Windward Ents., Inc. v. Valley City Dev. Group, L.L.C.
142 N.E.3d 177
Ohio Ct. App.2019Background
- Windward Enterprises leased restaurant space and purchased equipment from Hat Creek via a $200,000 asset purchase with a $100,000 note secured by a security agreement requiring the assets to remain at the leased premises. Shannondoah assigned the lease to Valley City.
- Windward defaulted on rent and on the equipment note; Valley City paid Hat Creek $38,233.78 and amended the lease so Windward would repay Valley City over five years.
- Windward later moved out, removed some equipment, left other equipment behind; Valley City changed the locks, and Windward sued for conversion and breach of lease, among other claims.
- Valley City counterclaimed for breach of the loan and lease; jury verdicts: Valley City recovered $10,470 on the loan claim and $28,723 on the lease claim; Windward prevailed on conversion (damages awarded $0) and defeated Weber’s Dram Shop claim.
- Trial court taxed all costs to Windward. Windward moved for a new trial (challenging the $0 conversion damages) and for relief from judgment under Civ.R. 60(B); both motions were denied. Windward appealed.
Issues
| Issue | Windward’s Argument | Valley City’s Argument | Held |
|---|---|---|---|
| Whether trial court abused discretion denying new trial on conversion damages | Jury’s $0 award is unsupported; converted property had value per Valley City expert, so award is manifestly unjust or error in amount | Jury credibility determinations and set‑off considerations justified the $0 award; verdicts are for jury to weigh | No abuse of discretion; denial affirmed — jury damage assessment stands absent passion/prejudice or manifest injustice |
| Whether trial court abused discretion by taxing all costs to Windward | Windward prevailed on conversion and another claim; thus it was a prevailing party and costs should be apportioned | Defendants prevailed on the substantial portion and obtained greater overall recovery; court may determine prevailing party under Civ.R. 54(D) | No abuse of discretion; court properly determined defendants were the overall prevailing party and taxed costs accordingly |
| Whether admission of unsigned/unallegedly unassigned Security Agreement was reversible error | Admission prejudiced Windward because the agreement supported Valley City’s claims | Security Agreement was admitted with no timely objection at trial; appellate forfeiture applies | Forfeited on appeal; no relief granted. Concurring judge would reach merits but still find no reversible error |
| Whether Civ.R. 60(B) relief was warranted to vacate costs judgment | Mistake, and counsel misconduct in submitting judgment entry without Windward’s approval; pleaded as grounds under Civ.R. 60(B)(1),(3),(5) | Movant did not meet Civ.R. 60(B) standards (meritorious claim, proper grounds, timeliness); trial court has discretion on costs | No abuse of discretion; Windward failed to establish appropriate Civ.R. 60(B) basis or that trial court’s exercise of discretion was unreasonable |
Key Cases Cited
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (Ohio 1983) (abuse of discretion standard defined)
- Moskovitz v. Mt. Sinai Med. Ctr., 69 Ohio St.3d 638 (Ohio 1994) (appellate deference to jury damage determinations absent passion or prejudice)
- GTE Automatic Elec., Inc. v. ARC Indus., Inc., 47 Ohio St.2d 146 (Ohio 1976) (requirements for relief under Civ.R. 60(B))
- Erie R. Co. v. Steinberg, 94 Ohio St. 189 (Ohio 1916) (measure of damages in conversion: value at time of conversion)
- Vance v. Roedersheimer, 64 Ohio St.3d 552 (Ohio 1992) (trial court discretion under Civ.R. 54(D) to allocate costs)
- Pryor v. Webber, 23 Ohio St.2d 104 (Ohio 1970) (measure of damages in tort is to make plaintiff whole)