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APPEAL from the Franklin County Municipal Court.
DESHLER, J.
Defendant-appellant, F & W Properties, appeals from a judgment of
the
Franklin County Municipal Court granting summary judgment for
plaintiff-appeilee, Brian
Zeallear, in appellee's action under the Ohio Landlord-Tenant Act
to recover a rental security
deposit from appellant, his former landlord. Also before the
court is appellee's motion for an
award of attorney fees for this appeal.
Appellee, his girlfriend Leanne Gargett, and Robert Hoersdig,
together entered
into a one-year lease with appellant for a residence located at
1055-B Neil Avenue in
Columbus, Ohio. The co-tenants collectively paid a $600 security
deposit and appellee
individually paid an additional $100 "pet deposit" under a "pet
addendum" noted
in the lease. For purposes of this action, Gargett later executed
an assignment of her
rights in the security deposit to appellee.
The initial term of the lease was for one year ending February
28, 1998. After
expiration of the one-year term, the tenants remained in the
property on a month-tomonth
basis but appellee and Gargett soon thereafter gave notice on
March 27, 1998, of their intent to
move out at the end of April. Hoersdig planned to remain in the
property and eventually entered
into a new lease along with two new co-tenants, Shawn Wool and
David Robinson. Hoersdig, Wool
and Robinson were eventually joined as third-party defendants by
appellant in the present
action but ultimately dismissed and are not parties to this
appeal.
When appellee inquired about his and Gargett's shares of the
security deposit
upon vacating the premises, appellant apparently refused to
return the security deposit on the
pretext that as long as one of the three original tenants
remained on the premises, the landlord
was under no obligation to return the proportionate shares of the
two departed tenants, despite
the execution of the new lease with the sole remaining original
tenant and two new co-tenants.
According to appellee, appellants agent suggested that appellee
and Gargett recoup their shares
of the security deposit from the new tenants. Appellee concedes
that he did not provide written
notice to appellant of his forwarding address until July 2, 1999.
It is undisputed that no
portion of the security deposit was ever returned to appellee or
Gargett.
Appellee then commenced the present action in the small claims
division of the
Franklin County Municipal Court The case was eventually
transferred upon motion of appellant
to the regular division of the municipal court, where appellee
filed his motion for summary
judgment. By decision and judgment entry dated June 16, 1999, the
trial court
granted summary judgment for appellee. The court found that
appellee was entitled to the
return of his and Gargett's share ($400) of the $600 security
deposit upon termination of
their tenancy, and that appellee was also entitled to the return
of his $100 pet deposit. The
court found that the landlord had not established any basis for
withholding the deposits, and that
these amounts were therefore "wrongfully withheld" as defined in
R.C. 5321.16(B). Pursuant
to R.C. 5321.16(B) and (C), the court found that, the deposits
having been wrongfully
withheld, appellee was entitled to double damages totaling $1,000
and attorney fees. After a
subsequent hearing to hear evidence on fees, the court awarded
attorney fees in the amount of
$1,502. The courts second judgment entry in the case accordingly
noted the previously awarded
damages in the amount of $1,000, set attorney fees in the amount
of $1,502, and further noted
that "judgments herein shall accrue interest at the rate of 10%
per annum." The trial court
entered yet another judgment entry on September 28, 1999,
dismissing all third party
defendants, setting damages again at $1,000, and setting a
slightly lower figure for attorney
fees, $1,493. Although not clearly stated, the court again
appears to have imposed interest on
the fee portion of the award. It is from this final judgment that
appellant brings the present
appeal, setting forth the following four assignments of error
1. THE TRIAL COURT COMMITTED ERROR WHEN IT GRANTED SUMMARY
JUDGMENT TO THE
PLAINTIFF/APPELLEE ON THE ISSUE OF THE WRONGFUL WITHHOLDING OF
THE PLAINTIFF'S
SECURITY DEPOSIT BY THE DEFENDANT.
2. THE TRIAL COURT COMMITTED ERROR WHEN IT GRANTED SUMMARY
JUDGMENT TO THE
PLAINTIFF/APPELLEE ON THE ISSUE OF STATUTORY DOUBLE DAMAGES
PURSUANT TO ORC
SECTION 5321.16(B) AND (C).
3. THE TRIAL COURT COMMITTED ERROR WHEN IT GRANTED JUDGMENT TO
PLAINTIFF/APPELLEE FOR ATTORNEY FEES IN THE SUM OF $1,502.00 (OR
$1,493.00).
4. THE TRIAL COURT COMMITTED ERROR WHEN IT GRANTED JUDGMENT TO
PLAINTIFF/APPELLEE FOR INTEREST AT 10% PER ANNUM ON THE AWARD OF
ATTORNEY FEES.
Initially, we note that the present matter was decided upon
summary judgment.
Pursuant to Civ.R. 56(C), a motion for summary judgment shall be
granted if: (1) no genuine
issue of material fact remains to be litigated; (2) the moving
party is entitled to judgment as a
matter of law; and (3) the evidence demonstrates that reasonable
minds can come to but one
conclusion, and that conclusion is adverse to the non-moving
party. Davis v. Loopco Industries,
Inc. (1993), 66 Ohio St.3d 64. An appellate court will
independently review the pleadings and
evidentiary material submitted to the trial court and apply the
same standard to determine
whether the materials established a genuine issue of material
fact before the trial court.
Lorain Natt. 8k. v. Saratoga Apts. (1989), 61 Ohio App.3d 127,129.
Appellant's first assignment of error asserts that the trial
court erred in
granting summary judgment for appellee because appellee and
Gargetts' shares of the security
deposit were not "wrongfully withheld." Appellant asserts that
the landlord had the right to
retain the entire security deposit after appellee and Gargetts'
departure, that when the
premises were ultimately vacated by the three subsequent tenants
on January 14, 1999, the
landlord found substantial damage to the premises, which would
justify a set-off against the
security deposit, and that the pet deposit was in any case
nonrefundable. Specifically, with
respect to retention of the entire security deposit, appellant
argues that since it was established
by affidavit that one of the initial co-tenants,
Hoersdig, remained as an occupant, the entire security deposit
remained in effect with the new
lease signed by Hoersdig and his two new co-tenants, Wool and
Robinson. The pertinent parts of
the Ohio Landlord Tenant Act, codified at R.C. 5321.01 et seq.,
are R.C. 5321.16(B) and (C),
providing as follows:
(B) Upon termination of the rental agreement any property or
money held by the landlord as a
security deposit may be applied to the payment of past due rent
and to the payment of the amount
of damages that the landlord has suffered by reason of the
tenants noncompliance with section
5321.05 of the Revised Code or the rental agreement. Any
deduction from the security deposit
shall be itemized and identified by the landlord in a written
notice delivered to the tenant
together with the amount due, within thirty days after
termination of the rental agreement and
delivery of possession. The tenant shall provide the landlord in
writing with a forwarding
address or new address to which the written notice and amount due
from the landlord may be
sent. If the tenant fails to provide the landlord with the
forwarding or new address as required,
the tenant shall not be entitled to damages or attorneys fees
under division (C) of this section.
(C) If the landlord fails to comply with division (B) of this
section, the tenant may recover the
property and money due him, together with damages in an amount
equal to the amount
wrongfully withheld, and reasonable attorneys fees
The Ohio Supreme Court. has stated that the General Assembly's
intent in enacting the above
provisions was "to provide a penalty by way of damages- and
reasonable attorney fees against a
noncomplying landlord for the wrongful withholding of any or all
of the security deposit."
Vardeman v. Llewellyn (1985), 17 Ohio St.3d 24, 28. In a later
case, the Supreme Court
further stated that the deterrent effect of the statute would be
removed if a landlord were able to
avoid the penalties of double damages and attorney fees by merely
tendering a list of facially
justifiable reasons for the deductions. Smith v. Padgett (1987),
32 Ohio St.3d 344, 349.
In this statutory context, the issues before us today in
connection with
appellant's first assignment of error are two-fold: first,
whether a landlord can, based upon a
carry-over co-tenant occupying the premises under a new lease
with new co-tenants, retain a
proportionate share of a security deposit belonging to former
co-tenants under a previous lease
who vacated the premises in accordance with the terms of that
lease; and, second, whether
property damage ascertained by the landlord at the end of
occupancy by the subsequent co-
tenants will justify deductions from the initial security
deposit. We answer both questions in
the negative.
Clearly, after appellee and Gargett terminated their tenancy,
duly giving thirty-
day notice as required in the lease, and paying rent owed through
the term of their tenancy, they
were no longer "tenants" as defined in the lease or under Ohio
law, and their security deposit
was returnable at that time. The situation was rendered all the
more clear by appellant's
execution of a new lease with the sole holdover tenant and his
two new co-tenants. The landlord's
course of action at that time would have been to ascertain the
state of the premises, make any
lawful deductions from the security deposit based upon that
inspection and other factors, such
as past due rent, and return the proportionate balance of the
security deposit to the departing
tenants. Instead, appellant attempted to treat the new lease as a
continuation of the old one, for
which appellee and Gargett were responsible, and encouraged
appellee to attempt to recoup his
share of the security deposit from the new tenants. Even if we
were to accept appellants
contention that the security deposit was not severable among the
tenants by the terms of the
lease, and was thus not refundable in increments as each
co-tenant individually vacated the
apartment, the execution of the new lease effectively ended the
tenancy for all of the initial co-
tenants, and renders this argument ineffective.
On the issue of physical damage to the premises, appellee's
affidavit states that
he left the premises in an undamaged condition. Appellants
agent's affidavit states only that
significant damages were found after the premises were vacated by
the subsequent co-tenants.
The burden falls upon the landlord to establish the lawfulness of
any deductions from the
security deposit. Albreqt v. Chen (1983), 17 Ohio App.3d 79;
Paxton v. McGranahn (Oct. 31,
1985), Cuyahoga App. No. 49645, unreported. Appellant's affidavit
alleges only damages at the
conclusion of the subsequent tenants' occupancy. This did not
establish a material question of
fact regarding the condition of the premises at the time
appellant and Gargett vacated, in light of
appellee's affidavit that the premises were in good condition at
that time.
We therefore conclude that appellant has not established the
right, either under
the lease or statute, to carry-over appellee's security deposit
beyond his tenancy. Nor has
appellant established a material issue of fact regarding the
necessity to withhold any portion of
the deposit based upon the condition of the premises. It was
therefore not error for the trial
court to conclude that appellee's security deposit was
"wrongfully withheld" by appellant,
giving rise to double damages and reasonable attorney fees.
Appellant further argues, in connection with the first assignment
of error, that
the trial court erred in treating the $100 pet deposit as
refundable with appellee's share of the
$600 security deposit under the lease. The trial court found that
the pet deposit, like the
security deposit, would be returnable to appellee at the
termination of his tenancy. Appellant
points out that the affidavit of its agent, presented in
opposition of summary judgment, averred
that the pet deposit was non-refundable, and essentially
represented a forfeiture fee to be paid
by appellee based upon his intention to keep a dog on the
premises. The copy of the lease before
us contains a marginal notation, next to the
no pets" clause, as follows: " 1. Dog w/$100 dep.," and a
notation -under the tenants'
signature block also mentioning a $100 pet deposit "per
addendum." Unfortunately, the
text of the referenced pet addendum is not present in the record.
The term "deposit' in reference to this charge, in conjunction
with the term
security deposit used elsewhere in the lease, might create at
least an inference that the $100
would be refundable at the term of the tenancy based upon the
condition of the premises. For
purposes of summary judgment, however, this is not conclusive,
since appellant's agent' s
affidavit creates a material issue of fact as to whether the pet
deposit was refundable. It was
therefore error on the part of the trial court, in the context of
summary judgment, to include a
$100 pet deposit in the amounts wrongfully withheld by the
landlord giving rise to double
damages. Appellant's first assignment of error is accordingly
sustained in this respect only, and
the judgment of the trial court shall be modified to reduce the
amount improperly withheld by
appellant to $400, representing only appellee and Gargett's
proportionate share of the $600
security deposit. Appellant's first assignment of error is in all
other respects overruled.
Appellant's second and third assignments of error together assert
that appellee
was not entitled to-double damages and attorney fees under R.C.
5123.16, because appellee did
not timely furnish appellant with a forwarding address for return
of the security deposit.
Appellant relies upon the explicit language of R.C. 5321.16(B):
The tenant shall provide-the landlord in writing with a
forwarding address or a new
address to which the written notice and amount due from the
landlord may be sent. If the tenant
fails to provide the landlord with the forwarding or new address
as required, the tenant shall
not be entitled to damages or attorneys fees under division (C)
of this section.
R.C. 5321.16(B) thus requires the tenant to provide a forwarding
address as a prerequisite to
the landlord's obligation to furnish an itemized list justifying
deductions from the security
deposit within thirty days. Appellant argues that a logical
interpretation of the statute would be
that any failure by the tenant to provide a forwarding address
within thirty days would
necessarily deprive the landlord of any opportunity to comply
with the statute's itemization
requirement, and that the penalties should be inapplicable in
such cases. Since, in the present
case, appellee did not provide a forwarding address until July 2,
1998, some two months after
termination of the tenancy, appellant argues that no statutory
double damages or attorney fees
should have been awarded.
We find that appellant did not timely raise this issue in the
trial court and that it
is therefore not properly before us on appeal. Appellant did not
present argument on this issue
in opposition to summary judgment, and only attempted to bring R
to the trial court's attention
at the fee hearing on November 8, 1999, well after the trial
court had rendered its initial
decision and judgment entry on June 16, 1999. Issues not timely
raised in the trial court and
presented for the first time on appeal shall not be considered.
Republic Steel Corp. v. Bd. of
Revision of Cuyahoga Cty. (1963), 175 Ohio St. 179; Ridgley, Inc.
v. Wadswoith Bd. of Zoning
Appeals (1986), 28 Ohio St.3d 357. Failure to raise arguments,
affirmative defenses, and
objections to evidence in opposition to summary judgment will
constitute waiver of such
arguments. State ex rel Tubbs Jones v. Suster (1998), 84 Ohio St.
3d 70; Nationwide Mut
Fire Ins. Co. v., Wittekind (1999), 134 Ohio App.3d 285; Rose v.
Nationwide Mut Ins. Co.
(Aug. 30, 1999), Belmont App. No. 97 BA 48, unreported.
Appellants second and third
assignments of error are accordingly overruled, as the issues
raised therein are not properly
before us on appeal.
Appellant's fourth assignment of error asserts that the trial
court erred in
ordering that int erest should accrue not only on the damages
portion of the award, but on the
attorney fees award. It is not entirely clear from the judgment
entry whether or not the trial
court intended to award attorney fees as damages subject to
accrual of interest. To the extent the
trial court may have done so, however, it was clearly error.
"Attomey fee awards made
pursuant to R.C. 5321.16(C) are to be assessed as costs." Christe
v. GMS Mgmt. Co., Inc.
(2000), 88 Ohio St.3d 376, syllabus. Appellant's fourth
assignment of error is accordingly
sustained, and the trial courts judgment will be modified to
clarify that interest is not to accrue
on the attorney fee portion of the award.
Finally, we turn to appellee's motion for additional fees in
connection with this
appeal. Courts have generally treated the attorney fee provisions
of R.C. 5321.16(C) as not
applicable to appellate fees. Nolan v. Sutton (1994), 97 Ohio
App.3d 616, 621. As we do not
find this appeal to be frivolous, we decline to award attorney
fees under App. R. 23.
In summary, appellant's fourth assignment of error is sustained,
appellant's
second and third assignments of error are overruled, and
appellant's first assignment of error
is overruled in part and sustained only to the extent that the
trial court included the $100 pet
deposit as wrongfully withheld and subject to double damages.
Judgment will accordingly be
entered for appellee in the amount of $800 in damages and S1,493
in attorney fees.
Judgment affirmed in part and reversed in part. TYACK and
McCORMAC, JJ.,
concur.
McCORMAC, J., retired, of the Tenth Appellate District, assigned
to active duty under authority
of Section 6(C), Article IV, Ohio Constitution.
No. 99AP-1215
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