Stephen F. Smith v. Foegley Landscape, Inc.

30 N.E.3d 1231, 2015 Ind. App. LEXIS 359, 2015 WL 1788683
CourtIndiana Court of Appeals
DecidedApril 20, 2015
Docket71A03-1405-SC-169
StatusPublished
Cited by4 cases

This text of 30 N.E.3d 1231 (Stephen F. Smith v. Foegley Landscape, Inc.) 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
Stephen F. Smith v. Foegley Landscape, Inc., 30 N.E.3d 1231, 2015 Ind. App. LEXIS 359, 2015 WL 1788683 (Ind. Ct. App. 2015).

Opinion

PYLE, Judge.

Statement of the Case

[1] Appellant-Defendant/Counter-Plaintiff, Stephen F. Smith (“Smith”), appeals the small claims court’s judgments in favor of Appellee-Plaintiff/Counter-Defendant, Foegley Landscape, Inc. (“Foegley Landscape”), on its breach of contract claim and on Smith’s tort and promissory estoppel counterclaim. 1 He also appeals the small *1233 claims court’s award of attorney fees to Foegley Landscape. Foegley Landscape brought a claim against Smith in small claims court alleging that he had breached a contract for landscaping services by failing to pay the money he owed on the contract. Smith filed an answer and counterclaim arguing that Foegley Landscape, instead, had breached the contract because it had damaged the drainage system on Smith’s house in the process of completing the landscaping project. In his counterclaim, Smith requested damages for the broken drainage system. After a bench trial, the small claims court found in favor of Foegley Landscape on both the claim and counterclaim, entered judgment for the amount owed under the contract, and also awarded Foegley Landscape attorney fees and costs.

[2] On appeal, Smith argues that the small claims court erred in finding in favor of Foegley Landscape on both the claim and counterclaim because the company did not present any evidence contradicting his argument that it had damaged his drainage system. Accordingly, Smith asserts, the company breached its contractual promise to fulfill the contract in a “workmanlike manner” and was liable for damages for the drainage system. Alternately, Smith argues that the small claims court abused its discretion in awarding Foegley Landscape attorney fees because its. insurer actually paid for one of the attorneys and because there was insufficient evidence to determine the reasonableness of the fees. We conclude that, contrary to Smith’s arguments, Foegley Landscape presented evidence that it did not damage Smith’s drainage system, and we therefore affirm the small claims court’s judgments on the claim and counterclaim. However, we also conclude that there was not sufficient evidence for the small claims court to determine the reasonableness of Foegley Landscape’s attorney fees. Accordingly, we reverse the small claims court’s award of attorney fees and remand to the court so it can hold a hearing and determine reasonable attorney fees.

[3] We affirm in part, reverse in part, and remand.

Issues

[4] 1. Whether the small claims court erred when it entered judgment in favor of Foegley Landscape on its breach of contract claim and on Smith’s tort and promissory estoppel counterclaims.

[5] 2. Whether the small claims court abused its discretion in awarding Foegley Landscape attorney fees.

Facts 2

[6] In early June 2012, Smith and his wife (“Mrs. Smith”) (collectively, “the Smiths”) contacted Foegley Landscape *1234 about landscaping their yard. They had developed a good opinion of Foegley Landscape because they had seen the company complete work on their neighbors’ yard and thought the company had done a “beautiful job.” (Tr. 72).

[7] Shortly thereafter, Aaron Laskow-ski (“Laskowski”), who works in sales and management at Foegley Landscape, met with Smith to discuss the potential landscaping project. He and Smith walked around Smith’s yard together so that he could get an idea of the landscaping changes Smith wanted to make and could formulate a landscape plan.

[8] Subsequently, on June 25, Laskow-ski returned to the Smith house with a completed landscape proposal. It provided that, for $5,966, Foegley Landscape would remove the plants, debris, and weeds along the front of the foundation of the Smiths’ house; level out a “hump” that the previous owner had left in the planting bed; edge the yard; install bark mulch; and install several plants. (Tr. 17). The Smiths would have to pay fifty percent of the total price upon signing the proposal and the rest upon completion of the project. They would also be liable for “[a]ny cost including reasonable attorney fees, incurred in the collection of this contract^]” and a “2% service charge per month — 24% Annual percentage rate on all accounts past 30 days.” (Foegley Landscape’s Ex. 1). The Smiths agreed to these terms and endorsed the contract. They paid the down payment of $3,000, fifty percent of the project price, and a crew from Foegley Landscape began the landscaping project two to three weeks later.

[9] Around the end of July, Foegley Landscape completed the first stage of the work, which involved removing the plants, debris, and “hump” in the Smiths’ yard. (Tr. 17). By the end of August, the crew members had installed the mulch and plants and completed the landscaping. However, before the crew left the property, Laskowski conducted a final inspection to confirm that they had completed all of the landscaping required under the contract.

[10] During the inspection, Laskowski noticed that only one of the downspouts on the house was connected to a drain tile, and the tile looked “like it was installed incorrectly.” (Tr. 22). A drain tile is a pipe that attaches to a gutter’s downspout and directs water away from a house. The other end of the tile is usually buried underground and prevents water from collecting around the house and causing water damage. The drain tile that Laskow-ski thought was installed incorrectly ran parallel to, rather than away from, Smith’s house. However, because the Smiths had not contracted with Foegley Landscape to fix their drainage system, Laskowski determined that the company had fulfilled its obligations under the contract.

[11] As a result, on August 3Í, 2012, Foegley Landscape sent Smith an invoice for $2,996, which was the remaining amount the Smiths still owed under the contract. The invoice included a note recommending that the Smiths take the next step of adding underground drain tiles to all of the downspouts on the house.

[12] Over the following months, the Smiths failed to pay the amount they owed. On December 6, 2012, the President and Owner of Foegley Landscape, John Foegley (“Foegley”), sent Smith a letter telling him that he owed $3,242.97 as a result of service charges for non-payment and requesting that Smith call him if he wished to discuss the matter. Smith did not call or otherwise respond to Foeg-ley’s letter.

[13] During that same period, the company also tried to contact Smith through *1235 his work e-mail address and by mailing him letters. Laskowski attempted to contact Smith by telephone several times and left a voicemail each time. He only heard back from Smith once in April 2013 when Smith called saying that something in the landscaping project was still incomplete, but “[he] had to get with [his] wife to find out what that was.” (Tr. 42). He told Laskowski that he would get back with him, but he never did.

[14] Sometime during the spring of 2013, Foegley asked the company’s Vice President, Brian Hominiuk (“Hominiuk”), to visit Smith’s house and find out if there was a reason that Smith had not paid. 3

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Bluebook (online)
30 N.E.3d 1231, 2015 Ind. App. LEXIS 359, 2015 WL 1788683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephen-f-smith-v-foegley-landscape-inc-indctapp-2015.