2022 Ohio 4468
Ohio Ct. App.2022Background
- Cafaro-Peachcreek Joint Venture Partnership (Cafaro) licensed retail unit 410 at Millcreek Mall to Jill Spanggard (doing business as Vapor Guy) for 14 months beginning November 2019; agreement required use as an e-cigarette retail store and included rent/marketing/trash charges but no force majeure clause.
- On March 16, 2020, the Pennsylvania governor ordered closure of nonessential businesses; Cafaro notified tenants the mall would close and, according to Spanggard, denied her access and locked entryways that day.
- Spanggard’s associate returned possession of the unit to Cafaro on May 4, 2020; Spanggard alleges she was later allowed to retrieve property; the mall reopened June 26, 2020.
- Cafaro sued in September 2020 for unpaid charges; Spanggard counterclaimed for wrongful eviction, breach of quiet enjoyment, and related claims.
- The trial court initially denied Cafaro’s summary judgment motion, then later granted summary judgment to Cafaro on breach and counterclaims and awarded $18,513.67 in damages.
- On appeal, the Eleventh District reversed the summary judgment and damages award, finding genuine factual disputes about whether Cafaro performed its contractual obligations and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court correctly granted summary judgment for breach of contract | Cafaro argued Spanggard breached by vacating and owed unpaid charges; summary judgment proper | Spanggard argued Cafaro first breached by denying access and thus did not perform | Reversed: genuine issues of material fact exist about Cafaro’s performance; summary judgment improper |
| Applicability of frustration-of-purpose doctrine to excuse performance | Cafaro argued doctrine inapplicable | Spanggard argued COVID closure frustrated the contract’s purpose | Court: doctrine not adopted by this district; trial court did not err in rejecting it |
| Whether equitable relief/force majeure could suspend obligations | Cafaro relied on contract terms; no force majeure clause exists | Spanggard urged equitable suspension of obligations while mall was closed | Court: issue waived on appeal and, in any event, no contractual force majeure to invoke; no error in declining to "balance equities" |
| Damages and contractual post-judgment interest | Cafaro sought $42,644.26 plus 18% post-judgment interest; trial court awarded $18,513.67 without explicit contractual interest | Spanggard challenged amount and timing of many charges | Because summary judgment reversed, damages award and interest issue rendered moot and remanded for further proceedings |
Key Cases Cited
- Wroblesky v. Hughley, 169 N.E.3d 709 (11th Dist. 2021) (refused to adopt frustration-of-purpose doctrine)
- Mosher v. Cook United, Inc., 405 N.E.2d 720 (Ohio 1980) (license defined as permission to use another’s land without estate)
- Chemtrol Adhesives, Inc. v. American Manufacturers Mutual Insurance Co., 537 N.E.2d 624 (Ohio 1989) (parties free to allocate commercial risks by contract)
- Haverhill Glen, LLC v. Eric Petroleum Corp., 67 N.E.3d 845 (7th Dist. 2016) (discussion of force majeure and its contractual nature)
- Sentinel Consumer Prods., Inc. v. Mills, Hall, Walborn & Associates, Inc., 673 N.E.2d 967 (Ohio App. 1996) (conflicting evidence about first breach should be for jury)
- Di Renzo v. Cavalier, 135 N.E.2d 394 (Ohio 1956) (license vs. lease decided by parties’ intent)
