ROBB, Chief Judge.
Ramon and Stacey Halum (collectively, the "Halums") entered into a contract with Michael Thalheimer for Thalheimer to remove carpet and tiles in the Halums's home and to install new tiles. After Thalheimer did so, a dispute arose among the parties regarding whether, when, and what Thalheimer would do about some portion of the work with which the Halums were dissatisfied. Following a bench trial, Thalheimer appeals the trial court findings and judgment in favor of the Halums. Thalheimer raises four issues, which we restate as: 1) whether the Halums's spoliation of evidence, if at all, required a finding in favor of Thalheimer; 2) whether the doctrine of economic loss precluded the Halums's negligence claim; 3) whether the warranty in the contract precluded the
We affirm upon concluding that Thalheimer waived his claim that the Halums spoliated evidence; the economic loss doctrine did not preclude the Halums's negligence claim; the trial court did not abuse its discretion in finding that Thalheimer's conduct negated the warranty in the contract; and the trial court did not abuse its discretion in finding that Thalheimer's work was of poor quality. We deny the Halums's request for appellate attorney fees.
On June 8, 2008, the Halums entered into a written contract with Thalheimer for his compensation to remove carpet and tiles in the Halums's living room, entryway, and at least one hallway, and to install new tiles. Thalheimer completed the work in late June, the Halums conducted an initial review
Over the next several months, Thalheimer and the Halums corresponded by email to negotiate when and how many tiles Thalheimer would adjust when he returned to the Halums's home because the Halums identified additional tiles with which they were dissatisfied. At some point, the Halums became frustrated with the negotiations, hired another contractor to redo the flooring, and retained an attorney.
A little over a year after the contract was signed, on June 16, 2009, the Halums filed suit against Thalheimer, alleging breach of contract, negligence, and violation of an implied warranty of habitability.
Following a bench trial, the trial court entered an order which states:
Appellant's Appendix. at 3-4.
Thalheimer filed a motion to correct error, which the trial court denied in an order which states:
Id. at 5-7.
Thalheimer now appeals.
In reviewing an order in which the trial court makes findings of fact and conclusions of law, our standard of review is well-settled:
McCauley v. Harris, 928 N.E.2d 309, 313 (Ind.Ct.App.2010), trans. denied.
Thalheimer first argues the Halums committed spoliation of evidence by having Keenan remove and redo Thalheimer's tile installation, all in the same month that the Halums filed suit. The Halums's spoliation of evidence, Thalheimer argues, required the trial court to find in his favor. Before we discuss whether spoliation occurred or its effect, if any, on the trial court's findings, we address the threshold issue of whether Thalheimer waived appellate review of this issue.
Waiver is a threshold issue because generally a party is precluded from presenting an argument or issue to Indiana appellate courts unless the party first raised that argument or issue to the trial court. GKC Indiana Theatres, Inc. v. Elk Retail Investors, LLC, 764 N.E.2d 647, 651 (Ind.Ct.App.2002).
Id. (citations omitted); see, e.g., Harris v. Superior Ct. of Arizona ex rel. Cnty. of Maricopa, 278 Fed.Appx. 719, 722 (9th Cir.2008) (holding that the appellant waived his appellate claim of spoliation of evidence by raising it for the first time on appeal).
Thalheimer insists he raised the issue of spoliation to the trial court, referring us to two portions of the record: 1) one page of the transcript in which Ramon Halum states that in June 2009 Keenan redid Thalheimer's work of June 2008, and 2) portions of Thalheimer's motion to correct error in which he summarizes the law regarding spoliation of evidence and urges the trial court to make an inference in his favor. Thalheimer also appears to contend the Halums's spoliation of evidence was so obvious that he should not have needed to explicitly make such an argument to the trial court.
Arguments articulated in a motion to correct error which were not made at trial do not preserve issues for appellate review. If the opposite were true, motions to correct error might contain a bevy of untimely objections, petty complaints regarding the logistical presentation of evidence, attempts to rework trial strategies that did not work well, and other untimely arguments that would distract from the purpose of a motion to correct error.
It is this latter type of argument which we now address. Specifically, whether the testimony to which Thalheimer now refers us sufficiently raised the issue of spoliation to avoid waiver:
Transcript at 57 (ellipses in original).
This single question and answer is insufficient to argue spoliation occurred, and thus, insufficient to preserve the issue of spoliation for appellate review. This question was part of cross-examination which spanned less than one and one-half pages in the transcript. Read in context, this question appears to have been intended to clarify that Keenan redid Thalheimer's work during the two-year warranty period after Thalheimer completed the work. This question — and the focused, limited cross-examination in the entirety — did not explicitly seek to present evidence of spoliation, appear to have been intended to demonstrate evidence of spoliation, or raise the issue of spoliation at all.
Generally, the economic loss doctrine provides that where a contract exists, that "contract is the only available remedy where the loss is solely economic in nature, as where the only claim of loss relates to the [service or] product's failure to live up to expectations, and in the absence of damage to other property or person." Gunkel, 822 N.E.2d at 152 (quotation omitted). Thalheimer argues the trial court failed to apply the economic loss doctrine in determining the claims and remedies available to the Halums. The Halums respond that the economic loss doctrine does not apply because the trial court entered a factual finding that the Halums's young son sustained physical injury.
We are guided by Indiana case law regarding the economic loss doctrine, which
Id. at 1074-75.
In Gunkel, the court clarified:
822 N.E.2d at 153.
In other words, a plaintiff may bring an action for breach of contract and may only recover economic losses under that contract, but the same plaintiff may also bring a tort action for a loss that is not purely economic and not covered in the contract. Whether the plaintiff may succeed under the tort theory is another question, but the point here is that the plaintiff is not precluded from bringing an action for personal injuries merely because a contract existed and the plaintiff also seeks a remedy under the contract. See Fleetwood Enters., Inc. v. Progressive N. Ins. Co., 749 N.E.2d 492, 495 (Ind.2001) ("[U]nder Indiana procedure, a plaintiff may readily pursue both a contract claim for damage to the product itself and a tort claim for personal injury or damage to other property under the Products Liability Act.").
Here the Halums sued Thalheimer for a breach of contract, and the trial court found in their favor. The Halums also sued Thalheimer for negligence for the injury to their son, and the trial court found in their favor. The economic loss doctrine does not lead us to conclude the trial court committed reversible error.
Thalheimer appears to challenge the trial court's finding that the Halums's son sustained an injury, but this is quite different from arguing the trial court improperly failed to apply the economic loss doctrine, and is unpersuasive in its own right because we do not reweigh evidence.
Thalheimer next argues that the trial court erred in not considering the warranty included in the contract when it ruled in favor of the Halums. The portion of the
In addressing Thalheimer's argument as to the warranty, at least two sub-issues arise. It appears from the evidence that the Halums sought Thalheimer's additional work under the warranty and Thalheimer was dilatory in responding. The degree to which the Halums diligently sought redress under the warranty and the degree to which Thalheimer was dilatory were factual issues at trial. The first sub-issue then, is whether the trial court abused its discretion by apparently concluding that Thalheimer's dilatory response in effect voided the warranty.
The second sub-issue is whether the warranty in the contract was clear. In Schultz v. Erie Ins. Grp., 754 N.E.2d 971 (Ind.Ct.App.2001), trans. denied, our court explained how the term "faulty workmanship" in an insurance contract could be read in at least two ways. Id. at 974-77. The term workmanship could refer to a final product, or it could refer to one's craftsmanship. This ambiguity could be relevant here, where Thalheimer argues the warranty in the contract only entitled the Halums to his continued labor (i.e., craftsmanship) in the event of their dissatisfaction; while the Halums argue the warranty in the contract entitled them to a satisfactory product. Because of this genuine dispute over the interpretation of the terms of a contract, it would not have been unreasonable for the trial court to construe it against Thalheimer, who drafted it. See Binford v. Shicker, 553 N.E.2d 845, 848 (Ind.Ct.App.1990), trans. denied.
In sum, the trial court did not abuse its discretion in finding for the Halums in spite of the disputed warranty included in the contract.
Thalheimer next argues the trial court erred in concluding that Thalheimer's tile work was done in an unworkmanlike manner. He refers us to portions of the record which support his view that his work was done properly, but this is contrary to other portions of the record which support the trial court's finding that the quality of his work was of poor quality, namely, the testimonies of the Halums and Keenan. Thalheimer invites us to reweigh the evidence and assess the credibility of witnesses. Per our standard of review, we decline this request and affirm this conclusion of the trial court.
The Halums argue Thalheimer's appeal is frivolous and was made in bad faith, and therefore they seek appellate attorney fees under Appellate Rule 66(E). Our discretion
Thalheimer waived the issue of the Halums's spoliation of evidence by not presenting the issue to the trial court. The economic loss doctrine did not preclude the Halums's negligence claim. The trial court did not abuse its discretion in determining the contract warranty did not bar the Halums's breach of contract claim, or in finding that Thalheimer's work was of poor quality. Therefore we affirm, but the Halums's request for attorney fees is denied.
Affirmed.
BAILEY, J., and MATHIAS, J., concur.