Light v. NIPSCO Industries, Inc.
Light v. NIPSCO Industries, Inc.
Opinion of the Court
OPINION
The Lights commenced this action against Northern Indiana Public Service Company (NIPSCO), asserting that NIP-SCO's failure to properly inspect the hook-lip of natural gas to Lights' residence was a proximate cause of injury to Mr. Light. In due course the trial court granted summary judgment to NIPSCO and this appeal followed.
The materials designated to the court by the parties presented evidence of the following facts.
Light was not present to observe when Hummel installed the appliances, nor was he present when the gas was turned on. When Light returned home he discovered that they had hot water so he presumed everything was all right. Light does not know who turned on the gas but assumed it was NIPSCO because, earlier, when the line was run on the property and the meter was installed, he was told that it was shut off and that "when the installation is complete, he'll have to call us to come out, and we'll turn on the gas, and we'll inspect it and turn on the gas." There is no evidence that Light called NIPSCO to send personnel to inspect Hummel's work or to turn on the gas, and there is no evidence that Hummel did so.
Nine years later, Mr. Light discovered through another contractor that his water heater was not properly vented. He contacted NIPSCO and discovered that this was permitting carbon monoxide to escape into the home. The gas was shut off until a new water heater with the correct flue was installed.
The Lights contend that their carbon monoxide exposure in the home caused health problems Mr. Light had been experiencing.
On appeal, the Lights acknowledge that NIPSCO owed them neither a general duty to inspect the hookup, nor a contract obligation to do so. They contend instead that NIPSCO voluntarily assumed the duty and is therefore liable for its breach. NIPSCO recognizes longstanding Indiana law enforcing voluntarily assumed duties, but argues that a duty may only be voluntarily assumed by a performance of the undertaking itself. Relying on contract law, it asserts that a mere promise to inspect is unenforceable in the absence of consideration to support it. See, Spickelmier Industries, Inc. v. Passander, 172 Ind.App. 49, 359 N.E.2d 568, 564-65 (1977).
From the evidence that the gas was turned on and the representation that NIPSCO would have to be called to accomplish this it is inferable that NIPSCO in fact turned on the gas to the appliances in the dwelling. This evidence, however, does not support the further inference that NIPSCO actually inspected or attempted to inspect the installation of the appliances. Accordingly, the issue presented in this appeal is whether the mere assurance or promise that NIPSCO would inspect the connections and "make them do it right" is sufficient in the absence of any evidence that NIPSCO in fact attempted any such inspection to impose a tort duty of reasonable care.
§ 324A provides:
One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as nee-essary for the protection of a third person or his things, is subject to liability to the third person for physical harm resulting from his failure to exercise reasonable care to protect his undertaking, if
(a) his failure to exercise reasonable care increases the risk of such harm, or
(b) he has undertaken to perform a duty owed by the other to the third person, or
(c) the harm is suffered because of reliance of the other or the third person upon the undertaking.
While the Restatement provides the caveat that it expresses no opinion whether a gratuitous promise, without in any way entering upon performance, is sufficient to impose liability, Indiana decisions state that a. promise is sufficient when coupled with reliance by the injured promisee. Thus, in Ember v. B.F.D. Inc., 490 N.E.2d 764, 770 (Ind.Ct.App. 1986), the court stated, "As [defendant] correctly argues, liability for nonfeasance, in connection with a gratuitous duty, is confined to situations when the beneficiaries detrimentally relied on performance, or when the actor in-ereased the risk of harm." (citations omitted.).
Citing Ember, in Johnson v. Owens, 639 N.E.2d 1016, 1019 (Ind.Ct.App. 1994) the court again stated that duty might arise when one assumes a duty to act "through affirmative conduct or agreement" and held that the total failure to act, nonfea-sance, would nevertheless be actionable where the beneficiary relied on performance or the defendant increased the risk of harm.
Both the existence and the extent of such a duty are ordinarily questions for the trier of fact. Ward, 725 N.E.2d at 186; Ember, 490 N.E.2d at 768.
It follows that the evidence designated to the trial court was not sufficient to determine as a matter of law that NIPSCO had not voluntarily assumed a duty to the Lights based upon its representations, or promises, and Lights' reliance thereon. Accordingly, since genuine issues have not been foreclosed as to any of the other elements of Lights' claim, summary judgment was inappropriate.
The judgment is reversed and the case is remanded for such further proceedings as may be necessary.
Reversed and remanded.
. For the purpose of examining summary judgment we consider the existence of this designated evidence. We express no opinion as to its proper weight or credibility. For purposes of this appeal, the parties have agreed these facts are undisputed.
. No issues are presented concerning Mr. Light's medical condition and its possible nexus with carbon monoxide exposure.
. We agree with the dissent's comments concerning § 323 of the Restatement.
. As the court explained "nonfeasance" equales with a failure to act despite a gratuitous promise to do so, while "misfeasance" equates with instances where the action was taken or attempted.
. Other cases using the statement that duly may arise through "affirmative conduct or agreement" are Van Duyn v. Cook-Teague Partnership, 694 N.E.2d 779 (Ind.Ct.App. 1998) and Board of Com'rs v. Hatton, 427 N.E.2d 696 (Ind.Ct.App. 1981).
Dissenting Opinion
dissenting
Without question, a promise should- and usually does-stand for something. However, our legal system has wisely placed limitations on the formal enforceability of gratuitous promises. Because I think those limitations should apply here, I must respectfully dissent.
The majority holds that NIPSCO's gratuitous promise may be actionable as a matter of tort law. Specifically, the majority relies on Restatement (Second) of Torts § 324A, which was adopted by this court in Harper v. Guarantee Auto Stores, 533 N.E.2d 1258, 1262 That section provides: (Ind.Ct.App. 1989).
One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of a third person or his things, is subject to liability to the third person for physical harm resulting from his failure to exercise reasonable care to protect his undertaking, if
(a) his failure to exercise reasonable care increases the risk of such harm, or
(b) he has undertaken to perform a duty owed by the other to the third person, or
(c) the harm is suffered because of reliance of the other or the third person upon the undertaking.
The "caveat" immediately following this section declines to express an opinion as to whether making "a gratuitous promise, without in any way entering upon performance, is a sufficient undertaking to result in liability under the rule stated in this Section." Nevertheless, and in the absence of any evidence that NIPSCO actually inspected the work at issue, the majority adopts such a rule: "a promise is sufficient when coupled with reliance by the injured promisee." 747 N.E.2d at 75.
As a preliminary matter, I believe that NIPSCO's conduct in question falls under Restatements (Second) of Torts § 323, rather than § 324A. NIPSCO's alleged promise to inspect was made directly to Mr. Light, not to a third party. However, as the comment to § 324A points out, the same logic and policy considerations are shared by the two sections. It is with this logic and policy that I take issue.
Our lives are filled with many relationships that never do and never should take
Similarly, we often undertake tasks on behalf of others with the explicit or implicit understanding that the beneficiary can make no claim beyond disappointment when things do not turn out as originally promised or represented. When a relative or friend volunteers to "look at" a malfune-tioning motor vehicle or a home one is planning to purchase, I do not believe the common law should impose liability when such inspection either never takes place or turns out to be deficient. The majority's position and the position of §§ 823 and 324A is that liability might well attach. The important limiting concept is one of whether reliance was reasonable, a concept not fully developed by the majority or by the Restatement discussions.
As a matter of contract law, it is well settled that "[nljot every promise creates a legal obligation which the law will enforce. A promise must be predicated upon adequate consideration before it can command performance." Spickelmier Industries, Inc. v. Passander, 172 Ind.App. 49, 359 N.E.2d 563, 564 (1977). Under the facts and cireumstances before us, I believe that the payments NIPSCO would eventually receive from the Lights for the natural gas to fuel the appliances installed by the third-party contractor could serve as adequate consideration to enforce NIPSCO's promise to inspect under traditional contract theory.
Instead, the majority has embarked down a tort path that will likely have far-reaching and undesirable consequences. For this reason, I must respectfully dissent.
Reference
- Full Case Name
- Allen L. LIGHT and Mary Susanna Light, Appellants-Plaintiffs, v. NIPSCO INDUSTRIES, INC., D/B/A Northern Indiana Public Service Company, Appellee-Defendant
- Cited By
- 7 cases
- Status
- Published