Pepin v. Hansing
2013 Ohio 4182
Ohio Ct. App.2013Background
- Kigezi International School of Medicine, Uganda-based non-profit, educated mostly American medical students in Great Britain; it closed around 2004.
- Appellees Pepin and Barsoum attended Kigezi; Pepin incurred substantial debt transferring to St. George’s and completing training.
- Hansing served with Kigezi, invested funds, and remained involved until 2004 when he resigned from the board.
- Jury found Hansing liable on fraud and conversion claims; awarded damages to Pepin and Barsoum; other claims (negligence, breach of contract, embezzlement) favored Hansing.
- Trial court denied JNOV and motion for new trial; appellate proceedings initially dismissed for lack of jurisdiction, later judgment entered against remaining defendants and then reversed in favor of Hansing on fraud/conversion.
- Appellate court held there was no evidence of misrepresentation, intent to defraud, or wrongful conversion by Hansing; reversed judgment on fraud and conversion, and entered judgment for Hansing with costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of fraud proof | Pepin/Barsoum contend there was evidence of misrepresentation and reliance. | Hansing argues no direct misrepresentation, duty to disclose, or intent to defraud proven. | JNOV granted; insufficient evidence of fraud. |
| Sufficiency of conversion proof | Barsoum/Pepin claim funds or tuition-related payments were converted by Hansing. | No wrongful act by Hansing; funds paid to Kigezi, not controlled by Hansing for conversion. | JNOV granted; insufficient evidence of conversion. |
Key Cases Cited
- Texler v. D.O. Summers Cleaners & Shirt Laundry Co., 81 Ohio St.3d 677 (Ohio 1998) (tests for legal sufficiency in JNOV context)
- Posin v. A.B.C. Motor Court Hotel, Inc., 45 Ohio St.2d 271 (Ohio 1976) (elements of fraud; standard for substantial evidence)
- Volbers-Klarich v. Middletown Mgt., Inc., 125 Ohio St.3d 494 (Ohio 2010) (fraud standard; reliance and intent considerations)
- Eastley v. Volkman, 132 Ohio St.3d 328 (Ohio 2012) (rule on JNOV substantive standard)
- Texler v. D.O. Summers Cleaners & Shirt Laundry Co., 81 Ohio St.3d 677 (Ohio 1998) (reiterated JNOV standard)
- Ramage v. Cent. Ohio Emergency Serv., Inc., 64 Ohio St.3d 97 (Ohio 1992) (evidence review for verdicts; de novo by appellate court)
- Dunlop v. Ohio Dept. of Job & Family Servs., 10th Dist. Franklin No. 11AP–929 (Ohio 2012) (elements of conversion and property rights analysis)