Word of God Church v. Stanley

2011 Ohio 2073
Ohio Court of Appeals·Decided April 29, 2011·No. 23985·Published·Cited by 4 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

THE WORD OF GOD CHURCH :

: Appellate Case No. 23985 Plaintiff-Appellee :

: Trial Court Case No. 07-CV-4467 v. :

: (Civil Appeal from JASON STANLEY, et al. : (Common Pleas Court)

:

Defendant-Appellants :

:

...........

OPINION

Rendered on the 29th day of April, 2011.

...........

TERRY L. LEWIS, Atty. Reg. #0010324, Terry L. Lewis Co., LPA, 111 West First Street, Suite 1000, Dayton, Ohio 45402 Attorney for Plaintiff-Appellee

SCOTT G. OXLEY, Atty. Reg. #0039285, Scott G. Oxley Co., LPA, 325 North Main Street, Suite 204, Springboro, Ohio 45066 Attorney for Defendant-Appellant

.............

HALL, J.

{¶ 1} Jason Stanley appeals from a jury verdict in favor of appellee Word of God Church on its claims against him for negligence, breach of contract, and fraud. The claims stemmed from allegedly faulty work performed by Stanley and another contractor, Thomas

Hemmelgarn, when they erected a new worship facility for the church.

{¶ 2} Stanley advances six assignments of error on appeal. First, he contends the trial court erred in granting the church a directed verdict on the invalidity of a release agreement he signed. Second, he claims the jury erred in finding that he had entered into a partnership or joint venture with Hemmelgarn.1 He further claims the trial court erred in prohibiting him from presenting evidence or argument about the partnership or joint venture being dissolved. Third, he argues that the trial court erred in allowing the church to introduce evidence about the existence or non-existence of liability insurance. Fourth, he asserts that the trial court erred in denying his motion for a directed verdict on the issue of whether a partnership or joint venture existed. Fifth, he contends the trial court erred in instructing the jury on the issue of fraud and in failing to sustain his motion for a directed verdict on that issue. Alternatively, he claims the weight of the evidence establishes that he did not commit fraud. Sixth, he argues that the trial court erred in denying his motion for a directed verdict on a proximate cause issue.

{¶ 3} The record reflects that Garnell Crawford, the pastor of the Word of God Church, met with Stanley and Hemmelgarn in the summer of 2006 to discuss their interest in constructing a new worship facility. At that time, church members had acquired a parcel of land, cleared the property, and purchased a large, prefabricated building. Crawford was interested in having Stanley and Hemmelgarn erect the steel frame and assemble the building. After some discussions, Hemmelgarn drafted a proposed labor contract for the project. The

1

At one point, Stanley contends the trial court erred in finding a partnership or joint venture. (Appellant’s brief at 2). Later, however, he claims the jury erred in finding a partnership or joint venture. (Id. at 14). The record reveals that the jury actually found the existence of a partnership or joint venture, not the trial court.

proposal identified “Stanley/Hemmelgarn” as the “Builders-SubContractors.” It provided for Stanley and Hemmelgarn to construct the building for $36,800 to be paid in weekly draws based on total hours worked. Crawford made no changes to the proposal, took it to the church’s board, and obtained approval. Crawford, Stanley, and Hemmelgarn signed the contract on June 26, 2006. The parties also entered into a separate contract that awarded Stanley and Hemmelgarn $9,500 to rent construction equipment.

{¶ 4} Later that summer, Stanley and Hemmelgarn informed Crawford that they were having trouble erecting the structural steel. According to Hemmelgarn, labeling and numbering on the steel beams had worn away since the building package had been delivered in 2004. As a result of delays caused by the problem, Stanley and Hemmelgarn asked Crawford for another $20,510 to cover their increased labor expenses. They supported the request with a written amendment to the contract. The church’s board approved the amendment, raising the total project cost (labor plus equipment rental) to more than $66,000.

{¶ 5} Thereafter, Stanley and Hemmelgarn continued their work on the building.

They took weekly draws against the total contract price based on the number of hours worked multiplied by an aggregate sum of $92 per hour. In October 2006, the structural steel had been set and work had begun on sheathing and siding around the steel. By that time, Crawford already had paid Stanley and Hemmelgarn draws of approximately $56,000 against the $66,000 total project bid.

{¶ 6} On October 12, 2006, Stanley met Crawford at a fast-food restaurant and presented him with a written release agreement. Stanley explained that he was having personal and professional problems and claimed that he could not devote the necessary time to the construction project. As a result, he asked Crawford to release him from the agreement to erect the worship facility. Crawford agreed and signed the release, which provided in pertinent part: “Jason Stanley is released as a party to these contracts and Jason Stanley shall have no further rights, duties or obligations under or arising from the contracts, including no obligation to perform further work during construction completion or under warranty thereafter and the parties release and discharge Jason Stanley and hold him harmless thereon.”

{¶ 7} Hemmelgarn also signed the release and continued the project from that point on without Stanley’s help. On December 9, 2006, a severe storm with high winds hit the area. As a result of the storm, Crawford had the building inspected and discovered significant problems beyond anything caused by the wind. In particular, the inspection revealed that the steel frame was not plumb, that the steel had been incompletely and incorrectly assembled, and that other material problems existed. The inspector recommended disassembling the building, straightening the steel, if possible, and then reinstalling new insulation, roofing, siding, and trim. The inspector characterized the building as “unsafe in its current condition,” adding that it “obviously [had] been erected by inexperienced or otherwise unqualified people.” At trial, Crawford presented evidence that it would cost more than $201,000 for labor and new materials to disassemble the building and put it together correctly.

{¶ 8} Following the presentation of evidence, the trial court entered a directed verdict in favor of the church on the invalidity of the release agreement between Crawford and Stanley. The trial court found, for various reasons, that the release was unenforceable against the church. In making this determination, the trial court specifically cited insufficiency of the consideration for the release, the existence of a mutual mistake, and unconscionability. The jury subsequently found in the church’s favor on its claims against Stanley for negligence, breach of contract, and fraud. The trial court entered final judgment against Stanley and Hemmelgarn for $201,810 in compensatory damages, $2,200 in punitive damages, and $55,559.75 in attorney fees.2 This timely appeal followed.

{¶ 9} In his first assignment of error, Stanley contends the trial court erred in granting the church a directed verdict on the invalidity of the release agreement. 3 In support, he disputes the trial court’s finding that he failed to provide consideration in exchange for Crawford releasing him from the contracts. Stanley contends his own testimony, if believed, would support a finding that he forfeited compensation for twenty to thirty hours of work in exchange for the release.

Free access — add to your briefcase to read the full text and ask questions with AI

Word of God Church v. Stanley, 2011 Ohio 2073 (Ohio Ct. App. 2011).

2011 Ohio 2073 (Word of God Church v. Stanley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Levy v. Seiber
2016 Ohio 68 (Ohio Court of Appeals, 2016)
State v. Bogan
2012 Ohio 3712 (Ohio Court of Appeals, 2012)
Harsh v. Franklin
2011 Ohio 2428 (Ohio Court of Appeals, 2011)