Raytheon Engineers & Constructors, Inc. v. Sargent Electric Co.

932 N.E.2d 691, 2010 Ind. App. LEXIS 1451, 2010 WL 3066401
CourtIndiana Court of Appeals
DecidedAugust 6, 2010
Docket45A04-0909-CV-524
StatusPublished
Cited by3 cases

This text of 932 N.E.2d 691 (Raytheon Engineers & Constructors, Inc. v. Sargent Electric 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
Raytheon Engineers & Constructors, Inc. v. Sargent Electric Co., 932 N.E.2d 691, 2010 Ind. App. LEXIS 1451, 2010 WL 3066401 (Ind. Ct. App. 2010).

Opinion

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

Raytheon Engineers and Constructors, Inc. ("Raytheon"), the third-party plaintiff in the trial court, appeals the trial court's grant of summary judgment to the third-party defendant, Sargent Electric Company ("Sargent"). 1 Raytheon raises two issues for our review, which we consolidate and restate as whether the trial court erred when it granted Sargent's motion for summary judgment. We hold that Sargent did not breach its duty of care to Raytheon and that Raytheon is not entitled to indemnification from Sargent. Thus, we affirm the trial court's grant of summary judgment.

FACTS AND PROCEDURAL HISTORY

On October 27, 1996, Raytheon entered into a contract with Indiana Harbor Coke Company ("Indiana Harbor") to engineer, procure, and construct a coke battery plant ("the construction project"). The plant was to be built on property owned by Inland Steel Company ("Inland Steel"), which Inland Steel leased to Indiana Harbor. At the time, Inland Steel was wholly owned by Inland Steel Industries, Inc. ("ISI"), but, in 1998, ISI sold Inland Steel and it was renamed Ispat Inland, Inc. ("Is-pat Inland"). In early 1999, ISI merged with Ryerson Tull, Inc. ("Ryerson").

On March 17, 1997, Raytheon, the engineer and general contractor for the construction project, issued a requisition for four 225 kVA transformers. Those transformers were to have a "Wye Primary" and a "Wye Secondary" configuration (referred to as a "Wye-Wye" configuration). Appellant's App. at 767. The requisition for those transformers did not mention a "Delta" configuration. Among other differences, a Delta-configured transformer is *693 not grounded while a Wye-configured transformer is grounded to a neutral. The requisitioned transformers were to be used "for temporary construction power." Id. {capitalization removed). At the time Ray-theon issued its requisition, Inland Steel had technical - engineering - guidelines ("TEGs") in place "to provide the engineer with information to use when requisitioning products." Id. at 501. Here, the relevant TEG required the primary winding for transformers to be in the Delta configuration. See id. at 717.

On May 7, 1997, Raytheon hired Sargent as a subcontractor for electrical installation. Raytheon and Sargent entered into a written subcontract for Sargent to provide "the materials, equipment and labor" required to install temporary construction and start-up power for the construction project, which included installing the four requisitioned transformers. Id. at 788. Sargent "represent[ed] that it hald] independently examined the site of the Work, hald] investigated and considered all of the conditions affecting the execution of the Work, [and wals fully capable of performing the Work under said conditions...." Id. at 789. Sargent also represented that it had "full knowledge, ... experience and resources requisite for the timely and practical design, construction, and/or operation of the Work and agree[d] to apply such knowledge and experience in the execution of the Work." Id.

Although the subcontract was executed in May, Sargent had begun its work the preceding March. By April or May, Sargent had the 225 kVA transformers connected and energized. Sargent completed all of its work for the subcontract in July of 1997. At no point did Inland Steel or Raytheon inform Sargent of the TEG requirement that the transformers be Delta-Wye configured rather than Wye-Wye configured. Indeed, "Sargent was not involved in preparing any of the specifications for the transformers that were used" in the construction project. Id. at 834. To the contrary, Sargent merely "hooked in" the transformers "[plursuant to the drawings and the requirements of the specification" that Raytheon provided to Sargent. Id. at 481.

Immediately after the completion of Sargent's work, Raytheon hired 200-300 electricians to maintain the temporary transformers installed by Sargent. That work included moving, relocating, and retiring those start-up transformers. In mid-March of 1998, Raytheon's electricians disconnected one of the 225 kVA transformers and stored it in an open field northwest of Raytheon's nearby offices.

On April 26, 1998, a 500 kVA transformer that was Delta-Wye configured failed at the site. Raytheon moved the disconnect ed 225 kVA transformer from its storage field to the location of the failed transformer. There, Raytheon connected the 225 kVA transformer in the same manner in which Sargent had originally connected that transformer. On July 3, an electrical power loss occurred at the site due to the improper installation of the Wye-Wye configured transformer at the location of the failed Delta-Wye configured transformer. That power loss caused a blast furnace to lose power and spill molten steel onto the property, which resulted in damages to Inland Steel in exeess of $25,000,000.

Thereafter, Ryerson and Ispat Inland filed suit against Raytheon, alleging, in relevant part, that Raytheon had negligently connected the subject transformer. Raytheon filed a third-party complaint against Sargent, seeking contractual and common-law - indemnification. - Ryerson and Ispat Inland subsequently amended their complaint to include Sargent as a defendant.

*694 On January 2, 2007, Sargent moved for summary judgment. On April 4, the trial court granted Sargent's motion with respect to both Raytheon's claims and Ryer-son and Ispat Inland's claims. In May of 2009, Ryerson and Ispat Inland settled their claims against Raytheon. The trial court accepted their joint motion for dismissal with prejudice on August 14. Ray-theon then timely appealed the trial court's entry of summary judgment for Sargent.

DISCUSSION AND DECISION

Raytheon appeals the trial court's summary judgment for Sargent. Our standard of review for summary judgment appeals is well established:

When reviewing a grant of summary judgment, our standard of review is the same as that of the trial court. Considering only those facts that the parties designated to the trial court, we must determine whether there is a "genuine issue as to any material fact" and whether "the moving party is entitled to a judgment a matter of law." In answering these questions, the reviewing court construes all factual inferences in the non-moving party's favor and resolves all doubts as to the existence of a material issue against the moving party. The moving party bears the burden of making a prima facie showing that there are no genuine issues of material fact and that the movant is entitled to judgment as a matter of law; and once the movant satisfies the burden, the burden then shifts to the non-moving party to designate and produce evidence of facts showing the existence of a genuine issue of material fact.

Dreaded Inc. v. St. Paul Guardian Ins. Co., 904 N.E.2d 1267, 1269-70 (Ind.2009) (citations omitted). The party appealing from a summary judgment decision has the burden of persuading this court that the grant or denial of summary judgment was erroneous. Knoebel v. Clark County Superior Court No. 1, 901 N.E.2d 529, 531-32 (Ind.Ct.App.2009).

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932 N.E.2d 691, 2010 Ind. App. LEXIS 1451, 2010 WL 3066401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raytheon-engineers-constructors-inc-v-sargent-electric-co-indctapp-2010.