Weber v. Costin

654 N.E.2d 1130, 1995 WL 494683
CourtIndiana Court of Appeals
DecidedAugust 17, 1995
Docket87A01-9408-CV-251
StatusPublished
Cited by14 cases

This text of 654 N.E.2d 1130 (Weber v. Costin) 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
Weber v. Costin, 654 N.E.2d 1130, 1995 WL 494683 (Ind. Ct. App. 1995).

Opinion

OPINION

BAKER, Judge.

Appellants/plaintiffs/cross-appellees William F. Weber and Marjorie A. Weber bring this interlocutory appeal contesting the trial court's entry of partial summary judgment in favor of appellee/defendant/cross-appellant David Costin. Costin eross-appeals claiming that the court erred in granting the Webers' request for a jury trial on their remaining claims.

FACTS

Costin, a systems engineer with IBM, purchased property in Newburgh, Indiana. Thereafter, he hired Robert Pfingston to build a residential home on the property. Costin drew up a floor plan showing Pfing-ston how he wanted the house to be built and obtained a residential building permit from the town of Newburgh. Pfingston hired employees to perform the construction of the home. When the home was completed, Cos-tin entered into a real estate listing agreement with Emge Realty Company, Inc. (Emge) in which it agreed to sell the home.

The Webers, through Emge, looked at the home and decided to purchase it. The Web-ers never met or communicated with Costin prior to the day of the closing on September 12, 1985. At the closing, the Webers signed a real estate purchase agreement and acknowledged receiving a Certification of Insulation signed by Costin in which he certified that the insulation in the home was of a certain grade and quality.

After the Webers moved into the home, they complained of several defects, including plumbing and roof decking problems, poor attic ventilation, a tree stump in the crawl space, and cracking in the walls. On August 3, 1989, the Webers filed suit against Costin and Pfingston claiming negligence, breach of the implied warranty of fitness for habitability, two counts of fraud, two counts of constructive fraud, breach of express warranty, treble damages and punitive damages 1 On September 6, 1989, Costin filed his answer denying the claims. Thereafter, on May 4, 1990, the Webers filed an amended complaint joining Scheller, Woodruff & Associates, Inc. and Mark C. Woodruff as additional defen *1133 dants in the suit. 2 Costin filed an amended answer to the Webers' amended complaint on May 11, 1990. Then, on April 3, 1991, Costin filed a motion for partial summary judgment as to the two fraud counts and the two constructive fraud allegations. The trial court took the matter under advisement.

On January 14, 1994, the Webers obtained leave of court and filed a supplemental brief in opposition to partial summary judgment. In response, Costin filed a supplemental brief in support of his motion for partial summary judgment on February 9, 1994.

On March 14, 1994, the trial court granted partial summary judgment in favor of Costin on the two fraud counts, the two counts alleging constructive fraud, as well as on the Webers' claim for treble damages. The court entered findings of fact and conclusions of law in which it determined that the Web-ers offered no evidence showing that Costin made representations regarding the home that he knew were false. Further, the court found that because the Webers had not presented evidence that Costin intended to defraud them, they were not entitled to receive treble damages.

On July 1, 1994, the trial court, pursuant to Ind. Appellate Rule 4(B)(6), certified an order for interlocutory appeal. On August 18, 1994, we accepted jurisdiction of the interlocutory appeal to consider: 1) whether the court's grant of partial summary judgment was proper and 2) whether the case is triable by jury or by the court.

DISCUSSION AND DECISION

I. Partial Summary Judgment

First, the Webers challenge the court's grant of partial summary judgment on the fraud, constructive fraud, and treble damages claims. Summary judgment is an appropriate disposition if the moving party designates specific evidence that there is no genuine issues of material fact and that the moving party is entitled to judgment as a matter of law. Ind.Trial Rule 56(C); Hermann v. Yater (1994), Ind.App., 631 N.E.2d 511, 513. If the moving party meets these two requirements, the burden shifts to the non-movant to designate specific facts showing that there is a genuine issue for trial. TR. 56(C); Id.

On appeal, we are bound by the same standard as the trial court, and we consider only those matters which were designated at the summary judgment stage. Id. The party that lost in the trial court has the burden to persuade the appellate court that the trial court erred. Id. Summary judgment will be affirmed on appeal if it is sustainable on any theory or basis found in the evidentiary matter designated to the trial court. Fawley v. Martin's Supermarkets, Inc. (1993), Ind.App., 618 N.E.2d 10, 12, trans. denied. We observe that in the present case, the trial court entered detailed and helpful findings of fact and conclusions of law in support of its judgment. Special findings are not required in summary judgment proceedings and are not binding on appeal. Watters v. Dinn (1994), Ind.App., 633 N.E.2d 280, 285, trans. denied. However, such findings offer this court valuable insight into the trial court's rationale for its judgment and facilitate appellate review. Id.

Initially, we consider whether the court's grant of summary judgment on the actual and constructive fraud counts was appropriate. The elements of actual fraud are: 1) a material misrepresentation of past or existing fact by the party to be charged which, 2) was false, 3) was made with knowledge or in reckless ignorance of the falsity, 4) was relied upon by the complaining party, and 5) proximately caused the complaining party injury. Block v. Lake Mortg. Co., Inc. (1992), Ind.App., 601 N.E.2d 449, 451. The elements of constructive fraud are: 1) a duty owing by the party to be charged to the complaining party due to their relationship, 2) violation of that duty by the making of deceptive material misrepresentations of past or existing facts or remaining silent when a duty to speak exists, 3) reliance thereon by the complaining party, 4) injury to the complaining party as a proximate result thereof, and 5) an advantage gained by the party to *1134 be charged at the expense of the complaining party. Id.

The Webers argue that there are material issues of fact as to whether Costin made representations to them concerning the nonexistence of defects and, thus, summary judgment was inappropriate. However, the record reveals that Costin never made any oral representations to the Webers regarding the condition of the home. In fact, the Web-ers testified that no one made any representations to them about the house prior to the time they took the deed. R. at 165. Further, the Webers stated that they had no contact with Costin prior to the closing on the home where they "just met [Costin], shook his hand, and that was it." R. at 154.

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Bluebook (online)
654 N.E.2d 1130, 1995 WL 494683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weber-v-costin-indctapp-1995.