Columbia Club, Inc. v. American Fletcher Realty Corp.

720 N.E.2d 411, 1999 Ind. App. LEXIS 2105, 1999 WL 1086887
CourtIndiana Court of Appeals
DecidedDecember 3, 1999
Docket49A02-9901-CV-61
StatusPublished
Cited by39 cases

This text of 720 N.E.2d 411 (Columbia Club, Inc. v. American Fletcher Realty Corp.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Club, Inc. v. American Fletcher Realty Corp., 720 N.E.2d 411, 1999 Ind. App. LEXIS 2105, 1999 WL 1086887 (Ind. Ct. App. 1999).

Opinion

OPINION

ROBB, Judge.

The Columbia Club appeals the trial court’s grant of summary judgment in favor of the AF Center Limited Partnership (“AF Center”) and Monument Tower Associates (“Monument Tower”) in a breach of contract action. 1 We affirm.

*416 Issues

Columbia Club raises the following consolidated and restated issues for our review:

1. Whether the trial court erred in granting the Partnership’s motion for summary judgment holding that the indemnification provision contained in the Agreement was a covenant which runs with the land, and thus, binds subsequent grantees and releases the' Partnership from liability under the indemnification provision; and
2. Whether a novation is required for the indemnification provision contained in the Agreement to run with the land.

Facts and Procedural History 2

On July 27, 1987, the Columbia Club entered into a contract with AF Center and American Fletcher Realty Corporation (“American Fletcher”). This contract, entitled “Agreement Relating to Construction Requirements and Easements” (the “Agreement”), was subsequently recorded in the county recorder’s office. At the time of the Agreement, American Fletcher was the -fee simple owner of property leased to AF Center upon which AF Center proposed to construct an office building and parking garage, later known as the Bank One Tower. The Columbia Club is the fee simple owner of property adjacent to the property where the Bank One Tower was constructed.

The Agreement contained construction requirements and created cross-easements between AF Center, American Fletcher, and the Columbia Club. The parties granted cross-easements in order to facilitate the construction of the Bank One Tower and the accompanying parking garage and to allow the Columbia Club to continue operating as a social club. The Agreement also contained an indemnity provision.

Thereafter, AF Center assigned the option to lease the property owned by American Fletcher to Monument Tower. During 1987-88, American Fletcher and Monument Tower constructed the Bank One Tower. On November 28, 1990, an addendum to the Agreement was executed between Columbia Club, American Fletcher, and Monument Tower which did not alter the indemnity provision in the Agreement. The indemnity provision remained in full force and effect.

On December 2, 1991, American Fletcher and Monument Tower assigned all of their interests in the Bank One Tower building and property to an unrelated third party. American Fletcher and Monument Tower have not held any fee or leasehold interest in the Bank One Tower building and property since December 2, 1991.

Around December 31, 1995, it was discovered that the Columbia Club had suffered structural damage from construction of the Bank One Tower which resulted in raw sewage flowing into the building. On December 30, 1997, the Columbia Club filed suit against American Fletcher, AF Center, and Monument Tower for indemnification from the damages suffered from the construction of the Bank One Tower building. Consequently, AF Center and Monument Tower moved for summary judgment, which was later granted by the trial court. This appeal ensued.

Discussion

I. Summary Judgment Standard of Review

The purpose of summary judgment is to terminate litigation about which there can be no factual dispute and which may be determined as a matter of law. Bastin v. First Indiana Bank, 694 N.E.2d 740, 743 (Ind.Ct.App.1998), trans. denied. When reviewing a grant or denial of summary judgment, this court applies the same standard as does a trial court. USA Life One Ins. Co. v. Nuckolls, 682 N.E.2d 534, 537 (Ind.1997). Summary judgment should be *417 granted only if the designated evidentiary material shows that there is no genuine issue of material fact and the moving party is entitled to summary judgment as a matter of law. Ind. Trial Rule 56(C); Hoskins v. Sharp, 629 N.E.2d 1271, 1276 (Ind.Ct.App.1994). On review, we may not search the entire record to support the judgment, but may only consider that evidence which had been specifically designated to the trial court. North Snow Bay, Inc. v. Hamilton, 657 N.E.2d 420, 422 (Ind.Ct.App.1995). The party appealing the denial of summary judgment has the burden of persuading this court on appeal that the trial court’s ruling was erroneous. See Warner Trucking, Inc. v. Carolina Cas. Ins. Co., 686 N.E.2d 102, 104 (Ind.1997). We resolve any doubt about a fact or any inference to be drawn from it in favor of the nonmoving party. Claxton v. Hutton, 615 N.E.2d 471, 473 (Ind.Ct.App.1993). Although the trial court made findings of fact and conclusions of law, it does not change the nature of our review of summary judgment. The entry of specific facts and conclusions in a summary judgment order aids our review by providing us with a statement of reasons for the trial court’s decision, but it has no other effect. P.M.S., Inc. v. Jakubowski, 585 N.E.2d 1380, 1381 (Ind.Ct.App.1992). Summary judgment should not be used as an abbreviated trial. Brunner v. Trustees of Purdue Univ., 702 N.E.2d 759, 760 (Ind.Ct.App.1998), trans. denied.

II. Real Covenant

The Columbia Club contends that the trial court erred in granting the Partnership’s motion for summary judgment. Specifically, the Columbia Club argues that the indemnification provision contained in the Agreement is not a covenant which ran with the land, and thus, the Partnership is liable under the Agreement for damages to the Columbia Club as a result of the construction process of the Bank One Tower and the accompanying parking garage. We disagree.

A. Indemnification Provision is an Affirmative Covenant

A person typically cannot be held liable for breach of contract unless it is shown that he was a party to the contract. See Evansville & S.I. Traction Co. v. Evansville Belt Ry. Co., 44 Ind.App. 155, 162, 87 N.E. 21, 22-24 (1909). Contractual obligations are personal in nature and privity of contract is essential for the establishment of such liability. Boswell v. Lyon, 401 N.E.2d 735, 743 (Ind.Ct.App.1980). However, Indiana recognizes an exception to the privity of contract requirement: it is called privity of estate.

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Bluebook (online)
720 N.E.2d 411, 1999 Ind. App. LEXIS 2105, 1999 WL 1086887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-club-inc-v-american-fletcher-realty-corp-indctapp-1999.