Clifton v. Johnson

2016 Ohio 8120
Ohio Court of Appeals·Decided December 6, 2016·No. 15CA30·Published

Opinion

IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT PICKAWAY COUNTY

RONALD L. CLIFTON, et al., :

: Case No. 15CA30

Plaintiffs-Appellees, :

:

vs. : DECISION AND JUDGMENT : ENTRY

PEARL K. JOHNSON, et al., :

:

Defendants-Appellants. : Released: 12/06/16

APPEARANCES:

James R. Kingsley, Kingsley Law Office, Circleville, Ohio, for Appellants.

Michael N. Beekhuizen, Carpenter Lipps & Leland LLP, Columbus, Ohio, for Appellees.

McFarland, J.

{¶1} This is an appeal from a Pickaway County Common Pleas Court grant of summary judgment in favor of Appellees, Ronald L. Clifton and Robert W. Hamman, and against Appellants, Pearl K. Johnson, as well as Johnson's corporation, American Eagle Air, Inc. This case is before this Court for a second time, following our dismissal of Appellants' first direct appeal for lack of a final appealable order. Ronald L. Clifton, et al. v. Pearl K. Johnson, et al., 4th Dist. Pickaway No. 14CA22, 2015-Ohio-4246. Presently on appeal, Appellants contend that 1) the trial court committed

prejudicial error when it granted Appellees summary judgment upon unjust enrichment; 2) the trial court committed prejudicial error in awarding damages; and 3) the trial court committed prejudicial error when it did not dismiss the case with prejudice. Because we conclude that genuine issues of material fact exist which preclude summary judgment, we further conclude the trial court erred in granting summary judgment in favor of Appellees. Accordingly, the judgment of the trial court is reversed and this matter is remanded for further proceedings consistent with this opinion.

FACTS

{¶2} Here, Appellees, Ronald F. Clifton and Robert W. Hamman, filed a complaint against Appellants, Pearl K. Johnson and Johnson's corporation, American Eagle Air, Inc., alleging the formation of a partnership and that a joint venture was agreed upon whereby Clifton, Hamman and Johnson, using Clifton's plane, Hamman's camera equipment and Johnson's piloting skills, would jointly provide aerial imaging services for portions of the ATEX pipeline that was being routed through Ohio. Appellees' complaint contained claims for breach of contract and, alternatively, unjust enrichment, alleging that Johnson and American Eagle Air, Inc. collected more than $200,000 for work that was jointly performed by Appellees and Appellant Johnson, and that Appellants failed to pay

Appellees for work the parties mutually performed. Specifically, Appellees alleged that they had each only been paid $5,000.00 and that Appellants kept the rest of the money.

{¶3} Appellees subsequently moved the court for summary judgment on the unjust enrichment claim alone, reserving the right to proceed on the breach of contract claim and alternatively the unjust enrichment claim at trial, in the event the motion for summary judgment was denied. Appellants opposed the motion, arguing, among other things, that the court could not grant summary judgment on the equitable remedy of unjust enrichment when a breach of contract claim covering the same subject matter had been pled and was still pending. Appellants also argued that the work performed by the parties jointly was rejected by ATEX and that the “prototype” that was eventually accepted by ATEX was created using a camera, aircraft and personnel from MANN Mapping, a corporation completely unrelated to Appellees.

{¶4} Over the objection of Appellants, however, the trial court granted summary judgment in favor of Appellees on their unjust enrichment claim, and awarded them a joint share of the profits, in the amount of $68,282.00 each, for a total judgment of $136,564.00. Appellants filed a direct appeal from the trial court's decision; however, we dismissed the

appeal for lack of a final appealable order, based upon the fact that the breach of contract claim remained pending, and thus all of the claims had not been resolved.

{¶5} Appellants filed a motion for reconsideration asking this Court to reconsider our decision that the trial court's order was not final and appealable, which this Court ultimately denied. Meanwhile, Appellees filed a motion for voluntary dismissal of their breach of contract claim and motion for entry of final judgment in the trial court. The trial court issued a decision and entry on October 29, 2015 dismissing Appellees' breach of contract claim with prejudice. On November, 12, 2015, the trial court went on to issue a final judgment entry entering final judgment in favor of Appellees on their unjust enrichment claim, determining damages in the same amount as before, and finding no just reason for delay. It is from these orders that Appellants now bring their timely appeal, setting forth three assignments of error for our review.

ASSIGNMENTS OF ERROR

“I. THE TRIAL COURT COMMITTED PREJUDICIAL ERROR WHEN IT GRANTED THE PLAINTIFF'S [SIC] SUMMARY JUDGMENT FOR UNJUST ENRICHMENT.

II. THE TRIAL COURT COMMITTED PREJUDICIAL ERROR IN ITS AWARD OF DAMAGES.

III. THE TRIAL COURT COMMITTED PREJUDICIAL ERROR WHEN IT DID NOT DISMISS THE CASE WITH PREJUDICE.”

ASSIGNMENT OF ERROR I

{¶6} In their first assignment of error, Appellants contend that the trial court committed prejudicial error when it granted Appellees summary judgment based upon unjust enrichment. Appellants primarily argue that it was error to grant summary judgment based upon a claim of unjust enrichment when a claim for breach of contract had been previously pled, even though the breach of contract claim was subsequently dismissed with prejudice. Appellants further contend that even if summary judgment was not barred procedurally, it should not have been granted, as genuine issues of material fact exist which should have precluded summary judgment.

{¶7} Initially we note that, contrary to Appellants' argument, because the claim for breach of contract was dismissed with prejudice below, post- appeal, and because unjust enrichment is an alternative claim to breach of contract, we find no error in the trial court considering and ruling on Appellee's motion for summary judgment based upon unjust enrichment. As set forth in our decision issued in connection with Appellants' first direct appeal of this matter, a review of the record indicates that Appellees filed a complaint alleging the formation of a joint venture that contained claims based upon breach of contract and alternatively, unjust enrichment. Rather

than seeking a judgment based upon their primary claim, breach of contract, Appellees filed a motion for summary judgment on their alternative claim only, unjust enrichment. In moving the trial court for summary judgment based upon unjust enrichment only, Appellees made an express reservation in their motion as follows:

"Breach of contract and unjust enrichment are alternative remedies. In the event this Court denies this motion, Plaintiffs reserve the right to present both their breach of contract and unjust enrichment claims, in the alternative, at the trial of this matter."

{¶8} Thus, Appellees did not dismiss their breach of contract claim when they moved for summary judgment on unjust enrichment, nor had the trial court ruled on the pending claim. Instead, the legal claim for breach of contract had not been resolved when the trial court considered the equitable remedy of unjust enrichment. In our previous consideration of this matter, we stated that we agreed "with Appellants' argument that the trial court erred in granting summary judgment based upon unjust enrichment while a claim for breach of contract, covering the same subject matter, was still pending and unresolved," however, we dismissed the appeal for lack of a final

Pickaway App. No. 15CA30 7 appealable order because the breach of contract claim remained unresolved and pending.1

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