Correct Roofing Inc. v. Alfredo Vasquez ( 2024 )


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  •                                             IN THE
    Court of Appeals of Indiana
    Correct Roofing, Inc.,
    Appellant-Plaintiff/Counterclaim-Defendant
    FILED
    v.                    Oct 18 2024, 8:35 am
    CLERK
    Indiana Supreme Court
    Alfredo Vasquez,                     Court of Appeals
    and Tax Court
    Appellee-Defendant/Counterclaim-Plaintiff
    October 18, 2024
    Court of Appeals Case No.
    23A-CT-2535
    Appeal from the Elkhart Superior Court
    The Honorable Christopher J. Spataro, Judge
    Trial Court Cause No.
    20D05-2107-CT-141
    Opinion by Judge May
    Judges Vaidik and Kenworthy concur.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024   Page 1 of 24
    May, Judge.
    [1]   Correct Roofing, Inc., (“Correct Roofing”) appeals following the trial court’s
    order granting Alfredo Vasquez’s motion for summary judgment and entering a
    judgment in favor of Vasquez for $23,040.00. Correct Roofing presents two
    issues for our review, which we revise, restate, and reorder as:
    1. Whether the trial court erred by striking portions of an affidavit and
    exhibits Correct Roofing submitted in opposition to Vasquez’s motion
    for summary judgment; and
    2. Whether the trial court erred by granting Vasquez’s motion for
    summary judgment.
    We affirm.
    Facts and Procedural History
    [2]   In June 2019, a hailstorm damaged the roof of Vasquez’s house in Goshen,
    Indiana. After the storm, Correct Roofing canvased Vasquez’s subdivision and
    solicited residents to hire Correct Roofing to repair the damage to their homes.
    Vasquez agreed to hire Correct Roofing, and the parties executed a contract on
    June 29, 2019. The contract listed a total estimated cost of $10,415.10 to repair
    Vasquez’s roof. The contract also stated:
    Terms: This agreement is for FULL SCOPE OF INSURANCE
    PROCEEDS and is subject to insurance company approval and
    does not obligate homeowner or Correct Roofing, Inc. unless
    repairs are approved by homeowners’ insurance company. By
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024       Page 2 of 24
    signing this agreement the homeowner authorizes Correct
    [Roofing] to pursue homeowners’ best interest for all repairs at a
    price agreeable to the insurance company and Correct [Roofing]
    at NO ADDITIONAL COST TO THE HOMEOWNER
    EXCEPT FOR THE INSURANCE DEDUCTIBLE. The final
    price agreed on between the insurance company and Correct
    [Roofing] shall become the final contract price of: FULL SCOPE
    OF INSURANCE PROCEEDS. The specifications set out
    herein and on the reverse side hereof to accomplish the
    replacement or repair.
    I hereby authorize Correct Roofing, Inc. to negotiate directly
    with my insurance company for all property damage repairs at
    the above address and hereby grant power of attorney to the
    same to act as my agent to negotiate property damage claim
    settlement. Correct Roofing, Inc. is hereby authorized to
    perform at their discretion all insurance prescribed repairs for the
    price of full scope of insurance proceeds agreed upon by my
    insurance company and Correct [Roofing]. The terms and
    specifications stated herein and special conditions following
    hereof are by [sic] accepted. I hereby authorize my Insurance
    company and/or mortgage company to make payment for
    completed repairs directly to Correct Roofing, Inc. and mail
    directly to the same.
    (App. Vol. 2 at 64.)
    [3]   On August 11, 2019, Erie Insurance sent Vasquez a letter discussing his claim.
    The letter explained:
    The breakdown of the loss is as follows:
    *****
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024       Page 3 of 24
    Replacement Cost of Repair:    $10, 415.10
    Less Deductible:               $(500.00)
    Total Claim:                   $9,915.10
    Less Recoverable Depreciation: $5,583.71
    Actual Case Value:             $4,331.39
    Although your policy is a replacement cost policy, your claim is
    being settled on an Actual Cash Value (ACV) basis. ACV equals
    the replacement cost value less depreciation. By policy we owe
    the ACV of the repairs or items needing replacement until they
    are repaired or replaced as stated under the Loss Settlement
    provisions of your policy.
    In order to process your replacement cost claim, we will need
    original receipts for the repair and/or replacement. We may also
    require an inspection of the completed repairs or replacement.
    (Id. at 67.) Vasquez paid the $4,331.39 actual cash value insurance proceeds to
    Correct Roofing.
    [4]   Correct Roofing did not properly repair Vasquez’s roof, and after Correct
    Roofing finished its work on Vasquez’s roof, the roof leaked. The leaks resulted
    in damage to the interior of Vasquez’s house. Vasquez attempted to contact
    Correct Roofing to discuss the faulty repairs, but Correct Roofing would not
    return his phone calls. Vasquez subsequently hired Gonzalez Construction
    (“Gonzalez”) to correctly repair the roof. Gonzalez removed the lower sub-
    roofing/roof decking along the base of the entire perimeter of Vasquez’s roof
    and installed new decking, shingles, gutters, and fascia. Gonzalez charged
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024   Page 4 of 24
    Vasquez $7,000.00 for those repairs. Gonzalez also estimated that it would cost
    $9,800.00 to repair the drywall and interior damage to Vasquez’s house.
    [5]   On July 9, 2021, Correct Roofing filed a complaint against Vasquez alleging
    claims for breach of contract and quantum meruit. The complaint alleged
    Vasquez agreed to pay Correct Roofing $10,415.10 to repair his roof and
    Vasquez did not pay Correct Roofing that amount after Correct Roofing had
    completed its work. On September 13, 2021, Vazquez filed his answer and
    counterclaims against Correct Roofing. Vasquez denied the material
    allegations in Correct Roofing’s complaint and asserted claims for breach of
    contract, violation of the Home Improvement Contracts Act (“HICA”), 
    Ind. Code § 24-5-11-1
     et. seq., and violation of the Home Improvement Warranties
    Act, 
    Ind. Code § 32-27-1-1
     et. seq., against Correct Roofing. Vasquez alleged
    Correct Roofing improperly repaired his roof after receiving $4,331.39 and
    refused to remediate its faulty work.
    [6]   On February 17, 2022, Vasquez served Correct Roofing with requests for
    admission. Those requests stated:
    REQUEST FOR ADMISSIONS NO. 1. Correct [Roofing] is
    an Indiana corporation located in La Porte, Indiana.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 2. Mr. Vasquez paid
    Correct [Roofing] $4,331.39.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024   Page 5 of 24
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 3. Correct [Roofing] did
    not properly repair the Property’s roof.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 4. Correct [Roofing] did
    not return phone calls to Mr. Vasquez regarding his notice that
    Correct [Roofing] improperly repaired the Property’s roof.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 5. Correct [Roofing] did
    not perform additional services for Mr. Vasquez after he notified
    it of his claim that Correct [Roofing] improperly repaired the
    Property’s roof.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 6. Correct [Roofing] is a
    real property improvement supplier under Indiana Code 24-5-11-
    6.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 7. Correct [Roofing] is a
    remodeler under Indiana Code 32-27-1-10.
    RESPONSE:
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024        Page 6 of 24
    REQUEST FOR ADMISSIONS NO. 8. Correct [Roofing]
    solicited Mr. Vasquez to repair the roof for the Property after a
    storm damaged the roof.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 9. A complete and
    accurate copy of the contract between Correct [Roofing] and Mr.
    Vasquez is attached as Exhibit A to these [R]equests for
    Admission.
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 10. The Contract
    attached as Exhibit A does not list an email address for, or on
    behalf of, Correct [Roofing].
    RESPONSE:
    REQUEST FOR ADMISSIONS NO. 11. Correct [Roofing]
    was required by statute to warrant the roof and roof system of the
    Property from defects in materials and workmanship for four
    years from the date Correct [Roofing] last performed work at the
    Property.
    RESPONSE:
    (Id. at 41-44.) Vasquez also served Correct Roofing with interrogatories and
    requests for production. Correct Roofing did not respond to the requests for
    admission, and on March 30, 2022, Vasquez filed a motion to admit the
    requests for admission. The trial court granted Vasquez’s motion on April 1,
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024        Page 7 of 24
    2022. On April 15, 2022, Correct Roofing emailed Vasquez the company’s
    responses to the interrogatories and requests for production.
    [7]   On August 16, 2023, Vasquez filed a motion for summary judgment. Vasquez
    asserted Correct Roofing breached its contract with Vasquez by failing to
    correctly repair the roof and by attempting to hold Vasquez responsible for the
    full cost of repair rather than working with Vasquez’s insurance company as
    provided in the contract. Vasquez also argued Correct Roofing violated HICA
    by not including an email address in the contract and not curing its faulty work
    within thirty days. 1
    [8]   Correct Roofing filed its response in opposition to Vasquez’s summary
    judgment motion on September 13, 2023, and Correct Roofing designated an
    affidavit from Tyrone Murray. In the affidavit, Murray averred:
    1. I am over 21 years of age and competent to testify.
    2. I have personal knowledge of all the matters that I now give
    testimony to.
    2. It is stated, falsely, in the summary judgment motion and
    supported filings that Correct Roofing offered to do “roof repairs
    for a great deal” and that Correct would collect its payment from
    1
    Vasquez’s summary judgment motion did not reference his allegation that Correct Roofing also violated the
    Home Improvement Warranties Act, and Vasquez appears to have abandoned that claim.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024                          Page 8 of 24
    the insurance and only charge the homeowner for the cost of
    their insurance deductible.
    3. Correct never promised it would do roof repairs for a great
    deal and collect payments from the insurance.
    4. To be clear, the insurance company settles the claim with us
    for an agreeable price and sends the payment to the homeowner
    who then is supposed to pay us. The deductible is the
    homeowners responsibility.
    5. Correct entered into the agreement with Alfredo Vasquez to
    replace the roof if possible.
    6. It was explained through Mr. Vasquez’s son, due to language
    barrier, that his roof damage was marginal and we weren’t
    making any promises the insurance company would pay for it.
    *****
    8. The amount collected from the Vasquez’s was $4331.39.
    9. It’s a false statement that repairs were not done correctly.
    Roof repairs were done properly.
    (Id. at 106-07) (errors in original, including the duplicative numbering of
    paragraph 2). Murray also stated in the affidavit that Vasquez tried to get
    Correct Roofing to perform additional work for free and refused to pay Correct
    Roofing when Correct Roofing declined to perform the additional work.
    Attached to Murray’s affidavit was a picture of a house labeled as Exhibit A,
    purported email correspondence labeled as Exhibits B and C, and a purported
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024      Page 9 of 24
    document from the City of Goshen’s Building Department. Correct Roofing
    asserted that the statements in Murray’s affidavit created genuine issues of
    material fact that precluded summary judgment.
    [9]    On September 19, 2023, Vasquez filed a motion to strike Murray’s affidavit and
    the associated exhibits. Vasquez asserted:
    The affidavit of Tyrone Murray is hearsay. Mr. Murray is not a
    party to the lawsuit. The affidavit does not provide any
    foundation showing he has the authority to make admissible and
    authoritative statements relevant to the case. The affidavit
    contains hearsay and hearsay within hearsay . . . The affidavit
    includes speculation and opinion testimony, which Mr. Murray
    is not entitled to make. The affidavit contradicts and disputes
    facts deemed admitted by this Court. The affidavit is unreliable
    and should not be relied upon by this court.
    Exhibit A, which appears to be a picture of a house, lacks
    foundation and is inadmissible. Exhibit B is inadmissible
    hearsay. Exhibits C and D lack foundation, are also inadmissible
    hearsay and were never produced to Mr. Vasquez in discovery.
    (Id. at 101.) Vasquez also filed a reply in support of his motion for summary
    judgment arguing that Correct Roofing’s response rested upon inadmissible
    evidence and represented an impermissible attempt to create genuine issues of
    material fact by contradicting facts that were previously deemed admitted.
    [10]   On October 3, 2023, the trial court held a hearing on Vasquez’s motion to strike
    and his motion for summary judgment. At the hearing, the parties discussed
    the requests for admission, and Correct Roofing contended that it had produced
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024    Page 10 of 24
    its responses to the requests for admission when it had produced its other
    discovery responses. The trial court reviewed the email Correct Roofing sent to
    Vasquez with its discovery responses attached. The trial court noted Correct
    Roofing sent the email after the trial court had entered its order deeming the
    requests for admission admitted and that the email did not reference responses
    to requests for admission. The trial court also noted Correct Roofing never
    moved to withdraw the admissions between when the court entered the order in
    April 2022 and the summary judgment hearing.
    [11]   The trial court granted Vasquez’s motion to strike from the bench. The trial
    court explained:
    I find that there are several reasons to grant the Defendant’s
    Motion to Strike. One is that we have admitted items which are
    then contradicted and there is case law that will indicate that . . .
    a party cannot put forth self-serving affidavits in the future that
    contradict whether it’s deposition testimony or other facts that
    have been deemed admitted. So, for that reason at least part of
    the allegations in the affidavit and the submissions to the Court
    by the Plaintiff . . . would be either inadmissible or subject to
    being stricken for [sic] not being considered by the Court.
    The other reasons include that . . . we have an affidavit by a
    person who’s not identified as . . . an officer or agent of the
    company. And while he might have personal knowledge about
    some things, in order for documents to come into evidence, there
    needs to be a foundation. And that could be through an . . .
    803(B)(6) . . . admission . . . a business record admission or it
    could be through some other foundation establishing this photo is
    . . . a fair and accurate representation of the house as it sat on
    such and such date with such and such factors. And I don’t see
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024        Page 11 of 24
    the – the requisite foundation so for reasons of . . . contradicting .
    . . previously deemed admitted facts, . . . lack of foundation and
    to certain paragraphs, hearsay or hearsay within hearsay, I . . .
    believe that the Defendant’s Motion to Strike needs to be
    granted.
    (Tr. Vol. 2 at 17-18.)
    [12]   On October 12, 2023, the trial court issued a written order granting Vasquez’s
    motion for summary judgment. The trial court ruled Vasquez was entitled to
    summary judgment with respect to Correct Roofing’s breach of contract claim
    against Vasquez because there was no dispute that Correct Roofing received the
    actual cash value insurance proceeds and “[t]here is no evidence of a
    replacement cost claim made by Correct [Roofing] that was approved by Erie.”
    (App. Vol. 2 at 16.) The trial court also ruled that Correct Roofing breached its
    contract with Vasquez by improperly repairing his roof and that “Mr. Vasquez
    did not obtain the substantial benefit of the repairs Correct [Roofing] performed
    as there were roof leaks and further damage after Correct [Roofing] finished its
    work.” (Id. at 18.) The trial court awarded Vasquez damages of $7,000.00 to
    reimburse him for the cost of hiring Gonzalez to properly repair the roof. In
    addition, the trial court awarded Vasquez $9,800.00 so that he could repair the
    damage done to his drywall and the interior of his house. The trial court also
    found that Correct Roofing’s failure to include an email address in its contract
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024        Page 12 of 24
    violated HICA. 2 The trial court declined to award Vasquez treble damages, but
    the trial court did award Vasquez $6,240.00 in attorney fees. In total, the trial
    court entered judgment in Vasquez’s favor for $23,040.00.
    Discussion and Decision
    1. Motion to Strike
    [13]   Correct Roofing asserts the trial court erred by granting Vasquez’s motion to
    strike. We review a trial court’s ruling on a motion to strike for an abuse of
    discretion. Luse Thermal Tech., LLC v. Graycor Indus. Constructors, Inc., 
    221 N.E.3d 701
    , 710 (Ind. Ct. App. 2023), trans. denied. “An abuse of discretion
    occurs when the trial court’s decision is clearly against the logic and effect of
    the facts and circumstances before it.” 
    Id. at 710-11
    . Indiana Trial Rule 56(E)
    governs the material a party may designate at summary judgment and states:
    “Supporting and opposing affidavits shall be made on personal knowledge,
    shall set forth such facts as would be admissible in evidence, and shall show
    affirmatively that the affiant is competent to testify to the matters stated
    therein.” “The affidavit requirements of Trial Rule 56(E) are mandatory and . .
    . [t]he party offering the affidavit into evidence bears the burden of establishing
    its admissibility.” D.H. by A.M.J. v. Whipple, 
    103 N.E.3d 1119
    , 1126 (Ind. Ct.
    App. 2018), reh’g denied, trans. denied. Thus, the party asking us to reverse a trial
    2
    See 
    Ind. Code § 24-5-11-10
    (a)(2)(B)(iii) (requiring real property improvement contract entered into after
    June 30, 2017, to include an electronic mail address maintained and used by the owner, officer, employee, or
    agent to communicate with consumers).
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024                           Page 13 of 24
    court’s ruling granting a motion to strike must convince us the stricken material
    satisfied Rule 56(E)’s requirements. See, e.g., Kader v. Ind. Dept. of Corr., 
    1 N.E.3d 717
    , 725 (Ind. Ct. App. 2013) (holding affidavit submitted by plaintiff
    should not have been stricken because it was based on the personal knowledge
    of the affiant and stated facts which would be admissible in evidence).
    [14]   However, we will not invent arguments on the challenging party’s behalf. See
    Applegate v. State, 
    230 N.E.3d 944
    , 952 (Ind. Ct. App. 2024) (“it is not
    appropriate for this Court to make that argument on [appellant’s] behalf”),
    trans. denied. Indiana Appellate Rule 46(A)(8)(a) provides that the argument
    section of an appellant’s brief “must contain the contentions of the appellant on
    the issues presented, supported by cogent reasoning.” The appellant must
    support its contentions by citation to relevant authorities, statutes, and
    appendices. 
    Id.
     In Miller v. Patel, our Indiana Supreme Court expounded on
    the importance of these requirements:
    The purpose of our appellate rules, Ind. Appellate Rule 46 in
    particular, is to aid and expedite review and to relieve the
    appellate court of the burden of searching the record and briefing
    the case. We will not step in the shoes of the advocate and
    fashion arguments on his behalf, nor will we address arguments
    that are too poorly developed or improperly expressed to be
    understood. The premise of our adversarial system is that
    appellate courts do not sit as self-directed boards of legal inquiry
    and research, but instead are tasked with solving disputes as
    arbiters of legal questions presented and argued by the parties
    before them. . . . We do not exist to answer every legal question
    that may exist in the ether; rather, we resolve concrete issues
    properly tested through the adversarial process: adequate and
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024       Page 14 of 24
    cogent briefing is required for that process to live up to its
    potential.
    
    212 N.E.3d 639
    , 657 (Ind. 2023) (emphasis in original) (internal quotation
    marks and citations omitted). Consequently, “[w]hile we prefer to decide cases
    on their merits, we will deem alleged errors waived where appellant’s
    noncompliance with the rules of appellate procedure is so substantial it impedes
    our appellate consideration of the errors.” Tipton v. Est. of Hofmann, 
    118 N.E.3d 771
    , 776 (Ind. Ct. App. 2019).
    [15]   Here, the trial court granted Vasquez’s motion to strike because several of the
    paragraphs in Murray’s affidavit contradicted facts that the trial court had
    already deemed admitted, numerous paragraphs contained hearsay and hearsay
    within hearsay, and the affidavit did not lay an adequate foundation to
    demonstrate the admissibility of its attached exhibits. Correct Roofing does not
    specifically designate any paragraph that the trial court struck and explain why
    the trial court erred as to that paragraph. Correct Roofing also does not make
    any argument related to hearsay nor does it assert the affidavit stated sufficient
    facts to support admission of the exhibits attached to the affidavit. Correct
    Roofing states several legal conclusions, but it does not develop arguments in
    support of its conclusions. For example, Correct Roofing asserts Murray is
    Correct Roofing’s owner and that it “laid an adequate foundation for any
    personal knowledge and therefore shown he had ‘inherent authority.’”
    (Appellant’s Br. at 18.) However, Correct Roofing does not explain how
    Murray’s role as owner gave him personal knowledge of the stricken material in
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024     Page 15 of 24
    the affidavit or why the trial court should have reasonably inferred that it did.
    Likewise, while Correct Roofing complains about Vasquez’s use of requests for
    admission on matters like liability, Correct Roofing does not explain why the
    trial court’s decision to strike the portions of Murray’s affidavit that
    contradicted Correct Roofing’s prior admissions was an abuse of discretion.
    Because Correct Roofing does not present a cogent argument that the trial court
    abused its discretion by granting Vasquez’s motion to strike, we hold Correct
    Roofing’s challenge is waived. See, e.g., Martin v. Hunt, 
    130 N.E.3d 135
    , 138
    (Ind. Ct. App. 2019) (holding appellant waived all issues on appeal due to
    failure to present cogent argument).
    2. Motion for Summary Judgment
    [16]   Correct Roofing also asserts that the trial court erred by granting summary
    judgment in favor of Vasquez. We review a trial court’s ruling on a motion for
    summary judgment de novo. Miller, 212 N.E.3d at 644. “Summary judgment
    is proper only ‘if the designated evidentiary matter shows that there is no
    genuine issue as to any material fact and that the moving party is entitled to a
    judgment as a matter of law.’” Id. (quoting Ind. Trial Rule 56(C)). “We
    construe the evidence in favor of the nonmovant and resolve all doubts against
    the moving party.” Bird v. Valley Acre Farms, Inc., 
    177 N.E.3d 459
    , 466-67 (Ind.
    Ct. App. 2021). While a trial court’s entry of findings of fact and conclusions of
    law may aid our review, the findings and conclusions do not bind us. Cranfill v.
    Ind. Dep’t of Transp., 
    209 N.E.3d 450
    , 453 (Ind. Ct. App. 2023).
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024       Page 16 of 24
    [17]   Both Correct Roofing and Vasquez alleged that the other party breached the
    contract that Correct Roofing and Vasquez entered for Correct Roofing to
    repair Vasquez’s roof. Correct Roofing alleged in its complaint that “Vasquez
    agreed to pay Correct Roofing $10,415.10 for the roof repair.” (App. Vol. 2 at
    21.) Conversely, Vasquez alleged he paid Correct Roofing $4,331.39, and
    Correct Roofing failed to correctly repair his roof, and he had to hire a second
    contractor to remediate Correct Roofing’s work and suffered additional damage
    to the interior of his home. “The essential elements of a breach of contract
    claim are the existence of a contract, the defendant’s breach, and damages to
    the plaintiff as a result.” Brazier v. Maple Lane Apartments I, LLC, 
    45 N.E.3d 442
    ,
    455 (Ind. Ct. App. 2015), reh’g denied, trans. denied. The “party injured by a
    breach of contract may recover consequential damages from the breaching
    party.” L.H. Controls, Inc. v. Custom Conveyor, Inc., 
    974 N.E.2d 1031
    , 1043 (Ind.
    Ct. App. 2012). Consequential damages are those losses flowing naturally and
    probably from the breach. 
    Id.
     Typically, consequential damages are limited to
    the non-breaching party’s reasonably foreseeable economic losses. 
    Id.
    [18]   Vasquez designated in support of its motion for summary judgment a copy of
    the contract between Correct Roofing and Vasquez. Correct Roofing attached a
    copy of the same contract to its complaint, and Correct Roofing does not
    dispute its accuracy. Looking at the terms of the contract, it did not obligate
    Vasquez to pay $10,415.10. While the contract listed $10,415.10 as the
    estimated cost of repair, the contract only obligated Vasquez to pay the full
    scope of the insurance proceeds he received to Correct Roofing. It stated: “The
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024     Page 17 of 24
    final price agreed on between the insurance company and Correct [Roofing]
    shall become the final contract price of: FULL SCOPE OF INSURANCE
    PROCEEDS.” (App. Vol. 2 at 64.) The contract also authorized Correct
    Roofing to negotiate directly with Vasquez’s insurance company and provided
    that Correct Roofing was “to perform at their discretion all insurance prescribed
    repairs for the price of full scope of insurance proceeds agreed upon by my
    insurance company and Correct [Roofing].” (Id.) In addition, the contract
    allowed Vasquez’s insurance company to pay Correct Roofing directly. Thus,
    the contract only obligated Vasquez to pay Correct Roofing the amount his
    insurance company agreed to pay out on his claim plus his deductible. Correct
    Roofing admitted that Vasquez paid it $4,331.39, and pursuant to the terms of
    the contract, Correct Roofing assumed the obligation to negotiate with Erie to
    receive further payment.
    [19]   “In a contract for work, there is an implied duty to do the work skillfully,
    carefully, and in a workmanlike manner.” Benge v. Miller, 
    855 N.E.2d 716
    , 719
    (Ind. Ct. App. 2006). “It is well established that ‘[w]hen one party to a contract
    commits the first material breach of that contract, it cannot seek to enforce the
    provisions of the contract against the other party if that other party breaches the
    contract at a later date.’” A House Mechs., Inc. v. Massey, 
    124 N.E.3d 1257
    , 1262
    (Ind. Ct. App. 2019) (quoting Coates v. Heat Wagons, Inc., 
    942 N.E.2d 905
    , 917
    (Ind. Ct. App. 2011)) (brackets in A House Mechs., Inc.). We consider several
    factors in determining whether a breach is material, including:
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024     Page 18 of 24
    (A) the extent to which the injured party will be deprived of the
    benefit which he reasonably expected;
    (B) the extent to which the injured party can be adequately
    compensated for the part of that benefit of which he will be
    deprived;
    (C) the extent to which the party failing to perform or offer to
    perform will suffer forfeiture;
    (D) the likelihood that the party failing to perform or to offer to
    perform will cure his failure, taking account of all the
    circumstances including any reasonable assurances; and
    (E) the extent to which the behavior of the party failing to
    perform or to offer to perform comports with standards of good
    faith and fair dealing.
    Ream v. Yankee Park Homeowner’s Ass’n, Inc., 
    915 N.E.2d 536
    , 543 (Ind. Ct. App.
    2009), trans. denied.
    [20]   In support of his motion for summary judgment, Vasquez designated Correct
    Roofing’s admission that it “did not properly repair [Vasquez’s] roof.” (App.
    Vol. 2 at 73.) Vasquez also averred:
    7. After Correct [Roofing] claimed it was done repairing our
    Home, I discovered many leaks in the newly repaired roof.
    8. The leaks caused water damage to the interior of the Home.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024          Page 19 of 24
    9. When I attempted to contact Correct [Roofing] regarding
    remedying the issues from their work on our Home[,] Correct
    [Roofing] did not respond to my communications.
    10. We hired a new contractor, Gonzalez Construction, to
    repair, remedy, and complete the work performed by Correct
    [Roofing] on our Home. I also requested that Gonzalez
    Construction provide me with an estimate to repair the water
    damage caused by Correct [Roofing’s] repairs to our Home.
    11. Gonzalez Construction was paid $7,000 to repair, remedy,
    and complete the work performed by Correct [Roofing].
    Gonzalez Construction estimates that the cost to fix the interior
    damage to the Home caused by Correct [Roofing] is estimated to
    be $9,800.
    (Id. at 80-81.) In addition, Vasquez designated an affidavit from Jose
    Gonzalez, the owner of Gonzalez Construction. Gonzalez stated in his
    affidavit:
    5. Mr. Vasquez hired Gonzalez Construction to remedy and
    repair the damage to his Home that was caused by improper
    construction and repairs of a prior roofing contractor.
    6. Gonzalez Construction was paid Seven Thousand Dollars
    ($7,000) to make those exterior repairs to the Home. A true and
    accurate copy of the original Quote for the work is attached as
    Exhibit A.
    7. Gonzalez Construction had to replace lower levels of shingles
    and OSB sub roofing around the perimeter of the house, replace
    wood around the exterior of the house, install gutters, and
    change the fascia.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024     Page 20 of 24
    8. I also observed water damage to the interior of the Home
    caused by the faulty repairs of the prior contractor.
    9. After inspecting the Home, I estimate that the cost to repair
    the interior damage caused by the work of the prior contractor is
    Nine Thousand Eight Hundred Dollars ($9,800). A true and
    accurate copy of the quote I provided Mr. Vasquez on behalf of
    Gonzalez Construction is attached as Exhibit B.
    (Id. at 92-93.)
    [21]   Vasquez reasonably expected to have Correct Roofing properly repair his roof
    for the full scope of his home insurance proceeds. However, after Correct
    Roofing performed work on Vasquez’s roof, the roof developed leaks that
    damaged the interior of his home. Correct Roofing refused to return Vasquez’s
    phone calls and remediate its faulty work. As a result, Vasquez had to hire a
    second company to perform the work he expected Correct Roofing to perform
    and repair the damage to the interior of his home that resulted from Correct
    Roofing’s faulty work. Thus, Vasquez’s designated evidence demonstrates that
    Correct Roofing’s failure to correctly repair Vasquez’s roof constituted a
    material breach. See, e.g., A House Mechs., Inc., 
    124 N.E.3d at 1263
     (holding
    contractor materially breached contract by failing to comply with building
    code). Correct Roofing bore the obligation of countering Vasquez’s motion
    with properly designated evidence demonstrating a genuine issue of material
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024    Page 21 of 24
    fact, but it did not do so. 3 See Sheehan Const. Co., Inc. v. Continental Cas. Co., 
    938 N.E.2d 685
    , 689 (Ind. 2010) (“Once the moving party has sustained its initial
    burden of proving the absence of a genuine issue of material fact and the
    appropriateness of judgment as a matter of law, the party opposing summary
    judgment must respond by designating specific facts establishing a genuine issue
    for trial.”). Because Vasquez established as undisputed material facts that he
    performed his obligations under the contract up to Correct Roofing’s material
    breach of the contract and he was harmed by Correct Roofing’s material
    breach, we affirm the trial court’s entry of summary judgment in Vasquez’s
    favor on each breach of contract claim. 4 We also affirm the trial court’s
    $16,800.00 damages award on Vasquez’s breach of contract claim because
    Correct Roofing did not designate any evidence to challenge Vasquez’s
    designated evidence regarding the cost of repairs. See, e.g., Five Star Roofing Sys.,
    Inc. v. Armored Guard Window & Door Grp., Inc., 
    191 N.E.3d 224
    , 238 (Ind. Ct.
    App. 2022) (holding roofing subcontractor materially breached contract and
    awarding damages to contractor in amount required to hire second
    subcontractor), reh’g denied.
    3
    Because we affirmed the trial court’s decision granting Vasquez’s motion to strike, Correct Roofing may not
    rely on the stricken statements to create a genuine issue of material fact.
    4
    In addition, Correct Roofing’s quantum meruit claim fails as a matter of law because quantum meruit is
    essentially “the remedy for breach of a constructive contract, implied in law.” Luse Thermal, 221 N.E.3d at
    718. “When the rights of parties are controlled by an express contract, recovery cannot be based on a theory
    implied in law.” Keystone Carbon Co. v. Black, 
    599 N.E.2d 213
    , 216 (Ind. Ct. App. 1992), trans. denied. Here,
    there was no constructive contract because the written contract between Vasquez and Correct Roofing
    expressly controlled Correct Roofing’s work on Vasquez’s house.
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024                            Page 22 of 24
    [22]   With respect to Vasquez’s HICA claim, Indiana Code section 24-5-11-
    10(a)(2)(B)(iii) requires that a real property improvement contract include an
    email address maintained by the company to communicate with customers.
    Indiana Code section 24-5-11-14 provides: “A real property improvement
    supplier who violates this chapter commits a deceptive act that is actionable by
    the attorney general or by a consumer . . . and is subject to the remedies and
    penalties under IC 24-5-0.5.” One of those remedies is an award of reasonable
    attorney fees. 
    Ind. Code § 24-5-0.5
    -4. Correct Roofing admitted that it was a
    real property improvement supplier, and its contract with Vasquez did not list
    an email address. That failure made it more difficult for Vasquez to contact
    Correct Roofing about the faulty repairs. Vasquez’s attorney submitted an
    affidavit attesting that his firm had charged Vasquez $6,240.00 in fees related to
    the prosecution of his case, and Correct Roofing did not designate any evidence
    challenging that amount. Therefore, Vasquez was also entitled to summary
    judgment on his claim under the Indiana Home Improvement Contract Act and
    an award of attorney fees in the unchallenged amount designated. See, e.g.,
    Mullis v. Brennan, 
    716 N.E.2d 58
    , 66-67 (Ind. Ct. App. 1999) (holding contractor
    did not comply with HICA and affirming award of attorney fees).
    Conclusion
    [23]   Correct Roofing waived its challenge on appeal to the trial court’s order
    granting Vasquez’s motion to strike by failing to provide a cogent argument as
    required by Indiana Appellate Rule 46. In addition, there is no dispute of
    material fact that Vasquez performed his obligations under the contract and
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024    Page 23 of 24
    Correct Roofing did not, that Vazquez’s damages were as the trial court
    determined, or that Correct Roofing violated HICA. Accordingly, we affirm
    the trial court’s judgment in favor of Vasquez.
    [24]   Affirmed.
    Vaidik, J., and Kenworthy, J., concur.
    ATTORNEY FOR APPELLANT
    Johnny W. Ulmer
    Ulmer Law Offices
    Elkhart, Indiana
    ATTORNEYS FOR APPELLEE
    Andrew M. Hicks
    Jamie R. Richardson
    Warrick & Boyn, LLP
    Elkhart, Indiana
    Court of Appeals of Indiana | Opinion 23A-CT-2535 | October 18, 2024   Page 24 of 24
    

Document Info

Docket Number: 23A-CT-02535

Filed Date: 10/18/2024

Precedential Status: Precedential

Modified Date: 10/18/2024