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2021 Ohio 1063
Ohio Ct. App.
2021
Read the full case

Background

  • Landlord Anthony and Frank Wroblesky leased commercial premises to tenants Renza Hughley, Jr. and Tom Dyson beginning December 1, 2017; rent was $1,750 monthly plus taxes and insurance due on the first of each month.
  • The lease authorized use “exclusively as a restaurant and bar” and required the tenant to procure any licenses and permits necessary for the tenant’s use.
  • The lease contains a force majeure clause that expressly excludes the tenant’s obligation to pay rent and other charges from being excused by governmental restrictions or other causes beyond control.
  • Tenants paid December 2017 rent and some later payments but defaulted; landlords sued for breach of lease and sought damages for unpaid rent, taxes, and insurance.
  • Tenants defended that issuance of an Ohio liquor permit was a condition precedent to enforcement and asserted defenses of frustration of purpose and impracticability due to government action; trial court granted summary judgment to landlords for $24,709.86; tenants appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Condition precedent Lease contains no condition — rent due during the lease term and tenant must obtain permits Enforcement should be conditioned on issuance of liquor permit No condition precedent: lease language shows rent obligations began Dec. 1, 2017 and contained no permit-contingent payment clause.
Frustration of purpose Doctrine not applicable; lease allows restaurant use without liquor and force majeure carves out rent Lack of liquor permit defeated the lease’s principal purpose (operating a bar) Court declined to adopt frustration doctrine here; even if available, tenants failed to show total frustration, the lease contemplated restaurant/bar use, and risk of permit delay was allocated to tenant.
Impracticability due to government action Parties allocated risk of permit delay to tenant via lease and force majeure carve-out Government delay in issuing permit made performance impracticable Impracticability defense fails: court held government interference did not excuse payment because lease placed the risk on the tenant.

Key Cases Cited

  • Mumaw v. W. & S. Life Ins. Co., 97 Ohio St. 1, 119 N.E. 132 (Ohio 1917) (defines condition precedent and clarifies intent is determined from the entire contract)
  • Dresher v. Burt, 75 Ohio St.3d 280, 662 N.E.2d 264 (Ohio 1996) (summary judgment movant’s initial burden to point to evidentiary material)
  • Mitseff v. Wheeler, 38 Ohio St.3d 112, 526 N.E.2d 789 (Ohio 1988) (nonmoving party’s burden under summary judgment rules)
  • Security Sewage Equip. Co. v. McFerren, 14 Ohio St.2d 251, 237 N.E.2d 898 (Ohio 1968) (risk of obtaining governmental license rests with party contracting to render performance requiring such license)
  • Chef Italiano Corp. v. Kent State Univ., 44 Ohio St.3d 86, 541 N.E.2d 64 (Ohio 1989) (final-judgment and appealability principles)
Read the full case

Case Details

Case Name: Wroblesky v. Hughley
Court Name: Ohio Court of Appeals
Date Published: Mar 31, 2021
Citations: 2021 Ohio 1063; 169 N.E.3d 709; 2020-T-0044
Docket Number: 2020-T-0044
Court Abbreviation: Ohio Ct. App.
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    Wroblesky v. Hughley, 2021 Ohio 1063