Goldfarb v. the Robb Report, Inc.

655 N.E.2d 211, 101 Ohio App. 3d 134, 1995 Ohio App. LEXIS 478
CourtOhio Court of Appeals
DecidedFebruary 7, 1995
DocketNos. 94APE04-560, 94APE05-678.
StatusPublished
Cited by27 cases

This text of 655 N.E.2d 211 (Goldfarb v. the Robb Report, Inc.) 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
Goldfarb v. the Robb Report, Inc., 655 N.E.2d 211, 101 Ohio App. 3d 134, 1995 Ohio App. LEXIS 478 (Ohio Ct. App. 1995).

Opinion

Peggy Bryant, Judge.

Defendant-appellant, The Robb Report, Inc., appeals from a judgment of the Franklin County Court of Common Pleas entered in favor of plaintiff-appellee, Lawrence J. Goldfarb, in accordance with the jury’s verdict. Plaintiff cross-appeals.

The relationship between the parties has a tortured history which began with plaintiffs purchase of a sales franchise from defendant in 1982. The franchise agreement granted plaintiff the exclusive right to operate a business within the state of Ohio under the trade name “The Robb Report,” and the right to sell advertising space in defendant’s magazine, The Robb Report, on a commission basis.

Relations between plaintiff and defendant appear to have been strained from the beginning. On August 15, 1985, following a lengthy dispute over plaintiffs payment of franchise renewal fees and several other matters, defendant sent plaintiff a letter terminating his franchise. Plaintiff responded by bringing a lawsuit against defendant for declaratory and injunctive relief, and for compensatory and punitive damages, alleging that defendant breached the franchise agreement, diminished the value of plaintiffs franchise and tortiously interfered with plaintiffs business relationships. Defendant filed a counterclaim alleging that plaintiff had breached the franchise agreement. On August 29, 1985, the trial court issued a preliminary injunction requiring defendant to regard plaintiff as a franchisee in good standing pending the outcome of the case.

In September 1986, the case was tried before a referee. Apparently as a result of the referee’s mistaken belief that the case had been settled, the referee did not issue a report until May 1, 1990. On March 7, 1991, the trial court issued a-decision adopting the referee’s report, vacating the preliminary injunction and holding that plaintiff had proven only his claim for breach of contract; that defendant owed plaintiff $5,790.25 in unpaid sales commissions; that plaintiff owed defendant $21,000 in unpaid franchise renewal fees; and that plaintiff was no longer a franchisee of The Robb Report. Both parties appealed.

In Goldfarb v. The Robb Report, Inc. (1991), 77 Ohio App.3d 362, 602 N.E.2d 329, we reversed the trial court’s decision in its entirety and remanded the case for a new trial. Following remand, the case was consolidated with a second action which plaintiff commenced against defendant to recover damages accruing after the September 1986 trial. Prior to trial, plaintiff amended his prayer for *138 relief to demand $178,855.06 in compensatory damages and $1,000,000 in punitive damages..

On December 16, 17, 21, and 22, 1992, plaintiffs claim for breach of contract and prayer for punitive damages, as well as defendant’s counterclaim for breach of contract, were tried to a jury; the issues of plaintiffs status as a franchisee and the amount of plaintiffs punitive damage award, if any, were left for the court’s determination on the basis of the jury’s verdict. At the close of all the evidence, the trial court overruled defendant’s motion for a directed verdict on the issue of punitive damages, subsequently instructing the jury on the parties’ respective claims for breach of contract and plaintiffs prayer for punitive damages pursuant to agreed-upon jury instructions.

The jury returned a verdict on December 23, 1992, in favor of plaintiff on his claim for breach of the franchise agreement and against defendant on its claim for breach of the franchise agreement. The jury further found defendant liable for punitive damages, and awarded plaintiff $472,843.32 in compensatory damages. On March 5, 1993, the trial court entered judgment on the verdict, reducing plaintiffs compensatory damages award to $178,855.06, the amount plaintiff sought in his amended prayer for relief. In addition, the court set a date for a hearing on the amount of plaintiffs punitive damage award, the amount of attorney fees, if any, to be awarded to plaintiff, and plaintiffs potential reinstatement as a franchisee of The Robb Report.

Subsequently, defendant moved for judgment notwithstanding the verdict, a new trial, or remittitur. On February 3, 1994, the trial court issued a decision overruling defendant’s motions and further holding that plaintiff was not entitled to an award of attorney fees or to reinstatement as a franchisee. On March 2, 1994, the trial court issued a second decision in which it declined to award plaintiff punitive damages on the grounds that the issue of punitive damages was never before the jury, but arose from the “voluntary suggestion of the jury.”

Defendant appeals, assigning the following errors:

“I. The trial court erred in denying Robb’s motion for directed verdict on the issue of Goldfarb’s punitive damages, in submitting Goldfarb’s claim for punitive damages to the jury and in denying Robb’s motion for judgment notwithstanding the verdict or for new trial on the issue of punitive damages.

“II. The jury’s verdict awarding Goldfarb punitive damages was against the manifest weight of the evidence.

“III. The trial court erred in denying Robb’s motion for new trial where the jury’s verdict was the result of passion or prejudice.

*139 “IV. The jury’s verdict awarding Goldfarb compensatory damages of $472,-843.32, subsequently reduced to $178,855.06, was against the manifest weight of the evidence.

“V. The trial court erred in overruling Robb’s motion for judgment notwithstanding the verdict or for new trial because the amount of damages which Goldfarb was awarded were excessive and appeared to have been given under the influence of passion or prejudice, there was an error in the amount of recovery, and the judgment was not sustained by the weight of the evidence.

“VI. The jury’s verdict against Robb on its counterclaim was against the manifest weight of the evidence.

“VII. The trial court erred in overruling Robb’s motion for judgment notwithstanding the verdict or for new trial on whether Robb was entitled to recover damages on its counterclaim because there was an error in the amount of recovery, and the judgment was not sustained by the weight of the evidence.

“VIII. The trial court erred in failing to order a remittur [sic].”

Plaintiff cross-appeals, assigning the following errors:

“I. The trial court erred to the prejudice of appellee/cross-appellant Goldfarb in overruling Goldfarb’s motion for reinstatement as a franchisee in good standing of The Robb Report, Inc.

“II. The trial court erred in overruling appellee/cross-appellant Goldfarb’s motion for an award of punitive damages.

“III. The trial court erred in overruling appellee/cross-appellant Goldfarb’s motion for an award of attorneys’ fees and expenses.”

Defendant’s first, second and third assignments of error and plaintiffs second assignment of error on cross-appeal will be addressed together, as they raise related questions concerning the issue of punitive damages.

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Bluebook (online)
655 N.E.2d 211, 101 Ohio App. 3d 134, 1995 Ohio App. LEXIS 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldfarb-v-the-robb-report-inc-ohioctapp-1995.