Good Knight Properties, L.L.C. v. Adam
2014 Ohio 4109
Ohio Ct. App.2014Background
- Appellant Spencer Adam rented from Good Knight Properties, LLC starting May 1, 2013; deposit $400 and first month’s rent $695 paid via electronic transfer.
- Lease required rent on the first of each month with late fees of $50 for the first day and $10 for each day thereafter.
- Adam, a law student interning with Mark Davis (Appellee’s legal representative), later had an adversarial dispute over payment methods and receipts.
- July 5, 2013, Adam was served with a three‑day eviction notice after July rent remained unpaid.
- July 8, 2013, Davis filed an eviction action; a July 19 hearing occurred; the August 6 magistrate decision found default and awarded judgment to appellee; Civ.R. 60(B) relief motions were denied and the appeal followed.
- October 25, 2013, a stay of execution pending appeal was granted; the Sixth District affirmed the judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Civ.R. 60(B) relief was properly denied | Adam argues relief is meritorious due to pending objections and costs | Good Knight argues no meritorious defense and grounds not satisfied | No abuse of discretion; no grounds established under Civ.R. 60(B) |
| Whether the late-fee provision is unconscionable | Adam contends late fee is substantively/unconscionable | Good Knight maintains fee is not procedurally unconscionable | Late fee not procedurally unconscionable as a matter of law |
| Whether absence of a receipt excuses rent payment | Horvath-like receipt requirement excuses payment | No binding Horvath rule; timely tender not made; receipts available | Horvath not controlling; no timely tender; obligation to pay remains |
Key Cases Cited
- GTE Auto. Elec., Inc. v. ARC Indus., Inc., 47 Ohio St.2d 148 (1976) (abuse-of-discretion standard for Civ.R. 60(B) review; meritorious defense requirement)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (abuse-of-discretion standard explained)
- Anderson v. Ballard, 2010-Ohio-3926 (6th Dist. Lucas No. L-10-007) (unconscionability as a basis for Civ.R. 60(B)(5) relief; de novo review on unconscionability)
- Horvath v. Gorman, 45 O.O. 26, 98 N.E.2d 447 (Mun. Ct. 1951) (receipt requirement; non-binding in this case)
- Columbus v. Body, 2012-Ohio 379 (10th Dist. Franklin No. 11AP-609) (credibility of witnesses; magistrate’s credibility assessment given deference)