Reichert v. Lauren Internatl., Ltd. Edgetech, I.G., Inc.

2012 Ohio 4731
Ohio Court of Appeals·Decided October 9, 2012·No. 2012AP030019·Published·Cited by 1 cases

Opinion

[Cite as Reichert v. Lauren Internatl., Ltd. Edgetech, I.G., Inc., 2012-Ohio-4731.]

COURT OF APPEALS

TUSCARAWAS COUNTY, OHIO

FIFTH APPELLATE DISTRICT

GERHARD REICHERT : JUDGES:

: Hon. William B. Hoffman, P.J.

Plaintiff-Appellant/ : Hon. Sheila G. Farmer, J.

Cross-Appellee : Hon. Julie A. Edwards, J.

:

-vs- :

:

LAUREN INTERNATIONAL, LTD., : Case No. 12AP030019 EDGETECH, I.G., INC. :

:

Defendants-Appellees/ :

Cross-Appellants : OPINION

CHARACTER OF PROCEEDING: Appeal from the Court of Common Pleas, Case No. 2009CV101040

JUDGMENT: Affirmed/Reversed in Part & Remanded

DATE OF JUDGMENT: October 9, 2012

APPEARANCES: For Plaintiff-Appellant For Defendants-Appellees

SCOTT R. AUSTN WILLIAM S. CLINE 7799 Glenmore Drive JUDE B. STREB Powell, OH 43065 KRISTEN MOORE Millennium Center-Suite 300 STEPHEN W. FUNK 200 Market Avenue North 222 South Main Street P.O. Box 24213 Akron, OH 44308 Canton, OH 44701-4213

Farmer, J.

{¶1} On November 16, 1989, appellant, Gerhard Reichert, and his partner Michael Glover, principals of a company called Edgetech I.G. Ltd., entered into a Purchase Agreement with 170619 Canada Ltd. and appellee, now known as Lauren International, Ltd., wherein 170619 Canada Ltd. agreed to purchase Edgetech I.G. Ltd. and appellee Lauren agreed to purchase the principals' patent and technology rights to a foam spacer product marketed as "Super Spacer." In exchange, appellant and Mr. Glover received royalty rights and employment pursuant to an Employment Agreement with 170619 Canada Ltd., which later became Edgetech I.G. (1989) Ltd. The Purchase and Employment Agreements were entered into in Ontario, Canada.

{¶2} In 1994, appellee Lauren formed a new wholly-owned subsidiary corporation in Ohio called Edgetech I.G., Inc., appellee herein. Appellant began working for appellee Edgetech that same year.

{¶3} A dispute arose between the parties over the calculation of the royalty payments. On December 15, 2006, appellee Lauren filed an "Application" in Ontario, Canada, seeking an interpretation of the Purchase Agreement regarding the royalty payments. The outcome of this Canadian action found appellee Lauren had been properly calculating the amounts and it did not owe appellant any additional payments. The Canadian action ended on October 23, 2008.

{¶4} On October 21, 2009, appellant filed a complaint against appellees in the Court of Common Pleas for Tuscarawas County, Ohio, claiming breach of contract (Count I), unjust enrichment (Count II), and promissory estoppel (Count III). Appellant also sought an accounting and production of corporate books and records (Count IV).

{¶5} On December 17, 2009, appellees filed a motion to dismiss Counts I, II, and III for lack of subject matter jurisdiction as the counts arose under the parties' Purchase and Employment Agreements and Ontario would have jurisdiction over both agreements with exclusive jurisdiction over the Employment Agreement.

{¶6} On April 19, 2010, appellee Edgetech filed a motion for summary judgment on Count IV as appellant was not a shareholder and therefore had no right to inspect its books and records.

{¶7} By judgment entry filed September 21, 2010, the trial court dismissed Count II of the complaint, finding it was governed by the forum selection clause of the Employment Agreement which was Ontario.

{¶8} On September 27, 2010, appellant filed a motion for leave to amend Count II of the complaint.

{¶9} On September 30, 2010, appellees filed a motion for summary judgment on Counts I and III of the complaint. Appellees claimed Count I was barred by Ontario's two year statute of limitations for breach of contract claims and Counts I and III were barred by res judicata based upon the Ontario action.

{¶10} By judgment entry filed February 10, 2011, the trial court denied appellant's motion for leave to amend Count II of the complaint, dismissed Counts I and III, finding appellant's claims were barred under the doctrine of res judicata, and dismissed Count IV as to Edgetech, finding appellant did not have any statutory rights to inspect the books and records of appellee Edgetech.

{¶11} On November 23, 2011, appellee Lauren filed a motion for summary judgment on Count IV, claiming appellant was seeking to inspect its books and records

for an improper purpose. By judgment entry filed February 29, 2012, the trial court granted the motion.

{¶12} Appellant filed an appeal on March 9, 2012 and assigned the following errors:

I

{¶13} "THE TRIAL COURT ERRED IN GRANTING SUMMARY JUDGMENT ON PLAINTIFF'S CLAIM FOR BREACH OF CONTRACT IN COUNT I OF THE COMPLAINT."

II

{¶14} "THE TRIAL COURT ERRED IN DISMISSING COUNT II OF THE COMPLAINT BASED UPON A NON-APPLICABLE 1989 EMPLOYMENT AGREEMENT."

III

{¶15} "THE TRIAL COURT ERRED IN DENYING PLAINTIFF'S MOTION TO AMEND THE COMPLAINT."

IV

{¶16} "THE TRIAL COURT ERRED IN GRANTING SUMMARY JUDGMENT ON PLAINTIFF'S PROMISSORY ESTOPPEL CLAIM IN COUNT III OF THE COMPLAINT."

V

{¶17} "THE TRIAL COURT ERRED BY GRANTING SUMMARY JUDGMENT ON COUNT IV OF THE COMPLAINT."

{¶18} Appellees filed a cross-appeal on March 16, 2012 and assigned the following errors:

CROSS-ASSIGNMENT OF ERROR I

{¶19} "THE TRIAL COURT ERRED WHEN IT REFUSED TO APPLY THE TWO YEAR STATUTE OF LIMITATIONS OF THE PROVINCE OF ONTARIO, CANADA, THE SITUS OF THE EXECUTION AND PERFORMANCE OF THE CONTRACT AND THE PHYSICAL LOCATION OF THE MAJORITY OF THE CONTRACTING PARTIES, TO THE BREACH OF CONTRACT CLAIM OF PLAINTIFF WHEN THE EXPRESS TERMS OF THE CONTRACT SPECIFIED THAT ONTARIO LAW WOULD APPLY EXCEPT FOR ISSUES RELATING TO ESCROW."

CROSS-ASSIGNMENT OF ERROR II

{¶20} "WHERE AN AGREEMENT FOR THE SALE OF PATENT RIGHTS IS FUNDAMENTALLY LINKED TO THE AGREEMENT FOR THE EMPLOYMENT OF THE PATENT RIGHT HOLDER BY THE PURCHASER, AND WHERE THE AGREEMENTS MUST BE INTERPRETED AND APPLIED TOGETHER TO DETERMINE THE RIGHTS OF THE PARTIES, AND BOTH AGREEMENTS EXPRESSLY STATE THAT THE COURTS OF THE PROVINCE OF ONTARIO, CANADA HAVE JURISDICTION OVER THE RIGHTS OF THE PARTIES, IT IS ERROR FOR THE TRIAL COURT TO FAIL TO APPLY THE EXCLUSIVE JURISDICTION PROVISION OF THE EMPLOYMENT AGREEMENT TO THE PURCHASE AGREEMENT. THE TRIAL COURT THEREFORE ERRED WHEN IT FOUND THAT COUNTS I AND III OF APPELLANT'S COMPLAINT WERE NOT SUBJECT TO THE EXCLUSIVE JURISDICTION CLAUSE OF THE EMPLOYMENT AGREEMENT OF APPELLANT."

{¶21} This matter is now before this court for consideration.

I, IV

{¶22} Appellant claims the trial court erred in granting summary judgment to appellees on Counts I and III of the complaint, finding the claims were barred pursuant to the doctrine of res judicata.

{¶23} Summary Judgment motions are to be resolved in light of the dictates of Civ.R. 56. Said rule was reaffirmed by the Supreme Court of Ohio in State ex rel. Zimmerman v. Tompkins, 75 Ohio St.3d 447, 448, 1996-Ohio-211:

{¶24} "Civ.R. 56(C) provides that before summary judgment may be granted, it must be determined that (1) no genuine issue as to any material fact remains to be litigated, (2) the moving party is entitled to judgment as a matter of law, and (3) it appears from the evidence that reasonable minds can come to but one conclusion, and viewing such evidence most strongly in favor of the nonmoving party, that conclusion is adverse to the party against whom the motion for summary judgment is made. State ex. rel. Parsons v. Fleming (1994), 68 Ohio St.3d 509, 511, 628 N.E.2d 1377, 1379, citing Temple v. Wean United, Inc. (1977), 50 Ohio St.2d 317, 327, 4 O.O3d 466, 472, 364 N.E.2d 267, 274."

{¶25} As an appellate court reviewing summary judgment motions, we must stand in the shoes of the trial court and review summary judgments on the same standard and evidence as the trial court. Smiddy v. The Wedding Party, Inc. (1987), 30 Ohio St.3d 35.

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Reichert v. Lauren Internatl., Ltd. Edgetech, I.G., Inc., 2012 Ohio 4731 (Ohio Ct. App. 2012).

2012 Ohio 4731 (Reichert v. Lauren Internatl., Ltd. Edgetech, I.G., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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