Penske Truck Leasing Co., LP v. Debra Dalton-McGrath and John McGrath (mem. dec.)

Indiana Court of Appeals·Decided September 10, 2020·No. 20A-CT-94·Published

Opinion

MEMORANDUM DECISION Pursuant to Ind. Appellate Rule 65(D), this Memorandum Decision shall not be regarded as precedent or cited before any court except for the purpose of establishing the defense of res judicata, collateral FILED estoppel, or the law of the case. Sep 10 2020, 8:51 am

CLERK

Indiana Supreme Court

Court of Appeals

and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEES Bryce H. Bennett Andrew A. Crosmer Justin O. Sorrell Daniel J. Zlatic Drake T. Land Rubino, Ruman, Crosmer & Riley Bennett Egloff LLP Polen, LLC Indianapolis, Indiana Dyer, Indiana

IN THE

COURT OF APPEALS OF INDIANA

Penske Truck Leasing Co., L.P., September 10, 2020 Appellant-Defendant, Court of Appeals Case No.

20A-CT-94

v. Interlocutory Appeal from the Lake Superior Court

Debra Dalton-McGrath and The Honorable Kristina C. Kantar, John McGrath, Judge Appellees-Plaintiffs. Trial Court Cause No.

45D04-1801-CT-18

Bradford, Chief Judge.

Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020 Page 1 of 18

Case Summary

[1] On November 4, 2017, Debra McGrath was bitten by a dog when she visited

Julie’s Auto Sales (“JAS”) for the purpose of renting a moving truck. The truck in question was owned by Penske Truck Leasing Co., L.P (“Penske”), and rented through JAS. Debra and her husband John (collectively, “the McGraths”) subsequently filed suit against Julie Dirindin, JAS, and Penske, alleging negligence. With respect to Penske, the McGraths argued both direct and vicarious liability. Penske moved for summary judgment. This interlocutory appeal follows the denial of Penske’s motion. Penske contends that the trial court erred in denying its motion for summary judgment, arguing that no issues of material fact remain that would preclude summary judgment on either the direct- or vicarious-liability claims. We affirm in part, reverse in part, and remand for further proceedings.

Facts and Procedural History [2] At all times relevant to this interlocutory appeal, Dirindin owned and operated

JAS. JAS offered vehicle rentals, including moving trucks owned by Penske. In answers to interrogatories designated in support of Penske’s motion for summary judgment, Dirindin described the events surrounding the dog bite as follows:

Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020 Page 2 of 18

I left my home before 8:00 a.m. with Cam[1] and went to the office.

I took care of small tasks, while I waited for Debra McGrath to arrive for her 9:00 a.m. reservation. Debra McGrath called a little after 9:00 a.m. to say that she was delayed. I advised her that I would be closing the office at 10:00 a.m. Shortly after 10:00 a.m., I locked the door, put up the closed sign, took Cam for a walk and loaded up my car. I brought Cam back into the office and locked and closed the door behind me. At approximately 10:20 a.m. Debra McGrath pulled the door open, which was locked but apparently it was not fully shut. It startled me and as Debra McGrath held the door open and stood in the doorway Cam ran and bit her in her leg.

Appellant’s App. Vol. II p. 67.

[3] In early 2018, the McGraths filed suit against Dirindin and JAS. On November 7, 2018, the McGraths filed an amended complaint in which they argued that Penske was directly negligent and vicariously liable for Dirindin’s negligence. Penske moved for summary judgment. The trial court denied Penske’s motion for summary judgment on November 25, 2019.

Discussion and Decision

[4] Penske contends that the trial court erroneously denied its motion for summary

judgment.

When reviewing a grant or denial of a motion for summary judgment our well-settled standard of review is the same as it is for the trial court: whether there is a genuine issue of material fact, and whether the moving party is entitled to judgment as a matter of law. The party moving for summary judgment has the

1 On November 4, 2017, Dirindin was caring for Cam, a pit-bull mix owned by her daughter who was attending college at St. Mary’s College in South Bend.

Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020 Page 3 of 18

burden of making a prima facie showing that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Once these two requirements are met by the moving party, the burden then shifts to the non-

moving party to show the existence of a genuine issue by setting forth specifically designated facts. Any doubt as to any facts or inferences to be drawn therefrom must be resolved in favor of the non-moving party. Summary judgment should be granted only if the evidence sanctioned by Indiana Trial Rule 56(C) shows there is no genuine issue of material fact and that the moving party deserves judgment as a matter of law.

Goodwin v. Yeakle’s Sports Bar & Grill, Inc., 62 N.E.3d 384, 386 (Ind. 2016) (internal citations omitted).

I. Direct Liability

[5] Penske contends that the trial court erred in denying its motion for summary

judgment on the McGraths’ direct-liability claim. In claiming that Penske was directly liable for Debra’s injuries, the McGraths alleged that Penske “was negligent in permitting its agent to keep an unleashed or unrestrained dog on the business premises where Penske customers were exposed to this unnecessary risk of harm.” Appellant’s App. Vol. II p. 42. The McGraths further allege that they “were injured and suffered damages” as a result of Penske’s negligence. Appellant’s App. Vol. II p. 42.

[6] “To prevail on a claim of negligence the plaintiff must show: (1) duty owed to plaintiff by defendant; (2) breach of duty by allowing conduct to fall below the applicable standard of care; and (3) compensable injury proximately caused by

defendant’s breach of duty.” Goodwin, 62 N.E.3d at 386 (internal quotation and Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020 Page 4 of 18 brackets omitted). “Absent a duty there can be no negligence or liability based upon the breach.” Id. “Whether a duty exists is a question of law for the court to decide.” ONB Ins. Grp., Inc. v. Estate of Megel, 107 N.E.3d 484, 489 (Ind. Ct. App. 2018), trans. denied. We therefore review de novo whether Penske owed a duty to the McGraths. See id. Further, “[n]egligence will not be inferred; rather, all of the elements of a negligence action must be supported by specific facts designated to the trial court or reasonable inferences that might be drawn from those facts.” Kincade v. MAC Corp., 773 N.E.2d 909, 911 (Ind. Ct. App. 2002). “An inference is not reasonable when it rests on no more than speculation or conjecture.” Id.

A. Premises Liability

[7] It is undisputed that Penske could not be directly liable to the McGraths as the

dog’s keeper or owner. The designated evidence clearly establishes that Dirindin was the dog’s keeper and her daughter was the dog’s owner. The McGraths instead rely on the theory of premises liability, asserting that a question of material fact remains as to whether Penske had sufficient control over the JAS premises to create a duty for Penske to act to prevent foreseeable harm. In order to prevail on their claim against Penske, the McGraths were required to prove that Penske “retained control over the property” and “had actual knowledge of” the dog’s dangerous propensities. See Baker v. Weather ex rel. Weather, 714 N.E.2d 740, 741 (Ind. Ct. App. 1999) (providing that in order for plaintiffs to prevail against landlords under a theory of premises liability on a claim of negligence relating to a dog bite by a dog neither owned or cared for Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020 Page 5 of 18 by the landlords, the plaintiffs were required to show that the landlords retained control over the property and had actual knowledge that the dog had dangerous propensities).

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