Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C.

2024 Ohio 2339, 246 N.E.3d 626
CourtOhio Court of Appeals
DecidedJune 18, 2024
Docket22AP-718
StatusPublished
Cited by2 cases

This text of 2024 Ohio 2339 (Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C.) 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
Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024 Ohio 2339, 246 N.E.3d 626 (Ohio Ct. App. 2024).

Opinion

[Cite as Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024-Ohio-2339.]

COURT OF APPEALS FRANKLIN COUNTY, OHIO TENTH APPELLATE DISTRICT

CALYPSO ASSET MANAGEMENT, : JUDGES: LLC, et al., : Hon. William B. Hoffman, P.J. : Hon. John W. Wise, J. Plaintiff - Appellees/Cross-Appellant : Hon. Craig R. Baldwin, J. : : Ohio Supreme Court

: 180 INDUSTRIAL, LLC., et al., : Case No. 22AP-718

Defendant - Appellant/Cross-Appellee :OPINION

CHARACTER OF PROCEEDING: Appeal from the Franklin County Court of Common Pleas, Case No. 15- CV-05-0446

JUDGMENT: Affirmed

DATE OF JUDGMENT: June 18, 2024

APPEARANCES:

For Plaintiff-Appellee/Cross- Appellant For Defendant-Appellant/Cross-Appellee

RICK L. BRUNNER DAVID A. WALLACE PATRICK M. QUINN Carpenter Lipps & Leland LLP Brunner Quinn 280 Plaza, Suite 1300 5001 Horizons Drive, Suite 209 280 North High Street Columbus, Ohio 43220 Columbus, Ohio 43215

Appellee-Alterra Real Estate Advisors, LLC

BARRY WOLINETZ Wolinetz, Horvath & Brown, LLC 250 Civic Center Drive, Suite 220 Columbus, Ohio 43215 [Cite as Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024-Ohio-2339.] Franklin County, Case No. 22AP-718 2

Baldwin, J.

{¶1} This case arises from a failed business transaction between Defendant-

Appellant/Cross-Appellee 180 Industrial, LLC (“180”), Plaintiff-Appellee/Cross-Appellant

Calypso Asset Management, LLC (“Calypso”), and Plaintiff-Appellee Alterra Real Estate

Advisors, LLC (“Alterra”).

STATEMENT OF THE FACTS AND THE CASE

{¶2} This matter is on appeal for the fourth time. The most recent appellate

opinion, Calypso Asset Management, LLC v. 180 Industrial, LLC, 2021-Ohio-1171 (10th

Dist.) “CAM III”, succinctly sets forth the pertinent facts as follows:

CAM and 180 have been in a dispute regarding a failed sale-

leaseback deal since 2015. CAM intended to purchase a logistics company

and the property used to operate the company from defendant Calypso

Distribution Services, Ltd., (“Calypso”). CAM sought to finance the

transaction by entering into a sale-leaseback agreement for the property with

180. CAM hired plaintiff-appellee/cross-appellant Alterra Real Estate

Advisors, LLC, (“Alterra”) as a real-estate broker for the sale-leaseback

transaction.

During the sale-leaseback agreement's due-diligence period, 180

sent CAM a contingency letter which identified numerous improvements that

would need to be made before closing. When the letter failed to yield a

satisfactory response, 180 attempted to restructure the terms of the sale-

leaseback agreement. CAM rejected the proposed restructuring, and the

deal fell apart. [Cite as Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024-Ohio-2339.] Franklin County, Case No. 22AP-718 3

In late 2014, CAM and 180 entered into a settlement agreement. The

settlement agreement discharged any claims arising from or related to the

sale-leaseback transaction. The settlement agreement also contained a fee-

shifting provision, which provided: “If any action is brought to enforce this

Agreement, or is brought in connection with any dispute arising out of this

Agreement or the claims that are the subject of this Agreement, the

prevailing Party shall be entitled to recover damages, attorney's fees, and

other costs incurred in such litigation * * * [.]” Alterra was not a party to the

settlement agreement.

After CAM and 180 executed the settlement agreement, Calypso

entered into a similar sale-leaseback transaction with Triple Net

Acquisitions, LLC, (“Triple *796 Net”). Although the exact affiliation is

unclear from the record, Triple Net and 180 shared a chief operating

officer—Bryan Norton. In spring 2015, CAM discovered the sale-leaseback

transaction between Calypso and Triple Net, and filed suit with Alterra

against 180.1 CAM contended that the settlement agreement resulted from

fraudulent inducement, and thus, was void. CAM also asserted a

substantive claim of fraud, and with Alterra, asserted claims for breach of

contract and tortious interference with a business and contractual

relationship.

In July 2015, 180 moved for summary judgment. On March 29, 2016,

the trial court granted the motion for summary judgment. The court found that

180 had not induced CAM into entering the settlement agreement, and thus, it

was enforceable. Accordingly, the court found that the settlement [Cite as Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024-Ohio-2339.] Franklin County, Case No. 22AP-718 4

agreement barred CAM's claims against 180. The court also found that

Alterra had no cognizable relationship with 180 to support its breach-of-

contract and tortious-interference claims.

The trial court concluded that 180 was the prevailing party and could

move for an award of attorney fees under the settlement agreement's fee-

shifting provision. 180 subsequently moved for $50,563.05 in attorney fees

and costs. 180 supported its request with copies of billing records and

expert testimony. Following a fees hearing, the trial court awarded

$30,599.44 in attorney fees and costs. Dissatisfied with the amount

awarded, 180 moved for reconsideration. After the trial court denied

reconsideration, 180 appealed.

That first appeal was ultimately dismissed on jurisdictional grounds.

Following briefing and oral arguments on the merits, this court sua sponte

found that the appeal was premature. Prior to filing the first appeal, 180 had

moved for sanctions under R.C. 2323.51. When the first appeal was pending,

the motion for sanctions remained pending in the trial court. This court found

that based on the case's unusual posture, the finality of the trial court's order

was “less clear.” However, the court decided, “As the current case is postured,

principles of judicial economy and policy considerations that disfavor

piecemeal and duplicative appeals support a finding that the current appeal

is premature[.]” Thus, this court dismissed the appeal for lack of a final

appealable order.

In its motion for sanctions, 180 argued that CAM, Alterra, and their

shared counsel had engaged in frivolous conduct under R.C. 2323.51 by [Cite as Calypso Asset Mgt., L.L.C. v. 180 Indus., L.L.C., 2024-Ohio-2339.] Franklin County, Case No. 22AP-718 5

filing the underlying complaint. 180 sought an order requiring CAM, Alterra,

and their counsel to jointly and severally pay the attorney fees and costs

incurred by 180. 180 again supported its request with copies of billing

records and expert testimony regarding the reasonableness of the fees

sought. Following a sanctions hearing, the magistrate found that CAM,

Alterra, and their counsel did not engage in frivolous conduct, and denied

180's motion for sanctions. 180 objected. The trial court agreed with the

magistrate's conclusions and overruled 180's objections. Having resolved

the motion for sanctions, 180 again appealed.

In the second appeal, this court addressed the award of attorney fees

which 180 claimed to have been arbitrarily determined and unreasonably low.

Calypso Asset. Mgt., LLC v. 180 Indus., LLC, 2019-Ohio-2, 127 N.E.3d 507,

¶ 28 (10th Dist.) (“Calypso II”). We found that “the trial court did not perform

the first step of the lodestar method,” and instead, “summarily concluded” that

$30,000 was reasonable. Id. at ¶ 30. This court also addressed the denial of

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Cite This Page — Counsel Stack

Bluebook (online)
2024 Ohio 2339, 246 N.E.3d 626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calypso-asset-mgt-llc-v-180-indus-llc-ohioctapp-2024.