Gale v. Pattie Group, Inc.

2016 Ohio 5233
Ohio Court of Appeals·Decided August 4, 2016·No. 103336 & 103368·Published

Opinion

Court of Appeals of Ohio

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION Nos. 103336 and 103368

BRIAN GALE, ET AL.

PLAINTIFFS-APPELLANTS/

CROSS-APPELLEES

vs.

PATTIE GROUP, INC.

DEFENDANT-APPELLEE/

CROSS-APPELLANT

JUDGMENT:

AFFIRMED IN PART, REVERSED IN PART, AND REMANDED

Civil Appeals from the

Cuyahoga County Court of Common Pleas Case No. CV-14-824827

BEFORE: Boyle, J., Jones, A.J., and Kilbane, J.

RELEASED AND JOURNALIZED: August 4, 2016

ATTORNEY FOR APPELLANTS/CROSS-APPELLEES

David Lavey 8748 Brecksville Road Suite 218 Brecksville, Ohio 44141

ATTORNEY FOR APPELLEE/CROSS-APPELLANT

Kimberlee J. Kmetz Kmetz Law, L.L.C. 3855 Starr Centre Drive Suite A Canfield, Ohio 44406

David M. King Schraff & King Co., L.P.A. 2802 S.O.M. Center Road Suite 200 Willoughby, Ohio 44094

MARY J. BOYLE, J.:

{¶1} In this consolidated appeal, Brian and Kelly Gale (collectively the “Gales”)

appeal the trial court’s judgment denying their motion for attorney fees and statutory damages under R.C. 1345.09(B) and (F) after a jury found in their favor on two of their claims against a landscaping company, Pattie Group, Inc. (“Pattie Group”). They raise two assignments of error for our review:

1. The trial court erred when it denied [the Gales’] motion for attorney fees under R.C. 1345.09(F) without conducting a hearing, indeed, before [the Gales’] even filed their brief setting forth the law and facts.

2. The trial court erred when it failed to award [the Gales] damages mandated by R.C. 1345.09(B) without conducting a hearing, indeed, before [the Gales] even filed their brief setting forth the law and facts.

{¶2} Pattie Group appeals the trial court’s judgment denying its motion for judgment notwithstanding the verdict. It raises one assignment of error for our review:

The trial court erred in denying [Pattie Group’s] motion for judgment notwithstanding the verdict on all claims brought by [the Gales] or on the claims of invalid lien in violation of the Consumer Sales Practices Act because [the Gales] lacked standing to bring those claims since they were not the owners of real property at issue.

{¶3} After review, we find merit to the Gales’ second assignment of error, and agree that the trial court should have awarded them $200 in statutory damages under R.C. 1345.09(B). We find no merit, however, to the Gales’ argument regarding attorney fees or to Pattie Group’s argument that the Gales lacked standing. Therefore, we affirm in part and reverse in part. I. Procedural History and Factual Background

{¶4} In April 2013, the Gales contracted Pattie Group to construct an outdoor fireplace on their patio, to make certain repairs to their patio and their outdoor pond, and for “grading, lawn installation, drainage, irrigation, and landscaping.”

{¶5} In September 2013, Pattie Group filed a mechanic’s lien against the Gales’

home in the amount of $15,103.

{¶6} In April 2014, the Gales filed a complaint against Pattie Group for breach of contract, slander of title, quiet title (requesting an invalid lien be removed and money damages), and violations of the Consumer Sales Practices Act (“CSPA”) for filing the invalid lien. The Gales alleged that Pattie Group failed to complete all of the work under the contract, and that the work Pattie Group did complete was faulty and not completed on time. The Gales further alleged that the mechanic’s lien was fraudulent because they did not owe Pattie Group the amount of the lien, and because the lien was untimely.

{¶7} Pattie Group answered the Gales’ complaint and filed several counterclaims, including breach of contract and unjust enrichment, asserting that it performed all work under the contract and that the Gales failed to pay Pattie Group what they owed under the contract. Pattie Group further sought a declaratory judgment that the lien was valid.

{¶8} After a week-long trial, the jury found in favor of the Gales on their invalid lien claim and their claim alleging that Pattie Group violated the CSPA for filing an invalid mechanic’s lien. The jury found in favor of Pattie Group on the Gales’ breach of contract and slander of title claims, and found in favor of Pattie Group on its breach of contract claim.

{¶9} The jury did not award the Gales any damages on their claims. The jury awarded Pattie Group $300 on its breach of contract claim.

{¶10} On April 23, 2015 (one day after the trial ended), the Gales filed a motion for “attorney fees and other costs and damages awardable under the Ohio [CSPA] based upon the jury’s verdict finding in favor of the plaintiffs on their CSPA claim.” In their motion, the Gales requested a hearing “at which they [would] present their evidence of fees and costs.” They further explained that they would fully brief the court with “appropriate legal and evidentiary citations * * * after final billings on [the] case [had] been prepared and received.”

{¶11} The trial court journalized the jury’s verdict four days later, on April 27, 2015. The trial court included the following order in its judgment: “Each party to bear their own costs and attorney fees. Court cost assessed as each their own.”

{¶12} On April 30, 2015, the Gales filed their “brief in support of motion for fees, costs, and other relief.” The Gales requested attorney fees in the amount of $17,280, as well as other litigation costs amounting to approximately $1,000. The Gales further sought statutory damages under the CSPA, asserting that they were entitled to $200 in mandatory statutory damages for proving that Pattie Group knowingly filed an invalid lien under the CSPA. The Gales requested an evidentiary hearing, or in the alternative, stated that they would produce a brief with such evidence if the court preferred to hear the matter on the briefs.

{¶13} On May 15, 2015, Pattie Group moved for judgment notwithstanding the verdict, asserting that the Gales lacked standing to bring the suit against Pattie Group because the Kelly M. Gale Trust owned the property, not the Gales. The trial court denied Pattie Group’s motion on July 6, 2015.

{¶14} On August 5, 2015, the trial court issued a judgment, upon the Gales’

request, for the clerk of courts to memorialize the jury’s verdict that the lien was invalid. In the judgment, the trial court restated verbatim what it had journalized on April 27, 2015, and ordered that the Gales’ request to memorialize the jury’s verdict was moot. It then added the following language relevant to the Gales’ request for attorney fees:

Prior to entry of judgment, plaintiffs requested an award of their fees and costs. Their request was denied by entry of judgment as inconsistent with the jury’s express determination, made at plaintiffs’ direction, that plaintiffs were not entitled to attorneys’ fees. After entry of judgment, defendant sought judgment notwithstanding the verdict, which was similarly denied.

{¶15} The Gales filed a notice of appeal on August 5, 2015 (appealing the trial court’s April 27, 2015, and August 5, 2015 judgments). Pattie Group appealed the trial court’s judgment denying its motion notwithstanding the judgment. This court subsequently remanded the case for clarification of the trial court’s judgments.

{¶16} On remand, the trial court issued the following judgment:

Order of clarification: As reflected in the docket, plaintiffs filed a motion for attorney fees on April 23, 2015. The court, having conducted all of the proceedings including settlement negotiations, having heard all of the evidence at trial, and having reviewed the motion received via electronic filing on April 23, 2015, entered judgment on April 27, 2015 consistent with the jury’s finding that plaintiffs were not entitled to recover their attorney’s fees.

II. Standing to Sue

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Gale v. Pattie Group, Inc., 2016 Ohio 5233 (Ohio Ct. App. 2016).

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