Crystal Foods Corporation v. B & K Equipment Company (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                               FILED
    court except for the purpose of establishing                       Jun 03 2020, 8:13 am
    the defense of res judicata, collateral                                 CLERK
    estoppel, or the law of the case.                                   Indiana Supreme Court
    Court of Appeals
    and Tax Court
    ATTORNEY FOR APPELLANT                                   ATTORNEY FOR APPELLEE
    Patrick A. Schuster                                      Laura S. Reed
    Crown Point, Indiana                                     Indianapolis, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    Crystal Foods Corporation,                               June 3, 2020
    Appellant-Plaintiff,                                     Court of Appeals Case No.
    19A-PL-2773
    v.                                               Appeal from the Lake Superior
    Court
    B & K Equipment Company,                                 The Honorable Kristina Kantar,
    Appellee-Defendant.                                      Judge
    Trial Court Cause No.
    45D04-1506-PL-47
    Tavitas, Judge.
    Case Summary
    [1]   Crystal Foods Corporation (“Crystal”) appeals the trial court’s grant of
    summary judgment to B&K Equipment Company (“B&K”). We affirm in part,
    reverse in part, and remand.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020                Page 1 of 16
    Issues
    [2]   Crystal raises two issues, which we consolidate and restate as whether the trial
    court properly granted summary judgment to B&K for breach of warranty. On
    cross-appeal, B&K also argues that the trial court erred by denying its motion
    for summary judgment regarding its statute of limitation defense.
    Facts
    [3]   Crystal operated a gas station in Merrillville on property owned by Nuch
    Corporation (“Nuch”). In March 2007, Crystal entered into a contract with
    B&K to remove and replace an underground storage tank located at Crystal’s
    gas station. B&K provided Crystal with a four-page “Proposal,” which Crystal
    signed (“Contract”). Appellant’s App. Vol. II p. 29. The first three pages of the
    Contract itemized and detailed the work B&K was to perform for Crystal. The
    Contract required B&K to “furnish material and labor to complete a tank
    replacement project” that included, in part: “[e]xcavat[ion], remov[al],
    clean[ing] and dispos[al] of the existing steel underground storage tanks”;
    “[f]urnish[ing] and install[ation of] a Xerxes, 22,000 gallon single wall fiberglass
    underground storage tank”; “[f]ill[ing] the excavation with compacted stone
    backfill”; and replac[ing] the concrete curb and “excavated pavement under the
    existing canopy with 6 [inch] thick fibermesh reinforced concrete.” Id. Each of
    these three pages was signed by both B&K and Crystal. At the bottom of each
    of the three pages, the following language was included: “SEE TERMS AND
    CONDITIONS TO THIS PROPOSAL.” Id. The third page of the Contract
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 2 of 16
    included “TERMS”, which detailed payment provisions and Crystal’s failure to
    comply with the terms of the Contract.
    [4]   The fourth page of the Contract was titled “TERMS AND CONDITIONS”
    and was not signed by the parties. The page included the following boilerplate
    language:
    TITLE AND OWNERSHIP: Unless otherwise directed by
    customer, if this contract includes installation, it is a construction
    contract which is an agreement between this Contractor/Seller
    and the Purchaser/Owner to alter, improve, repair, replace, or
    erect real property. It is expressly agreed that title to and
    ownership of the fixtures included in this construction contract
    pass to the Purchaser/Owner upon permanent and complete
    installation of the fixtures to real estate. . . .
    If this contract does not include installation or if it is a contract
    with a valid tax-exempt organization or if a valid resale certificate
    has been issued, it is a sale of tangible personal property and it is
    expressly agreed that title and ownership of the fixtures pass
    upon delivery, prior to installation. . . .
    *****
    If for any reason this contract is not paid in full within 90 days of
    completion of installation, it is agreed that in addition to
    collecting all balances due, the contractor shall have the right to
    remove the installed fixtures without written permission from or
    prior notice to the Purchaser/Owner and thereafter the fixtures
    shall become the personal property of Contractor and Contractor
    shall not be responsible for any damage to purchaser/owners
    property cause by such removal. . . .
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 3 of 16
    GRANT OF SECURITY INTEREST: For sales of tangible
    personal property, Purchaser hereby grants and Seller retains a
    purchase money security interest in said product/equipment,
    including proceeds there from, for the purpose of securing
    Purchaser’s obligation to make payment in full, until payment is
    received in full in cash or collected funds, at which time the
    security interest shall cease. . . . .
    PAYMENT AND COLLECTION TERMS: It is expressly
    understood and agreed that payment in full shall be due upon
    completion of installation or delivery unless prior arrangements
    have been made and agreed to. . . .
    WARRANTIES: All equipment/Product(s) and components
    carry a manufacturer’s warranty, which is passed onto the
    purchaser according to the manufacturer’s policy. No other
    warranties are either expressed or implied, including the
    warranty of merchantability and fitness for a particular purpose.
    Id. at 32.
    [5]   In 2008, the concrete in the area where B&K performed work settled and
    cracked. An engineering study concluded that the “3-inch size rock [used by
    B&K] was not a suitable backfill material.” Id. at 36. The study concluded that
    the “settlement of old concrete pavement around the backfill area and
    movement in the gasoline island No. 7 & 8 is caused by the improper
    backfilling of the former [underground storage tank] area.” Id. at 37. Crystal
    estimated its resulting damages at more than $312,000.00.
    [6]   In June 2015, Crystal and Nuch filed a complaint against B&K and alleged
    breach of contract and negligence. Crystal’s complaint alleged, in part, that:
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 4 of 16
    B&K “owed a duty to [Crystal] to perform its work in a good and workmanlike
    manner”; B&K was contracted to excavate, remove, and replace an
    underground storage tank on the property; and there was “a deficiency in the
    design, planning, supervision, construction, or observation of construction on
    the improvement to the Property by B&K constituting a breach by B&K of the
    Contract.” Appellant’s App. Vol. II p. 14.
    [7]   B&K filed a motion for summary judgment and claimed: (1) Crystal’s claim
    was barred because it was subject to a six-year statute of limitation for damage
    to real property pursuant to Indiana Code Section 34-11-2-7; (2) Crystal’s
    claims were barred by the written disclaimer of implied warranties in the
    Contract; and (3) Nuch was not a party to the Contract. Crystal filed a
    response to B&K’s motion for summary judgment. Crystal argued that: (1) the
    action was not barred by the statute of limitation because the ten-year statute of
    limitation for a written contract action pursuant to Indiana Code Section 34-11-
    2-11 applied; and (2) B&K’s two-paragraph warranty argument was “devoid of
    substantive law and facts to support the argument.” Id. at 42.
    [8]   After a hearing, the trial court granted summary judgment to B&K. 1 The trial
    court noted that Crystal did not dispute that Nuch was not a party to the
    Contract and did not dispute B&K’s motion for summary judgment regarding
    the negligence claim. The trial court concluded that B&K’s statute of limitation
    1
    We were not provided with the transcript of this hearing.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 5 of 16
    argument failed because the ten-year statute of limitation for a breach of written
    contract applied. The trial court, however, agreed with B&K’s warranty
    argument and found:
    Cited in the briefs before the Court is the case of Peltz Construction
    Company v. Dunham, 
    436 N.E.2d 892
     (Ind. [Ct.] App. 1982). In
    Peltz, [t]he Court was asked to consider whether waterproofing
    work on a basement constituted “goods” under UCC, and
    whether a warranty existed, and if so, was breached, causing
    damages. 
    Id. at 893
    . The UCC as adopted by Indiana, conveys
    additional rights and protections to a purchaser and “Indiana
    recognizes implied warranties of fitness for a particular purpose
    and implied warranties of merchantability,” under the act.
    Hyundai Motor Am., Inc. v. Goodin, 
    822 N.E.2d 947
    , 951-52 (Ind.
    2005) (citing 
    Ind. Code §§ 26-1-2-314
    , 315 (2003)). The “implied
    warranty of merchantability is imposed by operation of law for
    the protection of the buyer and must be liberally construed in
    favor of the buyer.” Frantz v. Cantrell, 711 N.E.2d [856, 859 (Ind.
    Ct. App. 1999)].
    The Court, however in Peltz rejected the existence of a UCC
    claim or protection, stating such waterproofing work on a
    basement did not constitute “goods” as contemplated by the act.
    
    Id.
     The Court additionally stated that “in Indiana, a contract
    action which alleges a breach of warranty requires proof of four
    factors: 1) the existence of a warranty; 2) the breach of that
    warranty; 3) causation and 4) resulting damage.” Id. at 894. The
    Court further held that where a warranty provides that work will
    be done in a workmanlike manner and with good materials, a
    plaintiff need not prove the reason for failure, but only that it did
    fail. Id. at 895 n.3.
    The heart of the dispute in the case above centers around
    Defendant’s denial of the existence of any warranty. The court
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 6 of 16
    must consider the language of the agreement and here the
    Proposal between the parties called for [B&K to] “[f]ill the
    excavation with compacted stone backfill,” without further
    qualifications or limitation, and as to the evidence of a warranty
    itself, the “terms and conditions” state:
    WARRANTIES: All equipment/Product(s) and
    components carry a manufacturer’s warranty; which is
    passed on to the purchaser according to the manufacturer’s
    policy. No other warranties are either expressed or
    implied, including the warranty of merchantability and
    fitness for a particular purpose.
    In contracts, “modification of warranties and limitations of
    remedy” are not per se unconscionable and any attempt to
    exclude or modify an implied warranty of merchantability must
    “mention merchantability” and any “limitation of the implied
    warranty of fitness must be in writing.” Hahn v. Ford Motor Co.,
    434 NE.2d 943, 948, 952 (Ind. Ct. App. 1982). In Indiana,
    “unconscionability is a question of law” for a court and “the
    party raising the issue bears the burden of proof.” Martin Rispens
    & Sons v. Hall Farms, 
    621 N.E.2d 1078
    , 1086 (Ind. Ct. App.
    1993).[ 2] In the present case, the Proposal between the parties
    specifically disclaimed any warranty and did so using the
    appropriate language for that purpose. Such exclusion is not
    unconscionable and consequently Plaintiff’s claims under
    contract are barred.
    Appellant’s App. Vol. II pp. 10-12.
    2
    Abrogated by Hyundai Motor Am., Inc. v. Goodin, 
    822 N.E.2d 947
    , 951-52 (Ind. 2005).
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020              Page 7 of 16
    [9]    Crystal filed a motion to correct error and argued: (1) B&K’s warranty
    argument was “woefully lacking” and B&K failed to meet its summary
    judgment burden; (2) the Uniform Commercial Code (“UCC”) does not apply
    to this contract and “whether warranties under the UCC can be disclaimed is
    immaterial in this case”; and (3) Crystal’s claim was for breach of contract, not
    breach of warranty. Id. at 51-52. B&K filed a response and argued: (1) B&K
    adequately argued in its motion for summary judgment that Crystal disclaimed
    any implied warranties; and (2) Crystal waived any argument that the implied
    warranty of workmanlike performance was different than other implied
    warranties. The trial court denied Crystal’s motion to correct error. Crystal
    now appeals.
    Analysis
    [10]   Summary judgment is appropriate only when the moving party shows there are
    no genuine issues of material fact for trial and the moving party is entitled to
    judgment as a matter of law. Erie Indem. Co. for Subscribers at Erie Ins. Exch. v.
    Estate of Harris by Harris, 
    99 N.E.3d 625
    , 629 (Ind. 2018), reh’g denied; see also
    Ind. Trial Rule 56(C). Once that showing is made, the burden shifts to the
    nonmoving party to designate appropriate evidence to demonstrate the actual
    existence of a genuine issue of material fact. Schoettmer v. Wright, 
    992 N.E.2d 702
    , 705-06 (Ind. 2013). When ruling on the motion, the trial court construes
    all evidence and resolves all doubts in favor of the non-moving party. Id. at
    706. We review the trial court’s ruling on a motion for summary judgment de
    novo, and we take “care to ensure that no party is denied his day in
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 8 of 16
    court.” Id. “We limit our review to the materials designated at the trial
    level.” Gunderson v. State, Indiana Dep’t of Nat. Res., 
    90 N.E.3d 1171
    , 1175 (Ind.
    2018), cert. denied, 
    139 S. Ct. 1167
     (2019).
    I. Breach of Contract
    [11]   Crystal argues that the trial court erred by granting B&K’s motion for summary
    judgment regarding its breach of contract claim. 3 Crystal argues that the trial
    court erred by failing to recognize B&K’s duty to perform its work in a
    workmanlike manner and that the trial court erred by finding the contract
    disclaimed B&K’s duty to perform its work in a workmanlike manner. 4 Crystal
    argues that its claim is a breach of contract claim, not a breach of warranty
    claim. B&K argues that Crystal’s breach of contract claim fails due to the
    warranty disclaimer in the Contract.
    [12]   “To prevail on a claim for breach of contract, the plaintiff must prove the
    existence of a contract, the defendant’s breach of that contract, and damages
    resulting from the breach.” Haegert v. Univ. of Evansville, 
    977 N.E.2d 924
    , 937
    3
    Crystal makes no argument regarding Nuch or the negligence claim. Accordingly, we address only
    Crystal’s breach of contract claim.
    4
    B&K argues that Crystal waived this argument by failing to raise it in its response to B&K’s motion for
    summary judgment. B&K had the burden of demonstrating that it was entitled to summary judgment. B&K
    very briefly argued that implied warranties were disclaimed by the Contract’s terms and conditions. Crystal
    responded that B&K’s one-sentence argument related to the issue was waived and distinguished the cases
    cited by B&K. We were not provided with the transcript of the summary judgment hearing. In its motion to
    correct error, Crystal argued that this was a breach of contract claim, not a breach of warranty claim, and that
    the implied duty to perform work in a workmanlike manner was not disclaimed. We conclude that Crystal
    adequately argued to the trial court that the implied duty to perform work in a workmanlike manner was not
    disclaimed and that Crystal did not waive the issue.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020                       Page 9 of 16
    (Ind. 2012). According to Crystal, its breach of contract claim is based on the
    implied duty of B&K to perform the work skillfully, carefully, and in a
    workmanlike manner. Our courts have held that[,] “[i]n a contract for work,
    there is an implied duty to do the work skillfully, carefully, and in a
    workmanlike manner.” INS Investigations Bureau, Inc. v. Lee, 
    784 N.E.2d 566
    ,
    576 (Ind. Ct. App. 2003), trans. denied. The failure to do so may be a breach of
    contract. 
    Id.
    [13]   These arguments require that we interpret the parties’ Contract. The
    interpretation of a contract “is particularly well-suited for de novo appellate
    review, because it generally presents questions purely of law.” WellPoint, Inc. v.
    Nat’l Union Fire Ins. Co. of Pittsburgh, PA, 
    29 N.E.3d 716
    , 721 (Ind. 2015), opinion
    modified on reh’g, 
    38 N.E.3d 981
     (Ind. 2015). Our goal in contract interpretation
    is “to determine the intent of the parties at the time that they made the
    agreement.” Care Grp. Heart Hosp., LLC v. Sawyer, 
    93 N.E.3d 745
    , 752 (Ind.
    2018). “We start with the contract language to determine whether it is
    ambiguous.” 
    Id.
     “If the language is unambiguous, we give it its plain and
    ordinary meaning in view of the whole contract, without substitution or
    addition.” 
    Id.
     This court must examine the plain language of the contract, read
    it in context and, whenever possible, construe it so as to render every word,
    phrase, and term meaningful, unambiguous, and harmonious with the whole.
    City of Plymouth v. Michael Kinder & Sons, Inc., 
    137 N.E.3d 312
    , 315 (Ind. Ct.
    App. 2019).
    [14]   The warranty at issue here provided:
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 10 of 16
    WARRANTIES: All equipment/Product(s) and components
    carry a manufacturer’s warranty, which is passed onto the
    purchaser according to the manufacturer’s policy. No other
    warranties are either expressed or implied, including the
    warranty of merchantability and fitness for a particular purpose.
    Appellant’s App. Vol. II p. 32. This provision was included at the end of the
    “TERMS AND CONDITIONS” page of the Contract. In interpreting this
    provision, we begin by noting that the parties’ Contract involved both the
    supply of services (excavation, removal of the old underground storage tanks,
    installation of the new tanks, construction of the new concrete pavement, etc.)
    and the provision of goods (the underground storage tanks and accessories).
    Accordingly, the Contract included language applicable to the sale of goods and
    language applicable to the provision of services. 5
    [15]   The first sentence of the warranty discusses manufacturer’s warranties and is
    clearly applicable to the sale of goods, such as the underground storage tanks.
    5
    The Sales chapter of the Indiana Uniform Commercial Code (“UCC”), Ind. Code Chapter 26-1-2, “applies
    to transactions in goods,” unless the context otherwise requires. 
    Ind. Code § 26-1-2-102
    . Our Supreme Court
    has noted that “[m]any modern commercial transactions cannot be classified as transactions purely for goods
    or for services, but are ‘mixed,’ involving both goods and services.” Insul-Mark Midwest, Inc. v. Modern
    Materials, Inc., 
    612 N.E.2d 550
    , 553-54 (Ind. 1993). In Insul-Mark, our Supreme Court held that, where the
    transaction is mixed, “courts look to the agreement between the parties to determine their understanding
    about the predominant purpose of the contract.” Id. at 554. This analysis is typically required to determine
    whether the UCC is applicable to a transaction. See id. at 556 (“Based upon the facts of this case as well as
    the well-reasoned conclusions of other courts, we hold as a matter of law that the thrust of the coating
    agreement between Kor-It and Modern Materials was predominantly for the performance of services. The
    U.C.C. does not apply to the transaction, and the parties’ dispute is therefore governed by our common
    law.”). Although the Contract contains many terms applicable to the sale of goods, neither party argues that
    the UCC warranty provisions are applicable here. Accordingly, we do not address the predominant purpose
    of the Contract.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020                   Page 11 of 16
    The second sentence of the warranty is the sentence at issue here. The last
    portion of the second sentence specifically disclaims the warranty of
    merchantability and fitness for a particular purpose. The warranty of
    merchantability and the warranty of fitness for a particular purpose are UCC
    concepts. See 
    Ind. Code § 26-1-2-315
    (1) (“Where the seller at the time of
    contracting has reason to know any particular purpose for which the goods are
    required and that the buyer is relying on the seller’s skill or judgment to select
    or furnish suitable goods, there is, unless excluded or modified under IC 26-1-2-
    316, an implied warranty that the goods shall be fit for such purpose.”); 
    Ind. Code § 26-1-2-314
     (“Unless excluded or modified (IC 26-1-2-316), a warranty
    that the goods shall be merchantable is implied in a contract for their sale if the
    seller is a merchant with respect to goods of that kind.”). Under the UCC, “to
    exclude or modify the implied warranty of merchantability or any part of it the
    language must mention merchantability and in case of a writing must be
    conspicuous, and to exclude or modify any implied warranty of fitness the
    exclusion must be by a writing and conspicuous.” 
    Ind. Code § 26-1-2-316
    . The
    second sentence of the warranty was clearly meant to disclaim the UCC
    implied warranties of fitness and merchantability pursuant to Indiana Code
    Section 26-1-2-316.
    [16]   B&K relies on the first portion of the second sentence— “[n]o other warranties
    are either expressed or implied”—for the proposition that all warranties
    associated with the Contract were disclaimed. This short phrase, however, is
    contained in a paragraph that pertains only to UCC concepts. In fact, most of
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 12 of 16
    the “TERMS AND CONDITIONS” pages discusses B&K’s provision of
    goods. Reading the Contract as a whole, we conclude that the warranty
    paragraph was unambiguously meant to address UCC concerns, not to disclaim
    all possible warranties of any kind.
    [17]   Accordingly, we conclude that B&K did not disclaim the implied duty of B&K
    to perform the work skillfully, carefully, and in a workmanlike manner. The
    designated evidence demonstrated genuine issues regarding whether B&K
    properly compacted the stone, resulting in cracked and settled concrete. As
    such, the trial court erred by granting B&K’s motion for summary judgment on
    Crystal’s breach of contract claim.
    II. Statute of Limitation
    [18]   On cross-appeal, B&K argues that the trial court erred by denying its motion for
    summary judgment regarding its statute of limitation argument. “Statutes of
    limitation ‘are practical and pragmatic devices to spare the courts from
    litigation of stale claims, and the citizen from being put to his defense after
    memories have faded, witnesses have died or disappeared, and evidence has
    been lost.’” V. Ganz Builders & Dev. Co., Inc. v. Pioneer Lumber, Inc., 
    59 N.E.3d 1025
    , 1032 (Ind. Ct. App. 2016) (quoting Russo v. S. Developers, Inc., 
    868 N.E.2d 46
    , 48 (Ind. Ct. App. 2007)), trans. denied. “‘[I]t is the nature or substance of the
    cause of action, rather than the form of the action, which determines the
    applicability of the statute of limitations.’” Barrow v. City of Jeffersonville, 
    973 N.E.2d 1199
    , 1205 (Ind. Ct. App. 2012) (quoting Shideler v. Dwyer, 
    275 Ind. 270
    , 276, 
    417 N.E.2d 281
    , 285 (1981)), trans. denied. The determination of the
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 13 of 16
    applicable statute of limitation is a matter of statutory construction that is
    “purely a question of law.” Januchowski v. N. Indiana Commuter Transp. Dist.,
    
    905 N.E.2d 1041
    , 1045 (Ind. Ct. App. 2009), trans. denied.
    [19]   On appeal, B&K argues that Crystal’s cause of action accrued on June 3, 2008,
    when Crystal received the report regarding the cause of the damaged concrete.
    Crystal filed its complaint on June 26, 2015, more than seven years later. B&K
    argues that the six-year statute of limitation for damage to real property applies.
    See Ind. Code 34-11-2-7 (“The following actions must be commenced within six
    (6) years after the cause of action accrues: . . . (3) Actions for injuries to
    property other than personal property . . . .”). Crystal, however, argues that the
    ten-year statute of limitation for breach of a written contract applies. See Ind.
    Code 34-11-2-11 (“An action upon contracts in writing . . . must be commenced
    within ten (10) years after the cause of action accrues.”). The trial court found
    that the ten-year statute of limitation applied and that Crystal’s claim was not
    barred by the statute of limitation.
    [20]   In support of its argument, B&K relies primarily on Habig v. Bruning, 
    613 N.E.2d 61
     (Ind. Ct. App. 1993), trans. denied. In Habig, homeowners filed a
    complaint against contractors for breach of contract, breach of warranty of
    habitability, and breach of warranty of workmanship after the addition to their
    house began leaking. There is no indication in the opinion that a written
    contract between the contractors and the homeowners existed. The arguments
    presented to the Court centered on when the statute of limitation began to run.
    With no analysis or discussion regarding the proper statute of limitation, our
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 14 of 16
    Court noted that the statute of limitation “for damage to real property caused
    by breach of contract and warranty” was applicable. Habig, 
    613 N.E.2d at 64
    .
    [21]   The trial court and Crystal rely upon Powers & Sons Constr. Co. v. Healthy East
    Chicago, 
    919 N.E.2d 137
     (Ind. Ct. App. 2009). There, a building owner entered
    into a written contract with a construction manager for the construction of a
    health service facility. The building owner filed a complaint against a
    construction manager for breach of contract after its building developed cracks
    in the floors, walls, and ceilings. The construction manager argued that a two-
    year statute of limitation for injury to personal property pursuant to Indiana
    Code Section 34-11-2-11 or the six-year statute of limitation under Indiana
    Code Section 34-11-2-7 was applicable. The building owner argued that the
    ten-year statute of limitation for breach of a written contract was applicable.
    [22]   We agreed with the building owner and held that the ten-year statute of
    limitation for breach of a written contract was applicable because “[t]he
    relationship between the parties and [the construction manager’s] duties and
    responsibilities as general contractor arose from the contract rather than from a
    standard of care imposed by law.” Powers & Sons, 
    919 N.E.2d at 143
    . The
    building owner’s complaint sought “to recover damages sustained as a result of
    [the construction manager’s] failure to perform according to the contract; that
    is, to hire and supervise subcontractors and construct a building conforming to
    the plans and specifications suitable for [the building owner’s] needs.” 
    Id. at 143-44
    . Accordingly, we held that the complaint was governed by the ten-year
    statute of limitation applicable to written contracts.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 15 of 16
    [23]   We do not find Habig persuasive here. Crystal entered into a written contract
    with B&K for the removal and replacement of an underground storage tank.
    The contract included filling the excavation with compacted stone backfill and
    replacing the removed pavement with six-inch thick reinforced concrete. When
    the concrete settled due to the improper backfill, Crystal filed a complaint
    against B&K for breach of contract. The nature and substance of this action
    pertains to B&K’s obligations under the written contract. Under these
    circumstances, as in Powers & Sons, we conclude that the ten-year statute of
    limitation for a breach of written contract action applies.
    Conclusion
    [24]   The trial court properly denied B&K’s motion for summary judgment regarding
    its statute of limitation defense. The trial court, however, erred by granting
    B&K’s motion for summary judgment regarding Crystal’s breach of contract
    claim. We affirm in part, reverse in part, and remand.
    [25]   Affirmed in part, reversed in part, and remanded.
    Riley, J., and Mathias, J., concur.
    Court of Appeals of Indiana | Memorandum Decision 19A-PL-2773 | June 3, 2020   Page 16 of 16