Blake Homes, Ltd. v. FirstEnergy Corp.

877 N.E.2d 1041, 173 Ohio App. 3d 230, 2007 Ohio 4606
CourtOhio Court of Appeals
DecidedSeptember 7, 2007
DocketNo. L-06-1269.
StatusPublished
Cited by27 cases

This text of 877 N.E.2d 1041 (Blake Homes, Ltd. v. FirstEnergy Corp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blake Homes, Ltd. v. FirstEnergy Corp., 877 N.E.2d 1041, 173 Ohio App. 3d 230, 2007 Ohio 4606 (Ohio Ct. App. 2007).

Opinion

Osowik, Judge.

{¶ 1} This is an appeal from a judgment of the Lucas County Court of Common Pleas, following a jury trial, in which appellants, FirstEnergy Corporation (“FirstEnergy”) and the Toledo Edison Company (“Toledo Edison”), 1 were *234 ordered to pay appellee, Blake Homes, Ltd. (“Blake Homes”), damages in the amount of $217,678.03 for breach of contract. On appeal, appellants set forth the following five assignments of error:

{¶ 2} “1. The award is against the manifest weight of the evidence because Blake Homes failed to mitigate its damages.
{¶ 3} “2. The jury’s finding that the contract continued to be breached each month on this divisible contract after May 10, 2001 is against the manifest weight of the evidence.
{¶ 4} “3. The jury’s finding that a breach occurred each month from May, 2001 through May, 2006 on this divisible contract was against the manifest weight of the evidence where the charges were never presented.
{¶ 5} “4. The jury’s award of damages after Blake became the end user as stated in the contract was against the manifest weight of the evidence.
{¶ 6} “5. The jury’s award of damages after the home was no longer suitable for use as a model home after May 10, 2002 was against the manifest weight of the evidence.”

{¶ 7} This appeal arises out of a longstanding disagreement between the parties as to who is responsible for paying certain expenses for a luxurious, all-electric, “model home” that was built by Blake Homes at the request of Toledo Edison. The relevant circumstances giving rise to the parties’ dispute are as follows.

{¶ 8} On March 12, 1997, Blake Homes and Toledo Edison executed a document titled “Eagles Landing Model Home Project Agreement.” The subject of the agreement was the construction of a model home, to be located at 5110 Eagles Landing in Oregon, Ohio, on subdivision lot number 13 (“Lot 13”), which is owned by Toledo Edison. The agreement stated:

{¶ 9} “WHEREAS, Blake Homes requires several assurances as to the costs associated with the maintenance and demonstration of a geothermal home as a model in a new home development known as Eagles Landing Subdivision; and
{¶ 10} ‘WHEREAS, Toledo Edison desires to make the required assurances as to various costs associated with the demonstration of a geothermal home as a model in a new home development of such a geothermal model;
{¶ 11} “ * * *
{¶ 12} “1. Project Negotiations, Withdrawal, and, Cost Sharing
{¶ 13} “1.1 All project negotiations and subsequent agreements pertaining to the relationship created hereunder must be mutually agreed to, in writing, and appended to this agreement.
*235 {¶ 14} “ * * *
{¶ 15} “1.3. Costs: The following is a list of the costs that are to be assumed and paid by Toledo Edison during the term of this Agreement and/or 2 until the ultimate purchaser of the geothermal model home has taken possession of the home and the home is no longer a model.
{¶ 16} “Banking
{¶ 17} “ * * *
{¶ 18} “ *A11 interest on project.
{¶ 19} “Any costs associated with having the home not sold.
{¶ 20} “Maintenance
{¶ 21} “Cleaning of home when required.
{¶ 22} “Snow removal and ice control.
{¶ 23} “Grass cutting and lawn maintenance.
{¶ 24} “Carpet cleaning if required.
{¶ 25} “Touch up and repainting if required.
{¶ 26} “Repair any damage done to home after completion.
{¶ 27} “Utilities Etc.
{¶ 28} “Electric bills.
{¶ 29} “Security monthly service.
{¶ 30} “Phone line.
{¶ 31} “Cablevision
{¶ 32} “Water bills.
{¶ 33} “Promotions and Advertising
{¶ 34} “Toledo Edison will conduct all necessary advertising and promotion of the geothermal model home. Blake Homes will be recognized in the Advertising and Promotions as the builder of the model home.”

{¶ 35} In addition to the above, paragraph 3.2 of the agreement stated that Blake Homes was to be the owner of the model home. Toledo Edison agreed to deed Lot 13 to Blake Homes upon substantial initiation of construction and promised that “upon sale of the geothermal model home in question and upon buyer taking possession of home, [Blake Homes] will reimburse Toledo Edison for the value of Lot 13, which value will be determined and appended to this *236 agreement prior to construction of the home.” Pursuant to paragraph 3.3, Blake Homes agreed to allow Toledo Edison to have access to the model home “for demonstration purposes.” The last page of the agreement contained a handwritten provision, initialed by representatives of Toledo Edison and Blake Homes, which stated: “Project will remain a model home for a minimum of one year or until sold to end-user.” The agreement was executed by Gray Greulich, on behalf of Toledo Edison, and Robert Dedo, on behalf of Blake Homes.

{¶ 36} For the first year after the agreement was executed, Toledo Edison made regular monthly payments to Blake Homes for the above-listed monthly expenses. However, in November 1998, Toledo Edison stopped making those payments. On August 19,1999, Blake Homes filed suit against Toledo Edison to recover the unpaid monthly fees (“first lawsuit”). On May 22, 2001, the case was tried to a jury. At trial, Robert Dedo testified as to the costs associated with the model home and his attempts to market the home for sale. Dedo testified that pursuant to the agreement, Toledo Edison was to pay monthly expenses for the home for a minimum of one year, or until it was sold.

{¶ 37} In addition to Robert Dedo’s testimony, various other witnesses testified as to the financing of the project, interior design of the model home, and Toledo Edison’s involvement in marketing the home before, during, and after its construction. Various realtors then testified as to its fair market value. Finally, Greulich testified that the object of the project was to showcase electric technology and to allow Blake Homes to make a profit upon the sale of the model home. Greulich also stated that nothing in the agreement limited Toledo Edison’s obligation for monthly expenses to only one year.

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Cite This Page — Counsel Stack

Bluebook (online)
877 N.E.2d 1041, 173 Ohio App. 3d 230, 2007 Ohio 4606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blake-homes-ltd-v-firstenergy-corp-ohioctapp-2007.