Michael A. Gerard, Inc. v. Haffke
2013 Ohio 168
Ohio Ct. App.2013Background
- Gerard, Inc. contracted with the Haffkes for nanny placement services, charging a nonrefundable $175 search fee.
- Gerard placed a candidate, Robin Powelson, who the Haffkes allegedly accepted for a nanny position at $15/hour for 36 hours per week.
- Gerard charged a $2,106 placement fee on October 3, 2011, based on the referral, which the Haffkes disputed due to no use of services.
- The Haffkes sought a refund of the placement fee; Gerard offered a credit for future services, and credit-card disputes ensued with bank fees involved.
- A bench trial resulted in judgment for the Haffkes; the court found ambiguity in the contract regarding when the fee was due.
- The court of appeals reversed, holding the placement fee due upon acceptance of the referral, and remanded for judgment in Gerard’s favor.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract is ambiguous about fee timing | Gerard argues multiple clauses set the fee due upon referral acceptance. | Haffkes contend fee due only if they used the care provider's services. | Ambiguity exists; intent determines fee timing, but Gerard prevailed on remand. |
| What the contract’s primary intent on fee timing was | Placement fee was due when Powelson was hired or accepted by Haffkes. | Fee due only if services were used by the family. | Contract interpreted to require payment upon acceptance of the referral. |
Key Cases Cited
- Cline v. Rose, 96 Ohio App.3d 611 (Ohio App.3d 1994) (parol evidence to determine intent in ambiguous contracts)
- Hillsboro v. Fraternal Order of Police, 52 Ohio St.3d 174 (Ohio) (ambiguous contract interpretation requires examining intent)
- Malcuit v. Equity Oil & Gas Funds, Inc., 81 Ohio App.3d 236 (Ohio App.3d 1992) (primary rule governs contract construction; parole evidence admissible)
- ABM Farms, Inc. v. Woods, 81 Ohio St.3d 498 (Ohio) (contract interpretation and implied terms in complex agreements)
