Arc Construction Management, LLC, and Alan Muncy v. John Zelenak and Cecilia Zelenak
2012 Ind. App. LEXIS 74
Ind. Ct. App.2012Background
- In 2004, Zelenaks contracted ARC to construct a home in Floyd County.
- In 2008, Zelenaks sued ARC; amended complaint later added claims including breach of implied warranty of habitability.
- ARC moved to dismiss (treated as summary judgment) and foreclosure later affected standing.
- Trial court preserved one remaining claim: loss of use and enjoyment during occupancy.
- The amended complaint alleged defects such as improper window/door installation, missing rafter, exposed wires, and water intrusion.
- Court of Appeals affirmed denial of summary judgment on the remaining implied warranty claim and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in denying summary judgment on the remaining claim. | Zelenaks maintain a breach of implied warranty of habitability remains. | ARC contends loss of use is not a claim, only damages; no remaining viable claim. | Summary judgment denial on the implied warranty claim affirmed. |
Key Cases Cited
- Dinsmore v. Fleetwood Homes of Tenn., Inc., 906 N.E.2d 186 (Ind. Ct. App. 2009) (implied warranty of habitability extends to latent defects and notice applies to builder-vendor)
- City of Clinton v. Goldner, 885 N.E.2d 67 (Ind. Ct. App. 2008) (notice pleading suffices to put defendant on notice of claim)
- Buschman v. ADS Corp., 782 N.E.2d 423 (Ind. Ct. App. 2003) (pleadings sufficient if they notify what evidence will be presented)
- State v. American Family Voices, Inc., 898 N.E.2d 293 (Ind. Ct. App. 2008) (pleading standards under Indiana notice pleading rules)
- Founds of E. Chicago, Inc. v. City of E. Chicago, 927 N.E.2d 900 (Ind. 2010) (standing requires personal stake and potential injury)