Eagledale Enterprises, LLC v. Cox
| Decision Date | 28 October 2004 |
| Docket Number | No. 49A04-0401-CV-45.,49A04-0401-CV-45. |
| Parties | EAGLEDALE ENTERPRISES, LLC d/b/a Club Mecca, Appellant-Defendants v. Danielle COX and Martine Spencer, Appellee-Plaintiffs. |
| Court | Indiana Appellate Court |
Swaray E. Conteh, The Law Office of Swaray Conteh, LLC, Indianapolis, IN, Attorneys for Appellant.
T.R. Fox, Indianapolis, IN, Attorney for Appellees.
Eagledale Enterprises, LLC, doing business as Club Mecca ("the Club"), appeals the trial court's judgment in favor of Martine Spencer and Danielle Cox that awarded them damages for injuries they suffered as a result of an altercation that occurred inside the Club. We affirm.
The Club presents two issues for our review, which we restate as the following:
In the early morning hours of March 23, 2001, Cox was a patron at the Club, a nightclub in Indianapolis, Indiana. Cox was in the "VIP area," which is on the second floor of the Club. Spencer, the paternal grandmother of Cox' three children, was working as a bartender at the Club that night. Sometime that evening, Spencer closed down her bar and joined Cox in the VIP area of the Club. Spencer subsequently went to the bar to get a beer, and during that time, some female patrons at the Club physically attacked Cox. Spencer saw the altercation and eventually stepped in to assist Cox. As a result of her intervention, Spencer's arm was broken during the altercation. Cox also suffered injuries from the fight, including a black eye.
Spencer and Cox subsequently filed a complaint for damages against the Club, alleging that the Club negligently failed to provide security and protection while Spencer and Cox were at the Club. Prior to trial, the Club filed a motion to dismiss, alleging that the trial court did not have subject matter jurisdiction over Spencer's claim because Spencer, an employee of the Club, was working that night when she was injured, so Spencer should have sought compensation for her injuries under the Club's worker's compensation insurance. The trial court denied the motion. After a bench trial, the trial court entered a general judgment for Spencer and Cox, and awarded them damages. The Club now appeals. Additional facts will be provided as necessary.
The Club contends the following: (1) the trial court erred in denying the Club's motion to dismiss for lack of subject matter jurisdiction; and (2) sufficient evidence did not exist to support the trial court's finding that the Club not only breached its duty to protect Spencer and Cox from injury while they were patrons inside the Club, but such breach caused Spencer and Cox's injuries.1
The Club first contends the trial court erred in denying its motion to dismiss for lack of subject matter jurisdiction. More specifically, the Club argues that the trial court lacked subject matter jurisdiction over Spencer's claim because her claim fell within the exclusivity provision of the Indiana Worker's Compensation Act ("the Act"). We disagree.
The standard of appellate review for a motion to dismiss for lack of subject matter jurisdiction is a function of what occurred in the trial court. GKN Co. v. Magness, 744 N.E.2d 397, 401 (Ind.2001). In other words, the applicable standard of review is dependent upon "(i) whether the trial court resolved disputed facts; and (ii) if the trial court resolved disputed facts, whether it conducted an evidentiary hearing or ruled on a `paper record.'" Id. If, as here, the facts before the trial court were not in dispute, then the standard of review is de novo because the issue of subject matter jurisdiction is a question purely of law. Id.
When challenging the trial court's jurisdiction, the employer bears the burden of proving that the employee's claim falls within the purview of the Act, unless the employee's complaint demonstrates the existence of an employment relationship. Id. at 404. In this case, Spencer's complaint did not demonstrate the existence of an employment relationship between the Club and Spencer, so the Club carried the burden of establishing that Spencer's claim fell within the exclusivity provision of the Act.
The exclusivity provision of the Act limits an employee to the rights and remedies provided by the Act where an employee's injury meets the jurisdictional requirements of the Act. See Ind.Code § 22-3-2-6. For an injury to be compensable under the Act, it must both arise "out of" and "in the course of" the employment. Greenberg News Network v. Frederick, 793 N.E.2d 311, 316 (Ind.Ct.App.2003). The phrase "arising out of" refers to the origin and cause of the injury; the phrase "in the course of" refers to the time, place and circumstances under which the injury occurred. Nelson v. Denkins, 598 N.E.2d 558, 561 (Ind.Ct.App.1992), quoting Skinner v. Martin, 455 N.E.2d 1168, 1170 (Ind.Ct.App.1983). Thus, for an injury to arise out of and in the course of employment, it must occur within the period of employment, at a place or area where the employee may reasonably be, and while the employee is engaged in an activity at least incidental to his employment. Price v. R & A Sales, 773 N.E.2d 873, 875 (Ind.Ct.App.2002), trans. denied.
Spencer testified to the following: On the evening of the altercation, Spencer was working at the Club as a bartender. Spencer had known Cox for about fifteen years prior to this incident, and she decided to join Cox in the VIP area of the Club. Spencer stated, "My bar had closed, I was finished and I came up and sat with [Cox]...." Tr. at 18. Spencer later testified that she was still "on the clock" but on a work break when she joined Cox in the VIP area. After she was injured while intervening in the altercation, Spencer testified that the Club did not mention anything to her about coverage under its worker's compensation insurance, and it did not provide her with any forms to fill out or instruct her to see a specific doctor about her injury.
In this case, the facts are not in dispute that Spencer's injuries occurred while she was within her period of employment and at her employer's nightclub. The issue, then, is whether Spencer was engaged in an activity that was at least incidental to her employment.
[O]rdinarily an assault by a third person not connected to the employment cannot be considered incidental to the employment. A personal squabble with a third person culminating in an assault is not compensable. However, where the assault is one which might be reasonably anticipated because of the general character of the work, or the particular duties imposed upon the workman, such as a baking route salesman who carried money and was shot and robbed, or a night watchman killed by intruders, such injuries and death may be found to arise out of the employment.
Wayne Adams Buick, Inc. v. Ference, 421 N.E.2d 733, 736-37 (Ind.Ct.App.1981) (citations omitted).
As discussed earlier, the Club bore the burden of showing that Spencer's injury fell within the purview of the Act. Thus, the Club was required to present evidence that Spencer was engaged in an activity that was at least incidental to her employment when she was injured. The Club, however, failed to do so. It did not present any evidence that because of the general character of Spencer's work, or because of the duties the Club imposed upon her, the assault could be reasonably anticipated. The mere fact that the Club hired security officers to protect its patrons suggests that Spencer was engaged in an activity that was not in the general character of her work or a part of her particular duties. Because the Club did not meet its burden, the trial court did not err in denying the Club's motion to dismiss.
The Club next contends sufficient evidence did not exist to support the trial court's judgment in favor of Spencer and Cox. To establish a claim of negligence, a plaintiff must show: (1) that the defendant owed the plaintiff a duty; (2) that the defendant breached that duty; and (3) that the breach proximately caused the plaintiff's injury. Webb v. Jarvis, 575 N.E.2d 992, 995 (Ind.1991). "Proprietors owe a duty to their business invitees to use reasonable care to protect them from injury caused by other patrons and guests on their premises, including providing adequate staff to police and control disorderly conduct." Muex v. Hindel Bowling Lanes, Inc., 596 N.E.2d 263, 266 (Ind.Ct.App.1992). This duty, however, extends only to harm from the conduct of third persons that, under the facts of a particular case, is reasonably foreseeable to the proprietor. Id. at 267.
In the instant case, the Club does not dispute that it owed a duty of reasonable care to its patrons. Instead, the Club contends Spencer and Cox failed to present sufficient evidence to show that (1) the Club breached the duty it owed to its patrons to use reasonable care in order to protect them from injury; and (2) even if a breach existed, the breach was not the proximate cause of Spencer and Cox's injuries. We disagree.
In reviewing general judgments issued in a civil case tried to the bench, we ask only "whether there is substantial evidence of probative value supporting the verdict on any legal theory." Bayh v. Sonnenburg, 573 N.E.2d 398, 402 n. 5 (Ind.1991), cert. denied, 502 U.S. 1094, 112 S.Ct. 1170, 117 L.Ed.2d 415 (1992). We neither reweigh evidence nor judge the credibility of witnesses, and we consider only the evidence most favorable to the prevailing party along with all reasonable inferences to be drawn therefrom. Id. Conflicts in the evidence do not render the evidence insufficient if there is relevant...
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