Brownfield Restoration Group, L.L.C. v. Trickett

2018 Ohio 4473, 122 N.E.3d 570
CourtOhio Court of Appeals
DecidedNovember 5, 2018
DocketNO. 2018-P-0025
StatusPublished
Cited by3 cases

This text of 2018 Ohio 4473 (Brownfield Restoration Group, L.L.C. v. Trickett) 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
Brownfield Restoration Group, L.L.C. v. Trickett, 2018 Ohio 4473, 122 N.E.3d 570 (Ohio Ct. App. 2018).

Opinion

DIANE V. GRENDELL, J.

{¶ 1} Defendant/third party plaintiff-appellant, Howard J. Trickett, appeals from the judgment of the Portage County Court of Common Pleas, granting judgment in favor of plaintiff-appellee, Brownfield Restoration Group (BRG), on its claim for Breach of Contract, and dismissing his counterclaim for Fraudulent Inducement. The issues to be determined by this court are whether a trial court errs in finding a Breach of Contract when a party fails to supply documentation necessary for the opposing party to complete its obligations and whether it is Fraudulent Inducement for a contract to include potentially conflicting terminology regarding the services to be provided when such services are fully described within the contract. For the following reasons, we affirm the decision of the lower court.

{¶ 2} On October 8, 2013, BRG, a company that performs environmental site assessments and property restoration services, filed a Complaint against Trickett in the Portage County Municipal Court, Ravenna Division, for Breach of Contract. The Complaint alleged that BRG had entered a contract with Trickett to perform actions assessing property owned by Trickett's corporation and apply for state funding but that Trickett instructed BRG not to proceed and refused to make payment. BRG sought damages of $5,500 for the portion of the contract already completed.

{¶ 3} Trickett filed an Amended Answer on February 19, 2015, asserting, inter alia, the defense of breach of contract by BRG. He filed a Second Amended Answer with Counterclaim and Third-Party Complaint on March 30, 2015. In the Counterclaim/Third-Party Complaint, he alleged that BRG and third-party defendant-appellee, Jim Smith, the owner of BRG, committed Fraudulent Inducement, asserting he was misled about whether BRG would seek and receive funding to clean up his property.

{¶ 4} An Order Granting Motion to Transfer was filed on March 31, 2015, transferring the case to the Portage County Court of Common Pleas.

{¶ 5} BRG and Smith filed a Reply to the Counterclaim and Answer of Third-Party Defendant on May 11, 2015. BRG filed a First Amended Complaint on August 17, 2015. BRG and Smith subsequently filed a Motion for Summary Judgment, which was denied by the trial court.

{¶ 6} A trial was held before a magistrate on December 14-15, 2016. The following pertinent testimony and evidence were presented:

{¶ 7} Jim Smith is the owner of Brownfield Restoration Group, which focuses on the revitalization of "brownfield" properties, which are typically commercial properties contaminated from past use. According to Smith, the assessment and cleanup of such properties is often funded by a State of Ohio program called "Clean Ohio," which transitioned into a program called "Jobs Ohio," around 2013 to 2014.

{¶ 8} Smith described the process of funding and completing a cleanup under this program. According to Smith, and consistent with the presentation of Clean Ohio documents, the first step in the process of receiving funding for a brownfield property cleanup is completing Phase I, which involves performing historical research and site inspection of the property. BRG typically charges the applicant/property owner approximately $5,000-6,000 for a Phase I assessment. After Phase I is completed, an entity could apply to Clean Ohio for funding for a Phase II assessment, which is more costly, extensive and involves sampling of soil, ground water, and vapor. Information obtained in Phase II is used to complete a Clean Ohio application for cleanup funding.

{¶ 9} In 2012, Smith and BRG began working with Trickett, who he understood to be interested in running a pallet manufacturing facility on a Portage County brownfield property, a former rubber manufacturing facility in "complete disrepair."

{¶ 10} Smith testified that BRG had entered a contract with Trickett requiring BRG to perform a Phase I assessment and assist in seeking Clean Ohio funding for the Phase II assessment. He argued that there was no intent to enter into a contract for the cleanup phase, although BRG would have been willing to proceed with cleanup assistance in a subsequent agreement.

{¶ 11} The proposal, incorporated into the contract executed by Trickett on October 24, 2012, provided, in pertinent part:

Brownfield Restoration Group, LLC (BRG) has prepared this proposal to perform a Voluntary Action Program (VAP) Phase I Property Assessment and prepare an application for Clean Ohio funding for remediation of the above referenced property. * * * The specific scope of work that is the basis of this proposal is provided in the following summaries.

{¶ 12} Following this provision was a list of five tasks. Tasks 1 through 4 provided for: "oversight of the Phase I assessment work * * * to facilitate preparation of the Clean Ohio application"; a review of background records and databases "to develop a comprehensive environmental history of the property usage as part of the Phase I Property Assessment process"; a "Phase I Site Inspection" to document the condition of the site; and preparation of a "Phase I Property Assessment report." Finally, Task 5 provided for "Clean Ohio Application Preparation":

This task will entail working with the County and Mr. Trickett to compile the pre-requisite SABR (Site Assessment and Brownfield Revitalization) application and the grant application. BRG will be responsible for the environmental portions of the Clean Ohio application and rely on Mr. Trickett and the County for other required documentation (e.g., resolutions, tax disclosure forms, etc.).

{¶ 13} Smith testified that, as of the date the contract was signed by Trickett in October 2012, Portage County was eligible for Clean Ohio funding pursuant to a map published by the State of Ohio, although Portage County was removed from that funding in January 2013.

{¶ 14} Following the execution of the contract, BRG assisted in drafting a letter of interest to Clean Ohio from Portage County on October 29, 2012, explaining that Trickett was seeking to create a facility for his company, Enviropak, which produces and sells plastic pallets. This letter was signed by Todd Peetz, the director of the Portage County Regional Planning Commission, as county involvement is necessary to receive Clean Ohio funding. In December 2012, Smith was in e-mail communication with personnel from Clean Ohio regarding the proposed project.

{¶ 15} The Phase I assessment, which compiled various documents relating to the history and physical state of the property, was completed in January 2013 and was "three to four inches thick." Following that assessment, a scope of services and cost estimate to complete the Phase II Assessment was also completed, which summarized the work to be done in Phase II. Smith testified that the Phase II assessment may cost around $250,000.

{¶ 16} Pursuant to Smith, a meeting was held on January 18, 2013, including Peetz, Trickett, and representatives from Clean Ohio. At that meeting, Trickett stated for the first time that he wanted to make the site a rail depot. According to Smith, a Clean Ohio representative, Patricia Beard, stated that she would need a business plan in order to consider any cleanup funding for the railroad project. Around the time of this meeting, Smith saw that Portage County was no longer on the map for counties eligible for funding under Clean Ohio. Smith did not believe this would stop the project as there were other ways to seek funding.

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Bluebook (online)
2018 Ohio 4473, 122 N.E.3d 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brownfield-restoration-group-llc-v-trickett-ohioctapp-2018.