RYS Holdings, L.L.C. v. Virus Gaming Network, L.L.C.

2025 Ohio 2261
Ohio Court of Appeals·Decided June 27, 2025·No. L-24-1239·Published

Opinion

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT

LUCAS COUNTY

RYS Holdings, LLC Court of Appeals No. L-24-1239 Appellee Trial Court No. CI0202301345 v. Virus Gaming Network, LLC, et al. DECISION AND JUDGMENT

Appellants Decided: June 27, 2025

*****

Eugene F. Canestraro, Esq., for appellants.

Daryl K. Rubin, Esq., for appellee.

*****

MAYLE, J.

{¶ 1} Appellant, Mohamad Nasser, appeals the September 16, 2024 decision of the Lucas County Court of Common Pleas granting judgment in favor of appellee, RYS Holdings, LLC. For the following reasons, we affirm.

I. Background and Facts

{¶ 2} This case arose from a dispute over a commercial lease. In October 2019, lessor “RYS, LLC” and lessee “Virus Gaming Lounge LLC” entered into a three-year lease for space in a Toledo shopping center to be used as an “E Sports Gaming Lounge.” In addition to signatures from a witness and a notary, the signature page of the lease shows that Jabbar Yousif signed on the line over “RYS, LLC.” Yousif is the managing member of RYS Holdings. Nasser signed on the line over “Mohamad Nasser, Individually.” Nasser is “the sole Officer / Member / Owner” of Virus Gaming Network, LLC (“Virus Network”), which formerly did business as Virus Gaming Lounge (“Virus Lounge”). Neither Nasser nor Yousif signed the lease a second time. The only other place Nasser is mentioned in the lease is in the section designating where to send notices.

{¶ 3} Throughout the case, there has been significant confusion about the identities of the businesses that were parties to the lease. The parties do not dispute that “RYS, LLC” and “Virus Gaming Lounge LLC”—the only two businesses mentioned in the lease—were not the actual names of their business entities. RYS, LLC was actually RYS Holdings, LLC, and Virus Gaming Lounge, LLC was actually Virus Gaming Network, LLC. While this case was pending, the parties registered the business names in the lease with the Ohio secretary of state. RYS Holdings registered “RYS, LLC” as a fictitious name, and Virus Network registered “Virus Gaming Lounge, LLC” as a trade name. In 2021, Virus Network registered “Virus Gaming Lounge”—without the “LLC”—as a trade name. The parties consented to the trial court taking judicial notice of the secretary of state filings. Michael Yousif, a manager for RYS Holdings and the person who drafted the lease, testified at his deposition that he used “Virus Gaming Lounge LLC” in the lease because it was the business name that Nasser provided. At his deposition, Nasser denied telling Michael or Yousif that Virus Gaming Lounge, LLC was the name of his business. Instead, he claimed that he gave Michael the correct name of Virus Gaming Network, LLC, but Michael put the wrong name in the lease.

{¶ 4} The parties do not dispute that no one made payments under the lease from October 2019 to January 2021, when Nasser returned the keys to RYS Holdings.

{¶ 5} RYS Holdings filed suit for the unpaid rent. In count one of its complaint, it alleged that it agreed to lease the space in the shopping center to Virus Lounge in October 2019 and claimed that Virus Network was doing business as Virus Lounge. After that, “Virus Gaming Network, LLC, d/b/a Virus Gaming Lounge, LLC” failed to pay rent as required by the terms of the lease and owed RYS Holdings a total of $36,700 for unpaid rent and fees. In count two of the complaint, which is titled “GUARANTY,” RYS Holdings “reallege[d] and reaffirm[ed] each and every allegation as contained in Count One . . .” and claimed that “Mohammad Nassar [sic] executed the foregoing commercial lease on behalf of Virus Gaming Network, LLC., doing business as Virus Gaming Lounge, LLC and in an individual capacity and therefore is individually liable for those sums due and owing under said lease . . . .” In other words, RYS Holdings claimed that Nasser’s single signature on the lease bound both Virus Network the business entity and Nasser, personally.

{¶ 6} Before the parties submitted their secretary of state filings related to their business names, they each filed a motion for summary judgment. The trial court denied the motions because there were genuine issues of material fact regarding the registration statuses of the names RYS, LLC and Virus Gaming Lounge, LLC—i.e., it was unclear whether those names were registered with the secretary of state as trade names or fictious names or were not registered at all.

{¶ 7} After the trial court denied their motions for summary judgment, the parties submitted their secretary of state filings, and each filed a second motion for summary judgment. In its motion, RYS Holdings argued that Nasser was personally liable for the unpaid rent because he was acting as the agent for a “previously fictitious” principal, he did not object to or correct the lease naming “Virus Gaming Lounge, LLC” as the lessee, he signed the lease “Individually” and understood that he was signing in his personal capacity, and RYS Holdings “relied upon [Nasser’s] representation that he would be individually liable on the contract . . . .”

{¶ 8} In their responses, Nasser and Virus Network admitted that Virus Network was liable for the unpaid rent and conceded that RYS Holdings was entitled to summary judgment on count one of the complaint. However, they argued that RYS Holdings was not entitled to summary judgment on count two, and, in fact, they were entitled to summary judgment on that count. They claimed that Nasser could not be personally liable for the unpaid rent because Virus Lounge was the only lessee in the lease; one of RYS Holdings’s members identified the lessee as an Ohio limited liability company and knew that Nasser was an agent of the LLC; RYS Holdings wrote the lease with a single lessee, as shown by its use of the word “individually” after Nasser’s name and the inclusion of only one signature line for Nasser to sign; the lease does not include a personal guaranty from Nasser; and, assuming that there were two obligors under the lease (i.e., Virus Lounge/Virus Network and Nasser were both supposed to be bound by its terms), the lease was improperly executed and violated the statute of frauds.

{¶ 9} In its decision on the second motions for summary judgment, the trial court granted RYS Holdings’s motion in part, denied RYS Holdings’s motion in part, and denied Nasser and Virus Network’s motion. The court first found that RYS Holdings was able to maintain its contract claim against Virus Network and Nasser, despite its name not appearing in the lease, because it had registered RYS, LLC as a fictitious name, which enabled it to maintain an action on a contract made using the fictitious name. It went on to determine that (1) the lease was not ambiguous; (2) Nasser’s signature—over the typewritten “Mohamad Nasser, Individually”—bound him personally but did not bind a “different, unnamed party”; (3) the form of Nasser’s signature did not indicate that he was signing on behalf of a business entity, i.e., it did not include the name of the corporate principal, words of agency, or Nasser’s corporate title; and (4) Virus Lounge being named as the lessee did not preclude Nasser from being individually liable under the lease, and the “inclusion of the word ‘Individually’ after [] Nasser’s printed name renders the Lease unambiguous as to [] Nasser’s individual obligations thereunder.” Therefore, the court found Nasser liable for the unpaid rent.

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RYS Holdings, L.L.C. v. Virus Gaming Network, L.L.C., 2025 Ohio 2261 (Ohio Ct. App. 2025).

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