Grande Arcade, Ltd. v. Grand Arcade Condominium Owners' Assn., Inc.

2017 Ohio 2760
CourtOhio Court of Appeals
DecidedMay 11, 2017
Docket104890
StatusPublished
Cited by4 cases

This text of 2017 Ohio 2760 (Grande Arcade, Ltd. v. Grand Arcade Condominium Owners' Assn., 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
Grande Arcade, Ltd. v. Grand Arcade Condominium Owners' Assn., Inc., 2017 Ohio 2760 (Ohio Ct. App. 2017).

Opinion

[Cite as Grande Arcade, Ltd. v. Grand Arcade Condominium Owners' Assn., Inc., 2017-Ohio-2760.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 104890

GRAND ARCADE, LTD. PLAINTIFF-APPELLANT

vs.

GRAND ARCADE CONDOMINIUM OWNERS’ ASSOCIATION, INC. DEFENDANT-APPELLEE

JUDGMENT: AFFIRMED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-14-833375

BEFORE: E.T. Gallagher, J., Kilbane, P.J., and Stewart, J.

RELEASED AND JOURNALIZED: May 11, 2017 ATTORNEYS FOR APPELLANT

Michael D. Linn Thomas Owen Powers Friedman Linn, P.L.L. 23240 Chagrin Blvd., Suite 180 Cleveland, Ohio 44122

ATTORNEYS FOR APPELLEE

Robert E. Kmiecik Joseph E. DiBaggio Kaman & Cusimano, L.L.C. 50 Public Square, Suite 2000 Cleveland, Ohio 44113

Continental Management Co., pro se C/O Stat. Agt. John G. Moir 2012 West 25th Street, Suite 810 Cleveland, Ohio 44113 EILEEN T. GALLAGHER, J.:

{¶1} Plaintiff-appellant, Grand Arcade, Ltd. (“Appellant”), appeals an order

granting summary judgment in favor of defendant-appellee, Grand Arcade Condominium

Owners’ Association, Inc. (“the Association”). Appellant raises three assignments of

error:

1. The trial court erred in granting appellee’s motion for summary judgment on the issue of whether the Condominium Documents required a commercial owner to pay a proportionate share of the cost associated with the installation of windows for the residential units.

2. The trial court erred in granting appellee’s motion for summary judgment when the appellant raised a genuine issue of fact regarding the calculation of the assessment.

3. The trial court erred by issuing an order declaring that the appellant was responsible for the special assessment when the appellee did not file a counterclaim or otherwise seek affirmative relief from the court.

{¶2} We find no merit to the appeal and affirm the trial court’s judgment.

I. Facts and Procedural History

{¶3} The Association is a corporate entity created for the purpose of managing 99

condominium units in the Grand Arcade, Warning Block, Klein-Marks, and Blair Block

buildings. The buildings, which are located on St. Clair Avenue in Cleveland, Ohio, were

built in the 1880s. Appellant is a member of the Association by virtue of its ownership

of five condominium units in the Grand Arcade building. In 2006, the Association

entered into a contract with Continental Management Company (“Continental”) to act as the Association’s agent in performing management functions under the direction of the

Association’s board of directors (“the Board”).

{¶4} In 2012, the Association determined that the windows and exterior masonry

on Grand Arcade, Warning Block, Klein-Marks, and Blair Block buildings were in need

of repairs. In an effort to prioritize spending, the Association obtained an engineering

report that identified the areas in greatest need of repair, including the removal and

replacement of existing window frames, trim work, glass, sash, screens, caulking, and

sealing work throughout all four buildings. This case involves a dispute as to whether

Appellant is responsible for a percentage of the assessment levied against Association

members to pay for the expansive window replacement project (“the project”).

{¶5} In January 2013, the Association, through the Board, determined that each

member would pay a proportionate share of the cost for all “Common Element” 1

expenses, such as brick masonry, window frames, and the removal and replacement of

window frames according to each member’s percentage of ownership in the buildings.

Individual unit owners would be responsible for the labor and material cost to replace the

glass and sash on their own windows, if they had to be replaced. Appellant did not have

any windows that needed to be replaced.

{¶6} In August 2013, the Association held a special meeting of the membership at

which the Board approved the project. The Board informed members that individual unit

The terms “Common Elements,” “Limited Residential Elements,” and “Units” are terms 1

defined in the Association’s Declaration and Bylaws. owners were responsible for the cost to replace the glass and sash in their own windows.

The Board estimated the project would cost between $1.3 and $1.7 million dollars and

informed members that it would either levy a special assessment to members and/or

secure financing to pay for the project. Either way, members would be charged their

proportionate share of the cost.

{¶7} In October 2013, the Association received bids from three construction

companies and awarded the bid to Miceli Glass, Inc. (“Miceli Glass”) because its bid of

$1,622,862 was the lowest and best bid. The Board voted to proceed with a special

assessment for the project that would begin in January 2014 and run through September

2014. Members of the Association subsequently voted to allow the Association to obtain

a loan to finance the project.

{¶8} The Association calculated the total cost per square foot for all windows

based on Miceli Glass’s bid. The total cost for the project was $167 per square foot,

which was determined based on the total cost of the project divided by the total square

footage of the affected windows. At the Association’s request, Miceli Glass informed

the Association that the price per square foot for the glass and sash portion of the

windows to be installed was $60 per square foot. Accordingly, the Board determined

that the Common Element expense for the window replacement project was $107 per

square foot.

{¶9} In August 2014, the Board sent a letter to all condominium owners to discuss

its decision to move forward with the window replacement project, the cost of the project, and the payment options available to owners. Owners could either pay their respective

shares in advance interest free, if paid by September 3, 2014, or through a loan that

required monthly payments with interest over a 15-year term. Scott Sauter, Continental’s

chief operating officer, subsequently sent an email to Appellant’s representative, Michael

Carney (“Carney”), to clarify the cost allocation of the project. The email contained two

spreadsheets that indicated Appellant would only be charged for the Common Element

cost of the project, which was $107 per square foot.

{¶10} The project proceeded as planned, and Appellant did not make the advance

payment for its share of project. By default, Appellant was subsequently placed on the

15-year loan repayment plan. Appellant was assessed a total of $108,000 based on its

percentage of ownership in the buildings.

{¶11} In September 2014, Appellant filed a complaint against the Association and

Continental seeking an order (1) declaring that it was “not responsible for paying any part

of the assessed costs or expenses relating to the residential unit window project,” (2)

enjoining the Association and Continental “from assessing to and demanding from

[Appellant] a percentage of the costs and expenses relating to the residential unit window

project,” and (3) awarding money damages resulting from the Association and

Continental’s alleged negligence. (Complaint ¶ 9-17.) Appellant further alleged that

the Association and Continental negligently caused the deterioration of the windows and

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2017 Ohio 2760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grande-arcade-ltd-v-grand-arcade-condominium-owners-assn-inc-ohioctapp-2017.