Sep 17 2013, 5:39 am
FOR PUBLICATION
ATTORNEYS FOR APPELLANTS: ATTORNEYS FOR APPELLEES:
DOUGLAS A. HOFFMAN RICHARD S. EYNON
JEREMY M. DILTS DAVID M. BRINLEY
Carson Boxberger LLP Eynon Law Group, P.C.
Bloomington, Indiana Columbus, Indiana
IN THE
COURT OF APPEALS OF INDIANA
BARTHOLOMEW COUNTY and )
BARTHOLOMEW COUNTY COMMISSIONERS, )
)
Appellants-Defendants/ )
Third-Party Plaintiffs, )
)
vs. ) No. 03A01-1212-CT-578
)
DOUG JOHNSON and LUCRETIA JOHNSON, )
)
Appellees-Plaintiffs, )
)
vs. )
)
C & H/M EXCAVATING AND )
CONSTRUCTION, INC., and CHRISTOPHER B. )
BURKE ENGINEERING, LTD., )
)
Third-Party Defendants. )
APPEAL FROM THE BARTHOLOMEW CIRCUIT COURT
The Honorable Stephen R. Heimann, Judge
Cause No. 03C01-1005-CT-1024
September 17, 2013
OPINION - FOR PUBLICATION
CRONE, Judge
Case Summary
Bartholomew County and the Bartholomew County Commissioners (collectively, “the
County”) contracted with two companies to design and construct a replacement bridge on a
county road. After the bridge was constructed, Doug and Lucretia Johnson’s nearby property
was damaged by flooding. The Johnsons filed a complaint against the County, alleging that
it had negligently designed, constructed, maintained, and operated the bridge, which
contributed to the flooding. The County filed a third-party complaint against the bridge’s
designer and builder, alleging that they were the real parties in interest.
The County also filed a motion for summary judgment, alleging that it was entitled to
immunity from liability for the acts or omissions of the designer and builder pursuant to
Indiana Code Section 34-13-3-3(10), which provides that “[a] governmental entity or an
employee acting within the scope of the employee’s employment is not liable if a loss results
from … [t]he act or omission of anyone other than the governmental entity or the
governmental entity’s employee.” In support of its immunity argument, the County relied on
Hinshaw v. Board of Commissioners of Jay County, 611 N.E.2d 637 (Ind. 1993). The
Johnsons argued that the County had a non-delegable duty to design and construct the bridge
and therefore could not avoid liability by blaming the designer and builder. In support of
their argument, the Johnsons relied on Shand Mining, Inc. v. Clay County Board of
Commissioners, 671 N.E.2d 477 (Ind. Ct. App. 1996), trans. denied (1997), and City of
Vincennes v. Reuhl, 672 N.E.2d 495 (Ind. Ct. App. 1996), trans. denied (1997), neither of
which mentions Hinshaw.
2
The bridge designer filed a summary judgment motion asserting that the bridge was
not negligently designed, which the trial court denied. The bridge builder filed a summary
judgment motion asserting that the bridge was not negligently constructed, which the trial
court granted. The trial court entered summary judgment for the County as to the Johnsons’
negligent construction claims but denied the County’s summary judgment motion on the
issue of immunity, finding that the County had a non-delegable duty to “provide appropriate
bridges” and therefore was not immune from liability for the acts or omissions of the bridge
designer. Appellants’ App. at 116.
The County now appeals, arguing that Hinshaw requires reversal of the trial court’s
ruling and that Shand Mining and Reuhl were wrongly decided. The Johnsons contend that
the County’s appeal is frivolous and in bad faith and request an award of attorneys’ fees
pursuant to Indiana Appellate Rule 66(E). We agree with the County that, pursuant to
Hinshaw, it is entitled to immunity from liability from any loss resulting from the acts or
omissions of the bridge designer. Under Indiana law, a principal may be liable for the
negligence of its independent contractor only if the contractor was performing a non-
delegable duty; Indiana Code Section 34-13-3-3(10) would be useless if it did not provide
immunity to a governmental entity for a loss resulting from an independent contractor’s
performance of a non-delegable duty, and we presume that the legislature did not enact a
useless provision. Therefore, we reverse the trial court’s ruling on the immunity issue and
respectfully disagree with Shand Mining and Reuhl to the extent that they conflict with our
supreme court’s opinion in Hinshaw. Because the County’s summary judgment motion was
3
directed only toward the negligence of third parties and the Johnsons’ negligent design and
construction claims, we remand for further proceedings as to the negligent maintenance and
operation claims. Because we have determined that the County’s immunity argument
prevails, we deny the Johnsons’ request for attorneys’ fees.
Facts and Procedural History
The relevant facts are undisputed. In 2007, a replacement bridge was constructed on
County Road 775 East in Bartholomew County. The County contracted with Christopher B.
Burke Engineering, Ltd. (“CBE”), to design the bridge and with C & H/M Excavating, Inc.
(“C & H/M”), to construct the bridge. In June 2008, the Johnsons’ nearby home and
outbuildings were damaged by flood water. In May 2010, the Johnsons filed a complaint
against the County that reads in pertinent part as follows:
2. At all times relevant herein, the Defendants designed, owned,
constructed, operated, and maintained a bridge (hereinafter “replacement
bridge”) on County Road 775 East near Plaintiffs’ home.
3. Said replacement bridge was constructed in 2007 to replace its
predecessor, which had a dual-flow design, and said replacement bridge
required the diverting of Little Haw Creek to accommodate its construction.
4. On or about June 7, 2008, the replacement bridge maintained,
operated, constructed, and owned by Defendants failed, thereby diverting
waters directly into the path of Plaintiff’s [sic] home and appurtenances,
including outbuildings and pool, thereby flooding same, which caused Plaintiff
[sic] specific and distinct harm, including the destruction of personal property
contents.
5. Prior to June 7, 2008, during the construction of said
replacement bridge, the Defendants had notice and knowledge of the
inadequate design and construction of said replacement bridge, and said
replacement bridge’s failure to meet Federal Emergency Management Agency
(FEMA), Indiana Department of Transportation (INDOT), and/or Indiana
4
Department of Natural Resources (DNR) requirements for replacement
bridges, in that said replacement bridge was smaller and performed worse
and/or less efficient [sic] than its dual-flow predecessor.
6. Further, upon information and belief, Defendants failed to: a)
conduct an appropriate hydraulics analysis with calculations; b) conduct an
appropriate survey; and/or c) obtain an appropriate DNR permit prior to the
construction of the replacement bridge.
7. Defendants were negligent in the construction, operation, and/or
maintenance of said replacement bridge, including the diverting of Little Haw
Creek to accommodate said bridge, for failing to follow the minimum
requirements for replacement bridges set forth by FEMA, INDOT, and/or
DNR regulations, and for the reasons set forth herein.
8. Plaintiffs were uniquely and particularly damaged as a result of
the Defendants’ inadequate replacement bridge and their refusal to properly
design, construct, and/or replace same, and were made victims again in August
2009, when the replacement bridge or its successor once again diverted flood
waters near Plaintiff’s [sic] house, flooded the pole barn/storage building again
causing loss of additional personal property, and rendered this building useless
as an asset of the property for storage.
9. Said replacement bridge constituted a nuisance.
10. The Defendants’ negligence in constructing, operating, and/or
maintaining said replacement bridge, i.e. nuisance, proximately caused the
following damages to Plaintiffs:
(a) Emotional distress, inconvenience, and frustration;
(b) Loss and destruction of personal property;
(c) Out-of-pocket expenses related to the clean-up and repair
of Plaintiffs’ residence in excess of $98,000.00.
(d) Diminution, depreciation, or decrease in the value of
Plaintiffs’ residence.
Appellees’ App. at 1-3.
5
In October 2011, the County filed a third-party complaint against CBE and C & H/M,
seeking indemnification from those entities pursuant to their respective contracts and alleging
that they were the real parties in interest. In July 2012, the County filed a motion for
summary judgment. In support of this motion, the County designated the affidavit of County
Engineer Danny Hollander, who averred that the County “did not participate in the
engineering, design, or construction of the bridge” at issue and that “[a]ll such activities were
performed by contractors or entities hired to perform each task (engineering/design and/or
construction).” Appellants’ App. at 33. In its accompanying memorandum, the County
argued that it was entitled to immunity from liability for the acts or omissions of C & H/M
and CBE pursuant to Indiana Code Section 34-13-3-3(10), which provides that “[a]
governmental entity or an employee acting within the scope of the employee’s employment is
not liable if a loss results from … [t]he act or omission of anyone other than the
governmental entity or the governmental entity’s employee.”1 In their response, the Johnsons
argued that the County “had a non-delegable common law and statutory duty to design,
construct, and maintain the subject bridge” and therefore “cannot avoid liability by blaming
Third-Party Defendants [C & H/M and CBE].” Appellees’ App. at 16.
CBE filed a summary judgment motion asserting that the bridge was not negligently
designed. The County joined in CBE’s motion. C & H/M filed a summary judgment motion
1
For reasons unknown, the County has repeatedly referred to this provision as Indiana Code Section
34-13-3-3(12).
6
asserting that the bridge was not negligently constructed. The County joined in that motion
as well. The Johnsons opposed both summary judgment motions.
On November 7, 2012, the trial court issued an order denying the County’s and CBE’s
summary judgment motions and granting C & H/M’s summary judgment motion. With
respect to the County, the trial court framed the issue as
whether the County can escape liability by delegating its duty to provide
appropriate bridges. The case law is clear that this duty is non-delegable.
Even if the County contracts with a third party, i.e., [CBE], the County is not
immune from liability if the work done by [CBE] negligently caused damages
to another.
….
Because the County, as principal, has a non-delegable duty to maintain
its bridges, it is not immune from liability for acts or omissions of its
independent contractor (agent). Therefore, if [CBE] was negligent in the
design of [the bridge] and if that negligence caused damages to the Johnsons,
then the County can be held liable. Therefore, the County’s Motion for
Summary Judgment should be denied.
Appellants’ App. at 116, 118. On November 29, 2012, the trial court issued an order
clarifying its previous order and granting final partial summary judgment to the County as to
all claims of negligent construction. The County filed a motion to certify the November 7
order for interlocutory appeal, which the trial court granted, and we accepted jurisdiction.
Discussion and Decision
I. Immunity
“The purpose of summary judgment is to terminate litigation about which there can be
no factual dispute and which may be determined as a matter of law.” Wade v. Norfolk & W.
Ry. Co., 694 N.E.2d 298, 301 (Ind. Ct. App. 1998), trans. denied (2000).
7
The burden is on the moving party to show that there is no genuine issue of
material fact and that the moving party is entitled to judgment as a matter of
law. Ind. Trial Rule 56(C). The reviewing court faces the same issues that
were before the trial court and must carefully scrutinize the trial court’s
determination to assure that the non-prevailing party was not improperly
prevented from having his day in court. Summary judgment is appropriate
only if no genuine issues of material fact exist and the moving party is entitled
to judgment as a matter of law. Neither the trial court, nor the reviewing court,
may look beyond the evidence specifically designated to the trial court. We
review the designated materials in the light most favorable to the non-movant
without determining weight or credibility. Once the movant for summary
judgment has established that no genuine issue of material fact exists by
submission of materials contemplated by [Trial Rule] 56, the nonmovant may
not rest on his pleadings but must set forth specific facts, using supporting
materials contemplated under the rule, which show the existence of a genuine
issue for trial. The appellate court is not limited to reviewing the trial court’s
reasons for granting summary judgment, but will affirm a grant of summary
judgment if it is sustainable on any theory or basis found in the record.
Id. (some citations omitted).
The County contends that the trial court erred in denying its summary judgment
motion on the basis that it is not entitled to immunity pursuant to Indiana Code Section 34-
13-3-3(10). Governmental immunity from suit is governed by the Indiana Tort Claims Act
(“ITCA”). E. Chicago Police Dep’t v. Bynum, 826 N.E.2d 22, 26 (Ind. Ct. App. 2005), trans.
denied (2006).
Governmental entities and their employees are subject to liability for torts
committed by them unless they can prove that one of the immunity provisions
of the ITCA applies. Because the ITCA is in derogation of the common law,[2]
we construe it narrowly against the grant of immunity. The party seeking
immunity bears the burden of establishing its conduct comes within the Act.
2
See Gary Cmty. Sch. Corp. v. Roach-Walker, 917 N.E.2d 1224, 1226-27 (Ind. 2009) (“Like many
other jurisdictions, Indiana abolished common law sovereign immunity for all government activities in a series
of judicial decisions in the 1960s and early 1970s. As a result of these decisions, most activities of government
entities were exposed to liability under traditional tort theories. In response, the Indiana General Assembly
passed the ITCA. This statute granted absolute immunity to governmental entities in a number of specific
circumstances, and codified rules of liability for other areas of governmental activity.”) (citations omitted).
8
While the issue of a governmental entity’s immunity from liability under the
ITCA may require extended factual development, the issue remains a question
of law for the courts. Therefore, we review claims of governmental immunity
de novo. We owe the trial court no deference, and we will substitute our
judgment for that of the trial court if necessary.
Id. (citations and quotation marks omitted).
Our supreme court has said, “The purpose of immunity is to ensure that public
employees can exercise their independent judgment necessary to carry out their duties
without threat of harassment by litigation or threats of litigation over decisions made within
the scope of their employment.” Bushong v. Williamson, 790 N.E.2d 467, 472 (Ind. 2003)
(citation and quotation marks omitted).
Immunity assumes negligence but denies liability. Thus, the issues of
duty, breach and causation are not before the court in deciding whether the
government entity is immune. If the court finds the government is not
immune, the case may yet be decided on the basis of failure of any element of
negligence. This should not be confused with the threshold determination of
immunity.
Peavler v. Bd. of Comm’rs of Monroe Cnty., 528 N.E.2d 40, 46-47 (Ind. 1988).
In asserting that it is entitled to immunity, the County has relied on our supreme
court’s opinion in Hinshaw. In that case, the Hinshaws were involved in a collision at an
intersection of county roads and filed a complaint against Jay County alleging negligence in
signing and maintaining the intersection. Jay County argued that it was entitled to immunity
pursuant to Indiana Code Section 34-13-3-3(10).3 The trial court entered summary judgment
3
Indiana Code Section 34-13-3-3(10) was codified as Indiana Code Section 34-4-16.5-3(9) when
Hinshaw was decided, and it was later recodified as Indiana Code Section 34-13-3-3(9). For simplicity’s sake,
we use the current citation where applicable.
9
in favor of Jay County. The Court of Appeals reversed, and our supreme court granted
transfer.
The Hinshaws argued that Indiana Code Section 34-13-3-3(10) “applies only when the
conduct of a non-government employee is the sole proximate cause of the plaintiffs’
injuries,” whereas Jay County argued that “the provision grants immunity to a governmental
entity whenever its negligence combines with the negligence of a third party.” Id. at 638.
Our supreme court stated,
Viewing the immunity statute as a whole, we note a significant general
pattern. Its various subsections each identify an aspect or characteristic of
governmental activity which gives rise to an immunity for the acts and
omissions comprising that activity. The subsections are not referring to
activities apart from the governmental activity upon which a claim of
governmental liability is based. The introductory phrase “if a loss results
from” does not mean “if a loss also results from.”
Thus, for example, governmental immunity is not clearly conferred to
shield a government-employed lifeguard, otherwise liable for a swimmer’s
injuries by reason of the lifeguard’s intoxication and inattention, upon the
lifeguard’s claim that the loss also resulted in part from “the natural condition
of unimproved property.” Ind. Code § [34-13-3-3(1)]. Nor does a government
employee who falls asleep while driving a maintenance truck and collides with
a parked car appear to be immunized from liability for such negligence merely
because he alleges that an additional factor in the loss was “the temporary
condition of a public thoroughfare which results from weather.” Ind. Code §
[34-13-3-3(3)]. Likewise, when a governmental entity is otherwise liable as a
joint tortfeasor, no governmental immunity is clearly extended on grounds that
the other joint tortfeasor engaged in “the performance of a discretionary
function,” Ind. Code § [34-13-3-3(7)], failed to make a safety inspection, Ind.
Code § [34-13-3-3(12)], or made an unintentional misrepresentation, Ind. Code
§ [34-13-3-3(14)]. In view of the absence of express declaration or
unmistakable implication in the statute, we find that immunity is not conferred
when the circumstances designated in the subsections do not encompass or
directly relate to the specific government conduct for which liability is sought
to be imposed.
10
However, applying both the rule presuming that legislative enactments
are purposeful and the rule requiring narrow construction for statutory
provisions in derogation of common law, we conclude that Subsection [10]
does provide immunity in certain cases wherein governmental liability could
otherwise occur, but that this immunity exists only when the alleged
governmental liability is grounded upon the acts or omissions of persons other
than the government employee acting within the scope of the employee’s
employment.
The law has long recognized a number of circumstances in which tort
liability may be vicariously imposed upon persons for the conduct of agents
who are not employees or subject to any right of control by the employer. See
e.g., City of Logansport v. Dick (1880), 70 Ind. 65 (intrinsically dangerous
activity); Rediehs Express, Inc. v. Maple (1986), Ind. App., 491 N.E.2d 1006,
cert. denied (1987), 480 U.S. 932, 107 S. Ct. 1571, 94 L. Ed. 2d 762 (liability
under ICC regulations); Ackman v. Bullard (1974), 161 Ind. App. 437, 316
N.E.2d 444 (joint enterprise); Soft Water Util., Inc. v. LeFevre (1974), 159 Ind.
App. 529, 308 N.E.2d 395 (apparent authority); Polk Sanitary Milk Co. v.
Berry (1938), 106 Ind. App. 29, 17 N.E.2d 860 (ratification); see generally
William Prosser, The Law of Torts § 69, at 467 (4th ed. 1971); Restatement
(Second) of Agency §§ 141, 159, 251-67 (1958). It is in such actions seeking
to impose vicarious liability by reason of conduct of third parties that
governmental entities and employees may seek to claim immunity under
Subsection [10]. Under such circumstances, the alleged basis of governmental
11
entity liability is the act or omission of a third person not within the scope of
employment as a government employee.[4]
In the present case, the County claims Subsection [10] immunity on
grounds that the conduct of persons other than a government employee
contributed to the plaintiffs’ injuries. It alleges that the proximate causes of
the accident included the negligence of the driver of the automobile that
collided with the plaintiffs’ vehicle and that of the owners of vehicles parked
4
In Sword v. NKC Hospitals, Inc., 714 N.E.2d 142 (Ind. 1999), our supreme court explained,
Vicarious liability is “indirect legal responsibility.” It is a legal fiction by which a
court can hold a party legally responsible for the negligence of another, not because the party
did anything wrong but rather because of the party’s relationship to the wrongdoer. Courts
employ various legal doctrines to hold people vicariously liable, including respondeat
superior, apparent or ostensible agency, agency by estoppel, and the non-delegable duty
doctrine.4 Some doctrines are based in tort law, some are based in agency law. Courts often
discuss the various doctrines as if they are interchangeable; they are not.…
4
While a master is generally not liable for the negligence of an
independent contractor, the master may be liable if the independent
contractor was performing a non-delegable duty. A non-delegable duty is
one that public policy holds to be so important that one party should not be
permitted to transfer the duty (and its resultant liability) to another party.
Respondeat superior is the applicable tort theory of vicarious liability. Under
respondeat superior, an employer, who is not liable because of his own acts, can be held liable
for the wrongful acts of his employee which are committed within the scope of employment.
In this context, “employer” and “employee” are often stated in broader terms as “master” and
“servant.”
One important aspect in applying respondeat superior is differentiating between those
who are servants and those who are independent contractors. A servant is defined in the
following general manner: one who is employed by a master to perform personal services and
whose physical conduct is subject to the right to control by the master. It is the employer’s
right to control that generally separates a servant from an independent contractor. An
independent contractor can, therefore, be defined as “a person who contracts with another to
do something for him but who is not controlled by the other nor subject to the other’s right to
control with respect to his physical conduct in the performance of the undertaking.”
It is important to distinguish between servants and independent contractors in the tort
context because, while a master can be held liable for a servant’s negligent conduct under
respondeat superior, a master generally cannot be held liable for the negligence of an
independent contractor. The theory behind non-liability for independent contractors is that it
would be unfair to hold a master liable for the conduct of another when the master has no
control over that conduct.
Id. at 147-48 (some footnotes omitted) (citations omitted) (some quotation marks omitted).
12
at the intersection. The plaintiffs’ claim against the County is grounded on
allegations of negligent signing and maintenance of the intersection.
Therefore, because the Subsection [10] circumstances (conduct of “someone
other than the governmental entity employee”) do not encompass or directly
relate to the acts or omissions upon which the plaintiffs are basing the claim of
governmental entity negligence, such conduct of third persons does not give
rise to the immunity provided by Subsection [10].
611 N.E.2d at 640-41.
In this case, the County argues that
there could be no clearer application of the “acts of others” immunity. No one
affiliated with Bartholomew County had any role in the design of the bridge at
issue. All design and engineering services related to the bridge at issue were
performed by [CBE].… The Johnsons are attempting to hold Bartholomew
County vicariously liable for the alleged negligence of [CBE]. Such a scenario
is precisely the circumstance identified by [the Hinshaw court] regarding the
appropriate application of [Indiana Code Section 34-13-3-3(10)].
Appellants’ Br. at 5-6 (citations to appendix omitted).
In arguing that the County is not entitled to immunity, the Johnsons have relied on two
opinions from this Court, Shand Mining and Reuhl, neither of which mentions Hinshaw. In
Shand Mining, Teea and Maria Lunsford
were injured when their car left Harmony Road in Clay County, Indiana,
dropped approximately two feet, collided with a phone junction box and utility
pole, and overturned on an earthen embankment.… [T]he Lunsfords filed a
complaint against Clay County and Shand Mining, alleging that they breached
their duty to maintain Harmony Road. In response, Clay County filed a cross-
claim against Shand Mining which alleged that Shand Mining was
contractually obligated to maintain the road ….
671 N.E.2d at 478. Clay County filed a summary judgment motion contending that it was
entitled to immunity on several grounds, including that “it made a discretionary decision to
delegate its responsibility for maintaining Harmony Road to Shand Mining” and that “the
13
accident was caused by the act or omission of another.” Id. at 479. The trial court granted
the motion, and Shand Mining appealed.
In addressing those theories of immunity, another panel of this Court stated,
[Indiana Code Section 34-13-3-3] provides:
A governmental entity or an employee acting within the scope of
the employee’s employment is not liable if a loss results from:
…
[(7)] the performance of a discretionary function; …
[(10)] the act or omission of anyone other than the governmental
entity or the governmental entity’s employee; …
Although Shand Mining raises several arguments in opposition to the trial
court’s grant of summary judgment, one issue is dispositive: whether Clay
County’s duty to maintain Harmony Road is a non-delegable duty.
Generally, a principal who delegates a duty to an independent contractor
is not liable for the negligence of that independent contractor in performing the
duty. Bagley v. Insight Communications Co., L.P., 658 N.E.2d 584, 586 (Ind.
1995). However, an exception to this general rule exists “where the principal
is by law or contract charged with performing the specific duty.” Id. Duties
that are imposed by law or contract are considered non-delegable because they
are deemed so important to the community that the principal should not be
permitted to transfer these duties to another. Id. at 587. As a result, although a
principal may transfer the responsibility for performing a duty to an
independent contractor, the principal remains liable if the duty is negligently
performed.
In Indiana, the legislature has specifically charged the county supervisor
with the supervision of the maintenance and repair of all highways within the
county. IND. CODE § 8-17-3-2. Further, Indiana judicial decisions have
recognized that governmental entities have a specific obligation with respect to
public travel. See City of Indianapolis v. Cauley, 164 Ind. 304, 309-10, 73
N.E. 691, 693-94 (1905) (it is legal duty of municipality to exercise
supervision over bridges under its control and to make inspection as ordinary
care and diligence require). In Board of Comm’rs of Wabash County v.
Pearson, 120 Ind. 426, 22 N.E. 134 (1889), for example, our supreme court
14
held a county liable for its negligent supervision of persons employed to repair
a bridge when the bridge was left in an unsafe condition. In holding the
county liable, the court relied on a non-delegable duty imposed by law. See
Burns Rev. State. § 2892 (1881) (required county’s Board of Commissioners
to maintain public bridges). Thus, while we agree that Clay County may
exercise its discretion to delegate its responsibility for maintaining a road to a
private entity such as Shand Mining, we cannot say that it is relieved of
liability on the basis of its delegation. The trial court, therefore, erred in
granting summary judgment in favor of Clay County on the basis that it was
immune from liability.
Nevertheless, this court can affirm the trial court’s judgment on
appellate review if it is sustainable on any theory or basis found in the record.
Thus, although we reject Clay County’s argument that it is entitled to summary
judgment due to its governmental immunity, we may still affirm the trial court
if we determine that there are no genuine issues of material fact and that Clay
County is entitled to judgment as a matter of law.
In the instant case, the complaint alleges Clay County was negligent in
its maintenance and repair of Harmony Road. Specifically, the complaint
provides:
(4) That the drop of approximately two (2) feet, and the absence
of a shoulder off the traveled portion of Harmony Road in the
vicinity of the accident made it impossible for the Plaintiff to
keep her vehicle on the roadway….
(7) That Defendants failed to protect travelers on Harmony Road
including but not limited to Plaintiffs, Teea S. Lunsford and
Maria L. Lunsford, by their negligence in failing to properly
maintain and repair the road in a reasonable fashion and/or to
meet ASSHTO standards, and by their failure to warn drivers
including, but not limited to Teea S. Lunsford of the treacherous
condition of the roadway.
Since Clay County properly delegated the duty to maintain Harmony Road to
Shand Mining, Clay County can only be liable if the Lunsfords demonstrate
that Shand Mining was negligent in its maintenance or repair of the road and
that Clay County negligently failed to supervise such repair or maintenance by
Shand Mining. The record, however, sets forth no testimony, affidavits,
depositions or other proof establishing that Shand Mining negligently repaired
or maintained the highway or that Clay County negligently supervised such
15
maintenance. Shand Mining contends solely that [the] Lunsfords’ complaint
presents an issue of fact regarding the cause of the accident. However, the
parties may not rest on the pleadings to establish a genuine issue of material
fact to withstand summary judgment. T.R. 56. As a result, Clay County is
entitled to judgment on the Lunsfords’ complaint as a matter of law.
Id. at 481-82 (footnote and some citations omitted).
In Reuhl, the City of Vincennes contracted with Environmental Management
Corporation (“EMC”) to operate and maintain its wastewater treatment facility. Pursuant to
the agreement, EMC was responsible for the city’s sewer collection lines and the related
collection system. Vincennes also “contracted with Rogers Construction Group, Inc., to
resurface various streets within the city. When Rogers resurfaced a street near a storm sewer,
it left space around the sewer so EMC could cement around its sewer grate.” 672 N.E.2d at
497. Virginia Reuhl was injured when she stepped into a hole next to a sewer grate.
As a result, Reuhl filed a complaint against Vincennes, EMC and Rogers,
claiming that the defendants negligently created the hole, failed to repair the
hole and failed to warn her of the hole. EMC filed a cross-claim against
Vincennes alleging that EMC was entitled to indemnity, pursuant to their
agreement, for damages resulting from Vincennes’ negligence.
Id. Vincennes filed a motion for summary judgment as to Reuhl’s complaint, asserting that it
was entitled to immunity pursuant to Indiana Code Section 34-13-3-3(10). The trial court
denied the motion, and Vincennes appealed.
Another panel of this Court addressed the immunity issue as follows:
Vincennes contends the trial court erred in denying its motion for
summary judgment on Reuhl’s claim. Specifically, Vincennes argues that
because it contracted with EMC and Rogers to maintain the sewer system and
the streets, any damage to Reuhl was caused by the acts or omissions of others.
As a result, Vincennes claims it was entitled to governmental immunity.
16
[Indiana Code Section 34-13-3-3(10)] provides that a governmental
entity is immune from liability for damages which result from the acts or
omissions of anyone other than the governmental entity. We recently
addressed whether a governmental entity who contracts with another to
perform a traditional government function could avoid liability under this
statute for damage based on the contract. In Shand Mining, Inc. v. Clay
County Bd. of Commissioners, 671 N.E.2d 477, 481 (1996), we held that while
a governmental entity could delegate its responsibility for maintaining streets
to a private party, it could not avoid liability for negligent maintenance of the
streets on the basis of its delegation. This holding was based on the well-
settled law in Indiana that a principal cannot avoid liability for the negligence
of its agent if the principal is by law or contract charged with performing the
specific duty. Bagley v. Insight Communications Co., L.P., 658 N.E.2d 584,
586 (Ind. 1995). In Indiana, governmental entities are charged with specific
obligations with respect to public travel. See City of Indianapolis v. Cauley,
164 Ind. 304, 309-10, 73 N.E. 691, 693, 694 (1905); IND. CODE § 8-17-3-2
(county supervisor has responsibility for supervision of maintenance and repair
of all highways within county). Thus, we held that the governmental entity
was not immune from liability.
In the instant case, the same analysis applies. Vincennes properly
exercised its discretion to delegate its duty to maintain its sewer system and
streets to EMC and Rogers. Nevertheless, Vincennes is not entitled to
immunity on the basis of its delegation because Vincennes is charged by law
with maintaining public travel. The trial court, therefore, properly denied
Vincennes’ motion for summary judgment on Reuhl’s claim for damages.
Id. at 497-98. The Reuhl court then dropped the following footnote:
Throughout their briefs, the parties argue about whether Reuhl’s
complaint alleges direct or vicarious liability against Vincennes. To the extent
that Reuhl’s complaint alleges Vincennes was negligent for acts delegated to
another party, its liability is vicarious. As a result, Vincennes[’] liability is
limited to its negligent failure to supervise the other party in its performance of
the delegated acts. See Shand, 671 N.E.2d at 481-82 (because county
delegated duty to maintain road, county could only be liable if plaintiff
demonstrated that county negligently failed to supervise such repair or
maintenance). However, to the extent that Reuhl’s complaint alleges
negligence for separate, non-delegated acts or omissions, Vincennes can be
held directly liable.
Id. at 498 n.1.
17
In this case, the trial court relied on both Shand Mining and Reuhl in denying the
County’s summary judgment motion, concluding as follows:
Because the County, as principal, has a non-delegable duty to maintain its
bridges, it is not immune from liability for acts or omissions of its independent
contractor (agent). Therefore, if [CBE] was negligent in the design of [the
bridge] and if that negligence caused damages to the Johnsons, then the
County can be held liable. Therefore, the County’s Motion for Summary
Judgment should be denied.
Appellant’s App. at 118. The County takes issue with the trial court’s (and the Johnsons’)
reliance on those cases, claiming that
Shand Mining and Reuhl engrafted an exception to the immunity [for
the act or omission of anyone other than the governmental entity or its
employee] directly from the common law – liability predicated on a non-
delegable duty. That engrafted exception has swallowed the immunity,
effectively eliminating “acts of others” immunity by replacing the statutory
immunity with the pre-existing common law. Under the common law,
Bartholomew County would not have been liable for any alleged negligence of
its independent contractor in the absence of a non-delegable duty. Statutory
immunity for “acts of others” would be unnecessary unless that immunity was
intended to eliminate the liability that would have existed under the common
law. Because the Legislature enacted “acts of others” immunity, it must have
intended to eliminate the only liability a governmental entity could have for the
acts of its independent contractors – liability predicated on the existence of a
non-delegable duty.
Appellants’ Reply Br. at 2.
We agree with the County. Indeed, we find it telling that neither Shand Mining nor
Reuhl mentions Hinshaw and that Indiana Code Section 34-13-3-3(10) contains no
exceptions to its straightforward grant of immunity. Although the Hinshaw court was not
faced with a situation involving an independent contractor and did not use the phrase “non-
delegable duty,” that concept was at the heart of its discussion of vicarious liability. See
18
Hinshaw, 611 N.E.2d at 640 (referring to imposition of vicarious liability for, among other
things, “intrinsically dangerous activity” conducted by “agents who are not employees or
subject to any right of control by the employer,” i.e., independent contractors); see also
Bagley, 658 N.E.2d at 586, 588 (“In Indiana, the long-standing general rule has been that a
principal is not liable for the negligence of an independent contractor. However, five
exceptions have been recognized for more than half a century. The exceptions are: (1) where
the contract requires the performance of intrinsically dangerous work; (2) where the principal
is by law or contract charged with performing the specific duty; (3) where the act will create
a nuisance; (4) where the act to be performed will probably cause injury to others unless due
precaution is taken; and (5) where the act to be performed is illegal.… [T]he five exceptions
represent specific, limited situations in which the associated duties are considered non-
delegable because public policy concerns militate against permitting an employer to absolve
itself of all further responsibility by transferring its duties to an independent contractor.”)
(emphasis added) (citations omitted).
The clear import of Hinshaw’s vicarious liability analysis is that Indiana Code Section
34-13-3-3(10) entitles a governmental entity to immunity from liability for a loss resulting
from the acts or omissions of an independent contractor; that liability would arise only if the
independent contractor had performed a non-delegable duty. See Becker v. Kreilein, 770
N.E.2d 315, 318 (Ind. 2002) (stating that aforementioned five exceptions “are the only bases
for establishing a duty of care by a principal who acts through an independent contractor”).
Indiana Code Section 34-13-3-3(10) would be useless in situations involving an independent
19
contractor if it did not apply to non-delegable duties, and we “presume that the legislature did
not enact a useless provision.” Hinshaw, 611 N.E.2d at 638.5 To the extent that Shand
Mining and Reuhl conflict with Hinshaw on this point, we respectfully disagree with those
cases.6 If Hinshaw is to be abrogated, it should be done by our supreme court. Consequently,
even assuming that a non-delegable duty exists in this case, we conclude that the trial court
erred in denying the County’s summary judgment motion as to its immunity from liability for
any of CBE’s acts or omissions and therefore reverse as to that issue.
That being said, we agree with Shand Mining and Reuhl to the extent they hold that a
governmental entity is not entitled to immunity pursuant to Indiana Code Section 34-13-3-
3(10) if a loss results from its own negligence, that is, if a loss results from an act for which it
“can be held directly liable.” Reuhl, 672 N.E.2d at 498 n.1. The Johnsons’ complaint alleges
that the County was negligent in the design, construction, maintenance, and operation of the
bridge. Appellees’ Br. at 1-3. Pursuant to its contract with the County, CBE was responsible
for designing the bridge, and we have held that the County is entitled to immunity from any
liability for CBE’s acts or omissions. In its reply to the Johnsons’ response to its summary
judgment motion, the County pointed out that the Johnsons had not alleged that it
“negligently supervised the design” of the bridge. Appellants’ App. at 109. The trial court
5
We also “presume that the legislature is aware of the common law and intends to make no change
therein beyond its declaration either by express terms or unmistakable implication.” Hinshaw, 611 N.E.2d at
639.
6
We also respectfully disagree with Indiana Department of Transportation v. Howard, 879 N.E.2d
1119 (Ind. Ct. App. 2008), which contains an extensive discussion of Shand Mining and Reuhl, to the extent
that it conflicts with Hinshaw.
20
has already entered summary judgment for the County as to any negligent construction
claims. That still leaves us with the Johnsons’ negligent maintenance and operation claims.
Because the County’s summary judgment motion was directed only toward the negligence of
third parties and the negligent design and construction claims, we remand for further
proceedings as to the County’s allegedly negligent maintenance and operation of the bridge.
II. Request for Attorneys’ Fees
Indiana Appellate Rule 66(E) provides that this Court “may assess damages if an
appeal, petition, or motion, or response, is frivolous or in bad faith. Damages shall be in the
Court's discretion and may include attorneys’ fees. The Court shall remand the case for
execution.” The Johnsons request attorneys’ fees pursuant to Appellate Rule 66(E),
complaining that the County’s “experienced and sophisticated” counsel, who were
“personally involved in the Shand Mining decision,” pursued an appeal despite being “aware
of the well-established case law precedent which was unfavorable to their position.”
Appellees’ Br. at 16. Because we have determined that the County’s immunity argument
prevails, we decline the Johnsons’ invitation to characterize this appeal as frivolous or in bad
faith as well as their request for attorneys’ fees.
Reversed and remanded.
BARNES, J., and PYLE, J., concur.
21
Bartholomew County and Bartholomew County Commissioners v. Doug Johnson and Lucretia Johnson v. C & H/M Excavating and Construction, Inc., and Christopher B. Burke Engineering, LTD.
Combined Opinion