SPM Acquisition, L.L.C. v. Italian Restaurant Group, L.L.C.

Ohio Court of Appeals·Decided April 9, 2026·No. 115382·Published

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

SPM ACQUISITION, LLC, :

Plaintiff-Appellee, :

No. 115382

v. :

ITALIAN RESTAURANT GROUP, LLC, ET AL., :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: REVERSED IN PART AND REMANDED RELEASED AND JOURNALIZED: April 9, 2026

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-23-985534

Appearances:

Honigman LLP and David P. Vallas; Mark J. VanRooy, for appellee.

Marshall Dennehey, P.C. and David J. Fagnilli, for appellant Brinker International, Inc.

EILEEN A. GALLAGHER, J.:

Brinker International, Inc. (“Brinker”) appeals the trial court’s order granting summary judgment against it and the trial court’s failure to disqualify one of the attorneys in this breach-of-contract case. For the following reasons, we reverse the judgment of the trial court, in part, and remand this matter for further proceedings.

On June 25, 1996, the predecessor to SPM Acquisitions, LLC (“SPM”), acting as the landlord, entered into a commercial lease (the “Lease”) with the predecessor to Italian Restaurant Group, LLC, dba Romano’s Macaroni Grill (“Romano’s”), acting as the tenant, involving property located at 17095 Southpark Center in Strongsville (the “Property”).1 Also in June 1996 Brinker executed a separate document guaranteeing Romano’s full performance of the Lease (the “Guarantee”).

In the summer 2023, Romano’s defaulted on the Lease, vacated the Property and tendered possession of the Property to SPM. On September 15, 2023, SPM filed a complaint against Romano’s and Brinker, alleging breach of contract in that Romano’s failed to pay rent and other charges under the Lease.

On November 6, 2024 the court signed and filed a stipulation and agreed judgment entry (the “Stipulation”) between SPM and Romano’s, which states, in part, that the Lease expires June 30, 2027, Romano’s vacated the premises and tendered possession of the Property to SPM on July 31, 2023 and, as of November 1, 2024, Romano’s owed SPM $475,411.58, which accrued under the

1 The Lease shows that, at the time the parties entered into the agreement, the

landlord was Royalton Road Joint Venture and the tenant was Brinker Ohio, Inc. According to the record, SPM is a successor to Royalton Road Joint Venture and Romano’s is a successor to Brinker Ohio, Inc. Brinker, which is a distinct entity from Brinker Ohio, Inc., is listed as the original guarantor in the documents.

Lease at the rate of $15,938.79 per month. In the Stipulation, the court entered judgment against Romano’s in the amount of $475,411.58.

On February 6, 2025 SPM filed a motion for summary judgment against Brinker. On April 24, 2025 Brinker filed a motion to disqualify one of SPM’s attorneys. On May 5, 2025, the court granted SPM’s summary-judgment motion and entered judgment against Brinker in the amount of $475,411.58 through October 2024, plus $15,938.79 for each month from November 2024 through the date of judgment, plus interest, attorney fees and costs. On May 7, 2025, the court rendered Brinker’s motion to disqualify, moot.

Brinker appeals and raises the following assignments of error for our review:

I. The trial court erred by granting summary judgment on plaintiff/SPM Acquisition, L.L.C.’s breach of contract claim because a genuine issue of material fact remained.

II. The trial court erred by not disqualifying SPM Acquisition, L.L.C.’s pro hac vice counsel, David P. Vallas, despite a clear conflict of interest.

I. Law and Analysis A. Summary Judgment

1. Standard of Review

Appellate courts review a trial court’s decision granting summary judgment under a de novo standard. Walworth v. Khoury, 2021-Ohio-3458, ¶ 17 (8th Dist.). Under Civ.R. 56(C), the party seeking summary judgment must prove that 1) there is no genuine issue of material fact, 2) they are entitled to judgment as a matter of law and 3) reasonable minds can come to but one conclusion and that conclusion is adverse to the nonmoving party. Dresher v. Burt, 75 Ohio St.3d 280 (1996). A summary-judgment motion may be supported by “pleadings, depositions, answers to interrogatories, written admissions, affidavits, transcripts of evidence, and written stipulations of fact.” Civ.R. 56(C). “No evidence or stipulation may be considered except as stated in this rule.” Id.

2. Breach of Contract

To succeed on a breach-of-contract claim, a party must establish that 1) a binding agreement was formed, 2) the nonbreaching party performed its obligations under the agreement, 3) the other party failed to perform its obligations without legal excuse and 4) the nonbreaching party suffered damages as a result. Carbone v. Nueva Constr. Group, L.L.C., 2017-Ohio-382, ¶ 14 (8th Dist.). This court has held that the “standard of review in an action for breach of contract is whether the trial court erred as a matter of law.” Unifund CCR, L.L.C. v. Johnson, 2014-Ohio-4376, ¶ 7 (8th Dist.).

The Ohio Supreme Court has held the following regarding reviewing a contract for an alleged breach: “Our primary role is to ascertain and give effect to the intent of the parties. We presume that the intent of the parties to a contract is within the language used in the written instrument. If we are able to determine the intent of the parties from the plain language of the agreement, then there is no need to interpret the contract.” (Citations omitted.) Saunders v. Mortensen, 2004-Ohio- 24, ¶ 9.

“On the other hand, where a contract is ambiguous, a court may consider extrinsic evidence to ascertain the parties’ intent. A court, however, is not permitted to alter a lawful contract by imputing an intent contrary to that expressed by the parties. It is generally the role of the finder of fact to resolve ambiguity.” (Citations omitted.) Westfield Ins. Co. v. Galatis, 2003-Ohio-5849, ¶ 12-13.

3. Mitigation of Damages

In Frenchtown Square Partnership v. Lemstone, Inc., 2003-Ohio-

3648, ¶ 12, the Ohio Supreme Court held that “under the common law of contracts, mitigation is a fundamental tenet of a damage calculus.” “The principle of mitigation of damages allows the defendant to reduce the amount of damages for which he is liable by showing extenuating facts or circumstances.” First Natl. Bank v. Cann, 503 F.Supp. 419, 442 (N.D.Ohio 1980). The Frenchtown Court addressed the issue of “whether the duty to mitigate is applicable to commercial leases.” Id. at ¶ 16. The court held that the “duty to mitigate arises in all commercial leases of real property, just as it exists in all other contracts.” Id. at ¶ 18. The court explained that the landlord’s “duty to mitigate requires only reasonable efforts.” Id. at ¶ 19. Additionally, in Apple Ohio, LLC v. Rose Italian Kitchen Solon, LLC, 2023-Ohio- 2880, ¶ 19 (8th Dist.), this court held that “[w]hether a landlord has made reasonable efforts to mitigate its damages is a question for the trier of fact.”

The Frenchtown Court also concluded that the duty to mitigate applies “barring contrary contract provisions . . . .” Id. at ¶ 20. See also Apple Ohio at ¶ 15, quoting Frenchtown at ¶ 12 (recognizing that, in Frenchtown, “the duty to mitigate was eliminated by a contrary contract provision in a lease that provided the landlord ‘has no duty to attempt to mitigate any damages’ resulting from the tenant’s breach”). In other words, the “parties are free to contract around the duty to mitigate.” CSRA Columbus OH Fitness Master Lessee, LLC v. Fitness & Sports Clubs, LLC, 2025-Ohio-2645, ¶ 19 (5th Dist.).

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SPM Acquisition, L.L.C. v. Italian Restaurant Group, L.L.C., (Ohio Ct. App. 2026).

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