German A. Linares v. El Tacarajo and U-Pull-And-Pay, LLC d/b/a Pic A Part ( 2019 )


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  •                                                                   FILED
    Feb 08 2019, 7:54 am
    CLERK
    Indiana Supreme Court
    Court of Appeals
    and Tax Court
    ATTORNEYS FOR APPELLANT                                   ATTORNEYS FOR APPELLEE
    James R. Browne, Jr.                                      U-PULL-AND-PAY, LLC
    Andrew B. Janutolo                                        D/B/A PIC A PART
    Abaigeal F. Musser                                        Judy S. Okenfuss
    Goodin Abernathy LLP                                      Jenny R. Buchheit
    Indianapolis, Indiana                                     Gregory W. Pottorff
    Ice Miller LLP
    Indianapolis, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    German A. Linares,                                        February 8, 2019
    Appellant-Plaintiff,                                      Court of Appeals Case No.
    18A-CT-276
    v.                                                Appeal from the Marion Superior
    Court
    El Tacarajo and U-Pull-And-                               The Honorable Michael D. Keele,
    Pay, LLC d/b/a Pic A Part,                                Judge
    Appellees-Defendants.                                     Trial Court Cause No.
    49D07-1606-CT-21285
    Robb, Judge.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                   Page 1 of 22
    Case Summary and Issue
    [1]   German Linares suffered injuries when a mobile food truck serving food in the
    parking lot of an automobile salvage business exploded while he waited in line
    for his food. Linares sued both the food truck operator, El Tacarajo, LLC, and
    the salvage business, U-Pull-and-Pay, LLC doing business as Pic-A-Part
    (“UPAP”), for negligence. Linares appeals the entry of summary judgment for
    UPAP, raising one issue for our review: whether summary judgment was
    inappropriate because UPAP owed Linares a duty regarding dangerous
    activities on its property or, in the alternative, because UPAP was engaged in a
    joint venture with El Tacarajo and is vicariously liable for its negligent acts.
    Concluding UPAP did not owe Linares a duty and was not engaged in a joint
    venture with El Tacarajo, we affirm the trial court’s grant of summary judgment
    to UPAP.
    Facts and Procedural History
    [2]   UPAP is an automobile salvage business in Indianapolis, Indiana. In the
    course of its business, flammable materials are sometimes brought onto UPAP’s
    property when junk cars come into the salvage yard. Brian Brownstein, a
    UPAP assistant store manager on duty when this incident occurred, explained
    that when UPAP buys a car, it drains the fluids as part of preparing the car to
    “be out in the yard area where customers can pull parts[.]” Appendix of
    Appellant, Volume II at 135. In addition, UPAP sometimes comes across
    propane tanks or other flammable materials that have been left in cars: “we go
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019        Page 2 of 22
    to the auto return auction which tends to have repossessions. People don’t have
    time to take their belongings out of the car, or it was in a serious accident . . .
    there might have been like a tank in the trunk that they didn’t know about[.]”
    Id. at 137. UPAP’s employees have been trained in how to handle the
    flammable materials they come across and the company keeps flammables like
    aerosols, gasoline, and propane in a flame-retardant cabinet to promote safety
    at the salvage yard. UPAP also posts warnings and instructions for customers
    and checks customers’ bags and tool boxes as they enter to ensure they have not
    brought any tools or other materials onto the lot that could lead to fires or
    explosions.
    [3]   El Tacarajo operated a food truck that occasionally sold Mexican food from
    UPAP’s parking lot in 2014 and 2015. Brownstein stated that this arrangement
    was “a handshake deal” that had been set up when El Tacarajo approached a
    previous manager and asked if it could come on site to sell food. Id. at 59.
    UPAP’s local store managers knew that El Tacarajo would sell food from the
    parking lot on busy days, usually Saturdays and Sundays, but UPAP had “no
    expectation” about when they would come; “[i]t was just like whenever.” Id. at
    145; see also id. at 154 (Dan Ulrich, general manager for UPAP’s eastern stores,
    stating El Tacarajo would “come in and sell some food and leave. Come and
    go as they please.”). El Tacarajo paid UPAP $25.00 per day on at least some of
    the days they set up in UPAP’s parking lot, but Brownstein was “not sure [the
    payments] were made every time[.]” Id. at 61.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019         Page 3 of 22
    [4]   UPAP never asked if El Tacarajo was licensed to sell food. UPAP did not ask
    El Tacarajo whether it had fire safety procedures in place for using gasoline or
    propane to operate its truck. In fact, Brownstein stated at his deposition that he
    never had contact with anyone at the food truck. Ulrich noted that El Tacarajo
    was “not one of our vendors to where we would be checking all of their
    identifications.” Id. at 154. UPAP was not aware of any prior incidents
    involving an explosion, fire, or other dangerous condition created by a food
    truck, gas generator, or grill on its premises at any time prior to June 20, 2015.
    Neither UPAP nor El Tacarajo was aware of any dangerous condition of the
    food truck or its equipment that would have or could have caused an explosion
    at any time prior to June 20, 2015. Linares, who was a regular customer of
    UPAP and who had purchased food from El Tacarajo several times before,
    stated that he had no reason to believe the food truck was dangerous.
    [5]   On June 20, 2015, El Tacarajo was on UPAP’s property selling food from its
    food truck. The food truck was positioned in the customer parking lot next to a
    concrete wall partitioning the parking lot from the salvage yard. Linares also
    visited UPAP on that date to purchase automobile glass. After making his
    purchase from UPAP, Linares ordered food from El Tacarajo. As he waited for
    his food, the food truck suddenly exploded and caught fire. Linares was injured
    and taken by ambulance to Eskenazi Hospital for treatment.
    [6]   The Indianapolis Fire Department determined the explosion was caused by the
    ignition of gas fumes from an open cooking flame. The Marion County Public
    Health Department made similar findings, concluding that an El Tacarajo
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019       Page 4 of 22
    employee caused the explosion when, in order to refill a generator, he opened a
    can of gasoline too close to a flattop grill.
    [7]   On June 15, 2016, Linares filed his complaint against UPAP1 and El Tacarajo,
    alleging in Count One that El Tacarajo was negligent in its handling of
    combustible fuels, in failing to have a license from the Marion County Health
    Department, in failing to train its employees, and in failing to inspect its truck
    and equipment. Count Two alleged UPAP was negligent in failing to monitor
    or inspect El Tacarajo’s operations, failing to determine whether El Tacarajo
    was properly licensed, and failing to study the food truck’s safety procedures.
    Count Two also alleged UPAP was vicariously liable for El Tacarajo’s
    negligent acts because it was engaged in a joint venture with El Tacarajo.
    [8]   During discovery, UPAP served requests for admissions on El Tacarajo, asking
    El Tacarajo to admit: El Tacarajo did not share profits with UPAP; UPAP did
    not pay El Tacarajo to market or sell food to UPAP’s customers; UPAP and El
    Tacarajo were not engaged in a joint venture; and UPAP did not control any
    aspect of El Tacarajo’s business or operations. Despite participating in this
    litigation by, for instance, filing an appearance, filing an answer and jury
    demand, and attending depositions, El Tacarajo did not respond to the requests
    for admissions.
    1
    Linares first filed his complaint against El Tacarajo and Parts Landlord, LLC d/b/a Pic a Part but later
    amended his complaint to identify UPAP d/b/a Pic a Part as the proper defendant.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                              Page 5 of 22
    [9]    UPAP then filed a motion for summary judgment arguing first that UPAP had
    no duty to protect Linares from the unforeseeable actions of El Tacarajo and
    second that it was not vicariously liable for the negligent acts of El Tacarajo.
    Following a hearing, the trial court granted UPAP’s motion for summary
    judgment and finding no just reason for delay, entered final judgment in favor
    of UPAP. Linares timely filed a notice of appeal on February 9, 2018.
    Discussion and Decision                             2
    I. Standard of Review
    [10]   When reviewing the grant or denial of summary judgment, we apply the same
    test as the trial court: summary judgment is appropriate only if the designated
    evidence shows there is no genuine issue of material fact and the moving party
    is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Sedam v. 2JR
    Pizza Enterps., LLC, 
    84 N.E.3d 1174
    , 1176 (Ind. 2017). “A fact is ‘material’ if its
    resolution would affect the outcome of the case, and an issue is ‘genuine’ if a
    trier of fact is required to resolve the parties’ differing accounts of the truth, or if
    the undisputed material facts support conflicting reasonable inferences.”
    Hughley v. State, 
    15 N.E.3d 1000
    , 1003 (Ind. 2014).
    2
    We heard oral argument in this case on October 25, 2018, at Purdue University. We extend our
    appreciation to the University, the Krannert Executive MBA Program, and the students for their hospitality,
    and to the attorneys for their presentations.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                             Page 6 of 22
    [11]   Our review is limited to those facts designated to the trial court, T.R. 56(H),
    and we construe all facts and reasonable inferences drawn from those facts in
    favor of the non-moving party, Meredith v. Pence, 
    984 N.E.2d 1213
    , 1218 (Ind.
    2013). On appeal, the non-moving party carries the burden of persuading us the
    grant of summary judgment was erroneous. Hughley, 15 N.E.3d at 1003. A
    grant of summary judgment will be affirmed if it is sustainable upon any theory
    supported by the designated evidence. Miller v. Danz, 
    36 N.E.3d 455
    , 456 (Ind.
    2015).
    II. Summary Judgment
    A. Negligence
    [12]   To prevail on his negligence claim, Linares must show: 1) UPAP owed a duty
    to Linares; 2) UPAP breached that duty by allowing its conduct to fall below
    the applicable standard of care; and 3) UPAP’s breach of duty proximately
    caused a compensable injury to Linares. Smith v. Walsh Constr. Co. II, LLC, 
    95 N.E.3d 78
    , 84 (Ind. Ct. App. 2018), trans. denied. The element of duty is
    generally a question of law to be determined by the court, whereas the elements
    of breach and proximate cause generally present questions of fact to be
    determined by the factfinder. 
    Id.
     Thus, the question of UPAP’s duty to Linares
    is amenable to determination by summary judgment. Id. at 85.
    [13]   Linares contends that UPAP had a duty to take reasonable steps to ensure that
    El Tacarajo’s food truck operation did not harm Linares while he was on
    UPAP’s property. He claims that given the nature of UPAP’s business, a gas
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019       Page 7 of 22
    explosion of any sort on UPAP’s property was foreseeable and therefore, UPAP
    had a duty to take “reasonable precautionary steps to inspect El Tacarajo’s
    operations[.]” Appellant’s Brief at 11.
    [14]   The duty a landowner owes to an invitee is well-established by Indiana
    premises liability law: a landowner must exercise reasonable care for the
    invitee’s protection while the invitee is on the premises. Rogers v. Martin, 
    63 N.E.3d 316
    , 320 (Ind. 2016). When a physical injury occurs as a result of a
    dangerous condition on the premises, the Restatement (Second) of Torts section
    343 accurately describes the landowner-invitee duty.3 Id. at 322-23. However,
    injuries can also occur due to dangerous activities on the premises unrelated to
    the premises’ condition, and landowners owe their invitees the general duty of
    reasonable care under those circumstances, as well. Id. at 323. The “critical
    element” in deciding whether a duty should be extended to a case in which an
    invitee’s injury occurs due to some harmful activity on the premises is
    foreseeability. Id. at 324.
    3
    Restatement (Second) of Torts section 343 (1965) provides:
    A possessor of land is subject to liability for physical harm caused to his invitees by a
    condition on the land if, but only if, he
    (a) knows or by the exercise of reasonable care would discover the condition, and should
    realize that it involves an unreasonable risk of harm to such invitees, and
    (b) should expect that they will not discover or realize the danger, or will fail to protect
    themselves against it, and
    (c) fails to exercise reasonable care to protect them against the danger.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                                   Page 8 of 22
    [15]   Foreseeability as a component of duty is evaluated differently than
    foreseeability in the context of proximate cause: whereas foreseeability for
    purposes of proximate cause requires an evaluation of the facts of the actual
    occurrence, foreseeability for purposes of duty is a general threshold
    determination that requires a more general analysis of the broad type of plaintiff
    and harm involved, without regard to the specific facts of the occurrence.
    Cosgray v. French Lick Resort & Casino, 
    102 N.E.3d 895
    , 900 (Ind. Ct. App. 2018)
    (the “foreseeability analysis”). “[F]or purposes of determining whether an act is
    foreseeable in the context of duty we assess whether there is some probability or
    likelihood of harm that is serious enough to induce a reasonable person to take
    precautions to avoid it.” Goodwin v. Yeakle’s Sports Bar and Grill, Inc., 
    62 N.E.3d 384
    , 392 (Ind. 2016) (quotation omitted).
    [16]   The parties agree that Linares was an invitee on UPAP’s property. The parties
    also agree that UPAP therefore owed Linares the duty to exercise reasonable
    care to keep its premises in a reasonably safe condition and to warn him of
    known dangers or dangers that should have been known to UPAP. The parties
    disagree on the appropriate test to be applied in determining whether UPAP
    had a duty to protect Linares from the food truck explosion.
    [17]   Linares first asserts his claim should be evaluated under section 343 of the
    Restatement (Second) of Torts and a committee comment thereto, arguing that
    he was “injured due to a dangerous appliance and the hazardous use of
    explosive materials[,]” and if UPAP had taken “reasonable precautionary steps
    to inspect El Tacarajo’s operations, it could have foreseen and prevented the
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019       Page 9 of 22
    explosion[.]” Appellant’s Br. at 11-12.4 Linares concludes UPAP, by the
    exercise of reasonable care, would have discovered the dangerous condition of
    the food truck and should have realized that it involved an unreasonable risk of
    harm to Linares and other business invitees.
    [18]   We disagree with Linares that UPAP’s duty should be determined under the
    standard section 343 analysis for injuries resulting from a condition of the land.
    Although Linares is correct that when an injury occurs as a result of some
    condition on the land, section 343 describes the landowner-invitee duty and a
    foreseeability analysis is not required, Linares was not injured by a condition of
    UPAP’s land. “Conditions of the land” are typically physical characteristics,
    such as untreated ice, a decaying tree, or uneven flooring. See Dehoyos v. Golden
    Manor Apartments, 
    101 N.E.3d 874
     (Ind. Ct. App. 2018) (addressing premises
    liability under section 343 when plaintiff slipped on ice on sidewalk outside her
    apartment building); Marshall v. Erie Ins. Exch., 
    923 N.E.2d 18
     (Ind. Ct. App.
    4
    The comment, quoted by Linares in his brief at page 13, states:
    f. Appliances used on land. A possessor who holds his land open to others must possess
    and exercise a knowledge of the dangerous qualities of the place itself and the appliances
    provided therein, which is not required of his patrons. Thus, the keeper of a
    boardinghouse is negligent in providing a gas stove to be used in an unventilated
    bathroom, although the boarder who is made ill by the fumes uses the bathroom with
    knowledge of all the circumstances, except the risk of so doing. This is true because the
    boardinghouse keeper, even though a man of the same class as his boarders, is required to
    have a superior knowledge of the dangers incident to the facilities which he furnishes to
    them.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                               Page 10 of 22
    2010) (unhealthy tree fell onto neighbor’s house in urban or residential area),
    trans. denied; Smith v. King, 
    902 N.E.2d 878
     (Ind. Ct. App. 2009) (plaintiff fell
    through hole in floor of house under construction).
    [19]   In Jones v. Wilson, 
    81 N.E.3d 688
     (Ind. Ct. App. 2017), the plaintiff attended a
    wrestling event at a county fairgrounds and was injured when she was assaulted
    by an unknown assailant as she walked through a dark parking lot to her car
    after the event. The plaintiff sued the event promoter and the fairgrounds’
    owner, and the trial court granted summary judgment to the promoter. On
    appeal, the parties disagreed over whether section 343 or the foreseeability
    analysis should be applied: the plaintiff argued she was injured because the lack
    of lighting which contributed to her attack is a condition of the land, whereas
    the promoter argued she was injured by an assailant not by, for instance,
    stepping in a hole and therefore she was injured because of activities occurring
    on the land. Id. at 694-95. The court agreed with the promoter: the plaintiff’s
    “injuries resulted from the conduct of a third person” and the foreseeability
    analysis therefore applied. Id. at 695. This situation is similar: although it was
    the stove in the food truck on UPAP’s property igniting that caused the
    explosion, Linares’s injuries resulted from the activities of El Tacarajo’s
    employees in relation to that stove. Therefore, the foreseeability analysis must
    be applied to determine if a duty exists at all.
    [20]   Despite claiming his injuries were caused by a condition of the land, and
    despite further claiming that the foreseeability analysis should not apply
    because this case does not involve a criminal or intentional act, Linares does
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019       Page 11 of 22
    address the foreseeability analysis. He advocates that in this case, the test
    requires considering whether “a gasoline explosion or fire on UPAP’s property
    that could harm its customers” was foreseeable and concludes that it was.
    Appellant’s Br. at 15. In support of his argument, Linares notes that flammable
    materials regularly come onto UPAP’s property; that its employees are trained
    in safety hazards connected with collecting, storing, and handling those
    materials; and that it takes steps to prevent customers from using ignition
    sources in the yard; therefore, UPAP was at least theoretically aware of the
    hazards associated with flammable materials.5 Linares’s reliance on UPAP’s
    policies and procedures related to its own business are irrelevant for purposes of
    this analysis because it was not the activities surrounding UPAP’s business that
    caused Linares’s injuries. In other words, Linares was not injured by an
    explosion of flammable materials that belonged to or were the responsibility of
    UPAP. For this reason, we also disagree with Linares that the “broad type of
    harm” is any explosion on UPAP’s premises.
    [21]   Although the foreseeability analysis for determining duty is a consideration of
    the broad “zone of danger” that could be caused by activities on the land (as
    opposed to the more specific “zone of danger” addressed by proximate cause),
    we do not conduct the analysis in the broadest terms possible. For instance, in
    5
    To the extent Linares relies on the fact that there was a fire on UPAP’s property in the past, Brownstein
    stated at his deposition that a car caught fire during his time working for UPAP, but he could not recall
    whether it occurred before or after the food truck explosion. App. of Appellant, Vol. II at 138. Moreover, it
    was a car in the salvage yard that caught fire, not a food truck or even a car in the parking lot. For both of
    those reasons, that fire does not make the food truck explosion foreseeable.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                              Page 12 of 22
    Goodwin, the court identified the broad type of harm as “the probability of a
    criminal attack, namely: a shooting inside a bar.” 62 N.E.3d at 393. Thus, it is
    clear that we do not completely divorce this analysis from the circumstances; if
    we were to do so, the broad type of harm in Goodwin would have been
    described as simply the probability of an altercation between two bar patrons.
    See also Estate of Staggs ex rel. Coulter v. ADS Logistics Co., LLC, 
    102 N.E.3d 319
    ,
    325 (Ind. Ct. App. 2018) (identifying the plaintiffs as motorists and the broad
    type of harm that occurred as “a vehicular accident after commercial cargo
    became unsecured and struck the motorists” rather than the broadest definition
    of the type of harm as simply a “motor vehicle accident”), trans. denied; Polet v.
    ESG Sec., Inc., 
    66 N.E.3d 972
    , 983 (Ind. Ct. App. 2016) (identifying the type of
    plaintiff as “a patron of an outdoor concert” and the broad type of harm as “the
    probability or likelihood of a stage collapse caused by a strong wind”).
    [22]   Accordingly, Linares’s formulation of the foreseeability analysis is too broad.
    True, UPAP was generally aware that flammable liquids and open flames can
    interact explosively and therefore had a duty to protect its invitees from
    explosions due to the materials that belonged to it. But for purposes of the
    foreseeability analysis, the type of plaintiff is a patron of a business and the
    broad type of harm is the probability or likelihood that an independently
    operated food truck on the premises of that business would explode or catch fire
    due to employee error.
    [23]   No one—not UPAP, not El Tacarajo, and not Linares himself—believed or had
    any reason to believe the food truck was defective or dangerous. Had UPAP
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019         Page 13 of 22
    inspected the food truck, as Linares believes it should have, first, it is unclear
    what UPAP, as a salvage business, would have been qualified to inspect for,
    and second, there still would not have been any reason to believe the food truck
    was defective, because it was not in fact a defect that caused the explosion but
    rather human error. As for UPAP’s alleged failure to inquire about El
    Tacarajo’s license, the record indicates as of August 2014, El Tacarajo had an
    expired certified food handler certificate and an unpaid licensing fee. It is not
    clear that remained true as of the date of this incident and further, the licensing
    requirement apparently had no bearing on safe operation of the food truck, only
    the safe handling of food. Finally, there was no designated evidence to suggest
    UPAP had knowledge of any food truck explosions anywhere in the past, let
    alone any of the same or similar nature.
    [24]   Should food trucks be inspected? Probably. Should UPAP have taken more
    interest in a mobile business it allowed to operate on its premises and sell to its
    customers? Possibly. But should a company in a completely unrelated private
    business which periodically provides a parking space be required to conduct
    that inspection and ensure the food truck is safely maintained and its employees
    properly trained? Even if UPAP had asked the questions Linares and the
    dissent argue it should have, it still would not have been reasonably foreseeable
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019        Page 14 of 22
    to UPAP that the food truck would suddenly explode because of an employee’s
    negligence.6
    [25]   In a recent case, this court considered whether a lake owner had a duty to
    protect a swimmer from contracting a rare brain infection caused by an amoeba
    found naturally in fresh water. Daviess-Martin Cty. Joint Parks & Recreation Dep’t
    v. Estate of Abel by Abel, 
    77 N.E.3d 1280
     (Ind. Ct. App. 2017), trans. denied. The
    court determined that it was not reasonably foreseeable that a swimmer would
    contract such an infection and held there was no duty. 
    Id. at 1289-90
    . In that
    case, the landowner’s obligation was to provide a safe lake and yet the court
    found there was no duty and reversed the trial court’s denial of summary
    judgment in favor of the landowners. Here, we are reviewing the grant of
    summary judgment where the defendant is several steps removed from being
    directly responsible for the instrument causing damage.
    [26]   Focusing on the harm inflicted on Linares when an employee of a food truck
    UPAP occasionally allowed onto its property—an employee whose job it was
    to operate a mobile food truck that relies on a generator to power its
    6
    Linares concludes that “[a] jury should be left with the task of determining whether, under a complete
    picture of the evidence, UPAP breached a duty owed to Mr. Linares.” Appellant’s Br. at 15. It is unclear
    whether Linares is advocating that we apply the “totality of the circumstances” test that was abandoned by
    our supreme court when it decided Goodwin, see 62 N.E.3d at 389 (“[W]e now recognize that although the
    ‘totality of the circumstances’ test is useful in determining foreseeability in the context of proximate
    causation, it is inappropriate when analyzing foreseeability in the context of duty.”), or whether he is arguing
    that the case should be decided on the factual determination of breach. In either event, determining whether
    UPAP owed Linares a duty using the foreseeability analysis is the threshold determination. See Cosgray, 102
    N.E.3d at 900; Goodwin, 62 N.E.3d at 386 (“Absent a duty there can be no negligence or liability based upon
    the breach.”).
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                               Page 15 of 22
    operations—fueled the generator in too close proximity to an open flame, we
    conclude that such harm was not normally to be expected and thus was not
    reasonably foreseeable by UPAP. Linares’ injury is unfortunate, but UPAP did
    not owe him a duty.
    B. Vicarious Liability
    [27]   Linares also advanced a claim for vicarious liability alleging UPAP and El
    Tacarajo were engaged in a joint venture. “As in a partnership, the parties to a
    joint venture are jointly and severally liable.” DLZ Indiana, LLC v. Greene Cty.,
    
    902 N.E.2d 323
    , 330 (Ind. Ct. App. 2009). A joint venture is “an association of
    two or more persons formed to carry out a single business enterprise for profit.”
    Robbins v. Trustees of Indiana University, 
    45 N.E.3d 1
    , 6 (Ind. Ct. App. 2015). In
    a joint venture, “the parties must be bound by an express or implied contract
    providing for (1) a community of interests, and (2) joint mutual control, which
    is an equal right to direct and govern the undertaking that binds the parties to
    the agreement.” 
    Id.
     A joint venture agreement also must provide for sharing of
    profits. 
    Id.
     A joint venture is similar to a partnership, except a joint venture
    contemplates a single transaction. 
    Id.
    [28]   Although whether a joint venture exists is generally a question of fact, where
    the question can be resolved by looking only at undisputed facts, the existence
    of a joint venture is a question of law appropriate for summary judgment. DLZ
    Indiana, LLC., 
    902 N.E.2d at 328
    . Our review of the designated materials
    reveals that to the extent there was an agreement between El Tacarajo and
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019      Page 16 of 22
    UPAP, and to the extent such agreement may have been mutually beneficial, it
    is undisputed that any such agreement did not provide for mutual control over
    the venture. El Tacarajo unilaterally decided when to go to UPAP’s premises
    to sell its food, who to employ, what food it would offer, and how much it
    would charge. UPAP unilaterally decided where on its property El Tacarajo
    could park and it could have told El Tacarajo to leave on any given day or to
    leave and never return. No decisions were made jointly by UPAP and El
    Tacarajo in regard to the food truck operation.
    [29]   In addition, it is undisputed that even if El Tacarajo occasionally paid UPAP
    for use of its parking lot, it always paid $25.00 and that amount had no
    relationship to the profits El Tacarajo earned during a given sales day. See
    Walker v. Martin, 
    887 N.E.2d 125
    , 138 (Ind. Ct. App. 2008) (holding that parties
    were not engaged in a joint venture because they did not share in any profit
    from the sale of logs, although one party paid the other per load based on miles
    traveled or per board feet of wood hauled), trans. denied; Inland Steel v. Pequignot,
    
    608 N.E.2d 1378
    , 1382 (Ind. Ct. App. 1993) (holding that a contract for steel
    shipments at predetermined rates is not profit sharing for purposes of
    establishing a joint venture), trans. denied. Thus, any agreement the parties had
    did not provide for profit-sharing.
    [30]   The fact that two or more parties agree to work “jointly and in collaboration”
    or “collectively” does not necessarily mean that they are engaged in a joint
    venture. DLZ Indiana, LLC, 
    902 N.E.2d at 329
    . Even without considering El
    Tacarajo’s failure to respond to UPAP’s requests for admissions about the
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019        Page 17 of 22
    arrangement, the undisputed designated evidence demonstrates that UPAP was
    not engaged in a joint venture with El Tacarajo for the purpose of finding
    UPAP vicariously liable for El Tacarajo’s negligence.
    Conclusion
    [31]   Linares has failed to carry his burden to show us that the trial court’s decision
    to grant summary judgment in favor of UPAP was improper.
    [32]   Affirmed.
    Vaidik, C.J., concurs.
    Kirsch, J., dissents with opinion.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019      Page 18 of 22
    IN THE
    COURT OF APPEALS OF INDIANA
    German A. Linares,
    Appellant-Plaintiff,                                      Court of Appeals Case No.
    18A-CT-276
    v.
    El Tacarajo and U-Pull-And-
    Pay, LLC d/b/a Pic A Part,
    Appellees-Defendants.
    Kirsch, Judge, dissenting.
    [1]   Food truck explosions occurred in Traverse City, Michigan in 2013;
    Philadelphia, Pennsylvania in 2014; Foggy Bottom, District of Columbia in
    2016; Portland, Oregon in 2017; Downtown, District of Columbia in 2017; and
    in Southwest Washington, District of Columbia, in 2018.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                   Page 19 of 22
    [2]   In the Philadelphia explosion, two people were killed; nine others were injured.
    The explosion shook buildings in the area and sent a fireball 200 feet into the
    air. The leaking propane tank was sent ninety-five feet onto neighboring
    property. The subsequent lawsuit was settled for One Hundred and Sixty
    Million Dollars, believed to be the largest pre-trial personal injury settlement in
    the state.
    [3]   Food trucks carry flammable materials in close proximity to open-fire grills. As
    such, they pose inherent dangers. The National Fire Prevention Journal reported
    that “A standard 20-gallon propane tank has the same explosive capability in
    170 sticks of dynamite.” NFPA Journal, May-June 2015.
    [4]   Beginning in 2014, El Tacarajo operated a food truck from time to time upon
    the premises of U-Pull-and-Pay, LLC (“UPAP”). El Tacarajo routinely paid
    UPAP $25.00 for each day it parked its truck on their premises and sold food
    which was cooked on its truck to UPAP’s customers.
    [5]   On June 20, 2015, German Linares came upon UPAP’s property to conduct
    business with UPAP. While there, he stood in line at the El Tacarajo food
    truck which was parked upon the UPAP premises. While he was waiting, the
    food truck exploded, injuring Linares. It was later determined that the
    explosion was caused by an El Tacarajo employee who opened a can of
    gasoline too close to a hot grill on the truck.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019      Page 20 of 22
    [6]   Linares was on the UPAP property for a business purpose. He was a business
    invitee and was owed a duty of reasonable care. He sustained physical harm
    caused by the accidental or negligent acts of an El Tacarajo employee.
    [7]   UPAP was well aware of the risks of explosions from handling flammable
    materials. Indeed, as noted in the majority opinion, UPAP trains its employees
    in handling flammable materials and posts warnings and instructions for its
    customers about the dangers.
    [8]   Notwithstanding its knowledge of the risks of mishandling gasoline, propane,
    and other flammable materials, UPAP made no inquiry or investigation of El
    Tacarajo’s use of flammable substances on its property in close proximity to its
    customers. UPAP failed to make reasonable inquiries about El Tacarajo’s
    operations and failed to determine whether such operations posed an
    unreasonable risk of harm to its customers.                 Indeed, nothing in the record
    before us indicates that UPAP made any inquiry regarding (1) whether El
    Tacarajo was licensed to sell food in the conduct of its business, (2) whether it
    trained its employees in the handling of flammable substances in close
    proximity to heat sources, (3) whether it used gasoline or other flammable
    substances in its operations, (4) whether it had proper fire safety procedures in
    place, or (5) whether it complied with legal and safety requirements.
    [9]   Restatement of the Law 2d, Torts (1965), Section 344 provides:
    A possessor of land who holds it open to the public for entry for
    his business purposes is subject to liability to members of the
    public while they are upon the land for such a purpose, for
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019                 Page 21 of 22
    physical harm caused by the accidental, negligent, or intentional
    harmful acts of third persons or animals, and by the failure of the
    possessor to exercise reasonable care to
    (a) discover that such acts are being done or are likely to be done,
    or
    (b) give a warning adequate to enable the visitors to avoid the
    harm, or otherwise to protect them against it.
    [10]   Summary judgment is rarely appropriate in negligence cases and, from my
    perspective, is not appropriate here. These cases are fact sensitive and are
    governed by a standard of the objective reasonable person. The determination
    of liability should be made by a jury after hearing all the evidence. Rhodes v.
    Wright, 
    805 N.E.2d 382
    , 387 (Ind. 2004).
    [11]   I would reverse the judgment of the trial court and remand for further
    proceedings.
    Court of Appeals of Indiana | Opinion 18A-CT-276 | February 8, 2019       Page 22 of 22
    

Document Info

Docket Number: Court of Appeals Case 18A-CT-276

Judges: Kirsch

Filed Date: 2/8/2019

Precedential Status: Precedential

Modified Date: 10/19/2024