Gurich v. Janson, Unpublished Decision (11-17-2000)

CourtOhio Court of Appeals
DecidedNovember 17, 2000
DocketCASE NO. 99-A-0006.
StatusUnpublished

This text of Gurich v. Janson, Unpublished Decision (11-17-2000) (Gurich v. Janson, Unpublished Decision (11-17-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Gurich v. Janson, Unpublished Decision (11-17-2000), (Ohio Ct. App. 2000).

Opinions

OPINION
This is an appeal from the Ashtabula County Court of Common Pleas in which appellant, Ralph L. Janson, challenges the trial court's judgment entry overruling his motion for a new trial under Civ.R. 59(A).

A complaint was filed in the lower court by appellees, William Gurich and Marsha Gurich, on December 15, 1995. Marsha Gurich is the daughter of appellant. In their amended complaint against appellant, appellees sought enforcement of an oral agreement for the sale of a one hundred twenty-acre farm located at 796 Mechanicsville Road ("the farm") in the township of Austinburg, Ashtabula County, Ohio. The matter was tried to the trial judge on June 16 and 17, 1998. On October 27, 1998, the trial judge issued his "Entry of Opinion" and a separate judgment entry concerning the case.

In the "Entry of Opinion," the trial judge made numerous findings of fact. The trial court determined that members of appellant's family were expected to contribute labor and other services in furtherance of the interest of the family businesses titled in the name of appellant. Marsha Gurich testified that she performed services for appellant's businesses for over twenty years, working sixty to eighty hours per week for which she and her husband, William Gurich, were only paid one summer "when we worked the Perry Nuclear Power job." William Gurich also provided substantial services for appellant's businesses once again apparently for no pay except for the Perry Nuclear Power job.

The trial court further found that on October 23, 1973, appellant purchased the farm, which consisted of a farm house, some other building in a state of poor repair, and approximately one hundred twenty acres of land. Appellant paid $59,000 for the farm and took a mortgage loan for its purchase, in the amount of $40,000. From 1973 until about 1979, appellant's son, Jeff Janson ("Jeff"), resided on the property and attempted to open a dairy farm. Jeff testified that his agreement with appellant was to pay appellant $462 per month, and that these payments were made on appellant's mortgage by Jeff at the bank.

Both Marsha Gurich and Jeff believed that if they provided services for the benefit of appellant's businesses, that all of appellant's farm property someday would be transferred to them. However, the trial court specifically found that there was no specific promise as to when the property would be given to them.

In 1979, Jeff left the farm and did not assert any ownership interest in the property. Upon learning that her brother was leaving the property, Marsha Gurich sought to move to the farm and take over the duties once performed by Jeff. Appellees moved their cows to the farm in February 1979. Appellees then moved on the farm and began making monthly payments in the amount of $462 that were due on the mortgage. At that time, the farm buildings were in a state of disrepair and the farm was classified as a Class B operation. Having a Class B classification meant that milk from the cows only could be sold for the manufacture of cheese.

Between 1979 and early 1981, appellees made improvements to the farm and the buildings and were able to get a Class A milk classification because of those efforts. The upgraded classification meant that their milk could be sold for consumption, which would be more profitable than selling it to be used for making cheese.

Appellees continued operating the farm from 1981 until May 1985. During that time, they made monthly payments on the mortgage at the lending institution's office in the amount of $462. The trial court determined that there was no written agreement between the parties serving to define their status.

On April 2, 1985, a fire destroyed the home located on the farm during a period of time in which appellees were residing in it. At the time of the fire, appellant maintained a $25,000 insurance policy on the residential building, and appellees possessed a $15,000 policy on the contents of the residence. After the fire, appellant indicated to appellees that they could rebuild the home in any manner they desired. Yet, no specific promise was made concerning when it would be their home. Appellant contributed $24,900 of his insurance policy proceeds to appellees for the rebuilding of the home. Appellees contributed $20,799 of their own money for the rebuilding of the residence. Appellant knew of appellees' contribution to the home, but did not offer to pay for the full cost of construction of the new residence. The trial court also concluded that appellant told appellees they could build whatever type of home they wanted because there was a mutual understanding that the home eventually would be given to them.

Appellees made improvements to the barn and other buildings located on the farm while living on the property. However, appellant also contributed substantial time and labor to improving the property. Appellant erected a silo, provided the cement necessary to fix the barn, tiled a road ditch, drilled a well, and supplied rafters for the repair and construction of the barn.

On May 23, 1985, appellant desired to purchase another piece of property in Bristolville, Ohio ("the Bristolville property"), and took steps to refinance the mortgage note secured by the farm. Appellant borrowed $65,000. One half of that amount was used to pay off the first mortgage on the farm, while the remainder was used to finance the purchase of the Bristolville property. At the time the note and mortgage were signed for the new $65,000 loan to appellant, appellees were required by the lender to sign a promissory note obligating them to make a monthly payment on the mortgage. The lender stated that the obligation was necessary because appellees' payments were received on a regular basis, while appellant had some past difficulties in making timely payments.

At trial, appellees testified that prior to signing the note, appellant promised that if they would sign the promissory note, appellant would sign a deed and transfer the property to them when the mortgage balance was fully paid. Based on the evidence, the trial court determined that due to that promise, appellees cosigned on the promissory note and obligated themselves to pay the sum of $65,000 to the lender if appellant did not. The lower court also decided that after appellant came to live with them in 1986 due to illness, he again promised appellees that the he would sign off on the deed when the mortgage was paid in full.

The trial court further found that the evidence revealed that during the entire time that appellees were making monthly payments on the farm, from 1979 through March 1994, appellees reported the $462 payment on their income tax return as rental payments. During the same period of time, appellant did not report the $462 payment on his federal income tax return as rental income. On his tax return, appellant took the interest depreciation accrued on the mortgage loan as an expense. Appellant also paid the insurance on the property and real estate taxes.

On March 25, 1994, the final mortgage payment was made on the Ashtabula farm that secured the mortgage, which was then released. From May 23, 1985, until March 25, 1994, appellees had paid nearly $45,000 on the mortgage, while appellant had paid approximately $49,000. Since April 1994, appellees have not made any payments to appellant and appellant has not made any efforts to collect payments from appellees until the filing of this matter on December 15, 1995. Thus, the trial court concluded that if the monthly payments of $462 were rental payments, appellant would have demanded that such payments continue after the mortgage was paid in full.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ford v. Tandy Transportation, Inc.
620 N.E.2d 996 (Ohio Court of Appeals, 1993)
Alligood v. Procter & Gamble Co.
594 N.E.2d 668 (Ohio Court of Appeals, 1991)
Vargo v. Clark
716 N.E.2d 238 (Ohio Court of Appeals, 1998)
Stoops v. Miller
646 N.E.2d 552 (Ohio Court of Appeals, 1994)
North Coast Cookies, Inc. v. Sweet Temptations, Inc.
476 N.E.2d 388 (Ohio Court of Appeals, 1984)
Tier v. Singrey
97 N.E.2d 20 (Ohio Supreme Court, 1951)
Bretz v. Union Central Life Ins.
16 N.E.2d 272 (Ohio Supreme Court, 1938)
Delfino v. Paul Davies Chevrolet, Inc.
209 N.E.2d 194 (Ohio Supreme Court, 1965)
Litsinger Sign Co. v. American Sign Co.
227 N.E.2d 609 (Ohio Supreme Court, 1967)
C. E. Morris Co. v. Foley Construction Co.
376 N.E.2d 578 (Ohio Supreme Court, 1978)
Noroski v. Fallet
442 N.E.2d 1302 (Ohio Supreme Court, 1982)
Seasons Coal Co. v. City of Cleveland
461 N.E.2d 1273 (Ohio Supreme Court, 1984)
State ex rel. Pizza v. Strope
560 N.E.2d 765 (Ohio Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
Gurich v. Janson, Unpublished Decision (11-17-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/gurich-v-janson-unpublished-decision-11-17-2000-ohioctapp-2000.