BETTY L. CLARK, PLAINTIFF-APPELLEE v. THE ENCHANTED HILLS COMMUNITY ASSOCIATION, ET AL., DEFENDANT-APPELLANT
Case No. 19CA4
IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT HIGHLAND COUNTY
[Cite as Clark v. Enchanted Hills Community Assn., 2020-Ohio-553.]
APPEARANCES:
Tyler E. Cantrell, Office of Young & Caldwell, LLC, West Union, Ohio, for Appellant.
John W. Judkins, Judkins & Hayes, LLC, Greenfield, Ohio, attorney for Anita Brewer, Connie Myers, Carol Morris, Greg Setola, and Jeremy Myers.1
The Enchanted Hills Community Association, Susan K. Thornhill, Statutory Agent.2
Smith, P. J.
{¶1} This is an appeal of a January 29, 2019 judgment entry of the Highland County Court of Common Pleas which awarded judgment in favor of Betty L. Clark (“Appellant“) and against The Enchanted Hills Community Association (“EHCA“). Appellant‘s comрlaint for declaratory judgment was resolved on
FACTS
{¶2} EHCA is a planned community consisting of lots in the Enchanted Hills and Rocky Fork Point subdivisions of Paint Township, Highland County, Ohio. In 1970, EHCA was incorporated, and its articles of incorporation and bylaws were filed with the Secretary of State of Ohio. In 2010, the General Assembly enacted the Ohio Planned Community Law in
{¶3} Appellant is the owner of several lots in both the Enchanted Hills and Rocky Fork Point subdivisions. On October 16, 2017, Appеllant filed a declaratory judgment action pursuant to
{¶4} On November 15, 2017, EHCA, through the previously noted individual defendant trustees, attempted to file an answer. On January 16, 2018, Appellant filed a Motion to Vacate and for Default Judgment pursuant to
{¶5} After granting default judgment, the trial court set the matter for a damages hearing. At the hearing, Appellant testified as to her damages with regard
{¶6} The trial court filed a Decision on Damages Hearing on January 17, 2019, denying compensatory damages and granting attorney fees. The trial court entered judgment on January 29, 2019, in favor of Appellant and against EHCA in the amount of $6,125.00 for her attorney fees. The Court did not grant judgment for compensatory damages.
{¶7} This timely appeal followed. Additional facts, where pertinent, are set forth below.
ASSIGNMENT OF ERROR
“I. THE TRIAL COURT ERRED IN GRANTING THE AMOUNT OF DAMAGES UPON PLAINTIFF‘S/APPELLANT‘S MOTION FOR DEFAULT JUDGMENT.”
{¶8} Within the sole assignment of error, Appellant first asserts that the trial court erred by failing to award compensatory damages in the amount of $60,400.00. Her second assertion is that the trial court erred by failing to award the full requested amount оf attorney fees, $13,771.30. Appellant argues that due to the nature of the disposition of this case, via default judgment, Appellant is entitled to have the allegations contained in the complaint taken as admitted and
A. Compensatory damages
1. Standard of Review
{¶9} A reviewing court ordinarily will uphold a trial court‘s damage award if it is not against the manifest weight of the evidence. Downard v. Gilliland, 4th Dist. Jackson No. 07CA11, 2008-Ohio-3155, at ¶ 7. See Shemo v. Mayfield Hts., 88 Ohio St.3d 7, 10, 722 N.E.2d 1018 (2000); C.E. Morris Co. v. Foley Constr. Co., 54 Ohio St.2d 279, 376 N.E.2d 578 (1978), syllabus. This standard of review is highly deferential and even “some” evidence is sufficient to support a court‘s judgment and to prevent a reversal. See Barkley v. Barkley, 119 Ohio App.3d 155, 159, 694 N.E.2d 989 (4th Dist.1997); Willman v. Cole, 4th Dist. Adams No. 01 CA725, 2002-Ohio-3596, ¶ 24.
2. Legal Analysis
{¶10} Before a money judgment may be awarded, evidence of the damages must be established. Labonte v. Labonte, 4th Dist. Meigs No. 2008-Ohio-5086, at ¶ 19. “Ohio courts have found that, once a right to damages has been established, that right cannot be denied because damages are incapable of being calculated with mathematical certainty. (Internal citation omitted.) However, the amount of damages must be susceptible of ascertainment in some manner other than by mere
{¶11} In the context of damages on default judgment, generally, no proof of damages is required for a liquidated damages claim. See Buckeye Supply Co. v. N.E. Drilling Co., 24 Ohio App.3d 134, 136, 493 N.E.2d 964 (9th Dist.1985) (“It has always been within the discretion of the trial court to determine whether further evidence is required to support a claim against a defaulting defendant.“). A liquidated damages claim is one “that can be determined with exactness from the agreement between the parties or by arithmetical process or by the aрplication of definite rules of law.” Huo Chin Yin v. Amino Prods. Co., 141 Ohio St. 21, 46 N.E.2d 610 (1943); see also Farmers & Merchants State & Savs. Bank v. Raymond G. Barr Ents., Inc., 6 Ohio App.3d 43, 452 N.E.2d 521 (4th Dist.1982) (agreeing that proof of damages is not required where the claim is based on a written instrument, a contract stating a specific amount, or on an account). However, “Ohio law requires the presentation of proof of damages for an unliquidated claim before any can be awarded.” Faulkner v. Integrated Servs. Network, Inc., 8th Dist. Cuyahoga Nos. 81877 and 83083, 2003-Ohio-6474, at ¶ 26.
{¶12} In this case, Appellant claims allegations made in two branches of the complaint entitle her to a damage award of $60,400.00. This figure represents
{¶13} Appellant also testified at the hearing that she had been prohibited from renting a mobile home by EHCA‘s actions. She testified that she could have rented her mobile home and lot for $500.00 a month, for a total of $22,500.00 from a date in 2012. The exact date was never clarified. Appellant argues these damages relate this to Branch 2 of the complaint. Our review of the complaint, however, demonstrates that these allegations are not explicitly stated.
{¶14} We begin by setting forth the pertinent portions of the damages hearing testimony, relating to Branch 5, as follows:
Q: You also in your complaint talked about $50.00 a day damages for the campground. From October 3rd, 2016 in which the new or alleged agent was put in until November 1st when the entry was put on, what would the total be?
A: $37,900.00.
***
At this juncture, the trial court commented:
I don‘t have the faintest idea about this campground thing. And the fact that she stands up here and says its $50.00 a day for x-number of days, I‘m not gonna give her $50.00 a day for x-number of days unless she can prove to a reаsonable degree of certainty the amount of her damages * * * because as you know, uh, Ohio goes with the American rule with respect to damage. *** I don‘t know why she‘s been damaged.
Counsel followed up with additional questions:
Q: If campsites had been allowed, would you have installed a camp site in any of your lots?
A: I probably would have.
Q: And approximately how much do you believe camp sites are renting for?
A: I‘m guessing maybe a hundred dollars а weekend or something.
Q: So about $50.00 a day?
A: Probably.
The trial court stated: She said ‘I‘m guessing.’ And I‘m not going to accept guesstimate. Appellant‘s counsel thereafter inquired as to what she felt the decrease in value was and she answered: “I felt it was $50.00 a day.”
{¶15} Appellant also argues loss allegedly set forth in Branch 2. Appellant testified that she lost money in the amount of $500.00 per month, resulting in a total loss of $22,500.00, due tо EHCA‘s prohibiting her from renting her mobile home.
Q: And have you incurred any other damages as a result of this action?
A: Yes.
Q: And what was it for?
A: I purchased Lot 4 in Enchanted Hills. ***And I put a mobile home there. * * * And I never finished it because they said I wasn‘t allowed to do it. So that cost me $22,500.00.
Q: And how did you come to that amount?
A: Because I was gonna rent it for...I could rent it for $500.00 a month.
Q: And that was for how many months?
A: (35 ?) [sic] Months.
***
Q: And so because you were not able to rent it, were you able to receive thе rental fee that you would have received on that property?
A: No, I was not.
Q: And I think you‘ve already discussed it, but you would have received how much per month?
A: I think it was $22,000.00 but I‘m not sure.
Q: How much per month?
A: $500.00 per month.
Q: Okay. And that would have been from when you placed the mobile home there...
A: Yes.
Q: ...until currently, is that correct?
A: Yes.
{¶16} We find the trial court‘s failure to order compensatory damages in this case is a decision which is not against the manifest weight of the evidence. We agree there is a lack of evidence as to any reasonable or ascertainable evidence of damage. As to the claim for damage to her
{¶17} In the trial court‘s Decision on Damages Hearing, the court stated:
Plaintiff submitted no evidence of the value of her lot and/or evidence of a diminished value of her lot as a proximate cause of the Defendants’ action. In addition, Plaintiff produced no evidence that the actions of Defendants prevented her rental of her lot nor did she produce evidence that her lot could have been rented and/or what the rental rate would have been. Plaintiff‘s testimony was basiсally, I am entitled to $50.00 per day. Whether there is a default or not, this Court cannot speculate on the amount of damages to be awarded the prevailing party.
B. Attorney fees
1. Standard of Review
{¶19} We generally review a trial court‘s decision on a request for attorney fees for an abuse of discretion. 2-J Supply Company, Inc., v. Garrett & Parker, LLC, 4th Dist. Highland No. 13CA229, 2015-Ohio-2757, at ¶ 9; See e.g. Hamilton v. Ball, 2014-Ohio-1118, 7 N.E.3d 1241, ¶ 78 (4th Dist.). To constitute an abuse of discretion, the trial court‘s decision must be unreasonable, arbitrary, or unconscionablе. State v. Adams, 62 Ohio St.2d 151, 157, 404 N.E.2d 144 (1980); State v. Schroeder, 4th Dist. Adams No.18CA1077, 2019-Ohio-4136, at ¶ 19.
2. Legal Analysis
{¶20} Appellant requested $13,771.30 in attorney fees in her complaint and she testified to this amount at the damages hearing. In general Ohio follows the “American rule” for the recovery of attorney fees: a prevailing party in a civil action cannot recover attorney fees as part of the costs of the litigation. 2-J Supply, supra, at ¶ 12; State ex rel. Varnau v. Wenninger, 131 Ohio St.3d 169,
{¶21} The Twelfth District Court of Appeals recently considered similar issues in PHH Mortgage Corporation v. Messersmith, 12th Dist. Warren No. CA2018-05-057, 2019-Ohio-594. The case was decided on summary judgment. The underlying facts are not pertinent to our case. However, on appeal, Messersmith asserted that there were general issues of material fact as to whether one of the defendants, a homeowners’ association, was entitled to collect attorney fees pursuant to
{¶22} The Messersmith court noted that
{¶23} Messersmith explained that the second part of the analysis provides that the trial court may modify its initial calculation after contemрlating the factors set forth in
- the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
- the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
- the fee customarily charged in the locality for similar legal services;
- the amount involved and the results obtained;
- the time limitations imposed by the client or by the circumstances;
- the nature and length of the professional relationship with the client;
- the experience, reputation, and ability of the lawyer or lawyers performing the services;
- whether the fee is fixed or contingent.5
Q: And how many different attorneys have you employed during this action?
A: Three.
***
Q: And did all those attorneys bill you with what you considered according to the standards of the community?
A: Yeah, I think so.
Q: And in total, how much attorney‘s fees have you incurred?
A: $13,771.30.
{¶25} Thereafter, Appellant‘s third attorney testified that he has practiced since 2010, primarily in Adams, Brown, Highland, and Scioto Counties. Counsel testified:
My hourly rate for civil cases is $175.00 an hour. That is from my research and knowledge of everyone locally that is approximately on cue the average rate for Adams, Brown, and Highland, which ranges anywhere from $150.00 to $200.00 an hour. Sometimes with a senior attorney, such as thе one in my office charging up to $250.00 per hour. I
charge $175.00 an hour. That was the agreement that myself and Mrs. Betty Clark had when I began the representation in this matter. ***
At the time, I had Mrs. Clark pay a $2,500.00 retainer, which she paid. * * * I conducted a review and bill of all my hours, and as of I think it was Thursday or Friday I had conducted 30 hours of legal work on this matter at the rate of $175.00 which if my math is correct would be $5,250.00. * * * Again, the аmount of hours, I believe, are appropriate for this matter which was fairly complex and somewhat very confusing due to the multiple cases that have been before this and dealing with all the various entities that have been involved in this case.
{¶26} After our review, we find the trial court did not abuse its discretion in awarding attorney fees in the amount of $6,125.00. We further find that competent crеdible evidence supports the trial court‘s judgment in this matter. In the Decision on Damages Hearing, the court wrote: “The Court has reviewed the file and the testimony of the plaintiff and has determined that a reasonable hourly rate and hours expended amount of $6125. (Fee incurred before hearing, $5250 and
It is well settlеd that where a court is empowered to award attorney fees * * *, the amount of such fee is within the sound discretion of the trial court. Unless the amount of fees determined is so high or so low as to shock the conscience, an appellate court will not interfere. The trial judge [who] participated not only in the trial but also in many of the preliminary proceedings leаding up to the trial has an infinitely better opportunity to determine the value of services rendered by lawyers who have tried a case before him than does an appellate court.
{¶27} The above principle holds true in this case as well. The trial court set forth its reasoning in the Decision on Damages Hearing. The trial court cited the correct fоrmula for calculating attorney fees, as set forth above, as well as its experience deciding attorney fee matters.6 We find no merit to Appellant‘s
{¶28} Based on the foregoing, we find no merit to Appellant‘s sole assignment of error and as such, it is hereby overruled.
JUDGMENT AFFIRMED.
It is ordered that the JUDGMENT BE AFFIRMED and costs be assessed to Appellant.
The Court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this Court directing the Highland County Common Pleas Court to carry this judgment into execution.
Any stay previously granted by this Court is hereby terminated as of the date of this entry.
A certified copy of this entry shall constitute the mandate pursuant to
Abele, J., & Hess, J.: Concur in Judgment and Opinion.
For the Court,
BY: ____________________________
Jason P. Smith
Presiding Judge
NOTICE TO COUNSEL
Pursuant to Locаl Rule No. 14, this document constitutes a final judgment entry and the time period for further appeal commences from the date of filing with the clerk.