Ringhand v. Chaney
2014 Ohio 3661
Ohio Ct. App.2014Background
- Power of attorney from Clementine Chaney to David Chaney to conduct her affairs, including selling real property.
- David hired Barbara Klein to represent the listed property in New Richmond, Ohio (farmhouse and 29 acres).
- Property purchase contract entered January 18, 2011 between Ringhands and Chaneys; closing occurred as scheduled.
- Post-close, a break-in damaged the farmhouse; copper/oil lines, and parts of HVAC were stolen, causing an oil spill and flooding.
- Klein did not disclose the spill at closing; plaintiffs later sued for breach of contract, fraudulent concealment, and promissory estoppel; verdict favored Ringhands on promissory estoppel; executor substituted for Clementine after her death.
- Trial court denied appellant’s motion for judgment notwithstanding the verdict; defendant appeals raising three assignments of error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Klein’s authority could bind Chaney under apparent agency. | Chaney held out Klein as agent via David’s power of attorney. | Klein lacked authority to bind Chaney on repairs. | No; evidence supported apparent authority; denial affirmed. |
| Whether Klein’s promises support promissory estoppel. | Klein promised to fix break-in issues; reliance was reasonable. | Promissory estoppel requires a clear, unambiguous promise; facts insufficient. | Yes; the promise was clear and unambiguous, supporting estoppel. |
| Whether promissory estoppel can override the statute of frauds in a real estate contract. | Oral promise to repair induced closing despite land-sale contract. | Oral promise barred by statute of frauds/merger. | Promissory estoppel collateral to the contract and not merged; allowed. |
Key Cases Cited
- Master Consolidated Corp. v. BancOhio Natl. Bank, 61 Ohio St.3d 570 (1991) (requirements for apparent authority)
- Phipps v. Internatl. Paper Co., 2013-Ohio-3994 (Ohio 2013) (standard for reviewing directed verdict/JNOV; substantial evidence standard)
- Choate v. Tranet, Inc., 2006-Ohio-4565 (Ohio 2006) (directed verdict/jnov standard; construction of evidence in favor of nonmovant)
- Rucker v. Everen Securities, Inc., 102 Ohio St.3d 1247 (2004) (promissory estoppel elements; reliance and damages)
- Hitchcock Dev. Co. v. Husted, 2009-Ohio-4459 (Ohio 2009) (promissory estoppel elements; reliance and foreseeability)
- Karnes v. Doctors Hosp., 51 Ohio St.3d 139 (1990) (elements of promissory estoppel; reliance)