Title: Stapinski v. Walsh Const. Co., Inc.

State: indiana

Issuer: Indiana Supreme Court

Document:

395 N.E.2d 1251 (1979)
Michael L. STAPINSKI, Appellant (Plaintiff below),
v.
WALSH CONSTRUCTION CO., Inc., Appellee (Defendant below).
No. 1079S285.

Supreme Court of Indiana.
October 16, 1979.
Saul I. Ruman, Hammond, for appellant.
Richard R. McDowell, Cadick, Burns, Duck & Peterson, Indianapolis, for appellee.
HUNTER, Justice.
This case is before this Court on the petition to transfer of defendant-appellee, Walsh Construction Co., Inc. Appellee Walsh prevailed at trial when the trial court granted Walsh's motion for summary judgment. Plaintiff-appellant, Michael L. Stapinski, appealed the trial court's order to the Court of Appeals, Third District, and that Court reversed. Stapinski v. Walsh Construction Co., Inc., (1978) Ind. App., 383 N.E.2d 473. We grant transfer and vacate the opinion of the Court of Appeals.
The issue before us is whether the trial court erred in granting Walsh's motion for summary judgment.
The following are the facts giving rise to this dispute as gleaned from Judge Staton's majority opinion and Judge Hoffman's dissenting opinion:
In granting summary judgment the trial court issued the following order:
*1253 We hold that the Court of Appeals erroneously decided a new question of law when it held that a non-dealer seller and former owner-operator of a used motor vehicle can be liable for personal injury to a bystander under the facts of this case. Furthermore, the Court of Appeals erroneously applied the Restatement (Second) of Torts § 388 (1965) to the facts in the case at bar.
Summary judgment shall be rendered:
Both Judge Staton and Judge Hoffman correctly state the applicable procedure in determining whether a genuine issue of fact exists. That is, the facts as set forth by the party opposing the motion must be taken as true and all doubts are to be resolved against the party seeking summary judgment. Stapinski v. Walsh Construction Co., Inc., supra; Hayes v. Second National Bank of Richmond, (1978) Ind. App., 375 N.E.2d 647; Union State Bank v. Williams, (1976) Ind. App., 348 N.E.2d 683. We are cognizant of the fact that issues of negligence are not ordinarily susceptible of summary adjudication. Verplank v. Commercial Bank of Crown Point, (1969) 145 Ind. App. 324, 251 N.E.2d 52. However, the disposition of this case involves only a question of law: whether Walsh Construction Co., Inc. owed a duty to Michael Stapinski under the undisputed facts of this case.
We find persuasive here the reasoning of the Ohio Supreme Court in Thrash v. U-Drive-It Co., (1953) 158 Ohio St. 465, 110 N.E.2d 419. That case was relied upon by the United States Court of Appeals, Seventh Circuit, in interpreting Indiana law in Ikerd v. Lapworth, (7th Cir.1970) 435 F.2d 197. In the Thrash case a truck rental agency, U-Drive-It, sold a vehicle, which it had used in its business for a number of years, to the Spot Motor Company. The truck was sold to the plaintiff's father. An accident occurred in which the plaintiff was injured. The accident was caused by the presence of an ill-fitting lock ring on one wheel. Plaintiff sued U-Drive-It, charging that the rental agency was negligent in equipping the truck with the wrong lock ring. Judgment on the pleadings was granted in U-Drive-It's favor and the Ohio Supreme Court affirmed.
The Ohio Court held that the plaintiff had to show the existence of a duty in order to establish actionable negligence. The defendant successfully invoked the rule that:
The Court specifically held that:
We do not have a dealer in used cars as an intervening agency in the case at bar. Nevertheless, we adopt the above law as applicable to the facts in this case. An agent for Security Fence inquired as to whether Walsh Construction had any trucks for sale. Security was allowed to inspect all of Walsh's available trucks. Walsh had no representative present at these inspections and expressly disclaimed any warranty of condition, completing the sale "as is." Furthermore, Walsh had never used the truck on public highways and Security was aware of this fact. Security maintained the vehicle for fifteen months prior to the injury to Michael L. Stapinski.
*1254 We neither accept nor reject, as a general proposition, the adoption, as the law of Indiana, of the Restatement (Second) of Torts § 388 (1965) by the Court of Appeals. Stapinski v. Walsh Construction Co., Inc., (1978) Ind. App., 383 N.E.2d 473, 476. We simply hold that where a nondealer owner sells a motor vehicle to another "as is," the former owner cannot be held liable for personal injury to a bystander.
To hold otherwise would unduly burden Walsh Construction and those similarly situated. Judge Hoffman points out that Walsh was in no position to insure against injury as occurred in this case.
Plaintiff Stapinski argues that two statutes imposed a duty on Walsh in this case. We do not agree. Ind. Code § 9-4-1-126 (Burns 1973) prohibits the operation of an unsafe motor vehicle by those who "drive or move" on a public highway. The undisputed facts show that Walsh did not operate the vehicle on the road. Ind. Code § 9-8-6-2(a) (Burns 1973) provides that it is a misdemeanor for the owner of a motor vehicle to "drive or move" or to "cause or knowingly permit to be driven or moved on any highway" an unsafe vehicle. Ind. Code § 9-4-1-11(d) (Burns 1973) defines "owner" as "[a] person who holds the legal title of a vehicle... ." Walsh Construction Co., Inc. did not hold legal title to the vehicle at the time the accident occurred.
For the foregoing reasons the judgment of the Court of Appeals is vacated and the judgment of the trial court is affirmed.
GIVAN, C.J., and DeBRULER, PRENTICE and PIVARNIK, JJ., concur.