Utz v. Stovall , 2013 Ohio 4299 ( 2013 )

[Cite as Utz v. Stovall, 2013-Ohio-4299.]
IN THE COURT OF APPEALS
ELEVENTH APPELLATE DISTRICT
PORTAGE COUNTY, OHIO
JEAN UTZ, : OPINION
Plaintiff-Appellee, :
CASE NO. 2012-P-0135
- vs - :
PHYLLIX STOVALL, :
Defendant-Appellant. :
Civil Appeal from the Portage County Court of Common Pleas.
Case No. 2009 CV 00378.
Judgment: Affirmed.
Thomas N. Ganiaris, 1930 Route 70 East, Suite L-59, Cherry Hill, NJ 08003 (For
Plaintiff-Appellee).
Edward G. Kramer, Fair Housing Law Clinic, Jeremiah Ensworth House, 3214
Prospect Avenue, East, Cleveland, OH 44115-2601 (For Defendant-Appellant).
TIMOTHY P. CANNON, P.J.
{¶1} Appellant, Phyllix Stovall, appeals the judgments of the Portage County
Court of Common Pleas denying her motion for summary judgment, denying her
motions for directed verdict, and granting plaintiff, Jean Utz’s, motion for a new trial.
The underlying action is a cause for breach of contract and defamation per se arising
out of letters Stovall sent to Utz’s employer, the superintendent of Streetsboro schools.
The correspondence basically alleged that Utz made a derogatory racial comment,
harassed her children, and was a threat to other school children. Upon close of Utz’s
case, the trial court determined the statements were not made in good faith and/or were
made with actual malice and, as a result, did not give an instruction regarding the
defense of qualified privilege. The jury returned a verdict in favor of Utz, awarding
$191,000 in punitive damages, though no compensatory damages.
{¶2} We conclude the following: the trial court’s ruling on summary judgment is
moot by virtue of the subsequent trial on the same issues demonstrating that there
were, in fact, genuine issues of material fact supporting a judgment in favor of Utz, the
nonmoving party; the trial court did not err in determining a qualified privilege did not
apply; the trial court did not err in denying Stovall’s motions for directed verdict because
there was a sufficient evidentiary basis on which to conclude all elements of defamation
per se had been met; and the trial court did not abuse its discretion in ordering a new
trial because of confusing instructions requiring the jury to consider both the
compensatory and punitive damages, and because punitive damages may not be
awarded when a jury fails to award compensatory damages. As we affirm the order for
a new trial, the issue of whether the punitive damages are excessive is moot. We affirm
the judgments of the trial court.
{¶3} Stovall and Utz are neighbors and have abutting properties in Streetsboro,
Ohio. Since 2000, the pair have quarreled over property and zoning issues, most
notably Stovall’s decision to erect a privacy wall on the property line which Utz
previously characterized as a “monstrosity.” The long-standing property dispute
culminated in Stovall and her husband, Ray Stovall, filing a complaint in federal court
against numerous defendants, including Utz. Relevant to this appeal, the Stovalls
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alleged Utz’s various complaints concerning their property were racially motivated. The
factual allegations of the complaint filed in federal court set forth that Utz “took on a
campaign to continually harass and intimidate the Stovall family because of their race
and color.” The complaint noted that Utz works at the school district the Stovall children
attend, and that one of the Stovall children witnessed Utz “declining to assist a black
child.” The complaint charged that Utz has harassed, intimidated, humiliated, and
embarrassed every member of the Stovall family and noted that the Stovalls “fear for
the safety of their two young children.”
{¶4} On August 20, 2008, the Stovalls entered into a settlement agreement
with certain defendants, including Utz. The agreement provided, in relevant part:
The Stovalls expressly agree that they will not use as a basis for
any future claim they might pursue against * * * Utz, any fact or
circumstance that occurred prior to the execution of this Agreement
asserting that such fact or circumstance is a basis of a continuing
violation for the purposes of establishing timeliness relating to a
statute of limitations.
{¶5} On January 22, 2009, Stovall attended a spelling bee at Streetsboro
Middle School in which her son was a participant. Utz attended the same spelling bee;
her daughter was also a participant and, ultimately, the victor. The following day,
Stovall wrote a letter to Utz’s boss, Streetsboro Superintendent Linda Keller, wherein
she alleged that Utz made a racially-motivated, derogatory, and “vexatious” comment
during the spelling bee. Stovall alleged that Utz made a comment to her daughter
purposefully within earshot of Stovall’s son, remarking: “Kaley what’s wrong? Do you
smell an odor?” Stovall explained that this comment was directed at her son and
concluded, in part:
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I don’t believe my child is being protected by the school district if
Mrs. Utz is allowed to verbally attack my son’s character. She
works for the school district and has been questioned about
previous demeaning behavior. * * * Her intentional infliction of
emotional distress on my children is dangerous; due to her willful
and wanton misconduct, her loss of regard for morality is a threat to
the safety and wellbeing among their peers.
{¶6} As a result, a formal school inquiry was initiated, and Stovall wrote
numerous follow-up letters as the investigation into the harassment allegations
unfolded. On February 9, 2009, Stovall wrote to Superintendent Keller, attaching an
article from the Indian Reservation that reminded her “of the many abuses my children
faced living in Streetsboro and dealing with the City’s school employee.” The parties
had a meeting together, after which Stovall wrote she was not satisfied with Utz’s
responses. Stovall attached two articles on racially-divided communities, explaining
that the articles would provide insight into “why the remark was made, the reason it was
made at that time and place, and why it is allowed to continue.”
{¶7} On February 17, 2009, Dr. Richard F. Vrable, Director of Special Services
for Streetsboro Schools, sent a letter to the Stovalls informing them that he would be
initiating a further, full investigation. Stovall responded to the letter on February 22,
2009, explaining, in part:
Mrs. Utz’s offensive behavior deprives all of our children of an
environment that is conducive to learning. There have been many
attempts to solve other problems created by Mrs. Utz. We have
been unsuccessful instilling ideals and behavioral patterns which
are consistent with mutual understanding, cooperation and respect.
{¶8} The letter went on to explain that Utz’s “harassing and humiliating
behavior has had a negative effect” on the educational development of the Stovall
children.
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{¶9} On March 12, 2009, Utz filed a complaint against Stovall alleging that
Stovall had published false statements to the school and had repeated references to
alleged past discriminatory conduct. Thus, the complaint alleged defamation, libel, and
slander per se (Count One); intentional infliction of emotional distress (Count Two);
intentional interference with business relationship (Count Three); and breach of
contract, arising out of the settlement agreement (Count Four). Count Two and Count
Three are not at issue in this appeal.
{¶10} The trial court denied competing motions for summary judgment, and the
matter proceeded to a jury trial. Upon close of Utz’s evidence, Stovall requested the
trial court find a qualified privilege. The trial court explained it found actual malice,
which negated the element of good faith required for a qualified privilege.
{¶11} Upon the close of all evidence, the parties agreed the claim for
compensatory damages and the claim for punitive damages would not be bifurcated
pursuant to R.C. 2315.21(B)(1). As such, the jury instructions set forth the issue of both
categories of damage. The jury returned a verdict for Utz, awarding $191,000 in
punitive damages, though awarding no compensatory damages.
{¶12} Following trial, Stovall filed a motion for judgment notwithstanding the
verdict, claiming the punitive damages award could not stand without compensatory
damages and was excessive. Specifically, Stovall contended that Utz failed to prove
actual damages, and thus, the punitive damages award should be stricken. Utz also
filed a motion for judgment notwithstanding the verdict or, in the alternative, a motion for
a new trial. Utz argued that she did, in fact, prove compensatory damages, imploring
the court to respect the $191,000 damages award, but restate the award as $31,000 to
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$96,000 for compensatory damages and the remainder as punitive damages.
Alternatively, Utz argued a new trial should be granted, asserting that the jury found she
should prevail, but apparently did not follow the instructions concerning damages.
{¶13} The trial court granted Utz’s motion for a new trial, noting:
The jointly prepared jury instructions included instructions for
nominal damages, compensatory damages and punitive damages.
It is clear that the jury instructions were deficient and lacked proper
guidance to assist the trier of fact in reaching a reasonable verdict.
The instructions, lack of interrogatories and general verdict forms
confused the jury in their analysis and findings.
{¶14} Stovall now appeals and asserts five assignments of error for review by
this court which, for ease of discussion, will be addressed out of numerical order.
Summary Judgment
{¶15} Stovall’s first and second assignments of error state:
[1.] The trial court erred in not granting Appellant Stovall’s motion
for summary judgment since there was no clear and convincing
evidence that Stovall’s administrative complaint was made with
actual malice.
[2.] The trial court erred in not granting Appellant Stovall’s summary
judgment since there was no breach of the settlement agreement.
{¶16} Under her first and second assignments of error, Stovall claims the trial
court erred as a matter of law in denying her motion for summary judgment. Utz points
out the trial court did not technically rule on Stovall’s motion, but in any respect, Utz
argues the matter is moot. We point out that “a trial court’s failure to rule on a motion
creates a presumption that the trial court overruled the motion.” Cunnane-Gygli v.
MacDougal, 11th Dist. Geauga No. 2004-G-2597, 2005-Ohio-3258, ¶20. Further, the
trial court also denied Utz’s motion for summary judgment, determining genuine issues
of material fact existed with regard to her claims.
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{¶17} As a preliminary matter, we address Utz’s contention that the matter is
moot. As argued by Utz, the Supreme Court of Ohio has stated that “[a]ny error by a
trial court in denying a motion for summary judgment is rendered moot or harmless if a
subsequent trial on the same issues raised in the motion demonstrates that there were
genuine issues of material fact supporting a judgment in favor of the party against whom
the motion was made.” Continental Ins. Co. v. Whittington, 71 Ohio St.3d 150 (1994),
syllabus.
{¶18} As this court further explained in Kessler v. Totus Tuss, L.L.C., 185 Ohio
App.3d 240, 2009-Ohio-6376, ¶38 (11th Dist.):
The point is, even if the trial court’s ruling on a moving party’s
motion was incorrect on a matter of law, reversing the matter would
be more unjust to the party who won judgment after the evidence
was more completely presented, cross-examination had, and where
witnesses were heard and their credibility appraised. * * * In effect,
even if appellants’ motion had some legal merit prior to
presentation of all the evidence, the denial was inconsequential due
to the court’s judgment after the trial on the merits.
{¶19} Here, the court’s judgment after the trial on the merits has been set aside
and held for naught, subject to review by this court; accordingly, we cannot conclude the
matter is moot.
{¶20} Our concern, however, lies with the procedural effect of this denial after a
new trial has been ordered. The denial of a summary judgment motion does not
determine an action and prevent a judgment and, therefore, generally does not
constitute a final order. Celebrezze v. Netzley, 51 Ohio St.3d 89, 90 (1990).
Specifically, “the denial of summary judgment in defamation actions is not ‘an order
made in a special proceeding,’ pursuant to R.C. 2505.02[.]” Id. at 92-93. However, “[i]f
a trial court determines, as here, that a genuine issue exists as to whether the allegedly-
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libelous statements were not protected expressions of opinion, then summary judgment
must be denied, and such denial ‘is reviewable on appeal by the movant [only] from a
subsequent adverse final judgment.’” Id., quoting Balson v. Dodds, 62 Ohio St.2d 287(1980), paragraph one of the syllabus. This case presents something of a procedural
quagmire: Stovall did indeed face a subsequent adverse judgment; however, that
judgment has been set aside and held for naught, subject to review by this court. In
effect, this order still does not determine the action or prevent a judgment.
{¶21} Stovall argues summary judgment as to the defamation claim was
appropriate as a matter of law because her complaint to the school enjoyed a qualified
privilege.
{¶22} This court has previously cited the elements a defendant must prove to
invoke the qualified privilege defense as follows: “[A] defendant must establish that (1)
he acted in good faith; (2) there was an interest to be upheld; (3) the statement was
limited in its scope to the purpose of upholding that interest; (4) the occasion was
proper; and (5) the publication was made in a proper manner and only to proper
parties.” Mosley v. Evans, 90 Ohio App.3d 633, 636 (11th Dist.1993), citing Hahn v.
Kotten, 43 Ohio St.2d 237, 246 (1975).
{¶23} In McCoy v. Maxwell, 11th Dist. Portage No. 2001-P-0132, 2002-Ohio-
7157, ¶30, citing Dresher v. Burt, 75 Ohio St.3d 280, 293 (1996), we addressed a
defendant’s motion for summary judgment on the grounds of qualified privilege:
A defendant moving for summary judgment on the basis of qualified
privilege must present sufficient evidence to demonstrate that no
genuine issue of material fact exists as to each of the elements of
the affirmative defense. * * * If the defendant can establish that
there is no genuine issue of material fact on each element, then the
plaintiff can only overcome qualified privilege by establishing with
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convincing clarity that defendant acted with actual malice. In a
summary judgment motion claiming an affirmative defense,
however, the nonmoving plaintiff does not have to present any
evidence unless the defendant first satisfies her burden.
{¶24} Upon review, the evidentiary material supported that Stovall’s complaint
was framed under a concern about her children. This is an appropriate interest to be
upheld. The issue, however, becomes whether Stovall acted in good faith and,
moreover, whether these complaints were limited in their scope to the purpose of
upholding that interest. The issue is whether Stovall’s comments beyond the mere
recitation of Utz’s objectionable remark satisfied the “limited scope” element. When
construing the evidence in favor of the nonmoving party, it is clear this is a question that
cannot be resolved based on the evidentiary materials submitted. It cannot be
concluded the court erred in finding there to be genuine issues of fact which needed to
be resolved at trial.
{¶25} Stovall next argues summary judgment as to the breach of contract claim
was appropriate as a matter of law because, quite simply, she did not breach the terms
of the settlement agreement, and assuming she did, Utz could not prove damages.
{¶26} Paragraph 3 of the Settlement Agreement releases Utz from “any and all
manner of claims, demands, warranties, actions, causes of action, suits * * * damages
of whatever nature * * * including, but not limited to, those matters asserted in the Action
or that could have been asserted in the Action.” The Settlement Agreement also stated
that the Stovalls “expressly agree that they will not use as a basis for any future claim
they might pursue against * * * Utz, any fact or circumstance that occurred prior to the
execution of this Agreement asserting that such fact or circumstance is a basis of a
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continuing violation for the purposes of establishing timeliness relating to a statute of
limitations.”
{¶27} Paragraph 9 of the Settlement Agreement states “there will be no
retaliatory action taken by the Parties against one another.”
{¶28} Generally, a breach of contract occurs when a party demonstrates the
existence of a binding contract or agreement; the non-breaching party performed its
contractual obligations; the other party failed to fulfill its contractual obligations without
legal excuse; and the non-breaching party suffered damages as a result of the breach.
See National City Bank v. Erskine & Sons, 158 Ohio St. 450 (1953).
{¶29} The Settlement Agreement, executed August 20, 2008, specifically
prohibits Stovall from asserting as “the basis for any future claim” any fact or
circumstance that occurred prior to the execution of the agreement and releases Utz
from, inter alia, any and all claims asserted in the prior action or claims that could have
been asserted in the prior action. Evidentiary material demonstrates that Stovall’s
writings are laced with incidents and allegations that occurred prior to the parties
executing the Settlement Agreement, to wit: “Mrs. Utz has taunted us with racially
motivated rhetoric for the past eleven years”; “I have had to endure this behavior, the
verbal abuse and insults for many years”; “[s]he works for the school district and has
been questioned about previous demeaning behavior”; and “[w]e have been
unsuccessful instilling ideals and behavioral patterns which are consistent with mutual
understanding, cooperation and respect.” A jury could determine that this complaint
against Utz was presented, at least in part, based on incidents that occurred prior to
execution of the Settlement Agreement. With regard to damages, Utz averred that after
10
seeing the formal written complaint she was ill and has experienced numerous physical
ailments for which she has sought medical treatment. Utz also averred that she has
had to use numerous personal days as a result of Stovall’s breach of the Settlement
Agreement.
{¶30} It therefore cannot be concluded that the trial court erred in finding this to
be an issue for determination at trial.
{¶31} Stovall’s first and second assignments of error are without merit.
{¶32} Stovall’s third and fifth assignments of error state:
Qualified Privilege
{¶33} “[3.] [The] trial court erred in not making a ruling that filing of the
administrative complaint was subject to qualified privilege.”
Directed Verdict
{¶34} “[5.] The trial court erred in not granting Appellant Stovall’s two motions for
a directed verdict stating that there was no clear and convincing evidence that Stovall’s
complaint was made with actual malice and that Stovall breached the terms of the
settlement agreement.”
{¶35} Pursuant to Civ.R. 50(A)(4), a motion for directed verdict should be
granted when, after construing the evidence most strongly in favor of the party against
whom the motion is directed, “reasonable minds could come to but one conclusion upon
the evidence submitted and that conclusion is adverse to such party[.]”
{¶36} When a trial court determines whether to grant a motion for directed
verdict, it is testing the legal sufficiency of the evidence by examining the materiality of
the evidence rather than the conclusions which can be drawn from such evidence.
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Eldridge v. Firestone Tire & Rubber Co., 24 Ohio App.3d 94, 96 (10th Dist.1985). It is
therefore a legal determination of whether only one result can be reached under the
“theories of law presented.” Id. The trial court must give the opposing party the benefit
of all reasonable inferences from the evidence and must not independently weigh the
evidence or determine the credibility of the witnesses. Id. As the motion for directed
verdict presents questions of law and not factual issues, this court employs a de novo
standard of review. Nationwide Mut. Fire Ins. Co. v. Guman Bros. Farm, 73 Ohio St.3d
107, 108 (1995).
{¶37} After Utz rested, Stovall moved for a directed verdict, which was denied
with respect to the counts of breach of contract, defamation, libel, and slander per se.
The trial court stated, “after listening to the evidence, at least from the Plaintiff’s side,
there seems to be actual malice, and, therefore, no qualified privilege.”
{¶38} After the close of evidence, Stovall renewed the motion for directed
verdict. The motion was again denied.
{¶39} The parties then argued whether the issue of qualified privilege should be
presented to the jury. Utz’s attorney indicated that Stovall could not meet all five
requirements to invoke qualified privilege, i.e, that she acted in good faith; there was an
interest to be upheld; the statement was limited in its scope to the purpose of upholding
that interest; the occasion was proper; and the publication was made in a proper
manner and only to proper parties. Specifically, Utz’s attorney argued that Stovall could
not demonstrate that she acted in good faith and that the statement was properly limited
in its scope. Conversely, Stovall argued that she met the five elements of qualified
privilege.
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{¶40} The trial court found Stovall’s affirmative defense of qualified privilege
inapplicable, noting it agreed with Stovall that the statement was limited in its scope, but
stated: “on lack of good faith, that’s a little different. Do I believe there was actual
malice here? Yes, I do. I mean, it’s overwhelming, I think. So I’m going to deny
qualified privilege.”
{¶41} Therefore, in denying Stovall’s motions for directed verdict, the trial court
found the doctrine of qualified privilege inapplicable. On appeal, Stovall maintains that
a parent has the right to file a complaint against a school employee and that the
defense of qualified privilege is applicable to this case. We must decide whether the
statements made by Stovall were qualifiedly privileged.
{¶42} Conditional or qualified privilege is based on public policy. It does
not change the actionable quality of the words published, but
merely rebuts the inference of malice that is imputed in the absence
of privilege, and makes a showing of falsity and actual malice
essential to the right of recovery.
{¶43} A qualified or conditionally privileged communication is one made in
good faith on any subject matter in which the person
communicating has an interest, or in reference to which he has a
right or duty, if made to a person having a corresponding interest or
duty on a privileged occasion and in a manner and under
circumstances fairly warranted by the occasion and duty, right or
interest. The essential elements thereof are good faith, an interest
to be upheld, a statement limited in its scope to this purpose, a
proper occasion, and publication in a proper manner and to proper
parties only.
50 American Jurisprudence 2d 698, Libel and Slander, Section 195. (Emphasis added.)
{¶44} Some measure of clarification should be made regarding the issue of
“good faith” and “actual malice” in the context of a claim of qualified privilege. As the
Ohio Supreme Court has held in A & B-Abell Elevator Co., Inc. v. Columbus/Cent. Ohio
Bldg. & Constr. Trades Council, 73 Ohio St.3d 1, 11 (1995):
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{¶45} The issue of ‘good faith’ necessary to establish the privilege should
not be confused with the issue of ‘state of mind’ necessary to
defeat it. See, e.g., St. Amant v. Thompson (1968), 390 U.S. 727,
732 * * *.
{¶46} ‘This distinction has been obscured, especially in the English
cases, by the theory that a privileged occasion is such because the
circumstances repel the inference of malice; that is, they are more
consistent with the absence than the presence of malice. The
fallacy of this rationale is apparent when it is remembered that
“malice” in any real sense is an unimportant factor in defamation
unless the publication is made upon a privileged occasion. It is
strange indeed, then, that the fact that the circumstances negative
the inference of malice is the factor that makes a situation
privileged.’ [2 Harper, James & Gray, The Law of Torts, Section
5.25, at 214-215 (2d Ed.1986).]
{¶47} The issue of malice is consigned to the question of abuse of
privilege. It does not arise unless a privilege is first found to exist.
It is anomalous to suggest that the existence of a privilege is
dependent upon that which is not called into play but for the
existence of the privilege. Moreover, in Ohio a qualified privilege
can be defeated only by a clear and convincing showing that the
communication was made with actual malice. [Jacobs v. Frank, 60
Ohio St.3d 111 (1990)], paragraph two of the syllabus.
{¶48} In essence, if the statements were not made in good faith, the qualified
privilege is inapplicable. Assuming satisfaction of all other aforementioned elements, if
the statements were made in good faith, such as in a situation where there was a belief
in the truth of the assertions, the qualified privilege defense is applicable, thereby
negating recovery by plaintiff. DeAngelo v. W.T. Grant Co., 8th Dist. Cuyahoga No.
22411, 1952 Ohio App. LEXIS 874, *9 (May 26, 1952) (“if the occasion be privileged,
the plaintiff may not recover although he proves that defendant used language
actionable per se and that same was false”). Once the defense of the qualified privilege
is invoked, it can be defeated only through a clear and convincing showing of actual
malice. Id.14
{¶49} In this case, the trial court seems to have determined the statements were
not made in good faith and were made with malicious intent. In reality, once a
determination is made that the statements were not made in good faith, there is no need
for further inquiry. Quite simply, under that circumstance, the qualified privilege defense
is inapplicable.
{¶50} Furthermore, it was not error for the trial court to determine qualified
privilege inapplicable as a matter of law. “Where the circumstances of the occasion for
the alleged defamatory communications are not in dispute, the determination of whether
the occasion gives the privilege is a question of law for the court.” Blantik v. Dennison,
148 Ohio App.3d 494, 505 (11th Dist.2000), citing A & B-Abell Elevator Co., Inc., supra,
at 7. We agree with the conclusion of the trial court that the statements were not made
in good faith, and therefore, the qualified privilege did not apply; it was not error to fail to
instruct the jury on the defense of qualified privilege.
{¶51} Similarly, the trial court did not err in denying Stovall’s motion for directed
verdict with regard to the breach of contract claim. Paragraphs 3 and 9 of the
Agreement provide that Stovall will not use any fact or circumstance that occurred prior
to the execution of the Agreement and will refrain from retaliatory action against Utz. In
Stovall’s letters, she references the past conduct of Utz spanning an 11-year period.
Moreover, Stovall cites to Utz’s past conduct, including “verbal abuse and insults for
many years,” “previous demeaning behavior,” and “behavioral patterns” of Utz.
Furthermore, Stovall maintains that even if Utz demonstrated a breach, she failed to
prove damages as evidenced by the jury verdict. This argument, however, is addressed
in Stovall’s fourth assignment of error.
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{¶52} We do not find error in the trial court’s denial of Stovall’s motion for a
directed verdict with regard to the breach of contract claim.
{¶53} Stovall’s third and fifth assignments of error are without merit.
New Trial
{¶54} Stovall’s fourth assignment of error states:
{¶55} “The trial court erred in granting Utz’s motion for a new trial rather than
only striking the punitive damage verdict and leaving the remainder of the judgment.”
{¶56} In her fourth assignment of error, Stovall argues the trial court erred in
granting Utz’s motion for a new trial and, instead, should have granted Stovall’s motion
for judgment notwithstanding the verdict; i.e., the $191,000 punitive damages award
should have been set aside, thereby leaving the remainder of the jury’s verdict.
Although not properly characterized as error, compounded in this assignment of error is
the trial court’s denial of Stovall’s motion for judgment notwithstanding the verdict. We
find the trial court did not err by granting Utz’s motion for a new trial. Similarly, the trial
court did not err in denying Stovall’s motion for judgment notwithstanding the verdict.
{¶57} An order that vacates or sets aside a judgment or grants a new trial is a
final, appealable order under R.C. 2505.02(B)(3). Pursuant to Civ.R. 50(B), a motion for
a new trial may be joined with a motion for judgment notwithstanding the verdict, or a
new trial may be prayed for in the alternative, as in the case sub judice. New trials are
governed by Civ.R. 59. The trial court granted the new trial based upon the grounds set
forth in Civ.R. 59(A)(3)(4)(5)(7) and (9): Accident or surprise which ordinary prudence
could not have guarded against; Excessive or inadequate damages, appearing to have
been given under the influence of passion or prejudice; Error in the amount of recovery,
16
whether too large or too small, when the action is upon a contract or for the injury or
detention of property; The judgment is contrary to law; and Error of law occurring at the
trial and brought to the attention of the trial court by the party making the application.
{¶58} The decision of whether to grant a motion for a new trial is entrusted to the
sound discretion of the trial court, which “witnessed the trial firsthand and relied upon
more than a cold record to justify a decision.” Harris v. Mt. Sinai Med. Ctr., 116 Ohio
St.3d 139, 2007-Ohio-5587, ¶39. Accordingly, this court reviews a trial court’s decision
on a motion for new trial under the abuse of discretion standard of review. Effingham v.
XP3 Corp., 11th Dist. Portage No. 2006-P-0083, 2007-Ohio-7135, ¶18.
{¶59} Pursuant to R.C. 2315.21(B):
Punitive or exemplary damages are not recoverable from a
defendant in question in a tort action unless both of the following
apply:
(1) The actions or omissions of that defendant demonstrate malice
* * *, or that defendant as principal or master authorized,
participated in, or ratified actions or omissions of an agent or
servant that so demonstrate; [and]
(2) The plaintiff in question has adduced proof of actual damages
that resulted from actions or omissions as described in division
(B)(1) of this section.
{¶60} Consequently, Utz was required to demonstrate evidence of malice on the
part of Stovall and actual damages before her claim for punitive damages could be
considered by the jury.
{¶61} “Malice” is defined as “(1) that state of mind under which a person’s
conduct is characterized by hatred, ill will or a spirit of revenge, or (2) a conscious
disregard for the rights and safety of other persons that has a great probability of
causing substantial harm.” Preston v. Murty, 32 Ohio St.3d 334 (1987).
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{¶62} Here, the jury awarded $191,000 in punitive damages, but did not award
Utz any compensatory damages. Punitive damages may not be awarded when a jury
fails to award compensatory damages. Bishop v. Grdina, 20 Ohio St.3d 26 (1985).
However, in this case, it is clear the trial court felt that compensatory damages, at least
to some degree, had been established. The trial court then noted that the jury
instructions were confusing with regard to damages and concluded that, in the interest
of justice, the proper remedy was to grant a new trial and that the jury should have, at
the very least, awarded nominal damages. We cannot say this was an abuse of the trial
court’s discretion, and we thus concur with the conclusion that a new trial is a proper
remedy under these facts.
{¶63} Stovall’s fourth assignment of error is without merit.
{¶64} Based on the opinion of this court, the judgment of the Portage County
Court of Common Pleas is hereby affirmed.
CYNTHIA WESTCOTT RICE, J.,
THOMAS R. WRIGHT, J.,
concur.
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