126 N.E.3d 213
Oh. Ct. App. 11th Dist. Ashtab...2018Background
- Plaintiffs Lorrie and Lori Accettola owned property subject to an oil-and-gas lease with Big Sky Energy; the lease was cancelled by the Ashtabula C.P. in May 2012.
- After termination, Big Sky left well-related equipment (pump jack, tanks, separator, flow lines, meters, etc.) on the Accettolas’ land; some items were later removed, others remained until well-plugging in Sept. 2015.
- The Accettolas sued for, inter alia, Trespass (for leaving equipment and a recorded invalid lease) and Slander of Title; Big Sky counterclaimed for Conversion and breach of contract.
- The trial court granted summary judgment to the Accettolas on Trespass and on Big Sky’s Conversion counterclaim; remaining claims were dismissed or withdrawn before trial.
- A jury awarded the Accettolas $30,000 in compensatory damages for Trespass; the trial court also awarded $31,308.53 in attorney’s fees. Big Sky appealed.
- The appellate court affirmed summary judgment on Trespass and the damage award, but reversed/vacated the attorney-fees award and remanded the fee issue (vacated fees), finding fees were improper without punitive damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether summary judgment on Trespass was proper when defendant left equipment on property for years | Accettolas: leaving equipment after lease termination is an ongoing trespass; no genuine dispute of material fact | Big Sky: alleged denial of access by landowner and other obstacles prevented removal | Court: Affirms — testimony shows unreasonable multi-year inaction by Big Sky; no material fact to defeat trespass claim |
| Whether summary judgment on Conversion counterclaim should be denied because items allegedly missing | Big Sky: Accettolas took or destroyed Big Sky’s personal property; conversion claim valid | Accettolas: Big Sky abandoned equipment and made insufficient demands or retrieval attempts | Court: Affirms summary judgment against Big Sky — insufficient evidence Big Sky demanded return or that Accettolas wrongfully exercised control |
| Whether the $30,000 compensatory award was unsupported/speculative | Accettolas: testified to remediation, lost use, inconvenience, repair costs and time expended; noneconomic damages recoverable | Big Sky: damages were speculative, lacked specific cost evidence, unrelated to trespass | Court: Affirms — jury verdict not against manifest weight; intangible harms and remediation testimony supported award |
| Whether attorney’s fees can be awarded on Trespass without punitive damages | Accettolas: attorney fees recoverable as compensatory damages for trespass | Big Sky: fees not recoverable absent bad faith or punitive damages; American Rule | Court: Reverses fee award — holds under Ohio Supreme Court precedent fees in trespass only permissible when punitive damages are awarded |
Key Cases Cited
- Apel v. Katz, 83 Ohio St.3d 11 (Ohio 1998) (discusses trespass damages and notes in a footnote that attorney fees as compensatory damages are connected to an award of punitive damages)
- Zoppo v. Homestead Ins. Co., 71 Ohio St.3d 552 (Ohio 1994) (discusses attorney-fee recovery exceptions to the American Rule)
- Cleveland, Columbus & Cincinnati R.R. Co. v. Bartram, 11 Ohio St. 457 (Ohio 1860) (early Ohio authority recognizing courts may award attorney fees as part of compensatory relief)
- Wilborn v. Bank One Corp., 121 Ohio St.3d 546 (Ohio 2009) (states the American Rule: prevailing parties generally may not recover attorney fees absent statutory or recognized equitable exception)
- Sorin v. Bd. of Edn. of Warrensville Hts. Sch. Dist., 46 Ohio St.2d 177 (Ohio 1976) (identifies bad-faith or oppressive conduct as a basis for awarding attorney fees)