Hmeidan v. Rawahneh

2011 Ohio 6149, 961 N.E.2d 1224, 196 Ohio App. 3d 10
Ohio Court of Appeals·Decided November 28, 2011·No. 2011CA00097·Published

Opinion

Farmer, Judge.

{¶ 1} On June 16, 2010, appellants, Eddie Hmeidan and Mimi Hmeidan, formerly known as Mimi Hamdan, filed a complaint against appellees, Ziad Rawahneh and Goodtimes Pub & Drive Thru, Inc., stemming from appellee Rawahneh’s purchase of Goodtimes Pub from appellants. At issue were two promissory notes, one in the amount of $175,000, payable to appellant Eddie Hmeidan, and the second in the amount of $100,000, payable to appellant Mimi Hamdan, now known as Mimi Hmeidan. Appellants alleged that there remained an outstanding balance due and payable by appellees in the amount of $85,000. Appellants also alleged that they loaned appellee Rawahneh the amounts of $47,837 and $20,000 that are also outstanding.

{¶ 2} On February 1, 2011, appellees filed a motion for summary judgment. By judgment entry filed March 30, 2011, the trial court granted the motion.

*12 {¶ 3} Appellants filed an appeal, and this matter is now before this court for consideration. The assignment of error is as follows:

{¶ 4} “The trial court erred by granting appellees’ motion for summary judgment as appellees were not entitled to judgment as a matter of law.”

{¶ 5} Appellants claim that the trial court erred in granting summary judgment for appellees because there exist genuine issues of material fact as to Count I of their complaint. Appellants further claim that Counts II and III were dismissed in error. We agree in part.

{¶ 6} Summary-judgment motions are to be resolved in light of the dictates of Civ.R. 56. That rule was reaffirmed by the Supreme Court of Ohio in State ex rel. Zimmerman v. Tompkins (1996), 75 Ohio St.3d 447, 448, 663 N.E.2d 639:

{¶ 7} “Civ.R. 56(C) provides that before summary judgment may be granted, it must be determined that (1) no genuine issue as to any material fact remains to be litigated, (2) the moving party is entitled to judgment as a matter of law, and (3) it appears from the evidence that reasonable minds can come to but one conclusion, and viewing such evidence most strongly in favor of the nonmoving party, that conclusion is adverse to the party against whom the motion for summary judgment is made. State ex rel. Parsons v. Fleming (1994), 68 Ohio St.3d 509, 511, 628 N.E.2d 1377, 1379, citing Temple v. Wean United, Inc. (1977), 50 Ohio St.2d 317, 327, 4 O.O.3d 466, 472, 364 N.E.2d 267, 274.”

{¶ 8} As an appellate court reviewing summary-judgment motions, we must stand in the shoes of the trial court and review summary judgments on the same standard and evidence as the trial court. Smiddy v. Wedding Party, Inc. (1987), 30 Ohio St.3d 35, 30 OBR 78, 506 N.E.2d 212.

{¶ 9} In Count I of their complaint, appellants claim that appellees failed to make payments on a promissory note dated October 7, 2005, payable to appellant Eddie Hmeidan, attached to the complaint as Exhibit A.

{¶ 10} In its judgment entry filed March 30, 2011, the trial court found that the purchase agreement memorialized the fact that the purchase was predicated on one promissory note for $200,000, which had been paid in full:

{¶ 11} “The Court finds that the Purchase Agreement in this matter provides that its terms constitute all the terms of the agreement, stating:

{¶ 12} “This Agreement and the schedules and exhibits hereto and the ancillary documents executed hereunder set forth the entire agreement and understanding supersede and cancel any and all prior discussions, correspondence, agreements, or understandings (whether oral or written) between the parties hereto with respect to such matters.

*13 {¶ 13} “Further, the Court finds that the Purchase Agreement clearly states that only one Promissory Note was contemplated and that the purchase price was a total of two hundred thousand dollars ($200,000.00). The Court finds that the Purchase Agreement is clear and unambiguous and requires no further interpretation.”

{¶ 14} We concur in the trial court’s decision because it is clearly within the Supreme Court of Ohio’s ruling in Ed Schory & Sons, Inc. v. Soc. Natl. Bank (1996), 75 Ohio St.3d 433, 440, 662 N.E.2d 1074:

{¶ 15} “ ‘The Parol Evidence Rule was developed centuries ago to protect the integrity of written contracts.’ Shanker, Judicial Misuses of the Word Fraud to Defeat the Parol Evidence Rule and the Statute of Frauds (With Some Cheers and Jeers for the Ohio Supreme Court) (1989), 23 Akron L.Rev. 2. The parol evidence rule is a rule of substantive law that prohibits a party who has entered into a written contract from contradicting the terms of the contract with evidence of alleged or actual agreements. Id. ‘When two parties have made a contract and have expressed it in a writing to which they have both assented as the complete and accurate integration of that contract, evidence, whether parol or otherwise, of antecedent understandings and negotiations will not be admitted for the purpose of varying or contradicting the writing.’ 3 Corbin, Corbin on Contracts (1960) 357, Section 573. See, also, Charles A. Burton, Inc. v. Durkee (1952), 158 Ohio St. 313, 49 O.O.174, 109 N.E.2d 265.

{¶ 16} “As is apparent from the foregoing, the parol evidence rule will not be overcome by merely alleging that a statement or agreement made prior to an unambiguous written contract is different from that which is contained in the contract. Stated differently, ‘an oral agreement cannot be enforced in preference to a signed writing which pertains to exactly the same subject matter, yet has different terms.’ Marion, supra, 40 Ohio St.3d 265, 533 N.E.2d 325, paragraph three of the syllabus.”

{¶ 17} In further support of the trial court’s decision, we fail to find that the alleged “second promissory note” would qualify under the best-evidence rule (Evid.R. 1002):

{¶ 18} “To prove the content of a writing, recording, or photograph, the original writing, recording, or photograph is required, except as otherwise provided in these rules or by statute enacted by the General Assembly not in conflict with a rule of the Supreme Court of Ohio.”

{¶ 19} The trial court’s decision is silent as to Counts II and III of the complaint. Appellees argued that these counts were barred by appellants’ failure to raise them as compulsory counterclaims in a previous action. Civ.R. 13(A) governs compulsory counterclaims and states the following:

*14 {¶ 20} “A pleading shall state as a counterclaim any claim which at the time of serving the pleading the pleader has against any opposing party, if it arises out of the transaction or occurrence that is the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction.

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Hmeidan v. Rawahneh, 2011 Ohio 6149, 961 N.E.2d 1224, 196 Ohio App. 3d 10 (Ohio Ct. App. 2011).

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Related

Temple v. Wean United, Inc.
364 N.E.2d 267 (Ohio Supreme Court, 1977)
Geauga Truck & Implement Co. v. Juskiewicz
457 N.E.2d 827 (Ohio Supreme Court, 1984)
Smiddy v. Wedding Party, Inc.
506 N.E.2d 212 (Ohio Supreme Court, 1987)
Marion Production Credit Ass'n v. Cochran
533 N.E.2d 325 (Ohio Supreme Court, 1988)
Rettig Enterprises, Inc. v. Koehler
626 N.E.2d 99 (Ohio Supreme Court, 1994)
State ex rel. Parsons v. Fleming
628 N.E.2d 1377 (Ohio Supreme Court, 1994)
Ed Schory & Sons, Inc. v. Francis
75 Ohio St. 3d 433 (Ohio Supreme Court, 1996)
State ex rel. Zimmerman v. Tompkins
663 N.E.2d 639 (Ohio Supreme Court, 1996)