Goomai v. H&E Ent., L.L.C.

2024 Ohio 5711
CourtOhio Supreme Court
DecidedDecember 9, 2024
Docket2023-1541
StatusPublished
Cited by1 cases

This text of 2024 Ohio 5711 (Goomai v. H&E Ent., L.L.C.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goomai v. H&E Ent., L.L.C., 2024 Ohio 5711 (Ohio 2024).

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Goomai v. H&E Ent., L.L.C., Slip Opinion No. 2024-Ohio-5711.]

NOTICE This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2024-OHIO-5711 NIV GOOMAI, ET AL., APPELLEES, v. H&E ENTERPRISE, L.L.C., ET AL., APPELLANTS. [Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Goomai v. H&E Ent., L.L.C., Slip Opinion No. 2024-Ohio-5711.] Civil law—Deceptive Trade Practices Act—Attorney’s fees—A plaintiff must obtain actual damages or injunctive relief to be a prevailing party under Deceptive Trade Practices Act—Court of appeals’ judgment reversed and trial court’s judgment reinstated. (No. 2023-1541—Submitted July 10, 2024—Decided December 9, 2024.) APPEAL from the Court of Appeals for Hamilton County, No. C-230099, 2023-Ohio-3901. __________________ DEWINE, J., authored the opinion of the court, which KENNEDY, C.J., and FISCHER and DETERS, JJ., joined. BRUNNER, J., dissented, with an opinion joined by DONNELLY and STEWART, JJ. SUPREME COURT OF OHIO

DEWINE, J. {¶ 1} The Ohio Deceptive Trade Practices Act authorizes claims for actual damages and injunctive relief and allows for an award of attorney’s fees to a plaintiff who is a “prevailing party” in a lawsuit brought under the Act. R.C. 4165.03. In this case, a plaintiff pursued a claim for actual damages. A jury found that the defendants had committed a deceptive trade practice but awarded the plaintiffs $0 in damages for the violation. The question before us is whether a plaintiff who fails to recover any monetary damages or injunctive relief is a prevailing party. We conclude that for a plaintiff to be a prevailing party under the Deceptive Trade Practices Act, the plaintiff must obtain actual damages or injunctive relief. The First District Court of Appeals held otherwise, so we reverse its judgment. I. BACKGROUND {¶ 2} Niv Goomai and Bar Hajbi (collectively, “Goomai”) purchased a property in Cincinnati and contracted with H&E Enterprise, L.L.C. (“H&E”), Ohad Investment Group, and Avi Ohad to renovate the property. But as a result of several missteps, the renovations did not occur, and Goomai ultimately sold the property. {¶ 3} Goomai later sued H&E, Ohad Investment Group, and Ohad for failing to complete the renovations, asserting claims that included breach of contract, violation of the Deceptive Trade Practices Act, and fraudulent misrepresentation. The Deceptive Trade Practices Act claim sought to recover actual damages and did not include a claim for injunctive relief. {¶ 4} By the consent of the parties, a jury trial was held before a magistrate. See Civ.R. 53(C)(1)(c). The jury determined that H&E had breached its contract and awarded Goomai $30,604.09 in damages. The jury also concluded that H&E and Ohad, but not Ohad Investment Group, had “engaged in at least one of the practices considered in the deceptive trade practices act.” But it found “for the

2 January Term, 2024

Plaintiffs in the amount of $0 for damages from the deceptive trade practices.” The jury found for the defendants on the fraudulent-misrepresentation claim. {¶ 5} Following trial, Goomai filed a motion requesting attorney’s fees and costs. After briefing and a hearing, the magistrate denied the motion. The magistrate reasoned, “To qualify as a prevailing party, Plaintiff must obtain at least some relief on the merits of their claim, either through injunctive action or an enforceable judgment.” Hamilton C.P. No. A1902101 (May 19, 2022). Because the only claim on which Goomai obtained relief was the “breach of contract claim which does not statutorily allow for attorneys fees,” the magistrate declined to award fees. Id. The trial court entered judgment adopting the magistrate’s decision denying the award of attorney’s fees, and Goomai appealed to the First District. {¶ 6} The First District reversed the trial court. 2023-Ohio-3901, ¶ 34 (1st. Dist.). It held that a “prevailing party” under the Deceptive Trade Practices Act is a “party [that] obtained a judgment in its favor, regardless of whether the party obtained a remedy in furtherance of that judgment,” id. at ¶ 21. Looking to the statutory language, it reasoned that because the Act permits a prevailing defendant to recover attorney’s fees against a plaintiff who knowingly pursues a groundless claim, the term “prevailing party” necessarily encompasses a party that obtains no relief other than a judgment in its favor. Id. at ¶ 22. It also held that by indicating that a court could award attorney’s fees in “either” a suit for monetary or injunctive relief, the statute defined “attorney fees eligibility by the type of action, not by the type of remedy.” (Emphasis in original.) Id. at ¶ 23. The court of appeals also found support for its conclusion in dictionary definitions of “prevail” and “prevailing party.” Id. at ¶ 18-20, 32. In reaching its determination, the court of appeals reviewed caselaw cited by H&E and Ohad on the meaning of “prevailing party,” but it concluded that “no authority prohibits the conclusion we reach here,” id. at ¶ 31.

3 SUPREME COURT OF OHIO

{¶ 7} The First District remanded the matter “to the trial court to consider the amount of attorney fees to which Goomai is entitled under R.C. 4165.03(B).” Id. at ¶ 34. II. ANALYSIS {¶ 8} We accepted H&E and Ohad’s appeal on a proposition of law that asserts that to be a prevailing party under the Deceptive Trade Practices Act, “the party pursuing the claim must obtain an award or remedy, even if the award is only for nominal damages.” See 2024-Ohio-163. {¶ 9} Under the American rule, attorney’s fees are generally not recoverable unless authorized by a statute or contract. Nottingdale Homeownwers’ Assn., Inc. v. Darby, 33 Ohio St.3d 32, 33-34 (1987). The Deceptive Trade Practices Act is one statute that authorizes an award of fees. The Act allows a person who is likely to be damaged by a deceptive trade practice to commence a “civil action for injunctive relief.” R.C. 4165.03(A)(1). It further provides that a person who has been injured by a deceptive trade practice may commence “a civil action to recover actual damages from the person who commits the deceptive trade practice.” R.C. 4165.03(A)(2). The Act authorizes an award of attorney’s fees “to the prevailing party in either type of civil action.” R.C. 4165.03(B). The fee- shifting provision provides:

The court may award in accordance with this division reasonable attorney’s fees to the prevailing party in either type of civil action authorized by division (A) of this section. An award of attorney’s fees may be assessed against a plaintiff if the court finds that the plaintiff knew the action to be groundless. An award of attorney’s fees may be assessed against a defendant if the court finds that the defendant has willfully engaged in a trade practice listed in

4 January Term, 2024

division (A) of section 4165.02 of the Revised Code knowing it to be deceptive.

(Emphasis added.) R.C. 4165.03(B). Thus, under the statute, there are two requirements for a plaintiff to recover attorney’s fees: (1) the plaintiff must be a prevailing party, and (2) the court must find that the defendant “willfully engaged” in a trade practice violating the statute that it knew was deceptive. Our focus here is on the prevailing-party requirement.1 A.

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Goomai v. H&E Ent., L.L.C.
2024 Ohio 5711 (Ohio Supreme Court, 2024)

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Bluebook (online)
2024 Ohio 5711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goomai-v-he-ent-llc-ohio-2024.