Prime Invests., L.L.C. v. Altimate Care, L.L.C.

2022 Ohio 1181
CourtOhio Court of Appeals
DecidedApril 7, 2022
Docket20AP-526
StatusPublished
Cited by20 cases

This text of 2022 Ohio 1181 (Prime Invests., L.L.C. v. Altimate Care, 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
Prime Invests., L.L.C. v. Altimate Care, L.L.C., 2022 Ohio 1181 (Ohio Ct. App. 2022).

Opinion

[Cite as Prime Invests., L.L.C., v. Altimate Care, L.L.C., 2022-Ohio-1181.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Prime Investments, LLC, :

Plaintiff-Appellant, : No. 20AP-526 (C.P.C. No. 19CV-1543) v. : (REGULAR CALENDAR) Altimate Care, LLC et al., :

Defendants-Appellees. :

D E C I S I O N Rendered on April 7, 2022

On brief: Cooper & Elliot, LLC, Barton R. Keyes, and Adam P. Richards for appellant. Argued: Barton R. Keyes.

On brief: The Saks Law Office, LLC, and Jeffrey Saks, for appellee. Argued: Richard Schoenstein.

APPEAL from the Franklin County Court of Common Pleas

JAMISON, J. {¶ 1} Plaintiff-appellant, Prime Investments, LLC ("Prime"), appeals from a judgment of the Franklin County Court of Common Pleas, dismissing Prime's complaint against defendants-appellees, Irene Mendyuk, Ninell Mendyuk, and Altimate Care LLC ("Altimate"), for failure to state a claim upon which relief may be granted. For the reasons that follow, we reverse. I. FACTS AND PROCEDURAL HISTORY {¶ 2} In June 2015, appellee, Irene Mendyuk, an Officer and Shareholder in Altimate, contacted Prime, a Maryland Limited Liability Company, to discuss retaining Prime to help sell Altimate. (Apr. 17, 2019 First Am. Compl. at 2.) Over much of the next year, Prime worked with appellees to obtain financial information needed for Prime's No. 20AP-526 2

valuation. Id. Appellees executed a Broker Agreement with Prime on behalf of Altimate dated June 9, 2016. Id. {¶ 3} The Broker Agreement provides in relevant part as follows:

In the event that the Business is sold, exchanged, leased or otherwise disposed of within twenty-four months after the Selling Period or any extension thereof to any person, firm or other entity whom Seller or Broker or any agent of Seller or Broker, during the Selling Period or any extension thereof, obtained a signed Non-Disclosure Agreement, Seller shall immediately pay Broker's commission as set forth herein, as if such sale, exchange, lease or other disposition occurred during the Selling Period. (First Am. Compl., Ex. A at 2.)

{¶ 4} In November 2016, Prime and the appellees agreed to extend the term of the Broker Agreement through November 28, 2017. (First Am. Compl. at 2) Within the Selling Period as extended, Prime obtained a signed non-disclosure agreement from and on behalf of non-party Michael Pollak and any potential investors, equity partners, and agents. (First Am. Compl. at 3.) {¶ 5} Effective June 22, 2018, appellees executed a Membership Purchase Agreement with one of Pollak's potential investors or equity partners. Id. In that Membership Purchase Agreement, appellees represented and warranted that they had engaged Prime as their broker in connection with the agreement. Id. According to the complaint, "[i]n early December, the closing of the sale appeared imminent." Id. at 4. Thereafter, Prime emailed a commission statement to the buyer's counsel (with figures based on information then known to Prime), with a copy to defendants' counsel. The complaint alleges that "Ninell Mendyuk denied that defendants had signed a 7% commission agreement," and informed Prime "the deal was off." Id. {¶ 6} The complaint provides that in January 2019, a potential investor or equity partner of Pollak purchased Altimate for $13 million, but appellees refused to pay Prime. The complaint does not identify the purchaser by name. {¶ 7} On February 20, 2019, Prime filed its complaint against appellees alleging claims for breach of contract and unjust enrichment. Appellees filed a motion to dismiss the complaint, pursuant to Civ.R. 12(B)(6), on April 9, 2019. Prime, however, amended the No. 20AP-526 3

complaint on April 17, 2019 to add a claim for promissory estoppel. Prime's amended complaint expressly incorporated the allegations in the original complaint and attached contract documents thereto. {¶ 8} On May 1, 2019, appellees filed a motion to dismiss the amended complaint, pursuant to Civ.R. 12(B)(5) and 12(B)(6), alleging insufficiency of service of process and failure to state a claim upon which relief may be granted. On October 23, 2020, the trial issued a decision and judgment entry dismissing Prime's amended complaint for failure to state a claim for relief. In dismissing in breach of contract claim, the trial court concluded: Prime's Amended Complaint merely asserts that Prime obtained a signed NDA [Non-disclosure agreement] from Pollak on October 26, 2017, just one month before the expiration of the Selling Period. Furthermore, Prime's Amended Complaint never identifies the actual buyer of Altimate's business. The Court agrees with Altimate that such omission from Prime's Amended Complaint demonstrates that Defendants did not procure the actual buyer of Altimate. Rather, as Altimate suggests in its Reply, what appears to have happened here is that Pollak assumed the role of broker. Prime introduced Altimate to Pollak, and Pollak ultimately secured a buyer ready, willing, and able to purchase Defendants' business-Pollak's "potential investors" and/or "potential equity partners." Accordingly, the Court declines to allow Prime's claim that it procured a buyer during the Selling Period to proceed because the Amended Complaint fails to sufficiently state such claim to survive Defendants' Civ.R. 12(B)(6) Motion to Dismiss. (Oct. 23, 2020 Decision & Entry at 26-27.)

{¶ 9} The trial court also dismissed Prime's equitable claims sounding in unjust enrichment and promissory estoppel for failure to state a claim upon which relief may be granted. Prime timely appealed to this court from the October 23, 2020 judgment. II. ASSIGNMENT OF ERROR {¶ 10} Appellant assigns the following as trial court error: The trial court erred in granting appellees' motion to dismiss for failure to state a claim.

III. STANDARD OF REVIEW No. 20AP-526 4

{¶ 11} Civ.R. 12(B)(6) permits a defendant to move the trial court for dismissal of a complaint for failure to state a claim upon which relief can be granted. A Civ.R. 12(B)(6) motion to dismiss is a procedural device that tests the sufficiency of the complaint. O'Brien v. Univ. Community Tenants Union, Inc., 42 Ohio St.2d 242 (1975). In ruling on a motion to dismiss pursuant to Civ.R. 12(B)(6), the court "must construe the complaint in the light most favorable to the plaintiff, presume all factual allegations in the complaint are true, and make all reasonable inferences in favor of the plaintiff." Henton v. Ohio Dept. of Rehab. & Corr., 10th Dist. No. 16AP-768, 2017-Ohio-2630, ¶ 7, citing Coleman v. Columbus State Community College, 10th Dist. No. 15AP-119, 2015-Ohio-4685, ¶ 6, citing Mitchell v. Lawson Milk Co., 40 Ohio St.3d 190, 192 (1988). The dismissal of a complaint for failure to state a claim is proper when it appears, beyond doubt, that the plaintiff can prove no set of facts entitling him to relief. Hostacky v. Ohio Dept. of Rehab. & Corr., 10th Dist. No. 21AP-349, 2021-Ohio-4464, ¶ 4. " '[A]s long as there is a set of facts, consistent with the plaintiff's complaint, which would allow the plaintiff to recover, the court may not grant a defendant's motion to dismiss.' " Estate of Tokes v. Dept. of Rehab. & Corr., 10th Dist. No. 18AP-723, 2019-Ohio-1794, ¶ 12, quoting York v. Ohio State Hwy. Patrol, 60 Ohio St.3d 143, 145 (1991). {¶ 12} When reviewing a decision on a Civ.R. 12(B)(6) motion to dismiss for failure to state a claim upon which relief can be granted, this court's standard of review is de novo. Foreman v. Ohio Dept. of Rehab. & Corr., 10th Dist. No. 14AP-15, 2014-Ohio-2793, ¶ 9. IV. LEGAL ANALYSIS A. Assignment of Error

1. Breach of Contract

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Bluebook (online)
2022 Ohio 1181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prime-invests-llc-v-altimate-care-llc-ohioctapp-2022.