Troutwine Estates Development Co. v. ComSub Design & Engineering, Inc.

854 N.E.2d 890, 2006 Ind. App. LEXIS 1984, 2006 WL 2789043
CourtIndiana Court of Appeals
DecidedSeptember 29, 2006
Docket45A05-0509-CV-562
StatusPublished
Cited by29 cases

This text of 854 N.E.2d 890 (Troutwine Estates Development Co. v. ComSub Design & Engineering, 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
Troutwine Estates Development Co. v. ComSub Design & Engineering, Inc., 854 N.E.2d 890, 2006 Ind. App. LEXIS 1984, 2006 WL 2789043 (Ind. Ct. App. 2006).

Opinion

OPINION

ROBB, Judge.

Case Summary

Troutwine Estates Development Company, LLC. ('Troutwine"), Daniel Jordan ("'Jordan"), Michael D. Jordan, and Mas-termark, Inc. ("Mastermark" and collectively the "Developers"), appeal after a bench trial in which the trial court awarded a judgment in favor of ComSub Design and Engineering, Inc. ("ComSub"), in the amount of $72,151.00 for services ComSub provided. The Developers also appeal the trial court's ruling against their counterclaim for professional negligence by Com-Sub. ComSub cross-appeals, alleging that the trial court improperly limited its recovery.

Quantum meruit may be applied to prevent unjust enrichment where no contract exists. We therefore affirm the trial court's judgment in favor of ComSub for services it provided. The Indiana Business Flexibility Act extends lability protection to individuals involved with a limited lability company. In a matter of apparent first impression for this state, we reverse and remand for the trial court to make findings of fact and conclusions thereon regarding derogation of the individual liability protection of Jordan, Michael D. Jordan, and Mastermark for the debts and obligations of Troutwine, and to modify its judgment as necessary. With regard to the Developers' counterclaim for professional negligence, the trial court did not abuse its discretion when it excluded expert testimony and photographs offered by the Developers. Lastly, we conclude that the trial court improperly limited its judgment in favor of ComSub when it deducted an amount to prevent double recovery and did not grant prejudgment interest. Consequently, we affirm in part, reverse in part, and remand for further proceedings with regard to assignment of personal liability, as well as adjustment of the amount to which ComSub is entitled in damages.

Issues

The Developers raise four issues for review, which we reorder, consolidate, and restate as follows:

1. Whether the trial court properly concluded no contract existed, therefore employing quantum meruit in reaching its judgment;
2. Whether the trial court properly assigned personal liability to each individual defendant for the debts and obligations of Troutwine; and
3. Whether the trial court properly excluded testimony and photographs supporting the Developers' counterclaim for professional negligence.

ComSub raises two issues on cross-appeal, which we consolidate and restate as whether the trial court properly limited judgment in ComSub's favor by excluding certain amounts to avoid double recovery and by not imposing prejudgment interest.

Facts and Procedural History 1

Between 1992 and 1998, ComSub provided design and engineering services to Troutwine, a limited liability company formed for the purpose of improving properties in a subdivision outside of Crown Point, Indiana, through addition of streets, sewers, and utilities. The land was there *895 after sold for construction of multifamily dwellings. The owner of ComSub, Steve Manich, was one of Troutwine's three managers, along with Jordan, and Jordan's son, Michael. The Jordans also own Mas-termark, the construction company that eventually purchased the land from Trout-wine and built the dwellings.

In 1994, Manich gave Jordan a document entitled "Agreement for Engineering Services" ("Agreement"). Its provisions included "design phase" and "construction phase" services, as well as payment rates for each. Appellant's Appendix at 35-37. Design phase services included: (1) meeting with government officials for determination of requirements for subdivision; (2) performance of field surveys for preparation of plats; (8) rendering engineering designs, plans, and drawings including streets, sewers, and other project improvements; (4) furnishing these plans and plats; and (5) assisting in receiving bids for the improvements. Construction phase services included: (1) setting construction stakes for sewers, water mains, grading, curbing, and other improvements; (2) preparing individual lot surveys, setting foundation stakes, and building permit plats; (3) setting permanent iron markings at property corners; and (4) "[plrovid[ing] general supervision, detailed inspection, and/or other services not covered by this agreement or as ordered by [Troutwine}." Id. at 36. Design phase payment was established as "a lump sum fee based on the total number of acres of the project multiplied by Eight Hundred and Ten Dollars ($810.00) per acre." Id. Construction phase payment was "based on a per diem rate based on the number of hours of services performed by the hourly rates set forth in Section H." Id. Manich's applicable hourly rate was as a "principal" earning ninety dollars per hour. Id. at 37. Jordan did not sign the Agreement. Nevertheless, Manich informed Jordan that services performed by ComSub would be under the terms written in the Agreement.

ComSub received payment under the Agreement's terms for the design phase services it provided. After completion of the design phase, Troutwine directed Com-Sub to make revisions and changes to the plans and to perform general construction observation by monitoring the construction of improvements, for which Manich generated a cost analysis of the work performed on each lot of the project. ComSub received payment only for the construction phase service of setting stakes. The total amount paid to ComSub for design and construction phase services was $68,750.15. In addition, payments were also made directly to Dale Catt and Larry McClelland for setting stakes, totaling $9,740.00. Testimony at trial indicated that Catt and McClelland were subcontractors, although the trial court also referred to them as ComSub employees.

In 1998, after a dispute with Jordan, Manich quit the project. He later submitted three separate invoices for services provided, but for which Troutwine had not paid. The first was a September 2, 1998, invoice in the amount of $67,050.00 for engineering construction supervision provided between 1995 and 1997. The second was a September 24, 1998, invoice in the amount of $9,720.00 for revision of street names and address changes. The third invoice was dated October 22, 1998, in the amount of $5,130.00 for calculations of cost distribution for work performed on each lot. These invoices did not itemize amounts, hours, costs, or scope of work performed. However, Troutwine did not dispute the hours reported or the performance of the work, yet refused to pay Com-Sub.

ComSub filed a complaint for payment in May of 1999. The Developers filed a *896 counterclaim alleging professional negligence by ComSub and Manich. Each party requested summary judgment, which the trial court denied. A bench trial followed in which the parties requested written findings and conclusions thereon. During the evidence on the Developers' counterclaim for professional negligence, the trial court excluded expert testimony and photographic evidence offered by the Developers. On January 24, 2005, the parties submitted proposed special findings and conclusions.

The trial court determined that the unsigned written contract did not constitute an express contract, written or oral, between ComSub and Troutwine.

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Bluebook (online)
854 N.E.2d 890, 2006 Ind. App. LEXIS 1984, 2006 WL 2789043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/troutwine-estates-development-co-v-comsub-design-engineering-inc-indctapp-2006.