Leal v. Holtvogt

702 N.E.2d 1246 (Ohio 1998)

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Nature of the Case

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Facts

Holtvogt (D) owned and operated Shady Glen Arabians, a horse barn in Miami County, Ohio. They were experienced in Arabian horse training, breeding, boarding, selling, and showing. In 1992, the Leals (P), novices in the equine industry, decided to begin raising horses. P began visiting Shady Glen Arabians regularly to learn how to ride and handle horses. P began spending three to four days each week at D's barn helping with the horses. P decided they wanted to start a breeding program by purchasing a stallion to breed with a mare they owned. D offered P a one-half interest in Mc Que Jabask, an Arabian stallion that D owned. D represented that Mc Que Jabask was a national top ten champion in three categories; he was an all-around winning stallion; he earns $20,000.00 per year in stud fees; he is capable of attaining national show titles again; and his foals were selling for $6,000 to $10,000 each. P and D entered into a contract of sale for a one-half interest in Mc Que Jabask for $16,000. The contract also established a partnership agreement, which called for the parties to share equally in the expenses and profits arising from their joint ownership of Mc Que Jabask. Prior to January 1994, Mc Que Jabask had been treated for lameness and was suffering a chronic lameness condition in his right rear and fore fetlocks. D had taken the stallion for lameness treatments numerous times. D did not disclose this information to P. Ps were dissatisfied with the partnership and wanted either a refund of their money or a remedy for their concerns. In March 1995, the mortality insurance on Mc Que Jabask lapsed. Mary Leal (P), a former Dayton police officer, was unhappy with the partnership. She began making disparaging remarks about D's honesty and integrity to the past and present customers of Shady Glen Arabians. D claimed that he suffered from depression, had visited some medical doctors, and was on medication. D could not prove any business or economic damages due to Mary Leal's remarks. Mc Que Jabask died from stomach ulcer complications. Since neither party had renewed the stallion's mortality insurance, Mc Que Jabask was uninsured. P sued D who then brought counterclaims against P. The Court found that D had negligently misrepresented the stallion's condition and that they had breached an 'express warranty on the condition of the horse for the purposes intended' and awarded P $16,000 in compensatory damages. The trial court awarded D $ 800.23 in compensatory damages for the services they had provided for these four horses. The court also found that Mary Leal slandered D and, after concluding that D's damages were minimal to nominal, awarded him $ 1,000 in compensatory damages. The trial court awarded D $ 3,000 for punitive damages and attorney fees. Both parties appealed.