Island Express Boat v. Put-In-Bay Boat, Unpublished Decision (3-9-2007)

2007 Ohio 1041
CourtOhio Court of Appeals
DecidedMarch 9, 2007
DocketNo. E-06-002.
StatusUnpublished
Cited by9 cases

This text of 2007 Ohio 1041 (Island Express Boat v. Put-In-Bay Boat, Unpublished Decision (3-9-2007)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Island Express Boat v. Put-In-Bay Boat, Unpublished Decision (3-9-2007), 2007 Ohio 1041 (Ohio Ct. App. 2007).

Opinion

DECISION AND JUDGMENT ENTRY
{¶ 1} This is an appeal from a judgment of the Erie County Court of Common Pleas, in which the trial court granted partial summary judgment to appellees, Put-In-Bay Boat Line Co., et al., and dismissed a portion of the complaint filed by appellants, Island Express Boat Lines, Ltd., et al. On appeal, appellants set forth the following six assignments of error:

{¶ 2} "First Assignment of Error: Defendants-Appellees' ferryboat service, the Jet Express, consistently charged double the fare charged by Miller Boat Line for passenger ferry service to Put-in-Bay. The Jet Express could charge twice as much as Miller Boat Line because the Jet Express, like Plaintiffs-Appellants' ferryboat service, the Rocket, offered high-speed service, late-night service, and downtown service. Miller Boat Line did not offer any of those services. Federal courts have held that, for purposes of an antitrust analysis, even identical products can belong to different markets if there is a significant price differential between the products. Therefore, the trial court erred in holding as a matter of law that, for antitrust purposes, Miller Boat Line was part of the same relevant market as the Jet Express and the Rocket, although Miller Boat Line provided a substantially different service at a significantly lower price.

{¶ 3} "Second Assignment of Error: Within three days after Todd Blumensaadt had been hired to run the Jet Express, a company he controlled paid $60,000 to lease the ferryboat dockage at Ladd's marina, causing the Rocket to be evicted from its dockage. Blumensaadt never used the dockage at Ladd's Marina for any purpose. Courts have held that an important element in determining whether a common design to engage in an *Page 3 antitrust conspiracy exists is evidence of business decisions, which if taken independently, would be against the actor's economic self-interest. Because Blumensaadt's actions made no economic sense independent of an antitrust conspiracy, the trial court erred in granting Defendants-Appellees' motion for summary judgment on Plaintiffs-Appellants' claim for antitrust conspiracy.

{¶ 4} "Third Assignment of Error: The Antitrust Defendants engaged in predatory conduct in obtaining the eviction of the Rocket from Ladd's Marina, and also by refusing to lease dockage to the Rocket. Their purpose was to monopolize the market for late-night-high-speed-ferryboat service to downtown Put-in-Bay. The Antitrust Defendants now control 100% of the market for late-night-high-speed ferryboat service to downtown Put-in-Bay. Therefore, the trial court erred in granting Defendants-Appellees' motion to dismiss Plaintiffs-Appellants' claims for attempted monopolization and monopolization.

{¶ 5} "Fourth Assignment of Error: Plaintiffs-Appellants moved for a preliminary injunction in the Ottawa County Common Pleas Court in a related matter. In granting the injunction, the court applied the standard for granting a preliminary injunction, although it termed the injunction a `final' injunction. Because the court applied the standard for a preliminary injunction, the injunction was not a final injunction, and not a final order. Therefore, the trial court erred in holding that the preliminary injunction issued by the Ottawa County Common Pleas Court had collateral estoppel effect in this matter. *Page 4

{¶ 6} "Fifth Assignment of Error: Because Todd Blumensaadt tortiously interfered with Plaintiffs-Appellants' business relationship with Ladd's Marina by encouraging the Ladds to evict the Rocket from its dockage at Ladd's Marina, the trial court erred by holding that Plaintiffs-Appellants could not state a claim for tortious interference with a business relationship.

{¶ 7} "Sixth Assignment of Error: Ohio courts have recognized that a business can have a prospective relationship with its customers and that this prospective relationship is protected from tortious interference. Because Ladd's Marina tortiously interfered with the Rocket's business relationship with its extensive customer base by maliciously evicting the Rocket from its dockage for the sole purpose of driving the Rocket out of business, the trial court erred in holding that Ladd's Marina did not tortiously interfere with the Rocket's business relationship with its customers.

{¶ 8} The relevant, undisputed facts are as follows. Appellants, Island Express Boat Lines, Ltd.; Island Rocket III, LLC; Kevin Baxter; Andrew S. Martin; Duane C. Ohly; and Joseph C. Fratoe (collectively "Island Express"), were the owners/operators of a passenger ferryboat service running between Sandusky, Ohio, Port Clinton, Ohio, and the town of Put-in-Bay on South Bass Island. Appellees, Bernard M. McCann; Charles L. Duggan; Marvin E. Booker; George R. Stoiber; Todd A. Blumensaadt; Put-in-Bay Boat Line Company; and First Island Company ("Jet owners"), either own, invest in, or operate a separate ferryboat service from Port Clinton to Put-in-Bay, or own marinas and/or dock space on South Bass Island. Other parties in this case include Shawn Ladd, *Page 5 Christopher J. Ladd, and Ladd's Marina, Inc. ("Ladds"); and PIB Ventures, LLC, and Put-in-Bay Investments, Ltd. ("PIB").

{¶ 9} Sometime in 1990, the Jet owners began a ferryboat service, the Jet Express, which offered high-speed ferryboat service for up to 400 passengers at a time from the North Jefferson Street pier in Port Clinton to downtown Put-in-Bay. In addition to ferrying passengers in the daytime, the Jet Express offered service to Put-in-Bay into the evening hours.

{¶ 10} In 1997, appellants, Erie County Prosecutor, Kevin Baxter, and local businessman, Duane Ohly, along with several other Island Express investors, purchased a single, open-hulled boat named Rocket I. Rocket I was capable of taking up to 149 passengers from downtown Sandusky to downtown Put-in-Bay. Like the Jet Express, the Rocket offered high-speed ferryboat service to Put-in-Bay, both during the day and at night. Later, Island Express purchased another vessel, the Rocket II. In 2002, a third vessel, Rocket III, was purchased by Island Rocket III, LLC, an entity formed by Island Express specifically for that purpose.1

{¶ 11} Also offering ferryboat service to Put-in-Bay was Miller Boat Line, a company in existence for years prior to either the Jet Express or the Rocket. Miller charged approximately one-half as much fare as either the Jet Express or the Rocket, and used much bigger vessels to take passengers from Catawba Island to a location just *Page 6 outside of Put-in-Bay. From that point, transportation into town was available. Even though Miller's boats were slower than either the Jet Express or Rockets I, II, and III, they traveled a short distance and, therefore, made the trip in a much shorter time. Miller's boats operated only during the daylight hours.

{¶ 12} Initially, the Rocket docked at Fox's Marina in downtown Put-in-Bay, which was owned by appellee Charles "Skip" Duggan. However, in 1998, Island Express began leasing dock space from nearby Ladd's Marina. In 2002, Island Express expanded its business by leasing the North Jefferson Street pier, which became available after the Jet Express moved its operation to another location in the city of Port Clinton.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

InvesTek Mgt. Servs., Inc. v. Tate
2024 Ohio 5850 (Ohio Court of Appeals, 2024)
Rock House Fitness, Inc. v. Himes
2021 Ohio 245 (Ohio Court of Appeals, 2021)
Mack v. Toledo
2019 Ohio 5427 (Ohio Court of Appeals, 2019)
New Holland v. Murphy
2019 Ohio 2423 (Ohio Court of Appeals, 2019)
Avery Dennison Corp. v. TransAct Technologies, Inc.
2013 Ohio 4551 (Ohio Court of Appeals, 2013)
State ex rel. Dewine v. Ashworth
2012 Ohio 5632 (Ohio Court of Appeals, 2012)
E&178 Solutions v. Hoelzer, L-08-1295 (2-20-2009)
2009 Ohio 772 (Ohio Court of Appeals, 2009)
Neal v. Manor, L-07-1055 (1-25-2008)
2008 Ohio 257 (Ohio Court of Appeals, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
2007 Ohio 1041, Counsel Stack Legal Research, https://law.counselstack.com/opinion/island-express-boat-v-put-in-bay-boat-unpublished-decision-3-9-2007-ohioctapp-2007.