Worshil v. Smythe Cramer Co., Unpublished Decision (9-10-2001)

CourtOhio Court of Appeals
DecidedSeptember 10, 2001
DocketCase Nos. 2001CA00086, 2001CA00114.
StatusUnpublished

This text of Worshil v. Smythe Cramer Co., Unpublished Decision (9-10-2001) (Worshil v. Smythe Cramer Co., Unpublished Decision (9-10-2001)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Worshil v. Smythe Cramer Co., Unpublished Decision (9-10-2001), (Ohio Ct. App. 2001).

Opinion

OPINION
Plaintiffs-appellants David Worshil, et al., appeal from the February 14, 2001, and March 9, 2001, Judgment Entries of the Stark County Court of Common Pleas.

STATEMENT OF THE FACTS AND CASE
In September of 1997, appellants David Worshil and Beverly Worshil (hereinafter "appellants") entered into a "Purchase and Sales Agreement" with appellee Glenmoor Properties Limited Partnership for a single family homesite known as sublot 54 in the Estates of Glenmoor. Appellants chose their lot and entered into the agreement with the assistance of Rexine Siemund, a realtor/broker with appellee Smythe Cramer Co. Appellee Smythe Cramer Co. was, for many years, the exclusive listing agent for appellee Glenmoor Properties Limited Partnership for all of the properties in the Glenmoor development.

The "Purchase and Sales Agreement" signed by appellants states, in relevant part, as follows:

5.2 Marketing and Promotional Fees. Buyer may contract with a Featured Builder chosen from a list provided by Seller for the construction of Buyer's house and related improvements and, in such event, Buyer acknowledges that said Featured Builder will pay a brokerage commission to Smythe-Cramer and a marketing fee to Seller equal to five percent (5%) and three-quarters of one percent (3/4%), respectively, of the contract for Buyer's house and related improvements requiring said builder to pay a brokerage commission to Smythe-Cramer and a marketing fee to Seller equal to five percent (5%) and three-quarters of one percent (3/4%), respectively, of the contract price for the home built for Buyer on the Property. The terms of this provision shall survive the delivery of the Deed and the Closing. Buyer acknowledges that a Builder who is not a Featured Builder will be required to pay the Marketing and Promotional Fees as a condition of the approval of the builder by Seller and the Architectural Review Board.

Subsequently, title to Lot 381 in the Estates of Glenmoor1 was transferred to appellants on January 22, 1998, for the purchase price of $153,000.00. The deed transferring the property to appellants included the above language.

Thereafter, Pavlis Company, a non-featured builder, proceeded to build a home on appellants' property at a cost of approximately $600,000.00. Appellants, as part of their contract with Pavlis Company, voluntarily assumed Pavlis' duty and obligation to pay the 5.75% marketing and promotional fees outlined in paragraph 5.2 of the "Purchase and Sales Agreement." In a letter addressed to Mrs. Melissa Surratt, Estates of Glenmoor, dated January 22, 1998, appellant David Worshil stated as follows: "In regards to our market fee, we agree to pay $20,125 on or before February 16, 1998. This figure equates to 5.75% of $350,000."2

On or about May 8, 1999, appellants paid the requisite 3/4% marketing fee (or $2,625.00) to appellee Glenmoor Properties. However, appellants refused to pay the remaining five percent (5%) fee to appellee Smythe Cramer, claiming that Neil Libster of Libster Realty was entitled to at least part of such fee since he had worked with appellants in procuring the purchase of the lot in the Estates of Glenmoor. Libster is appellant David Worshil's brother-in-law. For such reason, in June of 1999, appellants placed $17,500.00, which is alleged to be the 5% fee, in escrow with appellee American Title Associates Agency, Inc.

Subsequently, on May 17, 2000, appellants and appellant Neal Libster d.b.a. Libster Real Estate filed an action for declaratory judgment against Smythe Cramer Co., Cutler Associates, Inc., and American Title Associates Agency, Inc. in the Stark County Court of Common Pleas (Case No. 2000CV01213). Appellee Cutler Associates became the exclusive listing agent for appellee Glenmoor Properties after appellee Smythe Cramer Co. The complaint indicated that class action certification pursuant to Civil Rule 23 was being requested. Appellants, in their complaint, specifically sought a declaration from the court that "any and all sums paid by any and all members of the class to Defendants Smythe Cramer Co. and Cutler as so-called "Promotional Fees" or "Marketing Fees", or to be paid are illegal, unearned commissions or assessments" and that the collection or attempted collection of the same were unconscionable acts or practices under R.C. Chapter 1345, the Consumer Sales Practices Act. Appellants further sought a declaratory judgment that appellant Libster procured appellants' purchase of the lot in the Estates of Glenmoor and, therefore, was entitled to one-half of the real estate commission.

In turn, appellee Smythe Cramer, on May 18, 2000, filed a complaint against appellants in the Stark County Court of Common Pleas (Case No. 2000CV01233). Appellee Smythe Cramer, in its complaint, sought a declaratory judgment that it was entitled to its five percent (5%) commission and that Neil Libster was not entitled to any part of the same. Pursuant to a Judgment Entry filed on June 21, 2000, in both cases, Case Nos. 2000CV01213 and 2000CV01233 were consolidated.

On June 8, 2000, appellants filed a Motion to Certify Class Action pursuant to Civil Rule 23 indicating that the class would consist of all purchasers of lots in the Estates of Glenmoor "who had paid a "so-called "Promotional Fee" or "Marketing Fee" to Defendant Smythe, Cramer Co. and Cutler Associates, Inc. . . . or who in the future may be assessed such fees." An amended Complaint adding appellee Glenmoor Properties Limited Partnership and Glenmoor Construction, Inc. [hereinafter referred to as "Glenmoor"] as defendants was filed by appellants on September 19, 2000. Thereafter, Motions for Summary Judgment were filed by appellee Glenmoor, appellee Cutler Associates, and appellee Smythe Cramer to which appellants responded.

As memorialized in a Judgment Entry filed on February 14, 2001, the trial court overruled appellants' Motion to Certify Class Action, holding that appellants had "not met their burden relative to having the matter certified as a class action." Pursuant to a Judgment Entry filed on March 9, 2001, the trial court further granted the Motions for Summary Judgment filed by appellees, finding that there were no genuine issues of material fact.

Appellants, on March 9, 2001, filed a Notice of Appeal from the trial court's February 14, 2001, Judgment Entry (Case No. 2001CA00086). On April 6, 2001, appellants filed a separate Notice of Appeal from the trial court's March 9, 2001, Judgment Entry (Case No. 2001CA 00114). Via a Judgment Entry filed on May 11, 2001, this Court consolidated the two cases.

Appellants now raise the following assignments of error:

ASSIGNMENT OF ERROR I
THE TRIAL COURT ERRED IN GRANTING APPELLEES' MOTIONS FOR SUMMARY JUDGMENT IN RULING THAT APPELLEES' MARKETING AND PROMOTIONAL FEES ARE PART OF THE CONSIDERATION FOR THE LAND, WHERE SUCH FEES ARE INDEPENDENT OF THE PRICE OF THE REALITY, AND WHERE THE APPELLEES NEVER PAID TO THE COUNTY AUDITOR THE MANDATORY CONVEYANCE FEE OR TRANSFER TAX ASSESSED ON THE VALUE ON ALL IMPROVEMENTS TO REAL PROPERTY; THE APPELLEES ARE THEREBY ESTOPPED TO ASSERT THAT THE FEES ARE PART OF CONSIDERATION FOR THE LAND.

ASSIGNMENT OF ERROR II

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Bluebook (online)
Worshil v. Smythe Cramer Co., Unpublished Decision (9-10-2001), Counsel Stack Legal Research, https://law.counselstack.com/opinion/worshil-v-smythe-cramer-co-unpublished-decision-9-10-2001-ohioctapp-2001.