FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEES:
AARON E. HAITH RICHARD R. SKILES
Indianapolis, Indiana RICHARD A. COOK
Skiles & Cook
Indianapolis, Indiana
DOROTHY J. HOLLOWAY, )
)
Appellant-Plaintiff, )
)
vs. ) No. 49A02-9711-CV-734
)
BOB EVANS FARMS, INC. )
and NORPAC FOODS, INC., )
)
Appellees-Defendants. )
NAJAM, Judge
a napkin as Holloway yelled, "There's a worm in my food!" Holloway later described the
worm as approximately the size of a match. She stated further that the worm had black hair
and was "yellowish looking" where it had been cooked.
Holloway and Nekisha then proceeded to the register to pay for the meal. At that
point, the manager of the restaurant told Holloway that Bob Evans buys frozen vegetables
that are not washed before they are cooked. Holloway left the restaurant and began vomiting
while sitting in her car. Nekisha remained in the restaurant and paid for the meal.
Subsequent to the incident at Bob Evans, Holloway experienced vomiting and
diarrhea which aggravated her hemorrhoids for a period of two weeks. Holloway also had
nightmares about discovering the worm in her food, experienced weight loss and visited both
her family doctor and a psychologist at Charter Hospital. She claims to have missed work
because of her illness and treatment and that the incident at Bob Evans has affected her
emotionally, psychologically and physically.
interrogatories, admissions, matters of judicial notice, and other matters which have been
designated by the parties to the trial court for consideration. Id. We do not weigh the
evidence presented by the parties. Rather, we consider the evidence designated by the parties
in the light most favorable to the non-moving party. USA Life, 682 N.E.2d at 534.
Here, Holloway's complaint alleged in relevant part:
10. Norpac knowingly delivered frozen food products to Bob Evans with the
intention that the same be prepared and sold to the public who were invitees
to Bob Evans.
11. Bob Evans recklessly and negligently failed to exercise reasonable care
in the preparation of the food ordered by [Holloway], and Norpac negligently
packaged the food products sold to [her].
12. As a direct and proximate result of [Bob Evans's and Norpac's]
negligence and failure to exercise reasonable care, [Holloway] suffered injury
to her person of a continuing nature and out-of-pocket losses as hereinabove
set forth.
On its face, Count I of Holloway's complaint sounds in both tort and contract. Regarding the contract theory, paragraph 9 of the complaint alleges that there was an offer, acceptance and consideration. See Straub v. B.M.T. by Todd, 645 N.E.2d 597, 598 (Ind. 1994) (rudimentary elements of contract are offer, acceptance of the offer and consideration). Specifically, the complaint alleges that Bob Evans invited Holloway into the restaurant and offered to prepare and serve her a wholesome meal. The complaint further alleges that Holloway accepted that offer when she ordered the chicken stir fry special and agreed to pay the price advertised. According to Holloway, the "bargained-for exchange" is that she agreed to pay the price for the meal that Bob Evans agreed to prepare and serve. See B-Dry Owners Ass'n v. B-Dry System, Inc., 636 N.E.2d 161, 163 (Ind. Ct. App. 1994) (consideration
consists of a bargained-for exchange), trans. denied. Further, under a third party beneficiary
theory, paragraph 10 of the complaint alleges that Norpac breached its obligation to deliver
unadulterated frozen food to Bob Evans. Given the rules of notice pleading under Trial Rule
8, we conclude that Count I of Holloway's complaint was sufficient to place Bob Evans and
Norpac on notice of her breach of contract theory.
We must now determine whether the trial court erred when it granted summary
judgment in favor of Bob Evans and Norpac on Holloway's breach of contract claim.See footnote
2
Initially, we note that this is the first time we have encountered a breach of contract theory
in a case where a restaurant has allegedly served adulterated food to a customer.See footnote
3
In any
event, the essential elements of any breach of contract claim are the existence of a contract,
the defendant's breach thereof, and damages. See Shumate v. Lycan, 675 N.E.2d 749, 753
(Ind. Ct. App. 1997), trans. denied.
First, Bob Evans argues that Holloway's breach of contract claim must fail because
she did not
argue or designate any evidence regarding her damages from the alleged breach.
Bob Evans maintains that the only damages placed at issue by Holloway were her emotional
distress damages and that such damages are not recoverable for breach of contract. We agree
with Bob Evans that emotional distress is not a recoverable damage under a pure breach of
contract theory. See Plummer v. Hollis, 213 Ind. 43, 11 N.E.2d 140 (Ind. 1937). Rather, the
proper measure of damages for breach of contract is the loss actually suffered as a result of
the breach. Further, plaintiff is not entitled to be placed in a better position than he would
have been had the breach not occurred. Showalter, Inc. v. Smith, 629 N.E.2d 272, 276 (Ind.
Ct. App. 1994), trans. denied. In order to succeed on a breach of contract claim, plaintiff
bears the burden of demonstrating that defendant's breach of contract was a "substantial
factor" contributing to her damages. Fowler v. Campbell, 612 N.E.2d 596, 602 (Ind. Ct.
App. 1993).
In addition to her emotional distress damages, Holloway's complaint alleges that she
suffered injuries and lost wages. Contrary to Bob Evans's argument, Holloway testified in
her deposition regarding her physical illness after the incident at Bob Evans, her multiple
doctor visits, the medications prescribed by her doctors and her absence from work. Thus,
the designated evidence supports Holloway's contention that she sustained damages other
than emotional distress. We conclude that there is a genuine issue of material fact whether
Bob Evans's breach was a substantial factor which contributed to these damages and,
therefore, that the trial court erred when it granted summary judgment on the breach of
contract claim as it relates to Bob Evans.
Next, Norpac asserts that Holloway failed to present any evidence in support of her
breach of contract claim as it relates to Norpac. We agree. Holloway's complaint alleged
that "Norpac knowingly delivered frozen food products to Bob Evans with the intention that
the same be prepared and sold to the public who are invitees of Bob Evans." Thus,
Holloway's breach of contract claim against Norpac is based on a third party beneficiary
theory. A third party beneficiary contract exists when: (1) the parties intend to benefit the
third party, (2) the contract imposes a duty on one of the parties in favor of the third party,
and (3) the performance of the terms of the contract renders a direct benefit to the third party
intended by the parties to the contract. Natl. Bd. of Examiners for Osteopathic Physicians
and Surgeons, Inc. v. American Osteopathic Ass'n., 645 N.E.2d 608, 618 (Ind. Ct. App.
1994). Here, Holloway failed to designate any evidence regarding the terms of the contract
between Norpac and Bob Evans, nor did she demonstrate that Norpac or Bob Evans intended
that she receive a direct benefit by performance of the contract. Therefore, the trial court did
not err when it granted Norpac's motion for summary judgment on the breach of contract
issue.
Norpac respond that Holloway's emotional distress claim must fail because there is no
evidence that she suffered a direct physical impact.
Under Indiana's traditional impact rule, damages for mental distress could only be
recovered when the distress was accompanied by and resulted from a physical injury caused
by a direct impact to the plaintiff.
Shuamber v. Henderson, 579 N.E.2d 452, 454 (Ind. 1991)
.
To recover under the rule, the plaintiff was required to prove that the mental injury was the
natural and direct result of the physical injury. Id.
Then, in Shuamber, the court modified the traditional rule and held:
[When a plaintiff] sustains a direct impact by the negligence of another and by
virtue of that direct involvement sustains an emotional trauma which is serious
in nature and of a kind and extent normally expected to occur in a reasonable
person, . . . such a plaintiff is entitled to maintain an action to recover for that
emotional trauma without regard to whether the emotional trauma arises out
of or accompanies any physical injury to the plaintiff.
Id. at 456; Gorman v. I & M Elec. Co., 641 N.E.2d 1288, 1290 (Ind. Ct. App. 1994), trans.
denied. The modified impact rule maintains the requirement that the plaintiff demonstrate
that she suffered some direct physical impact as a result of the defendant's negligence.
However, the rule no longer requires a plaintiff to show that her emotional distress "arises
out of or accompanies any physical injury." Id.
Here, Holloway contends that eating a portion of the food that had been cooked with
a worm is a direct physical impact under the modified impact rule.
Under these
circumstances, we agree. Although the worm was not submitted as evidence or made a part
of the record, the parties do not dispute, for the purposes of the summary judgment motion,
that a worm was cooked and served to Holloway in her meal. Had Holloway discovered the
worm before she began eating, there would have been no direct impact under the modified
impact rule.
See Gorman, 641 N.E.2d at 1291 (allowing plaintiff to recover for fear of injury
that did not occur, but might have happened, would effectively abolish the impact rule).
However, Holloway testified that she had consumed
"over half of [her] whole dinner" before
she observed the worm fall from her fork. Thus, Holloway ingested food in which the worm
had been cooked. We conclude that Holloway sustained a direct impact as required by
Indiana's modified impact rule.
Contrary to Bob Evans's and Norpac's assertion, Holloway need not present evidence
that the food she consumed caused her to vomit or contributed to her physical illness in any
way. Rather, under the modified rule, Holloway need only show that she experienced a
direct impact and then suffered emotional trauma as a result of that impact. See J.L. v.
Mortell, 633 N.E.2d 300, 304 (Ind. Ct. App. 1994) (under modified rule, plaintiff who had
suffered direct impact when therapist performed vaginal massage on her was entitled to
maintain an action to recover for emotional trauma without regard to whether trauma arose
out of or accompanied any physical injury), trans. denied. We have already determined that
Holloway sustained a direct impact by consuming food in which the worm had been cooked.
Further, there is designated evidence to support Holloway's contention that she experienced
emotional trauma from that impact.See footnote
4
Thus, we conclude that the trial court erred when it
granted Bob Evans's and Norpac's motion for summary judgment.
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