R.L.R. Invests., L.L.C. v. Cross Street Partners, L.L.C.

2024 Ohio 2292
CourtOhio Court of Appeals
DecidedJune 14, 2024
Docket30034
StatusPublished
Cited by1 cases

This text of 2024 Ohio 2292 (R.L.R. Invests., L.L.C. v. Cross Street Partners, 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
R.L.R. Invests., L.L.C. v. Cross Street Partners, L.L.C., 2024 Ohio 2292 (Ohio Ct. App. 2024).

Opinion

[Cite as R.L.R. Invests., L.L.C. v. Cross Street Partners, L.L.C., 2024-Ohio-2292.]

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

R.L.R. INVESTMENTS LLC : : Appellant : C.A. No. 30034 : v. : Trial Court Case No. 2023 CV 04657 : CROSS STREET PARTNERS LLC : (Civil Appeal from Common Pleas : Court) Appellee : :

...........

OPINION

Rendered on June 14, 2024

ANTHONY C. WHITE and THOMAS W. PALMER, Attorneys for Appellant

TOBY K. HENDERSON, BRYAN K. PENICK and COREY H. BUSHLE, Attorneys for Appellee

.............

TUCKER, J.

{¶ 1} R.L.R. Investments, LLC (“RLR”) appeals from the trial court’s decision and

entry granting a motion for preliminary injunction filed by defendant Cross Street Partners,

LLC (“CSP”). -2-

{¶ 2} The trial court entered the injunction to prevent RLR from proceeding with a

pending arbitration against an entity known as SP Rotunda, LLC (“Rotunda”). RLR

contends the trial court erred in granting CSP injunctive relief for numerous reasons. In

particular, RLR argues that (1) CSP lacked standing to enjoin an arbitration to which it is

not a party, (2) CSP failed to assert a legal claim for which injunctive relief could be a

remedy, (3) CSP did not show a likelihood of success on the merits of its defense, (4)

CSP failed to demonstrate irreparable harm absent an injunction, (5) the trial court

erroneously ruled on the merits of an emergency arbitration motion, and (6) the trial court

failed to provide specificity regarding the scope of its injunction.

{¶ 3} Upon review, we find RLR’s first argument to be persuasive. Accordingly, the

trial court’s order enjoining RLR from proceeding with its pending arbitration against

Rotunda will be reversed, and the injunction will be dissolved.

I. Background

{¶ 4} The present dispute concerns an easement traversing the downtown Dayton

Arcade building. The easement included an enclosed walkway connecting an office

building on one side of the Arcade to a parking garage on the other side. RLR owns the

office building and the parking garage, and its tenants have a right to use the pedestrian

easement. The Arcade is owned by Rotunda. CSP is a real-estate developer acting as

Rotunda’s agent to perform construction activities and renovate the Arcade.

{¶ 5} In May 2023, CSP informed RLR that the walkway would be closed

temporarily during the construction period. In June 2023, RLR commenced an arbitration

proceeding against CSP, alleging breach of the easement agreement and trespass. CSP -3-

responded that it was not a party to the easement agreement and was not bound by an

arbitration clause contained therein. In August 2023, RLR dismissed CSP from the

arbitration and named Rotunda as a party to it. That same month, RLR filed a complaint

against CSP in the Montgomery County Common Pleas Court. The complaint included a

cause of action for trespass based on CSP’s alleged interference with RLR’s rights under

the easement agreement. RLR sought injunctive relief and damages against CSP.

{¶ 6} In October 2023, the trial court granted RLR a temporary restraining order

preventing CSP from closing the easement. In November 2023, a magistrate granted RLR

a preliminary injunction prohibiting CSP from closing or restricting access to the easement

until January 6, 2024. The basis for the ruling was that a period of required prior notice to

RLR would not exist until that date. Both parties filed objections to the magistrate’s

decision. On January 17, 2024, CSP also moved for its own injunctive relief to prevent

RLR from arbitrating against Rotunda.

{¶ 7} On January 23, 2024, the trial court filed separate rulings resolving (1) the

parties’ objections to the magistrate’s decision granting RLR a preliminary injunction and

(2) CSP’s motion for injunctive relief to halt RLR’s arbitration against Rotunda. With

regard to the former issue, the trial court noted that a 90-day notice requirement to close

the walkway had been satisfied as of January 7, 2024. The trial court then rejected RLR’s

argument that temporary closure of the walkway during construction was unnecessary.

As a result, the trial court overruled RLR’s motion for a preliminary injunction against CSP.

The trial court noted, however, that the preliminary injunction hearing before the

magistrate had not been consolidated with a trial on the merits. Therefore, the trial court -4-

emphasized that its denial of preliminary injunctive relief to RLR did “not affect the merits

of any party’s claims or defenses” beyond its denial of preliminary injunctive relief.

{¶ 8} With regard to CSP’s motion for an injunction to prevent RLR from arbitrating

with Rotunda, the trial court noted that RLR had invoked its jurisdiction and had sought

injunctive relief against CSP to prevent temporary closure of the walkway based on a lack

of necessity. The trial court also noted that RLR had filed a supplemental brief in support

of its objections to the magistrate’s decision. Therein, RLR had claimed that there was a

planned permanent encroachment on the easement by constructing a hotel room in it.

The trial court opined that RLR was not entitled to arbitrate this issue against Rotunda

because its supplemental brief had placed the permanent-encroachment issue squarely

within the common pleas court case.

{¶ 9} The trial court proceeded to find that the alleged permanent encroachment

based on Rotunda’s constructing a hotel room in the footprint of the easement was

“indefinite, uncertain, and speculative.” The trial court added: “The basis for arbitration is

contingent upon encroachment. Plaintiffs have little or no evidence that encroachment

will occur. * * * Thus, the basis for AAA [arbitration] activity is weak or non-existent. There

really is no basis. Thus, there is no grounds to go to the AAA.” See January 23, 2023

Decision and Entry Granting Defendant’s Motion for Preliminary Injunction at 5.

Ultimately, the trial court held that the permanent-encroachment issue was not “ripe.” Id.

The trial court then concluded as follows:

Defendant is likely to succeed on the merits of its defense. RLR has

not shown any grounds for violation of the easement. There is no -5-

encroachment on the easement. Thus, Plaintiff has no right to arbitrate that

issue. Plaintiff has litigated the issues of encroachment, necessity, and

notice before the state court, Montgomery County, Ohio. The law restricts

litigating the same issues simultaneously or successively before multiple

for[u]ms. Defendant has shown a substantial likelihood to succeed on this

component.

Defendants [sic] will suffer irreparable harm if Plaintiff can pursue the

same claim before AAA. Defendants [sic] are proceeding with construction.

Delay in construction will potentially cause great financial loss in terms of

financing, tax credits, funding, and numerous construction contracts. A[n]

AAA proceeding may result in an order which would suspend construction.

This threatens irreparable harm to Defendants [sic].

An injunction in this court serves the public interest. It furthers the

interest of third parties such as contractors. The interest[s] of third parties

are advanced. This injunction promotes that.

All residual rights remain in the possessory or servient estate, the

servient land owner may make any use of his property that does not

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Bluebook (online)
2024 Ohio 2292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rlr-invests-llc-v-cross-street-partners-llc-ohioctapp-2024.