Wroblesky v. Hughley

2021 Ohio 1063, 169 N.E.3d 709
Ohio Court of Appeals·Decided March 31, 2021·No. 2020-T-0044·Published·Cited by 5 cases

Opinion

IN THE COURT OF APPEALS

ELEVENTH APPELLATE DISTRICT TRUMBULL COUNTY, OHIO

ANTHONY M. WROBLESKY, et al., : OPINION

Plaintiffs-Appellees, :

CASE NO. 2020-T-0044

- vs - :

RENZA HUGHLEY, JR., et al., :

Defendants-Appellants. :

Civil Appeal from the Trumbull County Court of Common Pleas. Case No. 2018 CV 01433.

Judgment: Affirmed.

Thomas C. Nader, Nader & Nader, 7011 East Market Street, Suite 33, Warren, OH 44484 (For Plaintiffs-Appellees).

Percy Squire, Percy Squire Co., LLC, 341 South Third Street, Suite 10, Columbus, OH 43215 (For Defendants-Appellants).

MARY JANE TRAPP, P.J.

{¶1} Defendants-appellants, Renza Hughley, Jr. (“Mr. Hughley”) and Tom Dyson (“Mr. Dyson”) (collectively, “the appellants”), appeal the judgment of the Trumbull County Court of Common Pleas granting summary judgment to plaintiffs-appellees, Anthony M. Wroblesky and Frank Wroblesky (collectively, “the Wrobleskys”), on the Wrobleskys’ complaint for breach of contract.

{¶2} The appellants contend that the trial court erred by granting summary judgment to the Wrobleskys because genuine issues of material fact exist regarding (1)

whether the issuance of a liquor permit to the appellants was a condition precedent to the Wrobleskys’ enforcement of the lease; (2) whether the appellants’ performance was excused because of frustration of purpose; and (3) whether the appellants’ performance was excused because of impracticability due to government action.

{¶3} After a careful review of the record and pertinent law, we find as follows:

{¶4} (1) Based on the plain and ordinary meaning of the lease, the parties did not intend the issuance of a liquor permit to be a condition precedent to the appellants’ payment obligations.

{¶5} (2) The Supreme Court of Ohio has not expressly adopted the doctrine of frustration of purpose, and we decline to do so in the present case. Even if the defense were available, however, the appellants did not raise genuine issues of material fact regarding its applicability.

{¶6} (3) Since the parties expressly allocated the risk of government delay to the appellants, the doctrine of impracticability due to government action is precluded.

{¶7} Thus, we affirm the judgment of the Trumbull County Court of Common Pleas.

Substantive and Procedural History

{¶8} The Wrobleskys own the commercial real property and improvements located at 775 Mahoning Avenue in Warren, Ohio. In November 2017, the Wrobleskys and the appellants entered into a written lease agreement regarding the premises.

{¶9} Under section two of the lease, the appellants’ lease term began on December 1, 2017, and ended on November 30, 2018. In section four, the appellants agreed to pay $21,000 in annual rent in equal monthly installments of $1,750, as well as monthly installments for real estate taxes and insurance premiums, “on the first day of

each calendar month during the term of the Lease.” In section nine, the appellants agreed, among other obligations, “[t]o procure any licenses and permits required for any use made of the Leased Premises by the Tenant.” Section eleven authorized the appellants to use and occupy the premises “exclusively as a restaurant and bar.” Section nineteen contains a “force majeure” provision that states as follows:

{¶10} “If the Landlord or the Tenant shall be delayed or hindered in or prevented from the performance of any act other than the Tenant’s obligation to make payments of rent, additional rent, and other charges required under this Lease, by reason of strikes, lockouts, unavailability of materials, failure of power, restrictive governmental laws or regulations, riots, insurrections, the act, failure to act, or default of the other party, war, or other reason beyond its control, then performance of such act shall be excused for the period of the delay and the period for the performance of such act shall be extended for a period equivalent to the period of such delay. Notwithstanding the foregoing, lack of funds shall not be deemed to be a cause beyond control of either party.” (Emphasis added.)

{¶11} The Wrobleskys delivered possession of the premises to the appellants on December 1, 2017. On that date, the appellants paid the Wrobleskys a monthly rental installment of $1,750 and a security deposit of $1,750. The appellants paid $3,000 to the Wrobleskys on January 12 and on February 26 but made no other payments.

{¶12} In August 2018, the Wrobleskys filed a civil complaint against the appellants in the trial court alleging that the appellants breached the lease by failing to pay monthly rent, real estate taxes, and insurance premiums. They sought judgment in the amount of $34,209.84, plus attorney fees, costs, and interest.

{¶13} The appellants, through counsel, filed separate motions to dismiss the Wrobleskys’ complaint for failure to state a claim upon which relief can be granted pursuant to Civ.R. 12(B)(6).

{¶14} In his motion, Mr. Hughley alleged that at the time the parties entered into the lease, he, as the primary tenant, did not have a permit from the Ohio Division of Liquor Control to sell alcohol but was applying for one. The division approved a liquor permit for Mr. Hughley in August 2018, which was subject to several conditions that he was endeavoring to satisfy. At the time of his motion, however, he did not have a 2018-2019 liquor permit.

{¶15} In his motion, Mr. Dyson alleged that he signed the lease solely as a guarantor for Mr. Hughley. Due to reasons beyond his control, the liquor permit was not yet issued.1

{¶16} Both appellants contended that the issuance of a liquor permit was a condition precedent to the enforcement of the lease and that the lease was unenforceable under the doctrines of frustration of purpose and impracticability due to government action.

{¶17} The Wrobleskys filed a memorandum in opposition to the appellants’

motions to dismiss.

{¶18} The trial court subsequently issued a judgment entry denying Mr. Dyson’s motion to dismiss.

{¶19} The appellants filed an answer setting forth numerous defenses and a counterclaim. In their counterclaim, the appellants alleged that they entered into the lease

1. The lease defines the appellants collectively as “The Tenant” and does not refer to them as primary tenant and guarantor.

for the express purpose of operating a business that required the issuance of a state liquor permit; in anticipation of the approval of the liquor permit, they remitted lease payments; through no fault of their own, the liquor permit had not been issued; therefore, they were entitled to a refund of all amounts paid. The appellants sought judgment in an amount not less than $25,000.

{¶20} The Wrobleskys filed a “reply” to the appellants’ counterclaim, setting forth numerous defenses.

{¶21} The trial court held a status conference and subsequently issued a judgment entry granting Mr. Hughley’s oral motion to withdraw his motion to dismiss.

{¶22} The appellants filed a motion for summary judgment on the Wrobleskys’

breach of contract claim. The appellants asserted that the Ohio Liquor Control Commission had approved a liquor permit for Mr. Hughley, subject to several conditions, which he had satisfied. The appellants again argued that the issuance of a liquor permit was a condition precedent to the enforcement of the lease and that the lease was unenforceable under the doctrines of frustration of purpose and impracticability due to government action. In support of their motion, they attached purported certified copies of orders from the Ohio Liquor Control Commission.

{¶23} The Wrobleskys filed a memorandum in opposition and a cross motion for summary judgment on their breach of contract claim. In support of their motion, the Wrobleskys attached an affidavit from Frank Wroblesky.

{¶24} The appellants filed an opposition, which mirrored their prior motion for summary judgment.

{¶25} In May 2020, the trial court issued a judgment entry denying the appellants’

motion for summary judgment.2

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Wroblesky v. Hughley, 2021 Ohio 1063, 169 N.E.3d 709 (Ohio Ct. App. 2021).

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