. William E. Marsh, Professor of Law. B.S., J.D., University of Nebraska. Susanah M. Mead, Professor of Law. B.A., Smith College; J.D., Indiana University- Indianapolis. Mira Mihajlovich, Lecturer in Law. B.A., Indiana University; M.P.A., University Texas; J.D., Indiana University-Bloomington. Mary H. Mitchell, Professor of Law. A.B., Butler University; J.D., Cornell Law School. James P. Nehf, Assistant Professor of Law. B.A., Knox College; J.D., University of North Carolina. Thomas R. Newby, Lecturer in Law. A.B., J.D., Indiana University-Bloomington. Kimberly E. O'Leary, Clinical Assistant Professor of Law. B.A., Oberlin College; J.D., Northwestern University. David R. Papke, Professor of Law and American Studies. A.B., Harvard College; J.D., Yale University; M.A. in American Studies, Yale University; Ph.D. in American Studies, The University of Michigan.* Ronald W. Polston, Professor of Law. B.S., Eastern Illinois University; LL.B., University of Illinois. Joan M. Ruthenberg, Director of Legal Writing. B.A., Mississippi University for Women; J.D., Indiana University-Indianapolis. Andrew T. Soloman, Lecturer in Law. A.B., University of Michigan; J.D., Boston University. Kenneth M. Stroud, Professor of Law. A.B., J.D., Indiana University-Bloomington. James W. Torke, Professor of Law. B.S., J.D., University of Wisconsin. Joanne Orr Van Pelt, Visiting Assistant Professor. J.D., California Western. James Patrick White, Professor of Law and Consultant on Legal Education to the American Bar Association. A.B., University of Iowa; J.D., LL.M., George Washington University. Lawrence P. Wilkins, Professor of Law. B.A., The Ohio State University; J.D., Capital University Law School; LL.M., University of Texas. Mary T. Wolf, Director of Clinical Programs. B.A., Saint Xavier College; J.D., University of Iowa College of Law. Emeriti Agnes P. Barrett, Associate Professor Emerita. B.S., J.D., Indiana University. Cleon H. Foust, Professor Emeritus. A.B., Wabash College; J.D., University of Arizona. John S. Grimes, Professor of Jurisprudence Emeritus. A.B., J.D., Indiana University. Melvin C. Poland, Cleon H. Foust Professor of Law Emeritus. B.S., Kansas State University; LL.B., Washburn University; LL.M., University of Michigan. R. Bruce Townsend, Cleon H. Foust Professor of Law Emeritus. A.B., Coe College; J.D., University of Iowa. Adjunct Faculty Cynthia M. Adams, J.D., Indiana University-Indianapolis. Richard P. Good, J.D., Indiana University-Indianapolis. Ralph F. Hall, J.D., University of Michigan. Grant W. Hawkins, J.D., Indiana University-Indianapolis. Thomas Q. Henry, J.D., Indiana University-Indianapolis. Swadesh S. Kalsi, LL.M., George Washington University. Larry A. Landis, J.D., Indiana University-Indianapolis. Jane Magnus, J.D., Indiana University-Indianapolis. Sharon F. Murphy, J. D., Indiana University-Indianapolis. Laura C. Nehf, J.D., University of Georgia. Gary P. Price, J.D., Indiana University-Indianapolis. Thomas R. Ruge, J.D., Valparaiso University. Geoffrey Segar, J.D., Indiana University-Bloomington. Patricia P. Wagner, J.D., Indiana University-Indianapolis. Law Library Faculty James F. Bailey III, Professor and Director of Law Library. A.B., J.D., M.A.L.S., University of Michigan. Minde C. Glenn, Assistant Director for Readers' Services. B.A., Western Michigan University; M.L.S., Indiana University. Wendell E. Johnting, Catalog Librarian. A.B., Taylor University; M.L.S., Indiana University. Mahnaz K. Moshfegh, Acquisition/Serials Librarian. B.A., National University of Iran; M.S., Tehran University; M.A., Ball State University; M.L.S., Ph.D., Indiana Uni- versity. Kiyoshi Otsu, Computer System Specialist and Catalog Librarian. A.A., Parkland College; A.B., M.S., C.A.S., University of Illinois.** Terence L. Rose, Reference Librarian. B.G.S., M.L.S., University of Michigan. * On leave 1991-92. ** On leave at Tenri University, Nara, Japan, 1991-92. Editors Note This year marks the 25th anniversary of the Indiana Law Review, and in celebration of this event, the editors of the Review present this special anniversary issue of the Survey ofRecent Developments in Indiana Law. In addition to the annual in-depth analysis of changes in Indiana law, it is fitting that this anniversary issue also contains two historical retrospectives examining the evolution of both federal and Indiana ju- risprudence. First, we are honored to publish a speech written by the Honorable Lewis F. Powell, Jr., Associate Justice of the United States Supreme Court (retired). The speech was delivered at the American Bar Association conference held in Williamsburg, Virginia on December 17, 1991 to commemorate the 200th anniversary of the Bill of Rights. In his remarks, Justice Powell eloquently traces the development of the Bill of Rights and reminds us that "it might have been otherwise." Also, we are very pleased that the Honorable Randall T. Shepard, Chief Justice of the Indiana Supreme Court, accepted our invitation to write the foreword to this year's Survey Issue. Chief Justice Shepard provides an insightful historical analysis of Indiana law during two periods (from statehood through the nineteenth century and from World War I to the present), highlighting the progressive nature of Indiana's legal evolution. This year's Survey of Recent Developments in Indiana Law also includes articles written by faculty members of the Indiana University School of Law—Indianapolis, Indiana University School of Law—Bloom- ington, Valparaiso University School of Law, and the University of Notre Dame School of Law, as well as articles written by several distinguished practitioners. We trust that you will find their articles engaging, in- formative, and helpful. As the Board of Editors completes this silver anniversary issue, we do so with the hope that during the next twenty-five years of its history, the Indiana Law Review will continue to make a significant contribution both to the development of Indiana law and to the critical and creative dialogue concerning law generally. By providing a forum for debate on current legal issues, we hope the Review will continue to play a vital role in legal discourse into the 21st century. Jan S. Blaising Executive Articles Editor Indiana Law Review