Dix Rd. Property Mgt., L.L.C. v. ThomasDix Rd. Property Mgt., L.L.C. v. Thomas
Jeremy E. Thomas, 401 South G Street, Hamilton, Ohio 45013-3218, appellee, pro se
Brittany A. Adams, 401 South G Street, Hamilton, Ohio 45013-3218, appellee, pro se
S. POWELL, J.
{¶ 1} Appellant, Dix Road Property Management LLC (“Dix Road“), appeals from a judgment issued by the Hamilton Municipal Court granting it default judgment against
{¶ 2} On May 24, 2017, Dix Road entered into a contract with Thomas and Adams to lease residential rental property located in Trenton, Ohio. Pursuant to that contract, the parties agreed that a 24% interest rate would apply to and accrue on any outstanding balance that may be found due and payable to Dix Road. After entering into this contract, Thomas and Adams failed to pay rent, late fees, utilities, and other charges then due and payable to Dix Road. As a result, on March 29, 2019, Dix Road filed a complaint for breach of contract requesting $2,670 in damages from Thomas and Adams. Dix Road also requested prejudgment and postjudgment interest at the contracted 24% interest rate plus court costs. Neither Thomas nor Adams filed any responsive pleading to Dix Road‘s complaint.
{¶ 3} On June 12, 2019, Dix Road moved for default judgment against Thomas and Adams. The trial court granted Dix Road‘s motion on June 27, 2019. However, rather than granting Dix Road prejudgment and postjudgment interest at the contracted 24% interest rate, the trial court instead granted Dix Road the following:
Therefore, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Plaintiff Dix Road Property Management, LLC is hereby granted judgment against Defendants Jeremy E. Thomas and Brittany A. Adams, jointly and severally, in the amount of $2,670.00 together with post-judgment interest at the rate of 5% per year, and all costs of this action.
{¶ 4} Dix Road now appeals from the trial court‘s decision, raising the following single assignment of error for review.
{¶ 5} THE TRIAL COURT ERRED TO THE PREJUDICE OF
{¶ 6} In its single assignment of error, Dix Road argues that the trial court erred by failing to award it prejudgment and postjudgment interest at the contracted 24% interest rate. We agree.
{¶ 7} “The Ohio Supreme Court has held that, under
[W]hen money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code, unless a written contract provides a different rate of interest in relation to the money that becomes due and payable, in which case the creditor is entitled to interest at the rate provided in that contract.
(Emphasis added.)
{¶ 8} The statute “encourages payment of money judgments resulting from tort or contract claims” and “incentivizes one to keep financial promises or otherwise interest will be added to the past-due amount from the date of nonpayment.” Ginn v. Stonecreek Dental Care, 12th Dist. Fayette Nos. CA2018-09-019, CA2018-09-019, and CA2018-11-022, 2019-Ohio-3229, ¶ 16. ”
{¶ 9} “The statutory rate set forth in
{¶ 10} Both prerequisites are met in this case; (1) there is a written contract between the Dix Road, Thomas, and Adams that (2) sets forth a 24% interest rate with respect to money that becomes due and payable to Dix Road. By failing to file any responsive pleading to Dix Road‘s complaint, Thomas and Adams admitted the same and assented to the contracted 24% interest rate. “[A] party receiving a default judgment in its favor is entitled to the interest rate specified in the written contract.” Marion Plaza, 2010-Ohio-6267, ¶ 13. Therefore, rather than the default statutory interest rate set forth in
{¶ 12} Judgment reversed and remanded.
HENDRICKSON, P.J., and RINGLAND, J., concur.