Woodruff v. Wilson Oil Co., Inc.

• Decision Date: 29 November 1978
• Docket Number: No. 3-975A188,3-975A188
• Citation: 178 Ind.App. 428,382 N.E.2d 1009
• Parties: Roy J. WOODRUFF and Delores Woodruff, Appellants-Plaintiffs, v. WILSON OIL COMPANY, INC., Appellee-Defendant.
• Court: Indiana Appellate Court

Page 1009

382 N.E.2d 1009

178 Ind.App. 428

Roy J. WOODRUFF and Delores Woodruff, Appellants-Plaintiffs, v. WILSON OIL COMPANY, INC., Appellee-Defendant.

No. 3-975A188.

Court of Appeals of Indiana, Third District.

Nov. 29, 1978.

James F. Groves, Noell, Groves & White, South Bend, for appellants-plaintiffs.

R. Kent Rowe, Lewis C. Laderer, Jr., Rowe and Laderer, South Bend, for appellee-defendant.

STATON, Judge.

Roy and Delores Woodruff, as lessors, filed suit against the Wilson Oil Company, Inc. ("Wilson"), as lessee. The Woodruffs alleged that as the result of Wilson's negligence, a building on the leased property had been destroyed by fire. Wilson filed a motion for summary judgment contending that, by the terms of the lease, the Woodruffs were prohibited from bringing such a suit. The trial court concluded that pursuant to the terms of the lease, the Woodruffs had agreed to maintain fire insurance on the buildings for the benefit of both parties and, therefore, were compelled to seek reimbursement for any fire loss occasioned by Wilson's negligence solely from the proceeds of the insurance. Accordingly, the trial court granted a summary judgment for Wilson. In their appeal to this Court, the Woodruffs contend that the trial court erroneously interpreted the lease.

We affirm.

On June 10, 1969, the Woodruffs and Wilson entered into a lease agreement concerning certain property in LaPorte County, Indiana. The property was leased by Wilson for the purpose of carrying on the business of a petroleum bulk storage plant.

The relevant provisions of the lease read as follows:

"6. Lessor's covenants. Lessors covenant and agree with the Lessee as follows:

"c. The Lessors agree to pay all real estate taxes and the costs of fire and extended coverage insurance on the premises during the term of this lease.

"7. Fire and Other Casualty. Should the buildings and other improvements upon the premises be destroyed by fire or by the elements, the same shall be repaired as speedily as possible at the expense of the Lessors and if such destruction interferes with the Lessee's ability to use the premises, then a just and proportionate part of the rent shall be abated until the premises have been put in complete repair; providing that, if said destruction shall occur within the last year of this lease, and at the time of such destruction, the Lessee has not exercised its option to purchase said real estate, the Lessee shall be given a period of thirty (30) days from the date of the destruction in which to exercise the same. If the Lessee exercises said option, the Lessors shall either proceed to restore the buildings providing as much floor space therein as is contained in the said demised premises or shall convert the insurance proceeds to the Lessee for the purpose of such construction. In the event the Lessee does not exercise the option within the said thirty (30) day period, then the Lessors may, at their own expense, proceed to restore the buildings or refuse to do so, at their election, and in each such event, the rent shall abate until the buildings are restored or, if they are not restored, this Lease shall thereupon terminate.

In this regard, the Lessor agrees, during the term of this lease, to keep in existence during the term of this lease such fire and extended coverage insurance in such amount as will insure the replacement of said buildings and improvements."

We note initially that the Woodruffs advance several arguments which are predicated on the proposition that we are dealing with an exculpatory clause. These arguments, although well-researched and well- reasoned, are inapposite. Wilson is not proceeding on the theory that the lease provisions exculpated it from liability for its...