S. Shore Lake Erie Assets & Operations, L.L.C. v. Johnson

2025 Ohio 4950
Ohio Court of Appeals·Decided October 30, 2025·No. 114726·Published·Cited by 1 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

SOUTH SHORE LAKE ERIE ASSETS & OPERATIONS, LLC, :

Plaintiff-Appellee, :

No. 114726

v. :

LANCE B. JOHNSON, ET AL., :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: October 30, 2025

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-23-977702

Appearances:

Seeley, Savidge Ebert & Gourash, LPA, Daniel F. Gourash, and Jeffrey S. Moeller, for appellee.

Christopher R. Fortunato, for appellant Knot Partners LLC.

WILLIAM A. KLATT, J.:

Defendant-appellant Knot Partners LLC (“Knot Partners”) appeals from the trial court’s grant of partial summary judgment in favor of plaintiff-

appellee South Shore Lake Erie Assets & Operations, LLC dba South Shore Marine (“South Shore”). For the following reasons, we affirm the trial court’s ruling. Factual and Procedural History The underlying lawsuit arises from the brokerage agreement entered into early August 2022, by Knot Partners, a limited liability corporation solely owned by defendant Lance B. Johnson (“Johnson”), and South Shore, a yacht dealer and used-vessel broker. Under the brokerage agreement, South Shore agreed to broker the sale of Knot Partners’ 2022 Regal 26XO pleasure craft (“vessel”) that Knot Partners originally purchased in February 2021.

The brokerage agreement included the following terms:

OWNER’S AFFIRMATIONS AND CERTIFICATIONS: The Owner agrees to complete [South Shore’s] vessel fact sheet, which provides an inventory of the equipment included with the property. This form also explains the property’s history and requires that the Owner disclose any known repairs, pending maintenance requirements or deficiencies.

...

INDEMNITY BY OWNER FOR MISREPRESENTATION: Owner recognizes that [South Shore] is relying on all good faith information provided herein or supplied by the Owner in connection with the property. Owner agrees to indemnify and hold [South Shore harmless]

from any claims, demands, damages, suits, liabilities, costs, and expenses (including reasonable attorney’s fees) arising out of any misrepresentation, non-representation, or concealment by the Owner.

In addition to the brokerage agreement, South Shore provided Johnson with an Initial Trade Facts & Disclosure Form (“disclosure form”) that sought information on the vessel’s history including “water/flooding history.” Johnson did not complete the disclosure form, and South Shore’s employee obtained the information through telephone conversations with Johnson during which Johnson allegedly misrepresented that the vessel had never experienced any flooding.

South Shore took possession of the vessel on or about August 13, 2022, and within a few days South Shore completed a presurvey inspection detailing the recommended services that would supposedly best help to sell the boat and provided an estimate for the proposed work. The presurvey inspection and related estimate did not reference any mechanical problems with the vessel’s generator. Knot Partners approved the recommended repairs, South Shore completed the repairs, and Knot Partners paid the corresponding invoice. A bill of sale executed on November 29, 2022, transferred ownership of the vessel from Knot Partners to a third-party buyer (“buyer”).

South Shore alleged that between August 2022 — when the parties executed the brokerage agreement — and November 2022 — when the buyer purchased the vessel, South Shore discovered operational difficulties with the vessel’s generator. South Shore further alleged that Knot Partners denied the vessel had flooded during its ownership and thereby misrepresented, prior to the sale to the buyer, the condition of the generator. Accepting Knot Partner’s representations as true, South Shore believed the generator problems were covered by the applicable warranty and, therefore, sold the vessel to the buyer “as is” and with an agreement that South Shore and Westerbeke — the generator’s manufacturer — would repair the generator under the terms of the warranty. However, when it was discovered that the generator problems were allegedly caused by flooding of the equipment — an event that voids the generator’s warranty — Westerbeke refused to warrant the needed repairs. South Shore ultimately paid the cost of the generator repairs and filed the underlying lawsuit on April 7, 2023, seeking indemnification for those expenses.

South Shore’s complaint alleged fraud against Johnson and Knot Partners and contractual indemnity or breach of contract against Knot Partners. South Shore attached to the complaint copies of the executed brokerage agreement and the disclosure form completed by South Shore’s employee.1 On July 11, 2023, Johnson filed an answer and counterclaim against South Shore.2 South Shore answered the counterclaim on August 8, 2023.

On August 16, 2023, Knot Partners filed an answer to the complaint and a counterclaim against South Shore alleging negligence, gross negligence, breach of contract, and defamation. South Shore answered Knot Partners’ counterclaim on August 18, 2023.

On September 20, 2024, South Shore filed a motion for partial summary judgment against Johnson and Knot Partners seeking (1) dismissal of Johnson’s and Knot Partners’ counterclaims and (2) judgment in favor of South

1 Knot Partners alleges the disclosure form is a “fake, hearsay document.”

2 Johnson and Knot Partners filed third-party complaints against Regal Marine

Industries, Inc. (“Regal Marine”) on July 24, 2023, and August 27, 2023, respectively. Regal Marine is not a party to this appeal and, accordingly, the procedural history relating to Regal Marine is not referenced in this opinion.

Shore on its breach-of-contract claim against Knot Partners. The summary- judgment motion did not address South Shore’s allegations of fraud. The parties fully briefed the motions, and on October 21, 2024, the trial court issued a ruling that found that

[u]pon a consideration of the briefs of the parties and the record evidence, construed most strongly in favor of Knot Partners and Johnson, the plaintiffs’ motion for summary judgement is granted in the following respects:

South Shore’s affirmative breach of contract claim against Knot Partners (Count 2 of the complaint) on the issues of duty and breach, but leaving the amount of damages for trial; and the entirety of Knot Partner’s LLC and Lance Johnson’s August 16, 2023 counterclaims for negligence, gross negligence, breach of contract, and defamation.

This leaves for a trial the following issues: (1) what amount of damages did South Shore incur as a result of Knot Partners, LLC’s breach of contract; and (2) all of the elements of South Shore’s fraud cause of action against Johnson and Knot Partners.

Oct. 21, 2024 journal entry.

On November 13, 2024, South Shore moved to voluntarily dismiss, with prejudice, its fraud claim against both defendants, and the trial court granted the motion on December 5, 2024. Thus, the only issue remaining at trial was the determination of damages under the breach-of-contract or contractual indemnity claim against Knot Partners.

The case proceeded to a jury trial on December 9, 2024, where Johnson represented himself pro se, and counsel represented Knot Partners. On December 10, 2024, the jury found Knot Partners’ breach of contract damaged South Shore in the amount of $145,443.13. On December 13, 2024, South Shore filed a motion requesting the trial court tax court costs and award prejudgment interest.

On December 30, 2024, Johnson filed a motion for relief from judgment, pursuant to Civ.R. 60(B)(3), and on January 7, 2025, Johnson filed a notice of appeal in a companion case to the instant appeal. See 8th District Cuyahoga No. 114777.

On January 9, 2025, Knot Partners filed a notice of appeal and now presents three assignments of error for our review:

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S. Shore Lake Erie Assets & Operations, L.L.C. v. Johnson, 2025 Ohio 4950 (Ohio Ct. App. 2025).

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