Court Opinion

ID: 9782461
Source: CourtListenerOpinion
Date Created: 2023-08-30 18:40:40.969964+00
Date Added: 2024-06-11T07:35:01.383344
License: Public Domain

BAKER, Judge,
concurring in part and dissenting in part.
I concur with the majority’s determination that the trial court erred in granting U.S. Water’s motion to dismiss, and in granting partial summary judgment in favor of Lowe’s on the issue of Lowe’s liability. However, I part ways with my colleagues’ decision to affirm the trial court’s grant of partial summary judgment in favor of Lowe’s on the issue of scope of liability. Specifically, the majority determines that the trial court properly limited Lowe’s potential financial liability to Gui-deone to the terms set forth in the Addendum to the Sales Contract, which provided that the “exclusive remedy” is reinstallation including repair and replacement. Appellee Lowe’s App. p. 15. Under the facts and circumstances of this case, I would reverse the trial court’s partial grant of summary judgment on the issue of scope of liability, thereby removing the limit on Lowe’s potential liability to Gui-deone.
By distributing a flyer guaranteeing all installation serviced by Lowe’s warranty, Lowe’s enticed Alexander and Schafstall into its store. Furthermore, U.S. Water acted as Lowe’s subcontractor-water system installer, thereby Lowe’s knew with whom it was dealing. Alexander and Schafstall did not. Put another way, Alexander and Schafstall did not hire U.S. Water to install the water system; Lowe’s did. Lowe’s should therefore be as potentially liable to Guideone as its subcontractor.
The majority concludes that the other property exception to the economic loss doctrine would permit tort recovery from U.S. Water for the flood damage to Schaf-stall and Alexander’s home because the damaged floors, walls, etc. were not merely a component of the water system. Rather, they were separate and distinct items that were acquired separately. See, e.g., Indpls.-Marion Cnty. Pub. Library v. Charlier Clark & Linard, P.C., 929 N.E.2d 722 (Ind.2010). I would apply this exception to Lowe’s as well.
Principles of equity also dictate this result. The elements of the equitable doctrine of promissory estoppel are as follows: 1) a promise by the promissor 2) made with the expectation that the promise will *1251rely thereon, 3) which induces reasonable reliance by the promise 4) of a definite and substantial nature, and 5) injustice can be avoided only by enforcement of the promise. The First National Bank of Logansport v. Logan Mfg. Co., Inc., 577 N.E.2d 949, 954 (Ind.1991). This doctrine is designed to aid the law in the administration of justice where, without its aid, injustice might result. Id.
Here, Lowe’s promised its customers, including Anderson and Schafstall, that it would guarantee the installation services provided by its U.S. Water, the subcontractor. Anderson and Schafstall relied on this promise when they chose to purchase them water system from Lowe’s rather than from one of Lowe’s competitors. Injustice in this case can be avoided only by enforcement of Lowe’s promise because Lowe’s customers should be able to rely on Lowe’s promises.
I would therefore reverse the trial court’s grant of summary judgment in favor of Lowe’s on the issue of scope of liability.