Uap-Columbus Jv326132 v. O. Valeria Stores, Inc., 07ap-614 (2-14-2008)

2008 Ohio 588
CourtOhio Court of Appeals
DecidedFebruary 14, 2008
DocketNo. 07AP-614.
StatusPublished
Cited by8 cases

This text of 2008 Ohio 588 (Uap-Columbus Jv326132 v. O. Valeria Stores, Inc., 07ap-614 (2-14-2008)) 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
Uap-Columbus Jv326132 v. O. Valeria Stores, Inc., 07ap-614 (2-14-2008), 2008 Ohio 588 (Ohio Ct. App. 2008).

Opinion

OPINION
{¶ 1} O. Valeria Stores, Inc., and Michael J. Young, defendants-appellants, appeal from a judgment of the Franklin County Court of Common Pleas, in which the court granted appellants' motion to vacate entry to allow reconsideration but overruled appellants' objections to the magistrate's decision.

{¶ 2} On May 3, 2005, appellants entered into a three-year lease to rent retail space at Lane Avenue Shopping Center ("shopping center") from UAP-Columbus JV326132 ("UAP"), appellee, with Young signing the lease personally as guarantor. *Page 2 Under the lease, appellants were to pay monthly rent beginning on June 3, 2005, as well as other charges, including a pro-rata share of common area maintenance expenses ("CAM"), real estate taxes, and a marketing charge. Appellants paid rent from June 2005 to November 2005. Because the store was struggling financially, Young claimed that he negotiated a new agreement with UAP to voluntarily vacate the premises without any obligation to pay further rent after November 2005. Appellants vacated the premises in March 2006. UAP took possession of the premises in April 2006, put up a temporary wall to cover the front of the store, placed "for lease" signs on both ends of the wall, and placed the location for lease with local realty agencies.

{¶ 3} On March 1, 2006, UAP filed a complaint, seeking to recover from appellants past due rent and future rent through May 2008. On September 8, 2006, UAP filed a motion for summary judgment. Appellants countered that UAP committed several breaches of contract that would have discharged their duties under the lease, UAP was barred from accelerating the rental payments based upon their later oral agreement whereby future rents would not be due if appellants vacated the premises, and UAP failed to mitigate its damages. On February 1, 2007, the trial court issued a judgment, granting UAP's motion for summary judgment with regard to appellants' breach of the lease. The trial court found that there were no factual disputes as to the mathematical calculation of amounts due and owing, and ordered damages for past due rents of $51,071.11 and future rents due in the amount of $76,456.74. However, the trial court found there were issues of fact remaining as to whether UAP mitigated damages and referred the mitigation issue to a magistrate. *Page 3

{¶ 4} A hearing was held before the magistrate on March 14, 2007. On April 3, 2007, the magistrate issued a decision, in which he entered judgment in favor of UAP for updated past due rents of $122,698.62 and updated future rents due of $45,448.57. Appellants filed objections to the magistrate's decision on April 17, 2007. On June 7, 2007, the trial court overruled the objections on the basis that appellants had failed to file a transcript of the proceedings before the magistrate. On June 13, 2007, appellants filed a motion to vacate and reconsider, asserting that a transcript had, in fact, been timely filed. On July 2, 2007, the trial court issued a judgment, granting appellants' motion to vacate entry to allow reconsideration, but overruling appellants' objections. Appellants appeal the judgment of the trial court, asserting the following assignments of error:

[I.] THE TRIAL COURT ERRED AS A MATTER OF LAW IN ADOPTING THE MAGISTRATE'S RECALCULATION OF THE AMOUNT OF PAST AND FUTURE RENT DUE AND OWING AS THOSE FINDINGS WERE BEYOND THE SCOPE OF THE COURT'S REFERRAL.

[II.] THE TRIAL COURT'S ADOPTION OF THE MAGISTRATE'S DETERMINATION OF THE AMOUNT DUE AND OWING IS ERRONEOUS AS A MATTER OF LAW AS IT IS BASED ON LATE CHARGES AND INTEREST WHICH ARE UNLAWFUL PENALTIES AND A DOUBLE RECOVERY OF DAMAGES.

[III.] THE TRIAL COURT ERRED AS A MATTER OF LAW IN ADOPTING THE MAGISTRATE'S FINDING THAT THE APPELLEE HAD MET ITS BURDEN OF MITIGATING ITS DAMAGES WHEN THE EVIDENCE ESTABLISHED THAT THE APPELLEE, IN FACT, CONCEALED THE AVAILABILITY OF THE PREMISE. ADDITIONALLY, THE FINDING WAS AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE.

[IV.] THE TRIAL COURT ERRED AS A MATTER OF LAW BY ERRONEOUSLY INTERPRETING THE LEASE WITH REGARD TO THE APPLICABLE CAM CHARGE.

*Page 4

{¶ 5} Appellants argue in their first assignment of error that the trial court erred when it adopted the magistrate's updated recalculation of the amount of past and future rents due and owing, as those findings were beyond the scope of the court's referral. Appellants point to the trial court's statement in its February 2, 2007 decision, "the Court finds that no factual disputes exist as to Plaintiff's mathematical calculation of the amounts due and owing. Thus, this matter shall proceed to trial solely on Defendants' affirmative defense of failure to mitigate damages." Appellants also point to Civ.R. 53(D)(1)(b), which provides, in pertinent part:

(D) Proceedings in Matters Referred to Magistrates.

(1) Reference by court of record.

* * *

(b) Limitation. A court of record may limit a reference by specifying or limiting the magistrate's powers, including but not limited to, directing the magistrate to determine only particular issues, directing the magistrate to perform particular responsibilities, directing the magistrate to receive and report evidence only, fixing the time and place for beginning and closing any hearings, or fixing the time for filing any magistrate's decision on the matter or matters referred.

Thus, appellants claim that the magistrate "took it upon himself to take new evidence as to the original `amount due and owing,'" which had already been decided by the trial court in its decision on summary judgment.

{¶ 6} We disagree with appellants' contentions. In his decision, the magistrate stated that UAP presented updated calculations at trial, which took into account the rents that had converted from future rents due to past rents due since the trial court's original *Page 5 judgment, plus the newly accumulated interest and late charges due on those updated amounts. The magistrate then explained:

The Magistrate allowed introduction of evidence explaining and updating the calculations of amounts due under the Lease for two reasons. First, Defendants took the position that the calculations should be put in evidence at trial because the calculations were not sufficiently explained in the affidavit submitted by Plaintiff or sufficiently addressed at the summary judgment stage; Plaintiff did not object to introducing updated calculations. Second, detailed information regarding the method used in making the calculations was necessary to provide a basis for the Magistrate to calculate the amount due and owing if Defendants' defense of failure to mitigate were wholly or partially successful.

{¶ 7} In addressing the same argument on objections as appellants raise herein, the trial court found that, although the court had previously stated that there was no factual dispute regarding UAP's mathematical calculation of damages, and the trial before the magistrate would proceed solely on appellants' affirmative defense of failure to mitigate, the parties presented evidence at the magistrate's hearing on the calculation of UAP's damages. Citing the above-quoted language from the magistrate's decision, the trial court found that the evidence submitted at the magistrate's hearing was presented at appellants' insistence and with both parties' consent.

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Bluebook (online)
2008 Ohio 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uap-columbus-jv326132-v-o-valeria-stores-inc-07ap-614-2-14-2008-ohioctapp-2008.