Village of Seaman v. Altus Metals, Inc., Unpublished Decision (3-24-2000)

CourtOhio Court of Appeals
DecidedMarch 24, 2000
DocketCase No. 99 CA 683.
StatusUnpublished

This text of Village of Seaman v. Altus Metals, Inc., Unpublished Decision (3-24-2000) (Village of Seaman v. Altus Metals, Inc., Unpublished Decision (3-24-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Village of Seaman v. Altus Metals, Inc., Unpublished Decision (3-24-2000), (Ohio Ct. App. 2000).

Opinion

DECISION AND JUDGMENT ENTRY
This is an appeal from an Adams County Common Pleas Court judgment entered in favor of Altus Metals, Inc., defendant below and appellee herein. The trial court concluded that appellee is the rightful owner of real property that the Village of Seaman, plaintiff below and appellant herein, previously had conveyed to appellee.

Appellant raises the following assignments of error for review:

FIRST ASSIGNMENT OF ERROR:

"THE TRIAL COURT ERRED WHEN IT FAILED TO ORDER THE DEED CANCELED AS AN EQUITABLE REMEDY."

SECOND ASSIGNMENT OF ERROR:

"THE TRIAL COURT ERRED WHEN IT FAILED TO FIND A CONSTRUCTIVE TRUST AROSE AS A RESULT OF THE CONVEYANCE BY DEED TO ALTUS AND CANCELLATION OF LAND CONTRACT PURSUANT TO ALTUS' REQUEST."

THIRD ASSIGNMENT OF ERROR:

"THE TRIAL COURT ERRED WHEN IT FAILED TO REFORM THE DEED AS AN EQUITABLE REMEDY."

Our review of the record reveals the following relevant facts. The Village of Seaman is located in an economically depressed region. In an effort to bring industry to the area, the Village agreed to sell appellee two parcels of real estate. Appellee had advised the Village that it would use the property for manufacturing purposes and that it would help generate employment for local residents.

On February 8, 1990, the parties signed a land contract. The contract provided that appellee "shall establish a business for the principal purpose of manufacture of metal products" and "shall construct a suitable facility for it's [sic] manufacturing purposes." The contract further specified that appellee would employ local residents.

The contract also contained a clause that stated:

"The parties specifically agree that the construction of a suitable and permanent manufacturing facility, as well as employment of area residents, is the essence of purpose of this contract. If the vendee fails in any term of consideration this agreement shall automatically terminate and become null and void.

* * * *

Upon fulfillment of the obligations of the vendee, the vendor shall convey the subject premises to the vendee by Warranty Deed."

The parties subsequently executed an addendum to the land contract. The addendum specified that in the event of default of Altus Metals of any provision of said land contract, acreage deeded to Altus Metals by said Village shall revert to the Village of Seaman at the selling price of $1.00 per acre.

On April 19, 1991, appellant conveyed by deed the real property to appellee. The deed contained no restrictions relating to the use or enjoyment of the real property. In October of 1991, the parties canceled the land contract.

Subsequently, appellee's attempt to establish a manufacturing business and to employ local residents failed. Appellant thus sought to enforce its right under the land contract to declare the transaction null and void. Appellee refused to recognize appellant's right to a return of the property.

On October 23, 1997, appellant filed a complaint for cancellation of the deed. Appellant alleged that there had been a failure of consideration because appellee failed to comply with the land contract. Appellant subsequently filed an amended complaint alleging a cause of action for imposition of a constructive trust and a cause of action alleging reformation of the deed due to a mutual mistake.

On September 10, 1999, following a bench trial, the trial court entered judgment in appellee's favor. The court found that the land contract had merged into the deed and that appellant delivered the deed to appellee free of restrictions. The court further found that: (1) appellee had not engaged in any type of fraudulent conduct during the transactions; (2) there had not been a failure of consideration; (3) appellee had not been unjustly enriched; and (4) appellant failed to establish a mutual mistake. The court thus denied appellant's request to: (1) cancel the deed; (2) impose a constructive trust; or (3) reform the deed. Appellant filed a timely notice of appeal.

I
In its first assignment of error, appellant contends that the trial court erred by failing to conclude that appellant was entitled to a cancellation of the deed. Appellant asserts that it is entitled to a cancellation of the deed for two primary reasons. First, appellant argues that appellee misrepresented the facts underlying the cancellation of the land contract.1 Appellant alleges that it agreed to cancel the land contract and to convey the land to appellee by deed upon appellee's assurances that appellee would continue to fulfill the conditions set forth in the land contract. Appellant appears to argue that because appellee allegedly agreed that the provisions of the land contract would survive the conveyance of the deed and because appellee subsequently failed to fulfill its alleged oral promise to continue to comply with the terms of the land contract, appellee's actions constitute misrepresentation.

Second, appellant contends that it is entitled to have the deed canceled due to a failure of consideration. Appellant contends that appellee's promises contained within the land contract constituted the consideration for the deed and that because appellee failed to fulfill the terms of the land contract, a failure of consideration resulted.

Appellee argues that appellant may not maintain an action upon the land contract. Appellee notes that the provisions of the land contract were merged into the deed. Appellee further notes that the merger rule may not apply if fraud or mistake occurred in the transaction, but asserts that in the case sub judice appellant failed to establish any applicable exception.

Initially, we note that judgments supported by competent, credible evidence will not be reversed. See Vogel v. Wells (1991), 57 Ohio St.3d 91, 566 N.E.2d 154; Ross v. Ross (1980),64 Ohio St.2d 203, 414 N.E.2d 426; C.E. Morris v. Foley Constr. Co. (1978), 54 Ohio St.2d 279, 376 N.E.2d 578, syllabus. In determining whether a trial court's judgment is against the manifest weight of the evidence, a reviewing court must not re-weigh the evidence. Seasons Coal Co. v. Cleveland (1984),10 Ohio St.3d 77, 79-80, 461 N.E.2d 1273, 1276. An appellate court should not substitute its judgment for that of the trial court when competent, credible evidence going to all of the essential elements of the case exists. As the court stated in Seasons Coal,10 Ohio St.3d at 80, 461 N.E.2d at 1276:

"The underlying rationale of giving deference to the findings of the trial court rests with the knowledge that the trial judge is best able to view the witnesses and observe their demeanor, gestures and voice inflections, and use these observations in weighing the credibility of the proffered testimony."

The construction of written instruments is a matter of law.

Alexander v. Buckeye Pipe Line Co. (1978), 53 Ohio St.2d 241,374 N.E.2d 146, paragraph one of the syllabus.

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Bluebook (online)
Village of Seaman v. Altus Metals, Inc., Unpublished Decision (3-24-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-seaman-v-altus-metals-inc-unpublished-decision-3-24-2000-ohioctapp-2000.