Kruse v. Vollmar

614 N.E.2d 1136, 83 Ohio App. 3d 378, 1992 Ohio App. LEXIS 5916
CourtOhio Court of Appeals
DecidedNovember 20, 1992
DocketNo. 92WD019.
StatusPublished
Cited by9 cases

This text of 614 N.E.2d 1136 (Kruse v. Vollmar) 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
Kruse v. Vollmar, 614 N.E.2d 1136, 83 Ohio App. 3d 378, 1992 Ohio App. LEXIS 5916 (Ohio Ct. App. 1992).

Opinion

*381 Ajbood, Judge.

This is a consolidated appeal from judgments of the Wood County Court of Common Pleas in an action involving claims and counterclaims for breach of a partnership agreement.

Appellants set forth eight assignments of error:

“I It constituted error to grant a judgment for monetary damages.

“II It constituted error to find that plaintiff owns an undivided one-half interest in the real estate.

“Ill It constituted error to award plaintiff punitive damages.

“IV The award of punitive damages is against the manifest weight of the evidence.

“V It constituted error to find that defendants’ breach of contract was antecedent to plaintiffs breach of contract, and that defendants waived plaintiffs breach of contract.

“VI It constituted error not to award damages to defendants on their counterclaim.

“VII It constituted error not to order a dissolution of the partnership.

“VIII It constituted error to grant plaintiff judgment for the amount of compensatory damages awarded.”

The facts that are relevant to a determination of the issues raised by this appeal are as follows. Prior to July 31,1989, defendants-appellants, David J. and Bonnie Vollmar, owned and operated a tavern in Dunbridge, Ohio, which they called the “Central Inn.” They also owned the land on which the Central Inn was located. On July 31, 1989, the Vollmars entered into a land installment contract (“LIC”) and a sale and purchase agreement (“SPA”) with plaintiffappellee, Kenneth’ R. Kruse. Pursuant to those agreements, Kruse was to pay $17,500 ($5,000 in down payment and the rest in monthly installments) in exchange for an undivided one-half interest in the real estate and an equal partnership in the tavern, respectively. The SPA provided further “ * * * that all business profits and losses shall be divided in the same percentage as owned by the parties.” The parties verbally agreed that Kruse would provide one-half of the labor necessary to operate the business by hiring an employee at his own expense to work during the week and by personally working on Saturdays. Almost immediately, a number of disputes and arguments concerning the business took place between Kruse and the Vollmars. On December 2, 1989, during one such argument, Kruse told David Vollmar that “I was either going to buy him out or I wanted him to buy me out * * * ” and that “I was taking my stuff *382 * * That night Kruse removed all of his personal belongings from the tavern “ * * * except a couple of items * * Thereafter, the parties attempted to reach an agreement by which the Vollmars would purchase Kruse’s interest in the partnership. When this proved unsuccessful, the Vollmars locked Kruse out of the business premises and eliminated his name from the business checking account, after which Kruse continued to insist that he was still a partner and the Vollmars continued to accept Kruse’s monthly payments.

On July 23, 1990, Kruse filed his complaint in which he set forth two claims for relief. His first claim is that the Vollmars willfully and wantonly breached the LIC and SPA by failing to distribute profits of the business or provide an accounting as to business receipts and expenditures. His second claim is that the Vollmars willfully and wantonly breached their fiduciary duties “ * * * under principles of partnership law * * * ” by not distributing or accounting for profits and by denying him access to the business premises and records. The complaint demanded judgment on the first claim for relief for an unspecified amount of compensatory and punitive damages and on the second claim for relief for “ * * * a full written accounting * * * the complaint, however, did not contain a demand for dissolution of the partnership. On August 30, 1990, the Vollmars filed an answer and a counterclaim which alleged three claims for relief: (1) breach of partnership obligations; (2) conversion of partnership property; and (3) interference with partnership business. The counterclaim demanded judgment for compensatory and punitive damages and sought “ * * * an order judicially dissolving the partnership agreement * *

On September 14,1990, Kruse filed an amended complaint which in all relevant respects was the same as his original complaint. On September 19, 1990, the Vollmars filed their answer to Kruse’s amended complaint but no counterclaim.

On May 30, 1991, the case preceded to trial to the court. On July 11, 1991, the trial court filed its decision and judgment entry which awarded judgment to Kruse on his first claim for relief in the amount of $5,631.88 for compensatory damages, $2,000 for punitive damages and $3,000 for attorney fees; the court found further that although “ * * * it is in the best interest of the partnership that this business entity cease as a partnership, * * * the plaintiff did not seek the dissolution of the partnership and the Court does not order it” as part of its decision. The trial court also included the following relevant findings:

“ * * * [T]he Vollmars did exclude the plaintiff from management decisions. This conduct has violated the terms of the purchase agreement.

“ * * * The plaintiff stated he was through and walked out of the business taking with him his own personal items from the bar. This act violated terms of the agreement although his act was precipitated by breach of the contract by the defendants.

*383 “ * * * [T]he defendants waived any breach by the plaintiff and confirmed the continuing interest of the plaintiff by receiving the plaintiffs purchase checks monthly, but the defendants violated the agreement by excluding the plaintiff * * *

Ü ❖ ❖ *

“ * * * Generally punitive damages are not recoverable in breach of contract law suits but an exception is made when the breach amounts to an independent willful tort. [Citation omitted.]

“Under the facts of this case when the one partner was refused permission to participate in the business, the door locks were changed, the checking accounts were changed, but the partner’s monthly payments still were demanded and received, punitive damages are authorized.”

On August 12, 1991, the Vollmars filed their appeal from this judgment.

Since the trial court’s July 11, 1991 decision and judgment entry did not dispose of Kruse’s second claim for relief or the Vollmars’ counterclaim, on March 3, 1992, it filed a “SUPPLEMENTAL AND FINAL JUDGMENT ENTRY,” which ordered that:

“1. The judgment entry of July 11, 1991 is reaffirmed.

“2. The defendants are ordered to, within thirty days, account to the plaintiff for receipts and expenditures of the business since December 31, 1990.

“3. The defendants’ counter-claim seeking a dismissal of the plaintiffs’ [sic] claim, compensatory damages and dissolution of the partnership by the Court is denied and is dismissed.”

The trial court additionally found that R.C. 1775.31 is “ * * * inapplicable to the facts of this case.”

On March 11, 1992, the Vollmars filed their appeal from this judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
614 N.E.2d 1136, 83 Ohio App. 3d 378, 1992 Ohio App. LEXIS 5916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kruse-v-vollmar-ohioctapp-1992.