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

2023 Ohio 3901
CourtOhio Court of Appeals
DecidedOctober 27, 2023
DocketC-230099
StatusPublished
Cited by3 cases

This text of 2023 Ohio 3901 (Goomi v. H&E Ent., L.L.C.) 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
Goomi v. H&E Ent., L.L.C., 2023 Ohio 3901 (Ohio Ct. App. 2023).

Opinion

[Cite as Goomi v. H&E Ent., L.L.C., 2023-Ohio-3901.]

IN THE COURT OF APPEALS FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

NIV GOOMAI, : APPEAL NO. C-230099 TRIAL NO. A-1902101 and : O P I N I O N. BAR HAJBI, :

Plaintiffs-Appellants, :

vs. :

H&E ENTERPRISE, LLC, :

and :

AVI OHAD, :

Defendants-Appellees. :

Civil Appeal From: Hamilton County Court of Common Pleas

Judgment Appealed From Is: Reversed and Cause Remanded

Date of Judgment Entry on Appeal: October 27, 2023

Manley Burke, LPA, Ilana L. Linder and Emily Cooney Couch, for Plaintiffs- Appellants,

Gary F. Franke Co., LPA, Michael D. O’Neill and Gary F. Franke, for Defendants- Appellees. OHIO FIRST DISTRICT COURT OF APPEALS

KINSLEY, Judge.

{¶1} This case calls upon us to clarify the meaning of the term “prevailing

party” in a section of the Ohio Deceptive Trade Practices Act (“DTPA”) that permits

awards of attorney fees. For the reasons we describe in this opinion, we hold that a

party prevails on a DTPA claim when the finder of fact determines the statute has been

violated, regardless of whether a damages amount is awarded to remedy the violation.

{¶2} This question arises because a jury found in favor of plaintiffs-

appellants Niv Goomai and Bar Hajbi (collectively “Goomai”) on their claim that

defendants-appellees H&E Enterprise, LLC, and Avi Ohad (collectively “H&E”)

violated the DTPA, but the trial court denied statutorily-available attorney fees on the

basis that Goomai did not prevail on the claim. At trial, the jury considered three

claims against H&E: (1) breach of contract, (2) fraudulent misrepresentation, and (3)

a DTPA violation. The jury found in Goomai’s favor on the breach of contract and

DTPA claims, but only awarded damages on the breach of contract claim. Since there

were no damages awarded on the DTPA claim, the trial court held Goomai did not

prevail and denied attorney fees as a result.

{¶3} In a single assignment of error, Goomai argues that the trial court erred

by failing to properly interpret and apply the DTPA attorney fees provision found in

R.C. 4165.03(B). We agree with Goomai, reverse the decision of the trial court, and

remand the matter to the trial court to determine the amount of attorney fees Goomai

is owed.

I. Factual and Procedural Background

{¶4} In October 2017, with the help of Ohad, Goomai purchased a property

in the Camp Washington neighborhood of Cincinnati. The two entered into an

2 OHIO FIRST DISTRICT COURT OF APPEALS

agreement that Ohad and H&E would renovate the Camp Washington property for

$50,000. The project was to be completed by January 2018. But numerous problems

prohibited Ohad and H&E from delivering on their promises. Ohad initially failed to

disclose that he had not obtained the necessary license to conduct the renovation.

Ohad also failed to obtain the proper work permits from the city before the renovation

work began, and this caused further delay to the project.

{¶5} In January 2019, approximately a year after the renovation should have

been completed, Ohad told Goomai that he had only now obtained the necessary

permits and that the renovation could continue. But this was untrue. Ultimately, the

renovation project never materialized, and H&E did not deliver on the promised

property upgrades.

{¶6} In May 2019, Goomai sold the property for $50,000 at a loss on his

investment. He then sued H&E.

{¶7} Goomai initially raised nine claims against H&E, but by the time of trial,

his claims had been reduced to three: breach of contract, fraudulent

misrepresentation, and violation of the DTPA. H&E also counterclaimed against

Goomai for breach of contract. Only the DTPA claim permitted the recovery of

statutory attorney fees if Goomai prevailed. See R.C. 4165.03(B). But the jury received

no instructions about the applicability of the attorney fees provision, nor the

implications of its allocation of damages should it award no damage on the DTPA

claim.

{¶8} Following trial, the jury found that H&E breached its contract with

Goomai and that H&E violated the DTPA. It found against Goomai on his fraudulent

misrepresentation claim and against H&E on its counterclaim. It awarded

3 OHIO FIRST DISTRICT COURT OF APPEALS

$30,604.09 in damages on the breach of contract claim and no damages on the DTPA

{¶9} Goomai then moved for an award of attorney fees under R.C.

4165.03(B), the DTPA’s fee-shifting provision. The trial court held an evidentiary

hearing on the motion, at which both sides put forth expert testimony regarding the

reasonableness of Goomai’s requested fees. Following the hearing, the trial court

denied the motion for attorney fees in its entirety on the basis that Goomai was not a

prevailing party within the meaning of the DTPA, because the jury did not award

damages on that claim.

{¶10} Goomai timely appealed.

II. DTPA Attorney Fees

{¶11} In a single assignment of error, Goomai challenges the trial court’s

denial of his motion for attorney fees under R.C. 4165.03(B). He argues that he was a

prevailing party under the DTPA by virtue of the jury’s verdict finding that H&E

violated the DTPA. Consistent with the trial court’s determination, H&E argues that,

to be a prevailing party under R.C. 4165.03(B), a party must obtain not only a

judgment in its favor, but also a remedy. This is a question of first impression in Ohio

courts.

A. Standard of Review

{¶12} To begin, we resolve a dispute between the parties about the standard

of review. Goomai argues that the trial court’s application of the prevailing party

standard in R.C. 4165.03(B) presents a question of statutory construction that we

review de novo. See, e.g., State ex rel. Herman v. Klopfleisch, 72 Ohio St.3d 581, 584,

651 N.E.2d 995 (1995). H&E argues that decisions regarding attorney fees are within

4 OHIO FIRST DISTRICT COURT OF APPEALS

the discretion of the trial court and that our review is limited to whether the court

below abused its discretion. See, e.g., Bittner v. Tri Cty. Toyota, Inc., 58 Ohio St.3d

143, 146, 569 N.E.2d 464 (1991).

{¶13} We agree with Goomai. The question presented in this case does not

concern the amount of attorney fees imposed by the trial court, but rather the

applicability of a statutory fee-shifting provision. Were the former at issue, we would

defer to the trial court and review its decision only for an abuse of discretion. But given

the need to interpret whether the statute applies at all, and if so why, we believe this

case triggers the more robust investigation of a statute’s intent that de novo review

requires. See, e.g., Elliot v. Durrani, 171 Ohio St.3d 213, 2022-Ohio-4190, ___ N.E.3d

___, ¶ 8. We therefore apply de novo review in answering the question of whether

Goomai is a prevailing party under R.C. 4165.03(B).

B. Prevailing Party Status under R.C. 4165.03(B)

{¶14} The DTPA, codified at R.C. 4165.03(B), contains the following attorney

fees provision:

The court may award in accordance with this division reasonable

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