OPINION
Douglas and Beth Luhnow (collectively, the "Lubnows") 1 appeal the trial court's grant of Eugene Horn's motion for summary judgment. The Luhnows raise two issues, which we expand and restate as:
1. Whether the law-of-the-case doctrine precluded the trial court from granting Horn's motion for summary judgment;
2. Whether the trial court erred by granting Horn's motion for summary judgment because the Luh-nows are entitled as third-party beneficiaries to enforce the contract between the Fulton County Drainage Board ("Drainage Board") and Horn; and
3. Whether the trial court erred by granting Horn's motion for summary judgment on the Luhnows' claim of nuisance.
We affirm.
The facts most favorable to the Luhnows follow. The Luhnows own property in Fulton County that is drained by the Starr Tile Drain ("Starr Drain") and the Trout-man Hogan Tile Drain ("Troutman Drain"). On May 18, 1996, the Drainage Board entered into a contract with Horn to replace the tile on the Starr and Troutman Drains, and the Luhnows were assessed for the replacements. After Horn's reconstruction of the drains, the Luhnows experienced a standing-water problem on their property.
The Luhnows filed a complaint against Horn that asserted two causes of action. 2 First, the Lubhnows alleged that they were third-party beneficiaries to the contract between the Drainаge Board and Horn and that Horn breached the contract by failing to install the tile on the Starr and Troutman Drains in a good and workmanlike manner. Second, the Luhnows alleged that Horn's work created a standing-water problem on their property that is a nuisance as defined by Ind.Code § 34-1-52-1.
In response to the Lubhnows' complaint, Horn filed a motion for judgment on the pleadings pursuant to Ind. Trial Rule 12(C), or, in the alternative, a motion for summary judgment. Neither party submitted evidence in addition to the aver-ments in the pleadings, nor relied upon matters outside the pleadings, at the hearing on Horn's motion for judgment оn the pleadings. Accordingly, the trial court treated Horn's motion solely as a judgment on the pleadings pursuant to Ind. Trial Rule 12(C). The trial court then granted Horn's motion for judgment on the pleadings. In a prior appeal, we reversed. See Luhnow v. Horn, No. 25A04-0005-CV-190, mem. op. at 7,
I
The first issue is whether the law-of-the-case doctrine precluded the trial court from granting Horn's motion for summary judgment. The Lubhnows argue that the law-of-the-case doctrine prohibited the trial court from granting Horn's motion for summary judgment because we had previously determined, based upon essentially the same evidence, that "we [could not] say that the Luhnows could not succeed on either their third-party beneficiary or nuisance claims." Luwhnow, mem. op. at 7.
The law-of-the-case doctrine provides that an appellate court's determination of a legal issue binds both the trial court and the court on appeal in any subsequent appeal involving the same case and substantially the same facts. Cha v. Warnick,
Our previous review of this case concerned an appeal from the trial court's grant of judgment on the pleadings in favor of Horn. See Luhnow, mem. op. at 2-7. In brief, the trial court granted Horn's motion for judgment on the pleadings, pursuant to Ind. Trial Rule 12(C), because it found that: (1) "the pleadings
Initially, we observe that the standards of review for judgment on the pleadings pursuant to Ind. Trial Rule 12(C) and summary judgment under Ind. Trial Rule 56(C) are quite different.
3
A judgment on the pleadings pursuant to Ind. Trial Rule 12(C) attacks the legal sufficiency of the pleadings. National R.R. Passenger Corp. v. Everton By Everton,
A.
First, the Luhnows argue that the law-of-the-case doctrine precluded the trial court from granting Horn's motion for summary judgment regarding the Lub-nows' status as third-party beneficiaries of the contract between the Drainage Board and Horn. When we previously reversed the trial court's grant of judgment on the pleadings in favor of Horn on the issue of whether the Lubhnows were third-party beneficiaries, we did not consider the merits of the Luhnows' complaint. Rather, because we were constrained by Ind. Trial Rule 12(C), we reviewed solely the pleadings and accepted all well-pleaded facts as true. In so doing, we observed that:
In their complaint, the Luhnows stated that they "were third party beneficiaries of the contract entered into between [the Drainage Board] and [Horn]." ... By moving for judgment on the pleadings, Horn is deemed to have admitted that fact to be in favor of the Luhnows and the trial court was required to construe that fact in the Luhnows' favor. Whether or mot the Lwhnows actually were third-party beneficiaries is a decision that must be made at a later date, either in a motion for summary judgment or at trial. Whether or not one is a third-party beneficiary is a fact question dealing with the intent of the contracting parties, and a judgment on the pleadings is not the proper vehicle for making that determination. Therefore, the trial court erred in granting the judgment on the pleadings with respect to whether or not the Lubhnows were third-party beneficiaries.
Luhnow, mem. op. at 5 (emphasis added).
In granting Horn's subsequent motion for summary judgment regarding whether the Luhnows were third-party beneficiaries to the contract between the Drainage Board and Horn, the trial court did not overrule or contradiet our earlier decision. Rather, Horn had given the trial court a different vehicle, equipped with a different standard of review, upon which to grant him judgment. While looking beyond the pleadings to the designated material, the trial court determined, as a matter of law, that the Luhnows were not third-party beneficiaries to the contract between the Drainage Board and Horn, and granted Horn summary judgment. Accordingly, the law-of-the-case doctrine is inapplicable to this issue, and the trial court acted appropriately when it considered Horn's motion for summary judgment regarding the Luhnows' claims as third-party beneficiaries. See, eg., North v. Newlin,
B.
Second, the Lubhnows contend that the law-of-the-case doctrine precluded thе trial court from granting Horn's motion for summary judgment on the issue of whether the Luhnows had a cognizable claim against Horn under the nuisance doctrine. In our previous reversal of the trial court's grant of judgment on the pleadings in favor of Horn on the nuisance issue, we accepted the parties' classification of the water in dispute as surface water. We then observed that although the nuisance doctrine generally does not apply to surface water, we could not say as a matter of law that an easement bestows the status of landowner upon the drainage board fоr purposes of the common-enemy doctrine. We expressed that:
Although Horn has argued that the Board has the right-of-way over the land that lies within a minimum of seventy-five feet of a regulated drain, we decline to decide here how, if at all, that applies to the common enemy doctrine. The fact still remains that whether or not the right-of-way classifies the Board as a "landowner" and invokes the common enemy doctrine, there would be a genuine issue of material fact and judgment on the pleadings is improper.
Lwhnow, mem. op. at 6 (emphasis added).
Further, in the previous appeal of this case, we determined that Harth Construction was factually distinguishable from the facts as plead in the pleadings because
the drain was in existence, and although it is not entirely clear, the fact that the Luhnows pleaded that they experienced damage to crops after the work was completed leads to the conclusion that there was no surface water problem until after tiles were replaced on an existing drain which, presumably, worked fine prior to the replacement. Given these facts, and our constraints to construe the facts most favorably to the Luhnows, we cannot say that the Luh-nows could not, in any way, succeedunder the facts and allegations made in their complaint.
Id. at T (referring to Earth Construction & Eng'g, Inc. v. DeMille,
However, in his motion for summary judgment, Horn presented evidence that, prior to the contract, the existing drains were not properly functioning and were in need of repair. Such evidence leads to the conclusion that the Starr and Troutman Drains were not functioning properly before the tile reconstruction. Because we expressly declined to decide whether the Drainage Board's right-of-way affected its status as a landowner under the common enemy doctrine and because Horn presented additional evidence on his motion for summary judgment to contra-diet our basis for previously distinguishing Earth Construction, the trial court did not contradict or redecide our earlier decision by granting Horn's motion for summary judgment on the nuisance issue. Consequently, no error occurred. See, eg., North,
IL.
The second issue is whether the trial court erred by granting Horn's motion for summary judgment because the Luhnows are entitled to enforce the contract between the Drainage Board and Horn as third-party beneficiaries. Generally, only parties to a contract or those in privity with them have the right to recover under a contract. Garco Indus. Equip. Co. v. Mallory,
A third party does not have the right to sue under a contract merely because he may derive an incidental benefit from the performance of the promisor. Harvey v. Lowry,
(1) A clear intent by the actual parties to the contract to benefit the third party;
(2) A duty imposed оn one of the contracting parties in favor of the third party; and
(8) Performance of the contract terms is necessary to render the third party a direct benefit intended by the parties to the contract.
NN Investors Life Insurance Co. Inc. v. Crossley,
In this case, the Luhnows fail to meet two of the three criteria establishing third-party beneficiary status. First, the contract does not show a clear intent to directly benefit landowners, such as the Lubhnows.
4
Mogensen v. Martz, 441
Nevertheless, the Luhnows argue that "other evidence," namely minutes from a Drainage Board meeting wherein the Drainage Board discussed the replacement of the Starr аnd Troutman Drains, creates a genuine issue of material fact as to whether the Drainage Board intended the contract with Horn to benefit the Luh-nows. The Lubhnows rely on several excerpts recorded in the minutes to demonstrate the intent required for a third-party beneficiary contract. These excerpts follow:
1. The Surveyor reported to the [Drainage] Board that this tile is old and in bad shape. The work is at the request of landowners.
2. The chairman said ... the [Drainage] Board's position is to carry out to the best of their ability the wishes of landowner. ., .
3. Steve Hartzler said he had no problems with [dеlaying the start of the job until weather conditions have improved] as long as the landowners had agreed.
4. Ken [Gentry Commissioner] asked the landowners/representatives present, what they expect from the bonding company....
5. Chairman, Richard Powell, then proceeded to poll the landowners individually for their comments.
Second, the contract did not transfer a duty in favor of the Luhnows from the Drainage Board to Horn. The drainage board has statutory jurisdiction over regulated drains in the county. See Ind. Code § 86-9-27-15. This jurisdiction extends over the maintenance and repair of such drains, including the ability tо assess property owners for the costs, and the power to contract with an outside contractor for construction or maintenance of a drain.
6
In the case at bar, the Drainage Board has the statutory duty to maintain regulated drains, such as the Starr and Troutman Drains, in Fulton County. This duty did not shift to Horn when the Drainage Board contracted with him for reconstruction work on the two drains. See, e.g., Mogensen,
Finally, the Luhnows assert that they are third-party beneficiaries of the contract between the Drainage Board and Horn because they, as landowners, were assessed for the cost of the contract. However, assessment alone does not make the property owner a third-party beneficiary. Id. at 386. The Drainage Board retains its statutory duty to maintain drains and its statutory power to assess the funds necessary for that maintenance. See Ind. Code § 36-9-27-84. As long as the Drainage Board did not impose an obligation in favor of the Luhnows on Horn, which it did not, the Lubhnows have no right to enforce the contract. Rawlings v. Vreeland,
IIL.
The final issue is whether the trial court erred by granting Horn's motion for summary judgment on the Luhnows' claim of nuisance. The Luhnows argue that Horn's reconstruction work on the Starr and Troutman Drains created a standing-water problem on their property that is a nuisance as defined by Ind.Code § 84-1-52-1. Horn contends that the common-enemy
Our supreme court described the common-enemy doctrine as follows:
In its most simplistic and pure form the rule known as the "common enemy doe-trine," declares that surface water which does not flow in defined channels is a common enemy and that each landowner may deal with it in such manner as best suits his own convenience. Such sanctioned dealings include walling it out, walling it in and diverting or accelerating its flow by any means whatever.
Argyelan v. Haviland,
In the present case, the Luhnows argue that the common-enemy doctrine does not apply to the standing-water experienced on their property because the Drainage Board contracted with Horn for the reconstruction work and the Drainage Board is not an adjaсent landowner to the Luh-nows. The question of whether the common-enemy doctrine applies to a dispute between a contractor of a drainage board that is statutorily obligated to maintain drains and a landowner is one of first impression.
First, we must determine whether the Drainage Board is a landowner within the meaning of the common-enemy doctrine. Ind.Code § 36-9-27-83 provides in pertinent part that:
(a) The county surveyor, the board, or an authorized representative of the surveyor or the board acting under this chapter has the right of entry over and upon land lying within seventy-five (75) feet of any regulated drain. The seventy-five (75) foot limit shall be measured at right angles to:
(1) the center line of any tiled drain; and
(2) the top edge of each bank of an open drain;
as determined by the surveyor. 7
(Emphasis and footnote added). Ind.Code § 36-9-27-33 confers upon the Drainage Board a statutory right-of-way or easement over any property lying within seventy-five feet of any regulated drain. See Johnson v. Kosciusko County Drainage Bd.,
However, the issue presented here is whether the common enemy doe-trine applies to the dispute between the Luhnows and Horn, a contractor of the Drainage Board. We previously confronted a similar issue in Earth Construction & Eng'g, Inc.,
[Tlhe allegations and evidence against [contractor] establish no basis for liability other than its original removal of the trees, brush, ete. and elimination of the previously existing depression, and/or its failure to construct a drainage ditch at the time the work was done. Those allegations are equally applicable to the employer-owner, and as to them, [contractor] is entitled to stand in the employer's shoes. Since the employer was entitled to alter the surface water drainage without incurring liability pursuant to the "common enemy doctrine," [contractor] did not incur liability simply because it performed the work.
Id. Likewise, today we hold that because the Drainage Board is entitled to alter the surface water, in the exercise of its casement, without incurring liability pursuant to the common enemy doetrine, 8 Horn too could not incur liability merely by performing the work. See, id. Consequently, the trial court did not err by granting Horn's motion for summary judgment on the Luhnows' claim of nuisance.
Affirmed.
Notes
. Thе following persons are named as plaintiffs on the amended complaint: Douglas and Beth Luhnow, William and Joy Sheridan, Joe and Jane Newman, Robert and Angela Plum-mer, Garold and Betty Field, Verl and Beverly Kreamer, Robert Sutton, William and Brenda Plummer, Nancy Crow, Arthur and Margaret Gudas, Doug Luhnow, and Fred Luhnow. Because only the Luhnows are named on the Appellants' Brief, we refer to all appellants collectively as the Luhnows.
. The Luhnows also asserted claims against the Drainage Board; however, the present appeal concerns only the Luhnows' claims against Horn.
. We recognize, however, that if on a motion for judgment on the pleadings, matters outside the pleadings are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Ind. Trial Rule 56. See Ind. Trial Rule 12(C). Here, because the parties did not present any evidence in addition to the pleadings, the trial court and this court in the previous appeal properly reviewed Horn's motion for judgment on the pleadings under Ind. Trial Rule 12(C). I4.
. The Luhnows contend that they are third-party beneficiaries of the contract between the Drainage Board аnd Horn because it was the Drainage Board's intent to benefit landowners. To support this proposition, the Luhnows rely on Centennial Mortgage, Inc. v. Blumenfeld,
. The Luhnows assert that the Drainage Board and Horn intended to benefit landowners in general as evidenced in the language of provision A of the contract. Provision A provides, in pertinent part, that: "Should any tree removal be necessary to accomplish the work the contractоr shall contact the landowner to make arrangements for disposal. It is anticipated that some fence removal may be necessary. Procedures for said removal shall be arranged with the owners." Appellant's Appendix at 26, 32. The Mogensen court encountered a similar provision in the contract before it, which provided in part: 'Trees and brush shall be burned and the stumps buried . and trees shall be piled at areas designated by the landowner, within 500' from their original location." Mogensen,
. See generally Ind.Code §§ 36-9-27-40, - 50, -77.
. Ind.Code § 36-9-27-2 provides that the term "Board" refers to the drainage board of a county.
. The Drainage Board is not immune from all liability under the common-enemy doctrine merely because we hold that it is a landowner with respect to its easement. Rather, the common-enemy doctrine applies to the Drainage Board so long as the Board acts pursuant to, and within the provisions of, the doctrine. If the Drainage Board were to intentionally divert a natural watercourse and cast the water on an adjacent landowner, the common-enemy doctrine would offer no benefit to the Drainage Board. For example, we have previously held with respect to a city's right to drain surface water that:
There is and can be no question as to the right of a city to construct ... a drain for carrying off the surface water, and thereby benefiting its streets and protecting the health of the inhabitants of the city; but a municipal corporation cannot, without liability, divert surface water from its natural course by such an artificial channel, and thereby cause it to flow in a body upon adjacent property....
City of Valparaiso v. Kyes,
