outback/buckeye-ii v. Lofino Trust, Unpublished Decision (2-9-2007)

2007 Ohio 577
CourtOhio Court of Appeals
DecidedFebruary 9, 2007
DocketNos. 06-CA-2, 06-CA-44.
StatusUnpublished
Cited by8 cases

This text of 2007 Ohio 577 (outback/buckeye-ii v. Lofino Trust, Unpublished Decision (2-9-2007)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
outback/buckeye-ii v. Lofino Trust, Unpublished Decision (2-9-2007), 2007 Ohio 577 (Ohio Ct. App. 2007).

Opinion

OPINION
{¶ 1} Defendant-Appellant Charles J. Lofino Grandchildren's Trust (Lofino) appeals from an order granting a permanent injunction in favor of Plaintiffs-Appellees Outback/Buckeye II, Limited Partnership and Cheeseburger-Buckeye, Limited Partnership (Outback and Cheeseburger). Lofino contends that the trial court erred by failing to enforce the clear and unambiguous termination provisions of the parties' contracts and by misinterpreting the meaning of a contract term, "Landlord's Work." Lofino further contends that the trial court erred by failing to comply with Civ. R. 65(D) and with Civ. R. 60(B) when it issued and then later modified the permanent injunction.

{¶ 2} We conclude that the trial court did not err in granting the permanent injunction. The court did err in failing to comply with Civ. R. 65(D), but the error was harmless. The trial court also erred in modifying the permanent injunction and entering an emergency order. Leave should have been obtained from the court of appeals, given that the permanent injunction order had already been docketed. Accordingly, the judgment of the trial court is Affirmed in part, and Reversed in part, and this cause is Remanded for further proceedings.

I
{¶ 3} On August 25, 2004, Outback and Lofino entered into a lease agreement for 1.56 acres located in a shopping center known as "The Shoppes at Fairfield Commons." Lofino owned the land, and Outback planned to build a facility of up to 7,000 square feet that would house an Outback Steakhouse. On the same date, Cheeseburger also entered into a lease agreement with Lofino for a 1.26 acre parcel located in the same shopping center. Cheeseburger intended to use the premises to build a restaurant called "Cheeseburgers in Paradise."

{¶ 4} Both lease agreements contained essentially the same terms, and included "Exhibit A," which was a four-page attachment. Exhibit A depicted the "Premises" and "Permitted Restaurants" (A-1 ); a "Protected Area" (A-2); a "No-build Area" and a "Restricted Area" (A-3); and the "Landlord's Improvement Area" (A-4). The preliminary term of the leases began on their "Effective Date" (August 25, 2004), and was to end on or before 90 days later, with Lofino's tender of possession. At that time, Lofino was to have used "diligent good faith efforts" to have "Landlord's Work, as set forth in Section 5.1 completed." See Article I, Section 1.3(B). The leases also provided for an "Outside Tender Date" of 120 days after the Effective Date, at which time Outback and Cheeseburger could terminate the lease if tender of possession had not yet occurred.

{¶ 5} Following tender, Outback and Cheeseburger had a period of time for construction before their initial lease term of ten years would begin. They could then renew the leases four times consecutively, for five years each time. After the leases expired, Outback and Cheeseburger were required to surrender the premises within thirty days.

{¶ 6} Article I, Section 1.5 of the leases outlined contingencies relating to inspection, permits and approvals, and title and survey review, and gave the tenants a right of termination if various contingencies were not met. Article I was followed by Article II (Rent), Article III (Utilities), and Article IV (Conduct of Business by Tenant).

{¶ 7} Improvements were discussed in Article V, which contained the following sections: (1 ) "5.1 Landlord's Work"; (2) "5.2 Tenant Contribution"; (3) "5.3 Tenant's Work"; and (4) "5.4 Ownership of Improvements." Section 5.1 stated, in pertinent part, as follows:

{¶ 8} "The following work (collectively `Landlord's Work') shall be done by Landlord exclusively, at Landlord's sole cost and expense:

{¶ 9} "(a) within 60 days from the date Tenant waives its contingencies as set forth in Section 1.5 of this Lease Date, Landlord shall have completed the work required (and provided Tenant with written verification of such completion) to provide that the following utilities are delivered underground to within five feet (5') of the proposed Building to be located on the Premises stubbed to the location designed for connection of such utilities on Tenant's final plans, operational and with sufficient capacity: (a) 120/208 volt, 1200 amps, 3 Phase electric line; (b) 11/2" water meter with 2" water line providing water pressure between 50 PSI and 70 PSI; (c) 6" gravity sewer line to a depth sufficient to accommodate Tenant's standard plumbing plan, and acceptable by local municipalities and utility companies; (d) 4" fire main; (e) 1" irrigation meter; (f) 3.5 million BTU gas line; (g) storm water management system; and (h) telephone conduit.

{¶ 10} "(b) within sixty (60) days from the date Tenant waives its contingencies set forth in Section 1.5 of this Lease, Landlord shall have constructed, pursuant to plans and specifications approved by Tenant, all necessary improvements and infrastructure for the Shopping Center located within that area designated on the Site Plan as `Landlord's Improvement Area' or any other work which is necessary to allow Tenant to obtain permits and approvals for construction of Tenant's intended improvements, and upon completion of those improvements to obtain a Certificate of Occupancy therefore, including without limitation, the parking areas, driveways and access roads (including all appropriate curb cuts and curbing), landscaping and irrigation, and lighting"

{¶ 11} "(c) None of the work as set forth in subparagraphs (a) and (b) above (collectively `Landlord's Work') shall be commenced unless and until written plans and specifications have been submitted and approved by Tenant, in Tenant's reasonable discretion (hereinafter called the `Landlord's Plans'). The Landlord's Plans shall include plans for all site work included in Landlord's Work. Landlord, at its sole cost and expense, shall prepare and submit the Landlord's Plans to Tenant within sixty (60) days from the Effective Date. Tenant shall have fifteen (15) days from receipt thereof to disapprove the Landlord's Plans. Any disapproval shall contain the specific changes desired by Tenant to obtain its approval. Tenant shall have five (5) days from receipt thereof to disapprove any revised Preliminary Plans. If Landlord and Tenant are unable to agree on the Preliminary Plans on or before sixty (60) days after the Effective Date, then Tenant or Landlord shall have the option of terminating this Lease upon written notice to the other party whereupon this Lease shall be of no further force and effect, Tenant shall be released from all obligations hereunder, and Tenant shall be immediately refunded all previously paid deposits, if any. The Preliminary Plans, as approved by Landlord and Tenant, shall be the `Final Plans.'

{¶ 12} "(d) On or before ninety (90) days from the Effective Date, Landlord shall have obtained all necessary permits, approvals or licenses required for Landlord's Work in accordance with the Final Plans (the `Landlord's Work Permits'). In the event Landlord is not able to obtain the Landlord's Work Permits within the aforementioned time period, Tenant shall have the right to terminate the Lease whereupon this Lease shall be of no further force or effect, Tenant shall be released from all obligations hereunder, and Tenant shall be immediately refunded all previously paid deposits, if any, and such right of termination shall continue until such time as the Landlord obtains the Landlord's Work Permits.

{¶ 13}

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Cite This Page — Counsel Stack

Bluebook (online)
2007 Ohio 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/outbackbuckeye-ii-v-lofino-trust-unpublished-decision-2-9-2007-ohioctapp-2007.