Vandercar, L.L.C. v. Port of Greater Cincinnati Dev. Auth.

Ohio Court of Appeals·Decided July 17, 2026·No. C-250025, C-250422·Published

Opinion

IN THE COURT OF APPEALS

FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

VANDERCAR, LLC, : APPEAL NOS. C-250025 C-250422

Plaintiff-Appellant/Cross-Appellee, : TRIAL NO. A-2000900

vs. :

THE PORT OF GREATER CINCINNATI : JUDGMENT ENTRY DEVELOPMENT AUTHORITY, :

Defendant-Appellee/Cross-

Appellant. :

This cause was heard upon the appeals, the record, the briefs, and arguments.

For the reasons set forth in the Opinion filed this date, the judgments of the trial court are affirmed in C-250025 and reversed in C-250422.

Further, the court holds that there were reasonable grounds for these appeals, allows no penalty, and orders that costs be taxed to Vandercar, LLC.

The court further orders that (1) a copy of this Judgment with a copy of the Opinion attached constitutes the mandate, and (2) the mandate be sent to the trial court for execution under App.R. 27.

To the clerk: Enter upon the journal of the court on 7/17/2026 per order of the court.

By:_______________________ Administrative Judge

IN THE COURT OF APPEALS

FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

VANDERCAR, LLC, : APPEAL NOS. C-250025 C-250422

Plaintiff-Appellant/Cross- : TRIAL NO. A-2000900 Appellee, :

vs.

: OPINION THE PORT OF GREATER CINCINNATI DEVELOPMENT AUTHORITY, :

Defendant-Appellee/Cross- :

Appellant.

:

Civil Appeals From: Hamilton County Court of Common Pleas Judgments Appealed From Are: Affirmed in C-250025; Reversed in C-250422 Date of Judgment Entry on Appeal: July 17, 2026

Taft Stettinius & Hollister LLP, W. Stuart Dornette, Beth A. Bryan, and Taylor S. Lovejoy, for Plaintiff-Appellant/Cross-Appellee Vandercar, LLC,

Calfee Halter & Griswold LLP, David T. Bules, and Matthew A. Chiricosta, for Defendant-Appellee/Cross-Appellant the Port of Greater Cincinnati Development Authority.

MOORE, Judge.

I. Introduction

{¶1} This appeal arises from a breach-of-contract dispute regarding the “redevelopment” of the Millenium Hotel (“the Property”) in downtown Cincinnati. Vandercar purchased the Property from the original owners, and agreed to assign its interest to the Port of Greater Cincinnati Development Authority (“the Port”).

{¶2} The parties’ relationship deteriorated over a dispute concerning the release of fees to Vandercar contemplated by the parties’ assignment agreement. In 2022, in Vandercar v. Port of Cincinnati Dev. Auth., 2022-Ohio-3148, ¶ 6 (1st Dist.) (“Vandercar I”), we affirmed the court’s judgment that the Port breached the parties’ assignment agreement. We remanded the cause to the trial court to resolve the questions of whether the Port’s conduct constituted bad faith and whether Vandercar was entitled to an award of attorneys’ fees. It was during this remand that one trial judge found that the Port had not acted in bad faith, only for another trial judge, who had subsequently been assigned to the case, to grant Vandercar’s Civ.R. 60(B) motion for relief from the judgment of the previous trial judge.

{¶3} In the appeal numbered C-250025, Vandercar appeals from the trial court’s denial of its motion for attorneys’ fees. In addition to the instant appeal, Vandercar also filed a Civ.R. 60(B) motion in the trial court seeking to set aside the judgment.

{¶4} We stayed Vandercar’s appeal and again remanded the cause to the trial court to resolve the Civ.R. 60(B) motion. On remand, the court found that Vandercar was entitled to relief under Civ.R. 60(B)(5) and granted Vandercar’s motion. The Port appealed in the appeal numbered C-250422 and argues that the court erred as a matter of law in granting Vandercar’s Civ.R. 60(B) motion.

{¶5} For the reasons set forth below, we affirm the trial court’s judgment in the appeal numbered C-250025 and reverse it in the appeal numbered C-250422.

II. Factual and Procedural History A. The Contract, Breach, and Initial Appeal

{¶6} In July 2018, Vandercar contracted to purchase the Property. Later, Vandercar and the Port entered into an assignment agreement, in which Vandercar assigned to the Port its interest in the Property, in exchange for certain payment obligations. Vandercar I, 2022-Ohio-3148, at ¶ 6 (1st Dist.). These included a $2.5 million payment at the time of closing (“the Development Fee”), and a $5 million payment at the time revenue bonds for redevelopment were issued (“the Redevelopment Fee”). Id. While the Port paid the Development Fee, the Port declined to pay the $5 million Redevelopment Fee. Id. at 13-14.

{¶7} The terms for the Redevelopment Fee included:

The Port shall use commercially reasonable efforts to issue the Redevelopment Bonds within one year from the date of the closing of the purchase of the Real Property[.] . . . The Port shall not use or allow to be used any other method of financing the development of the Project unless such financing causes and allows for the payment of the $5,000,000.00 redevelopment fee described below. If the closing of the Redevelopment Bonds occurs within that one-year period (as may be extend [sic] due to force majeure event), on such date of closing of the Redevelopment Bonds[,] the Port shall pay Vandercar an additional amount of $5,000,000.00.

Id. at ¶ 6. The agreement set forth that the revenue bonds would be the sole means of financing the project. Id. at ¶ 5.

{¶8} In the months after the parties entered into the assignment agreement, the Port adopted two resolutions relevant to the issuance of revenue bonds. The January resolution authorized the issuance of revenue bonds and approved the use of bond proceeds for acquisition, demolition, and evaluation of the project. The February resolution authorized the Port’s president to enter contracts for remediation and demolition and reiterated that the January resolution approved the use of revenue bond proceeds to pay for both the acquisition of the property and the required demolition work. Id. at ¶ 7-12. Upon the Port’s issuance of the revenue bonds, Vandercar sent the Port an invoice for the Redevelopment Fee, which the Port refused to pay. Id. at ¶ 13.

{¶9} Vandercar filed its complaint against the Port, alleging that the Port breached the parties’ contract and acted in bad faith. Vandercar asserted that the Port acted in bad faith when it adopted resolutions distinguishing demolition from redevelopment in an attempt to circumvent paying the Redevelopment Fee. The Port contended that demolition was a predevelopment activity. The trial court granted summary judgment for Vandercar on its breach-of-contract claim but dismissed Vandercar’s bad-faith claim on the pleadings. Vandercar I, 2022-Ohio-3148, at ¶ 19 (1st Dist.).

{¶10} In Vandercar I, we affirmed the trial court’s judgment in part. Id. at ¶ 43. However, we held that Vandercar’s bad-faith claim was a valid basis for recovery of attorneys’ fees and costs. Id. at ¶ 3, 47. We recognized pursuant to our decision in SST Bearing Corp. v. Twin City Fan Cos., 2012-Ohio-2490 (1st Dist.), that a party that prevails on its breach-of-contract case may recover attorneys’ fees upon establishing that the breaching party’s conduct rose to the level of bad faith. Vandercar I at ¶ 56, citing SST Bearing at ¶ 29.

{¶11} We reversed the trial court’s judgment dismissing the bad-faith claim on the pleadings and remanded the cause to the trial court to resolve the issue of whether the Port acted in bad faith.

B. Remand I – Bad Faith

{¶12} On remand, Vandercar submitted a motion for attorneys’ fees that alleged bad faith both prior to and during the litigation. The motion was framed around two principal arguments: (1) that the Port violated Civ.R. 37(C) when it improperly denied two of Vandercar’s requests for admissions, and (2) that based on numerous examples of opprobrious conduct identified within Vandercar’s motion, the Port acted in bad faith.

1. Denial of Requests for Admissions

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Vandercar, L.L.C. v. Port of Greater Cincinnati Dev. Auth., (Ohio Ct. App. 2026).

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