RCI Asset Mgt., Inc. v. Cerni Motor Sales, Inc.

2012 Ohio 3007
CourtOhio Court of Appeals
DecidedJune 29, 2012
Docket10 MA 115
StatusPublished

This text of 2012 Ohio 3007 (RCI Asset Mgt., Inc. v. Cerni Motor Sales, 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
RCI Asset Mgt., Inc. v. Cerni Motor Sales, Inc., 2012 Ohio 3007 (Ohio Ct. App. 2012).

Opinion

[Cite as RCI Asset Mgt., Inc. v. Cerni Motor Sales, Inc., 2012-Ohio-3007.] STATE OF OHIO, MAHONING COUNTY

IN THE COURT OF APPEALS

SEVENTH DISTRICT

RCI ASSET MANAGEMENT, INC. ) CASE NO. 10 MA 115 ) PLAINTIFF-APPELLEE ) ) VS. ) OPINION ) CERNI MOTOR SALES, INC., et al. ) ) DEFENDANT-APPELLANT )

CHARACTER OF PROCEEDINGS: Civil Appeal from the Court of Common Pleas of Mahoning County, Ohio Case No. 09 CV 2

JUDGMENT: Affirmed.

APPEARANCES:

For Plaintiff-Appellee: Atty. Bryan M. Ridder Atty. Alan R. Kretzer 20 Federal Plaza West Suite M6 Youngstown, Ohio 44503

For Defendant-Appellant: Atty. Stuart A. Strasfeld Atty. David S. Barbee Atty. Elizabeth H. Farbman Roth, Blair, Roberts, Strasfeld & Lodge 100 Federal Plaza East, Suite 600 Youngstown, Ohio 44503

JUDGES:

Hon. Cheryl L. Waite Hon. Joseph J. Vukovich Hon. Mary DeGenaro Dated: June 29, 2012 [Cite as RCI Asset Mgt., Inc. v. Cerni Motor Sales, Inc., 2012-Ohio-3007.] WAITE, P.J.

{¶1} The dispute in this appeal is whether the trial court correctly returned a

$25,000 deposit made by Appellee RCI Asset Management, Inc. (“RCI”), that had

been paid to Appellant Cerni Motor Sales, Inc. (“Cerni Motors”), for the purchase of

50 used trucks. The sale never took place, leading to RCI to file a lawsuit in the

Mahoning County Court of Common Pleas against both Cerni Motors and Terry Eddy

(“Eddy”), an automobile broker who arranged the sale. One of the claims in the

lawsuit was for the return of the deposit based on the theory of unjust enrichment.

The trial court granted partial summary judgment based primarily on the deposition

testimony of John P. Cerni, II, the president of Cerni Motors. The record indicates

that there was no meeting of the minds of the parties regarding the purpose or

disposition of the deposit. The trial court correctly ruled that the deposit should be

returned. Appellant’s assignments of errors are overruled and the judgment of the

trial court is affirmed.

History of the Case

{¶2} In May and June of 2008, there were discussions between RCI, Cerni

Motors, and Eddy regarding the sale of 50 trucks. Each truck was potentially worth

over $26,000, and the total sale would have been worth over $1 million. At no time

did RCI or Cerni Motors ever directly communicate with each other about this sale.

Each side was communicating only with Eddy. At the end of May or early June 2008,

RCI made a wire transfer of $25,000 to Cerni Motors as a deposit on the potential

sale of the trucks. The sale did not take place, and RCI soon took measures to have -2-

its deposit returned, to no avail. There does not appear to be any dispute between

the parties on these basic facts.

{¶3} On January 2, 2009, RCI filed a three-count complaint against Cerni

Motors and Eddy alleging breach of contract, conversion, and breach of warranty.

On December 8, 2009, RCI amended its complaint to add a claim of unjust

enrichment against Cerni Motors for return of the $25,000 deposit. Cerni Motors filed

an answer to the amended complaint; Eddy did not. On January 27, 2010, RCI filed

a motion for summary judgment on the unjust enrichment claim. On March 18, 2010,

the court awarded RCI default judgment on its claims against Eddy. This constituted

a final appealable order and was not appealed.

{¶4} On June 30, 2010, the court awarded summary judgment to RCI on the

unjust enrichment claim against Cerni Motors. Final appealable order language was

not contained in the judgment entry. A notice of appeal was filed on July 14, 2010.

On August 4, 2010, we gave the parties 30 days to obtain a final appealable order.

On September 17, 2010, the court amended the judgment entry to include the “no

just reason for delay” language required by Civ.R. 54(B) to render the judgment as a

final appealable order. We then allowed the appeal to proceed. Both Cerni Motors

and RCI have filed briefs on appeal. There are three assignments of error, all of

which allege that the trial court should not have granted summary judgment. Thus,

they will be treated together. -3-

Assignment of Error No. 1

The trial court erred in granting the Plaintiff-Appellee’s Motion for

Summary Judgment when it determined that Terry Eddy was not acting

as an agent for Plaintiff-Appellee, RCI Asset Management, Inc.

Assignment of Error No 2

The trial court erred in granting the Plaintiff-Appellee’s Motion for

Summary Judgment when it determined that there was no meeting of

the minds between the parties to the underlying sales transaction.

Assignment of Error No. 3

The trial court erred in granting the Plaintiff-Appellee’s Motion for

Summary Judgment when it determined that Defendant-Appellant must

return the entire deposit to the Plaintiff-Appellee.

{¶5} This appeal challenges an award of summary judgment on an unjust

enrichment claim. An appellate court conducts a de novo review of a trial court's

decision to grant summary judgment, using the same standards as the trial court as

set forth in Civ.R. 56(C). Grafton v. Ohio Edison Co., 77 Ohio St.3d 102, 105, 671

N.E.2d 241, (1996). Before summary judgment can be granted, the trial court must

determine that (1) no genuine issue as to any material fact remains to be litigated, (2)

the moving party is entitled to judgment as a matter of law, and (3) it appears from

the evidence that reasonable minds can come to but one conclusion, and viewing the

evidence most favorably in favor of the party against whom the motion for summary -4-

judgment is made, the conclusion is adverse to that party. Temple v. Wean United,

Inc., 50 Ohio St.2d 317, 327, 364 N.E.2d 267 (1977). When a court considers a

motion for summary judgment, the facts must be taken in the light most favorable to

the nonmoving party. Id.

{¶6} “[T]he moving party bears the initial responsibility of informing the trial

court of the basis for the motion, and identifying those portions of the record which

demonstrate the absence of a genuine issue of fact on a material element of the

nonmoving party's claim.” (Emphasis deleted.) Dresher v. Burt, 75 Ohio St.3d 280,

296, 662 N.E.2d 264 (1996). If the moving party carries its burden, the nonmoving

party has the reciprocal burden of setting forth specific facts showing that there is a

genuine issue for trial. Id. at 293. In other words, in the face of a properly supported

motion for summary judgment, the nonmoving party must produce some evidence

that suggests that a reasonable factfinder could rule in that party's favor. Brewer v.

Cleveland Bd. of Edn., 122 Ohio App.3d 378, 386, 701 N.E.2d 1023 (8th Dist.1997).

{¶7} RCI relied on the theory of unjust enrichment as the basis for seeking

the return of its $25,000 deposit in a failed transaction for the purchase of 50 trucks.

In Ohio, unjust enrichment is a claim sounding in quasi-contract that arises out of the

obligation created by law on a party holding some benefit that he is not justly and

equitably entitled to retain. Hummel v. Hummel, 133 Ohio St. 520, 527, 14 N.E.2d

923 (1938). The equitable theory of unjust enrichment is not available for use where

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