Kroger Co. v. WC ASSOCIATES, LLC

967 N.E.2d 29, 2012 WL 1430569, 2012 Ind. App. LEXIS 199
CourtIndiana Court of Appeals
DecidedApril 25, 2012
Docket49A05-1108-PL-412
StatusPublished
Cited by2 cases

This text of 967 N.E.2d 29 (Kroger Co. v. WC ASSOCIATES, LLC) 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
Kroger Co. v. WC ASSOCIATES, LLC, 967 N.E.2d 29, 2012 WL 1430569, 2012 Ind. App. LEXIS 199 (Ind. Ct. App. 2012).

Opinion

OPINION

BARNES, Judge.

Case Summary

The Kroger Company ("Kroger") appeals summary judgment granted in favor of WC Associates, LLC ("WC"), as sucees-sor in interest to Metro Acquisitions, LLC ("Metro"). We affirm in part, reverse in part, and remand.

Issues

Kroger raises three issues, which we restate as:

I. whether the trial court properly found that Kroger breached a reciprocal easement agreement;
II. whether the trial court properly found that Kroger committed criminal conversion, criminal trespass, and criminal mischief; and
III. whether the trial court properly awarded sanctions against Kroger.

On cross-appeal, WC argues that it is entitled to appellate attorney fees.

Facts

In November 1993, Kroger entered into a Reciprocal Easement Agreement ("Agreement") with Metro, a developer. The Agreement provided that Kroger owned Parcel I, near Rockville Road in Indianapolis. Metro owned Parcel II, III, and IV. Kroger and Metro desired "to establish certain rights and servitudes over the Parcels in order to facilitate the integrated use thereof as a shopping center," which was named Westpoint Commons. Appellant's App. p. 208. The Agreement addressed easements, maintenance and upkeep of the common areas, liability insurance, damage or destruction of the property, restrictions, taxes, default, and signage. Regarding easements Agreement provided in part:

Section 2.4-The parties hereby establish an exclusive easement over Parcel I in favor of Parcel(s) II, III, and IV to permit the construction, use and maintenance of a sign at the location designated on the Plot Plan, including any electrical lines required to illuminate the sign, provided that all lines are constructed underground.

Id. at 208-04. With respect to signage, the Agreement provided:

Section 9.1-Developer shall erect on Parcel I a pylon for a sign at the location as shown on the Plot Plan, subject to the reasonable approval of Kroger prior to erection. After completion of the construction thereof, Kroger shall reimburse Developer for that portion of the costs of construction thereof equal to the product of multiplying such costs times a fraction, the numerator of which is the square footage of the sign panel designated by Kroger to be located thereon and the denominator of which shall be the total square footage of all sign panels to be located thereon, but in no case in excess of Fifteen Thousand Dollars ($15,000.00).
Section 9.2-Kroger shall maintain the pylon for the sign shown on the Plot Plan in a good state of repair and operation at all times. Parcels II, III and IV Owners shall reimburse Kroger not more frequently than onee each calendar month for its prorata share of the costs of maintaining the pylon and illuminating the panels located thereon.... Section 9.3-Kroger shall have the right to attach to and the obligations to maintain at its expense, a sign panel on the pylon in the location immediately below the name of the Shopping Center and permanent signs on the exterior of the storeroom located on Parcel I. Each *33 such sign shall identify Kroger, its tenant or occupant, or the services or products of Kroger or its tenants or occupants in a suitable fashion consistent with their normal practice and the requirements of Section 9.5 hereof, and nothing contained herein shall limit or proscribe the use or display of non-permanent signs on the storeroom located on Parcel I in a manner consistent with the normal business of the occupant thereof.
Section 9.4-Pareel II and IV shall have the right to attach and maintain, at its expense, a sign panel on the pylon and may place permanent signs on the exterior of the buildings located on Parcel II and IV thereof in suitable fashion consistent with its normal practice and the requirements of Section 9.5 hereof.... Section 9.5-All permanent signs and panels hereinabove provided shall be of good quality and in good operating condition, appearance, maintenance and repair at all times and shall be of a design that is consistent with the architectural design of the Shopping Center and subject to any and all applicable governmental approvals.

Id. at 207. The Agreement also provided: "In the event of litigation by reason of this Agreement, the prevailing party in such litigation shall be entitled to recover reasonable attorneys' fees in addition to all other expenses incurred by such litigation." Id.

Kroger and Metro entered into a First Amendment to Reciprocal Easement Agreement ("Amendment") in August 1996, and the Amendment provided:

1. Section 24 of Article II shall be amended to read: "The parties hereby establish a Exclusive Easement over Parcel IV in favor of Parcels) I, II and III to permit the construction, use and maintenance upon Parcel IV of a sign at the location designated on the Plot Plan.... Access by Kroger to maintain the pylon and underground electrical service to the sign shall be granted upon the parking lot and driveway areas that currently exist or may exist upon Parcel IV from time to time.
The sign referenced in Article IX, Section 9.1, is to be located on Parcel IV....
3. All other terms and conditions of this Agreement shall remain in full force and effect except as expressly modified by this Amendment.

Id. at 220. A sign pylon was then constructed on Parcel IV, which was owned by WC's predecessor.

At some point, Kroger began operating a fuel center on property adjacent to the Westpoint Commons shopping center. In April 2009, Kroger removed the top portion of the Westpoint Commons' sign structure, changed the Kroger sign panel, added a panel to advertise its fuel prices, and left the other business's sign panels without lighting and electricity. WC hired contractors to restore the original sign pylon at a cost of $47,954.42.

In August 2009, WC filed a complaint against Kroger 1 for breach of contract, theft, criminal conversion, criminal trespass, and criminal mischief. WC requested treble damages pursuant to Indiana Code Section 34-24-3-1. Kroger filed a counterclaim against WC, alleging breach *34 of contract, conversion, criminal mischief, promissory estoppel, and constructive fraud.

In February 2010, WC filed a motion for summary judgment, arguing that Kroger had breached the Agreement and that Kroger's conduct amounted to criminal trespass, criminal mischief, and criminal conversion. Kroger responded and filed a cross-motion for summary judgment regarding WC's claims. Kroger filed a designation of evidence that included affidavits from three Kroger employees, Daniel DiCioccio, Nicholas Alm, and Doug Bur-dine.

WC filed a reply and argued that Kroger had submitted false affidavits WC requested sanctions pursuant to Indiana Trial Rule 56(G). After a hearing, the trial court entered findings of fact and conclusions thereon ruling on the motion for summary judgment and cross motion for summary judgment.

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Bluebook (online)
967 N.E.2d 29, 2012 WL 1430569, 2012 Ind. App. LEXIS 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kroger-co-v-wc-associates-llc-indctapp-2012.