Kavalec v. Ohio Express, Inc.

2016 Ohio 5925
CourtOhio Court of Appeals
DecidedSeptember 22, 2016
Docket103410
StatusPublished
Cited by8 cases

This text of 2016 Ohio 5925 (Kavalec v. Ohio Express, 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
Kavalec v. Ohio Express, Inc., 2016 Ohio 5925 (Ohio Ct. App. 2016).

Opinion

[Cite as Kavalec v. Ohio Express, Inc., 2016-Ohio-5925.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 103410

STEVEN J. KAVALEC, ET AL. PLAINTIFFS-APPELLEES

vs.

OHIO EXPRESS, INC., ET AL. DEFENDANTS-APPELLANTS

JUDGMENT: AFFIRMED IN PART; REVERSED IN PART; AND REMANDED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-13-804289

BEFORE: E.A. Gallagher, P.J., E.T. Gallagher, J., and Celebrezze, J.

RELEASED AND JOURNALIZED: September 22, 2016 ATTORNEY FOR APPELLANT

Andrea L. Burdell-Ware The ABW Law Firm 420 North Court Street Medina, Ohio 44256

ATTORNEYS FOR APPELLEE

Daniel L. Powell Mark V. Guidetti Joseph W. Diemert Joseph W. Diemert & Associates 1360 Som Center Road Cleveland, Ohio 44124

Chance Douglas W. Andrew Hoffman Hoffman Legal Group L.L.C. 24100 Chagrin Blvd. Suite 280 Cleveland, Ohio 44122

FOR PHOENIX RISING TRANSPORTATION L.L.C.

Alanna B. Klein 17325 Euclid Ave. Suite 3021 Cleveland, Ohio 44112 EILEEN A. GALLAGHER, P.J.:

{¶1} Defendant-appellant Robert Kavalec appeals from the judgments entered

against him in the Cuyahoga County Court of Common Pleas on plaintiff-appellees

William Kavalec, Stuart Kavalec and Steven Kavalec’s claims for conversion.1 We

affirm in part, and reverse in part.

Facts and Procedural Background

{¶2} This case arises out of a business dispute amongst family members. At one

time, William Kavalec operated a trucking company, to wit: Cleveland Cartage Service,

Inc. (“Cleveland Cartage”), out of 3600 Ridge Road in Brooklyn, Ohio. In 1993,

William retired and left behind all the shop equipment of Cleveland Cartage for his sons,

Steven and Stuart, to use in the operation of their own trucking corporation, Hawk

Enterprises (“Hawk”).

{¶3} Hawk was incorporated on October 22, 1992, opened in July 1993, and

operated out of 3600 Ridge Road until 2010. Hawk’s business suffered a downturn due

to the recession and was strained by financial difficulties in 2010. A proposal was made

wherein Robert Kavalec, uncle to Steven and Stuart, and brother to William, would open

a new corporation, Ohio Express, which would purchase the assets of Hawk and assume

certain Hawk liabilities. Robert would be the president of Ohio Express and Steven and

Stuart would continue to operate the trucking business under the new corporation.

1 For clarity and ease of discussion the parties are referred to by their first names throughout this opinion. {¶4} Ohio Express was incorporated in July 2010 and an asset purchase agreement

between Hawk and Ohio Express was signed by Robert and Stuart on August 16, 2010.

Ohio Express began operating on September 7, 2010. A dispute arose between Robert

and the appellees regarding the operation of the business following a motor vehicle

accident in the fall of 2011. As a result, Robert’s wife, Ellen Kavalec, began an audit of

Ohio Express in October 2011. Following the audit, Robert and Steven had an argument

on November 4, 2011, which resulted in the termination of Steven’s employment with

Ohio Express.

{¶5} The falling out of the parties intensified the next day when Robert demanded

the keys to Ohio Express’s office and sought to exclude Steven and William from the

property. Steven was eventually allowed into Ohio Express’s building on November 5

and removed a few items. Automobiles belonging to Steven and Stuart that were left on

Ohio Express’s property were later turned over to them. Ellen Kavalec also provided

Steven with a check to repay him for a fuel purchase and turned over a computer and cell

phones belonging to him.

{¶6} The remaining property located at 3600 Ridge Road, which Robert believed

belonged to Ohio Express, was liquidated in an asset purchase agreement with a company

called Phoenix Rising Transport.

{¶7} A complaint in this action was filed on November 10, 2011, and was

mutually dismissed without prejudice by the parties on April 10, 2012. The complaint

was refiled on April 5, 2013. Appellees alleged claims of fraudulent inducement, breach of contract, intentional interference with prospective economic advantage, tortious

interference with contract, civil theft and replevin. The complaint also included a

declaratory judgment action. Counterclaims for conversion and breach of fiduciary duty

were asserted by Robert and Ellen Kavalec.

{¶8} The case proceeded to a jury trial. Following the presentation of the

plaintiffs-appellees’ case, appellant moved for a directed verdict. As a result of that

motion, the trial court sua sponte and over objection converted appellees’ claims for civil

theft and replevin into a single count of conversion. On the conversion claim, the jury

returned verdicts against Robert in the amounts of $78,800 in favor of William, $41,679

in favor of Steven and $4,900 in favor of Stuart. Because only the conversion verdicts

against Robert personally have been appealed, we limit our discussion to the conversion

claim.

{¶9} Following trial, Robert filed motions for a new trial and judgment

notwithstanding the verdict. The trial court denied the motion for new trial but granted

the motion for judgment notwithstanding the verdict, in part, and denied it in part. The

trial court reduced the verdict in favor of Stuart by $2,000, finding that $2,000 of the

$4,900 in conversion damages sought by Stuart was established to be property of a

separate entity. The trial court otherwise denied the motion for judgment

notwithstanding the verdict.

Law and Analysis

I. The Trial Court’s Ruling on the Motion for Directed Verdict {¶10} In his first assignment of error, Robert argues that the trial court erred in

failing to grant his motion for directed verdict with respect to appellees’ claims for

replevin and civil theft.

{¶11} We find this assignment of error to be moot. Although the trial court stated

that it denied Robert’s motion for directed verdict as to appellees’ claims for civil theft

and replevin, the court incongruously “converted” those claims into a single claim of

conversion and did not allow the theft and replevin claims to be submitted to the jury. In

fact, the trial court specifically noted that the required formalities for proceeding under a

replevin claim had not been followed by appellees. The trial court’s action in amending

the complaint into a single conversion claim and not allowing appellees to proceed with

their civil theft and replevin claims had the same effect as granting a directed verdict on

those claims.2

{¶12} Therefore, appellant’s first assignment of error is moot.

II. The Trial Court’s Sua Sponte Amendment of the Complaint

{¶13} In his second assignment of error, Robert argues that the trial court erred

and abused its discretion in sua sponte amending the pleadings to replace the replevin and

civil theft claims with a single count of conversion. Robert argues that he did not have

adequate notice that conversion was a claim in the case or an adequate opportunity to

2 We note that appellees have not raised as their own error the trial court’s refusal to submit the claims for replevin and civil theft to the jury. prepare a defense and question witnesses as to conversion. The trial court rejected this

argument as part of its denial of Robert’s motion for judgment notwithstanding the

verdict, stating:

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Bluebook (online)
2016 Ohio 5925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kavalec-v-ohio-express-inc-ohioctapp-2016.