Marhofer v. Baur

655 N.E.2d 248, 101 Ohio App. 3d 194
CourtOhio Court of Appeals
DecidedFebruary 15, 1995
DocketNo. 2265-M.
StatusPublished
Cited by2 cases

This text of 655 N.E.2d 248 (Marhofer v. Baur) 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
Marhofer v. Baur, 655 N.E.2d 248, 101 Ohio App. 3d 194 (Ohio Ct. App. 1995).

Opinion

Dickinson, Judge.

Plaintiff John A. Marhofer has appealed from the judgment of the Medina County Court of Common Pleas in favor of defendants Daniel E. Baur and Courtesy Pontiac Olds, Inc. (“Courtesy”) in this breach of contract action. He has argued that the trial court (1) incorrectly granted summary judgment dismissing his claim against Baur, and (2) incorrectly determined that Courtesy had not breached the agreement at issue. This court affirms the judgment of the trial court because (1) Baur was not a party to the agreement at issue, and (2) Courtesy did not breach the agreement at issue.

I

Marhofer is engaged in the business of facilitating sales of automobile dealerships. He does business under the name “Automotive Business Associates” (“ABA”). Baur is the former president of Courtesy, which owned an automobile dealership in Wadsworth, Ohio. On June 14, 1990, Marhofer and Courtesy entered into an agreement in which Marhofer agreed to assist in the sale of Courtesy’s Wadsworth dealership. Pursuant to the agreement, Courtesy agreed to pay Marhofer $50,000 for any contract for the purchase of the dealership that he procured which was “acceptable” to Courtesy.

Shortly after the execution of the agreement, Marhofer presented Courtesy a written offer for the dealership that was far below its asking price. Courtesy rejected that offer as unacceptable.

During late 1990 or early 1991, Marhofer mentioned Bishop Motors, an entity owned by Glen and Tom Bishop, to Baur as a potential purchaser of the dealership. Marhofer engaged in discussions with the Bishops, but those discussions never resulted in his presenting an offer to Courtesy from them. Baur and Marhofer had no further discussions regarding Bishop Motors as a potential buyer.

On October 14, 1991, Tom Bishop contacted Baur directly in order to express an interest on the part of Bishop Motors in purchasing the Wadsworth dealer *196 ship. On November 20, 1991, Courtesy and Tom Bishop entered into an agreement pursuant to which Bishop agreed to purchase the dealership.

Marhofer filed this action against Baur and Courtesy in the Medina County Court of Common Pleas on April 3, 1992. He alleged that he was entitled to recover $50,000 from them as a commission on Courtesy’s sale of the dealership to Bishop.

On June 23,1993, Baur and Courtesy moved for summary judgment. The trial court denied the motion insofar as it related to Courtesy. It determined, however, that Baur had signed the agreement only on behalf of Courtesy rather than in his personal capacity. Accordingly, it concluded that there were no genuine issues of material fact and that Baur was entitled to judgment dismissing Marhofer’s claim against him as a matter of law.

Marhofer’s claim against Courtesy was tried to the court on August 5, 1993. On August 30, 1993, the trial court entered findings of fact and conclusions of law in which it found that Marhofer had failed to procure a contract acceptable to Courtesy and concluded that Courtesy was entitled to entry of judgment in its favor dismissing Marhofer’s claim against it. Marhofer timely appealed to this court.

II

Marhofer’s first assignment of error is that the trial court incorrectly granted summary judgment dismissing his claim against Baur. Specifically, he has-argued that there were genuine issues of fact regarding whether Baur was personally liable on the agreement at issue.

In reviewing a trial court’s grant of summary judgment, this court applies the same standard a trial court is required to apply in the first instance: whether there were any genuine issues of material fact and whether the moving party was entitled to judgment as a matter of law. Parenti v. Goodyear Tire & Rubber Co. (1990), 66 Ohio App.3d 826, 829, 586 N.E.2d 1121, 1122-1123. “An officer of a corporation is not personally liable on contracts * * * for which his corporate principal is liable, unless he intentionally or inadvertently binds himself as an individual.” Centennial Ins. Co. v. Tanny Internatl. (1975), 46 Ohio App.2d 137, 142, 75 O.O.2d 115, 118, 346 N.E.2d 330, 334.

Baur’s signature appears at the end of the agreement only once, directly below the typed words “Courtesy Pontiac Olds, Inc.” The typed word “By,” followed by a colon, immediately proceeds his signature, and his signature is followed by the designation “Pres.” Marhofer has not suggested that Baur signed the agreement in his personal capacity. Rather, he has argued, in reliance upon *197 Spicer v. James (1985), 21 Ohio App.3d 222, 21 OBR 236, 487 N.E.2d 353, that “[wjhether a corporate officer is personally liable upon a contract depends not only upon the form of the signature, but also upon the form of the promise.” Appellant’s Brief at 7.

According to Marhofer, the “form of the promise” contained in the agreement indicates that it was contemplated that Baur would be personally liable for Courtesy’s undertaking. He has pointed specifically to the agreement’s opening paragraph:

“MEMORANDUM OF AGREEMENT entered into this 14th day of June 1990, by and between John A. Marhofer, DBA, AUTOMOTIVE BUSINESS ASSOCIATES, of Cuyahoga Falls, Ohio (herein ‘ABA’), Courtesy Pontiac Olds Inc. and Daniel E. Baur, its Pres; collectively, jointly and severally, ‘SELLER.[’]”

He has argued that the reference to Courtesy “and” Bam1, coupled with the use of the words “collectively, jointly and severally,” demonstrates that Baur was intended to be a party to the agreement. He has also noted that the word “SELLER” is used at some places in the agreement and the word “SELLERS” is used at other places in the agreement.

There is no significance to the use of the words “SELLER” and “SELLERS” in the agreement. There is no pattern to their use; rather, they are used interchangeably. If the word “SELLERS” had been intended to refer to both Courtesy and Baur and the word “SELLER” had been intended to refer to only one or the other, the word “SELLERS” would have appeared at the close of the opening paragraph instead of the word “SELLER.” Marhofer prepared the agreement and, in doing so, he used the singular and plural interchangeably. That use amounted to nothing more than a clerical error. The issue presented by Marhofer’s first assignment of error, therefore, is whether the appearance of Baur’s name in the opening paragraph of the agreement, coupled with the use of the words “and” and “collectively, jointly and severally,” was enough to personally bind him to its terms.

The opinion in Spicer v. James, supra, 21 Ohio App.3d 222, 21 OBR 236, 487 N.E.2d 353, does contain a single sentence that appears to support Marhofer’s position that an individual who signs a contract only in his corporate capacity could be held personally liable based upon the “form of the promise”:

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Bluebook (online)
655 N.E.2d 248, 101 Ohio App. 3d 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marhofer-v-baur-ohioctapp-1995.