Diane Haas v. Michael Carpenter (mem.dec.)
46A04-1610-SC-2437
| Ind. Ct. App. | May 16, 2017Background
- Diane Haas owned a four-unit rental property and leased units to Michael Carpenter, who moved among units #3, #2, and #1; a $600 security deposit followed him.
- Carpenter told Haas in spring 2016 he had experienced bed bugs in apartment #2 since December 2015 and suspected the basement tenant as the source.
- Haas hired Hatfield Pest Control to inspect and treat all four units for bed bugs; total remediation cost was $3,075.00.
- Haas sued Carpenter in small claims court seeking remediation costs, loss of rent for two units, and other repairs; bench trial followed.
- The small claims court awarded Haas $768.75 (one quarter of the remediation cost), $250 for other repairs, credited Carpenter’s $600 deposit, and denied loss-of-rent damages, entering judgment of $418.75 plus costs.
- Haas appealed, arguing she should recover the full remediation cost and $2,300 in lost rent as resulting from Carpenter’s failure to comply with sanitation/extermination obligations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether landlord may recover full building-wide bed-bug remediation costs from tenant | Haas: Carpenter failed to follow LaPorte ordinance and lease sanitation clause; his noncompliance obligated landlord to treat entire building, so tenant should pay $3,075 | Carpenter: Bed bugs existed in at least two units; he was not established as the original source; landlord treated all units and responsibility should be apportioned | Court: Affirmed apportionment; landlord failed to prove Carpenter was sole source, so only 1/4 of cost ($768.75) charged to Carpenter |
| Whether landlord may recover consequential damages (loss of rent) caused by tenant’s alleged failure to prevent infestation | Haas: Carpenter’s breach caused unit(s) to be unrentable during treatment; seeks $2,300 in lost rent | Carpenter: Landlord failed to show lost rent flowed naturally from his conduct; other factors (backyard condition) and occupied units show no uninhabitability | Court: Denied loss-of-rent award; landlord did not prove damages were foreseeable and caused by Carpenter rather than other factors |
Key Cases Cited
- Trinity Homes, LLC v. Fang, 848 N.E.2d 1065 (Ind. 2006) (deferential review of small-claims bench-trial factual findings and appellate standard)
- City of Dunkirk Water & Sewage Dep’t v. Hall, 657 N.E.2d 115 (Ind. 1995) (context on informal small-claims procedures and review)
- Hastetter v. Fetter Properties, LLC, 873 N.E.2d 679 (Ind. Ct. App. 2007) (parties in small claims bear same burdens of proof as in general civil actions)
- Johnson v. Scandia Assocs., 717 N.E.2d 24 (Ind. 1999) (rule on consequential damages: must flow naturally from breach and be foreseeable)
- Indianapolis City Market Corp. v. MAV, Inc., 915 N.E.2d 1013 (Ind. Ct. App. 2009) (damages cannot be speculative)
- Mint Mgmt., LLC v. City of Richmond, 69 N.E.3d 561 (Ind. Ct. App. 2017) (statutory/ordinance construction principles)
- Rollet Family Farms, LLC v. Area Plan Comm’n of Evansville-Vanderburgh Cty., 994 N.E.2d 734 (Ind. Ct. App. 2013) (interpretation rules for ordinances/statutes)