Weston, Inc. v. Browning-Ferris Industries of Ohio, 89051 (3-27-2008)
Weston, Inc. v. Browning-Ferris Industries of Ohio, 89051 (3-27-2008)
Opinion of the Court
{¶ 3} The pertinent paragraphs of the ROFR between BFI and Duke (now assigned to ILP) are as follows:
"14. Notice. All notices required or permitted to be given hereunder shall be in writing and delivered in person, by overnight courier, or by certified or registered first-class prepaid mail, return receipt requested, to Seller or Buyer * * *. Any notice given in accordance with this paragraph shall be deemed to have been duly given or delivered on the date the same is *Page 5 personally delivered to the recipient, the day after same if sent by overnight courier, or two (2) days after when mailed if sent by registered or certified mail.
* * *
"23. Right of First Refusal. [If BFI receives an offer on the property], Seller shall send Buyer a copy of the proposed offer and notify Buyer of Seller's intention to accept same. Buyer shall then have ten (10) business days to accept the terms of said offer in writing. If Buyer shall not so elect within the ten (10) business day period, Seller may then sell such property to said offeror * * *."
{¶ 4} On October 21, 2006, Weston deposited $100,000 in escrow for the property in accordance with the PSA and a due diligence agreement it negotiated with BFI, effective October 16, 2006.
{¶ 5} On October 23, 2006, BFI received ILP's correspondence exercising the ROFR. In turn, BFI notified Weston to immediately cease all due diligence transactions. BFI did not execute the PSA with Weston; rather, it went forward with the sale of the land to ILP.
{¶ 6} On October 30, 2006, Weston filed a claim for a temporary restraining order and preliminary injunction to stop BFI's transaction with ILP, which the court granted. Weston then filed a breach of contract claim, requesting the following relief: declaratory judgment, to determine the rights of the parties; permanent injunction, to enjoin BFI from selling the property to ILP; and specific performance, to enforce its PSA with BFI. On November 20, 2006, the court found in favor of Weston, declaring that ILP did not exercise the ROFR in a timely fashion, granting Weston's permanent *Page 6 injunction against BFI selling to ILP, and ordering specific performance of the PSA. On November 21, 2006, ILP appealed the trial court's judgment; however, it failed to obtain a stay of the judgment's execution.
{¶ 7} Meanwhile, BFI complied with the trial court's orders, executing the PSA with, and transferring the property to, Weston on December 20, 2006. On December 22, 2006, Weston filed a motion in this court to dismiss ILP's appeal as moot because the judgment had been satisfied via specific performance of the PSA. Additionally, Weston and BFI filed cross-appeals. On February 15, 2007, we granted Weston's motion to dismiss ILP's appeal as moot,1 leaving the cross-appeals pending.
{¶ 9} Weston's second and third cross-assignments of error require us to review the underlying litigation, either by interpreting one of the contracts at issue, or by determining the procedural soundness of a proposed amended complaint. No substantive case or controversy currently exists between Weston and BFI, as specific performance of the contract has been completed. This renders all arguments between Weston and BFI stemming from the underlying litigation moot. See Marotta Bldg. Co. v.Lesinski, Geauga App. No. 2004-G-2562,
{¶ 10} BFI's sole cross-assignment of error reads: "Whether the trial court erred in failing to award Browning-Ferris Industries of Ohio, Inc. its attorneys' fees incurred in connection with the underlying litigation as provided for in the due diligence agreement." Based on our disposition of Weston's first cross-assignment of error, infra, BFI's cross-assignment of error is overruled.
"Attorneys' Fees: In the event either party commences litigation for the judicial interpretation, enforcement, termination, cancellation or rescission hereof, then, in addition to any or all other relief awarded in such litigation, the prevailing party therein shall be entitled to a judgment against the other for an amount equal to reasonable attorneys' fees, expert witness fees, litigation related expenses, and court costs in such litigation."
{¶ 12} In its November 20, 2006 journal entry and opinion, the court stated as follows: "* * * BFI is ordered to execute and specifically perform its obligations under the PSA with Plaintiffs, Weston, Inc., * * *. Attorneys fees are denied."
{¶ 13} While we have no authority to review a court's decision to grant specific performance of a contract once that contract has been performed, we may review a court's determination regarding attorneys' fees for an abuse of discretion. See Brooks v. HurstBuick-Pontiac-Olds-GMC, Inc. (1985),
{¶ 14} A careful review of the record in the instant case shows that Weston did not present evidence of the time the attorneys spent on this case, the rates charged, or the fees of local attorneys under similar circumstances. In reading the Ohio Supreme Court's opinions inBrooks, Bittner, and Villella together, we sustain Weston's first assignment of error and remand this case to the trial court for a hearing on attorneys' fees.
{¶ 15} Accordingly, the cross-appeal is reversed in part, dismissed in part, and remanded to the lower court for further proceedings consistent with this opinion.
It is ordered that cross-appellants share the costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate be sent to said court to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure. *Page 10
ANTHONY O. CALABRESE, JR., PRESIDING JUDGE
MARY EILEEN KILBANE, J., and MELODY J. STEWART, J., CONCUR
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