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Mathis Franklin, Jr. v. Bayview Loan Servicing, LLC, and M&M Mortgage, Inc. (mem. dec.)

Citation: Not availableDocket: 17A-PL-3058

Court: Indiana Court of Appeals; August 30, 2018; Indiana; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves an appeal by Mathis Franklin, Jr. against Bayview Loan Servicing, LLC and M&M Mortgage, Inc., following a foreclosure action on Franklin's property. After Franklin defaulted on his loan, Bayview initiated foreclosure proceedings. During this period, Advanced Property Preservation, Inc., an independent contractor hired by M&M, allegedly caused damage to Franklin's property while securing it. Franklin filed a lawsuit alleging breach of contract and various tort claims due to the damages. The trial court granted summary judgment to the defendants, as they demonstrated that Advanced was an independent contractor, thus shielding them from liability under the general rule. The appellate court upheld this decision, finding that Franklin failed to establish any genuine issue of material fact or applicable exception to the independent contractor rule. The court concluded that the work performed by Advanced was neither inherently dangerous nor illegal, nor did it create a nuisance or probable injury. Consequently, the summary judgment in favor of Bayview and M&M was affirmed, absolving them of liability for Advanced's actions.

Legal Issues Addressed

Burden of Proof in Summary Judgment

Application: The defendants successfully shifted the burden to Franklin, who failed to demonstrate a genuine issue of material fact regarding the independent contractor status of Advanced.

Reasoning: To succeed, the moving party must show that undisputed material facts negate at least one element of the opposing party’s claim, after which the burden shifts to the nonmoving party to prove that a genuine issue exists.

Exceptions to Non-Liability for Independent Contractor Actions

Application: Franklin's claims did not satisfy any exceptions to the rule of non-liability for independent contractors, as he failed to provide evidence of illegal acts directed by Bayview or M&M.

Reasoning: Additionally, Franklin contends that Advanced's alleged illegal acts, including vandalism and bankruptcy law violations, invoke an exception to the liability rule for independent contractors. However, this exception applies only when a principal engages an independent contractor to perform illegal acts on its behalf.

Liability of Principals for Independent Contractors

Application: The court found that Bayview and M&M were not liable for the actions of Advanced, as Advanced was an independent contractor and none of the recognized exceptions to the general rule of non-liability were applicable.

Reasoning: The general rule states that an employer is not liable for an independent contractor's actions unless a master-servant relationship exists. However, five exceptions to this rule have been recognized: 1) performance of intrinsically dangerous work, 2) legal or contractual obligation of the principal, 3) creation of a nuisance, 4) probable injury from the act unless precautions are taken, and 5) illegality of the act.

Summary Judgment Standards

Application: The appellate court reviewed the summary judgment under the same standard as the trial court, determining no genuine issue of material fact existed and that the defendants were entitled to judgment as a matter of law.

Reasoning: When reviewing a summary judgment motion, the court applies the same standard as the trial court, determining if there is no genuine issue of material fact and if the moving party is entitled to judgment as a matter of law.