Penske Truck Leasing Co., LP v. Debra Dalton-McGrath and John McGrath (mem. dec.) ( 2020 )


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  • MEMORANDUM DECISION
    Pursuant to Ind. Appellate Rule 65(D),
    this Memorandum Decision shall not be
    regarded as precedent or cited before any
    court except for the purpose of establishing
    the defense of res judicata, collateral                                                FILED
    estoppel, or the law of the case.                                                  Sep 10 2020, 8:51 am
    CLERK
    Indiana Supreme Court
    Court of Appeals
    and Tax Court
    ATTORNEYS FOR APPELLANT                                  ATTORNEYS FOR APPELLEES
    Bryce H. Bennett                                         Andrew A. Crosmer
    Justin O. Sorrell                                        Daniel J. Zlatic
    Drake T. Land                                            Rubino, Ruman, Crosmer &
    Riley Bennett Egloff LLP                                 Polen, LLC
    Indianapolis, Indiana                                    Dyer, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    Penske Truck Leasing Co., L.P.,                          September 10, 2020
    Appellant-Defendant,                                     Court of Appeals Case No.
    20A-CT-94
    v.                                               Interlocutory Appeal from the
    Lake Superior Court
    Debra Dalton-McGrath and                                 The Honorable Kristina C. Kantar,
    John McGrath,                                            Judge
    Appellees-Plaintiffs.                                    Trial Court Cause No.
    45D04-1801-CT-18
    Bradford, Chief Judge.
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020           Page 1 of 18
    Case Summary
    [1]   On November 4, 2017, Debra McGrath was bitten by a dog when she visited
    Julie’s Auto Sales (“JAS”) for the purpose of renting a moving truck. The truck
    in question was owned by Penske Truck Leasing Co., L.P (“Penske”), and
    rented through JAS. Debra and her husband John (collectively, “the
    McGraths”) subsequently filed suit against Julie Dirindin, JAS, and Penske,
    alleging negligence. With respect to Penske, the McGraths argued both direct
    and vicarious liability. Penske moved for summary judgment. This
    interlocutory appeal follows the denial of Penske’s motion. Penske contends
    that the trial court erred in denying its motion for summary judgment, arguing
    that no issues of material fact remain that would preclude summary judgment
    on either the direct- or vicarious-liability claims. We affirm in part, reverse in
    part, and remand for further proceedings.
    Facts and Procedural History
    [2]   At all times relevant to this interlocutory appeal, Dirindin owned and operated
    JAS. JAS offered vehicle rentals, including moving trucks owned by Penske.
    In answers to interrogatories designated in support of Penske’s motion for
    summary judgment, Dirindin described the events surrounding the dog bite as
    follows:
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 2 of 18
    I left my home before 8:00 a.m. with Cam[1] and went to the office.
    I took care of small tasks, while I waited for Debra McGrath to
    arrive for her 9:00 a.m. reservation. Debra McGrath called a little
    after 9:00 a.m. to say that she was delayed. I advised her that I
    would be closing the office at 10:00 a.m. Shortly after 10:00 a.m., I
    locked the door, put up the closed sign, took Cam for a walk and
    loaded up my car. I brought Cam back into the office and locked
    and closed the door behind me. At approximately 10:20 a.m. Debra
    McGrath pulled the door open, which was locked but apparently it
    was not fully shut. It startled me and as Debra McGrath held the
    door open and stood in the doorway Cam ran and bit her in her leg.
    Appellant’s App. Vol. II p. 67.
    [3]   In early 2018, the McGraths filed suit against Dirindin and JAS. On November
    7, 2018, the McGraths filed an amended complaint in which they argued that
    Penske was directly negligent and vicariously liable for Dirindin’s negligence.
    Penske moved for summary judgment. The trial court denied Penske’s motion
    for summary judgment on November 25, 2019.
    Discussion and Decision
    [4]   Penske contends that the trial court erroneously denied its motion for summary
    judgment.
    When reviewing a grant or denial of a motion for summary
    judgment our well-settled standard of review is the same as it is
    for the trial court: whether there is a genuine issue of material
    fact, and whether the moving party is entitled to judgment as a
    matter of law. The party moving for summary judgment has the
    1
    On November 4, 2017, Dirindin was caring for Cam, a pit-bull mix owned by her daughter who was
    attending college at St. Mary’s College in South Bend.
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020           Page 3 of 18
    burden of making a prima facie showing that there is no genuine
    issue of material fact and that the moving party is entitled to
    judgment as a matter of law. Once these two requirements are
    met by the moving party, the burden then shifts to the non-
    moving party to show the existence of a genuine issue by setting
    forth specifically designated facts. Any doubt as to any facts or
    inferences to be drawn therefrom must be resolved in favor of the
    non-moving party. Summary judgment should be granted only if
    the evidence sanctioned by Indiana Trial Rule 56(C) shows there
    is no genuine issue of material fact and that the moving party
    deserves judgment as a matter of law.
    Goodwin v. Yeakle’s Sports Bar & Grill, Inc., 
    62 N.E.3d 384
    , 386 (Ind. 2016)
    (internal citations omitted).
    I. Direct Liability
    [5]   Penske contends that the trial court erred in denying its motion for summary
    judgment on the McGraths’ direct-liability claim. In claiming that Penske was
    directly liable for Debra’s injuries, the McGraths alleged that Penske “was
    negligent in permitting its agent to keep an unleashed or unrestrained dog on
    the business premises where Penske customers were exposed to this
    unnecessary risk of harm.” Appellant’s App. Vol. II p. 42. The McGraths
    further allege that they “were injured and suffered damages” as a result of
    Penske’s negligence. Appellant’s App. Vol. II p. 42.
    [6]   “To prevail on a claim of negligence the plaintiff must show: (1) duty owed to
    plaintiff by defendant; (2) breach of duty by allowing conduct to fall below the
    applicable standard of care; and (3) compensable injury proximately caused by
    defendant’s breach of duty.” 
    Goodwin, 62 N.E.3d at 386
    (internal quotation and
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 4 of 18
    brackets omitted). “Absent a duty there can be no negligence or liability based
    upon the breach.”
    Id. “Whether a duty
    exists is a question of law for the court
    to decide.” ONB Ins. Grp., Inc. v. Estate of Megel, 
    107 N.E.3d 484
    , 489 (Ind. Ct.
    App. 2018), trans. denied. We therefore review de novo whether Penske owed a
    duty to the McGraths. See
    id. Further, “[n]egligence will
    not be inferred;
    rather, all of the elements of a negligence action must be supported by specific
    facts designated to the trial court or reasonable inferences that might be drawn
    from those facts.” Kincade v. MAC Corp., 
    773 N.E.2d 909
    , 911 (Ind. Ct. App.
    2002). “An inference is not reasonable when it rests on no more than
    speculation or conjecture.”
    Id. A. Premises Liability
    [7]   It is undisputed that Penske could not be directly liable to the McGraths as the
    dog’s keeper or owner. The designated evidence clearly establishes that
    Dirindin was the dog’s keeper and her daughter was the dog’s owner. The
    McGraths instead rely on the theory of premises liability, asserting that a
    question of material fact remains as to whether Penske had sufficient control
    over the JAS premises to create a duty for Penske to act to prevent foreseeable
    harm. In order to prevail on their claim against Penske, the McGraths were
    required to prove that Penske “retained control over the property” and “had
    actual knowledge of” the dog’s dangerous propensities. See Baker v. Weather ex
    rel. Weather, 
    714 N.E.2d 740
    , 741 (Ind. Ct. App. 1999) (providing that in order
    for plaintiffs to prevail against landlords under a theory of premises liability on
    a claim of negligence relating to a dog bite by a dog neither owned or cared for
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 5 of 18
    by the landlords, the plaintiffs were required to show that the landlords retained
    control over the property and had actual knowledge that the dog had dangerous
    propensities).
    [8]   “When a case involves a non-owner, liability turns upon the degree of control
    such person or entity exercises over the premises.” Johnson v. Steffen, 
    685 N.E.2d 1117
    , 1119 (Ind. Ct. App. 1997). “The reasons the law imposes liability
    on the person who controls the property is self-evident: only the party who
    controls the land can remedy the hazardous conditions which exist upon it and
    only the party who controls the land has the right to prevent others from
    coming onto it.” City of Bloomington v. Kuruzovich, 
    517 N.E.2d 408
    , 411 (Ind.
    Ct. App. 1987). “Thus, the party in control of the land has the exclusive ability
    to prevent injury from occurring.”
    Id. The dispositive question
    is therefore
    whether Penske exercised sufficient control over the JAS premises so as to be
    deemed the possessor. See Crist v. K-Mart Corp., 
    653 N.E.2d 140
    , 145 (Ind. Ct.
    App. 1995). If Penske had control over the premises, then it owed a duty to its
    invitees to exercise reasonable care for their protection while on the premises.
    See
    id. However, if Penske
    had no control over the premises, it owed no duty to
    the McGraths. See id.; see also Cox v. Stoughton Trailers, Inc., 
    837 N.E.2d 1075
    ,
    1082 (Ind. Ct. App. 2005) (“[P]remises liability cases generally have required an
    owner of property to have some degree of actual control over the property—not
    merely constructive ability to control—in order for a duty to prevent injury to
    attach to the owner.”).
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 6 of 18
    [9]   The designated evidence shows that JAS and Penske entered into an agreement
    (“the Agency Agreement”) on December 12, 2012, which granted JAS the non-
    exclusive right to rent Penske-owned trucks to the public. With regard to JAS’s
    premises, the Agency Agreement provided, in relevant part, as follows:
    III. Agent Premises
    A.     Hours of Operation. Agent agrees to conduct its rental
    business, as contemplated by this Agreement, for a minimum of
    six days a week during normal business hours plus additional
    hours (1) as required by business demands; (2) in accordance
    with the provisions of the Agreement or the Rental Agreement;
    and/or (3) as otherwise required by Penske.
    B.     Appearance and Upkeep. Agent shall, at its own cost and
    expense, maintain the Premises in a clean and presentable
    manner and in such a way as to contribute to the goodwill of the
    Penske name. Agent will make all improvements or
    modifications as reasonably required by Penske to maintain a
    suitable appearance at the Premises.
    C.      Penske Access to Premises and Equipment; Re-
    distribution of Equipment. Agent shall make its Premises
    available for Penske representatives, with or without notice, to
    audit, inspect, or repair Equipment, signs and supplies and other
    Penske-owned or supplied property or any records related
    thereto. In addition, Agent agrees that Penske may come onto
    the Premises at any time to remove Equipment. Agent shall
    strictly comply with all of Penske’s instructions regarding re-
    distribution of Equipment as described in Section II, Paragraph
    D.
    D.   Safeguarding of Equipment. Agent shall ensure that all
    Equipment is legally parked. Agent shall protect all Penske
    Equipment, supplies, and property at the Premises. Agent shall
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 7 of 18
    not be responsible for any lost or stolen Equipment, Penske-
    provided supplies or property, or any vandalism thereto if Agent
    took all reasonable measures to secure and protect the
    Equipment and Penske-provided supplies and property. Penske
    reserves the right to cancel this Agreement in the event of any
    persistent problems with vandalism or damage to Equipment,
    regardless of fault and regardless of preventative measures taken
    by Agent.
    Appellant’s App. Vol. II p. 63. Thus, pursuant to the terms of the Agency
    Agreement, JAS was required to allow Penske access to the premises, with or
    without notice, “to audit, inspect, or repair Equipment, signs and supplies and
    other Penske-owned or supplied property or any records related thereto” and
    “at any time to remove” Penske-owned equipment. Appellant’s App. Vol. II p.
    88. In addition, the Agency Agreement required JAS to maintain the premises
    in “a clean and presentable manner” and to take “all reasonable measures to
    secure and protect the Equipment and Penske-provided supplies and property.”
    Appellant’s App. Vol. II p. 88.
    [10]   Dirindin testified that a Penske representative visited JAS “approximately two,
    three times a year” to review “what business has been done and what the
    numbers are.” Appellant’s App. Vol. II p. 49. During one of these visits, which
    would last approximately twenty minutes, the Penske representative would
    “compare your business from last year to this year” and “update you on any …
    new things that they are doing[.]” Appellant’s App. Vol. II p. 51. In addition,
    Mary Ann Angelo, a litigation claims examiner for Penske, averred that
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 8 of 18
    9.     Penske issued no command or instruction to Dirindin,
    actual or implied, regarding keeping animals at [JAS].
    10. Penske had never seen an unrestrained dog at [JAS] at any
    time.
    11. Penske had no knowledge that Dirindin kept her
    daughter’s dog on the premises at [JAS] on or before November
    4, 2017.
    12. Penske had no knowledge of the existence, breed
    propensities, history, or methods of confinement of the dog that
    was at [JAS] on November 4, 2017.
    Appellant’s App. Vol. II p. 85.
    [11]   Penske argues that the designated evidence shows that there is no issue of
    material fact as to whether Penske had control over JAS’s premises. Penske
    acknowledges that while it had a right to enter the premises for the purposes set
    forth above, its right was limited to Penske-owned and supplied property and
    did not grant it control over the JAS premises in general or over any other part
    of JAS’s business. Further, while Penske did not have a policy relating to
    having animals on the premises, nothing in the designated evidence indicates or
    even suggests that Penske had the authority or ability to prevent Dirindin from
    keeping dogs and other animals on the premises.
    [12]   The McGraths argue that Penske’s limited right to enter the premises and exert
    control over Penske-owned and supplied property creates a question of fact as
    to whether Penske exerted the necessary level of control to create a duty. We
    cannot agree. While the designated evidence establishes that Penske had a
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 9 of 18
    limited right to enter the premises and control over Penske-owned and supplied
    property, nothing in the designated evidence indicates that Penske had control
    over the premises itself or any non-Penske-owned or supplied property.
    B. Goodwin Test for Determining Duty
    [13]   Penske further argues that there is no material issue of fact relating to whether it
    otherwise owed a duty to the McGraths under Indiana law. In Goodwin, the
    Indiana Supreme Court established a three-part balancing test for determining
    whether a duty exists when one has not otherwise been established by 
    law. 62 N.E.3d at 387
    ; see also 
    ONB, 107 N.E.3d at 489
    . Under this test, we consider:
    (1) the relationship between the parties, (2) the reasonable foreseeability of
    harm, and (3) public policy concerns. 
    Goodwin, 62 N.E.3d at 387
    ; see also 
    ONB, 107 N.E.3d at 489
    .
    1. Relationship Between Parties
    [14]   Generally, a duty of reasonable care is not owed to the world at large, but
    instead arises out of a relationship between the parties. See Williams v. Cingular
    Wireless, 
    809 N.E.2d 473
    , 476 (Ind. Ct. App. 2004), trans. denied. In this case, to
    the extent that a relationship existed between Penske and the McGraths, the
    relationship was indirect and limited. The undisputed designated evidence
    demonstrates that Debra contacted JAS to rent a moving truck. Debra visited
    JAS on November 4, 2017, for the purpose of renting the truck. The Agency
    Agreement clearly stated that neither Dirindin nor any other JAS employee
    could be construed as employees of Penske. The McGraths were not parties to
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 10 of 18
    the Agency Agreement which created “the limited, non-exclusive agency
    relationship between” JAS and Penske. Appellant’s App. Vol. II p. 87.
    Further, there is no designated evidence indicating that either of the McGraths
    ever interacted with a Penske employee. While Debra unquestionably had a
    relationship with JAS, the designated evidence does not indicate that she had
    any relationship with Penske.
    2. Foreseeability
    [15]   The Indiana Supreme Court has recognized that in some negligence cases,
    foreseeability is not just a question of proximate cause, but also a question of
    duty. See 
    Goodwin, 62 N.E.3d at 389
    ; Rogers v. Martin, 
    63 N.E.3d 316
    , 325 (Ind.
    2016).
    But foreseeability in this context—as a component of duty—is
    evaluated differently than foreseeability in proximate cause
    determinations: while the latter foreseeability analysis requires a
    factfinder to evaluate the specific facts from the case, the former
    involves a lesser inquiry, requiring a court, as a threshold legal
    matter, to evaluate the broad type of plaintiff and harm involved,
    without regard to the facts of the actual occurrence. By focusing
    on the general class of persons of which the plaintiff was a
    member and whether the harm suffered was of a kind normally
    to be expected, courts must assess whether there is some
    probability or likelihood of harm that is serious enough to induce
    a reasonable person to take precautions to avoid it, not merely
    that harm is sufficiently likely[.] Because almost any outcome is
    possible and can be foreseen, this ensures that landowners do not
    become the insurers of their invitees’ safety[.]
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 11 of 18
    Cavanaugh’s Sports Bar & Eatery, Ltd. v. Porterfield, 
    140 N.E.3d 837
    , 840 (Ind.
    2020) (brackets added; other brackets, quotations, and citations omitted).
    “[T]he mere fact that a particular outcome is ‘sufficiently likely’ is not enough
    to give rise to a duty.” 
    Goodwin, 62 N.E.3d at 392
    . “Instead, for purposes of
    determining whether an act is foreseeable in the context of duty we assess
    whether there is some probability or likelihood of harm that is serious enough
    to induce a reasonable person to take precautions to avoid it.”
    Id. [16]
              At common law all dogs, regardless of breed or size, are
    presumed to be harmless, domestic animals. Absent a statute to
    the contrary the common law presumption must prevail. To
    overcome the presumption that a domestic, as opposed to a wild,
    animal is harmless, one must point to a known vicious or
    dangerous propensity of the animal in question. A dangerous or
    vicious propensity has been defined in Indiana as a propensity or
    tendency of an animal to do any act which might endanger the
    safety of person or property in a given situation. It is the act of
    the animal and not in the state of mind of the animal from which
    the effects of a dangerous propensity must be determined. It is
    not, therefore, reasonable to attribute vicious propensities to a
    dog merely because he barks at strangers, because a person is
    afraid of the dog, or because a city ordinance requires a dog to be
    restrained at all times.
    Royer v. Pryor, 
    427 N.E.2d 1112
    , 1117 (Ind. Ct. App. 1981) (internal citations
    and quotation omitted). Likewise, it is not reasonable to attribute vicious
    propensities to a dog merely because of a “Beware of Dog” sign. See generally
    Smedley v. Ellinwood, 
    21 A.D.3d 676
    , 677, 
    799 N.Y.S.2d 682
    , 683 (N.Y. App.
    Div. 2005) (“[T]he presence of a ‘Beware of Dog’ sign, standing alone, is
    insufficient to impute notice of a dog’s viciousness.”); Wright v. Morris, 239
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 12 of 
    18 S.E.2d 225
    , 226 (Ga. Ct. App. 1977) (providing that presence of a sign stating
    “Beware of Dog” on a fence surrounding appellee’s home is not, alone,
    sufficient to raise a jury question regarding liability as it “does not in and of
    itself establish or tend to establish knowledge of the propensities of the resident
    animal”).
    [17]   The designated evidence indicates that Dirindin put up the “Beware of Dog”
    sign in 2012, before her daughter had rescued Cam. Dirindin described Cam as
    a “home dog” that Dirindin occasionally took places but otherwise “stay[ed] at
    home.” Appellant’s App. Vol. II p. 54. Prior to November 4, 2017, Cam had
    been to JAS “on occasion … some months zero, other months, you know, once
    or twice.” Appellant’s App. Vol. II p. 55. The designated evidence further
    indicated that no Penske representative had ever observed an unrestrained dog
    at JAS and Penske had “no knowledge of the existence, breed propensities,
    history, or methods of confinement of the dog that was at [JAS] on November
    4, 2017.” Appellant’s App. Vol. II p. 85. Nothing in the designated evidence
    suggests that Penske had any knowledge that Dirindin had a dog on JAS’s
    premises on November 4, 2017, let alone a dog with dangerous propensities.
    [18]   Furthermore, to the extent that the trial court pointed to a prior police
    complaint regarding a dog bite on JAS’s premises,2 the Indiana Supreme Court
    2
    While the record is unclear about the dog involved in this alleged prior complaint, it does not appear to
    have involved Cam as the designated evidence indicates that Cam had never demonstrated aggressive
    propensities or vicious tendencies prior to November 4, 2017.
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020                 Page 13 of 18
    recently made it clear that this type of historical evidence is inappropriate to
    consider when evaluating foreseeability as a component of duty. See
    Cavanaugh’s Sports 
    Bar, 140 N.E.3d at 844
    (“[H]istorical evidence, while
    ‘appropriate in evaluating foreseeability in the context of proximate cause,’
    should play no role when we evaluate ‘foreseeability as a component of duty.’
    
    Goodwin, 62 N.E.3d at 393
    .”). Given that the presence of the “Beware of Dog”
    sign was, without more, insufficient to impute notice to Penske of Cam’s
    allegedly aggressive propensities or viciousness, we conclude that Debra’s
    injury was not foreseeable to Penske as there was nothing in the record that
    would have alerted Penske that there was some probability or likelihood of
    harm that was serious enough to induce a reasonable person to take precautions
    to avoid it. See 
    Goodwin, 62 N.E.3d at 392
    . Stated differently, this broad type
    of defendant, i.e., a rental equipment owner whose equipment is rented through
    independently owned and operated businesses, would have no reason to foresee
    that its conduct, i.e., providing equipment for the independently owned and
    operated business to rent to its customers, would result in the broad type of
    harm, i.e., a dog bite, to this broad type of plaintiff.
    3. Public Policy
    [19]   “The final factor in the Goodwin test is the public policy consideration of who is,
    or should be, in the best position to prevent injury and how society should
    allocate the costs of such injury.” 
    ONB, 107 N.E.3d at 494
    (internal quotation
    omitted). In this case, the entities best suited to prevent Debra’s injury were
    Dirindin and JAS. As Penske had no control over the dog in question or
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 14 of 18
    knowledge that it was on the JAS premises on November 4, 2017, this factor
    weighs against finding Penske had a duty to the McGraths. See
    id. (providing that this
    factor weighs against finding ONI had a duty to the accident parties
    because ONI had no control over the actual means by which the accident
    occurred and the entities best suited to prevent injury to a motorist were the
    individual who drove the truck that caused the accident and the owner of the
    truck).
    [20]   We conclude that all three of the Goodwin factors weigh in favor of the
    conclusion that, as a matter of law, Penske did not owe a duty to the McGraths.
    Again, “[a]bsent a duty there can be no negligence or liability based upon the
    breach.” 
    Goodwin, 62 N.E.3d at 386
    . As such, we conclude the trial court erred
    when it denied Penske’s motion for summary judgment on the McGrath’s
    direct-negligence claim.
    II. Vicarious Liability
    [21]   Penske also contends that the trial court erred by denying its motion for
    summary judgment on the McGraths’ vicarious-liability claim. “Vicarious
    liability is indirect legal responsibility.” Sword v. NKC Hosps., Inc., 
    714 N.E.2d 142
    , 147 (Ind. 1999) (internal quotation omitted). “It is a legal fiction by which
    a court can hold a party legally responsible for the negligence of another, not
    because the party did anything wrong but rather because of the party’s
    relationship to the wrongdoer.”
    Id. “Courts employ various
    legal doctrines to
    hold people vicariously liable, including respondeat superior, apparent or
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 15 of 18
    ostensible agency, agency by estoppel, and the non-delegable duty doctrine.”
    Columbus Reg’l Hosp. v. Amburgey, 
    976 N.E.2d 709
    , 714 (Ind. Ct. App. 2012).
    [22]   “Agency is the fiduciary relationship that arises when one person (a ‘principal’)
    manifests assent to another person (an ‘agent’) that the agent shall act on the
    principal’s behalf and subject to the principal’s control, and the agent manifests
    assent or otherwise consents so to act.” Yost v. Wabash Coll., 
    3 N.E.3d 509
    ,
    518–19 (Ind. 2014).
    A principal is liable for the acts of his agent that were committed
    within the scope of the agent’s actual or apparent authority.
    Apparent authority refers to a third party’s reasonable belief that
    the principal has authorized the acts of its agent; it arises from
    the principal’s manifestations to a third party and not from the
    representations or acts of the agent. The manifestations can
    originate from direct or indirect communication, or from
    advertisements to the community.
    Helms v. Rudicel, 
    986 N.E.2d 302
    , 309 (Ind. Ct. App. 2013). “Actual authority
    is created by written or spoken words or other conduct of the principal which,
    reasonably interpreted, causes the agent to believe that the principal desires him
    so to act on the principal’s account.” Fid. Nat. Title Ins. Co. v. Mussman, 
    930 N.E.2d 1160
    , 1165 (Ind. Ct. App. 2010). “The focus of actual authority is the
    belief of the agent.”
    Id. “Actual authority may
    be express or implied and may
    be created by acquiescence.”
    Id. [23]
      It is undisputed that JAS and Penske shared an agent-principal relationship on
    November 4, 2017. In arguing that the trial court erred by denying its motion
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 16 of 18
    for summary judgment, Penske asserts that it was entitled to judgment as a
    matter of law because no issue of material fact remained as to whether
    Dirindin’s negligence was committed within the scope of this relationship. We
    disagree.
    [24]   The Agency Agreement created “a limited, non-exclusive agency relationship
    between” Penske and JAS. Appellant’s App. Vol. II p. 62. While the terms of
    the Agency Agreement did not expressly permit JAS to possess a dog on the
    premises for or on behalf of Penske, it did require JAS to protect all Penske-
    owned and supplied property and indicated that JAS would not be liable for
    any damaged or stolen equipment if JAS “took all reasonable measures to
    secure and protect” the Penske-owned and supplied property. Appellant’s App.
    Vol. II p. 63. The designated evidence indicates that Dirindin posted the
    “Beware of Dog” sign “in an effort, in part, to protect Penske equipment” and
    “would occasionally bring a dog (including Cam) to her office for safety and
    protection.” Appellant’s App. Vol. II p. 118. Thus, one could reasonably argue
    that Dirindin was acting within the scope of her authority as Penske’s agent by
    having a dog on the premises as a means of protecting Penske’s equipment and
    property.
    [25]   Furthermore, the designated evidence indicates that Penske listed JAS as an
    authorized rental location and indicated that JAS’s normal hours of operation
    included the hours of 8:00 a.m. to 3:00 p.m. on Saturdays. It also indicates that
    McGrath successfully arranged to rent a Penske truck from JAS and arrived at
    JAS to pick up the truck within the publicized hours of operation. This
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 17 of 18
    evidence creates an issue of material fact as to whether Dirindin’s negligence
    fell within either JAS’s actual or apparent authority to act as Penske’s agent.
    As such, we conclude that the trial court properly denied Penske’s motion for
    summary judgment relating to the McGraths’ vicarious-liability claim.
    [26]   The judgment of the trial court is affirmed in part and reversed in part and the
    matter remanded to the trial court for further proceedings.
    Najam, J., and Mathias, J., concur.
    Court of Appeals of Indiana | Memorandum Decision 20A-CT-94 | September 10, 2020   Page 18 of 18