Younker v. Hayes
108 N.E.3d 258
Ohio Ct. App.2018Background
- Hayes owned four Personal Seat Licenses (PSLs) for prime Browns seats and was obligated to buy season tickets annually; failure would revert the PSLs to the team.
- Younker purchased season tickets from Hayes in 2014–2015 and then agreed to buy the four PSLs for $4,000; he paid Hayes $4,000 by check.
- Hayes initially acknowledged receipt but then contacted the Browns, learned the PSLs were worth much more, refused to transfer, and returned Younker's $4,000 after he sued for breach.
- Hayes was properly served but did not answer; the trial court entered default judgment on liability for breach and reserved damages/specific performance for hearing.
- At the damages hearing only Younker testified; the magistrate denied specific performance and awarded zero money damages, applying mutual mistake language and concluding fair market value equaled $4,000.
- On appeal the Ninth District reversed: it held the trial court improperly applied mutual mistake despite Hayes's default (waiving affirmative defenses) and erred in calculating market value at the contract formation date rather than the breach date; the matter was remanded for proper damages determination.
Issues
| Issue | Plaintiff's Argument (Younker) | Defendant's Argument (Hayes) | Held |
|---|---|---|---|
| Whether the trial court could apply mutual mistake after default on liability | Mutual mistake was inapplicable; default admitted liability and waived defenses | (No responsive brief filed) | Court: Applying mutual mistake was erroneous because default admitted breach and waived affirmative defenses; trial court erred by effectively rescinding contract. |
| Proper measure/time for fair market value damages for breach of contract for sale of personal property | FMV should be market price at time of breach (difference between contract price and market price at breach) | (No responsive brief filed) | Court: Trial court misstated law by using market value at contract formation; remanded to determine damages using market price at breach. |
| Whether specific performance should have been ordered | Younker sought specific performance; contended no legal basis to deny it | Hayes did not appear/brief | Court: Declined to address on merits because appellant failed to cite authority in his brief; waived on appeal. |
| Whether internet price evidence was admissible (hearsay) | Younker argued web prices showed FMV; objected to exclusion on hearsay grounds | Hayes did not appear/brief | Court: Did not reach merits—Younker forfeited the argument by not raising it in objections to the magistrate and did not invoke plain error. |
Key Cases Cited
- Reilley v. Richards, [citation="69 Ohio St.3d 352"] (Ohio 1994) (defines mutual mistake as mistake of basic assumption with material effect)
- Ohio Valley Radiology Assocs., Inc. v. Ohio Valley Hosp. Assn., [citation="28 Ohio St.3d 118"] (Ohio 1986) (default judgment consequences; failure to answer risks default)
- Rylee Ltd. v. Izzard Family Partnership, [citation="178 Ohio App.3d 172"] (Ohio Ct. App. 2008) (mutual mistake means no enforceable contract)
- Western Union Telegraph Co. v. Hall, [citation="124 U.S. 444"] (U.S. 1888) (measure of damages for executory contract: difference between contract price and market price at breach)