Borkey v. J.F. Glaze Cleveland L.L.C.
18 N.E.3d 820
Ohio Ct. App.2014Background
- Borkey and Glaze Cleveland, L.L.C. entered into a 2008 sale of Jack Frost Donuts, including a non-compete.
- Settlement agreement reached in January 2013 to resolve all claims stemming from the sale and to govern a real-property transfer and a non-compete.
- On July 9, 2013, Borkey moved to enforce the settlement, alleging failure to execute a new non-compete and to transfer property.
- Trial court found the non-compete issue moot after the parties executed a second non-compete, and crafted an equitable remedy: transfer by Jan 1, 2014 or a $500 monthly reduction in the purchase price, with further sanctions possible.
- Property ultimately transferred to Borkey; Borkey appealed arguing the settlement should be enforced as written and the remedy was improper.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the court properly handle mootness and enforceability of the non-compete? | Borkey argues the settlement required a specific enforcement of the non-compete terms. | Glaze contends the second non-compete resolved the issue and the mootness ruling was proper. | Issue resolved moot; no reversible error; mootness supported by new agreement. |
| Was the court's missing-term remedy for the transfer appropriate enforcement of the settlement? | Borkey contends the remedy created by the court deviates from the agreement. | Glaze argues the remedy reasonably fills gaps to accomplish contemplated transfer. | Remedy, as crafted, reasonably filled missing terms and aligns with intended settlement. |
Key Cases Cited
- Normandy Place Assocs. v. Beyer, 2 Ohio St.3d 102 (Ohio 1982) (preliminary agreement enforceability depends on intention and definiteness of terms)
- Oglebay Norton Co. v. Armco, 52 Ohio St.3d 232 (Ohio 1990) (whether parties manifested binding intent despite missing terms must be assessed)
- Litsinger v. American Sign Co., 11 Ohio St.2d 1 (Ohio 1967) (court may fill gaps to effect a fair and just result when parties intend to be bound)
