Capital City Community Urban Redevelopment Corp. v. Columbus
2016 Ohio 8266
| Ohio Ct. App. | 2016Background
- Capital City purchased the deteriorating Lincoln Theatre in 1991 and later sold it to Columbus Urban Growth under a contract containing paragraph 9(a) (requirement to provide Saturday children's double-feature movies for $1 or less "for as long as feasible") and 9(b) (a bronze plaque chosen by Adrian).
- Columbus Urban Growth conveyed the theatre to the City of Columbus; the City knew of paragraph 9 before purchase; Adrian's plaques were removed by city officials.
- This court previously held that paragraphs 9(a) and 9(b) were real covenants running with the land and binding on the City. The trial court entered a declaratory judgment enforcing those provisions.
- The City leased the restored Lincoln Theatre to the Lincoln Theatre Association for 99 years; CAPA manages operations. After reopening in 2009 the theatre did not run the required Saturday children’s movie series.
- Capital City and Adrian sued under R.C. 2721.09 to enforce the declaratory judgment. The trial court ordered a trial summer schedule (eight double-feature Saturdays at $1); attendance and revenue data and detailed expense/opportunity-cost evidence were introduced.
- The trial court found showing Saturday children's movies year-round was not "feasible" and denied further relief; plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Meaning of "feasible" in paragraph 9(a) | "Feasible" means physically possible (equipment/space exist), so requirement is met. | "Feasible" has its ordinary meaning—capable of being done taking into account all factors (including financial viability). | Court held "feasible" includes financial and practical considerations; not limited to mere physical capability. |
| Whether Lincoln Theatre Association must run weekly $1 children’s double-features | The theatre has equipment and could run series; defendants' financial excuses insufficient. | Costs and lost booking revenues make a weekly program financially impracticable; benefactor funding is unlikely. | Court deferred to trial court credibility findings and held competent, credible evidence showed the program was not feasible. |
| Whether the trial court abused discretion in crediting defendants' witnesses (fundraising/financial testimony) | Plaintiffs argued defendants' witnesses were biased/hostile and testimony should be disbelieved. | Defendants showed financial reports, expense breakdowns, and opportunity costs; their witnesses had relevant experience. | Court found no abuse—trial court entitled to weigh credibility and found defendants' evidence more persuasive. |
| Entitlement to damages and jury trial for alleged breach | Plaintiffs sought damages and jury trial for violation of covenant/declaratory judgment. | Defendants argued no violation because covenant not feasible; no damages owed. | Moot: because court held no breach (covenant not feasible), claim for damages/jury trial was not reached. |
Key Cases Cited
- Myers v. Garson, 66 Ohio St.3d 610 (trial-court factual findings entitled to deference)
- Seasons Coal Co. v. Cleveland, 10 Ohio St.3d 77 (trial judge best positioned to assess witness credibility)
- Daloia v. Franciscan Health Sys., 79 Ohio St.3d 98 (cy pres doctrine governs modification of charitable trusts)
- Hitz v. Flower, 104 Ohio St. 47 (primary objective in covenant interpretation is parties' intent as reflected by contract language)