Unick v. Pro-Cision, Inc.

2011 Ohio 1342
CourtOhio Court of Appeals
DecidedMarch 16, 2011
Docket09 MA 171
StatusPublished
Cited by17 cases

This text of 2011 Ohio 1342 (Unick v. Pro-Cision, 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
Unick v. Pro-Cision, Inc., 2011 Ohio 1342 (Ohio Ct. App. 2011).

Opinion

[Cite as Unick v. Pro-Cision, Inc., 2011-Ohio-1342.] STATE OF OHIO, MAHONING COUNTY

IN THE COURT OF APPEALS

SEVENTH DISTRICT

THOMAS UNICK, et al., ) ) CASE NO. 09 MA 171 PLAINTIFFS-APPELLANTS, ) ) - VS - ) OPINION ) PRO-CISION, INC., et al., ) ) DEFENDANTS-APPELLEES. )

CHARACTER OF PROCEEDINGS: Civil Appeal from Common Pleas Court, Case No. 05CV1401.

JUDGMENT: Affirmed.

APPEARANCES: For Plaintiffs-Appellants: Attorney Geoffrey Eicher Semple & Eicher Co. LPA National City Center Seventh Floor, One Cascade Plaza Akron, OH 44308

For Defendants-Appellees: Attorney Joseph P. Sontich, Jr. Sontich & Sontich 1032 Boardman-Canfield Rd. Suite 101 Youngstown, OH 44512

JUDGES: Hon. Mary DeGenaro Hon. Gene Donofrio Hon. Joseph J. Vukovich

Dated: March 16, 2011

DeGenaro, J. -2-

{¶1} Appellant, Thomas Unick, appeals the September 10, 2009 judgment of the Mahoning County Court of Common Pleas, which denied his request for $123,350.60 in legal fees, and reaffirmed a July 22, 2008 partial summary judgment award of $9,175.00 against Appellee, Pro-Cision, Inc., for breach of contract. {¶2} On appeal, Unick does not refute the denial of $76,098.88 of the fees requested, but argues that the trial court abused its discretion in refusing to grant the remaining $47,851.72 of the requested attorney fees for the breach of contract action. Unick argues that his failure to provide evidence of the actual hours worked or the firms' hourly rates should not have been dispositive in the determination of whether the requested attorney fees were reasonable. {¶3} Unick failed to provide evidence of the rates or hours worked by his attorneys, and he also failed to separate out many legal fees for services that had already been compensated in other court proceedings. Unick did not present competent credible evidence of reasonable attorney fees, and therefore did not meet his burden of proof. Accordingly, the trial court's denial of Unick's attorney fees is affirmed. Facts and Procedural History {¶4} During the spring of 1999, Unick and Kovachik jointly formed Pro-Cision, Inc. They each invested $25,000.00 in the company, and each had a 50% ownership interest. In order to obtain lines of credit for the company, both Kovachik and Unick pledged personal assets as collateral. Unick pledged much more than Kovachick, including his tools and power equipment, his home, and two vehicles. Pursuant to the terms of the parties' corporation agreement, each owner had the right of first refusal to the other owner's stock ownership in the event of a buy-out. {¶5} Soon after forming the company, Unick's son became ill and Unick needed to liquidate his stock in the company in order to raise money to care for his son. Subsequent to negotiations between the two parties, they entered a Stock Sale Agreement on February 7, 2000, wherein Unick was identified as the seller and Pro- Cision as the purchaser. The agreement required Pro-Cision to pay $15,000 for Unick's stock in monthly installments of $275, with a final lump sum payment of $8,400. The -3-

agreement states that Pro-Cision had effected the removal of Unick's name from certain corporate obligations, including a loan from Second National Bank. However, the agreement notes that Pro-Cision had been unable to remove Unick's name from an obligation to National Machine Tool Financial Corporation, and thus Kovachick personally joined Pro-Cision to indemnify Unick from that particular obgligation. {¶6} The agreement further states that Pro-Cision will indemnify Unick and hold him harmless "from all loss, cost, damage, or expense, including reasonable attorneys' fees arising from" all liabilities of Pro-Cision and any taxes owed, as well as any "misrepresentation, breach of warranty, or default in any obligation on the part of [Pro- Cision] under this agreement." Finally, the agreement designates responsibility for litigation expenses as follows: "In the event of a default under this agreement, the defaulting party shall reimburse the nondefaulting party or parties for all costs and expenses reasonably incurred by the nondefaulting party or parties in connection with the default, including without limitation attorney's fees. Additionally, in the event a suit or action is filed to enforce this agreement, the prevailing party or parties shall be reimbursed by the other party for all costs and expenses incurred in connection with the suit or action, including without limitation, reasonabe attorney's fees at the trial level and on appeal." {¶7} Pro-Cision initially made a few installment payments per the agreement, but quickly ceased paying as required by the agreement. Additionally, the removal of Unick's name from the Second National Bank loan did not occur. Despite numerous requests, Second National Bank refused to release Unick as a guarantor, due to Pro-Cision's poor financial condition. Unick stated that he discovered the loan issue when he unsuccessfully sought to refinance his house, around April of 2000. {¶8} Unick retained Harrington Hoppe & Mitchell ("HHM") to determine his rights and potential actions regarding the Stock Sale Agreement. Unick incurred $32,251.72 in fees from HHM's services from 2001 to 2008. On April 17, 2002, Unick filed for Chapter 7 bankruptcy, primarily using the services of another attorney who specialized in bankruptcy proceedings, incurring $1,000 in attorney's fees. -4-

{¶9} Unick's attorney at the time of the Stock Sale Agreement had represented to Unick that he had been released as guarantor of the Second National Bank loan, and Unick relied on that statement when executing the agreement. Unick filed a malpractice suit against his original attorney on September 10, 2002, primarily using the services of Semple and Eicher throughout the malpractice proceedings. Unick obtained a judgment for $250,000 on September 22, 2004 but settled for a reduced amount of $200,000 due to the malpractice insurance coverage limits. The judgment award was deposited into Unick's bankruptcy trust, and on March 21, 2005, the bankruptcy court authorized the trustee to pay Eicher $61,201.80 for legal fees and expenses owed by Unick related to the malpractice action. {¶10} On April 13, 2005, represented by HHM, Unick filed a complaint against Pro-Cision, and against Kovachik individually, claiming breach of contract, promissory estoppel, misrepresentation, fraud in the inducement, and anticipatory repudiation. During the discovery process, Unick filed a Civ.R. 37 motion for sanctions against Pro- Cision for its failure to comply with court orders for discovery, and requested $1950.50 in attorney's fees. The trial court granted the motion on May 17, 2006, but summarily concluded that the reasonable attorney's fees associated with the motion were $450.00. {¶11} On February 28, 2007, Unick filed a Partial Motion for Summary Judgment, solely addressing the breach of contract claim. Unick demanded $9,175.00, which was the amount still due under the parties' repayment clause of the Stock Sale Agreement. Unick also demanded $216,720.68 for all losses accrued as a result of Pro-Cision's and Kovachik's failure to indemnify Unick from the Second National Bank loan, including, among other things, all legal expenses during the bankruptcy, malpractice, and breach of contract proceedings up to the present date. According to the docket, on March 21, 2007, Pro-Cision filed a motion contra summary judgment, and a motion to strike the supporting affidavit from Unick's motion, but both of these motions are missing from the record. {¶12} On June 22, 2007, the magistrate concluded that Pro-Cision and Kovachik had breached both the payment portion and the indemnification portion of the parties' -5-

agreement.

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Bluebook (online)
2011 Ohio 1342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unick-v-pro-cision-inc-ohioctapp-2011.