Hostetler v. Cent. Farm & Garden, Inc. , 2012 Ohio 507 ( 2012 )


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  • [Cite as Hostetler v. Cent. Farm and Garden, Inc., 
    2012-Ohio-507
    .]
    COURT OF APPEALS
    TUSCARAWAS COUNTY, OHIO
    FIFTH APPELLATE DISTRICT
    WILLIAM HOSTETLER                                          JUDGES:
    Hon. W. Scott Gwin, P. J.
    Plaintiff-Appellant/Cross-Appellee                      Hon. John W. Wise, J.
    Hon. Julie A. Edwards, J.
    -vs-
    Case No. 2010 AP 12 0046
    CENTRAL FARM AND GARDEN, INC.
    Defendant-Appellee/Cross-Appellant                      OPINION
    CHARACTER OF PROCEEDING:                               Civil Appeal from the Court of Common
    Pleas, Case No. 2009 CV 07 0629
    JUDGMENT:                                              Affirmed
    DATE OF JUDGMENT ENTRY:                                February 9, 2012
    APPEARANCES:
    For Plaintiff-Appellant                                For Defendant-Appellee
    DAVID P. BERTSCH                                       DAVID J. WIGHAM
    BUCKINGHAM, DOOLITTLE                                  ANDREW P. LYCANS
    & BURROUGHS                                            CRITCHFIELD, CRITCHFIELD &
    3800 Embasy Parkway                                    JOHNSON
    Suite 300                                              225 North Market Street, P. O. Box 599
    Akron, Ohio 44333                                      Wooster, Ohio 44691
    Tuscarawas County, Case No. 2010 AP 12 0046                                                2
    Wise, J.
    {¶1}   Appellant/Cross-Appellee William Hostetler appeals the decision of the
    Court of Common Pleas, Tuscarawas County, which denied his motion for directed
    verdict and subsequently denied his motion for judgment notwithstanding the verdict
    (“JNOV”) or a new trial following a jury trial in a suit against Appellee/Cross-Appellant
    Central Farm and Garden, Inc., claiming breach of a business agreement. The relevant
    facts leading to this appeal are as follows.
    {¶2}   Plaintiff-Appellant William Hostetler is a farmer who formerly operated an
    additional business known as Hostetler Farm Supply, a d/b/a started by his late father.
    Defendant-Appellee Central Farm and Garden, Inc. is a wholesale distributor of farm
    and garden supplies, including twine and fodder preservation products. Appellant
    Hostetler’s business competed in part with Appellee Central Farm in selling twine to
    dealers and other commercial customers. Appellant Hostetler's business also sold
    twine, in lesser amounts, to some of his neighbors and other retail customers.
    Appellant at one time had an account with Appellee Central Farm to purchase twine at
    dealer prices for resale to said neighbors and other retail customers.
    {¶3}   In the summer of 2004, appellee asked appellant, who generally was able
    to sell his product at a lower price, whether he would be willing to sell appellee some
    twine after appellee’s supply ran low. Appellant agreed to sell the twine to appellee at
    his cost.
    {¶4}   In September 2004, appellee’s then co-owners, Joe Franks and Dick
    Olson, approached appellant about purchasing his business.1              Accordingly, in
    1
    Olson later became the sole owner of Appellee Central Farm.
    Tuscarawas County, Case No. 2010 AP 12 0046                                              3
    December 2004, the parties executed a purchase agreement prepared by appellee’s
    legal counsel. In the agreement, appellee agreed to acquire appellant’s “customer list
    and price list” for a price of $275,000. This amount was to be paid in installments of
    $10,000 on December 31, 2004, $17,500 on September 1, 2005, and nine additional
    payments of $27,500 payable annually on September 1, 2006 through September 1,
    2014. See Articles I and II of the agreement.
    {¶5}   Article V of the agreement provided for appellee to employ appellant as a
    commissioned sales representative on an annual renewable basis. The agreement
    does not clearly tie appellee’s installment payment obligations to appellant’s continued
    service as a sales representative. However, Section 5.1 states that “[d]uring the term of
    employment, [appellant] shall not engage in any activity which conflicts or interferes
    with the performance of duties hereunder or usurps the business interests, existing or
    potential, of [appellee].” Section 5.3(c) states that appellee would set the price at which
    appellant was to sell appellee’s products, and that appellant could purchase twine at
    dealer cost.
    {¶6}   Section 7.3 of the agreement contained a noncompetition provision which
    prohibited appellant from competing against appellee for the following five years (i.e.,
    until the end of 2009), as well as a provision entitling appellee to injunctive relief upon
    violation. Section 7.4 provided that appellee could set off its claimed damages under
    the noncompetition provision against the outstanding balance owed on the purchase
    price by giving notice to appellant, specifying in reasonable detail the basis for the set-
    off and depositing the amount of the claimed set-off in an escrow account at its law
    firm.
    Tuscarawas County, Case No. 2010 AP 12 0046                                           4
    {¶7}   After the agreement was executed, appellant delivered a list of the names
    and addresses for his commercial twine accounts to appellee, although it is presently
    undisputed that any copies thereof have been lost or destroyed by both parties.
    Appellant also provided appellee the names of his twine suppliers. Appellee in turn
    paid appellant the first $17,500 installment under the purchase agreement.
    {¶8}   Appellant continued to purchase twine from appellee at dealer cost under
    Section 5.3(c) of the agreement, which he resold to some of his neighbors and other
    retail customers. Appellant maintained at trial that he purchased approximately
    $175,000 of twine from Central Farm for resale to his neighbors and retail customers at
    a 5% profit for the three years from 2005 through 2007. See Tr. at 166-167.
    {¶9}   In July 2005, Appellee Central Farm made appellant a salaried employee
    at a rate of $40,000 per year plus the commission payments under the 2004
    agreement, plus benefits.     This additional agreement was for a term of one year
    automatically renewable in July of each successive year unless either party gave
    notice of discontinuation at least sixty days prior to the annual anniversary date.
    {¶10} Appellant received the $17,500 purchase price installment payment in the
    autumn of 2005 and the $27,500 purchase price installment payment in the autumn of
    2006.
    {¶11} In September 2007, a dispute arose between Central Farm's co-owners
    Franks and Olson over a bank audit and inventory issues. Olson decided to remove
    Franks as president and appoint Corey Sheely, the company’s marketing manager, as
    the new president. Sheely thereupon conducted a review of Central Farm's finances
    and the 2004 purchase agreement. Despite the terms of the additional 2005
    Tuscarawas County, Case No. 2010 AP 12 0046                                            5
    agreement, on October 24, 2007, Sheely met with appellant and told him he was being
    taken off salary and returned to his original position as a commissioned salesman
    effective November 1, 2007. Sheely also told appellant in the meeting that Appellee
    Central Farm was discontinuing twine sales until at least the following spring. This was
    problematic for appellant, because most of his twine sales for appellee were made in
    the autumn and winter. Sheely allegedly did not give appellant any sales territory of his
    own when he put him back on commission.
    {¶12} In the late autumn of 2007, Sheely told his sales staff that appellant would
    no longer be working for Central Farm. Sheely also instructed the sales representatives
    to see if appellant had been contacting any Central Farm customers.
    {¶13} Appellee Central Farm did pay Hostetler the September 1, 2007
    installment of $27,500 at the end of October. However, appellee’s vice-president,
    David Guster, told appellant not to attend any further sales meetings since there was
    no twine to sell. Appellant subsequently told Guster he had taken a job as a long-
    distance truck driver and asked Guster to notify him upon appellee’s resumption of
    twine sales.
    {¶14} In December 2007, Appellee Central Farm's former president Franks,
    along with his wife, went into the twine business, operating under the name JBF.
    Sheely suspected appellant had gone into this business with Franks and personally
    began asking some of appellee’s customers if appellant was selling them twine.
    {¶15} Appellee Central Farm ultimately resumed twine sales the following
    spring, but Guster never contacted appellant to let him know or invite him to any
    subsequent sales meetings.
    Tuscarawas County, Case No. 2010 AP 12 0046                                             6
    {¶16} Appellant has maintained that he never went into the twine business with
    Franks, never provided any services to Franks, and never solicited any customer on
    behalf of Franks or JBF.
    {¶17} Appellant has also maintained that after he began work as a long-distance
    trucker in late October 2007, he also discontinued selling twine to his neighbors and
    other retail customers. In February 2008, Hostetler received his last monthly account
    statement from Central Farm, which showed he was still owed $16,739.23 in credits. In
    April 2008, Hostetler sent a letter to Central Farm requesting that it close his account
    and send him a check for the $16,739.23 account balance. Appellant’s attorney sent a
    follow-up letter in May 2008 again requesting that appellee send the outstanding
    balance of credits claimed on the account. Appellee never responded to either letter.
    {¶18} Appellee Central Farm then failed to make the $27,500 payment on the
    purchase price that was due and payable on September 1, 2008. Appellant asserts that
    appellee never gave the requisite notice to him under Section 7.4 of the agreement that
    it was withholding this payment as a set-off for claimed damages attributable to any
    alleged breach of the agreement by appellant.
    {¶19} On July 9, 2009, Appellant Hostetler filed a civil complaint for breach of
    the purchase agreement, breach of contract, breach of account, and a demand for
    account stated. On September 8, 2009, appellee filed an answer and counterclaim.
    {¶20} The matter proceeded to a jury trial for nearly four days in late October
    2010. Appellant moved for a directed verdict at the close of evidence on appellee’s
    counterclaim, asserting there was no competent evidence that appellant had
    Tuscarawas County, Case No. 2010 AP 12 0046                                            7
    committed any material breach of the agreement and no evidence that appellee had
    sustained any damages. The motion for directed verdict was denied.
    {¶21} Appellant submitted a proposed set of interrogatories asking the jury to
    make a finding as to whether and in what manner appellant had breached the
    agreement and the amount of any resulting damages. The trial court declined to submit
    the proposed jury interrogatories. See Tr. at 491.
    {¶22} After hearing the evidence, the jury returned a verdict awarding appellant
    $25,240 on his account claim, which was subsequently reduced by way of a stipulated
    remittitur to the $16,739.23 outstanding account balance. The jury also returned a
    verdict in favor of appellant on appellee’s counterclaim for breach of agreement, but did
    not render a verdict for appellant on his claim for the $192,500 remaining balance
    appellant claimed was owed on the purchase price. The trial court thereafter issued a
    final entry on the verdicts which included a declaratory judgment relieving appellee
    from any further payment obligation under the agreement.
    {¶23} The trial court subsequently denied appellant’s motion for judgment
    notwithstanding the verdict (“JNOV”) or a new trial.
    {¶24} On December 10, 2010, appellant filed a notice of appeal. He herein
    raises the following four Assignments of Error:
    {¶25} “I.   THE TRIAL COURT COMMITTED PREJUDICIAL ERROR IN
    ENTERING A DECLARATORY JUDGMENT THAT DEFENDANT BE RELIEVED
    FROM HAVING TO PAY THE $192,500 BALANCE OWED FOR THE PURCHASE OF
    PLAINTIFF'S WHOLESALE BUSINESS AND IN DENYING PLAINTIFF'S MOTIONS
    FOR DIRECTED VERDICT AND JUDGMENT NOTWITHSTANDING THE VERDICT
    Tuscarawas County, Case No. 2010 AP 12 0046                                         8
    GIVEN THE ABSENCE OF ANY COMPETENT EVIDENCE THAT PLAINTIFF
    BREACHED THE AGREEMENT, THE ABSENCE OF ANY COMPETENT EVIDENCE
    THAT DEFENDANT SUSTAINED ANY DAMAGES AS A RESULT OF ANY ALLEGED
    BREACH AND THE JURY VERDICT IN FAVOR OF PLAINTIFF ON DEFENDANT'S
    CLAIM THAT PLAINTIFF BREACHED THE AGREEMENT.
    {¶26} “II.    THE TRIAL COURT COMMITTED PREJUDICIAL ERROR IN
    REPEATEDLY         ALLOWING     DEFENDANT        OVER     PLAINTIFF'S      ONGOING
    OBJECTIONS TO PRESENT INCOMPETENT HEARSAY EVIDENCE IN SUPPORT
    OF ITS CLAIM THAT PLAINTIFF VIOLATED THE NON-COMPETITION PROVISION
    OF THE PURCHASE AGREEMENT.
    {¶27} “III.   THE TRIAL COURT COMMITTED PREJUDICIAL ERROR IN
    REFUSING TO SUBMIT PLAINTIFF'S PROPOSED JURY INTERROGATORIES ON
    WHETHER AND IN WHAT RESPECT PLAINTIFF BREACHED THE AGREEMENT
    AND THE DAMAGES ATTRIBUTABLE TO ANY SUCH BREACH.
    {¶28} “IV.    THE TRIAL COURT COMMITTED PREJUDICIAL ERROR IN
    DENYING PLAINTIFF'S MOTION FOR NEW TRIAL ON ITS [SIC] CLAIM FOR THE
    REMAINING BALANCE DEFENDANT OWES ON THE PRICE FOR THE PURCHASE
    OF PLAINTIFF'S ASSETS BASED UPON THE MANIFEST WEIGHT OF THE
    EVIDENCE.”
    {¶29} Appellee Central Farm has filed a cross-appeal herein. It herein raises the
    following two Assignments of Error on cross-appeal:
    Tuscarawas County, Case No. 2010 AP 12 0046                                               9
    {¶30} “I. THE JURY’S VERDICT IN FAVOR OF HOSTETLER AND AGAINST
    CENTRAL FARM ON THE ACCOUNT CAUSE OF ACTION WAS AGAINST THE
    MANIFEST WEIGHT OF THE EVIDENCE.
    {¶31} “II. THE JURY’S VERDICT IN FAVOR OF HOSTETLER AND AGAINST
    CENTRAL FARM ON THE ACCOUNT STATED CAUSE OF ACTION WAS AGAINST
    THE MANIFEST WEIGHT OF THE EVIDENCE.”
    Hostetler Appeal
    I.
    {¶32} In his First Assignment of Error, appellant contends the trial court erred in
    relieving appellee, via declaratory judgment after the jury’s verdict, of responsibility for
    paying the remaining $192,500 under the 2004 purchase agreement and in his denying
    motion for JNOV and/or for a directed verdict. We disagree.
    {¶33} As an appellate court, we are not fact finders. We neither weigh the
    evidence nor judge the credibility of witnesses. Our role is to determine whether there
    is relevant, competent and credible evidence upon which the jurors could base their
    judgment. Accordingly, judgments supported by some competent, credible evidence
    going to all the essential elements of the case will not be reversed as being against the
    manifest weight of the evidence. The triers of fact have the duty to decide what weight
    is to be given to the evidence and to assess the credibility of the witnesses. See Cox v.
    Storsin, Stark App.No. 2003CA00263, 
    2004-Ohio-3714
    , ¶ 11 (additional citations
    omitted).
    {¶34} In regard to motions for judgment notwithstanding the verdict (JNOV),
    Civ.R. 50(B) states as follows:
    Tuscarawas County, Case No. 2010 AP 12 0046                                            10
    {¶35} “Whether or not a motion to direct a verdict has been made or overruled
    and not later than fourteen days after entry of judgment, a party may move to have the
    verdict and any judgment entered thereon set aside and to have judgment entered in
    accordance with his motion; or if a verdict was not returned such party, within fourteen
    days after the jury has been discharged, may move for judgment in accordance with
    his motion. A motion for a new trial may be joined with this motion, or a new trial may
    be prayed for in the alternative. * * *.”
    {¶36} The standard for granting a motion for judgment notwithstanding the
    verdict or in the alternative for a new trial pursuant to Civ.R. 50(B) is the same as that
    for granting a motion for a directed verdict pursuant to Civ.R. 50(A). Texler v. D.O.
    Summers Cleaners & Shirt Laundry Co., 
    81 Ohio St.3d 677
    , 679, 
    693 N.E.2d 271
    ,
    1998–Ohio–602. Thus, JNOV is proper if upon viewing the evidence in a light most
    favorable to the nonmoving party and presuming any doubt to favor the nonmoving
    party, reasonable minds could come to but one conclusion, that being in favor of the
    moving party. Wagoner v. Obert, 
    180 Ohio App.3d 387
    , 401–402, 
    905 N.E.2d 694
    ,
    2008–Ohio–7041, citing Goodyear Tire & Rubber Co. v. Aetna Cas. & Sur. Co., 
    95 Ohio St.3d 512
    , 2002–Ohio–2842, ¶ 3. “Neither the weight of the evidence nor the
    credibility of the witnesses is for the [trial] court's determination in ruling upon [a
    JNOV].” Osler v. Lorain (1986), 
    28 Ohio St.3d 345
    , 347, 
    504 N.E.2d 19
    , quoting Posin
    v. A.B.C. Motor Court Hotel (1976), 
    45 Ohio St.2d 271
    , 275, 
    74 O.O.2d 427
    , 
    344 N.E.2d 334
    .
    {¶37} The decision to grant or deny a Civ.R. 50(B) motion for JNOV is reviewed
    de novo by an appellate court. Wagoner, supra, at 401, citing Osler, supra, at 347.
    Tuscarawas County, Case No. 2010 AP 12 0046                                            11
    {¶38} In regard to appellant’s argument regarding a directed verdict, our
    standard of review for the grant or denial of a motion for a directed verdict is whether
    there is probative evidence which, if believed, would permit reasonable minds to come
    to different conclusions as to the essential elements of the case, construing the
    evidence most strongly in favor of the non-movant. Brown v. Guarantee Title &
    Trust/Arta (Aug. 28, 1996), Fairfield App.No. 94–41, citing Sanek v. Duracote Corp.
    (1989), 
    43 Ohio St.3d 169
    , 172, 
    539 N.E.2d 1114
    . A motion for a directed verdict
    therefore presents a question of law, and an appellate court conducts a de novo review
    of the lower court's judgment. Howell v. Dayton Power & Light Co. (1995), 
    102 Ohio App.3d 6
    , 13, 
    656 N.E.2d 957
    , 961.
    {¶39} In the case sub judice, appellant essentially argues that the trial court
    should have set aside the jury’s decision to relieve appellee of any further obligation to
    pay the remaining $192,500.00 balance on the original $275,000.00 purchase price of
    Hostetler Farm Supply pursuant to the 2004 purchase agreement, which he claims
    allowed appellee to enjoy an improper windfall. Appellant maintains that the evidence
    does not support the conclusion that he materially breached his end of said agreement,
    such that appellee would be legally entitled to relief from further payment.
    {¶40} We have recognized that the mere breach of a term of a contract
    committed by a party who has substantially performed its obligations under the contract
    does not relieve the other party from performance. See Oakes v. P.J. Bordner & Co.
    (April 18, 1994), Stark App.No. CA 9488, 
    1994 WL 202397
    , citing Software
    Clearinghouse, Inc. v. Intrak, Inc. (1990), 
    66 Ohio App.3d 163
     and Kersh v.
    Montgomery Developmental Ctr. (1987), 
    35 Ohio App.3d 61
    , 62. Thus, “[a] party is
    Tuscarawas County, Case No. 2010 AP 12 0046                                              12
    relieved of performing its obligations only if the breach of contract committed by
    another is a ‘material’ breach.” Id, citing Software Clearinghouse, supra. Once there
    has been a material breach of the contract, the nonbreaching party is not required to
    fulfill the remaining terms of the contract, and the breaching party is not entitled to
    collect damages from the nonbreaching party. See Sites v. Moore (1992), 
    79 Ohio App.3d 694
    , 701.
    {¶41} In Kersh, supra, at 62-63, the court relied on the Restatement of the Law
    2d, Contracts (1981) 237, Section 241, which sets forth five factors to be used to
    determine the materiality of a breach, including the extent to which the injured party will
    be deprived of the expected benefit, the extent to which the injured party can be
    adequately compensated for the lost benefit, the extent to which the breaching party
    will suffer a forfeiture, the likelihood that the breaching party will cure its breach under
    the circumstances, and the extent to which the breaching party has acted with good
    faith and dealt fairly.
    Appellant’s Covenant Not to Compete
    {¶42} In the case sub judice, the 2004 agreement provided that Appellant
    Hostetler would not "[p]romote or assist, financially or otherwise, any person ... or
    corporation engaged in any business which directly or indirectly competes with the
    farm and garden supply business carried on by [Appellee Central Farm]." Furthermore,
    Appellant Hostetler agreed not to "enter into or engage in any business, including but
    not limited to operating a packaging supplies distribution business which directly or
    indirectly competes with [Appellee Central Farm]." One of appellee’s main defensive
    arguments throughout the trial was that Appellant Hostetler had breached said
    Tuscarawas County, Case No. 2010 AP 12 0046                                           13
    agreement by soliciting twine sales from Central Farm's own customers, acting on
    behalf of Joe Franks, who had been removed from his position as appellee’s president
    and had started a competitive firm. Appellant charges that this argument was
    unsupported by the witnesses and evidentiary documentation, and, as further analyzed
    in our discussion of the Second Assignment of Error, was allegedly based on improper
    hearsay.
    {¶43} However, the record reveals that Franks, who admittedly had become a
    close friend of appellant, testified that when he was thinking of starting up a competing
    twine business, he had sometimes “bounced ideas” off appellant and asked him what
    products would interest twine consumers. See Tr. at 288.          Phone records were
    produced at trial demonstrating that after the new business, JBF, Inc. was commenced,
    Franks spent more than 10,000 minutes conversing on the phone with appellant.
    Although they testified that the majority of this time was spent talking about personal
    and religious matters, their testimony indicates that Franks was using appellant and his
    experience as a resource to answer questions about twine and solve his customers'
    problems. These are the types of services that Franks had earlier determined were
    valuable to Central Farm and warranted a salary. See, e.g., Tr. at 266. These phone
    records thus provided circumstantial evidence that appellant had done more than just
    indirectly assist Franks and JBF.
    {¶44} Appellant nonetheless adds that even if we conclude Appellee Central
    Farm had presented competent evidence to support its allegation that appellant had
    breached the Purchase Agreement, appellee failed to present evidence of monetary
    damages resulting from the conversations with Franks. However, as appellee aptly
    Tuscarawas County, Case No. 2010 AP 12 0046                                           14
    responds, the jury could properly conclude that the harm to Central Farm was the
    same whether appellant was doing it for friendship or for financial gain. Appellant
    assisted his good friend Franks in growing JBF, which now has most of appellee’s
    former customers and 75% of the twine market formerly served by Central Farm, after
    just three years of operation. See Tr. at 325.
    {¶45} Furthermore, although appellant has challenged it on hearsay grounds,
    additional testimony was adduced that appellant continued to carry on phone
    conversations with representatives of his former accounts at Central Farm. Many of
    these phone calls with these former customers were then followed up with calls to
    Franks. While appellant asserted that the customer conversations were informal and
    non-business related, we find it was within the province of the jury to determine that
    such explanation was implausible.
    Appellant’s Provision of Customer and Price Lists
    {¶46} It is undisputed that appellant continued to operate Hostetler Farm Supply
    for three years after purportedly selling the assets (i.e., his customer and price lists)
    from Hostetler Farm Supply to Appellee Central Farm. The jurors could have
    concluded that appellant, by continuing to maintain Hostetler Farm Supply and selling
    to his own loyal customers, assured that those customers would continue to identify
    him personally as their source of twine, and would not begin to buy twine from Central
    Farm's network of wholesale dealers. Furthermore, while appellant was serving as the
    sales representative to Hostetler Farm Supply, he was selling Central Farm's twine to
    his d/b/a at a loss, although some of this may have resulted from appellant’s sale of
    Tuscarawas County, Case No. 2010 AP 12 0046                                            15
    damaged product for Central Farm. Again, it was the jury's prerogative to weigh the
    import of such evidence.
    {¶47} Appellant seeks to justify his practice of maintaining his own retail
    customers by reading the purchase agreement as pertaining to selling his “commercial”
    customer list only. He maintains Central Farm instructed him to concentrate exclusively
    on sales to its commercial twine accounts. He claims that Central Farm benefited in
    selling twine at dealer prices to appellant for resale to his neighbors and other “retail”
    customers who could not purchase directly from Central Farm at wholesale prices and
    would not likely purchase twine from Central Farm's other dealers. Appellant also
    asserts that Franks and Olson originally had no interest in having Central Farm acquire
    the portion of the business involving Hostetler's sales to neighbors and other “retail”
    customers, on the basis that Central Farm was chiefly a wholesale distributor. While
    certainly appellant was allowed to purchase twine from appellee at dealer cost under
    Section 5.3(c) of the agreement, we find the jury could have properly determined that
    this retention of personal customers by appellant was a material breach.
    {¶48} Ultimately, the evidence is consistent that appellant never actually
    provided Central Farm with either of the two documents that it was entitled to under the
    Agreement. Appellant admittedly never provided a price list, and he also decided not to
    provide a complete and accurate customer list as required. Instead, he provided only
    the names of his wholesale or commercial customers, despite the language of the
    agreement, simply determining on his own that Central Farm did not really want or
    need the complete list.
    Tuscarawas County, Case No. 2010 AP 12 0046                                         16
    {¶49} Thus, appellant fails to demonstrate reversal would be warranted as to the
    jury’s conclusion that the breaches to the agreement were material. See Kersh, supra.
    As appellee aptly responds, the evidence indicates that Central Farm was deprived of
    the expected benefit of the contract. Over the course of three years, he sold $175,000
    worth of wrapping products to his own customers for his own profit, after buying the
    twine from Central Farm below its out-of-pocket cost. Central Farm was likely unable to
    retain many of appellant’s customers because of appellant’s incomplete lists and his
    assistance to competitor Franks and JBF, Inc. Finally, the jury could have properly
    determined that appellant, despite his contentions to the contrary, will not suffer
    forfeiture. Appellant testified he merely faxed the customer list to Central Farm,
    although he later lost or misplaced the original. Tr. at 159. The jurors could have
    determined that appellant kept his retail customers, and assisted a competing company
    going after his wholesale customers. The jurors could have further determined that
    appellant cannot now cure his breach, and that he has failed to deal with Central Farm
    in good faith.
    Appellant’s Claim of Rescission by Appellee
    {¶50} Appellant finally advances the theory that appellee’s counterclaim in the
    suit below was “essentially” a claim for rescission.     He proceeds to argue that
    rescission is unwarranted as appellee has suffered no damages and has defaulted on
    the remainder of the purchase price. In support, he cites Simes v. Beaver Valley
    Resort, Clark App.No. CA 2925, 
    1992 WL 274656
    ; Holt v. Ohio Machinery, Franklin
    App.No. 06AP-911, 
    2007-Ohio-5557
    .
    Tuscarawas County, Case No. 2010 AP 12 0046                                          17
    {¶51} It is well-established that “[w]here there has been a breach of a material
    and vital provision of a contract by one party, the other party thereto may either treat
    the contract as terminated and rescind it and pursue the remedy that such rescission
    entitles him to, or he may sue for damages for a breach of the contract.” See Wilson v.
    Kreusch (1996), 
    111 Ohio App.3d 47
    , 56, 
    675 N.E.2d 571
    , citing 18 Ohio
    Jurisprudence 3d (1980) 230, Contracts, Section 309. Furthermore, the remedy of
    restitution may be appropriate, even though a case is not specifically pleaded in
    rescission, when the evidence is uncontestable that rescission was intended and
    actually did occur. See Cincinnati Bible Seminary v. Griffiths (Oct. 10, 1984), Hamilton
    App.No. C-830867, citing See Purvis v. Davish (June 21, 1986), Hamilton App.No. CA
    75-07-0058.
    {¶52} Thus, appellant appears to be initially correct that rescission may be
    determined even if not specifically pled. Nonetheless, upon review, we do not conclude
    that appellee was seeking rescission as part of its counterclaim. Indeed, appellee
    sought and obtained relief from further payments to appellant under the purchase
    agreement, and it will not get back the $82,500 it paid to appellant under the
    agreement. As appellee aptly notes, it is proper for a jury, where counterclaims have
    been presented, to determine that neither side has met its respective burden. See
    Lazzaro v. Picardini, (January 24, 1992), Lake App.Nos. 91-L-023, 91-L-024.
    {¶53} We thus find no reversible error on the issue of claimed rescission, as
    urged by appellant.
    Tuscarawas County, Case No. 2010 AP 12 0046                                            18
    Conclusion
    {¶54} Based on the evidence presented of appellant’s communication with
    Franks after the formation of JBF, appellant’s communications with other buyers
    despite the covenant not to compete, and his failure to provide the full customer list to
    appellee, we hold the trial court’s denial of appellant’s motions for JNOV, new trial, and
    directed verdict did not constitute reversible error or an abuse of discretion.
    {¶55} Appellant's First Assignment of Error is overruled.
    II.
    {¶56} In his Second Assignment of Error, appellant contends the trial court erred
    in permitting appellee’s current president, Corey Sheely, to testify as to information
    about appellant’s customers, claiming impermissible hearsay. We disagree.
    {¶57} As a general rule, all relevant evidence is admissible. Evid.R. 402.
    However, “[h]earsay is not admissible except as otherwise provided by the Constitution
    of the United States, by the Constitution of the State of Ohio, by statute enacted by the
    General Assembly not in conflict with a rule of the Supreme Court of Ohio, by these
    rules, or by other rules prescribed by the Supreme Court of Ohio.” Evid.R. 802.
    Hearsay is “a statement, other than one made by the declarant while testifying at the
    trial or hearing, offered in evidence to prove the truth of the matter asserted.” Evid.R.
    801(C).
    {¶58} In the case sub judice, appellee’s counsel questioned Sheely about, inter
    alia, communications he had conducted with two customers, Gerber Feed and United
    Rope (via owner Gary Zwack). The pertinent portions of Sheely’s testimony are as
    follows:
    Tuscarawas County, Case No. 2010 AP 12 0046                                           19
    {¶59} “Q. Okay, but what about other examples? Tell me about the things you
    did to investigate whether [Appellant Hostetler] was living up to these obligations or
    complying with this contract?
    {¶60} “Well I decided that, again with everything else that was going on within
    the company, I decided that I was going to get out and try to investigate to find out for
    myself, which you know, we're a pretty small company, and so I, I hooked up with the
    sales, the salesmen that sells general merchandise to, to customers in certain areas
    and I went out with them, and in particular a customer down in Baltic, Ohio, by
    accompanying the sales rep into that facility just to kind of see what I could find out
    about what was going on.
    {¶61} “Q. Okay, what was the name of that customer?
    {¶62} “Gerber Feed.
    {¶63} “Q. And when did this occur?
    {¶64} “Oh, this was late 2008, winter of 2008, might have been first of the year.
    {¶65} “Q. Okay, and what did you do once you got there?
    {¶66} “Well I just went in and, and, there was a young lady, who was Launa,
    behind the desk and --
    {¶67} “THE COURT: What?
    {¶68} “[APPELLANT’S TRIAL COUNSEL] MR. BERTSCH: Objection.
    {¶69} “THE COURT: Are you objecting to the answer? I'm --
    {¶70} “MR. BERTSCH: I, yes, your Honor, because I –
    {¶71} “THE COURT: -- just trying to figure out what you were --
    Tuscarawas County, Case No. 2010 AP 12 0046                                           20
    {¶72} “MR. BERTSCH: Yes, your Honor, I mean I think to the extent that he's
    going to start recounting conversations with a customers, that's hearsay so the
    question, I didn't object to the question in general, but I believe the answer, I don't
    know if it's already been cautioned or not, but I'm just doing it on, on a preventative
    basis.
    {¶73} “[APPELLEE’S TRIAL COUNSEL] MR. PETTORINI: So this is a
    preventative objection? I, I’m not sure I follow the – the question was what did he do
    when he got to the customer’s place of business.
    {¶74} “THE COURT: Okay, all right. I'm - the question is not objectionable, so
    you need to sit down.
    {¶75} “* * *
    {¶76} “Q. Well let me, -- I, I know you lost your train of thought, Corey. First
    off, were they still selling twine?
    {¶77} “Yes.
    {¶78} “Q. And did you ask about twine sales?
    {¶79} “Yes.
    {¶80} “MR. BERTSCH: Objection, objection, your Honor.
    {¶81} “THE COURT: Did he ask about twine sales, is overruled. You may
    answer.
    {¶82} “Yes.
    {¶83} “Q. And did you specifically ask about Bill Hostetler selling twine?
    {¶84} “Yes.
    {¶85} “Q. What'd you find out?
    Tuscarawas County, Case No. 2010 AP 12 0046                                         21
    {¶86} “MR. BERTSCH: Objection.
    {¶87} “Where, you know --
    {¶88} “THE COURT: Well just a minute, Mr. Sheely. Let's just have a sidebar
    {¶89} “(Whereupon, the following was held at sidebar:)
    {¶90} “THE COURT: The question is what did you find out.
    {¶91} “MR. BERTSCH: I'm objecting on hearsay. Basis, your Honor, this, this
    case has been pending for a year and a half, you know, they could have brought any of
    these customers in, instead of trying to get in the back door by hearsay statements as
    to what was said to Mr. Sheely by some customer. He used it for the truth of the matter
    asserted that Mr. Hostetler was selling to that customer and that's the whole point of
    this, and if they're going to have that evidence come in, it behooves them to have the
    actual customer come in and say yes, Mr. Hostetler sold to them.
    {¶92} “THE COURT: Do you know the answer?
    {¶93} “MR. PETTORINI: Do I know the answer?
    {¶94} “THE COURT: To the question you just asked.
    {¶95} “MR. PETTORINI: What he found? He found out that Bill Hostetler was
    selling to them.
    {¶96} “THE COURT: Okay.
    {¶97} “MR. PETTORINI: That's the conclusion he, he reached. He's not going to
    make any statements --
    {¶98} “THE COURT: Relay any conversation.
    {¶99} “MR. PETTORINI: These questions are carefully crafted to --
    {¶100} “THE COURT: Avoid hearsay.
    Tuscarawas County, Case No. 2010 AP 12 0046                                             22
    {¶101} “MR. PETTORINI: -- avoid hearsay.
    {¶102} “MR. BERTSCH: Your Honor, at this --
    {¶103} “MR. PETTORINI: And what he finds out in his investigation is relevant,
    and he's not going to say what someone else told him. He's going to say what, based
    on this investigation, based on going to his customers, what he concluded, and that is
    perfectly acceptable testimony and does not run afoul of the hearsay.
    {¶104} “THE COURT: Thank you.
    {¶105} “MR. BERTSCH: Your Honor, basically what he's going to testify, if he
    says I concluded he was selling this to Hostetler, he has no information to conclude
    that other than the hearsay statement of a customer telling that to him. So to the extent
    that his opinion testimony, his conclusion is based upon hearsay statements by a third
    party, what they're essentially trying to do is back door in the same stuff that they can't
    do by having him say what did he tell you? Okay, don't tell us what he told you, but tell
    us what you concluded after your discussion with that customer.
    {¶106} “THE COURT: Okay, and I think that's a proper question. So I'm going to
    overrule it.
    {¶107} “(Whereupon, the following was held in open court:)
    {¶108} “THE COURT: Okay, Mr. Sheely, the question is what did you conclude,
    and again, would just caution you not to relay specific conversations you had with
    others. Okay, so the pending question is what did you conclude from that:
    {¶109} “Well yeah, because I really didn't get an answer, so there was no
    conversation other than I concluded that there was obviously a relationship there that
    didn't, that they didn't want to breach.
    Tuscarawas County, Case No. 2010 AP 12 0046                                          23
    {¶110} “Q. A relationship with Mr. Hostetler?
    {¶111} “MR. BERTSCH: Move to strike, your Honor.
    {¶112} “THE COURT: Overruled. Go ahead.
    {¶113} “Yes.
    {¶114} “* * *
    {¶115} “Q. After this visit was there any doubt in your mind that Mr. Hostetler was
    out there competing?
    {¶116} “MR. BERTSCH: Objection to the form of the question.
    {¶117} “THE COURT: Overruled. He may answer.
    {¶118} “Ask me again please.
    {¶119} “Q. Sure. After this visit to Gerber Feed was there any doubt in your mind
    that Mr. Hostetler was competing?
    {¶120} “No.” Tr. at 385-390.
    {¶121} “****
    {¶122} “Q. And you would receive communications or, well communications from
    them [buyers] via e-mail?
    {¶123} “Yes.
    {¶124} “Q. And did you ever receive communication, via e-mail, regarding what
    Mr. Hostetler was doing?
    {¶125} “MR. BERTSCH: Objection, your Honor.
    {¶126} “I did.
    {¶127} “THE COURT: Oh, just a minute, Did you receive the communication via
    e-mail? That, that is overruled, and he answered I did. I think that's fine.
    Tuscarawas County, Case No. 2010 AP 12 0046                                              24
    {¶128} “Q. And who was this communication from?
    {¶129} “Commiss-communication was from a fellow at United Rope, Gary Zwack,
    the owner, the president, whatever, he was the decision maker at United Rope.
    {¶130} “Q. And do you know what happened with Mr. Zwack?
    {¶131} “I mean with his passing?
    {¶132} “Q. Yeah.
    {¶133} “Yeah, he has since passed away.
    {¶134} “Q. After you received this communication, did it help you make any
    decisions with respect to Mr. Hostetler and his contract?
    {¶135} “Well with yeah, with the nature of it I, I felt, you know, that, you know, that
    we had, we had a problem.
    {¶136} “MR. PETTORINI: Your Honor, at this time I'd like to proffer exhibit BB.
    {¶137} “THE COURT: Okay, it would be proffered. Thank you.
    {¶138} “Q. At this point did you believe that Mr. Hostetler was helping Mr. Franks
    in his twine business?
    {¶139} “MR. BERTSCH: Objection, your Honor.
    {¶140} “THE COURT: Overruled. You may answer.
    {¶141} “I did.” (Tr. at 392-393).
    {¶142} We herein review the trial court's decision regarding the admission of
    hearsay in light of Evid.R. 103(A) and the standard established in Civ.R. 61.
    {¶143} Evid.R. 103, provides in relevant part:
    {¶144} “(A) Effect of erroneous ruling
    Tuscarawas County, Case No. 2010 AP 12 0046                                              25
    {¶145} “Error may not be predicated upon a ruling which admits or excludes
    evidence unless a substantial right of the party is affected….”
    {¶146} Civ.R. 61 sets forth the harmless error rule in civil cases, providing in
    pertinent part that no error or defect in any ruling is “ground for granting a new trial or
    for setting aside a verdict or for vacating, modifying or otherwise disturbing a judgment
    or order, unless refusal to take such action appears to the court inconsistent with
    substantial justice.”
    {¶147} “Generally, in order to find that substantial justice has been done to an
    appellant so as to prevent reversal of a judgment for errors occurring at the trial, the
    reviewing court must not only weigh the prejudicial effect of those errors but also
    determine that, if those errors had not occurred, the jury or other trier of the facts would
    probably have made the same decision.” Hallworth v. Republic Steel Corp. (1950),
    
    153 Ohio St. 349
    , 
    91 N.E.2d 690
    , paragraph three of the syllabus. If hearsay evidence
    is objected to and permitted to go to the jury, the judgment must be reversed unless it
    affirmatively appears in the record that the party is not prejudiced. Westinghouse Elect.
    Corp. v. Dolly Madison Leasing & Furniture Corp.(1975), 
    42 Ohio St.2d 122
    , 
    326 N.E.2d 651
    ; Wilson v. Barkalow, 
    11 Ohio St. 471
    , 
    1860 WL 83
    ; Lowe v. Lehman, 
    15 Ohio St. 179
    , 
    1864 WL 23
    .
    {¶148} Appellee responds that Sheely’s testimony was in the form of
    “conclusions” Sheely reached after communicating with Gerber and United Rope, and
    it maintains such conclusions do not constitute impermissible hearsay. We do not
    agree with appellee’s responsive legal argument, and because the objected-to
    evidence was hearsay which did not fall into one of the recognized exceptions which
    Tuscarawas County, Case No. 2010 AP 12 0046                                           26
    would permit it to be admitted, the trial court did not have discretion to allow the
    statements into evidence. However, after weighing the prejudicial effect of the evidence
    we find that if the statements had not been admitted, the jury would probably have
    made the same decision.
    {¶149} Appellant's Second Assignment of Error is therefore overruled.
    III.
    {¶150} In his Third Assignment of Error, appellant contends the trial court erred in
    declining to allow the submission of certain jury interrogatories. We disagree.
    {¶151} Jury interrogatories are addressed in Civ.R. 49(B), which states:
    {¶152} “The court shall submit written interrogatories to the jury, together with
    appropriate forms for a general verdict, upon request of any party prior to the
    commencement of argument. Counsel shall submit the proposed interrogatories to the
    court and to opposing counsel at such time. The court shall inform counsel of its
    proposed action upon the requests prior to their arguments to the jury, but the
    interrogatories shall be submitted to the jury in the form that the court approves. The
    interrogatories may be directed to one or more determinative issues whether issues of
    fact or mixed issues of fact and law.
    {¶153} “The court shall give such explanation or instruction as may be necessary
    to enable the jury both to make answers to the interrogatories and to render a general
    verdict, and the court shall direct the jury both to make written answers and to render a
    general verdict.
    {¶154} “When the general verdict and the answers are consistent, the appropriate
    judgment upon the verdict and answers shall be entered pursuant to Rule 58. When
    Tuscarawas County, Case No. 2010 AP 12 0046                                            27
    one or more of the answers is inconsistent with the general verdict, judgment may be
    entered pursuant to Rule 58 in accordance with the answers, notwithstanding the
    general verdict, or the court may return the jury for further consideration of its answers
    and verdict or may order a new trial.”
    {¶155} In Cincinnati Riverfront Coliseum, Inc. v. McNulty Company (1986), 
    28 Ohio St.3d 333
    , the Ohio Supreme Court held Civ.R. 49 places a mandatory duty upon
    the trial court to submit timely interrogatories to the jury, provided the interrogatories
    are in a form the court approves. An interrogatory must be drafted to test a finding on a
    determinative issue, and a trial court is not required to reformulate a defective
    interrogatory. Instead, the court has discretion to reject an improper interrogatory. See
    Freeman v. Norfolk & Western Railway Co. (1994), 
    69 Ohio St.3d 611
    , 614.
    {¶156} Appellant requested the submission of the following three interrogatories
    to the jury:
    {¶157} “Did William Hostetler breach the Purchase Agreement? *** If your answer
    is no, then do not answer Interrogatory 2 or 3.”
    {¶158} “If your answer to the prior question is yes, please state in what respect
    William Hostetler breached the Purchase Agreement.”
    {¶159} “Please state the amount of damages, if any, that Central Farms [sic]
    sustained as a direct result of any breach of the Purchase Agreement identified in your
    prior answer.” Appellant’s Appendix at A-10.
    {¶160} In the case sub judice, the trial court had issued a scheduling order
    requiring jury interrogatories to be filed one week before trial. Appellant actually
    untimely submitted his proposed interrogatories several days after the commencement
    Tuscarawas County, Case No. 2010 AP 12 0046                                                28
    of trial. Nonetheless, having reviewed three aforecited proposed interrogatories, we
    agree with appellee’s responsive argument that they may likely have confused the jury
    as to the burden of proof required of appellant, as they go beyond simply asking if
    appellant had demonstrated he had performed under the 2004 agreement. As such, we
    find the trial court did not abuse its discretion in refusing to submit the interrogatories to
    the jury.
    {¶161} Appellant's Third Assignment of Error is therefore overruled.
    IV.
    {¶162} In his Fourth Assignment of Error, appellant contends the trial court erred
    in denying his motion for a new trial based on the manifest weight of the evidence. We
    disagree.
    {¶163} Civ.R. 59(A) allows a trial court to grant a new trial upon motion, including
    one asserting that the judgment is not sustained by the weight of the evidence. Our
    standard of appellate review on a motion for new trial is abuse of discretion. Anthony v.
    Hunt (Feb. 9, 1998), Stark App.No.1997CA00170. In order to find an abuse of
    discretion, we must find the trial court's decision was unreasonable, arbitrary or
    unconscionable and not merely an error of law or judgment. Blakemore v. Blakemore
    (1983), 
    5 Ohio St.3d 217
    , 219, 
    450 N.E.2d 1140
    . In reviewing a decision on a motion
    for new trial, an appellate court must view the evidence in a light most favorable to the
    trial court's decision, rather than in favor of the nonmoving party. See Jenkins v.
    Krieger (1981), 
    67 Ohio St.2d 314
    , 320, 
    423 N.E.2d 856
    . Furthermore, “[a] civil
    judgment which is supported by competent and credible evidence may not be reversed
    Tuscarawas County, Case No. 2010 AP 12 0046                                             29
    as against the manifest weight of the evidence.” State v. McGill, Fairfield App.No.
    2004–CA–72, 2005–Ohio–2278, ¶ 18.
    {¶164} Appellant’s essential argument again is that the evidence does not
    demonstrate that he materially breached his end of the 2004 agreement. Based on our
    previous analysis herein, and in viewing the evidence in a light most favorable to the
    trial court's decision, we are unpersuaded that the court’s refusal to grant a new trial on
    the basis of the manifest weight of the evidence was unreasonable, arbitrary or
    unconscionable.
    {¶165} Accordingly, appellant’s Fourth Assignment of Error is overruled.
    Central Farm Cross-Appeal
    I.
    {¶166} In its First Assignment of Error on cross-appeal, Appellee Central Farm
    contends the jury’s verdict in favor of Appellant Hostetler on his breach of account
    cause of action was against the manifest weight of the evidence. We disagree.
    {¶167} “A civil judgment which is supported by competent and credible evidence
    may not be reversed as against the manifest weight of the evidence.” McGill, supra, at
    ¶ 18. In order to find an abuse of discretion, we must find the trial court's decision was
    unreasonable, arbitrary or unconscionable and not merely an error of law or judgment.
    Blakemore, supra.
    {¶168} “An action on an account, although founded on contract, ‘exists only as to
    the balance that may be due one of the parties as a result of [a] series of transactions.’”
    Worldwide Asset Purchasing LLC v. Sandoval, Stark App.No. 2007CA00159, 2008-
    Ohio-6343, f.n. 5, quoting Am. Sec. Serv., Inc. v. Baumann (1972), 32 Ohio App.2d
    Tuscarawas County, Case No. 2010 AP 12 0046                                            30
    237, 242, 
    289 N.E.2d 373
    . “The purpose of an action on an account is ‘to avoid the
    multiplicity of suits necessary if each transaction between the parties (or item on the
    account) would be construed as constituting a separate cause of action.’” 
    Id.,
     quoting
    Baumann at 242, 
    289 N.E.2d 373
    .
    {¶169} As indicated previously herein, Hostetler Farm Supply was established by
    appellant’s father. For years, Hostetler Farm supply had maintained a customer
    account at Appellee Central Farm. Even after execution of the 2004 purchase
    agreement, appellant continued to use the Hostetler Farm Supply account to purchase
    products from appellee. Trial testimony also indicated that appellee would periodically
    ask appellant to deliver to area customers some of the wholesale twine appellant had
    purchased from appellee and stored on his farm. Rather than engage in additional
    billing, appellee would simply credit the Hostetler Farm Account for the twine deliveries.
    {¶170} At trial, appellant produced a credit statement produced by appellee on
    February 29, 2008, indicating a credit owed to appellant of $16,739.23. See Exhibit 10;
    Tr. at 139-141. Appellee did not respond to two letters sent by appellant and/or his
    attorney in April 2008 and May 2008 requesting a check for the $16,739.23 account
    balance. The jury ultimately awarded appellant $25,240.00 on his breach of account
    claim; however, this was later reduced by agreed remittitur to the amount of
    $16,739.23.
    {¶171} In Refrigeration & Air Conditioning Institute v. Rine (1946), 
    80 Ohio App. 317
    , 
    75 N.E.2d 473
    , the court recognized: "It is generally accepted that he who seeks
    damages for a breach of contract bears the burden of proof, unless the statute
    Tuscarawas County, Case No. 2010 AP 12 0046                                            31
    otherwise dictates or knowledge is peculiarly within the possession of the other
    contracting party who must, in such case, bear the burden of producing it.”
    {¶172} In the case sub judice, appellee’s account manager, Betsy Dusenberry,
    effectively admitted that Central Farm owed the credit balance to Hostetler. Tr. at 337-
    345. Additional testimony further indicated that Central Farm had backup records
    regarding the credit balance at the time appellant requested payment in the spring of
    2008; however, Central Farm lost or destroyed these records after Dusenberry left the
    company in June 2009. Id.; Tr. at 398, 411-412. Joe Franks, the former Central Farm
    president, tried to call into question the figure of $16,739.23 being rendered on credit
    invoices, or what the company coded as “999999999” invoices, rather than on a credit
    memo. See Tr. at 273-276. Such evidence of appellee’s erratic management and
    bookkeeping practices during the time frame in question was a repeated theme
    throughout the trial. Indeed, Corey Sheely recalled what he encountered following
    when taking over as appellee’s president:
    {¶173} “Well it, it, it was a process that occurred over many years from what I,
    from what I gathered when I got in there. There was some things that I saw initially
    that concerned me, the lack of inventory control, the no           -- doing no physical
    inventories, just kind of the controls that were in place. The, the emphasis on sales
    versus profitability, in other words, we were, it was we were trying like heck under Joe’s
    leadership to get to 50, 60, 70 million in sales, with absolutely no regard for the
    expense it took to do that, and the profitability of the company was why, I think I stated
    the other day, that we were 50 million in sales with no profit, and our books were in
    such disarray that there was absolutely no way to even know if the company was
    Tuscarawas County, Case No. 2010 AP 12 0046                                              32
    making a profit. And so when I was asked to step in, the litigation began to take place.
    I just tried to begin to firm things up as quickly as I possibly could, in an effort to, you
    know, hopefully save at that time 90, 80 to 90 jobs, keep the company -- when I was
    asked if I even wanted to even do this, when everything came to light, we were -- the
    inventory was in total disarray, we were under collateralized, banks were calling,
    vendors weren’t paid, and Dick said can you step in and do something about this and I
    was like, well you know, I might as well because I don’t have anything better to do, at
    that time, and I, I believed in and the employees believed in what the company had
    there. I mean the infrastructure of the company, the nitch the company provided, the
    customer base we had, the trucks and all the equipment we had, we had the makings
    of a, of a successful company. It just had been terribly, terribly mismanaged, in my
    mind.” Tr. at 353-354.
    {¶174} Upon review, we hold that the jury was entitled to rely on Central Farm’s
    own business record, i.e., the credit statement of February 29, 2008, as an admission
    and prima facie evidence of the account balance owed appellant, and the jury’s
    rejection of appellee’s response thereto in regard to the breach of account claim was
    not against the manifest weight of the evidence.
    {¶175} Cross-Appellant's First Assignment of Error is overruled.
    II.
    {¶176} In its Second Assignment of Error on cross-appeal, appellee contends the
    jury’s verdict in favor of appellant on the “account stated” cause of action was against
    the manifest weight of the evidence. We disagree.
    Tuscarawas County, Case No. 2010 AP 12 0046                                           33
    {¶177} In   Gunton    Building   Specialties   v.   G.H.&   M.   Development    and
    Construction, Stark App.No 5381, 
    1981 WL 6202
    , this Court stated: “An ‘account
    stated’ is defined as the settlement of an account between the parties, with a balance
    struck in favor of one of them. Put another way, an ‘account stated’ is rendered by the
    creditor and by the debtor assented to as correct, either expressly, or by implication of
    law from the failure to object. *** Once an ‘account stated’ is established, it is prima
    facie evidence of its correctness and a party seeking to set it aside must do so on
    grounds of mistake or fraud and the party so doing has the burden of proving mistake
    or fraud by clear and convincing evidence.”
    {¶178} However, in order to secure reversal of a judgment, a party on appeal
    must generally show that a recited error was prejudicial. See Tate v. Tate, Richland
    App.No. 02-CA-86, 
    2004-Ohio-22
    , ¶ 15 (additional citations omitted). In the case sub
    judice, the verdict form for the “account stated” cause of action (cause of action
    number 3), which in this instance is rendered for appellant, directed the jury not to
    insert a damage amount if damages had already been awarded for the breach of
    account cause of action (cause of action number 2). Accordingly, the jury duly left the
    damages line blank in the account stated verdict form. Under these circumstances, we
    find further analysis of the issue of the account stated claim to be unnecessary.
    Tuscarawas County, Case No. 2010 AP 12 0046                                           34
    {¶179} Cross-Appellant's Second Assignment of Error is overruled as moot.
    {¶180} For the reasons stated in the foregoing opinion, the judgment of the Court
    of Common Pleas, Tuscarawas County, Ohio, is hereby affirmed.
    By: Wise, J.
    Gwin, P. J., and
    Edwards, J., concur.
    .
    ___________________________________
    ___________________________________
    ___________________________________
    JUDGES
    JWW/d 0106
    Tuscarawas County, Case No. 2010 AP 12 0046                                       35
    IN THE COURT OF APPEALS FOR TUSCARAWAS COUNTY, OHIO
    FIFTH APPELLATE DISTRICT
    WILLIAM HOSTETLER                            :
    :
    Plaintiff-Appellant/Cross-Appellee        :
    :
    -vs-                                         :         JUDGMENT ENTRY
    :
    CENTRAL FARM AND GARDEN, INC.                :
    :
    Defendant-Appellee/Cross-Appellant    :         Case No. 2010 AP 12 0046
    For the reasons stated in our accompanying Memorandum-Opinion, the
    judgment of the Court of Common Pleas of Tuscarawas County, Ohio, is affirmed.
    Costs to be split evenly between Appellant and Appellee.
    ___________________________________
    ___________________________________
    ___________________________________
    JUDGES
    

Document Info

Docket Number: 2010 AP 12 0046

Citation Numbers: 2012 Ohio 507

Judges: Wise

Filed Date: 2/9/2012

Precedential Status: Precedential

Modified Date: 10/30/2014