Portage Exteriors v. Hein Constr., Inc. ( 2014 )


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  • [Cite as Portage Exteriors v. Hein Constr., Inc., 
    2014-Ohio-2930
    .]
    STATE OF OHIO, BELMONT COUNTY
    IN THE COURT OF APPEALS
    SEVENTH DISTRICT
    PORTAGE EXTERIORS, INC.,                                )
    )
    PLAINTIFF-APPELLANT,                            )
    )             CASE NO. 13 BE 5
    V.                                                      )
    )                  OPINION
    HEIN CONSTRUCTION, INC., ET AL.,                        )
    )
    DEFENDANTS-APPELLEES.                           )
    CHARACTER OF PROCEEDINGS:                               Civil Appeal from Court of Common
    Pleas of Belmont County, Ohio
    Case No. 10CV0222
    JUDGMENT:                                               Reversed and Remanded
    APPEARANCES:
    For Plaintiff-Appellant                                 Attorney Dean S. Hoover
    Hudson Station, Suite 3
    5 Atterbury Boulevard
    Hudson, Ohio 44236
    For Defendant-Appellee                                  Attorney John C. Ross
    Daily Harpst, Ltd.
    2475 Massillon Rd.
    Akron, Ohio 44312
    JUDGES:
    Hon. Gene Donofrio
    Hon. Joseph J. Vukovich
    Hon. Cheryl L. Waite
    -2-
    Dated: June 20, 2014
    [Cite as Portage Exteriors v. Hein Constr., Inc., 
    2014-Ohio-2930
    .]
    DONOFRIO, J.
    {¶1}     Plaintiff-appellant, Portage Exteriors, Inc., appeals from a Belmont
    County Common Pleas Court judgment in its favor for $18,350.43 on its claims
    against defendant-appellee, Hein Construction, Inc., following a bench trial.
    {¶2}     This case involves the renovation of the Union Local School District’s
    (ULSD) school building. Hein was the general contractor for the job that included
    replacing the roof, installing and restoring the Exterior Insulation and Finish System
    (EIFS), and restoring the caulking.               Hein subcontracted the EIFS and caulking
    restoration to Portage, which specializes in EIFS. EIFS is a synthetic stucco that
    allows a building to move without cracking.
    {¶3}     The parties entered into a subcontract that provided:
    Scope of work: Per your quote dated 6-25-09; Remove and replace
    EIFS, includes metal flashings & flashing tape, replacement of new
    EMS per plans.          Recoat EIFS, blank out and recoat existing EIFS.
    Painting of existing EIFS. Removal and replacement of caulking at
    windows, doors and control joints.                 Clean windows.   Remove and
    replace down spouts. Rubbish removed to on site dumpster. Received
    and reviewed addendums. Work is to begin July 6th. Total $95,000.00.
    (Pt. Ex.1). The parties subsequently entered into a “change order” for additional
    EIFS and painting work for $14,480.62. This resulted in a total subcontract price of
    $109,480.62. (Pt. Ex. 3).
    {¶4}     The ULSD project also had Plans and Specifications setting out the job.
    The parties disputed whether the Plans and Specifications were part of the Hein-
    Portage subcontract.
    {¶5}     Before beginning work on the school, Portage performed a “mock-up.”
    A mock-up is a small sample of the work to be done. In the mock-up, Portage used a
    silicone caulking consistent with the Specifications. But Portage used a urethane
    compound on the job, which was inconsistent with the Specifications.
    {¶6}     Hein paid Portage’s first payment application in the amount of $19,800.
    -2-
    (Pt. Exs. 14, 17). Disputes then arose regarding the quality of Portage’s work. Hein
    did not make any further payments to Portage.
    {¶7}   Specifically, on September 30, 2009, a “pull test” was performed on
    Portage’s caulking work. A pull test involves cutting a portion of the caulking to make
    a tab and then pulling the tab to check the adherence of the caulking. According to
    those present, Portage’s work failed the pull test. According to Donovan Hysell,
    Portage’s owner, the caulking failed the pull test because the caulk had not had
    sufficient time to cure and because waterproofing material had been applied which
    prevented the caulk from properly adhering.
    {¶8}   Hein subsequently hired another subcontractor to redo Portage’s work.
    {¶9}   On February 24, 2010, Portage filed a complaint against Hein asserting
    claims for breach of the subcontract and violation of Ohio’s Prompt Payment Act.
    Hein filed a counterclaim for breach of contract and also sought a declaratory
    judgment that Portage’s lien on certain funds be discharged. Portage then amended
    its complaint adding another count to foreclose on the funds under lien.
    {¶10} Hein moved for partial summary judgment on Portage’s Prompt Pay
    claim. Portage responded with its own motion for partial summary judgment on the
    same issue. The trial court denied Hein’s motion for summary judgment. It granted
    Portage’s motion only as it related to $2,475 due to Portage and denied it in all other
    respects.
    {¶11} The matter proceeded to a bench trial.         The trial court found that
    although Portage completed the work, it did not do so in a manner that complied with
    the Specifications and Plans applicable to this public project. It found that Portage
    should have used silicone joint sealant, but instead used polyurethane sealant. It
    also found that Portage should have cleaned out the joints immediately before
    installing new sealant, but instead Portage spent over a month cleaning the joints
    and allowed weeks to pass before the clean joints were sealed. The court further
    found that the manufacturer would not warrant the work and expert testimony
    supported Hein’s conclusion that the work had to be redone. The court did find that
    -3-
    Hein’s application of waterproofing material to certain joints may have contributed to
    the failure of the caulking material to adhere to the joints properly. The court noted it
    was undisputed that Hein did not pay Portage.
    {¶12} The court found that Portage did not prove by a preponderance of the
    evidence that its work was substantially compliant with the contract. It found that the
    caulking was not performed in compliance with the contract and was not guaranteed
    in accordance with the contract. It further found that Hein was compelled to redo
    Portage’s work and Portage refused to assist. The court found Hein owed Portage
    $18,350.43 as the value of Portage’s work. It stated that the $2,475 already awarded
    in summary judgment was included in this award and that prejudgment interest was
    owed on that part of the award. It also found that because a good faith dispute arose
    in this case, no attorney fees were warranted. Accordingly, the trial court entered
    judgment for Portage in the amount of $18,350.43.
    {¶13} Portage filed a timely notice of appeal on March 22, 2013.
    {¶14} Portage raises four assignments of error, the first of which states:
    THE TRIAL COURT ERRED AS A MATTER OF LAW WHEN IT
    CONSTRUED        A   CONSTRUCTION          CONTRACT       TO    INCLUDE
    SEPARATE CONSTRUCTION SPECIFICATIONS NOT MENTIONED
    IN   THE    CONTRACT       WHERE       THE    PARTIES      AGREE      THE
    CONTRACT WAS A FULL AND FINAL EXPRESSION OF THEIR
    AGREEMENT.
    {¶15} Portage asserts that both parties offered testimony that the subcontract,
    consisting of a one-page purchase order, along with a “change order” constituted the
    entire contract between them. It argues that despite this testimony, the trial court
    construed the contract to include the separate specifications included as part of
    Hein’s prime contract with ULSD. Portage argues this was error. It claims the court’s
    stated motivation for doing so, public policy, should not have been a consideration
    here because the subcontract and change order made up the entire agreement
    -4-
    between the parties. It asserts there was no testimony that the subcontract was
    ambiguous. Portage argues that if Hein wanted the terms of the prime contract to be
    included in the subcontract, it should have incorporated it either expressly or by a
    “flow down” provision, which is common in construction contracts.
    {¶16} Construing a contract is a matter of law. Monroe Excavating, Inc. v.
    DJD &C Dev., Inc., 7th Dist. No. 10 MA 12, 
    2011-Ohio-3169
    , ¶22, citing Alexander v.
    Buckeye Pipe Line Co., 
    53 Ohio St.2d 241
    , 
    374 N.E.2d 146
     (1978), paragraph one of
    the syllabus. When a contract’s terms are clear and unambiguous, a court cannot
    look beyond the plain language of the agreement to determine the rights and
    obligations of the parties. Cocca Dev. v. Mahoning Cty. Bd. of Commrs., 7th Dist. No.
    08MA163, 
    2010-Ohio-3166
    , ¶26, citing Aultman Hosp. Assn. v. Community Mut. Ins.
    Co., 
    46 Ohio St.3d 51
    , 53, 
    544 N.E.2d 920
     (1989). But if a contract is reasonably
    susceptible to more than one meaning, then it is ambiguous and parol evidence can
    be considered. 
    Id.,
     citing City of Steubenville v. Jefferson Cty., 7th Dist. No. 07JE51,
    
    2008-Ohio-5053
    , ¶22.
    {¶17} The parol-evidence rule provides that when parties intend a writing to
    be a final embodiment of their agreement, it cannot be modified by evidence of earlier
    or contemporaneous agreements that might add to, vary, or contradict the writing.
    Bellman v. Am. Internatl. Group, 
    113 Ohio St.3d 323
    , 
    2007-Ohio-2071
    , 
    865 N.E.2d 853
    , ¶7, citing Black's Law Dictionary (8th Ed.2004) 1149. The parol-evidence rule is
    meant to prevent a party from introducing extrinsic evidence of negotiations that took
    place before or while the agreement was being reduced to writing. 
    Id.,
     citing Black's
    Law Dictionary at 1149.     Furthermore, the rule assumes the writing reflects the
    parties’ minds at a point of maximum resolution. 
    Id.,
     citing Black's Law Dictionary at
    1150. Therefore, the rule provides that duties and restrictions that do not appear in
    the writing were not intended by the parties to survive.       
    Id.,
     citing Black's Law
    Dictionary at 1150.
    {¶18} In this case, Jeff Hein, the president of Hein Construction, testified that
    he saw the subcontract between Hein and Portage, approved it, and thought it was a
    -5-
    complete expression of the deal between the parties. (Tr. 80; Pt. Ex. 1). Donovan
    Hysell, Portage’s owner, testified that he felt the subcontract was a clear expression
    of the deal between the parties. (Tr. 168). Thus, the representatives from both Hein
    and Portage believed the subcontract was a complete expression of the deal
    between the parties.
    {¶19} But two phrases in the subcontract are ambiguous:
    Scope of work: Per your quote dated 6-25-09; Remove and replace
    EIFS, includes metal flashings & flashing tape, replacement of new
    EMS per plans.      Recoat EIFS, blank out and recoat existing EIFS.
    Painting of existing EIFS. Removal and replacement of caulking at
    windows, doors and control joints.       Clean windows.      Remove and
    replace down spouts. Rubbish removed to on site dumpster. Received
    and reviewed addendums. Work is to begin July 6th. Total $95,000.00.
    (Pt. Ex.1; Emphasis added). The terms of the subcontract state that the replacement
    of the EIFS is to be completed “per plans.” However, the subcontract does not
    identify what “plans” it is referring to. Additionally, the subcontract states that the
    parties “received and reviewed addendums.” But the subcontract is silent as to what
    the addendums are and the terms of the addendums.          Thus, the trial court was able
    to look beyond the four corners of the subcontract in interpreting it.
    {¶20} Jeff Hein testified that when he was interviewing Hysell to be a
    subcontractor, Hysell reviewed the Plans and Specifications.         (Tr. 608-609).   He
    stated that Hysell had the Plans and Specifications before him on the table and they
    went through the specification book together to see if there were any questions or
    concerns. (Tr. 609-610). Jeff testified that Hysell told him that he understood the
    ULSD project would have to conform with the Plans and Specifications. (Tr. 610).
    Jeff further stated Hysell indicated he understood he had to perform the work
    according to the Plans and Specifications. (Tr. 610-611).
    {¶21} Matthew Hein, Hein’s project estimator and coordinator, testified that
    -6-
    during his conversations with Hysell during the bidding process, Hysell indicated that
    he had reviewed the Plans and Specifications. (Tr. 660-661).
    {¶22} Hysell testified that in preparing his bid, he reviewed the Plans for the
    project. (Tr. 208). However, Hysell admitted that at his deposition he stated that he
    had reviewed both the Plans and Specifications. (Tr. 212). He claimed he must not
    have understood the question at the deposition. (Tr. 212-213). Hysell did testify that
    when he prepared the quote for Hein, he intended to perform the caulking removal
    and replacement according to the Plans and Specifications. (Tr. 221). Additionally,
    Hysell testified that the subcontract does not provide that Portage was required to
    perform a mock-up or to give a 20-year warranty. (Tr. 259). Nonetheless, Hysell
    stated that Portage did two mock-ups and was prepared to give a 20-year warranty.
    (Tr. 259-260). Additionally, Hysell testified that, per the Specifications, Portage was
    to prepare the joints by brushing, grinding, blasting, mechanical blasting or a
    combination of those methods. (Tr. 243). These items, the mock-ups, the warranty,
    and the joint preparation appear only in the Specifications. (Tr. 259-260).
    {¶23} Given this testimony, both Hein and Portage intended for Portage to
    comply with the Plans and Specifications. Hysell’s actions are especially telling. He
    performed mock-ups per the Specifications. He knew Portage was to prepare the
    joints in the manner described in the Specifications. And he knew Portage was to
    provide a warranty in accordance with the Specifications. In addition, the testimony
    indicated that Hysell reviewed the Plans and Specifications before submitting his
    proposal to Hein.
    {¶24} Thus, the trial court did not err in construing the subcontract to include
    the terms of the Plans and Specifications.
    {¶25} Accordingly, appellant’s first assignment of error is without merit.
    {¶26} Portage’s second assignment of error states:
    THE TRIAL COURT ERRED AS A MATTER OF LAW BY
    AWARDING        HEIN $20,000      AS    DAMAGES      FOR     PORTAGE’S
    FAILURE TO DELIVER A WARRANTY WHEN THERE WAS NO
    -7-
    COMPETENT, CREDIBLE EVIDENCE SUPPORTING THE DAMAGES
    AND THE TRIAL COURT CHARGES THE SAME DAMAGES TWICE.
    {¶27} The trial court found that Portage breached the subcontract by failing to
    provide ULSD with a warranty required under the Specifications and Plans. For this
    breach, the court found Hein was entitled to be reimbursed $20,000.
    {¶28} Portage contends there was no evidence to support the court’s award.
    It asserts the only evidence was testimony that ULSD withheld $20,000 from Hein’s
    payment.    Portage argues there was no evidence that the warranty was worth
    $20,000, that it cost anybody $20,000 to replace the missing warranty, or that the
    $20,000 retained by ULSD would not be released to Hein at some later date.
    Additionally, Portage contends the trial court charged it for the entire cost of the work
    of the replacement contractor, which included the warranty.         Therefore, Portage
    argues, the trial court charged it twice for the same warranty.
    {¶29} Judgments supported by some competent, credible evidence going to
    all the material elements of the case must not be reversed, as being against the
    manifest weight of the evidence. C .E. Morris Co. v. Foley Constr. Co., 
    54 Ohio St.2d 279
    , 
    376 N.E.2d 578
    , syllabus (1978). See, also, Gerijo, Inc. v. Fairfield, 
    70 Ohio St.3d 223
    , 226, 
    638 N.E.2d 533
     (1994).          Reviewing courts must oblige every
    reasonable presumption in favor of the lower court's judgment and finding of facts.
    Gerijo, 70 Ohio St.3d at 226 (citing Seasons Coal v. Cleveland, 
    10 Ohio St.3d 77
    ,
    
    461 N.E.2d 1273
     [1984]). In the event the evidence is susceptible to more than one
    interpretation, we must construe it consistently with the lower court's judgment. 
    Id.
     In
    addition, the weight to be given the evidence and the credibility of the witnesses are
    primarily for the trier of the facts. Kalain v. Smith, 
    25 Ohio St.3d 157
    , 162, 
    495 N.E.2d 572
     (1986). “A finding of an error of law is a legitimate ground for reversal,
    but a difference of opinion on credibility of witnesses and evidence is not.” Seasons
    Coal, 10 Ohio St.3d at 81.
    {¶30} The testimony as to the warranty was as follows.
    {¶31} Jeff Hein testified that per the Specifications, Hein was required to
    -8-
    provide ULSD with a 20-year warranty on the EIFS. (Tr. 63-67). He stated that
    because Portage’s caulking work on the EIFS was unacceptable, he could not obtain
    the warranty for Portage’s work. (Tr. 63-67).
    {¶32} Jeff further testified that because Hein was unable to provide the
    warranty to ULSD, ULSD refused to release retention money owed to Hein. (Tr.
    631). Jeff stated that Hein needed the retention funds to pay its subcontractors, so
    Hein agreed to pay ULSD $20,000 for them to release the retention money. (Tr.
    632). Jeff testified this was a direct result of its dispute with Portage. (Tr. 632-633).
    Jeff also testified that the offset Hein paid to Buckeye Caulking was $56,996. (Tr.
    157).
    {¶33} Hysell testified there are two types of warranties, special installer’s
    warranties that are provided by the installer and manufacturer’s warranties that are
    provided by the manufacturer of the product. (Tr. 178). He stated he could have
    provided a special installer’s warranty. (Tr. 178-179). Hysell also stated that Hein
    tried to obtain a warranty from another company, but was refused because Hein
    failed to pay Portage. (Tr. 192-193).
    {¶34} Jeremy Greenwood is an architect and project manager at M&G
    Architects and Engineers. M&G was the architect for the ULSD project. (Tr. 278).
    Greenwood testified that M&G puts 20-year manufacturer’s warranties on all of their
    projects. (Tr. 278). He testified that the manufacturer requires a pull test before it will
    issue a 20-year warranty and will not issue the warranty if the pull test fails. (Tr. 321-
    322). Greenwood stated that as the architect, if the manufacturer does not issue the
    warranty, he rejects the work. (Tr. 322). He testified that because he was informed
    by the manufacturer after the pull test that the manufacturer would not issue a
    warranty, his company rejected the work. (Tr. 327). Greenwood stated the two given
    reasons why the manufacturer would not issue the warranty were (1) the failed pull
    test and (2) the material used in the EIFS was urethane-based which only allows a
    five-year warranty. (Tr. 330-331).
    {¶35} The trial court found that ULSD withheld $20,000 from Hein due to the
    -9-
    absence of a warranty. The court passed this cost on to Portage. The court also
    found that Hein paid Buckeye (the company Hein hired to correct Portage’s work)
    $56,996 to do the caulking work. The court passed this cost on to Portage as well.
    The court arrived at the total amount owed by Hein to Portage for the value of its
    work as follows:
    $134,174.00 (amount Hein billed ULSD)
    - $20,000.00 (absence of warranty)
    - $19,800.00 (amount Hein already paid Portage)
    - $56,996.00 (amount Hein paid Buckeye to replace Portage’s caulking work)
    - $8,687.57 (amount Hein paid Portage’s supplier for materials)
    - $10,340.00 (amount Hein paid Buckeye’s supplier for materials)
    $18,350.43 owed by Hein to Portage
    {¶36} Hein admits in its brief that Buckeye provided the caulking warranty.
    (Appellee’s Brief p. 21). And the testimony was undisputed that Hein paid Buckeye
    $56,996 for its caulking work. (Tr. 157). Additionally, Jeff testified, and Hein admits,
    that because Portage was unable to get the required warranty for ULSD, Hein had to
    pay ULSD a $20,000 cash bond. (Tr. 631-632; Appellee’s Brief p. 21).
    {¶37} We can conclude from the evidence and the trial’s court’s calculations,
    the court charged Portage twice for the warranty it did not provide.         The court
    charged Portage $20,000 for the absence of the warranty. It then charged Portage
    the $56,996 Hein paid to Buckeye, which included providing the warranty.
    Additionally, the $20,000 was a cash bond to ULSD because, at the time, no
    warranty had been given. It is reasonable to presume that Hein is entitled to the
    return of that money now that Buckeye has provided the warranty to ULSD.
    Therefore, the evidence does not support the trial court’s inclusion of the $20,000
    figure in its calculations in arriving at the amount Hein owed Portage for the value of
    its work. Consequently, the award to Portage should be increased by this amount to
    $38,350.43.
    - 10 -
    {¶38} Accordingly, Portage’s second assignment of error has merit.
    {¶39} Portage’s third assignment of error states:
    THE TRIAL COURT ERRED AS A MATTER OF LAW BY
    FAILING TO PERMIT EVIDENCE ON, OR CONSIDERING AN
    AWARD OF, ATTORNEYS’ FEES TO PORTAGE ON PORTGAGE’S
    SUCCESSFUL CLAIM FOR HEIN’S VIOLATION OF THE OHIO
    PROMPT PAY ACT DECIDED, AT LEAST IN PART, BY SUMMARY
    JUDGMENT.
    {¶40} The trial court granted Portage partial summary judgment in the amount
    of $2,475 for money due from Hein. The court made no mention of attorney fees in
    its judgment. In its judgment entry following the trial, the court found that because a
    good faith dispute arose, it would not award any attorney fees.
    {¶41} In this assignment of error, Portage asserts that it was entitled to
    attorney fees on the $2,475 that the trial court awarded it on summary judgment. It
    contends that R.C. 4113.61(B)(1) mandates an award of attorney fees in such cases.
    Portage also argues that the trial court erred in rendering judgment in this case
    without taking evidence on the issue of attorney fees as it said that it would do so.
    {¶42} R.C. 4113.61 is Ohio’s Prompt Pay Act. Pursuant to the Prompt Pay
    Act, upon application by the subcontractor, the contractor shall pay the subcontractor
    within ten days after receipt of payment from the owner for the percentage of work
    completed by the subcontractor.         R.C. 4113.61(A)(1)(a).       The contractor may
    withhold amounts that may be needed to resolve disputed liens or claims involving
    the work performed by the subcontractor. R.C. 4113.16(A)(1).
    {¶43} R.C. 4113.61(B)(1) provides:
    (B)(1) If a contractor * * * has not made payment in compliance
    with division (A)(1), (2), (3), (4), or (5) of this section within thirty days
    after payment is due, a subcontractor * * * may file a civil action to
    - 11 -
    recover the amount due plus the interest provided in those divisions. If
    the court finds in the civil action that a contractor * * * has not made
    payment in compliance with those divisions, the court shall award the
    interest specified in those divisions, in addition to the amount due.
    Except as provided in division (B)(3) of this section, the court shall
    award the prevailing party reasonable attorney fees and court costs.
    {¶44} R.C. 4113.61(B)(3) goes on to provide that the court shall not award
    attorney fees under (B)(1) if it determines, after a hearing on the matter, that the
    payment of attorney fees would be inequitable.
    {¶45} In Portage’s summary judgment motion it asserted, in part, that it was
    undisputed that Hein owed it $2,475.05. This was part of Portage’s Prompt Pay
    claim. In Hein’s motion for summary judgment, Hein stated it tendered that amount
    to Portage.    The court found the conditional tendering was not tantamount to
    payment.
    {¶46} Pursuant to R.C. 4113.61(B), Portage was entitled to reasonable
    attorney fees in its recovery of the $2,475. The court would have the option of
    denying attorney fees if it found, after a hearing, that payment of attorney fees would
    be inequitable. But the court never held a hearing on the matter.
    {¶47} At the conclusion of the trial, Portage’s counsel asked the court how it
    planned on handling the testimony on attorney fees. (Tr. 854). The court replied:
    “We can do it another day by affidavit.” (Tr. 854). There does not appear to be any
    affidavits on the issue of attorney fees. The court’s comment at the end of the trial is
    the last mention of attorney fees.     This is likely because the court found in its
    judgment entry that because “a good faith dispute arose, no attorneys’ fees are
    ordered.”
    {¶48} But the court was obligated, pursuant to the statute, to hold a hearing
    on the issue of attorney fees because it awarded Portage $2,475 of undisputed fees
    under the Prompt Pay Act. Therefore, this matter will be remanded to the trial court
    to hold a hearing on the issue of attorney fees under the Prompt Pay Act.
    - 12 -
    {¶49} Accordingly, Portage’s third assignment of error has merit.
    {¶50} Portage’s fourth assignment of error states:
    THE TRIAL COURT ERRED AS A MATTER OF LAW BY
    FAILING TO ENTER A JUDGMENT ENTRY IN PROPER FORM WITH
    PROPER CONTENT.
    {¶51} Portage argues here that the trial court did not enter a judgment that
    resolved all of the parties’ claims. It states that the judgment entry fails to mention
    either its breach of contract or Prompt Pay Act claims and fails to mention pre- or
    post-judgment interest. It further contends even though the court awarded pre-
    judgment interest on the $2,475 awarded on summary judgment, it failed to award
    post-judgment interest on this amount as is required by the Prompt Pay Act. Finally,
    Portage takes issue with the fact that the court did not assign the payment of costs to
    Hein.
    {¶52} In its judgment entry, the trial court noted that Portage claimed
    damages against Hein under a breach of contract claim and under the Prompt Pay
    Act.    The court then found that Hein owed Portage $18,350.43 “as reasonable
    payment for value conferred by Portage’s work.” The court stated that the $2,475
    that it previously awarded to Portage “is included in the $18,350.43.” The $2,475 the
    court referred to was the award it made on summary judgment for Portage’s Prompt
    Pay Act claim. Thus, the remaining balance of Portage’s award, or $15,875.43, was
    the award on Portage’s breach of contract claim.
    {¶53} As to pre- and post-judgment interest, the court found that Portage was
    entitled to pre-judgment interest on the $2,475 it previously awarded on summary
    judgment. The court does not mention post-judgment interest nor does it mention the
    rate of interest.   The Prompt Pay Act provides that the contractor shall pay the
    subcontractor interest in the amount of 18 per cent per annum of the payment due,
    beginning on the eleventh day following the receipt of payment from the owner and
    - 13 -
    ending on the date of full payment. R.C. 4113.61(A)(1). The court should have
    included this statutorily-required interest on the $2,475 portion of the award.
    {¶54} The court makes no mention of costs. The court likely did not assign
    the payment of costs to Hein because of the good faith dispute that it found.
    {¶55} Accordingly, Portage’s fourth assignment of error has merit in part.
    {¶56} In sum the trial court did not err in considering extrinsic evidence of the
    parties’ agreement. It did err in determining that Portage owed Hein for a warranty
    that was not delivered. And the court erred in failing to hold a hearing on the issue of
    attorney fees. Finally, the court erred in failing to include the 18 percent statutorily-
    required interest on the Prompt Pay Act portion of the award of $2,475.
    {¶57} Therefore, for the reasons stated above, the trial court’s judgment is
    hereby reversed. The matter is remanded to the trial court so that it may enter a new
    judgment in the amount of $38,350.43 as the amount Hein owes to Portage for the
    work performed. Additionally, the trial court is to hold a hearing on the issue of
    attorney fees.   Finally, the court is to include the 18 percent statutorily-required
    interest on the Prompt Pay Act award in its new judgment entry.
    Vukovich, J.,
    Waite, J.,
    APPROVED:
    ______________________________
    Gene Donofrio, Judge
    

Document Info

Docket Number: 13 BE 5

Judges: Donofrio

Filed Date: 6/20/2014

Precedential Status: Precedential

Modified Date: 10/30/2014