Columbia Dev. Corp. v. Krohn

2014 Ohio 5607
CourtOhio Court of Appeals
DecidedDecember 19, 2014
DocketC-130842
StatusPublished
Cited by9 cases

This text of 2014 Ohio 5607 (Columbia Dev. Corp. v. Krohn) 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
Columbia Dev. Corp. v. Krohn, 2014 Ohio 5607 (Ohio Ct. App. 2014).

Opinion

[Cite as Columbia Dev. Corp. v. Krohn, 2014-Ohio-5607.]

ENTERED IN THE COURT OF APPEALS FIRST DEC 19 2014 APPELLATE DISTRICT OF OHIO

HAMILTON COUNTY

COLUMBIA DEVELOPMENT CORPORATION, CASE NO. C1300842

Plaintiff-Appellee, OPINION

- vs-

MARC KROHN, RECEIVER, et al.,

Defendants-Appellants.

CIVIL APPEAL FROM HAMILTON COUNTY COURT OF COMMON PLEAS . Case No. A1201721

Frost Brown Todd, LLC, Douglas R. Dennis, James C. Frooman and Ali Razzaghi, 3300 Great American Tower, 301 East Fourth Street, Cincinnati, Ohio 45202, for plaintiff-appellee

Barrett & Weber, LPA, C. Francis Barrett, 500 Fourth & Walnut Centre, 105 East Fourth Street, Cincinnati, Ohio 45202, for plaintiff-appellee

Michael R. Schmidt and RobertS. Rubin, 250 East Fifth Street, Suite 2350, Cincinnati, Ohio 45202, for defendants-appellants

Miller Canfield Paddock & StonPLC, Paul E. Per \and Matthew C. Steele, 511 Walnut Street, Suite 1900, Cincinnati, Ohio 45202, for defend,nts-appellants

M. POWELL, J.

{1} Defendants-appellants, NNN 250 East Fifth Street, LLC and 34 related entities

(NNN), by and through their Receiver, Marc A. Krohn, appeal a decision of the Hamilton Hamilton C1300842

County Court of Common Pleas granting partial summary judgment in favor of plaintiff-

appellee, Columbia Development Corporation (Columbia), on NNN's counterclaim for tortious

interference with contract. For the reasons stated below, we affirm the decision of the trial

court.

{2} Columbia is the title holder and ground landlord for the land on which the

Chiquita Center (Building) is located. NNN is the current ground tenant. The landlord/tenant

relationship between the parties is governed by a lease entered into by NNN's predecessor-

in-interest and Columbia on April29, 1982 (Ground Lease). The Ground Lease provides that

NNN may sublease its interest in the Building.and that NNN and subtenants may install

signage on the Building subject to compliance with applicable regulations and laws.

{3} On May 27, 2005, NNN entered into a sublease agreement with Deloitte LLP

(Deloitte), whereby Deloitte became a tenant occupying four floors of the Building (Deloitte

Lease). The lease gave Deloitte exclusive signage rights. On December 2, 2011, the

Deloitte Lease was amended by a letter (Letter Agreement). The Letter Agreement

preserved Deloitte's signage rights in conjunction with Deloitte's agreement to permit a new

Building tenant, The Nielsen Company (Nielsen), to erect a sign on the east fagade of the

Building. Pursuant to the Letter Agreement, Deloitte was entitled to offsets in rent in the

event that installation of a Nielsen sign on the Building would prevent installation of a sign on.

the Building by Deloitte (Rent Credit Provision).

{4} In 2012, Nielsen began the process of erecting its sign on the Building. To

erect the sign, Nielsen and NNN sought a Notwithstanding Ordinance for a variance from the

Cincinnati Zoning Code 1411-39(f), which provides that only the "principal occupant" of a

building, as determined by the building owner, may display a sign. NNN, acting as owner of

the Building, determined that Nielsen was not the "principal occupant." Therefore, a

Notwithstanding Ordinance was sought so that Nielsen would be able to erect its sign. Hamilton C1300842

Nielsen was granted a Notwithstanding Ordinance and erected a sign on the east fa<;:ade of

the Building in March 2012.

{'if 5} In response to Nielsen's erection of the sign, Columbia filed a lawsuit against

NNN and the City of Cincinnati seeking a temporary restraining order, preliminary injunction,

and permanent injunction to enjoin the display of Nielsen's sign on the Building (Nielsen

Injunction Motion). Deloitte was not a party to this lawsuit.

{'if 6} NNN and Columbia engaged in discovery regarding the Nielsen Injunction

Motion. During discovery, Columbia subpoenaed Deloitte for information related to Deloitte's

signage rights on the Building. On April5, 2012, Mr. Ronald Joseph, president of Columbia,

was deposed. During the deposition, Mr. Joseph stated that he objects to "anyone putting

signage on .the building" because in his opinion "it degrades the value of the building * * * it

degrades the building from the neighborhood that we occupy throughout the area." After the·

deposition was completed, Deloitte provided a copy of the Deloitte Lease and a copy of the

Letter Agreement, with the Rent Credit Provision redacted.

{'if 7} On May 3, 2012, Columbia's counsel sent a letter to NNN's counsel which

reiterated Columbia's objection to the Nielsen sign. The letter stated that Columbia objected

to any signage installed by other tenants and intended to "vigorously litigate" this issue.

Columbia copied the letter to Deloitte's counsel. Due to this letter, Deloitte delayed the

planned installation of its sign on the Building.

{'if8} On May 17, 2012, NNN filed a counterclaim against Columbia alleging that

Columbia had tortiously interfered with the Letter Agreement between NNN and Deloitte

regarding Deloitte's signage rights at the Building. Attached to the counterclaim was an un-·

redacted copy of the Letter Agreement disclosing the Rent Credit Provision to Columbia.

{'if 9} On June 18, 2012, the trial court denied the Nielsen Injunction Motion. The

court reasoned that Nielsen was permitted to erect the sign because Nielsen and NNN

- 3- Hamilton C1300842

sought a Notwithstanding Ordinance for a variance from Section 1411-39(f) of the Zoning

Code. In so holding, the court noted that while the issue of whether Columbia or NNN owns . the Building is "hotly contested," ownership is not determinative because the Ground Lease

authorized NNN to seek a Notwithstanding Ordinance in the name of Columbia. Therefore,

Columbia did not have standing to contest this action because it had "bargained away any

rights with respect to signage issues in exchange for significant ground rent."

{10} NNN joined Deloitte as a party to the action on June 21, 2012. On June 29,

2012, Deloitte notified Columbia of its intention to install its sign the following week. On July

2, 2012, Columbia sent a letter to the City of Cincinnati referencing Section 1411-39(f) of the

Zoning Code which discusses signage rights of a building's principal occupant and declaring

itself the owner of the Building, the "principal occupant" ofthe Building, and revoking all prior

designations of "principal occupant."

{11} On July 3, 2012, Columbia filed a motion for a temporary restraining order and

a preliminary injunction to prevent the erection of the Deloitte sign (Deloitte Injunction

Motion). Columbia's motion for a temporary restraining order was granted on July 9, 2012.

However, the trial court ultimately denied the Deloitte Injunction Motion on December 10,

2012.

{12} In denying the Deloitte Injunction Motion, the court addressed the issue of

ownership of the Building and determined that for purposes of Section 1411-39(f), Columbia

was not the owner of the Building. Therefore, Columbia's action in declaring itself owner of

the Building and the "principal occupant" under Section 1411-39(f) was not valid. Instead,

NNN, as owner of the Building, could determine Deloitte is the "principal occupant" and

permit it to erect its sign.

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2014 Ohio 5607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-dev-corp-v-krohn-ohioctapp-2014.