Hahn v. Jennings, Unpublished Decision (9-9-2004)

2004 Ohio 4789
CourtOhio Court of Appeals
DecidedSeptember 9, 2004
DocketNo. 04AP-24.
StatusUnpublished
Cited by6 cases

This text of 2004 Ohio 4789 (Hahn v. Jennings, Unpublished Decision (9-9-2004)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Hahn v. Jennings, Unpublished Decision (9-9-2004), 2004 Ohio 4789 (Ohio Ct. App. 2004).

Opinion

OPINION
{¶ 1} Plaintiffs-appellants, Michael and Marie Hahn, appeal from separate decisions granting summary judgment in favor of defendants-appellees, Laura Peterman ("Peterman"), Douglas R. Jennings ("Jennings"), and Phillip M. Collins Associates, in this attorney malpractice action. For the reasons stated below, we affirm.

{¶ 2} The underlying facts of this matter go back to 1991, and have been partially outlined in this court's previous decisions in Hahn v. Doe d/b/a 84 Lumber Home Ctr. (Mar. 23, 1995), Franklin App. No. 94APE07-1024; and Hahn v. Satullo,156 Ohio App.3d 412, 2004-Ohio-1507. Briefly, the Hahns were acting as their own general contractor in building a home when they purchased Gold Bond brand drywall from 84 Lumber only to have it substituted with Domtar brand at the time of delivery. The error was not discovered until the drywall had been installed, at which time the Hahns noticed that the quality of the product did not meet their expectations. Various attempts were made to remedy the situation, but the Hahns remained dissatisfied and initiated litigation against 84 Lumber based upon alleged violations of the Consumer Sales Practices Act and breach of warranty. They were successful in obtaining a judgment sufficient to cover the purchase and installation of new drywall; however, the Hahns chose not to have the drywall removed and replaced with the brand they had originally selected. Instead, they attempted to address the defects in the Domtar drywall by "skim coating" it, but were dissatisfied with the result. In addition, they complained that, beginning in August 1994 during the interim between having obtained a judgment and their actual collection of amounts due under the judgment, the Domtar drywall began to pull away from the framing, which damaged the structural integrity of the house, and resulted in financial loss exceeding the amount recovered in the lawsuit.

{¶ 3} In the fall of 1995, the Hahns retained attorney Tobias Elsass to advise them on various legal matters connected with the drywall purchase and consequent litigation. Shortly thereafter, Elsass was suspended from the practice of law, and another attorney in his firm, Laura M. Peterman, took over the Hahns' case. In January 1996, with Peterman acting on their behalf, the Hahns filed a complaint against Domtar based upon various breach of warranty theories. Significantly, although the complaint referenced Ohio products liability law, it did not specifically raise a products liability or tort claim. Domtar removed that case to federal court and, in September 1996, the federal district court granted Domtar's motion to dismiss based upon Domtar's assertion of a lack of privity between the parties.

{¶ 4} In so holding, the court stated, in pertinent part:

A. Lack of Privity

Plaintiffs bring their first three warranty claims under Ohio Revised Code Chapter 1302, Ohio's Uniform Commercial Code ("UCC"). * * * Defendant first argues that plaintiffs cannot maintain these three warranty claims because plaintiffs lack privity with defendant.

Ohio law provides: "[t]o support an implied warranty there must be privity between the buyer and the seller." Lonzrick v.Republic Steel Corp., 6 Ohio St.2d 227, 238 (1966). Likewise:

In order to maintain an action in contract for injury topersonal property based upon a contract of sale, which injury is alleged to be caused by a "breach of an implied warranty of merchantability" under the provisions of the Ohio Uniform Commercial Code covering contracts for sale, the plaintiff must establish a contractual relationship with the defendant.

U.S. Fidelity Guaranty Co. v. Truck Concrete EquipmentCo., 21 Ohio St.2d 244 (1970) (syllabus by the court, ¶ 1) (emphasis in original). More recently, an Ohio appellate court has stated: "Privity between the buyer and the seller is a prerequisite to a breach of warranty claim brought under the Uniform Commercial Code." Bruns v. Cooper Indus., Inc.,78 Ohio App.3d 428, 432 (1992).

Plaintiffs attempt to distinguish the above authorities, but cannot avoid the obvious result when these principles are applied to the instant case.[fn.] Even when viewed in the light most favorable to plaintiffs, the facts set forth in the complaint do not, and could not, support an inference that privity existed between plaintiffs and defendant. Plaintiffs therefore cannot maintain their UCC breach of warranty claims against defendant, and plaintiffs' UCC claims are subject to dismissal under Fed.R.Civ.P. 12(b).

{¶ 5} By footnote, the district court made the following observation:

In their response plaintiffs make oblique reference to tort claims. Pl. resp. at 21. Plaintiffs refer to the second paragraph of the syllabus in Lonzrick, which concerns a tort claim for personal injury. Although it is not entirely clear, it appears that the Ohio Supreme Court recently upset a long-established principle that purely economic losses were not compensable under Ohio's common law tort action for breach of warranty. See LaPumav. Collinwood Concrete, 75 Ohio St.3d 64, 67 (Mar. 4, 1996) (dicta); see also C.W. Zumbiel Co. v. Reinchold Chemicals,Inc., No. C-950644, 1996 WL 400501, at *2 (Ohio App. 1st Dist. June 5, 1996) (discussing apparent conflict betweenLaPuma and earlier cases). In any event, plaintiffs stop short of alleging a tort claim for breach of implied warranty, and the two year limitations period for a tort claim probably expired before plaintiffs filed this action in January 1996. See Ohio Rev. Code § 2503.10; Behner v. Oldsmobile Div. General MotorsCorp., No. C.A. L-87-348, 1988 WL 74176, at * 2 (Ohio App. Lucas Cty. July 15, 1988).

{¶ 6} Regarding the Hahns' Magnuson-Moss claim, the district court stated:

* * * As [Domtar] correctly points out, the Act does not supplant state law privity requirements for warranty claims.Abraham v. Volkswagen of Am., Inc., 795 F.2d 238, 248-49, 249 n. 12 (2d Cir. 1986) (concluding that the Act does not supplant state law privity requirement, and specifically holding that Ohio law requires privity). The Court has already found that plaintiffs lack privity with defendant.

In addition, there is no writing in this case to satisfy the written warranty definition of the Act. See15 U.S.C. § 2301(6)(A), (B). Moreover, for reasons already discussed, any purported writing could not, as a matter of law, have been "part of the basis of the bargain" when [the Hahns] bought the drywall, as the Act's definition of written warranty requires.15 U.S.C. § 2301(6).

{¶ 7} Subsequent to the decision of the federal district court dismissing the Hahns' action against Domtar, Elsass (who at that time was between suspensions of his law license) filed a notice of appeal to the Sixth Circuit Court of Appeals.

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Bluebook (online)
2004 Ohio 4789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hahn-v-jennings-unpublished-decision-9-9-2004-ohioctapp-2004.