City of Columbus v. Debra A. Londeree and Dan Londeree

Indiana Court of Appeals·Decided March 26, 2020·No. 19A-CT-1228·Published

Opinion

FILED

Mar 26 2020, 9:11 am

CLERK

Indiana Supreme Court

Court of Appeals

and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEES Rosemary L. Borek Karl L. Mulvaney James S. Stephenson Nana Quay-Smith Stephenson Morow & Semler, P.C. Dentons Bingham Greenebaum Indianapolis, Indiana LLP Indianapolis, Indiana

R.T. Green

Kellie C. Clark

Collin W. Green

Blackburn & Green

Indianapolis, Indiana

IN THE

COURT OF APPEALS OF INDIANA

City of Columbus, March 26, 2020 Appellant/Cross-Appellee-Defendant, Court of Appeals Case No.

19A-CT-1228

v. Appeal from the Bartholomew Circuit Court Debra A. Londeree and Dan The Honorable Londeree, Kelly S. Benjamin, Judge Appellees/Cross-Appellants-Plaintiffs. Trial Court Cause No.

03C01-1801-CT-223

Kirsch, Judge.

[1] In this permissive interlocutory appeal, the City of Columbus (“the City”) appeals the trial court’s denial of its motion for summary judgment on Debra A. Court of Appeals of Indiana | Opinion 19A-CT-1228 | March 26, 2020 Page 1 of 18

Londeree’s (“Debra”) personal injury lawsuit, and, on cross appeal, Dan Londeree (“Dan”), challenges the trial court’s granting of the City’s motion for summary judgment against his loss of consortium claim. On appeal, the City raises two issues, which we consolidate and restate as whether there are material issues of fact about whether the City can be estopped from raising an affirmative defense against Debra’s personal injury claim. On cross appeal, Dan raises one issue, which we restate as whether the trial court erred in granting summary judgment on his loss of consortium claim because that claim is derivative of Debra’s personal injury claim.

[2] We reverse in part, affirm in part, and remand.

Facts and Procedural History [3] On January 16, 2016, Debra was standing in the parking lot of the Foundation

for Youth of Bartholomew County (“FFY”) when she slipped and fell because the parking lot was icy. Appellant’s App. Vol. II at 13. Before leaving FFY’s premises, Debra filed an incident report with FFY. Id. at 75. On January 25, 2016, Debra called the City’s Finance Operations and Risk Office (“Risk Office”) about her fall; however, she was told the City had not received the incident report that she had filed with FFY. Id. About three weeks after Debra’s fall, Colleen Stone (“Stone”), a City employee, called Debra and told her that “the insurance company would contact [her].” Id. The City’s insurance carrier was Tokio Marine Insurance, HHC (“Tokio Marine”), and FFY’s insurance carrier was Cincinnati Insurance. Id. at 93, 122.

[4] About one week after she spoke to Stone, Debra received a call from Lori Dixon (“Dixon”), a field claims superintendent with Cincinnati Insurance, FFY’s insurer. Id. at 75, 122. Dixon had received a copy of the incident report. Id. at 112. Dixon did not work for the City or its insurer, Tokio Marine, and she did not tell Debra that she was acting on behalf of the City or Tokio Marine. Id. at 123, 143-144, 147. Any correspondence sent by Dixon identified FFY, not the City, as the entity holding the policy with Cincinnati Insurance. Id. at 123, 145, 149. Nonetheless, Debra believed Dixon was contacting her on behalf of the City. Id. at 75. Dixon recognized that Debra seemed confused about how to pursue her claim. Id. at 124. Debra relied on Dixon to know what was required to settle her claim. Id. at 76. Debra did not retain legal counsel until much later based on her interactions with Dixon, which led her to believe that filing the incident report was sufficient. Id.

[5] Debra and Dixon communicated many times. Id. at 76, 120. At Dixon’s request, Debra gave a recorded statement. Id. at 112. Dixon visited the site of the incident and spoke to FFY to conduct a full investigation. Id. at 113-14. Per Dixon’s request, Debra signed a medical authorization and sent Dixon medical bills for payment.1 Id. at 76.

[6] Early in her investigation, Dixon began to believe that FFY had no responsibility for Debra’s injuries, but that the City might bear some liability for

1 Cincinnati Insurance eventually paid a total of $5,000.00 for Debra’s medical bills, the limit under its medical pay coverage, which was available without regard to liability. Id. at 119, 145-46.

Court of Appeals of Indiana | Opinion 19A-CT-1228 | March 26, 2020 Page 3 of 18

Debra’s injuries because the City provided snow removal services for FFY. Id. at 114, 118-20. Dixon did not share these opinions with Debra until much later. In the meantime, Dixon advised Debra that they had two years to settle her claim before the statute of limitations would run. Id. at 116. Dixon advised Debra about her right to seek counsel. Id. at 116. Dixon never spoke to an adjuster from the City’s insurance carrier, Tokio Marine, about Debra’s claim against FFY. Dixon had no contact with Dan. Id. at 146.

[7] On November 16, 2016, about ten months after Debra’s fall, Dixon mailed a letter to Debra, stating that FFY was neither negligent nor liable for Debra’s injuries. Id. at 76, 117-19, 139, 149. The letter was mailed approximately four months after the deadline for Debra to file a notice of tort claim with the City.2 After receiving Dixon’s letter, Debra left messages for Jaime Brinegar at the City’s Risk Office, and she also continued to contact Dixon. Id. at 76. Neither Debra nor Dan served a tort claim notice on the City within 180 days after Debra fell on January 16, 2016. Id. at 176.

[8] On January 16, 2018, Debra and Dan filed a complaint against both FFY and the City for Debra’s injuries from the fall at FFY and Dan’s loss of consortium resulting from Debra’s injuries. Id. at 13-15. In its answer, the City raised an affirmative defense (“the notice defense”), claiming that both Debra’s and Dan’s claims were barred because neither complied with the 180-day notice

2 See Ind. Code § 34-13-3-8(a).

requirement of the Indiana Tort Claims Act “(ITCA”). Id. at 16-19. On August 24, 2018, the City filed a motion for summary judgment, again raising the notice defense under Indiana Code section 34-13-3-8(a) and asking the trial court to dismiss both Debra’s and Dan’s claims. Id. at 20-21.3 In their response, Debra and Dan argued that the City should be estopped from claiming that both Dan and Debra failed to comply with the ITCA’s notice requirement because Debra had detrimentally relied on the acts of both the City and FFY in not obtaining counsel and not pursuing a claim until after the time limit under the ITCA had expired. Id. at 73-84. After conducting a hearing, the trial court denied the City’s motion for summary judgment against Debra’s claim, even though Debra did not file a timely notice as required by the ITCA. Id. at 181. The trial court explained that there were material issues of fact regarding: (1) Debra’s understanding of the relationship between FFY and the City; and (2) whether her reliance on the representations of both FFY and the City was reasonable. Id. at 178-81. The trial court found that these questions of fact also created issues of fact about whether the City should be estopped from raising the notice defense.

The undisputed facts lead to conflicting material inferences sufficient to create a genuine issue of material fact as to Debra’s knowledge of the entity relationship or affiliation between FFY, the City, and their insurance companies, as well as detrimentalreliance elements regarding the statements, conduct, and representations by both [ ] Stone and Dixon. There is evidence

3 FFY did not seek summary judgment. Appellant’s App. Vol. II at 2-12.

Court of Appeals of Indiana | Opinion 19A-CT-1228 | March 26, 2020 Page 5 of 18

that could reasonably support a finding of estoppel, and therefore summary judgment is inappropriate.

Id. at 180.

[9] As to the granting of summary judgment against Dan’s loss of consortium claim, the trial court determined:

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