Menard, Inc. v. DiPaolo Indus. Dev., L.L.C.

2023 Ohio 1188, 212 N.E.3d 1063
CourtOhio Court of Appeals
DecidedApril 10, 2023
Docket2022-T-0032
StatusPublished

This text of 2023 Ohio 1188 (Menard, Inc. v. DiPaolo Indus. Dev., L.L.C.) 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
Menard, Inc. v. DiPaolo Indus. Dev., L.L.C., 2023 Ohio 1188, 212 N.E.3d 1063 (Ohio Ct. App. 2023).

Opinion

[Cite as Menard, Inc. v. DiPaolo Indus. Dev., L.L.C., 2023-Ohio-1188.]

IN THE COURT OF APPEALS OF OHIO ELEVENTH APPELLATE DISTRICT TRUMBULL COUNTY

MENARD, INC., CASE NO. 2022-T-0032

Plaintiff-Appellee, Civil Appeal from the - vs - Court of Common Pleas

DIPAOLO INDUSTRIAL DEVELOPMENT, LLC, Trial Court No. 2015 CV 00169

Defendant-Appellant.

OPINION

Decided: April 10, 2023 Judgment: Affirmed in part, reversed in part, and remanded

Julian T. Emerson, Reminger Co., LPA, 101 West Prospect Avenue, Suite 1400, Cleveland, OH 44115 (For Plaintiff-Appellee).

Michael A. Partlow, 112 South Water Street, Suite C, Kent, OH 44240 (For Defendant- Appellant).

MATT LYNCH, J.

{¶1} Defendant-appellant, DiPaolo Industrial Development, LLC, appeals the

judgment of the Trumbull County Court of Common Pleas in favor of plaintiff-appellee,

Menard, Inc. For the following reasons, we affirm in part and reverse in part the judgment

of the lower court and remand for further proceedings consistent with this opinion.

{¶2} On January 29, 2015, Menard filed a Complaint against DiPaolo Industrial

raising claims of Breach of Contract (Count I), Breach of Express Warranty (Count II),

Indemnification (Count III), and Conversion (Count IV). The Complaint was based on the following allegations: “Menard and Defendant entered into a written agreement * * * for

work to be performed by DiPaolo at a new Menard’s location in Warren, Ohio * * *, the

scope of which included demolition, concrete-crushing, salvage, storage, and milling of

asphalt services. * * * As a result of DiPaolo’s failure to timely complete its work despite

Menard’s requests, Menard was compelled to hire another contractor to complete

DiPaolo’s work and correct defective and non-conforming work.”

{¶3} On December 16, 2015, DiPaolo Industrial filed an Answer and

Counterclaim raising claims for Breach of Contract (Count One), Unjust Enrichment

(Count Two), Foreclosure of Mechanic’s Lien (Count Three), and Defamation of

Character (Count Four). DiPaolo asserted that it performed its obligations under the

contract and Menard had failed to remit payment pursuant to its terms. Furthermore, it

was alleged that “DiPaolo and Menard agreed [per change orders] to DiPaolo performing

additional work on the project related to the original demolition scope of the work” and

“Menard failed to timely approve and remit payment for the Change Orders.”

{¶4} On October 17, 2017, the trial court granted partial summary judgment in

favor of Menard on DiPaolo’s claims for Breach of Contract and Unjust Enrichment with

respect to the change orders only.

{¶5} On July 26 and 27, and on October 11, 2018, trial was held before a

magistrate.

{¶6} On May 13, 2019, the Magistrate’s Decision was issued. The magistrate

found in favor of Menard with respect to both the claims of the Complaint and

Counterclaim based on the following Findings of Fact:

Case No. 2022-T-0032 1. James Carlson is the Assistant General Manager of Store Planning and Construction for Plaintiff.1

2. Sergio DiPaolo is the Managing Member of Defendant.

3. Plaintiff issued an October 1, 2013 “Invitation to Bid” packet of documents for potential bidders, which comprised of demolition plans, site plans, environmental report, soils report, specifications, and a sample contract.

***

5. Defendant received and reviewed the Invitation to Bid documents before entering into contract with Plaintiff.

11. The Invitation to Bid stated, “The work to be performed hereunder should be commenced and completed on or before the dates as shown in the contract. The general contractor agrees that time is of the essence and that the times stated shall only be modified by written agreement of the parties. Completion means all work including punch list item complete and all inspections complete. The contractor agrees that the owner will suffer financial loss if the project is not completed on the completion date.”

16. Sergio DiPaolo reviewed the contract and signed the contract on behalf of Defendant.

18. The contract entered into was to be enforced in conjunction with the Invitation to Bid documents.

19. The contract was for the sum of $286,000.

22. Per the contract, “Contractor shall not perform any extra or additional work or changes from the contract documents unless previously authorized in writing by an AIA change order signed by

1. References to the trial transcript and exhibits included in the Magistrate’s Decision are omitted throughout the Findings of Fact. 3

Case No. 2022-T-0032 Troy Anderson, the General Manager Store Planning/Design/Construction. Portions of change order work are subject to merchandise credit check. Owner’s project managers are not authorized to approve changes in the work.”

23. Defendant admitted that nowhere in the contract does it state Defendant could perform additional work simply off a verbal communication go ahead.

24. Per the contract, “The work to be performed hereunder shall be commenced by November 11, 2013, and have demolition completed on or before December 27, 2013, and complete crushing by January 31, 2014 (“Agreement Period”). CONTRACTOR agrees that TIME IS OF THE ESSENCE and that the above stated dates shall not be modified unless the modification is in writing and signed by the OWNER and CONTRACTOR. Inclement weather shall not be considered as a cause for an extension of time or completion of the work.”

25. Plaintiff contends that time was of the essence for completion of the work because Plaintiff intended on constructing a new Menard store once demolition was completed.

26. When Defendant returned the signed contract, he also included an “addendum” dated November 11, 2013 which purported to extend the time period for crushing the asphalt due to adverse weather conditions. The addendum was not signed by Defendant or any representative of Plaintiff. Defendant contends that because Plaintiff never informed him that the addendum was rejected that it is binding on the parties. However, Jim Carlson specifically testified that the proper protocol to change or add terms to the contract would be for Troy Anderson to agree to it and sign off on any change.

27. Per the contract, “Contractor shall indemnify and hold harmless owner, its agents and its employees from any and all liability, damages, expenses, claims, demands, actions, or cause of action, including attorney fees, arising out of the performance of the Contract Documents, Agreement and/or work hereunder, whether such liability, damages, expenses, claims, demands, actions or causes of action are caused by contractor, its subcontractors, or lower tiered contractors, or their agents or employees, owner, its agents and its employees, or any persons acting on their behalf of owner and/or contractor.”

28. Defendant admitted that similar to the Invitation to Bid documents, the contract once again laid out the payment procedure, 4

Case No. 2022-T-0032 which was the usual AIA payment procedure that Defendant was accustomed to from other projects.

29. Defendant received a December 17, 2013 correspondence from Plaintiff returning Defendant’s first payment application because it did not properly follow the payment procedure in the contract.

30. Defendant understood Plaintiff’s rationale for rejecting the first payment application and had no issues.

31. Upon remedying the issues with payment application one, Defendant resubmitted and was paid $143,590.50.

32.

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