Baaron, Inc. v. Davidson

2015 Ohio 4217
Ohio Court of Appeals·Decided October 13, 2015·No. 13CA0050·Published·Cited by 8 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF WAYNE )

BAARON, INC., dba TDP C.A. No. 13CA0050 CONTRACTING

Appellant APPEAL FROM JUDGMENT

v. ENTERED IN THE COURT OF COMMON PLEAS

NORMA DAVIDSON COUNTY OF WAYNE, OHIO CASE No. 11-CV-0460

Appellee

DECISION AND JOURNAL ENTRY Dated: October 13, 2015

HENSAL, Presiding Judge.

{¶1} Appellant, Baaron, Inc., d.b.a. TDP Contracting (“TDP”), appeals from the judgments of the Wayne County Court of Common Pleas. For the following reasons, this Court affirms in part and reverses in part.

I.

{¶2} Appellee, Norma Davidson, hired TDP to complete a remodeling project at a home she purchased in Wooster, Ohio. Mr. “T.A.” Perrine (“T.A.”) of TDP testified that, based on his initial meeting with Ms. Davidson at her home, he quoted her a price of $5,400 to renovate the bathroom, install new carpeting, replace the kitchen countertop, and paint the interior walls. According to T.A., he prepared a written estimate at their meeting that was signed by Ms. Davidson. He could not, however, produce a copy of the estimate at trial.

{¶3} After TDP began the work, the scope of the project expanded to include many additional items such as new kitchen cabinets and appliances. Ms. Davidson paid TDP a total of

$6,000. T.A. testified that he told Ms. Davidson the total price would exceed $10,000 but never discussed the entire cost of the project with her. Several months after completion of the work, TDP sent Ms. Davidson an invoice demonstrating that the full cost of the project was $30,080. Ms. Davidson does not dispute that TDP performed the work detailed on its invoice. Instead, she maintains that she told T.A. she could spend no more than $6,000 and that he continually reassured her that the additional items would fit in her budget. She further testified that their work was deficient and performed in an unworkmanlike manner.

{¶4} TDP sued Ms. Davidson for breach of contract and unjust enrichment claiming it was still owed $24,080 after applying Ms. Davidson’s $6,000 in payments. Ms. Davidson answered and asserted counterclaims for violation of the Ohio Consumer Sales Practices Act (“CSPA”), negligence, and breach of contract. After a jury trial, TDP was awarded damages of $15,895 on its unjust enrichment claim and Ms. Davidson was awarded damages of $18,000 on her CSPA claim. The jury determined that TDP committed an unconscionable act involving “gross one-sidedness” and “susceptible or unsophisticated clientele.” After a hearing, the trial court awarded Ms. Davidson treble damages in the amount of $6,315 (after offsetting the jury’s awards to each party) and attorney’s fees in the amount of $10,000. TDP has appealed asserting three assignments of error for this Court’s review.

II.

ASSIGNMENT OF ERROR I

THE TRIAL COURT ERRED IN DENYING TDP CONTRACTING’S MOTION FOR DIRECTED VERDICT/JNOV OR NEW TRIAL.

{¶5} In its first assignment of error, TDP argues that the trial court erred in denying both its motion for a directed verdict and motion for judgment notwithstanding the verdict or new trial because it was not a “supplier” as defined by the CSPA. The substance of TDP’s

argument regarding those motions is confined to whether there was sufficient evidence to demonstrate that it was a “supplier” under the CSPA as a matter of law. Accordingly, this Court will review the trial court’s decision on the motion under a de novo standard. Bennett v. Admr., Ohio Bur. of Workers’ Comp., 134 Ohio St.3d 329, 2012-Ohio-5639, ¶ 14; Schottenstein Zox & Dunn Co., L.P.A. v. Reineke, 9th Dist. Medina No. 10CA0138-M, 2011-Ohio-6201, ¶ 9.

{¶6} Since “[t]he CSPA is remedial in nature, having been designed to compensate for incomplete consumer remedies available at common law[,] * * * we must liberally construe the statute in favor of the consumer.” (Citations omitted.) Anderson v. Barclay’s Capital Real Estate, Inc., 136 Ohio St.3d 31, 2013-Ohio-1933, ¶ 9. Revised Code Section 1345.01(C) defines a “[s]upplier” as one “engaged in the business of effecting or soliciting consumer transactions, whether or not the person deals directly with the consumer.” The Ohio Supreme Court has clarified that “‘suppliers’ are those that cause a consumer transaction to happen or that seek to enter into a consumer transaction.” Anderson at ¶ 30. A “[c]onsumer transaction” is defined as “a sale * * * or other transfer of an item of goods [or] a service * * * to an individual for purposes that are primarily personal, family, or household * * *.” R.C. 1345.01(A). TDP does not dispute that its agreement with Ms. Davidson was a consumer transaction. It argues, however, that there was no evidence it engaged in the business of consumer transactions as it normally worked on only commercial jobs and Ms. Davidson’s project was its “first (and only) consumer project.”

{¶7} K. Terry Perrine (“Terry”) testified that he is the president of Baaron, Inc., a company that primarily sells industrial fasteners. TDP was formed in early 2010 as a division of Baaron, Inc. to help it get through a significant decline in its fastener business. According to Terry, his son, T.A., suggested forming TDP for the purpose for refurbishing foreclosed homes.

T.A. testified that TDP started working for another construction company, Condor, on foreclosed homes located throughout Ohio. TDP eventually took over the projects from Condor. T.A. testified that TDP worked on approximately six projects before undertaking Ms. Davidson’s renovations. Ms. Davidson testified that she was referred to TDP by her neighbor who had the company replace her countertops.

{¶8} TDP relies upon the case of Renner v. Derin Acquisition Corp., 111 Ohio App.3d 326 (8th Dist.1996) to support its argument that engaging in a single, isolated transaction does not qualify it as a “supplier” under Revised Code Section 1345.01(C). The court in Renner concluded that an attorney who sent one collection demand letter on behalf of her client was not a “supplier” under the CSPA. Renner at 337-338.

{¶9} Contrary to TDP’s representations, the evidence at trial did not establish that it worked only on commercial construction projects. There was no evidence produced at trial that its primary customers were either commercial or consumers; only that the projects involved the renovation of foreclosed homes. While one could infer from the testimony that TDP worked for banks or other companies, one could also infer that it worked for individuals who purchased the homes at a sheriff’s sale and intended to make them their personal residences. In addition, Ms. Davidson’s testimony concerning how she obtained TDP’s contact information indicates that TDP did engage in at least one other residential project involving Ms. Davidson’s neighbor.

{¶10} Upon review of the record, we conclude that, because there was evidence that TDP was a “supplier” as defined in Section 1345.01(C) of the CSPA, the trial court did not err when it denied TDP’s motions for a directed verdict, judgment notwithstanding the verdict or new trial. TDP’s first assignment of error is overruled.

ASSIGNMENT OF ERROR II

THE JURY’S VERDICT IN FAVOR OF DAVIDSON ON THE CONSUMER SALES PRACTICES ACT CLAIM WAS AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE.

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