Mayberry Café, Inc. v. Glenmark Construction Co.

879 N.E.2d 1162, 2008 Ind. App. LEXIS 124, 2008 WL 251800
CourtIndiana Court of Appeals
DecidedJanuary 31, 2008
Docket32A05-0607-CV-396
StatusPublished
Cited by9 cases

This text of 879 N.E.2d 1162 (Mayberry Café, Inc. v. Glenmark Construction 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
Mayberry Café, Inc. v. Glenmark Construction Co., 879 N.E.2d 1162, 2008 Ind. App. LEXIS 124, 2008 WL 251800 (Ind. Ct. App. 2008).

Opinion

OPINION

BARTEAU, Senior Judge.

STATEMENT OF THE CASE

Mayberry Café, Inc. (“Mayberry”) appeals from the trial court’s judgment in favor of Glenmark Construction Company (“Glenmark”), Edwards-Rigdon Construction Company (“E-R”), Irwin Union Bank and Trust Company (“Irwin Union”), Dan Haines Construction, Inc. (“Haines”), and Robert E. Curry & Associates, Inc. (“Curry”). 1 We reverse and remand in part and affirm in part.

*1165 ISSUES

The parties raise numerous issues, which we restate as:

I. Whether an indemnity and hold harmless provision in a no-hen agreement between an owner and a general contractor is properly enforceable between the parties to the no-hen contract, regardless of when it was recorded.
II. Whether the trial court’s award of damages to Mayberry is clearly erroneous.
III. Whether the trial court’s calculation of damages is adequate.
IV. Whether the trial court erred in awarding attorney fees to Glen-mark.
V. Whether the trial court erred in awarding damages to Haines.
VI. Whether the trial court erred in determining that Curry is not liable for damages.

FACTS AND PROCEDURAL HISTORY

In 1998, Christine and Bradley Born, who owned and operated the Mayberry Café in Danville, Indiana, decided to renovate and expand the 100-year-old building that housed the café. Mayberry hired Rick Battershell, a Curry employee, to act as architect on the project for $11,800.00. Battershell drew plans and specifications for the project, finalizing the plans and specifications on March 10, 1999. The plans and specifications called for the elevation of the finished floor in the new addition to match the elevation of the floor of the existing structure. The plans did not direct as to the means, methods, or sequence of construction on the project.

Mayberry hired E-R as the general contractor for the project, and on April 12, 1999, the parties signed a contract for a total project cost of $326,240.00. The contract provided that E-R “supervise and direct the [project]” and be “solely responsible for and have control over construction means, methods, techniques, sequences and procedures for coordination of all portions of the [project] under the Contract. ...” (Appellant’s App. at 147).

E-R commenced work on the project on April 16, 1999, obtained bids from several contractors, and executed ten contracts with subcontractors on April 19, 1999. Mayberry authorized the beginning of construction even though it had not purchased the adjacent real estate or secured financing for the project.

Mayberry obtained financing for the project from Irwin Union in the amount of $340,000.00. The loan, which was closed on May 18, 1999, required that Mayberry and E-R execute a “No-Lien Agreement.” Irwin Union did not have the “No-Lien Agreement” recorded with the Hendricks County Recorder until May 27, 1999, nine days after its execution. Also included in the contract was an indemnity and hold harmless provision that required E-R to indemnify Mayberry for any expenses incurred in obtaining the release of mechanic’s liens.

During construction, Mayberry requested and approved changes in the scope of the work, including additional layers of drywall and a designer ceiling. The plans and specifications provided for the new floor in the addition and the existing floor in the café to be made even because the elevation appeared to deviate by approximately The plans called for the new addition to be built on the outside of the café’s western wall. In order to minimize the amount of time the café was closed, the new addition and floor were installed before the exterior wall of the café was removed. After the new floor was installed *1166 and the existing wall was removed, an elevation deviation of 3” was discovered in certain sections of the floor. Mayberry and E-R mutually agreed to a particular “fix” involving the installation of feathered ramps, a solution that ultimately failed.

Mayberry paid $105,370.00 to E-R, but after disputes arose between the two, Mayberry refused to make any more payments. Payments were not made to subcontractors, including Glenmark and Haines, and the subcontractors began filing mechanic’s liens against Mayberry’s real estate. Mayberry then made direct payment to certain subcontractors in the amount of $175,532.95.

The lawsuit on appeal is a consolidated action of several lawsuits that were filed by the various parties involved in the project. On December 20, 1999, Glenmark filed an action in the Hendricks Circuit Court seeking to foreclose its mechanic’s lien against Mayberry’s real estate, and stating a claim for breach of contract against E-R. Glenmark also named Irwin Union, as the mortgage holder on Mayber-ry’s real estate, as a defendant in its lawsuit.

Haines filed a separate action in the Hendricks Circuit Court against Mayberry and E-R. Haines sought to recover against Mayberry under Indiana’s Personal Liability Statute and asserted a breach of contract claim against E-R.

Once the aforementioned lawsuits were consolidated, E-R filed a cross-claim against Mayberry, asserting a breach of contract claim and also claims for unjust enrichment and for indemnity against the claims being made by E-R’s subcontractors.

Mayberry then filed a cross-claim against E-R, asserting claims for breach of contract and for negligence. As part of its cross-claim, Mayberry made a claim for indemnity against E-R, stating that E-R was responsible to indemnify and hold Mayberry harmless against any claims for payment being made by the subcontractors. Mayberry was subsequently granted permission to bring claims against Curry for negligence and breach of contract.

Mayberry then filed a motion to deposit funds with the trial court, pursuant to Trial Rule 67(A). The trial court granted the motion, and Mayberry deposited $20,894.75 with the court.

On May 9, 2003, Mayberry filed a motion for leave to assert an omitted cross-claim against Irwin Union, which the trial court denied. Mayberry appealed the trial court’s ruling, and this court held that the trial court’s order was not a final order, therefore dismissing the appeal without prejudice.

A bench trial was held in the Hendricks Superior Court on all pending claims between Mayberry, E-R, Glenmark, Haines, Curry, and Irwin Union. The trial court entered findings of fact and conclusions of law in support of the following judgments:

1. Glenmark was awarded judgment against Mayberry and E-R in the amount of $37,875.68;
2. Irwin Union was determined to have a priority lien against Mayberry’s real estate subject only to Glen-mark’s judgment;
3. E-R was awarded judgment against Mayberry in the amount of $76,326.99;
4. Haines was awarded judgment against Mayberry and E-R in the amount of $14,615.74;

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
879 N.E.2d 1162, 2008 Ind. App. LEXIS 124, 2008 WL 251800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayberry-cafe-inc-v-glenmark-construction-co-indctapp-2008.