2024 Ohio 634
Ohio Ct. App.2024Background
- Pham Construction and Company, LLC (PCC) contracted with Perfect 10 Nail Salon (owned by Tran and Quach) in April 2018 to build out a commercial leased space.
- Disputes arose over payments for the construction; PCC claimed Perfect 10 did not pay the remaining contract balance and for additional work, while Perfect 10 claimed an uncredited $30,000 payment and failure to timely complete the work.
- PCC sued for breach of contract, promissory estoppel, civil theft, and fraud. Perfect 10 counterclaimed for breach of contract, conversion, and civil theft.
- Summary judgment and directed verdicts removed several claims, but breach of contract and civil theft remained for jury determination.
- The jury found both parties breached the contract, awarded damages to each, and found PCC committed civil theft, triggering statutory and punitive damages, as well as attorney’s fees.
- PCC moved for judgment notwithstanding the verdict (JNOV) on issues of civil theft, punitive damages, attorney’s fees, and contract damages; the trial court largely denied PCC's motions and affirmed the jury verdict.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Civil theft counterclaim is barred by economic loss doctrine | Civil theft damages were really contract damages and thus barred | PCC's fraudulent/deceptive conduct over $30,000 payment was independent tort | Economic loss rule did not bar statutory civil theft claim |
| Double recovery on $30,000 payment | Awarding both breach and theft damages was duplicative | Civil theft damages are separate and distinct | No double recovery; damages distinct for each claim |
| Measurement of breach of contract damages | Jury improperly awarded "loss of use" damages; should be lost profits | Four months’ rent damages were foreseeable under contract as completion delayed | Sufficient evidence supported jury’s measure; damages affirmed |
| Punitive damages and attorney’s fees on civil theft | Should fail if civil theft claim barred | Civil theft claim survives so do remedies | Punitive damages and attorney's fees awarded |
Key Cases Cited
- Texler v. D.O. Summers Cleaners & Shirt Laundry Co., 81 Ohio St.3d 677 (test for JNOV is whether sufficient evidence supports the verdict)
- Corporex Dev. & Constr. Mgt., Inc. v. Shook, Inc., 106 Ohio St.3d 412 (economic loss rule allows tort claims where duty is independent of contract)
- Allied Erecting & Dismantling Co., Inc. v. Youngstown, 151 Ohio App.3d 16 (contract damages are meant to place non-breaching party in position as if contract performed)
- F. Enterprises, Inc. v. Kentucky Fried Chicken Corp., 47 Ohio St.2d 154 (general rule for contract damages is expectation damages)