Sheetz, Inc. v. Centerville

Ohio Supreme Court·Decided September 15, 2026·No. 2025-0753·Published

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Sheetz, Inc. v. Centerville, Slip Opinion No. 2026-Ohio-3531.]

NOTICE

This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2026-OHIO-3531 SHEETZ, INC., ET AL. v. THE CITY OF CENTERVILLE, OHIO, ET AL.

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Sheetz, Inc. v. Centerville, Slip Opinion No. 2026-Ohio-3531.] Civil law—Administrative appeals under R.C. Ch. 2506—Res judicata—Because a party is not permitted to bring claims for damages and declaratory relief in an R.C. Ch. 2506 administrative appeal, the doctrine of res judicata does not bar a party from pursuing those claims in a subsequent action— Certified question of state law answered in the negative.

(No. 2025-0753—Submitted February 11, 2026—Decided September 15, 2026.) ON ORDER from the United States District Court for the Southern District of Ohio, Western Division, Certifying a Question of State Law, No. 3:24-cv-59.

DETERS, J., authored the opinion of the court, which KENNEDY, C.J., and FISCHER, MAYLE, BRUNNER, HAWKINS, and SHANAHAN, JJ., joined. CHRISTINE MAYLE, J., of the Sixth District Court of Appeals, sat for DEWINE, J.

SUPREME COURT OF OHIO

DETERS, J.

{¶ 1} We accepted review of a certified question of state law from the United States District Court for the Southern District of Ohio (“the Southern District” or “the federal court”). The federal court asks whether a party must bring claims for damages and declaratory relief within an R.C. Ch. 2506 administrative appeal to avoid a res judicata bar. We answer the certified question in the negative. Because a party is not permitted to bring claims for damages and declaratory relief in an administrative appeal, the doctrine of res judicata does not bar a party from pursuing those claims in a subsequent action.

I. BACKGROUND

{¶ 2} According to the federal court’s certification order, three companies—Sheetz, Inc.; Morse Road Development, L.L.C., d.b.a. Skilken Gold; and Hemmert Far Hills Properties, L.L.C. (collectively, “Sheetz”)—proposed a new use for property in the City of Centerville that had once been the site of a restaurant. The proposed development would include a gas station, convenience store, and drive-through restaurant.

{¶ 3} Sheetz submitted a major site plan for the proposed development to the Centerville Planning Commission, which unanimously approved the plan. Not everyone in the community, however, was enthusiastic about the project. Graceworks Lutheran Services, d.b.a. Bethany Lutheran Village (“Bethany Village”), Epiphany Evangelical Lutheran Church, and a Centerville resident who is not a party to this case opposed Sheetz’s planned development. They appealed the planning commission’s decision approving the major site plan to the Centerville City Council, which reversed the planning commission’s decision.

{¶ 4} In response to the city council’s decision, Sheetz filed two lawsuits in the Montgomery County Court of Common Pleas. First, Sheetz appealed the decision under the administrative-appeal statute, R.C. 2506.01 (“the administrative appeal”). Later, Sheetz filed a complaint for damages and declaratory relief under

January Term, 2026

42 U.S.C. 1983 (“the Section 1983 action”), naming as defendants the city, the city council, and William Serr (collectively, “Centerville”), Epiphany Evangelical Lutheran Church and Mark Chilson (collectively, “Epiphany”), and Bethany Village. The city and the city council removed the Section 1983 action to the Southern District.

{¶ 5} Sheetz prevailed in the administrative appeal. The common pleas court determined that the city council had taken improper legislative action in reversing the planning commission’s decision.

{¶ 6} Following the common pleas court’s ruling in the administrative appeal, the Southern District issued a show-cause order questioning whether the Section 1983 action was barred by the doctrine of res judicata. Sheetz argued that Ohio courts of common pleas do not have the authority to award damages or declaratory relief as part of an R.C. Ch. 2506 administrative appeal and so resolution of the administrative appeal did not trigger the application of res judicata in the Section 1983 action. Additionally, Sheetz filed a motion to certify the issue as a question of state law to this court.

{¶ 7} The Southern District determined that the question whether res judicata bars the Section 1983 action is unsettled under Ohio law. It explained that Ohio courts of appeals and the United States Court of Appeals for the Sixth Circuit have reached different conclusions on the question. Compare Clark Cty. Bd. of Commrs. v. Coppess, 2008-Ohio-2879, ¶ 38, 42 (2d Dist.) (claim for damages not barred by res judicata because of a prior R.C. Ch. 2506 administrative appeal), with Moore v. Hiram Twp., 988 F.3d 353, 361-364 (6th Cir. 2021) (prior R.C. Ch. 2506 administrative appeal barred subsequent claim for damages). Thus, the Southern District certified a question of state law to this court. We accepted the certification and agreed to decide the following question: “Whether a party must bring affirmative claims for damages and declaratory relief within an R.C. [Ch.] 2506

SUPREME COURT OF OHIO

administrative appeal to avoid res judicata.” (Bracketed text in original.) 2025- Ohio-5452.

II. ANALYSIS

{¶ 8} The doctrine of res judicata embraces two related concepts in Ohio—

claim preclusion and issue preclusion. State ex rel. Davis v. Pub. Emps. Retirement Bd., 2008-Ohio-6254, ¶ 27. Claim preclusion bars claims that were or might have been litigated in an earlier lawsuit between the parties that resulted in a valid final judgment. AJZ’s Hauling, L.L.C. v. TruNorth Warranty Programs of N. Am., 2023- Ohio-3097, ¶ 16. For purposes of res judicata, a claim includes all theories of recovery or “forms of relief flowing from those theories” that arise from a particular transaction or occurrence. 1 Restatement of the Law 2d, Judgments, § 24, at 197 (1982). On the other hand, issue preclusion—sometimes called collateral estoppel—applies to “a fact or a point that was actually and directly at issue in a previous action, and was passed upon and determined by a court of competent jurisdiction.” Fort Frye Teachers Assn, OEA/NEA v. State Emp. Relations Bd., 1998-Ohio-435, ¶ 14.

{¶ 9} The certified question presented here implicates claim preclusion because it asks whether particular claims for particular forms of relief—damages and declaratory judgment—are barred. Claim preclusion has four elements: it requires “(1) a prior final, valid decision on the merits by a court of competent jurisdiction; (2) a second action involving the same parties, or their privies, as the first; (3) a second action raising claims that were or could have been litigated in the first action; and (4) a second action arising out of the transaction or occurrence that was the subject matter of the previous action.” Hapgood v. Warren, 127 F.3d 490, 493 (6th Cir. 1997), quoted in Lycan v. Cleveland, 2022-Ohio-4676, ¶ 23 (lead opinion).

{¶ 10} According to Sheetz, the certified question turns on the third element: whether Sheetz’s claims for damages and declaratory relief could have

January Term, 2026

been litigated in the administrative appeal. The answer, Sheetz says, is no, because Ohio law does not allow claims for damages or declaratory relief in administrative appeals filed under R.C. Ch. 2506. So, Sheetz argues, those claims could not have been litigated in its appeal of the city council’s decision.

{¶ 11} Centerville approaches the certified question differently.

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