Riesterer v. Porter

2022 Ohio 1698
Ohio Court of Appeals·Decided May 20, 2022·No. E-21-005·Published·Cited by 1 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT

ERIE COUNTY

Roberta Jean Riesterer Court of Appeals No. E-21-005 Appellee Trial Court No. 2018-CV-0257 v. Michael E. Porter, et al. DECISION AND JUDGMENT Appellants Decided: May 20, 2022

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Linda R. Van Tine and Mark A. Stuckey, for appellee.

William H. Smith, Jr., for appellants.

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MAYLE, J.

{¶ 1} Appellants, Michael Porter and MPORT Home Improvement, LLC (“MPORT”), appeal the February 17, 2021 decision of the Erie County Court of Common Pleas granting summary judgment in favor of appellee, Roberta Riesterer, and warding her $27,755 in damages for Porter and MPORT’s breach of contract.1 For the following reasons, we reverse.

I. Background and Facts

{¶ 2} In October 2016, Porter and Riesterer signed a document regarding extensive remodeling work for a condominium that Riesterer owns. The document is divided into four sections. The first section includes the title “Proposal” followed by the name “MPORT Home Improvement LLC” and the company’s contact information. The rest of this section contains Riesterer’s name, some information about her property, and the date. The second section of the document begins, “We hereby submit specifications and estimates for[,]” followed by a handwritten list of remodeling tasks for the condominium. The third section starts, “We propose hereby to furnish material and labor * * * for the sum of:” followed by a blank line on which “$18,400 1/2 Down @ signing — progress pymt — BAL @ completion [sic]” is written. At the bottom of the third section is “Respectfully / submitted” followed by a blank line on which Porter signed only his name; he did not include the words “by” or “for,” his position with MPORT, his business title, or any other professional designation. The final section of the document includes the heading “Acceptance of Proposal” and was signed by Riesterer. There are

1 Porter and MPORT are not challenging that portion of the trial court’s summaryjudgment decision finding that MPORT is liable for breach of contract, and we are not addressing that portion of the decision on appeal.

also handwritten notations at the bottom of the page showing that Riesterer paid a total of $12,000 toward the agreed-upon price.

{¶ 3} MPORT did not complete the remodeling work on Riesterer’s condominium. In May 2018, Riesterer filed a complaint against “Michael E. Porter, Individually and, doing business as MPORT Home Improvement LLC,” alleging breach of contract due to the incomplete renovations.2

{¶ 4} During discovery, Riesterer’s attorney sent requests for admission to Porter and MPORT’s attorney, but Porter and MPORT did not respond. Consequently, the requests for admission were deemed admitted. As relevant here, the requests for admission included the facts that (1) Porter and MPORT’s failure to complete the performance required of them under the proposal was a breach of contract, (2) Porter, individually, performed most of the work at Riesterer’s condominium, and (3) regarding 15 specific portions of the remodel, Porter and MPORT failed to perform, performed in an unworkmanlike manner, or both.

{¶ 5} In February 2020, Riesterer filed a motion for summary judgment. The entirety of her argument was that the requests for admission that were deemed admitted proved that Porter, individually, and MPORT breached the contract and were liable to her for damages. In support of her motion, she included an affidavit from Anthony Schaefer,

2 The complaint also included Porter’s wife as a defendant and alleged claims of fraudulent transfer of real estate and violation of the Home Solicitation Sales Act, but those claims are not ripe for decision and are not before us in this appeal.

who claimed that he had “been active in the construction and remodeling industry for over 30 years.” Attached to Schaefer’s affidavit was an “Inspection Checklist”— apparently created by Riesterer’s attorneys—that listed each complaint that Riesterer had with MPORT’s work and asked Schaefer to rate his level of agreement with Riesterer’s assessment of the work on a scale of 1 to 5, with 1 meaning “Strongly Disagree” and 5 meaning “Strongly Agree.” Schaefer was also able to comment on each item in the checklist. Following his inspection, Schaefer also provided Riesterer with a “preliminary proposal to fix what is wrong with the work * * *.” He estimated that repairs would cost $27,755.

{¶ 6} In their response, Porter and MPORT conceded that MPORT breached the contract with Riesterer, but argued that Riesterer failed to prove that she could pierce the LLC veil to hold Porter personally liable on the contract. They also argued that the amount of damages was disputed because Riesterer’s attorneys had prevented Porter and MPORT’s expert from inspecting Riesterer’s condominium. Although they attached a copy of the October 2016 proposal to their response, Porter and MPORT did not include any other evidence or affidavits to support their arguments in opposition to Riesterer’s motion.

{¶ 7} In her reply, Riesterer argued for the first time that Porter “did not properly shield himself with the corporate veil” because he “did not otherwise designate himself (next to his signature) as a representative of MPORT.” (Emphasis deleted.) She also argued for the first time that an agency relationship was created between her and Porter because it was “Michael, individually, who performed all the remodeling work. Therefore, Michael is personally liable to Riesterer for damages.” (Emphasis deleted.) And Riesterer pointed out that Porter failed to present any Civ.R. 56(C) evidence that MPORT was, in fact, an LLC in good standing, so his arguments related to piercing the LLC veil were inapplicable.

{¶ 8} In its February 17, 2021 judgment entry, the trial court granted Riesterer’s motion for summary judgment. The court found that (1) Riesterer and MPORT entered into a contract for home improvements at Riesterer’s property, (2) Porter “signed without indicating he was signing on behalf of MPORT,” (3) “MPORT Home Improvement LLC” conceded that “MPORT Home Improvement LLC” failed to complete the terms of the contract, (4) Porter and MPORT failed to respond to Riesterer’s requests for admission, which were deemed admitted, and (5) Porter and MPORT conceded that “MPORT Home Improvement LLC” failed to perform under the contract.

{¶ 9} Based primarily on Porter and MPORT’s concessions, the trial court determined that Riesterer was entitled to summary judgment against MPORT. The court also held, without any further analysis or citation to case law that “Michael Porter signed the October 5, 2019 [sic] proposal without any designation as a representative of MPORT. Therefore, Michael Porter did not properly shield himself within the corporate veil and entered a contract between [Riesterer] and Michael Porter, individually[,]” and Riesterer was also entitled to summary judgment against Porter.

{¶ 10} Regarding Riesterer’s damages under the contract, the trial court found that Riesterer provided an expert opinion that she sustained damages of $27,755, and, although Porter and MPORT claimed that their attempts to have their expert inspect Riesterer’s property were blocked by Riesterer’s attorneys, they did not provide any evidence that they were prevented from providing their own estimate of Riesterer’s damages. The court accepted the amount proposed by Riesterer’s expert as the correct amount of damages, and awarded her a judgment of $27,755 against Porter and MPORT, jointly and severally.

{¶ 11} Porter and MPORT now appeal, raising two assignments of error:

Assignment of Error #1: The Trial Court Erred by Granting Appellee’s Motion for Summary Judgment as to Appellant, Michael C.

Porter’s Individual Liability Under the Contract.

Assignment of Error #2: The Trial Court Erred by Granting Appellee’s Motion for Summary Judgment as to an Amount of Damages as There are Genuine Issues of Material Fact as to the Amount of Damages[.]

II. Law and Analysis

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