Union Sq. Realty, Inc. v. Golfers & Hackers, Inc.

2011 Ohio 1882
CourtOhio Court of Appeals
DecidedApril 18, 2011
Docket2010 CA 00005
StatusPublished
Cited by1 cases

This text of 2011 Ohio 1882 (Union Sq. Realty, Inc. v. Golfers & Hackers, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Sq. Realty, Inc. v. Golfers & Hackers, Inc., 2011 Ohio 1882 (Ohio Ct. App. 2011).

Opinion

[Cite as Union Sq. Realty, Inc. v. Golfers & Hackers, Inc., 2011-Ohio-1882.]

COURT OF APPEALS STARK COUNTY, OHIO FIFTH APPELLATE DISTRICT

UNION SQUARE REALTY, INC. JUDGES: Hon. Julie A. Edwards, P. J. Appellee/Cross-Appellant Hon. W. Scott Gwin, J. Hon. John W. Wise, J. -vs-

GOLFERS & HACKERS, INC.

Appellant/Cross-Appellee Case No. 2010 CA 00005

-vs-

MARILYN SCHOPP

Appellee-Cross-Appellant OPINION

CHARACTER OF PROCEEDING: Civil Appeal from the Court of Common Pleas, Case No. 2008 CV 02514

JUDGMENT: Affirmed

DATE OF JUDGMENT ENTRY: April 18, 2011

APPEARANCES:

For Appellees/Cross Appellants For Appellant/Cross-Appellee

KARL H. SCHNEIDER DAVID B. SPAULDING MARK R. METERKO 157 Wilbur Drive, NE MAGUIRE AND SCHNEIDER North Canton, Ohio 44720 250 Civil Center Drive, Suite 500 Columbus, Ohio 43215 Stark County, Case No. 2010 CA 00005 2

Wise, J.

{¶1} Defendant-Appellant Golfers & Hackers, Inc. appeals the December 29,

2009, decision of the Stark County Court of Common Pleas awarding Defendant-

Appellee Union Square Realty, Inc. $17,500 on their Complaint and awarding Golfers &

Hackers $12,000 on its Third-Part Complaint against Marilyn Schopp.

STATEMENT OF THE CASE AND FACTS

{¶2} Union Square Realty, Inc., doing business as Re-Max Home Center,

("Union Square") is a real estate brokerage owned by Marilyn Schopp ("Schopp"). (T.

at 31). Golfers & Hackers, Inc. ("Golfers & Hackers") is a corporation owned by four

shareholders, including Lane Witte, Eric Kerzan and Chris Kerzan. (T. at 133).

{¶3} Union Square filed a complaint seeking unpaid commissions from Golfers

& Hackers. Golfers & Hackers, in turn, filed a counterclaim against Union Square, and

a third-party complaint against Marilyn Schopp, the owner of Re/Max, setting forth

claims for tortious interference with a contract and breach of fiduciary duty, among

others, arising out of the filing of a broker's lien by Union Square.

{¶4} The case proceeded to a bench trial on November 3rd and 4th of 2009.

{¶5} At trial, the following relevant facts were presented:

{¶6} On September 23, 2004, Appellant/Cross-Appellee, Golfers & Hackers,

Inc., entered into an exclusive Listing Agreement with Union Square Realty for the sale

of 30 acres of real estate located at Schubert Avenue in Alliance, Ohio. The Listing

Agreement, which contained an expiration date of March 23, 2005, contained a listing

price of $750,000.00. Pursuant to the Listing Agreement, Union Square was to receive

a commission of 5.5% of the sale price of the Property. Stark County, Case No. 2010 CA 00005 3

{¶7} During the term of the Listing Agreement period, there were no purchase

offers made on the Property. (Tr. p. 251).

{¶8} On April 1, 2005, Appellee Re/Max obtained an offer from a prospective

buyer, Newton Square, in the amount of $600,000.00. Thereafter, Appellee Marilyn

Schopp contacted Golfers & Hackers and informed Lane Witte, one of Appellant's

shareholders, that she had a party interested in the real estate. The identity of the

interested party was not disclosed during the initial telephone conversation between

Appellee Schopp and Mr. Witte. (T. at 210). According to Appellant, during this

telephone conversation, discussion was had regarding the expiration of the listing

agreement and Appellee Schopp was advised that the new sale terms would be "net

$675,000 to the seller." Mr. Witte's testimony regarding this telephone conversation

was as follows:

{¶9} “Q. Was there mention during that initial telephone call as to what the

sales terms were from that point forward?

{¶10} “A. Yes.

{¶11} “Q. What did you tell Ms. Schopp regarding the sales terms from that

point forward?

{¶12} “A. Net $675,000.

{¶13} “Q. By net 675 what did you mean?

{¶14} “A. Net in our pocket.

{¶15} “Q. Her real estate commission was to be above that?

{¶16} “A. Yes.

{¶17} “Q. Did she say she understood that? Stark County, Case No. 2010 CA 00005 4

{¶18} “A. Yes.” (T. at 252).

{¶19} Following this telephone conversation, Mr. Witte sent a letter to Appellee

Schopp dated April 12, 2005, which stated that Appellee's listing had expired and that

the shareholders of Golfers & Hackers were attempting to market the property

themselves. This correspondence also stated that the terms of sale were "net $675,000"

to the Seller. (T. at 41-42, 252).

{¶20} On April 15, 2005, a meeting was held at the Re/Max office in Alliance,

Ohio, during which two of the shareholders of Golfers & Hackers were introduced to the

prospective buyer, Newton Square. Mr. Witte, who was present at the meeting provided

the following account of what took place:

{¶21} “Q. At some later point did you have a meeting in Marilyn Schopp's

office?

{¶22} “A. Yes.

{¶23} “Q. You were introduced to somebody from Newton Square at that

meeting?

{¶24} “A. Yes, we were.

{¶25} “Q. Do you remember what was said at the meeting concerning Ms.

Schopp's listing and the purchase price?

{¶26} “A. Purchase price was net 675.

{¶27} “Q. Was that voiced to Marilyn Schopp at the meeting?

{¶28} “A. Yes.”

{¶29} “Q. Was it also voiced to her that her contract listing contract had

expired? Stark County, Case No. 2010 CA 00005 5

{¶30} “A. Correct.” (T. at 253-254).

{¶31} It is unclear from the record whether Appellee Schopp had any further

involvement in the subject real estate transaction after the April 15, 2005, meeting. Ms.

Schopp and Joe Bennett, a real estate broker previously working for Re/Max, testified

that she was present at two meetings involving Newton Square. Mr. Witte, however,

testified that after the initial meeting on April 15, 2005, Appellant dealt directly with

Newton Square and Appellee Schopp was not involved in any subsequent proceedings

involving the sale.

{¶32} As a result of the negotiations at the April 15th meeting, Golfers &

Hackers made a counter-offer to Newton Square to sell for $675,000.

{¶33} A second meeting occurred in early May, 2005. This meeting was also

at Union Square's office with Schopp present. (T. at 43, 148). As a result of this

meeting, Newton Square made an additional counter-offer to purchase the property for

$675,000, but on different payment terms from those requested by Golfers & Hackers.

{¶34} Subsequently, Golfers & Hackers and Newton Square continued to

negotiate over the sale of the Property, and eventually entered into a purchase contract

on June 15, 2005 for $650,000. (T. at 185-86). Appellee Schopp admits that she was

not involved in this stage of the negotiations.

{¶35} Upon discovering the June 15th purchase contract, Union Square filed a

broker's lien on August 15, 2005, pursuant to R.C.1311.88, in the amount of $33,000,

in an attempt to protect its right to a commission arising from the sale. (T. at 49-59).

The broker's lien affidavit contained inaccurate information, including the incorrect

contract price and date. (T. at 108). Further, the initial offer of $600,000 was attached Stark County, Case No. 2010 CA 00005 6

to the lien affidavit, rather than the June 15th purchase agreement, and the listing

agreement reflected an expiration date of July 23, 2005.

{¶36} In the meantime, Newton Square decided to back out of the June 15th

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