Detrick v. Midwest Pipe & Steel, Inc

In Detrick v. Midwest Pipe & Steel, Inc., 598 N.E.2d 1074 (Ind. Ct. App. 1992), the Court of Appeals of Indiana reached a similar conclusion, although it specifically addressed the lack of insurance as it relates to proximate cause in a negligent hiring case. In that case, Robert Shaw, an independent contractor for Midwest Trucking, Inc., killed a person after he disregarded a stop sign while consulting a road map. Id. at 1076. Neither Mr. Shaw, nor Midwest Trucking possessed an intrastate or interstate commerce operating authority permit. Id. The court addressed whether Midwest Pipe & Steel, Inc., was liable on the ground that it negligently employed Midwest Trucking and Mr. Shaw. Id. at 1081. Noting that Midwest Pipe & Steel "failed to ascertain that Midwest Trucking trucks were adequately insured or operated pursuant to appropriate intrastate or interstate operating authority," the court stated that "a lack of due care may be conceded." Id. It held, however, that "the conduct must be the proximate cause of the harm upon which a claim is based before liability may be imposed," and a "lack of permits and adequate liability insurance has no causal connection to Detrick's injury." Id. Accordingly, it affirmed the grant of summary judgment in favor of Midwest Pipe & Steel.