Windward Ents., Inc. v. Valley City Dev. Group, L.L.C.

2019 Ohio 3419
Ohio Court of Appeals·Decided August 26, 2019·No. 18CA0001-M·Published·Cited by 10 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF MEDINA )

WINDWARD ENTERPRISES, INC. C.A. No. 18CA0001-M Appellant

v. APPEAL FROM JUDGMENT ENTERED IN THE

VALLEY CITY DEVELOPMENT GROUP COURT OF COMMON PLEAS LLC, et al. COUNTY OF MEDINA, OHIO CASE No. 15CIV1092

Appellees

DECISION AND JOURNAL ENTRY Dated: August 26, 2019

SCHAFER, Presiding Judge.

{¶1} Plaintiff/Counterclaim Defendant-Appellant, Windward Enterprises, Inc.

(“Windward”) appeals the judgment of the Medina County Court of Common Pleas. For the reasons that follow, we affirm.

I.

{¶2} Windward filed a complaint in the Medina County Court of Common Pleas against Valley City Development Group, LLC (“Valley City”), Hat Creek Co., Inc., Shannondoah LLC (“Shannondoah”), Sean Lackey, Michelle Lackey, and Gandalf’s Pub, alleging breach of a lease agreement and conversion of property. Windward is an Ohio corporation whose principals are Bruce Iacovelli and Joyce Hicks. Defendant-Appellee, Denise Pozderac, and Defendant/Counterclaim Plaintiff, Bryan Weber, are the principals of Defendant/Counterclaim Plaintiff, Valley City. The defendants all filed separate answers. Sean Lackey, Michelle Lackey, and Gandalf’s Pub filed counterclaims against Windward alleging

abuse of process. Valley City subsequently filed an Amended answer and counterclaim alleging cognovit judgment on a promissory note, breach of a loan agreement, breach of a security agreement, replevin, and breach of lease. Bryan Weber filed a counterclaim against Windward alleging negligence and violation of Ohio’s Dram Shop Act.

{¶3} The trial court granted Windward leave to file an amended complaint.

Windward’s amended complaint added Denise Pozderac as a defendant and alleged the following claims: (1) breach of lease against Valley City; (2) conversion of property against Valley City; (3) fraud against Pozderac and Valley City; and (4) piercing the corporate veil against Weber and Pozderac.

{¶4} This matter ultimately proceeded to a four day jury trial on Windward’s amended complaint against Defendant-Appellee Denise Pozderac, Defendant/Counterclaim Plaintiff- Appellee Valley City, Defendant/Counterclaim Plaintiff-Appellee Bryan Weber, Shannondoah, and Hat Creek, and on the counterclaims of Valley City, Weber, and Hat Creek against Windward. During trial, the trial court granted Windward’s oral motion to dismiss its claims against Weber, Pozderac, Hat Creek, and Shannondoah. The trial court also granted Valley City’s oral motion to dismiss its counterclaim against Windward for replevin. Finally, the trial court granted Windward’s motion for directed verdict as to Hat Creek’s counterclaims and thereafter dismissed the counterclaims.

{¶5} The remaining claims were submitted to the jury following trial and the jury returned the following verdicts: (1) in favor of Valley City and against Windward on Valley City’s breach of loan agreement claim in the amount of $10,470.00; (2) in favor of Valley City and against Windward on Valley City’s breach of lease claim in the amount of $28,723.00; (3) in favor of Windward and against Weber on Weber’s Dram Shop Act claim; (4) in favor of Valley

City on Windward’s breach of lease claim; and (5) in favor of Windward on Windward’s conversion claim in the amount of $0.00.

{¶6} The trial court thereafter entered judgment in accordance with the jury’s verdict and assessed all costs to Windward. The Medina County Clerk of Courts determined the total amount of costs in this case to be $3,622.78.

{¶7} Windward subsequently filed contemporaneous motions to vacate judgment and for judgment notwithstanding the verdict or for a new trial. Windward’s motion to vacate was made pursuant to Civ.R. 60(B)(1), (3), and (5), and asserted that the trial court had mistakenly assessed all costs to Windward since they were a prevailing party and Windward did not have the opportunity to approve the judgment entry submitted by the defendants to the trial court prior to the trial court issuing the entry. Windward’s motion for judgment notwithstanding the verdict and for a new trial argued that it was entitled to a new trial on either the conversion claim, the loan agreement claim, or both, since the weight of the evidence showed that Windward had suffered monetary damage due to the conversion of their property despite the jury’s award of $0.00. Valley City filed memorandums in opposition to both motions. The trial court ultimately denied Windward’s motions.

{¶8} Windward filed this timely appeal, raising three assignments of error for our review.

II.

Assignment of Error I

The court erred in denying [Windward]’s motion for judgment [notwithstanding the verdict] and a new trial as the jury’s verdict in regard to damages on [Windward]’s conversion claim was clearly unsupported by the evidence.

{¶9} Although Windward’s first assignment of error states that the trial court erred in denying its motion for judgment notwithstanding the verdict and a new trial, Windward concedes in the argument portion of the assignment of error that the trial court did not err in denying its motion for judgment notwithstanding the verdict and instead only challenges the trial court’s denial of its motion for a new trial based on Civ.R. 59. On appeal, Windward argues that the trial court abused its discretion when it denied Windward’s motion for a new trial because (1) the jury’s award is not supported by the evidence and is a manifest injustice; and (2) Valley City’s expert testified that the converted property had value.

{¶10} The facts relevant to this assignment of error are as follows. Windward entered into a lease agreement with Shannondoah to rent a building where it planned to run a restaurant. Contemporaneously, Windward entered into an asset purchase agreement with Hat Creek to purchase certain restaurant equipment to be used at the restaurant location. Pursuant to the agreement, the purchase price of the equipment was $200,000.00. Windward was to pay a total of $100,000.00 to Hat Creek on or before the closing date of the agreement and the remaining $100,000.00 was to be paid to Hat Creek over a five year period at 5 percent interest. Windward executed a promissory note evidencing the balance of the purchase agreement together with a security agreement pledging the assets as security for payment of its obligation pursuant to the note. Pursuant to the security agreement, the assets were to be kept and maintained at the restaurant except by prior written consent of Hat Creek. Shannondoah subsequently sold the building where the restaurant was located to Valley City and assigned Valley City the lease agreement it had with Windward.

{¶11} Windward eventually defaulted on both the lease agreement with Valley City and its obligation pursuant to its promissory note with Hat Creek. Windward was three months

behind in rent and owed a remaining balance of $38,233.78 for the restaurant equipment. At that point, Windward and Valley City entered into an agreement: Valley City would pay off the $38,233.78 debt Windward owed to Hat Creek, and Windward agreed to re-pay Valley City the debt owed plus the amount owed for missed rent payments over a five-year period. The new lease agreement included a provision stating that in addition to the increased monthly rental obligation, Windward agreed to pay Valley City a certain amount of money “for loan to payoff Hatcreek Company.”1

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Windward Ents., Inc. v. Valley City Dev. Group, L.L.C., 2019 Ohio 3419 (Ohio Ct. App. 2019).

2019 Ohio 3419 (Windward Ents., Inc. v. Valley City Dev. Group, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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