CIG Toledo, L.L.C. v. NZR Retail of Toledo, Inc.

2019 Ohio 160
CourtOhio Court of Appeals
DecidedJanuary 18, 2019
DocketL-17-1282
StatusPublished
Cited by1 cases

This text of 2019 Ohio 160 (CIG Toledo, L.L.C. v. NZR Retail of Toledo, Inc.) 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
CIG Toledo, L.L.C. v. NZR Retail of Toledo, Inc., 2019 Ohio 160 (Ohio Ct. App. 2019).

Opinion

[Cite as CIG Toledo, L.L.C. v. NZR Retail of Toledo, Inc., 2019-Ohio-160.]

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT LUCAS COUNTY

CIG Toledo LLC Court of Appeals No. L-17-1282

Appellee Trial Court No. CI0201603616

v.

NZR Retail of Toledo, Inc., et al. DECISION AND JUDGMENT

Appellant Decided: January 18, 2019

*****

Jonathan M. Hanna, for appellee.

Alan Kirshner, for appellants.

OSOWIK, J.

{¶ 1} This is an appeal from a judgment of the Lucas County Court of Common

Pleas which granted appellee’s motion for reasonable attorney’s fees. For the reasons set

forth below, this court affirms, in part, and reverses, in part, the judgment of the trial

court.

{¶ 2} On July 26, 2016, plaintiff-appellee CIG Toledo, LLC filed a landlord’s

complaint for eviction, breach of the lease, breach of guaranties, and unjust enrichment against its tenant, defendant-appellant NZR Retail of Toledo, Inc., and co-defendants

Naqid Hasan, Yazeed Qaimari and Mona Qaimari. Appellee alleged appellant breached

various renovation and financial obligations under a 20.33-year commercial lease of real

property located in Toledo, Lucas County, Ohio. Appellee alleged the lease required

appellant to “pay all of Plaintiff’s costs and expenses, including reasonable attorneys’

fees, incurred by Plaintiff in enforcing the Lease.” The relief appellee sought was

immediate possession of the premises and damages “in excess of $25,000.00, exclusive

of interest, penalties, attorneys’ fees and legal expenses” now and in the future.

{¶ 3} Following a period of pleadings involving various answers and

counterclaims among the parties and the addition of Hemant Chhajwani, appellee’s

manager, as an “additional counterclaim defendant,” the parties reported to the trial court

they reached a settlement, and a settlement hearing was held on September 21, 2016. The

trial court stated in its judgment entry journalized on September 28, 2016, in part:

Matter proceeded on the record where the parties represented to the

court that their differences have been resolved. Remaining between the

parties is the sole issue of attorney fees. The attorneys further represented

they are working toward resolution of this matter. Accordingly, this case is

dismissed without prejudice, with the court retaining jurisdiction to enforce

the settlement agreement reached between the parties * * *.

{¶ 4} Then on May 15, 2017, appellee moved the trial court for an order to enforce

the settlement agreement and an order for $21,921.13 plus ongoing attorney’s fees and

2. expenses. Appellee argued appellant and the co-defendants acknowledged their liability

for appellee’s attorney’s fees and expenses “incurred in administering and enforcing the

subject lease, as expressly provided by the lease.” Appellee further argued the

complaints and counterclaims were all dismissed on the agreement by the parties to

“discuss the amount of such costs post-dismissal.” Appellee conceded the reason for the

post-dismissal negotiation was because at the time of the September 21, 2016 settlement

hearing, appellant and the co-defendants had not yet received for review any of appellee’s

attorney invoices. Appellee argued now they have and refuse to pay in full.

{¶ 5} Appellee supported its claim for $21,921.13 in attorney’s fees and expenses

with an affidavit by Mr. Chhajwani, “an authorized member and manager” of appellee,

averring from personal knowledge that, among other matters, retaining Mr. Hanna since

May 2015 was necessary to ensure appellant “submitted the required documentation to

support its payment requests and that other Lease requirements were being observed.”

Mr. Chhajwani further averred “much of the fees and expenses incurred by Plaintiff in

this matter were the direct result of” appellant’s actions and that Mr. Hanna “has

provided highly competent and cost-effective representation in this matter.” Appellee

also supported its claim for $21,921.13 in attorney’s fees and expenses with an affidavit

by an expert witness attorney whose opinion was Mr. Hanna’s attorney’s fees were

reasonable.

{¶ 6} Appellant opposed appellee’s motion, arguing the commercial lease

provision for unilateral fee shifting relied upon by appellee, paragraph 4, was void and

3. unenforceable. Appellant further argued fee shifting was not specifically negotiated.

Finally, appellant argued appellee’s fees were unenforceable because they were “grossly

excessive.” On October 5, 2017, appellee filed a supplemental affidavit by Mr.

Chhajwani averring, among other matters, that Mr. Hanna’s attorney’s fees and expenses

to date were now $26,142.13.

{¶ 7} The trial court held a motion hearing on October 5, 2017. The trial court

stated in its judgment entry journalized on October 10, 2017, in part:

Upon review, the Court notes that the parties previously represented

the matter as settled, with the exception of the dispute over attorney fees

owed pursuant to the lease. Accordingly, it is clear that plaintiff does not

seek to enforce the settlement, but is instead proceeding for the Court’s

determination of a reasonable award of attorney fees. The Court, therefore,

deems the present Motion to Enforce Settlement as a Motion for Attorney

Fees.

{¶ 8} Then as journalized on October 20, 2017, the trial court issued its order on

appellee’s motion in which it made a number of findings, including:

It is clear from the record that Defendants acknowledged that

Plaintiff is entitled to fees in connection with enforcement of the Lease, and

filing the eviction proceedings constituted enforcement of the Lease [under

paragraph 31]. * * * Accordingly, all that remains for determination is the

reasonableness of the fee award sought. * * * It is clear that the provisions

4. in the parties’ agreements [the commercial lease and personal guaranties]

limit an award of reasonable fees to actions taken to enforce the Lease.

* * * Upon due consideration of the Motion of Plaintiff, the Opposition

filed by Defendants, the argument of counsel, the record, and applicable

law, the Court finds that an award of attorney fees is proper based on the

enforceable terms within the Lease and Guaranties. Having carefully

reviewed the invoices and affidavits, and consistent with the terms of the

Lease and Guaranties, the Court finds the amount of $16,866.00 to be the

reasonable and appropriate award of attorneys’ fees and costs, expended in

enforcing the parties’ Lease and Guaranties, as itemized in the Court’s

exhibit attached to this entry.

{¶ 9} The trial court’s exhibit attached to its order stated the following:

Date Invoice # Firm Amount 1 June 11, 2015 1536 Semro, Henry & Spinazze Ltd. $2,575.00 2 July 2, 2015 1600 Semro, Henry & Spinazze Ltd. $569.25 3 August 28, 2015 1729 Semro, Henry & Spinazze Ltd. $2,121.75 4 March 17, 2016 2027 Brenda A. Ray Law Offices, $925.00 Ltd. 5 April 1, 2016 4347 Brenda A. Ray Law Offices, $525.00 Ltd. 6 May 25, 2016 None Hanna & Hanna $975.00 7 June 16, 2016 None Hanna & Hanna $1,250.00 8 July 28, 2016 None Hanna & Hanna $3,975.00 9 August 31, 2016 None Hanna & Hanna $2,200.00 10 September 30, 2016 None Hanna & Hanna $1,750.00 TOTAL $16,866.00

5. {¶ 10} None of the three co-defendant guarantors appealed the trial court’s order.

Appellant filed this appeal setting forth two assignments of error:

I.

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Cite This Page — Counsel Stack

Bluebook (online)
2019 Ohio 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cig-toledo-llc-v-nzr-retail-of-toledo-inc-ohioctapp-2019.