Meyer v. Chieffo

Citations: 180 Ohio App. 3d 78; 2008 Ohio 6603; 904 N.E.2d 560Docket: No. 07AP-890.

Court: Ohio Court of Appeals; December 15, 2008; Ohio; State Appellate Court

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Dominic Chieffo appeals a judgment from the Franklin County Court of Common Pleas following a jury trial that found he did not default on a land installment contract with Philip Meyer and determined that Meyer breached the contract concerning mold treatment. Meyer filed a cross-appeal. The case originated from a 2003 land installment contract for a property at 15 Grandview Drive, which Chieffo was to purchase for $209,000. In August 2005, Meyer alleged Chieffo defaulted by failing to make payments and sought to terminate the contract. In response, Chieffo filed multiple counterclaims against Meyer and his property management company, CPR, citing negligence related to mold exposure and various other claims, including breach of contract and premises liability. The case was transferred to the Common Pleas Court, where the jury ultimately found against Meyer on the default claim, ruling he failed to prove Chieffo defaulted. Conversely, the jury confirmed Chieffo's claim that Meyer breached the contract regarding mold treatment but awarded no damages. Post-trial, the court ordered the funds in escrow to be used for mold remediation and entered judgment favoring Chieffo on both claims, although with no damages awarded.

Appellant presents three assignments of error for review: (I) the jury's zero-dollar damages award on the counterclaim is legally erroneous and against the evidence's manifest weight; (II) the trial court incorrectly denied the defendant's evidence regarding physical injuries from mold exposure; and (III) the trial court improperly allocated escrow funds despite a jury verdict that the defendant did not breach the land contract and the plaintiff's failure to maintain the premises. In a cross-appeal, appellee claims the court erred by instructing the jury that they should find for the plaintiff if it proved the defendant defaulted without legal justification.

The primary focus is on appellant's second assignment of error, arguing the trial court's refusal to instruct the jury on personal injury from mold was erroneous. Appellant asserts that evidence of physical injury was relevant to damages. However, appellee contends that the lack of expert testimony linking the mold to appellant's medical condition justified the trial court's decision. Citing the Ohio Supreme Court's ruling in Terry v. Caputo, the court emphasizes that establishing a prima facie case of injury from mold requires expert testimony for both general and specific causation. Since appellant relied solely on his testimony about allergy symptoms without expert evidence connecting them to the specific mold at the residence, the court concludes that the trial court did not err in refusing the instruction. Consequently, appellant's second assignment of error is deemed without merit and overruled.

Appellant challenges the jury's decision to award no damages despite a favorable verdict on his counterclaim for breach of contract regarding mold treatment. He argues that the jury's decision was legally incorrect and contrary to the evidence presented, which included expert testimony estimating mold removal costs between $46,000 and $50,000. Appellee contends that the action, initiated for forcible entry and detainer, does not inherently seek damages, ignoring that appellant's counterclaim included a damages request. The trial court instructed the jury on breach of contract elements and the necessity to determine if any damages were caused by the breach. Evidence revealed mold in the attic, with conflicting expert opinions on remediation costs; appellee's witness estimated $5,995 for treatment, while appellant's experts suggested more extensive and costly repairs. Under Ohio law, judgments must have credible evidence supporting essential case elements to avoid reversal. If a breach is found without proven actual damages, nominal damages may be awarded. The jury found that appellee breached the contract but ultimately awarded no damages to appellant.

Appellant contends that the jury's decision to award no damages despite finding in his favor on the counterclaim may have stemmed from confusion regarding the court-escrowed funds, which they believed would eventually be returned to him. During deliberations, the jury inquired about the status of the escrowed money, specifically whether it would be awarded to CPR regardless of the trial outcome and if they could grant that money to appellant. The trial court informed the jury that the escrow funds would be addressed after their service concluded. Following the verdict, appellant's counsel argued that the jury's confusion led to the verdict, particularly regarding the potential use of the escrow funds for mold treatment. The trial court initially stated it would not allocate funds for mold treatment, deeming such an award contrary to the jury's verdict. However, its later order allowed the use of the escrow funds for this purpose, indicating that the resolution of the mold issue was essential for the parties to move forward. The court specified that any remaining funds after mold treatment would go to appellee, as they were originally meant for land contract payments. While the court refrains from speculating on the jury's motives, it agrees with appellant that he is entitled to at least nominal damages, finding the no-damages verdict inconsistent with the breach of contract liability and against the evidence's manifest weight. Consequently, the court sustains appellant's first assignment of error, remanding for a new trial on damages related to the counterclaim. The third assignment of error regarding the escrow fund disposition is deemed moot due to this remand. Additionally, appellee's cross-assignment of error challenges the trial court's jury instructions regarding his claim for forcible entry and detainer, asserting that the instructions were flawed concerning appellant's alleged default on the land installment contract.

A trial court is obligated to instruct the jury on the relevant law regarding all issues raised by the pleadings and evidence. Appellate courts review whether jury instructions accurately reflect the law de novo. R.C. Chapter 1923 governs forcible entry and detainer actions, specifically allowing any defense to be asserted at trial, including counterclaims based on nonpayment. In this case, the trial court included "no legal justification" language in the jury instructions, reasoning that if the jury found the appellant had a legitimate reason for nonpayment, immediate restitution would not be warranted. This instruction was deemed appropriate given the allegations of nonpayment and the defenses raised by the appellant. The appellee's cross-assignment of error was overruled, and a motion to dismiss the appeal was denied, despite arguments that the trial court did not adequately address amounts due after mold treatment. The appellate court sustained the appellant's first assignment of error, overruled the second, rendered the third moot, overruled the appellee's cross-assignment of error, and denied the motion to dismiss. The judgment of the Franklin County Court of Common Pleas was partially affirmed and partially reversed, with the case remanded for further proceedings.