Mayer v. Medancic, Unpublished Decision (12-21-2001)

CourtOhio Court of Appeals
DecidedDecember 21, 2001
DocketNos. 2000-G-2311.
StatusUnpublished

This text of Mayer v. Medancic, Unpublished Decision (12-21-2001) (Mayer v. Medancic, Unpublished Decision (12-21-2001)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Mayer v. Medancic, Unpublished Decision (12-21-2001), (Ohio Ct. App. 2001).

Opinions

OPINION
In these consolidated cases, appellants/cross-appellees, Mario, Marija, Mladen, and Karoline Medancic and A-Custom Builders, Inc. ("A-Custom Builders") appeal from the judgments of the Geauga County Court of Common Pleas following a bench trial.1

The following facts are relevant to a determination of this appeal. On July 15, 1998, appellees/cross-appellants, Marcia A. and Robert C. Mayer, filed a foreclosure complaint alleging that A-Custom Builders, by and through its officers, executed a promissory note on January 8, 1996, which was secured by a mortgage deed.2 Although A-Custom Builders promised to pay appellees the sum of $37,500 by November 1, 1997, appellees claimed that the payment was never made, and that the mortgage was in default.

A similar complaint for foreclosure was filed on November 23, 1998.3 In this complaint, appellees alleged that on December 11, 1995, Mladen and Karoline Medancic executed a promissory note promising to pay appellees $67,000 by November 1, 1997. This promissory note was also secured by a mortgage deed. Appellees further claimed that Mario and Marija Medancic unconditionally guaranteed the payment on the note. Because the promissory note had not been paid, appellees claimed that the mortgage was in default.

Likewise, on November 23, 1998, appellees filed a third foreclosure complaint alleging that Mario and Marija Medancic had executed a promissory note on July 3, 1995, promising to pay appellees the sum of $20,000 by November 1, 1995.4 Pursuant to the complaint, this promissory note was secured by a mortgage deed, and Mladen and Karoline Medancic unconditionally guaranteed its payment. As in the other complaints, appellees alleged lack of payment and default on the mortgage deed.5

In response to these complaints, appellants filed answers, along with a counterclaim for breach of contract involving written agreements to purchase certain real property from appellees, which were executed in August 1993 and June 1996.6

Eventually all three cases were consolidated by the trial court for purposes of adjudication. After this matter came on for a bench trial on December 6 and/or 7, 1999, the trial court issued two judgment entries on September 5, 2000.7

Insofar as appellees' foreclosure claims were concerned, the trial court found in their favor and ordered appellees to recover the following amounts on the promissory notes: $37,500, with interest, from A-Custom Builders; $67,000, with interest, from Karoline, Mario, and Marija Medancic; $20,000, with interest, from Mario, Marija and Karoline Medancic. Additionally, appellees were entitled to a judgment of foreclosure against the above named appellants if the money judgment was not paid.

With respect to the counterclaim for breach of contract, the trial court made the following findings of fact:

"The defendant Medancic Builders entered into a valid contract on August 31, 1993, to purchase certain parcels of land from plaintiffs [Mayers].

"The 1993 contract was replaced by a new contract on June 20, 1996, for the sale and purchase of certain parcels of land by and between Marcia A. Mayer and A-Custom Builders, Inc., with Mario Medancic, Maria Medancic, Mladen Medancic and Karoline D. Medancic as guarantors for A-Customer Builders, Inc.

"Prior to the execution of the June 20, 1996 contract, the Medancics, d.b.a. Medancic Builders, paid plaintiffs the sum of $175,000.00 for the acreage which was not subdivided and $30,000.00 for an additional sublot which was ultimately transferred to Mario and Maria Medancic. Subsequent to the execution of the 1996 contract, defendant A-Custom Builders, Inc., and/or its agents paid plaintiffs an additional $3,000.00 for unsubdivided acreage.

"Defendant A-Custom Builders, Inc., and its guarantors were in default of their obligation of payment under the August 3, 1993 and June 20, 1996 contracts for the acreage that was not already subdivided into buildable lots.

"* * *

"The agreement for the unsubdivided acreage clearly contemplated subdivision of the land followed by residential development. Due to a mutual mistake of fact, i.e., the `wetlands' condition of a significant part of the acreage, the contemplated subdivision and development was not possible. Accordingly, the agreements, to the extent that they represent [the] purchase of unsubdivided acreage for development, should be rescinded, and the monies paid therefor in the sum of $148,000 ($175,000 plus $3,000 paid less $30,000 (for Marion [sic] Medancic's residence) refunded to A-Custom Builders, Inc., plus interest at ten percent (10%) per year from the date of judgment."

In summation, the trial court rescinded those portions of the 1993 and 1996 contracts representing the purchase of unsubdivided acreage for development on the basis of mutual mistake concerning the wetlands condition on the acreage. As a result, appellees were ordered to refund $148,000 to A-Custom Builders.

Subsequently, on October 3, 2000, a nunc pro tunc order on the counterclaim was issued by the trial court to make minor corrections to the September 5, 2000 judgment entry. For instance, in the September 5, 2000 judgment entry, the figures of $3,000 and $30,000 were transposed, and this was corrected by the nunc pro tunc order.

It is from these judgments that appellants filed notices of appeal and now present the following assignments of error for our consideration:8

"[1.] Having rescinded the Agreement of 1993 and ordering Appellees to return funds paid to them thereunder by appellants, the Court erred in not ordering the funds returned with interest from the date of payment rather than the date of judgment.

"[2.] The Court erred in failing to order a set-off of funds it found due appellees and funds it found due appellants instead of ordering a sale of appellant's property since the funds due the appellants from appellees was [sic.] greater than the funds due on the foreclosed mortgage.

"[3.] The Court erred in granting judgment to appellees and ordering foreclosure of appellants' property when appellees were holding appellants' funds exceeding the amount due on said mortgages.

"[4.] The court erred in subtracting $30,000.00 from the $178,000.00 due appellants from appellees."

Appellants' first assignment of error concerns the decision of the trial court on the counterclaim wherein the court ordered appellees to refund $148,000 to A-Custom Builders. Here, appellants contend that this order of repayment should bear interest from the date of payment rather than from the date of judgment. According to appellants, the amount due was clear, based on certain cancelled checks made payable to appellees, which were admitted into evidence during the bench trial. Thus, appellants maintain that because the amount due was ascertainable, they are entitled to interest from the date of payment.

The claim for prejudgment interest with respect to appellant's counterclaim for breach of contract is governed by R.C. 1343.03(A).Chester v. Custom Countertop Kitchen, Inc. (Dec. 17, 1999), Trumbull App. No. 98-T-0193, unreported, 1999 WL 1299301, at 3. R.C. 1343.03(A) states in part:

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Bluebook (online)
Mayer v. Medancic, Unpublished Decision (12-21-2001), Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayer-v-medancic-unpublished-decision-12-21-2001-ohioctapp-2001.