Schiavoni v. Steel City Corporation

727 N.E.2d 967, 133 Ohio App. 3d 314
CourtOhio Court of Appeals
DecidedMarch 29, 1999
DocketCASE NO. 97CA211.
StatusPublished
Cited by12 cases

This text of 727 N.E.2d 967 (Schiavoni v. Steel City Corporation) 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
Schiavoni v. Steel City Corporation, 727 N.E.2d 967, 133 Ohio App. 3d 314 (Ohio Ct. App. 1999).

Opinion

Vukovich, Judge.

The following appeal arises from the judgment of the Mahoning County Court of Common Pleas dismissing a complaint alleging tortious interference with a contract. For the reasons set forth below, the judgment of the trial court is reversed and this cause is remanded.

I. FACTS

On July 16, 1997, Louis Schiavoni filed a complaint in the Mahoning County Court of Common Pleas sounding in tortious interference with a contractual relationship. The complaint alleged that Steel City Corporation, appellee, interfered with a contract between Schiavoni and Steven Olenick as related to Olenick’s Ohio workers’ compensation claim. Schiavoni alleged that he had entered into a contract with Olenick that would entitle him to a one-third contingency fee in return for his representation of Olenick regarding the workers’ compensation claim. Furthermore, Schiavoni alleged that appellee commenced *316 settlement negotiations and ultimately secured an agreement that settled the claim without his knowledge. These actions were viewed not only as depriving Schiavoni of his one-third fee under the contract but also as having settled the claim for much less than its actual value. On July 25, 1997, the complaint was amended to add Schiavoni & Schiavoni, L.P.A. as a plaintiff to the foregoing action. As such, Schiavoni and Schiavoni & Schiavoni, L.P.A. will collectively be referred to as “appellants” herein.

On August 19, 1997, appellee filed its answer to the complaint in conjunction with a motion to dismiss appellants’ complaint for failure to state a claim upon which relief can be granted pursuant to Civ.R. 12(B)(6). In its motion, appellee argued that appellants had failed to properly allege all the elements of an action for tortious interference with a contractual relationship and as such the complaint should be dismissed. Appellants responded to appellee’s motion on September 24, 1997, when they filed a memorandum opposing appellee’s motion to dismiss. Additionally, appellants filed a second amended complaint upon leave of the trial court.

Having reviewed the respective arguments, the trial court sustained appellee’s motion to dismiss on October 14, 1997. In doing so, the trial court noted that the actions of appellee in dealing directly with Olenick and thereby circumventing appellants did not constitute tortious interference with a contractual relationship. In the trial judge’s words, in circumstances such as these, counsel should “ ‘save the stamp’ and write off as a bad experience or a good learning experience, whichever applies, and don’t let it happen again.” It is from this decision that appellants filed a timely notice of appeal on October 21,1997.

Appellants allege a single assignment of error on appeal.

II. ASSIGNMENT OF ERROR

Appellants’ assignment of error reads:

“The trial court erred in summarily dismissing the complaint pursuant to Civil Rule 12(B)(6) for failure to state a claim where the complaint, as amended, set forth all essential elements necessary to state a cause of action for tortious interference with contract as set forth by the Ohio Supreme Court in [Kenty v. Transam. Premium Ins. Co. (1995), 72 Ohio St.3d 415, 650 N.E.2d 863].”

Appellants argue that the trial court improperly dismissed their complaint as all essential elements of the tort had been alleged. In that the trial court was dealing with a Civ.R. 12(B)(6) motion, appellants contend that all material allegations in the complaint and all reasonable inferences drawn therefrom had to be construed in their favor. If the trial court had properly applied this standard, *317 appellants conclude that the motion to dismiss should have been overruled and the complaint should have been heard on its merits.

A. APPLICABLE LAW

A motion to dismiss for failure to state a claim can be granted only when it appears “beyond doubt from the complaint that the plaintiff can prove no set of facts entitling him to recovery.” Cleveland Elec. Illum. Co. v. Pub. Util. Comm. (1996), 76 Ohio St.3d 521, 524, 668 N.E.2d 889, 891, citing O’Brien v. Univ. Community Tenants Union, Inc. (1975), 42 Ohio St.2d 242, 245, 71 O.O.2d 223, 224-225, 327 N.E.2d 753, 754-755. Further, the factual allegations of the complaint as well as all reasonable inferences derived therefrom must be taken as true when addressing a motion to dismiss pursuant to Civ.R. 12(B)(6). Vail v. Plain Dealer Publishing Co. (1995), 72 Ohio St.3d 279, 280, 649 N.E.2d 182, 184. In resolving a motion to dismiss for failure to state a claim upon which relief can be granted, a trial court may look only to the complaint to determine whether the allegations are legally sufficient to state a claim. Hanson v. Guernsey Cty. Bd. of Commrs. (1992), 65 Ohio St.3d 545, 548, 605 N.E.2d 878, 380-381. A trial court may not use the motion to summarily review the merits of the cause of action. State ex. rel. Martinelli v. Corrigan (1994), 68 Ohio St.3d 362, 363, 626 N.E.2d 954, 955-956.

Appellate review of a ruling on a motion to dismiss for failure to state a claim presents a question of law. Cleveland Elec. Illuminating Co., supra, at 523, 668 N.E.2d at 890-891. As such, we shall address this matter using a de novo standard of review.

The Ohio Supreme Court first formally recognized a cause of action for tortious interference with a contract in Kenty v. Transam. Premium Ins. Co. (1995), 72 Ohio St.3d 415, 650 N.E.2d 863. In this decision, the court set forth the elements of such an action as: (1) the' existence of a contract, (2) the wrongdoer’s knowledge of the contract, (3) the wrongdoer’s intentional procurement of the contract’s breach, (4) lack of justification, and (5) resulting damages. Id. at 419, 650 N.E.2d at 866-867. In the event a complaint fails to provide allegations regarding each of these elements, the complaint can properly be dismissed for failure to state a claim upon which relief can be granted.

B. ANALYSIS

The resolution of this appeal turns upon the sufficiency of the allegations in appellants’ complaint as related to the elements of a tortious interference with a contract cause of action. Appellants’ complaint states:

*318 “3. Plaintiff alleges that on September 13, 1995, Plaintiff entered into a contingency fee agreement with Steven Olenik [sic ] (hereinafter referred to as ‘Client’) to represent Client in his Workers’ Compensation claim. * * *

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
727 N.E.2d 967, 133 Ohio App. 3d 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schiavoni-v-steel-city-corporation-ohioctapp-1999.