Busch Bros. Elevator Co. v. Unit Building Services
942 N.E.2d 404
Ohio Ct. App.2010Background
- Busch Brothers Elevator sued Unit Building Services and RCHP for breach of contract over unpaid elevator repair work; bench trial awarded Busch money from both defendants, which Unit appeals.
- RCHP owned a Sheraton Hotel and hired Unit as construction manager; Unit contacted Busch to perform repairs; no written contract existed between Unit and Busch.
- Trial court allocated responsibility for five invoices (Sept–Nov 2005) between RCHP (one invoice) and Unit (four invoices) based on alleged contracts.
- The court found Busch completed work at Unit's direction and that Unit had previously paid eight invoices through RCHP, suggesting course of dealings but not establishing Unit’s contractual liability.
- Court rejected the existence of a contract between Unit and Busch for payment, citing lack of consideration and lack of sufficiently particular terms for an oral contract; it reversed in part and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a contract between Unit and Busch requiring Unit to pay? | Busch argues there was a contractual obligation based on course of dealings. | Unit contends there was no contract due to lack of consideration and specificity. | No contract; Unit not liable. |
| Whether Busch’s damages were unrecoverable due to mitigation, given the contract issue is resolved. | Busch would argue damages are recoverable absent mitigation concerns. | Unit argues damages must be reduced for failure to mitigate, though moot after holding no contract. | Moot; not addressed on the merits. |
Key Cases Cited
- Seasons Coal Co. v. Cleveland, 10 Ohio St.3d 77 (Ohio 1984) (established standards for contract/other civil matters in Ohio)
- C.E. Morris Co. v. Foley Conslr. Co., 54 Ohio St.2d 279 (Ohio 1978) (contract formation and consideration principles)
- Nationwide Mut. Fire Ins. Co. v. Guman Bros. Farm, 73 Ohio St.3d 107 (Ohio 1995) (precedent on contract damages and related issues)
- Ohio Bell Tel. Co. v. Pub. Util. Comm., 64 Ohio St.3d 145 (Ohio 1992) (regulatory/contractual interactions context)
- Minster Farmers Coop. Exchange Co., Inc. v. Meyer, 117 Ohio St.3d 459 (2008) (recent Ohio contract doctrine reference)
- Lake Land Emp. Group of Akron, L.L.C. v. Columber, 101 Ohio St.3d 242 (Ohio 2004) (interpreting contract formation and consideration)
- Kostelnik v. Helper, 96 Ohio St.3d 1 (Ohio 2002) (contract formation and mutual assent standards)
- Irwin v. Lombard Univ., 56 Ohio St. 9 (Ohio 1897) (ancillary contract principles survives longstanding treatment)
- Software Clearing House, Inc. v. Intrak, Inc., 66 Ohio App.3d 163 (Ohio App. 1990) (evidence and formation considerations for oral contracts)
- Borgerding v. Ginocchio, 69 Ohio App. 231 (Ohio App. 1942) (Restatement-based view on consideration)
