Oxford Campus I., L.L.C. v. Michael

2024 Ohio 5614, 259 N.E.3d 54
CourtOhio Court of Appeals
DecidedNovember 27, 2024
Docket24AP-36
StatusPublished
Cited by1 cases

This text of 2024 Ohio 5614 (Oxford Campus I., L.L.C. v. Michael) 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
Oxford Campus I., L.L.C. v. Michael, 2024 Ohio 5614, 259 N.E.3d 54 (Ohio Ct. App. 2024).

Opinion

[Cite as Oxford Campus I., L.L.C. v. Michael, 2024-Ohio-5614.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Oxford Campus I, LLC, :

Plaintiff-Appellee, : No. 24AP-36 (C.P.C. No. 21CV-6498) v. : (REGULAR CALENDAR) Fadi Michael, :

Defendant-Appellant. :

D E C I S I O N

Rendered on November 27, 2024

On brief: Kemp, Schaeffer & Rowe, Co., L.P.A., Scott N. Schaeffer, and Daniel A. Yarmesch, for appellee. Argued: Daniel A. Yarmesch.

On brief: The Law Office of Josh Brown LLC, and Joshua J. Brown, for appellant. Argued: Joshua J. Brown.

APPEAL from the Franklin County Court of Common Pleas

JAMISON, J. {¶ 1} Defendant-appellant, Fadi Michael, appeals the decision of the Franklin County Court of Common Pleas granting summary judgment and awarding damages and attorney’s fees in favor of plaintiff-appellee, Oxford Campus I, LLC (“Oxford”). For the following reasons, we affirm the trial court’s judgment on the merits of the breach of lease action and associated damages, and reverse and remand the trial court’s judgment awarding attorney’s fees.

I. FACTS AND PROCEDURAL HISTORY {¶ 2} Oxford owns a 1,350 square foot commercial property located in Columbus, Ohio near The Ohio State University campus. Michael entered into a lease with Oxford in May 2009 and extended the term of the lease until May 31, 2021. During that time, Michael No. 24AP-36 2

operated a bar on the premises. The parties agree that after May 31, 2021, the lease continued on a “month-to-month” basis with rent set at $1,000 per month. (Compl. at ¶ 6- 7, First Am. Answer at ¶ 6-7.) On June 18, 2021, Oxford sent Michael written notice terminating the lease, and Michael vacated the premises on or about August 10, 2021. {¶ 3} On October 13, 2021, Oxford filed a complaint against Michael alleging he breached the lease by failing to pay $2,000 in rent and various utility bills for July and August 2021, failing to leave the premises in a “broom swept” condition, defacing and damaging the property in various ways, and removing signage and doors. (Compl. at 2.) As a result of the alleged breaches, Oxford claimed Michael caused $28,930 in damages consisting of $2,000 in unpaid rent and $26,930 for cost of repairs and clean up. Oxford stated it applied Michael’s $1,000 security deposit to partially offset those damages, leaving $27,930 plus interest, attorney’s fees, and court costs. {¶ 4} On October 19, 2021, Michael filed an answer along with counterclaims for breach of contract and conversion pertaining to Oxford’s use of the security deposit. After Oxford moved to dismiss the conversion claim, Michael filed a notice of voluntary dismissal of that claim without prejudice and amended his answer. {¶ 5} Oxford moved for summary judgment on December 13, 2021, arguing it was entitled to judgment in its favor as a matter of law as to the damages it sustained from Michael’s breach of the lease obligations for rent, utilities, repairs and maintenance, alterations, and termination. Oxford further argued summary judgment on Michael’s counterclaim was warranted in its favor under the lease default provision. Oxford provided the following attachments to support summary judgment: the affidavit of Oxford’s manager, Scott Solomon; the original lease and extensions; documentation of utility costs; a contractor’s invoice for trash removal and haul-away of various items; a painter’s invoice for sanding graffiti off of the wood walls and trim, dry wall repairs, skim coating the dry wall to address “carvings,” priming the walls and ceiling to cover graffiti, and application of two coats of paint; an invoice to replace a sign; an invoice to replace two metal doors; an invoice to build and install two gates; and an invoice for replacing windows. (Dec. 13, 2021 Mot. for Summ. Jgmt., Ex. A-4.) {¶ 6} Michael filed a memorandum in opposition to summary judgment on December 26, 2021. Within it, Michael provided a partial confession on judgment No. 24AP-36 3

admitting to owing two month’s rent and payment of certain utilities for July and August 2021; he did not admit to the amount he owed and requested a hearing to establish damages. Michael further asserted that several issues of material fact remain to prevent summary judgment, including whether: (1) the alleged damage constituted “normal wear and tear” on the facts of this case and “especially given * * * the area, and the nature of the establishment”; (2) Michael caused the damage to the property; (3) Michael is entitled to return of his deposit; (4) Michael owns the doors and sign; (5) Oxford failed to mitigate damages by failing to maintain the property; (6) Oxford acted in good faith in “changing the normal operation of the lease and forcing [him] out on a short time frame”; (7) any alleged damages are “de minimus”; (8) any of the damage, such as the “graffiti and etchings” had a business purpose; (9) and Michael’s actions were not “abnormal” considering the “low-rent commercial” nature of the property. (Memo. in Opp. at 4, 6-7.) Michael attached his own affidavit to support his memorandum in opposition to summary judgment. {¶ 7} The trial court issued a decision and judgment in Oxford’s favor on July 12, 2023. At the outset, the trial court determined that Oxford performed under the lease and that Michael admitted he owes Oxford rent and utilities for two months. The trial court further determined that Michael breached Article XXIII, Termination, by failing to remove all of his property, remove trash, and leave the premises in a broom swept condition, and breached Article VI, Repairs and Maintenance, by failing to maintain, in good condition with reasonable wear and tear excepted, the plate glass, glass doors, exterior windows and doors, and by failing to generally keep the premises in “good order and report any damage” to Oxford. (July 12, 2023 Decision at 7, citing Mot. for Summ. Jgmt., Ex. A-1 at 6.2.) {¶ 8} In making this determination, the trial court found each of Michael’s arguments that summary judgment should be precluded lacked merit. Specifically, the trial court found no issue of material fact concerning reasonable wear and tear of the property considering the nature of the damage Oxford documented in comparison to the obligation in the lease for Michael to keep the property in good condition. The trial court found Michael’s argument about who caused the damage to the walls and windows irrelevant since he was responsible for the condition of the premises under the terms of the lease. The trial court also found no question of material fact existed concerning Oxford applying the No. 24AP-36 4

security deposit as an offset since Michael admitted he owed rent and utility bills and did not present any evidence to refute the amounts provided by Oxford. {¶ 9} Concerning the doors and the sign, the trial court determined that an issue of material fact did not arise as to whether Michael can be liable for removing doors and the sign under Article VII, Alterations and Article XX, Signage. The trial court reasoned that doors are not “trade fixtures” or equipment under the lease terms and the applicable lease provision expressly states alterations, changes, additions, or improvements made to the premises belong to Oxford. (July 12, 2023 Decision at 11.) Furthermore, “[w]hile a sign may be a trade fixture, assuming [Michael] owned the sign, he would still be liable for any damage to the property resulting in its removal under the Lease” and he “provided no evidence that he obtained [Oxford]’s written approval to install a sign.” (July 12, 2023 Decision at 11.) {¶ 10} The trial court then found no genuine issue of material fact remained as to whether Oxford mitigated its damages by failing to conduct regular maintenance since Michael accepted responsibility for the maintenance and repairs at issue.

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Cite This Page — Counsel Stack

Bluebook (online)
2024 Ohio 5614, 259 N.E.3d 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oxford-campus-i-llc-v-michael-ohioctapp-2024.