Campbell v. 1 Spring, L.L.C.

2020 Ohio 3190, 155 N.E.3d 186
CourtOhio Court of Appeals
DecidedJune 4, 2020
Docket19AP-368
StatusPublished
Cited by18 cases

This text of 2020 Ohio 3190 (Campbell v. 1 Spring, 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
Campbell v. 1 Spring, L.L.C., 2020 Ohio 3190, 155 N.E.3d 186 (Ohio Ct. App. 2020).

Opinion

[Cite as Campbell v. 1 Spring, L.L.C., 2020-Ohio-3190.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Robert W. Campbell, :

Plaintiff-Appellee, : No. 19AP-368 v. : (C.P.C. No. 15CV-9033)

1 Spring, LLC et al., : (REGULAR CALENDAR)

Defendants-Appellants. :

D E C I S I O N

Rendered on June 4, 2020

On brief: Hrabcak & Company, L.P.A., Michael Hrabcak, and Benjamin B. Nelson, for appellee. Argued: Benjamin B. Nelson.

On brief: Law Office of W. Evan Price, II, LLC, and W. Evan Price, II, for appellants. Argued: W. Evan Price, II.

APPEAL from the Franklin County Court of Common Pleas DORRIAN, J. {¶ 1} Defendants-appellants, 1 Spring, LLC ("1 Spring"), James R. Horner, and Samuel Horner (collectively, "appellants") appeal from an order of the Franklin County Court of Common Pleas awarding damages to plaintiff-appellee, Robert W. Campbell, on his claim for breach of contract. For the reasons that follow, we affirm. I. Facts and Procedural History {¶ 2} Appellants appealed a prior judgment in favor of Campbell to this court; in that appeal we found the trial court erred by relying on extrinsic evidence in determining whether the agreement between the parties was ambiguous. We reversed and remanded for further proceedings. Campbell v. 1 Spring, LLC, 10th Dist. No. 18AP-94, 2019-Ohio- 623, ¶ 12. In our prior decision, we set forth the facts underlying the disputed contract: No. 19AP-368 2

James R. Horner and Samuel Horner are members of 1 Spring, which owns the building located at the southwest corner of North High Street and West Spring Street in Columbus, Ohio. On April 20, 2012, 1 Spring entered into a lease with the Lamar Companies ("Lamar") providing for an outdoor advertising structure to be placed on the building ("sign lease"). The sign lease provided that Lamar would pay 1 Spring $80,000.04 per year in monthly installments for a term of ten years. Lamar also held an option to extend the sign lease for an additional ten years after the initial term expired.

Prior to entering the sign lease, 1 Spring had obtained approval from the Columbus Downtown Commission to erect a digital sign on the building. Shortly before entering the sign lease, the Horners became aware that due to the building's location on a state highway it would be necessary to comply with state regulations regarding outdoor advertising. James contacted the Ohio Department of Transportation ("ODOT") and was advised that a sign would not be permitted on the 1 Spring building under the existing rules due to its proximity to other signs in the surrounding area, unless 1 Spring acquired all the existing advertising in the area. The ODOT employee indicated the agency would not grant a variance to allow a sign on the 1 Spring building, but also indicated the Director of ODOT had expressed interest in amending the existing rules to exclude urban business districts from the sign spacing requirements.

A business associate of James recommended he contact Campbell, who was a former chief of staff at ODOT, regarding assistance in obtaining approval for the sign. The Horners and Campbell met on April 23, 2012 to discuss the possibility of Campbell assisting in obtaining approval for the sign and compensation for such assistance. Following the meeting, the parties agreed to memorialize their agreement in writing to establish that Campbell was authorized to represent 1 Spring. The agreement was set forth in the form of a letter to Campbell signed by James as the managing partner of 1 Spring ("the agreement"), providing the following terms:

Samuel and James Horner hereby agree to pay you 10% of the gross receipts ($80K/year) from a lease that has been executed in regards to the above referenced property.

Your compensation shall be $8,000/year during the initial term of ten (10) years. The lease commences at a point in time when the sign has been erected. No. 19AP-368 3

For this compensation, we are "in your hands" to facilitate the proper "permitting issues" needed for the sign with regards to the State of Ohio.

If this is agreeable to you, please sign below and return to me at my email address.

(Joint Ex. No. IV.) A few days later, Campbell added a handwritten amendment to the agreement, providing as follows:

In addition to the above terms and conditions, Samuel and James Horner agree to pay 10% of the gross receipts of the annual negotiated amount with Lamar Companies for the following term of 10 yrs at the end of the original 10 yr agreement. This contract is binding with 1 Spring LLC and heirs and assigns hereto.

(Joint Ex. No. IV.) The Horners initialed this amendment, indicating their approval.

Id. at ¶ 1-4. {¶ 3} On remand, the trial court issued a decision, including findings of fact and conclusions of law, concluding the agreement was a binding contract and certain terms in the agreement were ambiguous. The court further held that Campbell performed under the agreement and appellants breached the agreement by failing to compensate Campbell. The court subsequently issued a final judgment entry, incorporating its findings of fact and conclusions of law, holding appellants liable to Campbell for $51,764.14, plus interest, for the period through June 2019, and 10 percent of future rent revenues received from the sign lease beginning in July 2019, pursuant to the terms of the agreement. II. Assignment of Error {¶ 4} Appellants appeal and assign the following sole assignment of error for our review: The trial court erred by adopting conclusory findings of fact regarding the extrinsic evidence offered to explain ambiguities in the Parties' Contract that were against the manifest weight of the evidence, misinterpreting the contract based on those unsupported findings and entering judgment on Appellee's breach of contract claim based on that misinterpretation. No. 19AP-368 4

III. Analysis A. Standard of Review {¶ 5} The elements of a contract include an offer, acceptance, contractual capacity, consideration, a manifestation of mutual assent, and legality of purpose. You v. Northeast Ohio Med. Univ., 10th Dist. No. 17AP-426, 2018-Ohio-4838, ¶ 19. A plaintiff asserting breach of contract must establish existence of a contract, performance by the plaintiff under the contract, breach by the defendant, and loss or damage to the plaintiff. CosmetiCredit, LLC v. World Fin. Network Natl. Bank, 10th Dist. No. 14AP-32, 2014-Ohio-5301, ¶ 13. "[J]udicial examination of [a] contract begins with the fundamental objective of ascertaining and giving effect to the intent of the parties at the time they executed the agreement." Id. When a contract is not ambiguous, it must be enforced as written. Id. at ¶ 14. {¶ 6} A contract is ambiguous when its meaning cannot be determined from the four corners of the agreement or where the language is susceptible to two or more reasonable interpretations. Covington v. Lucia, 151 Ohio App.3d 409, 2003-Ohio-346, ¶ 18 (10th Dist.). When parties to a contract dispute the meaning of language within the contract, the court must first consider the content within the four corners of the contract. Drs. Kristal & Forche, D.D.S., Inc. v. Erkis, 10th Dist. No. 09AP-06, 2009-Ohio-5671, ¶ 21. If the terms of the contract are clear and precise, it is not ambiguous and the court may not refer to evidence outside the contract to determine the meaning of those terms. Id. However, "[w]hen the language of a contract is unclear or ambiguous, or when the circumstances surrounding the agreement give the plain language special meaning, extrinsic evidence can be used to ascertain the intent of the parties." Id. at ¶ 22.

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 3190, 155 N.E.3d 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-1-spring-llc-ohioctapp-2020.