Business & Insurance Litigation Newsletter for Indiana

Subcontractor Cannot Recover from Owner Absent a Relationship

In Savoree v. Industrial Contracting and Erecting, Inc., 789 N.E.2d 1013 (Ind. Ct. App. 2003), a subcontractor sued the property owner under the theory of unjust enrichment seeking payment after the general contractor failed to pay the sub for work performed on the owner's property. The sub had dealt exclusively with the general and never had contact with the owner until the sub completed its work and sought payment. The Court of Appeals denied recovery to the sub because the owner had done nothing wrong and did nothing to induce the sub to perform. The Court recognized the outcome was harsh, but absent some wrongful conduct by the owner, the sub could not recover.