General Tire, Inc. v. Mehlfeldt, Unpublished Decision (6-23-1999)

CourtOhio Court of Appeals
DecidedJune 23, 1999
DocketC.A. No. 19269.
StatusUnpublished

This text of General Tire, Inc. v. Mehlfeldt, Unpublished Decision (6-23-1999) (General Tire, Inc. v. Mehlfeldt, Unpublished Decision (6-23-1999)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
General Tire, Inc. v. Mehlfeldt, Unpublished Decision (6-23-1999), (Ohio Ct. App. 1999).

Opinion

DECISION AND JOURNAL ENTRY
This cause was heard upon the record in the trial court. Each error assigned has been reviewed and the following disposition is made: Defendant Horst K. Mehlfeldt has appealed from two judgments of the Summit County Common Pleas Court, one that rescinded a severance agreement between defendant and plaintiff General Tire Incorporated, and one that denied defendant's motion for a new trial. Defendant has raised seven assignments of error. This Court affirms the judgment of the trial court.

I.
On January 25, 1993, defendant entered into a five-year employment contract with plaintiff. That employment contract contained a severance package ("1993 severance package"). Pursuant to the terms of the 1993 severance package, plaintiff was required to compensate defendant through monetary payments if plaintiff terminated defendant's employment without cause.

Also during 1993, plaintiff began eliminating several senior management positions to reduce costs. As part of those efforts, plaintiff decided to eliminate defendant's position and terminate his employment. Instead of providing defendant with the benefits of the 1993 severance package, plaintiff and defendant entered into negotiations to draft a new severance agreement that, according to plaintiff, would have provided defendant with a "significantly more generous" payment than the 1993 severance package would have provided. That new severance package was given in exchange for defendant's promise not to sue plaintiff on any claims related to his employment.

After several discussions, plaintiff's representative, Ross Bailey, drafted the new agreement using a standardized form. The contract was printed on a form entitled "Agreement, Release and Covenant Not to Sue." Mr. Bailey claimed that the parties had decided on a severance package that would have consisted of a lump-sum payment of $494,186 and a company car worth $22,000. According to Mr. Bailey, the new severance package was supposed to provide for that compensation. The agreement as drafted, however, failed to reflect that intention. It provided that defendant was to receive the "normal benefits" contained in the 1993 severance package, as well as "additional benefits" worth $494,186. Furthermore, that agreement did not even mention the $22,000 company car.1

Plaintiff claimed that the agreement, as drafted, contained a mistake. Plaintiff argued that defendant was to receive only $494,186 cash and the company car. Plaintiff claimed that the 1993 severance package had already been taken into account in the $494,186 figure. Mr. Bailey had made a mistake, according to plaintiff, because the "additional benefits" should not have been listed as $494,186, but should have been listed as $494,186 minus the value of the 1993 severance agreement. Plaintiff claimed that granting defendant both the 1993 severance package and the $494,186 would have provided him with a windfall of well over $250,000.

Defendant disputed that claim. Although he thought that the contract's language was odd, he believed that plaintiff intended to pay him the benefits of the 1993 severance package as well as the recently agreed-upon new severance package (consisting of a lump-sum payment of $494,186 and the company car). Defendant, therefore, demanded that plaintiff pay him both severance packages.

Plaintiff believed that either a mutual or a unilateral mistake had been made during the drafting of the contract and that the parties intended for plaintiff to pay no more than $494,186 and the company car. On April 29, 1994, plaintiff filed a complaint against defendant that requested reformation or rescission of the contract based on the mistake. Defendant filed two counterclaims that requested enforcement of the agreement as drafted and alleging abuse of process on plaintiff's part.

On March 20, 1996, the trial court determined that a mutual mistake had been made and reformed the contract. The trial court found that the parties intended that only $494,186 and the company car were to be included in the severance package. Defendant appealed to this Court. See General Tire, Inc. v. Mehlfeldt (1997), 118 Ohio App.3d 109. This Court reversed the judgment of the trial court because plaintiff failed to prove by clear and convincing evidence the existence of a mutual mistake. Id. at 115.

On remand, the trial court determined that, instead of a mutual mistake, a unilateral mistake had been made on the part of plaintiff. In its May 13, 1998, judgment, it rescinded the contract. Because that contract no longer existed, the trial court ordered that the amount paid to defendant, $494,186 and the company car, be returned to plaintiff.

On May 27, 1998, defendant filed a motion for a new trial. On August 11, 1998, the trial court denied that motion. On August 28, 1998, the trial court entered another journal entry, explaining that defendant's counterclaim had been rendered moot by its May 13, 1998, judgment, and that, consequently, defendant's counterclaim was dismissed. On September 1, 1998, defendant timely appealed to this Court.

II.
A.
The trial court erred in arriving at a finding, in theabsence of any evidence, that when [defendant] signedthe severance agreement he either knew, or should haveknown, that [Mr.] Bailey had simply made a unilateralmistake in drafting it.

Defendant has argued that the trial court improperly rescinded the new severance agreement based on Mr. Bailey's unilateral mistake because he did not know about that mistake. According to defendant, the trial court erred by making him suffer the consequences of Mr. Bailey's mistake. His arguments have essentially challenged the trial court's finding as being against the manifest weight of the evidence.

When evaluating whether a judgment is against the manifest weight of the evidence in a civil context, the standard of review is the same as that in the criminal context. Frederick v. Born (Aug. 21, 1996), Lorain App. No. 95CA006286, unreported, at 14. In determining whether a criminal conviction is against the manifest weight of the evidence:

The court, reviewing the entire record, weighs the evidence and all reasonable inferences, considers the credibility of witnesses and determines whether in resolving conflicts in the evidence, the [trier of fact] clearly lost its way and created such a manifest miscarriage of justice that the conviction must be reversed and a new trial ordered. The discretionary power to grant a new trial should be exercised only in the exceptional case in which the evidence weighs heavily against the conviction.

State v. Thompkins (1997), 78 Ohio St.3d 380, 387, citing State v.Martin (1983), 20 Ohio App.3d 172, 175; see, also State v. Otten (1986), 33 Ohio App.3d 339, 340. Accordingly, before an appellate court will reverse a judgment as against the manifest weight of the evidence in a civil context, the court must determine whether the trier of fact, in resolving evidentiary conflicts and making credibility determinations, clearly lost its way and created a manifest miscarriage of justice.

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General Tire, Inc. v. Mehlfeldt, Unpublished Decision (6-23-1999), Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-tire-inc-v-mehlfeldt-unpublished-decision-6-23-1999-ohioctapp-1999.