Shops at Boardman Park, L.L.C. v. Target Corp.

2016 Ohio 7283
Ohio Court of Appeals·Decided October 5, 2016·No. 13 MA 0188·Published·Cited by 3 cases

Opinion

STATE OF OHIO, MAHONING COUNTY IN THE COURT OF APPEALS

SEVENTH DISTRICT

THE SHOPS AT BOARDMAN PARK, ) CASE NO. 13 MA 0188 LLC f/k/a THE SHOPS AT BOARDMAN ) PARK PARTNERSHIP NO. 1, et al. )

)

PLAINTIFFS-APPELLANTS )

)

VS. ) OPINION )

TARGET CORPORATION )

)

DEFENDANT-APPELLEE )

CHARACTER OF PROCEEDINGS: Civil Appeal from the Court of Common Pleas of Mahoning County, Ohio Case No. 11 CV 3929

JUDGMENT: Affirmed. Remanded.

JUDGES: Hon. Cheryl L. Waite Hon. Mary DeGenaro Hon. Carol Ann Robb Dated: October 5, 2016

APPEARANCES:

For Plaintiffs-Appellants: Atty. David Barbee Atty. Joseph C. Bishara

Roth, Blair, Roberts, Strasfeld & Lodge 100 East Federal Street, Suite 600 Youngstown, Ohio 44503

Atty. Michael J. Morley

Atty. Ronald G. Galip

721 Boardman-Poland Road

Boardman, Ohio 44512

For Defendant-Appellee: Atty. Timothy T. Reid Atty. Dale Markworth

Mansour, Gavin, Gerlack

& Manos Co., LPA

North Point Tower

1001 Lakeside Avenue, Suite 1400 Cleveland, Ohio 44114

Atty. Michael A Ponto

Atty. David Snieg

Faegre Baker Daniels LLP

2200 Wells Fargo Center

90 South Seventh Street

Minneapolis, MN 55402-3901

WAITE, J.

{¶1} This is an appeal of summary judgment granted in favor of Defendant-

Appellee Target Corporation (“Target”) in a declaratory judgment action. The action was filed by Plaintiff-Appellant The Shops at Boardman Park, LLC (“The Shops LLC”) in order to obtain a judicial definition of the phrase “Common Area supervisory program” that was contained within the parties’ “Operations and Easement Agreement” (“OEA”). The OEA defined the parties’ combined properties as the “Shopping Center.” This 19.5-acre Shopping Center constituted a defined retail area within a larger shopping complex (also known as The Shops at Boardman Park) in Boardman, Ohio. The OEA was signed in 2001. The OEA governed, among other things, the system of paying for the common areas of the parties’ adjacent properties. After Target decided to take responsibility for maintaining its own common areas in 2009, a dispute arose over whether Target continued to be liable for a pro rata share of the cost of supervising and administering the common areas of the Shopping Center. The Shops LLC asked the court to give a specific definition to the phrase “Common Area supervisory program” that would support its separate claim for money damages relating to the administration of the common areas. Target filed a counterclaim in declaratory judgment and proffered a different definition. After competing motions for summary judgment were filed, the trial court accepted Target’s definition. The Shops LLC then filed this interlocutory appeal.

{¶2} We find no reversible error in the trial court’s decision to use the definition provided by Target. The trial court correctly interpreted the disputed phrase in the context of the entire OEA, found Appellant’s proposed definition to be in

conflict with the OEA, and provided a definition of the entire phrase consistent with, and based upon, the language of the OEA itself. Appellant’s assignments of error are overruled and the judgment of the trial court is affirmed. The case is remanded to the trial court to resolve any outstanding claims between the parties.

History of the Case

{¶3} Target and The Shops LLC own adjacent tracts of land in Boardman, Ohio. Target operates a retail store on its tract. The Shops LLC leases space in its remaining tract of land to various retail entities. On September 20, 2001, Target and The Shops LLC entered into an OEA, the purpose of which was to “effectuate the common use and operation of their respective Tracts”. (OEA, p. 1.) The OEA refers to the combined areas of the parties’ two tracts as the Shopping Center, which is in turn located within the larger shopping complex called The Shops at Boardman Park.

{¶4} The OEA defines “Common Area” as “all areas within the exterior boundaries of the Shopping Center, exclusive of (i) any Building and (ii) any Outside Sales Area * * *.” (OEA, p. 2.) The Common Area includes parking lots, sidewalks, driveways, signs, and lighting, among other things. The OEA provided that The Shops LLC was initially responsible for the maintenance of the Common Area of the Shopping Center, with Target being responsible to pay 43% as its proportionate share of the “Common Area Maintenance Costs” (a defined term in the OEA). The OEA does not define or govern any areas outside the parties’ tracts designated in the OEA, which covers approximately 19.5 acres of a much larger shopping area. Section 4.2.7 of the OEA allowed Target to take over and assume maintenance of

the Common Area of its 8.156-acre tract. Target took advantage of this provision in 2009, and this is not disputed by the parties. The OEA required The Shops LLC to continue to be responsible for certain Common Area functions, such as providing insurance for the Common Area, maintaining utility lines, and “maintain the Common Area supervisory program, if any.” (OEA, 4.2.7, p. 25.) Target was required to continue paying its pro rata share of the costs of these specifically designated functions. (OEA, 4.2.7, p. 25.)

{¶5} A dispute arose over whether Target was required to pay a pro rata share of various charges allegedly associated with the common areas. Specifically, The Shops LLC believed that Target was responsible for a share of the cost of two persons employed to conduct oversight and administration of certain aspects of the larger shopping complex. The Shops LLC filed a breach of contract complaint in the Mahoning County Court of Common Pleas on December 12, 2011. Another entity, Handel Investments, LLC, also filed a claim, but has been dismissed from the case.

{¶6} The Shops LLC filed an amended complaint on June 3, 2013, alleging a breach of contract as well as bringing a declaratory judgment action in which it requested the court to define the phrase “Common Area supervisory program” as stated in Section 4.2.7 of the OEA. The Shops LLC encouraged the court to accept the definition as “fees and expenses of a supervisor and a secretary for such supervisor on site, who were and are in charge of overseeing, administering and coordinating the Common Areas of the shopping center.” (6/3/13 Amended Complaint, p. 4.) Target filed a counterclaim on June 21, 2013, proposing a different

definition. Target suggested that the definition of “Common Area supervisory program” meant “any program implemented for policing or securing the Common Area within the Shopping Center.” (6/21/11 Answer and Counterclaim, p. 5.) The parties filed competing motions for partial summary judgment on the declaratory judgment aspect of the complaint.

{¶7} The case was referred to a magistrate, who ruled on October 3, 2013, that Target’s definition was correct. The magistrate granted partial summary judgment to Target and overruled The Shops LLC motion for partial summary judgment. The Shops LLC filed objections to the magistrate’s decision, and on November 22, 2013, the trial court adopted the magistrate’s decision and ruled in favor of Target. This timely interlocutory appeal followed. The trial court included the phrase “[t]here being no just cause for delay” as required by Civ.R. 54(B) in order to designate the interlocutory judgment a final appealable order. Appellant’s assignments of error are related and will be treated together.

Final Appealable Order Status

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Shops at Boardman Park, L.L.C. v. Target Corp., 2016 Ohio 7283 (Ohio Ct. App. 2016).

2016 Ohio 7283 (Shops at Boardman Park, L.L.C. v. Target Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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