Jalm Marion, L.L.C. v. Fair Park Ents., Inc.

2017 Ohio 4350
CourtOhio Court of Appeals
DecidedJune 19, 2017
Docket9-16-42
StatusPublished

This text of 2017 Ohio 4350 (Jalm Marion, L.L.C. v. Fair Park Ents., Inc.) 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
Jalm Marion, L.L.C. v. Fair Park Ents., Inc., 2017 Ohio 4350 (Ohio Ct. App. 2017).

Opinion

[Cite as Jalm Marion, L.L.C. v. Fair Park Ents., Inc., 2017-Ohio-4350.]

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT MARION COUNTY

JALM MARION, LLC.,

PLAINTIFF-APPELLEE, CASE NO. 9-16-42

v.

FAIR PARK ENTERPRISES, INC., OPINION DEFENDANT-APPELLANT.

Appeal from Marion County Common Pleas Court Trial Court No. 15-CV-0115

Judgment Affirmed in Part, Reversed in Part and Cause Remanded

Date of Decision: June 19, 2017

APPEARANCES:

Brent M. Harraman for Appellant

William V. Beach for Appellee Case No. 9-16-42

WILLAMOWKSI, J.

{¶1} Defendant-appellant Fair Park Enterprises, Inc. (“FPE”) brings this

appeal from the judgment of the Court of Common Pleas of Marion County finding

in favor of plaintiff-appellee Jalm Marion, LLC (“JM”). FPE claims that the trial

court’s judgment is against the manifest weight of the evidence, the trial court did

not interrogate witnesses in an impartial manner, and the trial court erred in its

computation of damages. For the reasons set forth below, the judgment is affirmed

in part and reversed in part.

{¶2} In June of 2011, FPE and JM entered into an agreement for FPE to sell

real estate in Marion County to JM. As part of the agreement, it was agreed that

FPE would repair sections of the concrete parking lot. The amount of $25,000 of

the purchase price was placed into escrow until the repairs were completed. The

repairs occurred in June and July of 2011. The repairs consisted of putting down a

new four-inch stone foundation and then pouring four inches of concrete containing

fiber mesh. This matched the consistency of the existing parking lot. Afterwards,

the CEO of JM, Mike Needler (“Needler”) inspected the repairs, was satisfied with

the work, and released the escrowed funds to FPE on July 26, 2011. Ex. 10. A few

months later, portions of the repaired surfaces began to deteriorate. In November

2011, Needler contacted the owner of FPE at that time, George Scantland III

(“Scantland”). Needler sent Scantland images of the failing sections. Scantland and

-2- Case No. 9-16-42

Needler agreed at that time that if Needler paid for the materials to repair the issues,

Scantland would provide the equipment and labor. However, no repairs were made

at that time. In late 2012, Needler again contacted Scantland about the repairs.

Scantland informed him that he was no longer an owner of FPE and told Needler to

contact the current owners. The current owners of FPE indicated that they felt they

had no responsibility to make further repairs.

{¶3} In the summer of 2014, JM hired Carlos Rhodes (“Rhodes”) to make

repairs to the parking lot. Some of the areas repaired by Rhodes were not part of

the original repairs. Additionally, some of the original repairs did not need further

repairs. Rhodes repaired the sections by laying a new four-inch stone foundation

and adding six inches of concrete with rebar. On March 16, 2015, JM filed a

complaint alleging that FPE did not complete the repairs in a workmanlike manner

and sought damages in the amount of $18,600, the amount that Rhodes charged for

all the repairs. Doc. 1. An amended complaint alleging the same thing was filed on

April 6, 2015. Doc. 4. FPE filed its amended answer on May 21, 2015 with

additional amended answers being filed on March 2, 2016, and on June 21, 2016.

Doc. 8, 16, 39

{¶4} A bench trial was held on June 30, 2016. Doc. 42. At the trial, the

parties made the following stipulations. First, photos need not be authenticated, but

the dates must be established and all enhancements must be disclosed. Tr. 9-10.

-3- Case No. 9-16-42

Second, Scantland’s ownership interest in FPE ended on October 17, 2012. Tr. 10.

Carol Farverick was the sole owner of FPE since that time. Tr. 10. Third,

consideration for the original sale of the real estate was a mortgage and note from

JM to FPE. Tr. 10. JM made regular monthly payments of $3,324.05 from July 1,

2011 until July 1, 2013. Tr. 10. Fourth, the aerial photos of the property by the

county auditor do not need to be authenticated and FPE’s aerial photos of the

property were taken in Spring 2013. Tr. 11. Fifth, JM determined what repairs had

to be made originally. Tr. 11. JM also had the opportunity to observe the repairs

being made and the materials being used. Tr. 11. Sixth, Scantland was not in Ohio

at the time the repairs were made. Tr. 11. Seventh, the escrow agreement was

drafted by JM. Tr. 11. Eighth, JM’s grocery store was open during all times repairs

were made. Tr. 11. Ninth, not all areas repaired by FPE in 2011 required repair by

Rhodes in 2014. Tr. 11-12. Tenth, Rhodes was not present when the original repairs

were made. Tr. 12. Rhodes also repaired areas of the parking lot that did not require

repair in 2011. Tr. 12.

{¶5} JM presented the testimony of two witnesses. The first witness was

Needler. Needler testified that he bought the store in 2011 and required repairs to

the parking lot as part of the agreement due to the lot being in “terrible shape” before

the purchase. Tr. 20-24. Before closing, Needler and Scantland agreed to what

repairs would be done. Tr. 25. Needler testified that he expected the repairs

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required by the escrow agreement to last longer than the unrepaired areas. Tr. 28.

Once the repairs were done, Needler went to the store and inspected the repairs. Tr.

30. After agreeing that all required repairs were done, he released the money held

in escrow. Tr. 29-30.

{¶6} Two months after the initial repairs, some of the repaired areas started

deteriorating. Tr. 30. Needler testified that it appeared that most of the repairs were

cracking and sinking. Tr. 37. At that time, Needler called Scantland and

complained that the repairs were “gone”. Tr. 26. Scantland claimed that the repairs

had deteriorated because JM had allowed people to drive over the concrete before it

had properly cured. Tr. 31. Pictures of the damage were sent to Scantland on

November 15, 2011. Tr. 33. The parties eventually reached an agreement where

JM would pay for the materials and FPE would pay for the equipment and labor to

repair the damages. Tr. 31, 37. Needler identified Ex. 54 as an email showing the

agreement. Tr. 40. Since it was November, no repairs were done at that time. Tr.

41. No repairs were made in the Spring or Summer either.

{¶7} In late 2012, Needler again contacted Scantland about the failed repairs.

Tr. 44. At that time, Scantland informed him that he had sold his interest in the

business to his sister, so Needler would need to “take it up with her.” Tr. 44.

Needler then contacted her, but she refused to make further repairs. Tr. 45. In

Summer 2014, Needler tried one last time to get FPE to make the repairs, but they

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refused. Tr. 56. Needler then hired Rhodes to make the repairs and sued for

damages. Tr. 45, 56. Rhodes charged JM $18,600 for all of the repairs. Tr. 56.

Rhodes added stone, rebar, and cement with fiber at a six-inch depth. Tr. 57.

Needler admitted that some of the pictures showing the deterioration in the parking

lot were not part of the original repairs, but were instead just additional normal wear

and tear that had occurred over the years. Tr. 48-51. According to Needler only

5% of the repairs were areas not originally repaired. Tr. 59.

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