Capital Control v. Sunrise Point, Ltd., Unpublished Decision (11-24-2004)

2004 Ohio 6309
CourtOhio Court of Appeals
DecidedNovember 24, 2004
DocketCourt of Appeals Nos. E-03-046, E-04-008, Trial Court No. 99-CV-479.
StatusUnpublished
Cited by4 cases

This text of 2004 Ohio 6309 (Capital Control v. Sunrise Point, Ltd., Unpublished Decision (11-24-2004)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Capital Control v. Sunrise Point, Ltd., Unpublished Decision (11-24-2004), 2004 Ohio 6309 (Ohio Ct. App. 2004).

Opinion

DECISION AND JUDGMENT ENTRY
{¶ 1} This is an appeal from a judgment on a verdict issued by the Erie County Court of Common Pleas in a trespass/nuisance case. Because we conclude that the trial court acted in conformity with Civ.R. 49(B) in ordering judgment on an interrogatory which conflicted with a general verdict, we affirm.

{¶ 2} Appellee Theodore Terry, through his closely held corporation, appellee Sunrise Point, Ltd., owns Sunrise Point Inn, an eight-room hotel on the southeast shore of Kelleys Island in Lake Erie. Adjacent, and slightly downgrade from appellee's hotel, is a marina and adjoining lots owned by appellant, Capital Control, Inc. Capital Control is owned by James Palladino who owns several other enterprises on Kelleys Island.

{¶ 3} On May 5, 1999, Palladino sent an employee to the lots adjacent to appellee's hotel to clear growth which was obstructing visibility on a curve of a nearby road. According to the employee, he noted the foul odor of sewage. When the employee attempted to cut the brush on the lot, his equipment became mired in black ooze.

{¶ 4} The employee contacted Palladino who eventually ordered heavy equipment onto the site to excavate the soil he believed was contaminated. After the soil was removed, Palladino had the hole partially filled with crushed limestone, then dressed with topsoil. The cost, appellant asserted, was $148,320.

{¶ 5} Appellant sued appellees, alleging trespass and nuisance. Appellant claimed that appellees had deliberately pumped raw sewage from the hotel septic system onto appellant's property. The resulting contamination, appellant maintained, was the reason for appellant's expenses in drying the lots.1 Appellees denied liability and the matter proceeded to trial before a jury.

{¶ 6} At trial, Palladino and his employee both testified to the odor and wetness of the lots at issue. Both also reported seeing a black hose extending from the septic vault on appellees' property toward appellant's land.

{¶ 7} Appellant also presented testimony from an environmental specialist who conducted a soil test in that area on June 3, 1999, finding a high count of fecal coliform bacteria. Appellant additionally offered testimony from a couple who had previously worked for appellees at the hotel. They testified that the hotel septic system had been problematic for some time.

{¶ 8} Appellee Terry testified for the defense, conceding that the hotel septic system had malfunctioned several times over the years. Appellee Terry also stated that on a few occasions, when the main pump failed, he pumped overflow through a hose. He denied, however, directing the flow onto appellant's property, although he conceded some of the effluent could have been carried there by gravity.

{¶ 9} Appellees also presented testimony from an Ohio Environmental Protection Agency inspector, who inspected appellant's property at appellant's request. The inspector was on the property only a few days after appellant's employee first reported the land was mired in stench. According to the OEPA inspector, he found no septic odor, nor did he find evidence that septic waste had been dumped there.

{¶ 10} With respect to appellant's assertion that appellees' sewage was the source of the wetness of the land, appellees presented testimony from the prior owner of the hotel who reported that in the 1970s the property was always wet. Indeed, the former owner said that, at that time, his children would go onto the property with nets to catch fish and frogs. Appellees also called a geologist with the Ohio Department of Natural Resources who brought aerial pictures of the property from 1973 and 1986 which he testified showed a pool of water on appellant's lots in 1973 and vegetation consistent with wetlands in 1986.

{¶ 11} Both Terry and Palladino testified that the two of them had engaged in other disputes over the course of a number of years.

{¶ 12} On closing, appellees pointed out that pictures of the completed remediation project introduced by appellant bore a photograph processing date of May 18, 1999, two weeks prior to the June 3, 1999 soil tests which reportedly found fecal bacteria. Appellees argued that this discrepancy brought into question the validity of the only physical evidence appellant produced to show contamination. Moreover, appellees argued, the lawsuit was nothing more than another chapter in a continuing feud between Palladino and Terry: this time an attempt by Palladino to get the court to order Terry to pay for land reclamation that needed to be done anyway.

{¶ 13} Following closing arguments, the matter was submitted to the jury on instructions relating to nuisance and trespass. During deliberations, the jury asked the court: "May we just say that Mr. Terry owes Palladino the cost of: new septic system, installation * * * material? Because Mr. Terry should have done it from the beginning." The jury also asked, "Can we award punitive damages without finding [appellees] guilty of causing damage or doing so with malice?" The court answered the first question, directing the jury to assess whatever damages it found as a dollar amount. The court responded to the second question by instructing on nominal damages.

{¶ 14} Eventually, the jury returned a general verdict in favor of appellant, but found that appellant was, "* * * entitled to `no money' ($`0') as compensatory damages." Nevertheless, in the same verdict, the jury awarded $20,000 punitive damages and attorney fees to appellant.

{¶ 15} To the accompanying interrogatories, the jury responded as follows:

{¶ 16} "(A) Do you find that the [appellees] committed a trespass or created a nuisance on [appellant's] property? `Yes.' * * * (B) If you find that the [appellees] committed a trespass or created a nuisance, did that proximately cause any damage to [appellant]? `Yes.' * * * (C) Do you find by clear and convincing evidence that [appellant] suffered actual damages and that [appellees] acted with actual malice? `No.'"

{¶ 17} On receiving the verdict, the court dismissed the jury and ordered a hearing on whether or how to enter judgment on the verdict. Following the hearing, the trial court concluded that the jury had found that appellant suffered no damages and that, while appellees had been a bad neighbor by not fixing its septic system, they had not acted maliciously. Absent malice or damages, the trial court found, punitive damages and attorney fees were unwarranted. On these findings, the court entered judgment for appellant "for no damages and costs."

{¶ 18} From this judgment, appellant now brings this appeal, setting forth the following five assignments of error:

{¶ 19} "First assignment of error: The trial court erred in failing to award Capital Control one hundred forty-eight thousand three hundred twenty dollars in compensatory damages.

{¶ 20} "Second assignment of error: The trial court erred in failing to award capital control nominal damages.

{¶ 21} "Third assignment of error: The trial court erred in failing to award Capital Control twenty thousand dollars in punitive damages, plus attorneys' fees, in accordance with the jury's verdict.

{¶ 22}

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Bluebook (online)
2004 Ohio 6309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-control-v-sunrise-point-ltd-unpublished-decision-11-24-2004-ohioctapp-2004.