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

2019 Ohio 3419
CourtOhio Court of Appeals
DecidedAugust 26, 2019
Docket18CA0001-M
StatusPublished
Cited by10 cases

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

Opinion

[Cite as Windward Ents., Inc. v. Valley City Dev. Group, L.L.C., 2019-Ohio-3419.]

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 2

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 3

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. 4

{¶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 5

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

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Cite This Page — Counsel Stack

Bluebook (online)
2019 Ohio 3419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/windward-ents-inc-v-valley-city-dev-group-llc-ohioctapp-2019.