JNT Properties, L.L.C. v. KeyBank National Ass'n
134 Ohio St. 3d 209
| Ohio | 2012Background
- JNT Properties, L.L.C. sues KeyBank National Association over interest calculations in a promissory note.
- The note fixes an initial rate of 8.93% per annum but KeyBank charges 8.93% per 360 days, i.e., a higher effective rate.
- The note contains a “Variable Interest Rate” provision tied to the Federal Home Loan Bank Seattle Five Year Fixed Rate index.
- The “Payment” provision states: “The annual interest rate for this Note is computed on a 365/360 basis” with a detailed calculation method.
- Lower courts split: trial court granted summary judgment to KeyBank; court of appeals reversed; this Court granted discretionary review to resolve the ambiguity issue.
- This Court held the clause is not ambiguous and reinstated summary judgment for KeyBank, applying the 365/360 method as described.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the clause ambiguous about the interest calculation method? | JNT contends the clause is ambiguous. | KeyBank argues the clause defines the 365/360 method. | Not ambiguous; clause clarifies calculation method. |
Key Cases Cited
- Kreisler & Kreisler, L.L.C. v. Natl. City Bank, 657 F.3d 729 (8th Cir. 2011) (explains 365/360 method and related time-factor approaches)