2020 Ohio 2809
Ohio Ct. App.2020Background:
- NLS quoted road salt to the City of Akron in Sept. 2018, providing two quotes (salt on hand and salt to be procured from Egypt).
- After the City’s purchasing agent indicated the City would take the salt, NLS purchased imported salt and two dump trucks in reliance on that representation.
- The City later failed to pay and declined the salt; NLS resold some salt at a loss and sued for breach of contract and promissory estoppel.
- The trial court granted judgment on the pleadings for the City on the promissory estoppel claim, concluding procurement of road salt is a governmental function and promissory estoppel is inapplicable to political subdivisions performing governmental functions.
- NLS dismissed its breach claim and appealed, arguing procurement of road salt (and snow/ice removal support) is a proprietary—not governmental—function.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether procurement of road salt is a governmental function such that promissory estoppel cannot be invoked against the city | Procurement for snow/ice removal is proprietary because municipalities have no liability for failing to remove snow/ice; buying salt is like private actors removing snow and ice | Road maintenance (including snow/ice removal) is a governmental function under R.C. §2744.01; acquiring supplies to perform that function is likewise governmental; Hortman bars promissory estoppel against political subdivisions performing governmental functions | Procurement of road salt is a governmental function; promissory estoppel claim is precluded; judgment affirmed |
Key Cases Cited
- Hortman v. Miamisburg, 110 Ohio St.3d 194 (Ohio 2006) (doctrine of promissory estoppel inapplicable against political subdivisions engaged in governmental functions)
- State ex rel. Upper Scioto Drainage & Conservancy Dist. v. Tracy, 125 Ohio St. 399 (Ohio 1932) (State may be estopped when performing proprietary functions)
- Howard v. Miami Twp. Fire Div., 119 Ohio St.3d 1 (Ohio 2008) (political subdivisions not liable under R.C. §2744.02(B)(3) for failing to remove naturally accumulating snow/ice)