E & L Rental Equipment, Inc. v. Wade Construction Inc.

752 N.E.2d 655, 45 U.C.C. Rep. Serv. 2d (West) 737, 2001 Ind. App. LEXIS 1014, 2001 WL 670514
CourtIndiana Court of Appeals
DecidedJune 15, 2001
Docket46A03-0009-CV-342
StatusPublished
Cited by10 cases

This text of 752 N.E.2d 655 (E & L Rental Equipment, Inc. v. Wade Construction Inc.) 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
E & L Rental Equipment, Inc. v. Wade Construction Inc., 752 N.E.2d 655, 45 U.C.C. Rep. Serv. 2d (West) 737, 2001 Ind. App. LEXIS 1014, 2001 WL 670514 (Ind. Ct. App. 2001).

Opinion

OPINION

BAKER, Judge.

Appellant-plaintiff E & L Rental Equipment, Inc. (E & L) appeals the trial court's judgment in favor of appellees-defendants Wade Construction, Inc., and James Wade, the President of Wade Construction, Inc., (collectively "Wade Construction"). E & L claims that the trial court erred in finding that a barter agreement governed by common law existed between E & L and Wade Construction, rather than a sales and lease agreement governed by the Uniform Commercial Code (U.C.C.). In the alternative, E & L asserts that even if the U.C.C. is inapplicable to the case at bar, this court should determine that a quasi contract existed between E & L and Wade, entitling E & L to restitution under a theory of unjust enrichment.

FACTS

The facts most favorable to the verdict reveal that E & L and Wade Construction are both involved in the construction industry. E & L leases heavy equipment and Wade Construction is a general contractor. In October 1994, E & L and Wade Construction entered into a business relationship wherein E & L permitted Wade Construction to use its equipment for various construction jobs and supplied it with various goods, including sand, limestone, and wood chips. In return, Wade Construction promised to provide E & L with grinding and shredding services from Wade Construction's recycling division.

Between October 1994 and January 1997, E & L provided $83,645.73 worth of goods and rental equipment to Wade Construction, including $15,200 in repair fees resulting from neglect or improper operation of its equipment. In late November or early December 1996, E & L submitted invoices to Wade Construction demanding payment for the goods and equipment provided since October 1984.

On April 14, 1998, E & L filed a complaint against Wade Construction alleging the parties had entered into a lease agreement, that E & L had provided $88,645.73 worth of goods and equipment pursuant to that agreement, and that Wade Construction was Hable to E & L for payment. In its answer to E & L's complaint, Wade Construction asserted several affirmative defenses, including that accord and satisfaction existed because the value of goods and services exchanged between E & L and Wade were equal.

A bench trial commenced on August 9, 2000. During trial, James Wade testified that an oral barter agreement existed between Wade Construction and E & L, and that Wade Construction had provided approximately $18,000 in services to E & L during the period between October 1994 and January 1997. Record at 201-03, 209-15. A former employee of Wade Construction, James Thompson, also testified that he was aware of the barter agreement and that he had been responsible for the payment of invoices received by Wade Construction. According to Thompson, E & L made no request for payment for the goods and equipment it provided to Wade Construction until late 1996, at which time E & L sent Wade Construction a "bulk of invoices." R. at 169-70. The trial court subsequently found in favor of Wade Construction and entered findings of fact and conclusions of law sua sponte. Specifically, the trial court found that a barter arrangement, rather than a lease agreement, existed between the parties, and that there was no evidence that Wade Construction refused to complete its part of the barter. The trial court also found that the parties' *658 agreement was contractual in nature and governed by the common law rather than the U.C.C. E & L now appeals.

DISCUSSION AND DECISION

I. Standard of Review

- On appeal of claims from a bench trial, the appellate court will not set aside the judgment unless it is clearly erroneous. Ind. Trial Rule 52(A). A review of findings of fact and conclusions of law that are issued sua sponte is based upon the same standard as a review of findings and conclusions issued upon a party's written request. Mullis v. Brennan, 716 N.E.2d 58, 62 (Ind.Ct.App.1999). We may affirm the judgment on any legal theory supported by the findings. Id. In addition, before affirming on a legal theory supported by the findings but not espoused by the trial court, we should be confident that its affir-mance is consistent with all of the trial court's findings of fact and inferences drawn from its findings. Id. In reviewing the judgment, we must first determine whether the evidence supports the findings and second, whether the findings support the judgment. Breeden v. Breeden, 678 N.E.2d 423, 425 (Ind.Ct.App.1997). The judgment is clearly erroneous only when it is unsupported by the findings of fact and conclusions entered on the findings. Id. Findings of fact are clearly erroneous only when the record lacks any evidence to support them. Id. In reviewing the findings and judgment entered by the trial court, we consider only the evidence favorable to the judgment and all reasonable inferences flowing therefrom, and we will not reweigh the evidence or assess witness credibility. Id.

IIL E & L's Claim

E & L contends that the trial court erred in finding that a barter agreement governed by common law existed between E & L and Wade Construction, rather than a sales and leasing agreement governed by the U.C.C. Specifically, E & L claims that the lease provisions of the U.C.C. apply to its transfers of equipment and that the sales provisions of the U.C.C. apply to its provision of goods, such as sand and limestone. Thus, E & L asserts that it is entitled to payment for the value of the equipment and goods it supplied to Wade Construction.

As an initial matter, we note that E & L does not dispute the existence of a contract between itself and Wade Construction, only the nature of that contract. In essence, E & L argues that it contracted for payment for the equipment and goods it transferred to Wade Construction, whereas Wade asserts that the parties contracted for the exchange of goods and services.

The trial court's determination that a barter agreement existed between the parties is supported by witness testimony. Specifically, James Wade testified that he and Richard Loniewski, the manager of E & L, agreed that Wade Construction would provide E & L with services from Wade Construction's recycling division in exchange for use of E & L's equipment. R. at 197. In addition, James Thompson, who was responsible for processing and payment of invoices at Wade Construction, testified that he was personally aware of the bartering of services between the two companies. R. at 158-54.

With respect to the parties' course of conduct, Thompson testified that, rather than invoicing Wade after each transaction, E & L waited twenty-six months after it first started supplying Wade Construction with goods and equipment before sending Wade Construction all of the invoices. According to Thompson, prior to this collective dispatch of invoices, E & L had made no request for payment. James *659 Wade also testified that Wade Construction invoiced E & L for $18,000 worth of services, but did so purely for tax and bookkeeping purposes, and that Wade Construction was not paid for those services. R. at 228-24.

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752 N.E.2d 655, 45 U.C.C. Rep. Serv. 2d (West) 737, 2001 Ind. App. LEXIS 1014, 2001 WL 670514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-l-rental-equipment-inc-v-wade-construction-inc-indctapp-2001.