Patel v. Strategic Group, L.L.C.

2020 Ohio 4990, 161 N.E.3d 42
CourtOhio Court of Appeals
DecidedOctober 22, 2020
Docket109043
StatusPublished
Cited by17 cases

This text of 2020 Ohio 4990 (Patel v. Strategic Group, 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
Patel v. Strategic Group, L.L.C., 2020 Ohio 4990, 161 N.E.3d 42 (Ohio Ct. App. 2020).

Opinion

[Cite as Patel v. Strategic Group, L.L.C., 2020-Ohio-4990.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

BIPIN PATEL, :

Plaintiff-Appellee, : No. 109043 v. :

STRATEGIC GROUP, L.L.C., :

Defendant-Appellant. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED IN PART AND VACATED IN PART RELEASED AND JOURNALIZED: October 22, 2020

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-18-897461

Appearances:

Kenneth J. Fisher, Co., L.P.A., Kenneth J. Fisher, and Dennis A. Nevar, for appellee.

The Law Office of Jaye M. Schlachet, Eric M. Levy, and Jaye M. Schlachet, for appellant.

RAYMOND C. HEADEN, J.:

Defendant-appellant Strategic Group, L.L.C. (“Strategic Group”)

appeals the trial court’s order entering judgment in favor of plaintiff-appellee Bipin Patel (“Patel”) and against Strategic Group on Patel’s claims of breach of contract

and conversion, with an award of damages in the amount of $50,000. For the

reasons that follow, we affirm in part and vacate in part.

I. Factual and Procedural History

On February 13, 2018, Strategic Group purchased the commercial

real estate located at 1877 Triplett Boulevard, Akron, Ohio for $95,000 (“real

property”). Strategic Group then advertised the real property for sale through the

online website BizBuySell.

Patel, a resident of Alabama, communicated several times with Shadi

Taha (“Taha”), a co-manager of Strategic Group, to discuss the real property. On

March 5, 2018, Taha indicated via text message that the convenience store located

on the real property had been subject to a lease agreement. According to Patel, Taha

advised him that the underlying lease agreement was expiring, and Patel could

either renew the lease or opt to run the convenience store on his own. Taha’s text

message read “renew the lease or take over!!!” Patel’s intent was to purchase the

real property and to personally operate the convenience store — he did not want the

convenience store subject to an underlying lease agreement.

Taha provided differing testimony. Taha claimed he informed Patel

the lease agreement was in place with a few years remaining on the underlying lease.

Per Taha, Patel asked if Strategic Group would negotiate with the current tenant and

attempt to terminate the lease agreement. Taha notified Patel that Strategic Group would not attempt such negotiations, but Patel could pursue those options once he

owned the real property.

Patel, along with three other individuals, traveled to Ohio to inspect

the real property in early March 2018. On March 10, 2018 (“the March meeting”),

Patel and his associates met Taha at a local Starbucks. Patel had not retained an

attorney at that point in time.

The parties provided contrary testimony regarding the documents

exchanged at the March meeting. Patel denied that Taha provided him with a

purchase agreement or lease agreement at that time. Patel claimed he first received

copies of the purchase agreement and lease agreement, by email, following the

March meeting. Conversely, Taha stated he presented the proposed purchase

agreement — that represented the sale of the real property from Strategic Group to

Patel for the sum of $550,000 — as well as a copy of the underlying lease at the

March meeting. Taha testified that Patel and his associates examined the

documents for approximately one hour.

All parties agree that the purchase agreement noted Patel’s

remittance of $50,000 earnest money. Patel paid the earnest money at the March

meeting with three personal checks. Patel’s father and two of Patel’s friends each

provided a check; the checks were made payable to Strategic Group. Strategic Group

did not place the earnest money in escrow, as required under the purchase

agreement, but deposited the funds in its personal bank account. Patel provided conflicting testimony as to why he submitted the

earnest money at the March meeting, prior to execution of the purchase agreement.

Patel first testified that Taha required payment of the earnest money before he

executed the purchase agreement. Patel later conceded he was anxious to purchase

the real property and informed Taha that he would pay the earnest money and

subsequently have the documents reviewed by his attorney.

Patel and Taha did not meet again following the March meeting, but

exchanged copies of the relevant documents by email. While Taha asserted he

provided the purchase agreement and lease agreement at the March meeting, Patel

claimed receipt of the purchase agreement on March 11, 2018, and a partial lease on

March 12, 2018. The partial lease agreement did not contain the pages that would

have shown the lessee agreed to the available options, thereby committing to a lease

extension until November 2020.

According to Taha, he provided Patel with duplicate copies of the

lease on March 13, 2018, and March 20, 2018, and Patel should have known the real

property was subject to the underlying lease. The entire lease agreement was over

70 pages and Taha admitted he never read the document in full. Patel maintained

he did not receive the entire lease agreement until after his receipt of the title

commitment.

The parties negotiated the purchase agreement by adding to the

existing, printed paragraphs with hand-written language that was initialed by both

buyer and seller. The document was executed on March 13, 2018. Taha then contacted Barristers Title of Ohio (“Barristers”) on March 14, 2018, to complete the

title work associated with the purchase agreement.

Patel received a copy of the title commitment from Barristers on

March 19, 2018. The title commitment included a handwritten notation that the

buyer and seller — Patel and Strategic Group — would handle the assignment of the

lease outside of escrow. This was Patel’s first notice that the underlying lease

agreement was not expired.

Upon receipt of the title commitment, Patel provided his attorney,

Christian Pereyda (“Pereyda”), with the documents relative to the purchase

agreement. Pereyda penned a letter to Strategic Group, on Patel’s behalf, stating

Patel would not go forward with the contract because the property was not

satisfactory for its intended purpose. The letter requested the return of Patel’s

earnest money. Patel may also have contacted Strategic Group directly and

indicated that because the lease was not expired, he was terminating the agreement

and requested the return of his earnest money.

Taha asserted that he was contacted by Patel after March 19, 2018,

and asked to renegotiate the purchase agreement for a lower selling price. Patel

conceded he attempted to negotiate a lower price after Taha refused to return the

earnest money, but the parties did not agree upon alternate terms.

Patel insisted he terminated the purchase agreement as permitted by

the document’s express terms and demanded repayment of his $50,000 earnest

money. Strategic Group refused to accept Patel’s termination notice and, instead, argued it was entitled to the earnest money because Patel breached the contract

when he failed to complete the purchase of the real property.

Due to Strategic Group’s refusal to return the earnest money, Patel

filed suit against Strategic Group on May 5, 2018, claiming breach of contract,

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 4990, 161 N.E.3d 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patel-v-strategic-group-llc-ohioctapp-2020.