LBM Realty, LLC, d/b/a Summer Place Apartments v. Hillary Mannia
981 N.E.2d 569
Ind. Ct. App.2012Background
- LBM Realty, LLC d/b/a Summer Place Apartments owned the Granger, Indiana, complex where a fatal fire damaged the property.
- The fire occurred on July 3, 2010, causing $743,402.86 in damages.
- Insurer paid the loss and then filed a subrogation action in LBM’s name against tenant Hillary Mannia for negligence related to the fire.
- Mannia signed a March 2010 lease with Debra Mannia; the lease included insurance, waste, and miscellaneous provisions affecting liability and repairs.
- LBM filed a complaint May 6, 2011 seeking breach of contract and negligence against Mannia; Mannia moved to dismiss under Trial Rule 12(B)(6).
- The trial court granted the motion to dismiss, later vacated, then, after hearings, adopted a no-subrogation approach and held Mannia was an additional insured, dismissing LBM’s claims; on appeal, the Indiana Court of Appeals reversed and remanded, noting Indiana law permits landlord subrogation and that the merits must be evaluated under the pleadings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in dismissing LBM's subrogation claim. | LBM contends any subrogation claim is permissible under Indiana law. | Mannia argues the lease and public policy preclude subrogation against a tenant. | Trial court erred; subrogation permitted; remand for merits evaluation. |
Key Cases Cited
- United Farm Bureau Mut. Ins. Co. v. Owen, 660 N.E.2d 616 (Ind. Ct. App. 1996) (case discussed but did not adopt a fixed subrogation approach; referenced in Owen discussion)
- Cincinnati Ins. Co. v. Davis, 860 N.E.2d 915 (Ind. Ct. App. 2007) (subrogation rights against tenants discussed in Indiana appellate context)
- St. Paul Fire & Marine Ins. Co. v. Pearson Const. Co., 547 N.E.2d 853 (Ind. Ct. App. 1989) (subrogation considerations cited in Indiana)
- Erie Ins. Co. v. George, 681 N.E.2d 183 (Ind. 1997) (subrogation equity and rights principles in Indiana)
- Sutton v. Jondahl, 532 P.2d 478 (Okla. Ct. App. 1975) (no-subrogation rule described as ‘Sutton Rule’)
- RAM Mut. Ins. Co. v. Rohde, 820 N.W.2d 1 (Minn. 2012) (case-by-case and equity considerations in subrogation)