Opinion ID: 1301591
Heading Depth: 3
Heading Rank: 2

Heading: Did American Family Discharge Its Duty to Preserve the Fire Scene Evidence?

Text: ¶ 52 In order to discharge its duty to preserve the evidence from the fire scene, American Family was required to have a legitimate reason to destroy evidence, and provide: (1) reasonable notice of a possible claim; (2) the basis for that claim; (3) the existence of evidence relevant to the claim; and (4) reasonable opportunity to inspect that evidence. ¶ 53 The March 13, 2000, letter, which David and (as we concluded above) Joseph and Charles Golke received, informed the Golkes that a fire occurred at a specific home on a specific date, and that the Golke brothers' negligent work at that home was believed to be the cause of the fire. The letter instructed the Golkes to forward the letter to their insurers, and advised that American Family expected either the Golkes or their insurers, if applicable, to pay for the repairs to or replacement of the home. The letter concluded by offering the Golkes or their insurers an opportunity to conduct a proper investigation of the fire scene. It stated that destruction of the fire damaged building would be delayed until April 1, 2000, to allow for this inspection. ¶ 54 The April 6, 2000, letter to the Golkes stated that it was the second notice regarding the Golkes' liability for the fire damage at a specifically identified house. It also instructed the Golkes to quickly have their insurers contact American Family so that the Golkes would have coverage available to pay for the losses for which American Family was holding them liable. ¶ 55 American Family also had additional correspondence with David Golke, who responded to the March 13, 2000, letter. American Family sent David Golke and Indiana Insurance a letter on March 23, 2000, that, among other things, recommended an investigation of the fire scene because of the planned demolition on April 1, 2000. ¶ 56 Both the March 13 and April 6 letters provided reasonable notice of a possible claim and the basis for that claim. American Family expected the Golkes or their insurer to pay for the damages arising from their allegedly negligent work performed on a specific house, which allegedly caused a fire on a specific date at that house. The March 13, 2000, letter to both, and the March 23, 2000, letter to David Golke, explicitly noted the existence of relevant evidence, and provided ample time for the Golkes to inspect or schedule an inspection of the evidence before its destruction. The April 1, 2000, deadline was in fact extended by at least ten days before demolition and rebuilding commenced, and according to American Family, definitely would have been extended upon request. [18] ¶ 57 We note that American Family did not own the home in question here. The family that did own the home should not be expected to wait indefinitely for the Golkes to inspect the home, particularly when the Golkes made no efforts to inspect or test the fire scene when presented with the opportunity to do so. American Family was placed in a difficult spot because of the Golkes' unresponsiveness, and it had a legitimate reason to destroy the home [19] and acted reasonably under the circumstances. ¶ 58 Under the facts of this case, we conclude that American Family's March 13, 2000, letter, March 23, 2000, letter to David Golke and his insurer, and to a lesser degree the letter sent on April 6, 2000, provided sufficient notice and an opportunity to inspect the relevant evidence so as to discharge its duty to preserve the evidence. We therefore conclude that American Family's actions were reasonable, and therefore no sanctions for spoliation were appropriate as a matter of law. Thus, the circuit court erroneously exercised its discretion in sanctioning American Family for spoliation.