Honey Creek Corp. v. WNC Development Co.

331 N.E.2d 452, 165 Ind. App. 141, 1975 Ind. App. LEXIS 1231
CourtIndiana Court of Appeals
DecidedJuly 23, 1975
Docket1-874A124
StatusPublished
Cited by28 cases

This text of 331 N.E.2d 452 (Honey Creek Corp. v. WNC Development Co.) 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
Honey Creek Corp. v. WNC Development Co., 331 N.E.2d 452, 165 Ind. App. 141, 1975 Ind. App. LEXIS 1231 (Ind. Ct. App. 1975).

Opinion

Lowdermilk, J.

This case arose when the cooler unit of an air conditioning system was damaged because it failed to stop operating after the stop button was pushed by an employee of defendant-appellee, Sears Roebuck & Co. (Sears and/or Tenant), a tenant in Honey Creek Square Shopping Center of Terre Haute. Due to the sale of the shopping center, a corporate merger, and a corporate name change, a complicated fact situation arose as to the party who would ultimately have to bear the loss. To the credit of all the parties involved, it was stipulated that the original landlord, defendant-appellant North Park Apartments, Inc., (North Park) was liable unless North Park could show that Sears was negligent in the operation of the system under the following clause of its lease agreement:

“Tenant agrees that Tenant will, at its own expenses, make all repairs and replacements to or upon the demised *143 premises which become necessary during Tenant’s occupancy of said premises, by reason of the fault or neglect of Tenant or of Tenant’s employees. . . .”

As a result of the stipulations, the trial was essentially a dispute between the two named defendants, North Park Apartments, Inc., and Sears, Roebuck & Co.

The jury found that Sears was not negligent in the operation of the air conditioning system, and judgment was subsequently entered against North Park. North Park appeals from the negative judgment, contending Sears was negligent as a matter of law and that the judgment entered by the trial court was therefore contrary to law. North Park also claims error in the failure of the trial court to give North Park’s instructions numbered 2, 5, and 8, and, further, that these and other errors deprived North Park of a fair trial. The award of attorneys’ fees is also challenged.

The facts most favorable to Sears are as follows. On the night of June 7, 1971, the credit manager of Sears, Joseph Munoz, began the customary procedure for the nightly closing of the Sears store. These duties rotated among the four top management personnel at the Sears store; Mr. Munoz had completed this same procedure a few dozen times before.

One of the first tasks completed each night in closing the store was the shutdown of the air conditioning system. Mr. Munoz’s uncontradicted testimony was:

“Q. How long did it take the wind-down of the chiller ?
A. No more than, I would say, thirty seconds to a minute; it always — by the time I had finished with the other switches — was just about wound down completely.
Q. Thirty seconds for the chiller wind-down, a minute or so for the pump to kick out ?
A. Approximately — I would say that’s correct.
Q. And you were taught by Mr. Schulz to listen for these sounds and to wait until you had heard them before leaving the premises?
A. That was part of the instructions, yes.
Q. Whether you did that, sir, on the evening of June 7, 1971.
*144 A. Yes, I did.
Q. Are you stating to this Court and Jury now that the chiller went through this process of thirty seconds winding down ?
A. It’s exactly the way I remember it, yes; nothing happened any different than any other night.
Q. You say that’s the way you remember it?
A. Yes, sir.
Q. Well, don’t you know as a fact, sir, that the chiller did not stop that night but continued to operate?
A. No, I don’t know that.”
* * *
“Q. And you testified, I believe, that the first procedure you initiated on June 7, 1971 was to push a stop button or an off button?
A. Yes.
Q. What happened then with respect to any of the lights on the panel there near the stop switch?
A. A green light immediately went out and a red light went on.
Q. I believe you also stated that you pushed two off buttons on the circulating pumps and then you pushed an off button on the cooling fan and that you shut off a chemical — or a lime feeder — chemical?
A. Yes.
Q. And is that the same procedure that you had used on all occasions prior to June 7, 1971 with respect to shutting off the air conditioning system?
A. Yes, sir, it was.
Q. And was the sound of the winding down — or coasting down — you referred to the same as the sounds you had heard on each occasion as you shut off the air conditioning system prior to June 7, 1971?
A. Yes, it was.
Q. And was the sound that you refer to as the oil pump shutting off the same sound that you had heard on each occasion prior to June 7, 1971 when you shut off the system?
A. Yes, it was.”
* * *
“Q. Was it your belief when you left that machinery room on June 7, 1971 that the equipment had turned off?
A. Yes, it was.
*145 Q. The air conditioning system?
A. Yes, it was.
Mr. Crawford: No further questions.

Redirect Examination of Joseph J. Munoz Questions by Mr., Hahn:

Q. Well, its not a matter of belief, is it, sir? It was off according to your testimony.
A. Yes, sir.
Q. Had stopped completely?
A. Yes, sir.”

It was stipulated that sometime that night or early the next morning the cooler unit began or continued to operate. due to a defective switch. Since the lubricating pumps were not operating, the cooler soon overheated and effectively “burned up”, causing $18,720.50 damage. The red stop light was still on when the damage was discovered the following morning.

North Park contends that Sears was negligent in not instructing its employee in the proper operation of this expensive equipment. Mr. Munoz testified that he was not shown the operation manual nor instructed to familiarize himself with its provisions. The manual, which was in the equipment room and available to all personnel, contained the following notation on page 23:

“NOTE: Should the machine fail to stop, pull main circuit breaker. DO NOT restart machine until malfunction is located and corrected.” 1

Although Mr.

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Bluebook (online)
331 N.E.2d 452, 165 Ind. App. 141, 1975 Ind. App. LEXIS 1231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/honey-creek-corp-v-wnc-development-co-indctapp-1975.