Nelson v. Tipton, Unpublished Decision (11-18-1999)
Nelson v. Tipton, Unpublished Decision (11-18-1999)
Opinion of the Court
OPINION
On January 13, 1998, Hugh W. and Mary Nelson filed a complaint against Calvin R. and Faye Tipton in the Franklin County Court of Common Pleas asserting claims for relief of breach of contract and property damage. The Nelsons averred that the Tiptons entered into a two-year lease agreement beginning on June 1, 1996 for the lease of a house owned by the Nelsons. Such lease agreement was to terminate on May 31, 1998; however, the Tiptons moved out on September 14, 1997. The Nelsons averred they were owed $15,371.66 for unpaid rent, late fees, property damage/repairs and various other damages.1 The Tiptons filed an answer and a counterclaim. In their counterclaim, the Tiptons averred that pursuant to R.C.On May 7, 1998, the Tiptons filed responses to the Nelsons' request for admissions. As part of these responses, the Tiptons admitted, in essence, that they did not have any documents that would demonstrate they provided the Nelsons with a forwarding address. On July 10, 1998, the trial court referred the matter to arbitration pursuant to Loc.R. 103 of the Court of Common Pleas of Franklin County. On November 24, 1998, the Tiptons filed amended responses to the request for admissions. The Tiptons denied that they did not have documentation showing they provided the Nelsons with a forwarding address and stated that a copy of a written, forwarding address had been provided to plaintiffs' counsel.
On December 11, 1998, an arbitration report and award was filed finding in favor of the Nelsons and awarding them $19,637.44. The arbitrators also found for the Tiptons in the amount of $1,600. Therefore, the net amount awarded to the Nelsons was $18,037.44. The Tiptons filed an appeal of the arbitrators' report and award. A jury trial was held, and the jury returned a general verdict in favor of the Tiptons. In an interrogatory, the jury found that the Tiptons gave the Nelsons a written, forwarding address.
On February 10, 1999, the trial court held a hearing on the issue of damages and attorney fees. On this same date, the trial court journalized an entry setting forth the general verdict in favor of the Tiptons on the Nelsons' claims for breach of contract and property damage. The trial court further found that the Nelsons wrongfully withheld the Tiptons' $1,600 security deposit and, therefore, the Tiptons were entitled to statutory double damages in the amount of $3,200 and reasonable attorney fees and expenses in the amount of $26,744.75 plus $400 for expert witness fees.
The Nelsons (hereinafter "appellants") have appealed to this court, assigning the following errors for our consideration:
I. The trial court erred in finding that Defendants were entitled to an award of twice the amount of their total security deposit plus attorneys' fees under Ohio Rev. Code §
5321.16 (C).II. The trial court erred first by entering judgment that was directly contradicted by Defendants' responses to Plaintiffs' request for admissions and thus against the manifest evidence, and then by denying Plaintiffs' motion for judgment notwithstanding the verdict.
III. The trial court erred by entering judgment based upon a jury interrogatory response that was directly contradicted by another of Defendants' responses to Plaintiffs' request for admissions and thus against the manifest weight of the evidence.
IV. The trial court erred in awarding attorneys' fees which were related to claims other than those relating to
Defendants' security deposit.
V. The trial court abused its discretion in awarding Defendants all of their attorneys' fees under Ohio Rev. Code §
5321.16 (C), because those fees were excessive and unreasonable.
Appellants' first, second and third assignments of error are interrelated and, therefore, will be addressed together. In essence, appellants contend that judgment should not have been rendered in favor of the Tiptons (hereinafter "appellees") on their counterclaim alleging appellants wrongfully withheld the security deposit. We note that appellants have not appealed from the judgment against them on their breach of contract and property damage claims. As to appellees' counterclaim, appellants first contend that the judgment in favor of appellees was erroneous because it directly conflicted with admissions made by appellees. Specifically, appellants contend that appellees admitted they did not possess any documentation showing they had provided appellants with a forwarding address. Under R.C.
Appellees' evidence at trial contradicted their prior admissions, and the jury specifically found that appellees provided appellants with a written forwarding address. In addition, and as previously noted, appellees had filed amended responses to appellants' request for admissions. In such amended responses, appellees stated that they had documentation showing they provided appellants with a forwarding address and indicated that such documentation had been provided to appellants' counsel. Appellants contend that because appellees originally admitted they had no such documentation and that part of the September rent was to be taken from the security deposit, such matters were conclusively established and, therefore, judgment should not have been rendered in favor of appellees on the counterclaim. Appellees assert appellants waived any claim of error in this regard. For the reasons that follow, we find appellants' contentions are not well-taken.
In Balson v. Dodds (1980),
In Balson, the Supreme Court noted that Civ.R. 36(B) does not require a written motion be filed. Id. at 290, fn. 2. By simply contesting the truth of the admissions for purposes of summary judgment, the party in Balson satisfied the Civ.R. 36(B) requirement of moving the trial court to withdraw or amend the admissions, and the trial court did not abuse its discretion in so finding. Id. See, also, Nursing Staff of Cincinnati, Inc. v.Sherman (1984),
Civ.R. 36(B) emphasizes the importance of having the action resolved on the merits, while at the same time assuring each party that justified reliance on an admission in preparation for trial will not operate to his or her prejudice. ClevelandTrust Co. v. Willis (1985),
Appellants did not object to appellees' filing of amended responses nor did they object to Ms. Tipton's testimony at trial. As to the matter involving the September rent, appellants never objected to testimony that could be said to contradict the related admission. Errors arising during the course of a trial which are not brought to the attention of the trial court by objection or otherwise are waived and may not be raised on appeal.Stores Realty Co. v. Cleveland (1975),
Appellants next contend that the judgment in favor of appellees on the security deposit counterclaim was against the manifest weight of the evidence and that the trial court erred in failing to grant their motion for judgment notwithstanding the verdict. Judgments supported by some competent, credible evidence going to all the essential elements of the case will not be reversed by a reviewing court as being against the manifest weight of the evidence. C.E. Morris Co. v. Foley Construction Co.
(1978),
As to appellants' motion for judgment notwithstanding the verdict, the standard of review is the same standard that is applied for motions to directed verdicts. The motion should be granted when the trial court, construing the motion most strongly in favor of the nonmoving party, finds that upon any determinative issue, reasonable minds could come to but one conclusion upon the evidence submitted, and such conclusion is adverse to the nonmoving party. Mantua Mfg. Co. v. Commerce Exchange Bank
(1996),
The main issues under appellees' counterclaim were whether or not appellees provided appellants with a forwarding address and whether or not appellants wrongfully withheld any of appellees' security deposit. R.C.
(B) Upon termination of the rental agreement any property or money held by the landlord as a security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant's noncompliance with section
5321.05 of the Revised Code or the rental agreement. Any deduction from the security deposit shall be itemized and identified by the landlord in a written notice delivered to the tenant together with the amount due, within thirty days after termination of the rental agreement and delivery of possession. The tenant shall provide the landlord in writing with a forwarding address or new address to which the written notice and amount due from the landlord may be sent. If the tenant fails to provide the landlord with the forwarding or new address as required, the tenant shall not be entitled to damages or attorneys fees under division (C) of this section.
R.C.
As indicated above, the parties disputed whether or not appellees provided appellants with a forwarding address. At trial, Ms. Tipton testified that she gave Mr. Nelson a forwarding address on September 14, 1997, the day appellees moved out. (Tr. 341-343.) Ms. Tipton testified that she found an invoice used by her husband in his business, wrote the forwarding address on the top sheet of such invoice, tore off the portion she had written on and gave Mr. Nelson such portion. Id. at 342. Ms. Tipton identified defendant's exhibit D which was the invoice she described. Such invoice contained a top sheet with the lower left portion torn off and an attached bottom carbon sheet with appellees' forwarding address written in the area that coincided with the top portion that had been torn off. Mr. Nelson denied ever having received a forwarding address from appellees.
The jury returned an interrogatory specifically finding that appellees provided appellants with a written, forwarding address. Hence, the issue was one of credibility, and the jury obviously believed Ms. Tipton's testimony regarding the forwarding address. This court cannot pass on issues of credibility. If believed, Ms. Tipton's testimony along with the invoice admitted into evidence constituted sufficient evidence under both the C.E.Morris standard and the standard applied to a motion for judgment notwithstanding the verdict. Accordingly, there was no error in accepting and we will not reverse the jury's finding that appellees provided appellants with a written, forwarding address.
In addition, there was no dispute at trial that appellants did not provide appellees with a written itemized list of deductions as required by R.C.
Appellees were awarded $3,200 in damages on their counterclaim. This represented double damages based upon the full $1,600 security deposit. Appellants contend that they could have lawfully deducted an amount representing fourteen days rent for September 1997. There was no dispute that appellees did not move out until September 14, 1997 and did not pay any rent for September. However, the parties did dispute whether or not there was an agreement that appellees not pay rent in September 1997. Again, the issue of whether or not appellants told appellees that rent did not have to be paid for September 1997 was one of credibility and given the jury's general verdict in favor of appellees, it obviously believed appellees' version. Because there was evidence to support this verdict, we will not disturb the judgment stemming from such verdict.
Next, appellants contend they lawfully withheld amounts for certain damages. For example, appellants asserted appellees were liable for $325 for yard maintenance. The parties disputed whether or not appellees were obligated to pay for the care of the lawn. There is no evidence that under the rental agreement, appellees were obligated to pay for the maintenance of the lawn, and R.C.
There is undisputed evidence, however, that appellees were to pay a portion of a water bill. Appellees testified that Mr. Nelson informed them that he would prorate a water bill that he had yet to receive and which included water used while appellees lived in the house. (Tr. 331, 344.) Such water bill was admitted into evidence. This bill totaled $35.01 and was for the period of September 4, 1997 through December 3, 1997. Appellees lived in the house through September 14, 1997 and, therefore, were liable for eleven out of the ninety-one days covered under the above water bill. Prorating such bill based on the number of days appellees lived in the house, appellees would be liable for $4.23 of such bill. Hence, $4.23 of the security deposit was not wrongfully withheld, and to the extent the judgment did not reflect such lawful deduction, it was against the manifest weight of the evidence. For the same reason and only to this extent, the trial court should have granted appellants' motion for judgment notwithstanding the verdict.
In summary, the judgment in favor of appellees on their counterclaim, in general, was proper. Appellees provided appellants with a written, forwarding address. Appellants failed to provide appellees with a written itemization of deductions from the security deposit and wrongfully withheld $1,595.77 ($1,600 minus $4.23 for appellees' portion of the water bill). Therefore, judgment in favor of appellees was proper, but it should have been in the amount of $3,191.54 ($1,595.77 x 2). Accordingly, appellants' first, second and third assignments of error are overruled in part and sustained in part, but only as to the amount of damages as set forth above.
In their fourth assignment of error, appellants contend the trial court erred in awarding appellees all of their attorney fees. Pursuant to R.C.
In Padgett, the tenants filed suit seeking the balance of their security deposit. In addition, the tenants set forth a claim for breach of contract. The Supreme Court stated that where a tenant brings claims in addition to a security deposit claim, an attorney fees award must relate solely to the fees attributable to the security deposit claim and not to any additional claims. Id. at 349. Here, appellees were awarded all of their attorney fees — $26,744.75. In other words, appellees were awarded attorney fees that were attributable not only to their security deposit claim but to defending against the breach of contract and property damage claims brought by appellants. In so awarding, the trial court stated that the present case was distinguishable from the facts in Padgett in that the security deposit claim here was intermingled with the entire litigation. (Feb. 10, 1999 hearing Tr. at 76.) The trial court stated that the security deposit claim involved all of the issues, and there was no reasonable way to sort out such claim. Id.
We agree in general with the trial court's statement that the issues were intermingled. For example, appellees could not prevail on their security deposit claim if appellants prevailed on their breach of contract claim. In other words, appellants would not have wrongfully withheld appellees' security deposit if the jury concluded there was no agreement to terminate the lease early. In this sense, the claims were interrelated. However, this alone cannot support the award of all appellees' attorney fees. While the outcome of one claim may determine the outcome of another, this does not mean that the claims are the same and that R.C.
The law only allows an award of those attorney fees relating solely to the security deposit claim. Padgett at 349. However, courts have allowed attorney fees that relate to both the security deposit claim and to defending against a landlord's counterclaim for alleged damages and/or unpaid rent when such claims are virtually indivisible. See Lacare v. Dearing (1991),
Here, the landlord brought the initial claim against the tenants. Appellants sought approximately $16,000 in damages for breach of contract and property damage. Appellees left the premises prior to the expiration of the written lease agreement. The parties disputed whether or not they agreed to such early termination. The evidence on this issue consisted of the conflicting testimony of the parties which amounted only to brief and general statements as to what appellants did or did not say to appellees. The determination of such issue came down to whose testimony the jury believed. This was a clear claim for breach of contract and for which R.C.
An example of a case involving indivisible claims would be where the parties merely disputed how much, if any, of the security deposit was returnable. Such dispute may come in the form of two different claims such as a tenant's R.C.
The case at bar is distinguishable from the above example. Here, we have clearly discernable claims. It is true that the outcome of one claim directly affected the outcome of the other (had the jury found appellees breached the lease agreement, appellees would not have prevailed on their security deposit claim); however, the subject matter of appellants' breach of contract claim and the subject matter of appellees' security deposit claim were not the same and certainly were not virtually indivisible. Rather, the claims, for the most part, involved separate elements and separate facts. Hence, the trial court abused its discretion in granting all of appellees' attorney fees.
Further, the amount awarded for attorney fees compared to the actual judgment for appellees is excessive. In McGregor v.Armeni (Nov. 20, 1990), Franklin App. No. 89AP-1500, unreported (1990 Opinions 5102, 5109), this court found attorney fees in the amount of $5,809.76 was excessive and unconscionable when the tenant sought only $465 on a security deposit claim. This court noted that R.C.
In Cook v. Downey (June 30, 1988), Franklin App. No. 87AP-1075, unreported (1988 Opinions 2497), jurisdictional motion overruled in (1988),
Given all of the above, we find the trial court abused its discretion in awarding appellees $26,472.39, which represented all of their attorney fees. Under the facts of this case, appellees were not entitled to attorney fees that undoubtedly were attributable to the breach of contract claim. While it may not be possible to discern the exact amount so attributable, the trial court should have made an attempt to determine the proper amount. Upon remand, the trial court should make this determination based upon factors including, but not limited, to the amounts requested by both parties under their individual claims, the amount actually awarded appellees, the evidence presented at the damages hearing, and any other factor consistent with law and this opinion.
As a result of the above, appellants' fourth assignment of error is sustained, and we remand the cause to the trial court for a new hearing on attorney fees. Accordingly, appellants' fifth assignment of error is rendered moot.
In summary, appellants' first, second, and third assignments of error are overruled in part and sustained in part. Appellants' fourth assignment of error is sustained, and the fifth assignment of error is moot. The judgment of the Franklin County Court of Common Pleas is affirmed in part and reversed in part. This cause is remanded to the trial court with instructions to vacate its previous judgment and enter judgment in favor of appellees in the amount of $3,191.54 and to hold a new hearing, consistent with this opinion, on attorney fees.
Judgment affirmed in part and reversed in part; and cause remanded with instructions.
DESHLER and BROWN, JJ., concur.
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