Original Pizza Pan v. CWC Sports Group, Inc.

954 N.E.2d 1220, 194 Ohio App. 3d 50
CourtOhio Court of Appeals
DecidedApril 7, 2011
DocketNo. 95219
StatusPublished
Cited by12 cases

This text of 954 N.E.2d 1220 (Original Pizza Pan v. CWC Sports Group, 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
Original Pizza Pan v. CWC Sports Group, Inc., 954 N.E.2d 1220, 194 Ohio App. 3d 50 (Ohio Ct. App. 2011).

Opinion

Mary J. Boyle, Presiding Judge.

{¶ 1} In June 2009, The Original Pizza Pan, an Ohio corporation, entered into an endorsement agreement with The Sports Link, Inc., a California corporation, [52]*52for the exclusive right to use Brian Robiskie’s name and likeness for advertising purposes within the quick-service restaurant industry in Ohio. Robiskie played for the Cleveland Browns. Michael Ornstein, an employee of Sports Link, was Robiskie’s agent who handled the negotiations with Pizza Pan.

{¶ 2} Frederick Peters, owner of Pizza Pan, averred that Robiskie sought him out because Robiskie “wanted to get his name out in the Cleveland market and was seeking endorsement opportunities.” Robiskie met with Pizza Pan and negotiated an agreement, whereby Pizza Pan would have the exclusive rights to use Robiskie’s name and likeness for advertising purposes. But one week later, Ornstein contacted Peters by phone and explained that Robiskie “could not enter into an endorsement agreement without his input and approval.”

{¶ 3} Peters stated that throughout the negotiations with Sports Link and Ornstein, he made it clear to them that “it was very important for Pizza Pan to have this exclusive relationship, and the right to exclusivity was essential to Pizza Pan’s decision to enter into the Endorsement Agreement.” Peters further said that “Ornstein and Sports Link affirmatively represented to [him] that they had the authority to grant Pizza Pan the exclusive right to Robiskie’s likeness for advertising purposes.” Based on these representations, Pizza Pan signed the endorsement agreement drafted by Sports Link and Ornstein.

{¶ 4} At issue in this appeal, the contract also contained a forum-selection clause, which provided: “This Agreement shall be governed by the laws of the state of California without regard to conflicts of law principles and all actions hereunder shall be brought in the appropriate California state or federal court.”

{¶ 5} According to Pizza Pan, approximately four months after it entered into the endorsement agreement with Sports Link, Donatos Pizza began offering a collector’s cup with Robiskie’s photo on it. Pizza Pan further alleged that Donatos was using Robiskie’s likeness in various other mediums to promote its pizza.

{¶ 6} When Peters learned that Donatos was using Robiskie’s likeness in its advertisements, he immediately confronted Ornstein. Peters averred, “At that time, Ornstein admitted that [Sports Link’s] earlier representation that Pizza Pan would have the exclusive use of Robiskie’s name and likeness within the quick-service restaurant industry was false,” and that “Sports Link did not have the authority to promise exclusivity to Robiskie’s name and likeness, despite its earlier representations.” Peters further stated that Ornstein revealed to him, “for the first time, that Robiskie signed a group licensing agreement with the NFLPA, giving the NFLPA the right to use or negotiate the use of Robiskie’s name and likeness,” and that “[t]his was in direct contradiction to the statements that [Peters] had been assured earlier, that Pizza Pan would have the exclusive use of Robiskie’s name and likeness within the quick-service restaurant industry.”

[53]*53{¶ 7} In November 2009, Pizza Pan sued Sports Link and Ornstein for fraud and negligent misrepresentation. Pizza Pan alleged that Sports Link and Ornstein negligently or intentionally concealed information and/or supplied false information, and as a result, Pizza Pan relied on this information to its detriment. Pizza Pan further maintained that had it known it would not have the exclusive right to use Robiskie’s name, it would not have entered into the agreement or paid the same amount for nonexclusive rights.

{¶ 8} Rather than answer Pizza Pan’s complaint, defendants moved to dismiss it. They raise three arguments for dismissal, contending that (1) pursuant to Civ.R. 12(B)(6), Pizza Pan failed to set forth cognizable claims for relief, (2) pursuant to Civ.R. 12(B)(2), the court lacked personal jurisdiction over them under Ohio’s long-arm statute, and (3) the endorsement agreement contained a valid forum-selection clause prohibiting Pizza Pan’s suit against defendants in Ohio.

{¶ 9} The trial court granted defendants’ motion and dismissed Pizza Pan’s complaint with prejudice because it found the forum-selection clause to be valid and applicable to Pizza Pan’s fraud and negligent-misrepresentation claims. It is from this judgment that Pizza Pan appeals, claiming that the trial court erred in dismissing its complaint.1

Forum-Selection Clause

{¶ 10} The enforceability of a forum-selection clause is a question of law that we review de novo. Baker v. LeBoeuf, Lamb, Leiby & Macrae (C.A.6,1997), 105 F.3d 1102, 1104, citing Shell v. R.W. Sturge, Ltd. (C.A.6, 1995), 55 F.3d 1227. The party challenging the forum-selection clause bears a heavy burden of establishing that it should not be enforced. Discount Bridal Serv., Inc. v. Kovacs (1998), 127 Ohio App.3d 373, 376-377, 713 N.E.2d 30, citing The Bremen v. Zapata Off-Shore Co. (1972), 407 U.S. 1, 9-12, 92 S.Ct. 1907, 32 L.Ed.2d 513 Barrett v. Picker Internatl. (1990), 68 Ohio App.3d 820, 589 N.E.2d 1372.

{¶ 11} Because personal jurisdiction over a party is a right that may be waived, the use of a forum-selection clause is one method whereby contracting parties may agree to submit to the jurisdiction of a particular court. Preferred Capital, Inc. v. Assoc. in Urology (C.A.6, 2006), 453 F.3d 718, 721. In fact, “a minimum-contacts analysis as set forth in Internatl. Shoe Co. v. Washington [54]*54(1945), 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, and its progeny, is not appropriate in determining the validity of forum selection clauses in commercial contracts.” Kennecorp v. Country Club Convalescent Hosp. (1993), 66 Ohio St.3d 173, 175, 610 N.E.2d 987. Thus, “a forum selection clause contained in an arm’s-length commercial transaction between two business entities is valid and enforceable, irrespective of the number of contacts involved with the forum state.” Id. at 174.

{¶ 12} With this public policy in mind, the Ohio Supreme Court held in Kennecorp that “in the light of present-day commercial realities, * * * a forum selection clause in a commercial contract should control, absent a strong showing that it should be set aside.” Id. at 175, citing The Bremen, 407 U.S. at 15, 92 S.Ct. 1907, 32 L.Ed.2d 513 (landmark decision overruling the traditional view that forum-selection clauses were against public policy). Thus, forum-selection clauses are “prima facie valid in the commercial context, so long as the clause has been freely bargained for,” there is no evidence of fraud or overreaching, and “unless it can be clearly shown that enforcement of the clause would be unreasonable and unjust.” Id.

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Cite This Page — Counsel Stack

Bluebook (online)
954 N.E.2d 1220, 194 Ohio App. 3d 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/original-pizza-pan-v-cwc-sports-group-inc-ohioctapp-2011.