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16 N.E.3d 426
Ind. Ct. App.
2014
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Background

  • Goodrich leased land and hired Paradigm for theater design; Roncelli was general contractor and subcontracted Wilson Iron (structural steel), Fostcorp (HVAC), and Johnson Carpet (carpeting). Construction delayed; theater opened Jan 2007.
  • Structural drawings (S105, S106) included a nonstandard "hourglass" mark indicating joist girder openings for HVAC; the mark was not an industry-standard symbol (SJI) and not defined in contract documents.
  • Wilson Iron produced and installed standard joist girders per approved shop/erection drawings; Paradigm later told Wilson Iron girders should have openings, prompting disputes and extra work claims by Wilson Iron.
  • Fostcorp performed HVAC modifications approved by Roncelli but recorded a mechanic’s lien for unpaid sums; Johnson Carpet also sought payment under competing written and oral proposals and recorded a mechanic’s lien.
  • Trial court issued a May 1, 2012 order resolving most claims but reserved Johnson Carpet issues; later orders (July–Aug 2013) resolved Johnson Carpet claims and awarded attorney fees; Roncelli appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Timeliness of appeal (finality of May 1 Order) Appellees: May 1 Order was final; appeal untimely Roncelli: May 1 Order not final because Johnson Carpet claims unresolved and Rule 2 language lacking May 1 Order was not final; appeal timely
Interpretation of hourglass mark on drawings Roncelli: mark unambiguously showed openings in joist girders Wilson Iron: drawings and contract required standard joist girders; hourglass symbol undefined Hourglass mark did not modify contract; Wilson Iron complied with contract
Contractor duty to discover defects in plans Roncelli: Wilson Iron should have discovered ambiguous mark and alerted GC Wilson Iron: mark was not reasonably discoverable as conflicting with contract documents Trial court findings that Wilson Iron could not reasonably know of defect upheld
Award of attorney fees under mechanic’s lien statute Appellees: IC § 32-28-3-14 entitles lienholders who recover judgment to attorney fees Roncelli: mechanic’s-lien statute targets property owners; Roncelli is not owner so fees improper against it Fees under § 32-28-3-14 awarded against Roncelli were reversed; court abused discretion in awarding those fees

Key Cases Cited

  • Neu v. Gibson, 968 N.E.2d 262 (Ind. Ct. App. 2012) (timely notice of appeal is jurisdictional)
  • Infinity Prods., Inc. v. Quandt, 810 N.E.2d 1028 (Ind. 2004) (standard for reviewing findings and judgment)
  • Gerstbauer v. Styers, 898 N.E.2d 369 (Ind. Ct. App. 2008) (contract interpretation reviewed de novo)
  • Hilbert v. Conseco Servs., L.L.C., 836 N.E.2d 1001 (Ind. Ct. App. 2005) (interpretation should harmonize contract provisions)
  • St. Paul Fire & Marine Ins. Co. v. Pearson Constr. Co., 547 N.E.2d 853 (Ind. Ct. App. 1989) (contractor duty to discover patent defects in plans)
  • Premier Inv. v. Suites of Am., Inc., 644 N.E.2d 124 (Ind. 1994) (purpose of mechanic’s-lien statutes)
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Case Details

Case Name: Goodrich Quality Theaters, Inc. v. Fostcorp Heating & Cooling, Inc.
Court Name: Indiana Court of Appeals
Date Published: Aug 20, 2014
Citations: 16 N.E.3d 426; 2014 WL 4098766; 2014 Ind. App. LEXIS 406; No. 64A03-1308-PL-318
Docket Number: No. 64A03-1308-PL-318
Court Abbreviation: Ind. Ct. App.
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    Goodrich Quality Theaters, Inc. v. Fostcorp Heating & Cooling, Inc., 16 N.E.3d 426