Stults Associates, Inc. v. Neidhart, Unpublished Decision (11-15-1999)
Stults Associates, Inc. v. Neidhart, Unpublished Decision (11-15-1999)
Opinion of the Court
OPINION
This matter is before the court upon the trial court's grant of summary judgment on behalf of Appellee Stults Associates, Inc. ("Stults") against Appellants John Neidhart and David Neidhart. The following facts give rise to this appeal. On December 15, 1997, Appellee Stults filed two separate actions. One action concerned a parcel of property commonly known as Heritage Farms. The second action concerned a parcel of property known as The Lakes. Both parcels are located in Marion County. The two causes of action involve appellant's breach of contracts, with appellee, for professional surveying and/or engineering services with respect to the parcels named above. Appellee Stults alleges in its complaint that appellants failed to pay for these services pursuant to the terms of written contracts entered into by the parties. Pursuant to the contracts, appellants agreed to pay appellee $6,500 for The Lakes master plan and $3,800 for conceptual design services on the Heritage Farms project. Appellants claim appellee misrepresented that Jack Norris was going to work on the plans when in fact he did not. The complaints assert causes of action on an account, breach of contract and unjust enrichment. Appellee also claims it is entitled to attorney fees pursuant to a clause contained in the contracts. On February 2, 1998, appellant filed an answer and counterclaim. The counterclaim contained two counts: breach of contract and misrepresentation. On April 2, 1998, appellee filed an amended complaint amending the prayer for damages. On September 30, 1998, appellee filed a motion for summary judgment. The magistrate issued a decision on October 22, 1998, granting appellee's motion for summary judgment as it pertained to the three counts set forth in appellee's complaint. The magistrate also granted summary judgment on behalf of appellee as to appellants' two causes of action contained in their counterclaim. Appellants filed objections to the magistrate's decision on November 5, 1998. The trial court overruled the objections on December 15, 1998, and adopted the magistrate's decision. On January 19, 1999, the magistrate conducted a hearing in order to determine the amount of attorney fees to award. The magistrate ordered attorney fees in the amount of $9,954.50 on February 2, 1999. Appellants did not object to the award. The trial court adopted the magistrate's decision, in its entirety, on March 10, 1999. Appellants timely filed a notice of appeal and set forth the following assignments of error for our consideration:I THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' COUNTERCLAIM FOR BREACH OF THE JULY 15, 1996 CONTRACT WHEN GENUINE ISSUES OF MATERIAL FACT EXIST REGARDING THE WORK WHICH WAS PERFORMED OR SUPPOSED TO BE PERFORMED BY APPELLEE REGARDING THE LAKES.
II THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' COUNTERCLAIM FOR BREACH OF THE JULY 30, 1996 CONTRACT WHEN GENUINE ISSUES OF MATERIAL FACT EXIST REGARDING THE SERVICES TO BE PERFORMED OR SUPPOSED TO BE PERFORMED BY APPELLEE REGARDING HERITAGE FARMS.
III THE TRIAL COURT ERRED WHEN IT GRANTED APPELLEE'S MOTION FOR SUMMARY JUDGMENT ON THE CAUSES OF ACTION "ON ACCOUNT" AND ON BREACH OF THE JULY 15, 1996 CONTRACT WHEN GENUINE ISSUES OF MATERIAL FACT EXISTS (SIC) REGARDING THE WORK PERFORMED OR SUPPOSED TO BE PERFORMED BY APPELLEE ON THE LAKES.
IV THE TRIAL COURT ERRED WHEN IT GRANTED APPELLEE'S MOTION FOR SUMMARY JUDGMENT ON THE CAUSE OF ACTION "ON ACCOUNT" AND ON BREACH OF THE JULY 30, 1996 CONTRACT WHEN GENUINE ISSUES OF MATERIAL FACT EXIST REGARDING THE WORK WHICH WAS PERFORMED OR SUPPOSED TO BE PERFORMED BY APPELLEE REGARDING HERITAGE FARMS.
V THE TRIAL COURT ERRED WHEN IT GRANTED APPELLEE'S MOTION FOR SUMMARY JUDGMENT WHEN IT FOUND THE STATEMENTS IN APPELLANT'S (SIC) AFFIDAVIT ABOUT THE NUMEROUS PROBLEMS WITH THE WORK ON THE LAKES AND HERITAGE FARMS WERE "CONCLUSORY."
VI THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' COUNTERCLAIM WHEN GENUINE ISSUES OF MATERIAL FACT EXIST REGARDING APPELLEE'S MISREPRESENTATIONS.
VII THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' COUNTERCLAIM FOR BREACH OF CONTRACT REGARDING THE LAKES AND HERITAGE FARMS WHEN IT RULED APPELLANTS WERE CONTRACTUALLY AND STATUTORILY BARRED FROM BRINGING ITS (SIC) ACTION BECAUSE IT HAD OBTAINED NO INDEPENDENT EVALUATION.
VIII THE TRIAL COURT ERRED WHEN IT GRANTED APPELLEE'S MOTION FOR SUMMARY JUDGMENT REGARDING THE CAUSES OF ACTION "ON ACCOUNT" AND ON BREACH OF CONTRACT REGARDING THE LAKES AND HERITAGE FARMS WHEN THE COURT WEIGHED THE CREDIBILITY OF THE STATEMENTS IN THE PARTIES' AFFIDAVITS.
IX ALTERNATIVELY, THE TRIAL COURT ERRED WHEN IT GRANTED APPELLEE'S MOTION FOR SUMMARY JUDGMENT REGARDING THE CAUSES OF ACTION "ON ACCOUNT" AND ON BREACH OF THE CONTRACTS FOR THE LAKES AND HERITAGE FARMS WHEN THE COURT IGNORED APPELLANTS' AFFIDAVITS.
X THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' CAUSE OF ACTION FOR MISREPRESENTATION WHEN IT ANALYZED THIS ISSUE BY APPLYING THE OHIO RULES OF EVIDENCE APPLICABLE TO HEARSAY.
XI THE TRIAL COURT ERRED WHEN IT DISMISSED APPELLANTS' CAUSE OF ACTION FOR MISREPRESENTATION BY APPLYING THE PAROL EVIDENCE RULE.
Summary Judgment Standard
Summary judgment proceedings present the appellate court with the unique opportunity of reviewing the evidence in the same manner as the trial court. Smiddy v. The Wedding Party, Inc. (1987),
Pursuant to the above rule, a trial court may not enter summary judgment if it appears a material fact is genuinely disputed. The party moving for summary judgment bears the initial burden of informing the trial court of the basis for its motion and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact. The moving party may not make a conclusory assertion that the non-moving party has no evidence to prove its case. The moving party must specifically point to some evidence which demonstrates the non-moving party cannot support its claim. If the moving party satisfies this requirement, the burden shifts to the non-moving party to set forth specific facts demonstrating there is a genuine issue of material fact for trial. Vahila v. Hall (1997),
This agreement contains the entire agreement between client and consultant relating to the project and provision of services to the project. Any prior agreements, promises, negotiations or representations that may conflict and are not expressly set forth in this agreement are of no force or effect. Subsequent modifications to this agreement shall be in writing and signed by both client and consultant. * * *
The integration clause clearly indicates the complete understanding of the parties is contained in the two contracts and any evidence, discussion or representation regarding John Norris' involvement on either project is improper and impermissible. The trial court also found the parol evidence rule applicable to the two contracts at issue. We explained the application of the parol evidence rule in Developers Diversified Realty Corp. v. Cicchini (1996), Stark App. No. 1996CA00007, unreported, at 4: The parol evidence rule prohibits the admission of testimony regarding prior or contemporaneous oral agreements which contradict or vary the terms of written agreements. However, introduction of contemporaneous oral representations is permitted when fraud is alleged.
* * * It is clear that an unambiguous contract cannot be explained by parole (sic) evidence. Thus, where the words of any written instrument are free from ambiguity in themselves, and where external circumstances do not create any doubt or difficulty as to the proper application of those words to claimants under the instrument, or as to the subject matter to which the instrument relates, such instrument is always to be construed according to the strict, plain, common meaning of the words themselves * * *. (Citation omitted.)
Pursuant to the valid integration clauses and the parol evidence rule, we find the trial court properly concluded a genuine issue of material fact does not exist because the language of the contracts clearly indicate that appellants hired the firm of Stults Associates, Inc. and not Jack Norris individually to develop the plans for The Lakes and Heritage Farms. Appellants next argue that appellee breached the contracts by failing to obtain government approvals. However, our review of the contracts indicate no language is contained in either contract that indicates appellee agreed to obtain government approvals as part of the concept plans. Instead, both contracts contain language, in paragraphs 8, that "[c]onsultant shall only act as an advisor in all governmental relations." The language does not indicate appellee is solely responsible for obtaining governmental approvals. Further, both Glenn Halmbacher and David Elder stated, in their affidavits, that completion of concept plans do not require the obtaining of governmental approvals. Affid. Halmbacher at paragraph 5; Affid. Eder at paragraph 6. We would also note that both contracts contain language that specifically exclude certain government issues. The Heritage Farms contract expressly excluded re-zoning issues. The Lakes contract expressly excluded zoning, annexation and applications. Based on this language contained in the contracts, we find that a genuine issue of material fact does not exist concerning whether appellee breached the contracts by failing to obtain governmental approvals. Appellants next argue that issues of material fact exist because the concept plans were unusable and unbuildable. In this argument, appellants raise a negligence issue but fail to present any expert testimony concerning the standard of care in the development of the concept plans. The concept plans developed by appellee corresponded to the plans envisioned in the contracts. The Heritage Farms concept plan included the required carousel and museum, retail shops, hotel, miniature golf, water feature, parking, pathways, outlets and any area to encompass other needs. The concept plan for The Lakes included the office and condominium complexes and residential units. Further, appellants presented no evidence to support their argument that the concept plans are unbuildable. Appellants merely allege the plans are unbuildable because of the location of a road, the placement of sewer lines, insufficient dirt due to bedrock and failure to obtain government approvals. Without evidence to support these allegations, we find appellants failed to meet their burden. Accordingly, we do not find a genuine issue of material fact exists concerning whether the concept plans are unusable and unbuildable. Finally, under these assignments of error, appellants attempt to create an issue of material fact by comparing the magistrate's ruling on a motion in limine to a statement in his decision granting appellee's motion for summary judgment. In the motion in limine, appellee requested an order precluding testimony, by appellants or anyone on their behalf, regarding appellee's lack of obtaining governmental approval and the participation of John Norris. The magistrate overruled the motion in limine finding the issue at trial would be whether or not appellee complied with paragraph 8 regarding its advisory duty in all governmental relations. Judgment Entry, Oct. 13, 1998, at 2. Approximately two weeks later, the magistrate issued a decision granting summary judgment on behalf of appellee finding no genuine issue of material fact exists concerning this paragraph. We find the trial court properly concluded that the two pleadings serve distinct purposes and one is not precedent for the other. Judgment Entry, Dec. 15, 1998, at 6. The two separate rulings do not create an issue of material fact. In their Fifth Assignment of Error, appellants contend the trial court erred in granting summary judgment when it found the statements in John Neidhart's affidavit about numerous problems with the work on The Lakes and Heritage Farms were "conclusory." We disagree. John Neidhart's affidavit contains numerous allegations in support of appellants' argument that the concept plans were unusable and unbuildable. As noted above, appellants did not present any expert testimony to support these allegations. Mere conclusory statements in an affidavit are not sufficient to raise an issue of fact; instead, the affidavit must indicate the operative facts upon which the conclusion is based. Hollowell v. Society Bank
Trust (1992),
Appellants maintain that they did not assert a claim of professional negligence and therefore, this requirement of the contracts is inapplicable. Although appellants did not claim professional negligence, in their complaints, we find the magistrate properly concluded that appellants are challenging the quality of the work performed by appellee. Appellants argue that due to the nature and quality of the concept plans for The Lakes and Heritage Farms, the plans are unusable and unbuildable and appellee breached the contracts. Although appellants assert contract claims, it is clear the breach of contract claims are based on a negligence argument. Because appellants' breach of contract claims are based on a negligence argument, the trial court did not err in concluding appellants failed to comply with paragraph 28 of the two contracts. Even if we found paragraph 28 inapplicable, as noted previously in this opinion, it was incumbent on appellants to present expert testimony to support their claims. Appellants' Seventh Assignment of Error is overruled.
For the foregoing reasons, the judgment of the Court of Common Pleas, Delaware County, Ohio, is hereby affirmed.
By: Wise, P.J. Hoffman, J., and Edwards, J., concur.
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