Berry v. Lupica

2011 Ohio 3462
CourtOhio Court of Appeals
DecidedJuly 14, 2011
Docket95393
StatusPublished
Cited by2 cases

This text of 2011 Ohio 3462 (Berry v. Lupica) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berry v. Lupica, 2011 Ohio 3462 (Ohio Ct. App. 2011).

Opinion

[Cite as Berry v. Lupica, 2011-Ohio-3462.]

[Vacated opinion. Please see 2011-Ohio-5381.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 95393

ROBERT BERRY

PLAINTIFF-APPELLANT

vs.

JAMES LUPICA, ET AL. DEFENDANTS-APPELLEES

JUDGMENT: AFFIRMED, AS MODIFIED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-613669

BEFORE: Stewart, J., Blackmon, P.J., and Celebrezze, J. RELEASED AND JOURNALIZED: July 14, 2011

ATTORNEYS FOR APPELLANT

Christopher M. DeVito Alexander J. Kipp Morganstern, MacAdams & DeVito Co., LPA 623 West St. Clair Avenue Cleveland, OH 44113-1204

ATTORNEYS FOR APPELLEES

Kris H. Treu William H. Falin Michael J. Kahlenberg Moscarino & Treu, LLP The Hanna Building, Suite 630 1422 Euclid Avenue Cleveland, OH 44115

MELODY J. STEWART, J.:

{¶ 1} Plaintiff-appellant, Robert Berry, brought suit against his supervisor,

defendant-appellee, James Lupica, and their employer, defendant-appellee Wachovia

Securities, alleging that Wachovia breached an agreement to pay the full amount of an

arbitration award between Berry and his former employer, Merrill Lynch. Wachovia

counterclaimed, alleging that Berry had breached an agreement that he would compensate

Wachovia for certain amounts that it advanced to Merrill Lynch in partial satisfaction of

Berry’s obligation under the arbitration award. A jury ruled against Berry on all of his claims and ruled in favor of Wachovia on its counterclaim. Berry unsuccessfully filed

post-judgment motions seeking a remittitur, a new trial, and judgment notwithstanding the

verdict. In this appeal, he offers overlapping arguments that he was neither legally, nor

factually, obligated to repay the amounts that Wachovia advanced to Merrill Lynch and

that the jury’s award of damages beyond that specifically requested by Wachovia

constituted grounds for a new trial.

I

{¶ 2} Berry worked for Merrill Lynch as a financial advisor before being hired by

Wachovia (he was actually hired by First Union Corporation, which was taken over by

Wachovia, which in turn was taken over by Wells Fargo, but the parties have agreed to

use the name “Wachovia” in this litigation, so we use it too). The terms of Berry’s

employment agreement with Merrill Lynch contained a noncompetition agreement.

When Berry started working for Wachovia, Merrill Lynch claimed that he did so in

violation of the noncompetition agreement; Berry claimed that Merrill Lynch made

defamatory statements about him regarding the violation of the noncompetition

agreement. Berry and Merrill Lynch took their dispute to binding arbitration before the

National Association of Securities Dealers (“NASD”). An NASD panel ruled in favor of

Merrill Lynch on its claims against Berry and awarded it $250,000. The NASD panel

also found for Berry on his defamation claim against Merrill Lynch and awarded him

$125,000 in damages. {¶ 3} Wachovia paid Merrill Lynch the $250,000 judgment against Berry. Two

days later, Merrill Lynch issued a check to Berry for $125,000. Berry endorsed the

Merrill Lynch check and gave it to his Wachovia branch manager with a note saying:

{¶ 4} “As we discussed attached is the award I received from Merrill Lynch.

Please place this check on deposit with First Union Corporation to offset the interest due

on our contract. The $125,000 is to be returned on demand. Thank you for your

consideration and cooperation.”

{¶ 5} The branch manager forwarded the check to the Wachovia legal department

and the check was deposited into a Wachovia account dedicated to legal settlements.

Berry later demanded to have the check returned to him, but Wachovia refused to return

it.

{¶ 6} Berry brought this action raising a number of claims that collectively

accused Wachovia of breaching the agreement to hold Berry’s Merrill Lynch proceeds

and produce them on demand. Wachovia counterclaimed, arguing that Berry breached a

settlement agreement under which he would set-off the $250,000 Wachovia paid to

Merrill Lynch by delivering to Wachovia the $125,000 he received from Merrill Lynch —

Wachovia would pay the remaining $125,000 of the arbitration award as a courtesy to

Berry. It claimed as damages the attorney fees it expended or would be required to

expend in enforcing the settlement.

{¶ 7} At trial, the issue was whether the parties had an agreement that the

proceeds from the $125,000 Merrill Lynch award to Berry should be applied as a set-off for the $250,000 that Wachovia paid to Merrill Lynch. Berry claimed that at the time he

was hired, Wachovia not only represented to him that it would pay for any legal fees

associated with the Merrill Lynch arbitration, but that it would pay any damage award.

Berry also offered testimony that the financial industry standard was for a current

employer to make a transferring broker like Berry whole from any claims asserted by a

former employer. Wachovia conceded that it agreed to pay for Berry’s legal defense in

the arbitration, but denied that it agreed, prior to the arbitration, to pay any damage award

from the arbitration. It presented witnesses who testified that Wachovia and Berry

agreed post-arbitration that Wachovia would pay the entire $250,000 Merrill Lynch

judgment on the condition that Berry pay over to Wachovia his $125,000. Wachovia

thus said it agreed to pay a net total of $125,000, an amount that it had been willing to pay

to settle the arbitration. The jury found against Berry on all his claims. The jury

found in favor of Wachovia on its counterclaim and awarded $432,000 in damages for the

attorney fees Wachovia expended in enforcing the settlement agreement. Berry filed a

motion for judgment notwithstanding the verdict and a new trial, arguing that the verdict

was against the manifest weight of the evidence because the $432,000 damage award

exceeded the $130,000 that Wachovia claimed as damages. The excessive award, Berry

argued, showed that the jury’s verdict had been the product of passion or prejudice.

Berry also asked the court for remittitur. All post-judgment motions were denied.

II {¶ 8} Berry argues that the court erred both by failing to direct a verdict and grant

judgment notwithstanding the verdict on Wachovia’s counterclaim because it was barred

by the statutes of fraud and limitations.

A

{¶ 9} The court must issue a directed verdict when, “after construing the evidence

most strongly in favor of the party against whom the motion is directed, [the court] finds

that upon any determinative issue reasonable minds could come to but one conclusion

upon the evidence submitted and that conclusion is adverse to such party ***.” See

Civ.R. 50(A)(4). This is the same legal standard applied to motions for judgment

notwithstanding the verdict, Ayers v. Woodard (1957), 166 Ohio St. 138, 140 N.E.2d 401,

and tests the legal sufficiency of the evidence. This is a question of law that does not

require the reviewing court to weigh the evidence or test the credibility of witnesses. See

Ruta v. Breckenridge-Remy Co. (1982), 69 Ohio St.2d 66, 430 N.E.2d 935.

B

{¶ 10} The statute of frauds is set forth in R.C. 1335.05 and states: “No action

shall be brought whereby to charge the defendant, upon a special promise, to answer for

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Related

Berry v. Lupica
2011 Ohio 5381 (Ohio Court of Appeals, 2011)
Hippely v. Lincoln Elec. Holdings, Inc.
2011 Ohio 5274 (Ohio Court of Appeals, 2011)

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2011 Ohio 3462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berry-v-lupica-ohioctapp-2011.