Lake Breeze Condominium Homeowners' Assn. v. Eastlake Ohio Developers, L.L.C.

2022 Ohio 3002
Ohio Court of Appeals·Decided August 29, 2022·No. 2021-L-124·Published·Cited by 2 cases

Opinion

[Cite as Lake Breeze Condominium Homeowners' Assn. v. Eastlake Ohio Developers, L.L.C., 2022-Ohio-3002.]

IN THE COURT OF APPEALS OF OHIO ELEVENTH APPELLATE DISTRICT LAKE COUNTY

LAKE BREEZE CONDOMINIUM CASE NO. 2021-L-124 HOMEOWNERS' ASSOCIATION,

Plaintiff-Appellee/ Civil Appeal from the Cross-Appellant, Court of Common Pleas

-v- Trial Court No. 2017 CV 002013 EASTLAKE OHIO DEVELOPERS, LLC,

Defendant-Appellant/ Cross-Appellee.

OPINION

Decided: August 29, 2022 Judgment: Affirmed in part, reversed in part, and remanded

Michael R. Stavnicky, Singerman, Mills, Desberg & Kauntz CO., LPA, 3333 Richmond Road, Suite 370, Beachwood, OH 44122 (For Plaintiff-Appellee/Cross-Appellant).

David M. Dvorin, Lieberman, Dvorin & Dowd, LLC, 30195 Chagrin Boulevard, Suite 300, Pepper Pike, OH 44124 (For Defendant-Appellant/Cross-Appellee).

JOHN J. EKLUND, J.

{¶1} Appellant/Cross-Appellee, Eastlake Ohio Developers, LLC (“EOD”),

appeals the Lake County Court of Common Pleas’ judgment awarding Appellee/Cross-

Appellant, Lake Breeze Condominium Homeowners’ Association (“Lake Breeze”),

damages for “recoverable depreciation,” interim road contribution fees, and attorney’s

fees. Lake Breeze cross appeals the trial court’s judgment and requests that we reverse

and order the trial court to increase the damages awarded to them. Substantive Facts and Procedural History

{¶2} In 2016, EOD purchased property directly adjacent to Lake Breeze, a

private residential condominium community, to construct ten condominiums and integrate

them into Lake Breeze’s condominium regime. Lake Breeze is governed by the

Declaration, which required EOD to obtain Lake Breeze’s consent to begin construction

on the adjacent land. The Declaration also requires each owner in the community to pay

all assessment fees and to repair and replace any property it damages. EOD commenced

work on ten residential units without Lake Breeze’s consent. When working on Lake

Breeze’s common areas, land, and roads, Lake Breeze claims that EOD trespassed on

its property and damaged grated drains (“the grates”) and concrete roads.

{¶3} Later in 2016, Lake Breeze sued EOD, asserting trespass and seeking a

temporary restraining order. To resolve the dispute, the parties entered a Memorandum

of Understanding. The memorandum required EOD to reimburse Lake Breeze $5,000 in

attorney’s fees for that lawsuit.

{¶4} The memorandum granted EOD a temporary easement to use Lake

Breeze’s roads for construction. The Easement required that EOD pay road contribution

fees of $117 per unit per month that it owned each unit for which a certificate of occupancy

had been filed until the units were added to Lake Breeze’s Declaration. Under the

Declaration, once the units were added to Lake Breeze, the road contribution fees

increased to $200 per month per unit. The memorandum stated that EOD “agrees to

promptly repair or replace, with like materials, in a good and workmanlike manner, any

damage to Condominium Property that is damaged by Eastlake.” The memorandum also

provided that EOD would fix the damaged grates at its sole cost and expense. Lastly, the 2

Case No. 2021-L-124 memorandum provided for mutual indemnifications, which required both parties to “each

agree to submit any claim otherwise to be indemnified pursuant to this Section to their

respective insurers” before Lake Breeze is entitled to recover from EOD under the

agreement.

{¶5} After the parties signed the memorandum, EOD continued construction on

the lots. However, EOD did not repair the damaged concrete roads and grates. Lake

Breeze argued that EOD did not comply with the memorandum because they had not

paid the interim road contribution fees.

{¶6} Lake Breeze submitted an insurance claim to their insurer, State Farm, for

the damaged grates. State Farm estimated the cost to repair or replace the grates was

$21,957. State Farm insured Lake Breeze $13,443.88 for the actual value at the time of

loss, with a $5,000 deductible. State Farm entitled Lake Breeze to $3,513.21 for

“recoverable depreciation” of the grates. The record is unclear whether Lake Breeze

accepted the “recoverable depreciation.”

{¶7} In 2017, Lake Breeze sued EOD seeking compensatory and punitive

damages. Lake Breeze claimed breach of the Declaration of Condominium Ownership

arising out of EOD’s failure to pay all assessments and fees due, breach of the

Memorandum of Understanding, unjust enrichment, and specific performance.1 Lake

Breeze sought full compensation for the damaged grates, concrete roads, additional

assessment fees, interim road contribution fees, and $50,784.40 in attorney’s fees.

1. Lake Breeze abandoned the unjust enrichment and specific performance claims and did not argue either at trial. 3

Case No. 2021-L-124 {¶8} The parties proceeded to a three-day bench trial. To support their request

for attorney’s fees, Lake Breeze’s counsel admitted three exhibits, each of which were

the law firm’s own breakdown of costs. Additionally, an expert witness testified that he

spoke with the attorneys, and considered the exhibits and time spent on the case. The

expert testified that “[m]y opinion to a reasonable degree of certainty is that the time

incurred by you and the various other members of your office, the hourly rates that you

charged for this, and the services that you performed in this case, were reasonable,

necessary and appropriate under the circumstances.”

{¶9} The trial court entered a verdict in favor of Lake Breeze. The court awarded

Lake Breeze $5,000 for their deductible to repair the grates and $3,513.12 for the

“recoverable depreciation” for the grates, but held that Lake Breeze was not “entitled to a

double recovery of the full amount paid by its insurance company.” The court also

awarded Lake Breeze $11,107.39 in road contribution fees. Lastly, the court awarded

Lake Breeze $27,500 in attorney’s fees. The court held that the full amount of attorney’s

fees requested were not reasonable because $17,360.45 of the amount requested were

costs incurred in the prior lawsuit. In its judgment entry, the court also held that Lake

Breeze was not entitled to damages for repairing the concrete roads because they did not

prove that EOD caused damage to the concrete roads.

{¶10} EOD raises three assignments of error: (1) that the trial court erred by

awarding Lake Breeze damages for “recoverable depreciation” for the grates EOD

damaged during construction; (2) that the trial court erred by awarding Lake Breeze

damages for the interim road contribution fees that EOD did not pay; and (3) that the trial

court erred by awarding Lake Breeze attorney’s fees.

Case No. 2021-L-124 {¶11} In their cross-appeal, Lake Breeze raises three assignments of error: (1)

that the trial court erred by not awarding the full amount it requested to repair the grates;

(2) that the trial court erred by not awarding the full amount requested for attorney’s fees;

and (3) that the trial court erred by awarding nothing to compensate Lake Breeze for the

concrete roads that EOD allegedly damaged.

{¶12} After a review of the record and applicable law, we find: (1) the trial court

erred by awarding Lake Breeze damages for “recoverable depreciation” for the grates

less the $5000 deductible because they already recovered the damages from their

insurance provider.

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Lake Breeze Condominium Homeowners' Assn. v. Eastlake Ohio Developers, L.L.C., 2022 Ohio 3002 (Ohio Ct. App. 2022).

2022 Ohio 3002 (Lake Breeze Condominium Homeowners' Assn. v. Eastlake Ohio Developers, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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