Hortman v. City of Miamisburg

831 N.E.2d 467, 161 Ohio App. 3d 559, 2005 Ohio 2862
CourtOhio Court of Appeals
DecidedJune 10, 2005
DocketNo. 20664.
StatusPublished
Cited by3 cases

This text of 831 N.E.2d 467 (Hortman v. City of Miamisburg) 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
Hortman v. City of Miamisburg, 831 N.E.2d 467, 161 Ohio App. 3d 559, 2005 Ohio 2862 (Ohio Ct. App. 2005).

Opinion

*562 Wolff, Judge.

{¶ 1} Douglas Hortman and David Hortman appeal from a judgment of the Montgomery County Court of Common Pleas, which granted summary judgment in favor of the city of Miamisburg and partial summary judgment in favor of SK Construction Company on the Hortmans’ claims arising out of the Maue Road Improvement Project III.

{¶ 2} The facts giving rise to this litigation were set forth by the trial court as follows.

{¶ 3} “This action concerns the property at 502 South Linden Avenue in Miamisburg, located at the corner of Maue Road and Linden Avenue. The property was purchased by Donald Hortman in 1972. Between 1972 and 2000, only a few minor improvements were made to the property.

{¶ 4} “In 2000, Donald Hortman and his two sons, David and Douglas Hortman, attended public meetings concerning the Maue Road Improvement Project — Phase III. The Hortman[s] did not object to the improvements. Donald Hortman died in February 2001, shortly before work began. At that time, Douglas and David Hortman became joint owners of the property. When work began in March 2001, Douglas signed a Work Permission Agreement. This agreement specifically authorized Miamisburg to enter [the] property for the purpose of performing all necessary work to adjust ground elevation, water service, and tree and brush removal in accordance with the plans for the improvement. Miamisburg contracted with SK Construction Company (“SK”) to perform all the necessary work for the improvement.

{¶ 5} “As a result of the construction, Plaintiffs claim that they suffered damage to both personal and real property. Plaintiffs allege that the personal property damaged consisted of two Persian rugs and family photos. As for the real property damaged, Plaintiff[s] first allege damage to the swimming pool, because the pool and surrounding concrete were cracked due to the vibrations of construction equipment used by SK, and that the pool is not as secure due to removal of dirt due to excavation performed by SK. Plaintiff[s] also allege damage to the front porch due to the vibrations.

{¶ 6} “Finally, Plaintiffs] complain of the loss of certain trees. Plaintiffs] allege that during the meetings they attended prior to the improvements, several City officials promised that certain trees on the Hortman property would not be touched or destroyed. These trees included an elm tree and other trees on the Linden Avenue side of the property, and a pine tree on the Maue Road side. During the course of the excavation for the project, the roots of the elm were exposed, and the tree was destroyed. Several pine trees, including the one on the Maue Road side, were also taken down. It should be noted that the project *563 design clearly indicated the public right of way and scope of the work area, and that some of those trees, including the elm, were located in that area and subject for removal. The City paid to relandscape the property. However, Plaintiffs] filed this suit against the City and SK for negligence in construction, conversion, and promissory estoppel, and have prayed for punitive damages for negligent, reckless, or wanton disregard for Plaintiffs’] rights.”

{¶ 7} SK and the city sought summary judgment on the claims against them. On July 21, 2004, the trial court granted the city’s motion on sovereign-immunity grounds. The court concluded that R.C. 2744.02(A) provided immunity for each of the Hortmans’ claims and that none of the exceptions to that immunity under R.C. 2744.02(B)(3) applied. In a separate decision filed on the same day, the trial court granted SK’s motion for summary judgment on the Hortmans’ conversion and promissory estoppel claims and on their claim that SK was negligent in causing vibrations that damaged the Hortmans’ house. The court denied SK’s motion with respect to Hortman’s negligence claims concerning the removal of the old gas pipe and the building of the retaining wall. On July 28, 2004, the court certified that the summary judgment rulings were immediately appealable, pursuant to Civ.R. 54(B).

{¶ 8} The Hortmans raise two assignments of error on appeal.

“The trial court erred in sustaining defendant/appellee the city of Miamis-burg’s motion for summary judgment.”

{¶ 9} In their first assignment of error, the Hortmans claim that the trial court incorrectly concluded that the promissory estoppel claim was precluded by R.C. 2744.02(A) and that none of the exceptions to the sovereign immunity statute applied to any of their claims.

{¶ 10} In granting summary judgment to the city on the promissory estoppel claim, the trial court concluded that the claim was not viable because the city was performing a governmental function and the Hortmans had failed to present evidence that the person who had made the promise had the authority to waive the city’s right to the right of way. The Hortmans assert that, pursuant to R.C. 2744.09(A), their promissory estoppel claim is not covered by the Political Subdivision Tort Liability Act, codified at R.C. Chapter 2744. R.C. 2744.09(A) provides that political subdivisions are not immune from actions seeking damages “for contractual liability.”

{¶ 11} In general, “the principle of estoppel does not apply against a state or its agencies in the exercise of a governmental function.” Ohio State Bd. of Pharmacy v. Frantz (1990), 51 Ohio St.3d 143, 145-46, 555 N.E.2d 630. However, “[i]t has been held that estoppel is applicable to municipalities in contract situations so long as the subject matter of the contract is not illegal or *564 ultra vires. While estoppel is to be sparingly invoked, it is applicable if the municipality made a representation which was within its power to make, and this action induced the plaintiffs reliance.” (Citations omitted.) State v. First, Inc. (Apr. 3, 1990), Montgomery App. No. 11486, 1990 WL 40668. Thus, we have held that promissory estoppel is available in the contractual context, even when the government is performing a governmental function, “where the subject matter of the contract is within the authority of the person acting on behalf of the [sjtate.” Id.; see, also, Pilot Oil Corp. v. Ohio Dept. of Transp. (1995), 102 Ohio App.3d 278, 283, 656 N.E.2d 1379; Oxford v. Day (Mar. 16, 1998), Butler App. No. CA9609-183, 1998 WL 117167. We explained:

{¶ 12} “Federal courts have long recognized that if estoppel were not available against the United States in contract disputes, it would give government negotiators an unfair advantage to lay traps for unsuspecting business people. The realities of modern society require that governments enter into contracts with private individuals. In order for this relationship to operate efficiently, it is necessary that the business community know that government 'plays by the same rules’ of contract law as does everyone else. So long as the subject matter of the contract is within the scope of the agency’s authority, the application of traditional contract law does not impinge upon the government’s sovereignty.

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831 N.E.2d 467, 161 Ohio App. 3d 559, 2005 Ohio 2862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hortman-v-city-of-miamisburg-ohioctapp-2005.