Erie Capital, L.L.C. v. Barber
2021 Ohio 2258
| Ohio Ct. App. | 2021Background
- Three brothers (through entities) co-owned property on Kelleys Island; William (Erie Capital, LLC) sued in 2016 to partition the property against Peter and Werner (their trusts).
- A recorded settlement hearing before a magistrate on August 31, 2017 set out oral division/allocation terms for specific parcels and other items (sale to Trust for Public Land, right of first refusal, access roads, deed recordings, and treatment of Werner’s $45,000 "start-up" payment).
- The magistrate asked the parties to confirm the orally recited terms; William and Peter (as proxy for Werner) verbally confirmed, and counsel said a written "Kelleys Island Agreement" would be prepared for the court.
- No written agreement was ever filed; the court dismissed the case as "settled" (with prejudice) but retained jurisdiction to enforce the settlement; defendants later filed a joint motion to enforce the oral settlement.
- After an evidentiary hearing, the trial court denied enforcement, concluding the oral agreement was unenforceable for lack of definite terms and no meeting of the minds on essential issues (notably the type of deeds and access rights).
- Appellants appealed, arguing (1) the trial court erred regarding an alleged private easement shown on a 2001 plat and (2) the court should have enforced the settlement because material terms were clear.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a private driveway easement (per 2001 plat) existed/enforceable | William: easement issue was not part of the enforcement motion and was not decided; court did not rule on easement | Peter/Werner: 2001 plat created a private easement allowing access across Parcel 11 | Court: issue not before court on motion to enforce; appellants' easement argument is outside scope and not well-taken |
| Whether the oral settlement agreement was enforceable | William: essential terms (type of deeds, access rights) were not agreed; no meeting of the minds => unenforceable | Peter/Werner: magistrate recited terms on record and parties confirmed; oral agreement is binding | Court: affirmed denial of enforcement—oral agreement lacked definite essential terms and no mutual assent on crucial issues (deeds/access) |
Key Cases Cited
- Kostelnik v. Helper, 96 Ohio St.3d 1 (2002) (defines contract elements and requires meeting of the minds for enforceability)
- Rulli v. Fan Co., 79 Ohio St.3d 374 (1997) (settlement terms must be reasonably certain; evidentiary hearing required where terms disputed)
- Continental W. Condo. Unit Owners Assn. v. Howard E. Ferguson, Inc., 74 Ohio St.3d 501 (1996) (standard of review for motions to enforce settlements)
- Episcopal Retirement Homes, Inc. v. Ohio Dept. of Indus. Relations, 61 Ohio St.3d 366 (1991) (contracts must be definite and certain as to essential terms)
- Mantia v. House, 178 Ohio App.3d 763 (2008) (in non-goods contracts, essential terms generally include the parties and subject matter)
- Rutledge v. Hoffman, 81 Ohio App. 85 (1947) (oral contract terms may be proved by words, deeds, acts, and silence)
