SPM Acquisition, L.L.C. v. Italian Restaurant Group, L.L.C.
Docket 115382
Court of record · Indexed in NoticeRegistry archive · AI-enriched for research
- Filed
- Jurisdiction
- Ohio
- Court
- Ohio Court of Appeals
- Type
- Opinion
- Case type
- Civil
- Judge
- E.A. Gallagher
- Citation
- 2026-Ohio-1279
- Docket
- 115382
Appeal from the Cuyahoga County Court of Common Pleas from an order granting summary judgment in a breach-of-contract action and denying a motion to disqualify counsel as moot
Summary
The Eighth District Court of Appeals reviewed a breach-of-contract suit in which SPM obtained judgment against guarantor Brinker after tenant Romano’s defaulted and vacated leased premises. The court reversed the trial court in part and remanded. It held that the lease did not expressly abrogate the landlord’s duty to mitigate damages, so mitigation was required as a matter of law once SPM retook possession. Because there are disputed facts about whether SPM made reasonable mitigation efforts, the case was sent back for a factfinder to determine mitigation and the correct damages. The court also remanded the unresolved attorney-disqualification motion for the trial court to decide on the merits.
Issues Decided
- Whether the lease and guaranty expressly abrogated the landlord’s duty to mitigate damages after tenant default
- Whether SPM, having retaken possession, had a duty to make reasonable efforts to mitigate damages
- Whether genuine issues of material fact exist about the reasonableness of SPM’s mitigation efforts precluding summary judgment
- Whether the trial court should have ruled on Brinker’s motion to disqualify SPM’s pro hac vice counsel instead of deeming it moot
Court's Reasoning
The court found no explicit lease or guaranty language stating the parties contracted away the duty to mitigate; key words like "mitigate" or "relet" were absent from the relied-on provisions. Section 14 of the lease, however, contemplates two landlord options upon tenant default — retake possession and seek damages or sue without retaking — which implies mitigation applies when possession is retaken. Because SPM retook possession under the parties’ stipulation, mitigation was required as a matter of law, and competing affidavits created factual disputes about whether SPM’s mitigation efforts were reasonable, making summary judgment improper on damages.
Authorities Cited
- Frenchtown Square Partnership v. Lemstone, Inc.2003-Ohio-3648
- Dresher v. Burt75 Ohio St.3d 280 (1996)
- Dana Corp. v. Blue Cross & Blue Shield Mut.900 F.2d 882 (6th Cir. 1990)
- Saunders v. Mortensen2004-Ohio-24
Parties
- Plaintiff
- SPM Acquisition, LLC
- Defendant
- Italian Restaurant Group, LLC (Romano’s)
- Defendant
- Brinker International, Inc.
- Attorney
- David P. Vallas (Honigman LLP, pro hac vice for SPM)
- Attorney
- David J. Fagnilli (Marshall Dennehey, P.C., for Brinker)
- Judge
- Eileen A. Gallagher
Key Dates
- Original lease date
- 1996-06-25
- Tenant vacated and tendered possession
- 2023-07-31
- Complaint filed
- 2023-09-15
- Stipulation and agreed judgment entry filed
- 2024-11-06
- SPM summary judgment motion filed
- 2025-02-06
- Pro hac vice motion filed (Vallas)
- 2025-04-03
- Pro hac vice motion granted
- 2025-04-08
- Motion to disqualify filed
- 2025-04-24
- Trial court granted summary judgment and entered judgment against Brinker
- 2025-05-05
- Trial court rendered motion to disqualify moot
- 2025-05-07
- Appellate decision released
- 2026-04-09
What You Should Do Next
- 1
Prepare evidence on mitigation
Parties should collect and submit documents and witness testimony about SPM’s marketing and leasing efforts after July 31, 2023 to support or rebut the reasonableness of mitigation.
- 2
Request or schedule a factfinder proceeding
The trial court should schedule an evidentiary hearing or trial on mitigation and damages; counsel should file proposed issues and pretrial materials focused on mitigation.
- 3
Seek trial-court ruling on disqualification motion
Brinker should ensure the trial court addresses its motion to disqualify pro hac vice counsel on the merits and present evidence under the Dana test.
- 4
Consult counsel about appeal strategy
Depending on outcomes below, parties should consult appellate counsel about potential further appeals, preservation of issues, and briefing deadlines.
Frequently Asked Questions
- What did the appeals court decide?
- The court held that the lease did not clearly eliminate the landlord’s duty to try to reduce damages after a tenant default, reversed the trial court’s damages ruling, and sent the case back so a factfinder can decide whether SPM reasonably tried to re-lease the property and what damages are owed.
- Who is affected by this decision?
- SPM (the landlord), Brinker (the guarantor), and any successor tenants are affected because the amount Brinker must pay may change depending on findings about mitigation efforts.
- What happens next in the lower court?
- The trial court must hold proceedings for a factfinder to decide whether SPM made reasonable mitigation efforts and to recalculate damages accordingly; the court must also rule on Brinker’s motion to disqualify the pro hac vice attorney.
- Does this decision resolve Brinker’s liability?
- No; the appeals court left Brinker’s liability under the guaranty intact but concluded the damages awarded need further factfinding relating to mitigation.
- Can the trial court’s upcoming rulings be appealed again?
- Yes; after the trial court resolves mitigation, damages, and the disqualification motion, the losing party can pursue further appeal challenging those determinations.
The above suggestions and answers are AI-generated for informational purposes only. They may contain errors. NoticeRegistry assumes no responsibility for their accuracy. Consult a qualified attorney before relying on them.
Full Filing Text
[Cite as SPM Acquisition, L.L.C. v. Italian Restaurant Group, L.L.C., 2026-Ohio-1279.]
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.).
Furthermore, we note that “mitigation of damages is just that — a
mitigation of damages incurred: the potential defense does not stop a plaintiff from
asserting contract damages; instead, it can subtract from damages that have been
suffered.” White v. Bowling Green State Univ., 2021-Ohio-4069, ¶ 17 (10th Dist.).
“The doctrine of mitigation of damages is intended to prevent an inclusion in the
damage award of such damages that could have been avoided by reasonable
affirmative action by the injured party without substantial risk to such party.”
Czarnecki v. Basta, 112 Ohio App.3d 418, 423 (8th Dist. 1996).
4. Analysis
a. Ohio Cases Interpreting Mitigation Clauses
In B&G Props. Ltd. Partnership v. OfficeMax, Inc., 2013-Ohio-5255
(8th Dist.), this court found that the commercial lease at issue expressly stated that
the parties invalidated the landlord’s duty to mitigate damages. Section 7.1 of the
B&G lease states that, in the event of a breach, “Tenant shall remain liable for the
[rent] for the balance of said term, whether [the property] be relet or not . . . .
Landlord shall not be liable for failure to relet the [property], and in the event of
reletting, for failure to collect the rent under such reletting.” Id. at ¶ 24.
In Scott Holding Co. v. Turbo Restaurants US, LLC, 2024-Ohio-5240
(5th Dist.), the court found that the commercial lease at issue expressly stated that
the parties invalidated the landlord’s duty to mitigate damages. Section 13(d) of the
Scott lease, which is titled “Default,” states as follows: “Landlord shall have the right,
but not the obligation, to relet the whole or part of the Premises upon terms which
Landlord, in its sole discretion, deems appropriate . . . .” Id. at ¶ 40.
In CSRA Columbus OH Fitness Master Lessee, LLC v. Fitness &
Sports Clubs, LLC, 2025-Ohio-2645 (5th Dist.), the court found that the commercial
lease at issue expressly stated that the parties invalidated the landlord’s duty to
mitigate damages. Section 8.2(d) of the CSRA lease, which is titled “Remedies,”
states as follows: “Landlord shall not be obligated to relet the [Property] and may
recover damages hereunder without such consideration.” Id. at ¶ 16.
Unlike the preceding cases, in Westfield Franklin Park Mall, LLC v.
Vanity Shop of Grand Forks, Inc., 642 F.Supp.2d 756, 757 (N.D.Ohio 2008), the
commercial lease at issue contained an explicit mitigation clause: “Landlord shall
use its reasonable efforts to mitigate its damages hereunder; however the failure or
refusal of Landlord to relet the [property] shall not affect Tenant’s liability.” The
court found that “nothing in this provision, if read reasonably, relieves the landlord
of its obligation to try to mitigate its damages by re-letting the premises to a suitable
tenant.” Id.
b. SPM’s Duty to Mitigate Damages
In Brinker’s first assignment of error, it argues that the trial court
erred by granting summary judgment in favor of SPM and against Brinker.
Specifically, Brinker’s argument on appeal, since it was in opposition to summary
judgment, is twofold. First, the Lease and Guarantee do not invalidate SPM’s duty
to mitigate damages and second, “there are issues of fact as to whether SPM failed
to mitigate damages.”
SPM argues that the “plain language of Section 14 [of the Lease]
abrogated SPM’s duty to mitigate by explicitly giving SPM the right and option —
rather than the duty — to retake possession of the Premises, i.e., to mitigate.” SPM
further argues that “Section 14 also provides a separate measure of damages
depending on whether SPM exercised its option to mitigate . . . . That is, SPM had
one remedy if it retook possession of the Premises and did not exercise its option to
mitigate ([Romano’s] would be liable for rent as it accrued) and a different remedy
if SPM retook possession of the Premises and did in fact mitigate ([Romano’s] would
be liable for the accelerated difference between the rents.).”
Brinker, in its reply brief, argues that the language in Section 14 of the
Lease affords SPM the “right and option” to retake possession of the Property after
a default, but this is not necessarily the same thing as the “right and option to
mitigate” or the “right and option to relet the Premises.” According to Brinker, to
say that retaking possession means the same thing as mitigating damages requires
reading language into the Lease that is not there.
In this case, the trial court found in favor of SPM and against Brinker
regarding Brinker’s obligation to guarantee Romano’s performance of the Lease.
Brinker does not raise the issue of liability for breach of contract in this appeal.
Rather, the issue raised by Brinker on appeal is whether, under the Lease and the
Guarantee, the parties agreed to abrogate SPM’s duty to mitigate damages, and if
not, whether SPM demonstrated on summary judgment reasonable efforts to
mitigate its damages after Romano’s defaulted.
In its journal entry granting SPM’s summary-judgment motion
against Brinker, the trial court found as follows: “The court finds that the Lease and
Guaranty in this case contain language abrogating the duty to mitigate damages.”
To support its decision, the trial court cited one provision from the Lease and one
provision from the Guarantee.
First, the trial court found that “the Lease requires [Romano’s] to pay
all amounts of rent as it accrues [sic] ‘without deduction or setoff whatsoever.” This
language in the Lease is found in Section 3, which is titled RENT. Section 3(A)
states, in part pertinent to this appeal, as follows: “Fixed Minimum Rent.
[Romano’s] agrees to pay to [SPM] as ‘Fixed Minimum Rent’ for the [Property]
without deduction or set-off whatsoever . . . (i) . . . monthly installments of . . .
$8,937.50” for 20 years.
Second, the trial court found that “the Guaranty states that ‘no act
[sic] or omission of any kind on the part of [SPM] shall in any way affect or impair
this Guarantee.”’ This language in the Guarantee is found on page one of the two-
page document in the following unlabeled paragraph:
Except as expressly provided herein, [Brinker] waives acceptance,
notice of acceptance, presentment, demand, protest or any other notice
of any kind, promptness in commencing and diligence in prosecuting
suit and/or giving any notice of or in making any claim or demand upon
[Romano’s] and agrees that no action or omission of any kind on the
part of [SPM] shall in any event affect or impair this Guarantee.
Upon our de novo review of the Lease and Guarantee provisions on
which the trial court relied, we find no explicit language stating that the parties
agreed that SPM was abrogating its duty to mitigate damages. We note that the
words “mitigate,” “mitigation,” “relet” and “reletting” are nowhere to be found in
these provisions of the Lease or Guarantee. To compare, the lease provisions at issue
in Scott, CSRA, B&G and Westfield all contained at least one of these words, and the
courts, in all four cases, found that the parties’ intent concerning mitigation was
expressly stated in each lease. In other words, these two provisions in this case do
not expressly concern mitigation.
We now review each of these two contract provisions to determine if
ambiguous language demonstrated the parties’ intent to contract around SPM’s duty
to mitigate.
Section 3 of the Lease governs rent and states, in part, that Romano’s
shall pay rent “without deduction or set-off whatsoever.” The Ohio Supreme Court
has held that a “set-off, whether legal or equitable, must relate to cross demands in
the same right, and when there is mutuality of obligation.” Andrews v. State, 124
Ohio St. 348 (1931), paragraph five of the syllabus. Additionally, a set-off is a “right
which exists between two parties, each of whom under an independent contract
owes a definite amount to the other, to set off their respective debts by way of mutual
deduction.” Witham v. South Side Bldg. & Loan Assn., 133 Ohio St. 560, 562 (1938).
See also Franciscan Communities, Inc. v. Rice, 2024-Ohio-4796, ¶ 10 (8th Dist.)
(recently citing Andrews and Witham to define set-off).
Because Section 3 of the Lease governs rent rather than default, and
because the definition of set-off does not include mitigation of damages after a
breach of contract, we conclude that Section 3 of the Lease sheds no light on the
issue of whether the parties agreed to SPM abrogating its duty to mitigate damages
in the event of a default by Romano’s. In the cases we reviewed, we found no leases
contemplating mitigation — either for or against it — in the “rent” section.
The provision of the Guarantee at issue states that Brinker waives
“notice of any kind [and] promptness in commencing and diligence in prosecuting
suit” and agrees that SPM’s actions or omissions shall not affect the Guarantee. As
stated, mitigation is a calculus of damages. Mitigation does not affect the issue of
liability for breach of contract. Indeed, there can be no mitigation without liability
and, more specifically, there can be no mitigation of damages if no injury occurred.
See Boyd v. Cogan, 2012-Ohio-1604, ¶ 11 (4th Dist.) (holding that “a party must
actually be injured before the law imposes a duty to mitigate”). Because whether
SPM mitigated its damages does not affect Brinker’s liability under the Guarantee,
this provision of the Guarantee also sheds no light on whether the parties agreed
SPM abrogated its duty to mitigate.
Section 14 of the Lease, which is titled DEFAULT BY TENANT, states,
in part in the first paragraph, that if Romano’s defaults:
LANDLORD, at its option, may terminate this Lease and re-enter upon
the Demised Premises and take possession thereof with full right to sue
for and collect all sums or amounts with respect to which TENANT may
then be in default and accrued up to the time of such entry, including
damages to LANDLORD by reason of any breach or default on the part
of TENANT, or
LANDLORD may elect to bring suit for the collection of such rents and
damages without entering into possession of the Demised Premises or
voiding this Lease.
(Emphasis and paragraph break added.)
This first paragraph of Section 14 of the Lease expressly states that, if
Romano’s defaults, SPM has two options. First, SPM may terminate the Lease,
retake possession of the Property and sue Romano’s for damages. Second, SPM may
sue Romano’s for damages without retaking possession of the Property and without
voiding the Lease. These options are listed in the alternative and separated by the
word “or.”
Section 14 of the Lease states, in pertinent part in the second
paragraph, that if Romano’s defaults:
LANDLORD shall also have the right and option . . . to retake
possession of the Demised Premises from TENANT . . . and shall not be
deemed to have absolved or discharged TENANT from any of its
obligations and liabilities for the remainder of the term of this Lease,
and TENANT shall . . . continue to be liable for the payment of rents
. . . in monthly installments . . . and, if in the event of such ouster,
LANDLORD rents or leases the Demised Premises to some other
[entity] for an aggregate rent during the portion of such new lease co-
extensive with the term created hereunder which is less than the rent
and other charges which TENANT would pay hereunder for such
period and TENANT thereafter defaults in the payment of monthly
deficits, LANDLORD may . . . recover the difference between the rental
provided for in said new lease for the portion of the term co-extensive
with the term created hereunder and the rent which TENANT would
pay hereunder for such period, as the same shall accrue.
This second paragraph of Section 14 of the Lease expands on SPM’s
first option, contemplating mitigation if SPM retakes possession of the Property in
the event Romano’s defaults. Under the Lease, if SPM retakes possession of the
Property, Romano’s is still obligated to pay the rent monthly. Additionally, if SPM
leases the Property to another entity, i.e., mitigates it damages, SPM may recover
the difference in rent “as the same shall accrue.”
Upon our de novo review of Section 14 of the Lease, we find no explicit
language expressing that the parties agreed that SPM abrogated its duty to mitigate
damages. Nothing in Section 14 of the Lease, when read reasonably, demonstrates
that the parties agreed to SPM abrogating its duty to mitigate. Rather, we find that
Section 14 of the Lease expressly demonstrates that the parties contemplated
mitigation when agreeing to the terms of the contract and did not abrogate
mitigation by contracting around it.
We further find that the parties agreed in the Stipulation that, when
Romano’s defaulted on the Lease, it “vacated and tendered possession of the
[Property] to [SPM] on or about July 31, 2023.” The Stipulation was attached to
SPM’s summary-judgment motion. As stated previously, a stipulation is considered
proper evidence upon which to base a summary-judgment ruling pursuant to Civ.R.
56(C). Therefore, it is undisputed that, upon Romano’s default, SPM retook
possession of the Property in accordance with the first option in Section 14 of the
Lease. See Frenchtown Square Partnership v. Lemstone, Inc., 2003-Ohio-3648,
¶ 21 (“A lessor has a duty to mitigate damages caused by a lessee’s breach of a
commercial lease if the lessee abandons the leasehold.”). Under this first option,
mitigation is contemplated rather than abrogated. In other words, there is no
provision in the Lease contrary to SPM’s inherent duty to mitigate.
Accordingly, we find that there is no genuine issue of material fact
regarding mitigation, and SPM had a duty to mitigate its damages as a matter of law
under the Lease after it retook possession of the Property. The trial court erred when
it held otherwise.
c. Factual Dispute Regarding Whether SPM
Reasonably Attempted to Mitigate its Damages
Having found SPM’s duty to mitigate was not invalidated, we turn to
whether SPM demonstrated on summary judgment that it made reasonable efforts
to mitigate in this case. The trial court found no duty to mitigate and, therefore, did
not address whether SPM mitigated its damages. SPM attached to its motion for
summary judgment an affidavit of the leasing agent for the Property, which sets
forth his “efforts to lease” the Property. Brinker attached to its brief in opposition
to summary judgment the affidavit of its chief legal officer, who opined that SPM’s
efforts to lease the Property were not reasonable. As stated previously, affidavits are
proper Civ.R. 56(C) evidence upon which to base a summary judgment ruling.
Upon review, we find genuine issues of material fact concerning
whether SPM’s efforts to mitigate were reasonable. In Telecom Acquisition Corp. I
v. Lucic Enters., 2016-Ohio-1466, ¶ 93 (8th Dist.), this court held as follows:
In summary judgment proceedings, a court may not weigh the evidence
or judge the credibility of sworn statements, properly filed in support
of or in opposition to a summary judgment motion, and must construe
the evidence in favor of the nonmoving party . . . . When trial courts
choose between competing affidavits and testimony, they improperly
determine credibility and weigh evidence contrary to summary
judgment standards.
See also Turner v. Turner, 67 Ohio St.3d 337, 341 (1993) (“Credibility issues
typically arise in summary judgment proceedings when one litigant’s statement
conflicts with another litigant’s statement over a fact to be proved. Since resolution
of the factual dispute will depend, at least in part, upon the credibility of the parties
or their witnesses, summary judgment in such a case is inappropriate.”).
Accordingly, the trial court erred, in part, by granting SPM’s
summary-judgment motion. Granting summary judgment concerning Brinker’s
liability under SPM’s breach-of-contract claim is not at issue in this appeal, and the
trial court’s judgment that Brinker breached the Guarantee stands. However, the
trial court erred by granting summary judgment in favor of SPM on the issue of
mitigation and awarding damages. Based on the undisputed facts in the record,
SPM had a duty to mitigate its damages, as a matter of law, after Romano’s defaulted
on the Lease. Additionally, there is a factual dispute concerning whether SPM’s
mitigation efforts were reasonable and, thus, there is a factual dispute regarding the
amount of damages for which Brinker is liable in this case. See Apple Ohio, LLC v.
Rose Italian Kitchen Solon, LLC, 2023-Ohio-2880, ¶ 19 (8th Dist.) (“Whether a
landlord has made reasonable efforts to mitigate its damages is a question for the
trier of fact.”).
Accordingly, Brinker’s first assignment of error is sustained in part,
and this case is remanded to the trial court for further proceedings by the trier of
fact regarding mitigation and the amount of damages.
B. Motion to Disqualify Attorney for Conflict of Interest
1. Law
“The trial court has wide discretion in the consideration of motions to
disqualify counsel [and] [t]he determination of the trial court will not be reversed
upon appeal in the absence of an abuse of discretion.” Fried v. Abraitis, 2016-Ohio-
934, ¶ 11 (8th Dist.). The Ohio Supreme Court has defined abuse of discretion as “a
court exercising its judgment, in an unwarranted way, in regard to a matter over
which it has discretionary authority.” Johnson v. Abdullah, 2021-Ohio-3304, ¶ 35.
“In determining whether to disqualify a party’s attorney based on a
conflict of interest, Ohio courts have applied the Dana test.” Fried at ¶ 12. In Dana
Corp. v. Blue Cross & Blue Shield Mut., 900 F.2d 882, 889 (6th Cir. 1990), the court
held as follows:
A three-part test for disqualification exists: (1) a past attorney-client
relationship existed between the party seeking disqualification and the
attorney it seeks to disqualify; (2) the subject matter of those
relationships was/is substantially related; and (3) the attorney
acquired confidential information from the party seeking
disqualification.
2. Analysis
In Brinker’s second assignment of error, it argues that the trial court
erred by not disqualifying one of SPM’s attorneys based on conflict of interest.
On April 3, 2025, Illinois attorney David Vallas (“Vallas”) filed a
motion in the trial court to appear pro hac vice for SPM in this case. The trial court
granted this motion on April 8, 2025. On April 24, 2025, Brinker moved to
disqualify Vallas based on a conflict of interest alleging that Vallas previously
represented Brinker in related litigation. After granting SPM’s summary-judgment
motion, the court denied the motion to disqualify Vallas as moot.
Given our disposition of Brinker’s first assignment of error, we find
that the trial court erred by failing to rule on the merits of Brinker’s motion to
disqualify Vallas because this issue is not moot. The Ohio Supreme Court has held
that issues are moot “when they are or have become fictitious, colorable,
hypothetical, academic or dead. The distinguishing characteristic of such issues is
that they involve no actual genuine, live controversy, the decision of which can
definitely affect existing legal relations.” (Cleaned up.) State ex rel. Cincinnati
Enquirer v. Hunter, 2014-Ohio-5457, ¶ 4.
We cannot reach a conclusion regarding the merits of Brinker’s
motion to disqualify Vallas for the first time on appeal. Instead, we remand this case
to the trial court to make this determination for the first time. See State v. Peagler,
76 Ohio St.3d 496, 501 (1996) (“A court of appeals cannot consider the issue for the
first time without the trial court having had an opportunity to address the issue.”).
Accordingly, Brinker’s second assignment of error is overruled and
this case is remanded for the trial court to rule on the merits of Brinker’s motion to
disqualify Vallas.
Judgment reversed, in part, and case remanded for further
proceedings by the trier of fact regarding whether SPM made reasonable efforts to
mitigate its damages, as well as the amount of damages awarded, and for a hearing
to determine whether appellee and/or counsel David P. Vallas is responsible for
attorney fees incurred by appellants and, if so, the amount thereof.
It is ordered that appellant recover from appellee costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this court directing the
common please 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.
________________________
EILEEN A. GALLAGHER, JUDGE
MARY J. BOYLE, P.J., and
DEENA R. CALABRESE, J., CONCUR