ILNews

Court reduces $1.4M judgment in dispute over work done at Honda plant

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals has found that Greensburg-based Custom Conveyor Inc. is only entitled to recover about a tenth of the original $1.4 million awarded to it on breach of contract and warranty claims the company made against a subcontractor regarding work on the Indiana Honda plant.

Honda hired CCI, which specializes in installing conveyor systems in factories, to install the necessary systems in the plant it was building in Greensburg. CCI subcontracted computer programming and electrical control box work to L.H. Controls Inc. There were issues with L.H. completing work on time. The delays resulted in pushing the conveyor installation back three months, but that did not affect the opening of the factory.

L.H. sought payment for unpaid invoices from CCI, which it did not pay, so L.H. filed a mechanic’s lien against the Honda plant as well as a personal liability notice against Honda. CCI eventually paid a portion of the invoices, withholding more than $80,000 in chargebacks. L.H. sued Honda and CCI in 2009 for breach of contract and to enforce the personal liability notice against Honda and foreclose the mechanic’s lien. Honda was eventually dismissed and CCI counterclaimed for breach of contract and warranty and indemnification.

The trial court found L.H. breached its contract with CCI in 12 ways, had a contractual obligation to indemnify CCI, and breached warranties. It ultimately awarded CCI damages against L.H. in the amount of $1,409,896.97, which later went up to $1,467,587.61 after factoring in attorney fees and costs.

In L.H. Controls, Inc. v. Custom Conveyor, Inc., 16A05-1111-PL-606, the Court of Appeals reversed the lost profit damages of $1,144,470 awarded to CCI, the $133,328.53 in attorney fees, and the award of damages of $82,184.10 for CCI’s chargebacks, as well as $5,259.38 in set-off for L.H. the court allowed against the chargebacks amount.

Judge Michael Barnes wrote the appellate court could not discern any conceivable basis upon which to affirm the award of lost profit damages against L.H. in any amount. CCI is entitled to seek to make a profit on projects it completes, but there is nothing in the trial court’s findings or the record that would support shifting that expectation onto the back of L.H., he continued.

There is no plain language in the master construction agreement’s indemnity provision that clearly and unambiguously states L.H. would be required to indemnify CCI for all costs associated with any cause of action asserted even by parties to the agreement in a breach of contract action between the parties, the judges held. L.H. would not be required to pay CCI’s attorney fees.

The trial court also erred in including the $82,000 in chargebacks.

The judges did affirm $8,005.86 in costs related to CCI’s removal of the mechanic’s lien against Honda’s property. That amount combined with the damages L.H. did not challenge on appeal – which totaled $104,858.60 – means CCI is only entitled to $112,864.46.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  2. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  3. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  4. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  5. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

ADVERTISEMENT