Sivit v. Village Green of Beachwood, L.P.
143 Ohio St. 3d 168
| Ohio | 2015Background
- In 2004, a fire destroyed Building 3 at Village Green Apartments in Beachwood, Ohio.
- Ralph Dolence investigated and concluded the fire originated between the second-story ceiling and the floor above due to construction defects.
- In 2007, a fire occurred in Building 8; Dolence found the fire originated between the floor and ceiling of units 210 and 310 with code violations and water intrusion observed.
- Dolence testified he was 100 percent certain the 2007 fire was caused by faulty electrical wiring contaminated by water leaks.
- Sivit and other tenants sued Village Green and related entities for negligent construction and, under R.C. 5321.04, negligent maintenance of electrical wiring; insurers joined in separate actions.
- A jury awarded compensatory damages of $582,146, punitive damages of $2,000,000, and fees of $1,040,000; the Eighth District affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the action is a tort action for R.C. 2315.21 purposes | Sivit argues the claim sounds in tort despite contract | Village Green asserts contract governs the claim and punitive damages limited by contract | The action is tort; R.C. 2315.21 applies. |
| Whether punitive damages violated R.C. 2315.21(D)(2)(a) remedy limits | Punitive damages supported by defendant’s conscious disregard | Punitive amount excessive relative to compensatory damages | Remittitur required; set punitive at twice compensatory damages. |
| Whether landlord liability under R.C. 5321.04 can be based on known dangers | Knowledge of prior fire and conditions supports liability for current danger | Liability cannot be based on defects landlord was unaware of or concealed | Sufficient evidence to submit to jury; liability upheld. |
Key Cases Cited
- Robinson v. Bates, 112 Ohio St.3d 17 (2006) (negligence per se under R.C. 5321.04; standards for duties)
- Sikora v. Wenzel, 88 Ohio St.3d 493 (2000) (causes of action; contract vs tort distinctions)
- Moskovitz v. Mt. Sinai Med. Ctr., 69 Ohio St.3d 638 (1994) (punitive damages require actual malice)
- Preston v. Murty, 32 Ohio St.3d 334 (1987) (definition of actual malice in punitive damages)
- Chester Park Co. v. Schulte, 120 Ohio St.3d 273 (1929) (remittitur criteria for punitive damages)
- Dardinger v. Anthem Blue Cross & Blue Shield, 98 Ohio St.3d 77 (2002) (remittitur and excessiveness considerations in damages)
- Shoemaker v. Crawford, 78 Ohio App.3d 53 (1991) (jurisdictional discretion in damages determinations)