N. Side Bank & Trust Co. v. Trinity Aviation, L.L.C.

2020 Ohio 1470, 153 N.E.3d 889
Ohio Court of Appeals·Decided April 15, 2020·No. C-190021, C190023·Published·Cited by 20 cases

Opinion

IN THE COURT OF APPEALS

FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

NORTH SIDE BANK & TRUST : APPEAL NOS. C-190021 COMPANY, C-190023 : TRIAL NO. A-1205557 Plaintiff-Appellee/Cross-

Appellant, : O P I N I O N.

vs. : TRINITY AVIATION, LLC, et al., :

Defendants, :

and :

ARLINGTON HEIGHTS RECYCLING, : LLC, d.b.a. A&A RECYCLING, :

Intervenor-Defendant-

Appellant/Cross-Appellee, :

and : HOLLAND ROOFING GROUP, LLC, : and : INDUSPRO, LLC, :

Third-Party Defendants-

Appellants/Cross-Appellees. :

Civil Appeals From: Hamilton County Court of Common Pleas Judgment Appealed From Is: Vacated in Part, Reversed in Part, and Cause Remanded Date of Judgment Entry on Appeal: April 15, 2020

Markesbury & Richardson Co., LPA, and Barry A. Rudell, II, for Plaintiff-Appellee/Cross- Appellant,

Statman, Harris & Eyrich, LLC, William B. Fecher, Alan J. Statman and Saba N. Alam, for Intervenor-Defendant-Appellant/Cross-Appellee and Third-Party Defendants- Appellants/Cross-Appellees.

BERGERON, Judge.

{¶1} In this high-flying dispute over airplane parts, replete with a failing company, shenanigans with a warehouse full of inventory, and a tortured procedural history, we confront a fairly basic question that vexes first-year law students: did the parties form a contract? Although these sophisticated parties certainly knew how to dress up a contract in more formal attire, here they just sent a few email volleys. This correspondence, however, contained the necessary attributes for contract formation, and we accordingly reverse the trial court’s conclusion to the contrary and remand for further proceedings.

I.

{¶2} The origins of this appeal stretch back a decade with the plaintiff-appellee/ cross-appellant North Side Bank & Trust Company (“NSBT”) and one of its debtors, Trinity Aviation, LLC, (“Trinity”). After securing a loan with NSBT, Trinity subsequently defaulted. NSBT initially worked with Trinity to bring it into compliance with the loan agreement, but this proved fruitless, ultimately prompting NSBT to file a complaint in July 2012 in the Hamilton County Common Pleas Court, citing default under the loan agreement and accelerating the remaining sums due. NSBT obtained judgment in its favor based on executed cognovit provisions in the loan instruments against Trinity and its personal guarantors, Gary and Debbie Post and Charles and Lynn Young, for the remaining balance on the loan. Of course, as in so many of these types of disputes, that judgment is merely the prelude for further proceedings rather than the finale.

{¶3} Leading up to the July 2012 judgment, NSBT also worked to liquidate assets that Trinity pledged as collateral for the loan and contracted with a liquidator out of Texas, Transportation Planning, Inc., (“TPI”) to handle the logistics of a sale of assets, which

involved a significant amount of airplane parts. The materials in question were located at a warehouse on Kemper Road leased by Trinity, later known as (perhaps unlucky) “Building 13.” Building 13 also housed consignment inventory belonging to another entity, which was separated from Trinity’s assets and enclosed in a small room within the warehouse.

{¶4} For various reasons, TPI’s initial efforts to liquidate the parts failed to yield suitable results, as the bank received no legitimate offers. Consequently, TPI advised NSBT that an alternative sale of the materials as scrap might prove viable as a means of recouping some of its losses. As part of this new plan to liquidate the items as scrap, TPI contacted various entities that might be interested in purchasing scrap metals, including Arlington Heights Recycling, LLC, d.b.a. A&A Recycling (“A&A Recycling”).

{¶5} Following that outreach, Douglas Blair, the owner and operator of A&A Recycling, visited and viewed material located at Trinity’s Building 13 with Sam Ashmore of TPI in June 2012. Mr. Blair and Mr. Ashmore toured the building, with Mr. Blair examining the metals contained in the inventory. After completing this assessment, Mr. Blair subsequently emailed Mr. Ashmore a price-per-pound “bid” for the metals located at Building 13 on June 21, 2012, the “Phase I” purchase. Mr. Ashmore confirmed that A&A Recycling prevailed on the bid, authorizing A&A Recycling to remove the Phase I materials from Building 13. Given the volume of parts, Mr. Blair explained that this exercise took “a couple of trucks and * * * about five days to remove phase one,” which they relocated to A&A Recycling’s place of business.

{¶6} After the Phase I purchase, Mr. Ashmore again contacted A&A Recycling about purchasing more material located in Building 13, the so-called “Phase II” purchase. Mr. Blair explained that he initially viewed this additional material on July 2, 2012, but

returned to the warehouse on July 9. During this second visit, the parties realized that Trinity’s principal, Gary Post, had moved items within the warehouse and relocated other items from Building 13 (presumably in an effort to hide more valuable collateral from NSBT). Despite recognizing that many “high-end parts” were no longer in the warehouse, Mr. Blair submitted a second bid via email on July 13. This email confirmed the per-pound prices for both the Phase I and Phase II bids, stipulated to the removal of the Phase II materials, and referenced a $20,000 deposit, with the remaining sums due to be paid by August 1 after weighing the materials. He also sent a second email July 13 asking for written confirmation of the bank’s acceptance of both bids. Mr. Ashmore wasted little time in agreeing to this—the next day, he wrote “[t]his is to advise that the terms and conditions of your bid to purchase material from Trinity Aviation warehouse is accepted by North Side Bank[.]”

{¶7} A&A Recycling then enlisted the Holland Roofing Group, LLC, (“HRG”)

(owned by an individual named Hans Philippo) to assist it in removing the Phase II materials. In light of the volume, this effort necessitated over 50 tractor-trailers to move the parts. With HRG’s help, A&A Recycling transported all of the material to a warehouse in Kentucky owned by a company called Induspro, LLC, (“Induspro”). The Phase I materials were also eventually relocated to this warehouse as well.

{¶8} As NSBT struggled to get its arms around the extent of Trinity’s inventory (and its collateral), it eventually realized that assets were located at several different warehouses and potentially commingled with consignment inventory belonging to other entities. Therefore, days after giving A&A Recycling the green light to proceed with removal of the Phase II inventory, NSBT moved for appointment of a receiver “for the purpose of

carrying into effect the judgement of [NSBT], and collecting, preserving, accounting for, and determining the claims of all parties to the personal property of * * * Trinity Aviation, LLC.” The court ultimately approved this motion, appointing Richard Nelson receiver to “take possession of, assemble, account for and marshal all property of Trinity Aviation, LLC.”

{¶9} Understandably flummoxed by this turn of events, and concerned that the appointment of a receiver would stall the liquidation of the Phase I and Phase II materials now located in Kentucky, A&A Recycling asked the trial court in late 2012 to approve the sale and distribution of the assets in its possession. For its part, the bank opposed the sale, arguing that (1) A&A Recycling was not yet a party to the ongoing action between the bank and its debtor, (2) any sale of the assets was premature until the receiver could fully inventory the extent of the assets, and (3) “it [was] questionable whether A&A [Recycling] has a contractual right to purchase these assets for scrap[.]”

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

N. Side Bank & Trust Co. v. Trinity Aviation, L.L.C., 2020 Ohio 1470, 153 N.E.3d 889 (Ohio Ct. App. 2020).

2020 Ohio 1470 (N. Side Bank & Trust Co. v. Trinity Aviation, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Estate of Vasquez v. Tallmadge Health & Rehab Ctr.
2026 Ohio 1647 (Ohio Court of Appeals, 2026)
Concrete Recovery, L.L.C. v. Nestle Purina Petcare Co.
2026 Ohio 692 (Ohio Court of Appeals, 2026)
Estate of Hodory v. Duke Realty Corp.
2025 Ohio 5068 (Ohio Court of Appeals, 2025)
Banks v. PNC Bank N.A.
N.D. Ohio, 2025
N. Side Bank & Trust Co. v. Trinity Aviation, L.L.C.
2024 Ohio 590 (Ohio Court of Appeals, 2024)
GigSmart, Inc. v. AxleHire, Inc.
2023 Ohio 3807 (Ohio Court of Appeals, 2023)
Metro Renovations 12, L.L.C. v. Sabir
2023 Ohio 1867 (Ohio Court of Appeals, 2023)
Danziger & De Llano, L.L.P. v. Morgan Verkamp, L.L.C.
2023 Ohio 1728 (Ohio Court of Appeals, 2023)
Stride Studios, Inc. v. Alsfelder
2023 Ohio 1502 (Ohio Court of Appeals, 2023)
Maddali v. Haverkamp
2022 Ohio 3826 (Ohio Court of Appeals, 2022)
Sellers, Jr. v. Anthem, Inc.
District of Columbia, 2022
Univ. Hosp. v. Wells
2021 Ohio 3666 (Ohio Court of Appeals, 2021)
Gibbs v. Firefighters Community Credit Union
2021 Ohio 2679 (Ohio Court of Appeals, 2021)
Vogel v. Albi
2020 Ohio 5242 (Ohio Court of Appeals, 2020)