Griffith v. Chelsea Condominimum - Settlement Agreement Dispute
Summary
The Ohio Court of Appeals reviewed a dispute over a settlement agreement, focusing on contract law, attorney's fees, and damages. The court affirmed the trial court's enforcement of the settlement but reversed and remanded the award of attorney's fees pending further review of mitigation arguments.
What changed
The Ohio Court of Appeals addressed a dispute concerning a settlement agreement, specifically regarding contract law, attorney's fees, and damages. The court affirmed the trial court's decision to enforce the settlement agreement, finding its terms unambiguous and not allowing appellants to deduct expenses. However, the court reversed and remanded the award of attorney's fees, as it was unclear whether the trial court had fully considered the appellants' argument that the appellee had an opportunity to mitigate its damages.
This decision has implications for parties involved in settlement disputes, particularly concerning the finality of agreements and the calculation of damages and attorney's fees. Compliance officers should note the court's emphasis on unambiguous contract terms and the requirement for thorough consideration of mitigation arguments before awarding attorney's fees. The case highlights the importance of clear drafting in settlement agreements and the potential for appeals based on procedural considerations regarding damages.
What to do next
- Review settlement agreements for unambiguous terms regarding expense deductions.
- Ensure all mitigation arguments are fully considered in damage and fee calculations.
- Consult legal counsel on the implications of this decision for ongoing disputes.
Source document (simplified)
Jump To
Top Caption Syllabus Combined Opinion
Support FLP
CourtListener is a project of Free
Law Project, a federally-recognized 501(c)(3) non-profit. Members help support our work and get special access to features.
Please become a member today.
March 19, 2026 Get Citation Alerts Download PDF Add Note
Griffith v. Chelsea Condominimum
Ohio Court of Appeals
- Citations: 2026 Ohio 928
- Docket Number: 115032
Judges: Groves
Syllabus
Settlement agreement; contract law; final order; attorney's fees; reasonableness; compensatory damages; mitigation. The trial court did not err when it granted appellee's motion to enforce settlement agreement where the terms of the agreement were unambiguous and did not allow appellants to deduct expenses from the settlement amount. Further, because the terms were unambiguous the trial court correctly determined that it was not allowed to consider extrinsic evidence to understand the settlement agreement. The trial court did not abuse its discretion when it found that the attorney's fees submitted by appellee were reasonable, where both parties' witnesses agreed the fee was reasonable, but only disagreed about whether it was proper for the appellee to charge a discounted rate to the insurance company and increase that rate when the insurance company withdrew coverage. The trial court did not err in reconsidering an interlocutory order where the calculation of prejudgment interest was not merely ministerial and where the decision regarding prejudgment interest was unlikely to prevent further appeals. Further the trial court properly determined that appellants had breached the settlement agreement when it withheld expenses contrary to the parties' agreement. However, the appellants presented evidence that the appellee had an opportunity to mitigate its damages. Because it is unclear whether the trial court considered appellants' mitigation argument, the award of attorney's fees is reversed pending further review by the trial court.
Combined Opinion
[Cite as Griffith v. Chelsea Condominimum, 2026-Ohio-928.]
COURT OF APPEALS OF OHIO
EIGHTH APPELLATE DISTRICT
COUNTY OF CUYAHOGA
CHARLES GRIFFITH, ET AL., :
Plaintiffs-Appellants, :
No. 115032
v. :
THE CHELSEA
CONDOMINIUM ET AL., :
Defendants-Appellees. :
JOURNAL ENTRY AND OPINION
JUDGMENT: AFFIRMED IN PART, REVERSED IN PART,
AND REMANDED
RELEASED AND JOURNALIZED: March 19, 2026
Civil Appeal from the Cuyahoga County Court of Common Pleas
Case No. CV-16-856562
Appearances:
Kehoe and Associates, LLC, Robert D. Kehoe, and Kevin
P. Shannon, for appellants.
Collins, Roche, Utley & Garner, LLC, Kurt Anderson, and
Megan D. Stricker, for appellee.
EMANUELLA D. GROVES, P.J.:
Plaintiffs-appellants Charles Griffith and John Griffith as powers of
attorney for Robert Griffith, Amelia Joynes, Charles Niles, Sheila Niles, Mindy
Silverstein nee Spero, William Steinbrink, Anne Tavill, and The Ruska Wasserstein
Trust (collectively, the “Owners”) appeal the decision granting defendant-appellee
the Chelsea Condominium Association’s (the “Association”) motion to enforce
settlement agreement and imposition of attorney’s fees.1 For the reasons that follow,
we affirm the decision in part, reverse in part, and remand for further proceedings
consistent with this opinion.
Factual and Procedural History
In December 2015, the Owners filed a verified class action and
derivative complaint against the Association, the Chelsea Condominium’s Board
(the “Board”), TransCon Builders, Inc. (“TransCon”), Owner’s Management
Company (“OM”), Peter Rzepka (“Peter”), and Fred Rzepka (“Fred”) (collectively,
the “Defendants”). The Owners, a group of current and former owners of units in
the Association, requested, as a class, declaratory judgment regarding the makeup
of the Board, and the Owners also raised claims for breach of fiduciary duty, breach
of contract, and negligence. The trial court ultimately denied the Owners’ request
for class certification. In addition, the Owners asserted derivative claims on behalf
of the Association against TransCon for negligent construction and against OM for
gross negligence and breach of contract.
During the course of litigation, Nationwide Mutual Insurance
Company, Nationwide Mutual Fire Insurance Company, and Nationwide Property
1One of the original plaintiffs, Dr. Anthony Tavill, passed away during the
pendency of the litigation.
& Casualty Insurance Company (collectively, “Nationwide”) moved to intervene in
the litigation for the purposes of filing a declaratory judgment action to determine
whether they had a duty to insure the Association, the Board, Transcon, OM, Peter,
and Fred. The trial court granted the motion.
The parties vigorously litigated the case and resolved the dispute
under two settlement agreements. The first agreement, the Confidential Mutual
Release and Settlement Agreement (the “CMRSA”), addressed the claims between
the Owners, Nationwide, and the Defendants. The CMRSA was not entered into the
record. The second agreement, the derivative settlement agreement (the “DSA”),
resolved the Owners’ derivative claims on behalf of the Association.
In September 2020, the Owners filed a joint motion to approve the
DSA. The DSA amended the original complaint and added Peter and Fred as
derivative defendants along with TransCon and OM (collectively, the “Derivative
Defendants”). The DSA required a $300,000 payment from the Derivative
Defendants to the Association to resolve all derivative claims. A complete copy of
the DSA was attached to the motion.
In November 2020, the court approved the DSA. In its order, the trial
court retained jurisdiction over the implementation, administration, and
enforcement of the DSA. The trial court then dismissed the derivative claims, with
prejudice, noting that “[t]he Derivative Claims are dismissed as against all
[Derivative Defendants] on the merits and with prejudice, with no fees or costs
assessed against any party except as expressly provided in the [DSA] and this
Judgment.”
In December 2021, the trial court filed a journal entry dismissing the
remainder of the case with prejudice based on the parties’ representation that all
claims, counterclaims, crossclaims, and intervening claims were settled. The trial
court did not retain jurisdiction over the CMRSA.
In February 2021, the Association filed a motion to enforce the DSA
and a motion to show cause. The Association alleged that the Owners violated the
terms of the DSA when they only distributed a partial payment of $290,144.66 and
the Owners’ attorneys retained $9,855.34 for various expenses. The Association
further alleged that the Owners’ attorney initially sent the partial payment with an
explanation that certain funds had been withheld to cover expenses. The letter also
noted that if the Association accepted the check, they agreed that the Owners’
attorneys properly withheld the funds. The Association returned the check and filed
the motion to enforce the DSA. The Association also requested that the trial court
order the payment of attorney’s fees, interest, and sanctions.
The Owners filed a motion for leave to file a reply brief in opposition
under seal and include the CMRSA. The Owners argued that it would be necessary
to disclose information from the CMRSA, which included a confidentiality clause.
Nationwide and the Association both filed briefs in opposition to the Owners’
motion to file under seal. After additional briefing, the trial court denied the
Owners’ motion. While the trial court ruled that the CMRSA could not be filed under
seal, it authorized the parties to stipulate to the disclosure of any provisions relevant
to the Association’s motion to enforce the DSA. In the interim and at the suggestion
of the court, the Owners distributed the undisputed settlement funds to the
Association.
The Owners appealed the decision denying their request to submit
their brief under seal. The trial court stayed the case pending appeal. The appeal
was dismissed for lack of a final appealable order. Griffith v. Chelsea Condominium,
No. 108988 (8th Dist. Oct. 23, 2019). The Owners appealed that dismissal to the
Ohio Supreme Court, which declined jurisdiction. 02/18/2020 Case
Announcements, 2020-Ohio-518, Griffith v. Chelsea Condominium, No. 2019-1693
(appeals not accepted for review). The trial court reactivated the case in September
2022.
The Owners subsequently filed a brief in opposition to the
Association’s motion to enforce the DSA. They also filed a cross-motion to enforce
the DSA, arguing that most of the Association’s arguments were moot because the
Owners had distributed the undisputed portion of the settlement fund to the
Association. The Owners asserted that the Association received a substantial benefit
from the derivative claims litigation and should bear some of the costs. The Owners
noted that “(1) the retention agreement between counsel and [Owners], made on
behalf of the Association, requires payment of expenses, (2) industry practice and
the Rules of Professional Conduct require the clients to pay expenses of litigation
and (3) it would be inequitable for the Association to take the benefit of the
settlement fund without paying the burden of litigation expenses.” The Owners did
not raise claims from the CMRSA because the parties were unable to agree to any
stipulations.
In January 2023, the trial court scheduled a hearing on the
Association’s motion to enforce the DSA and the responsive briefs. After listening
to the arguments of counsel, the trial court took the issue under advisement. The
Owners asked to proffer exhibits, which the trial court allowed.
The trial court issued a judgment entry (the “May 2, 2023 order”)
finding that the DSA unambiguously promised and entitled the Association to the
full $300,000 payment. The court further found that the Owners’ attorney never
raised a claim for litigation expenses at the time of the DSA and court order and,
therefore, any such claims were waived. The trial court ordered the Owners’
attorney to deliver the remaining balance of the settlement fund to the Association.
The trial court did not address the Association’s request for attorney’s fees, interest,
or sanctions in its order.
The Owners appealed the May 2, 2023 order. The Association filed a
motion to dismiss the appeal arguing that the May 2, 2023 order was not a final
appealable order. In the meantime, the Association filed a motion for clarification
and reconsideration, or relief from judgment in the trial court. The Association
argued that they were entitled to prejudgment interest under R.C. 1343.03, and that
they were entitled to attorney’s fees as actual damages for successfully litigating the
motion to enforce the DSA. Simultaneously, the Association filed a motion in this
court requesting a remand to the trial court for consideration of its motion, which
was denied as moot after this court granted the Association’s motion to dismiss the
appeal because the trial court’s May 2, 2023 order was not final and appealable.
Griffith v. The Chelsea Condominium, No. 112703 (8th Dist. June 12, 2023) (motion
Nos. 564312 and 564689).
Subsequently, the trial court issued an order granting the
Association’s request for prejudgment interest and explicitly denying their request
for attorney’s fees and sanctions (“June 29, 2023 order”). The order did not include
a calculation of prejudgment interest but noted that the amount would be
determined upon confirmation of the payment date.
The Association filed a motion for reconsideration, an amended
motion for reconsideration, and an alternative motion for relief from judgment. The
Owners filed a brief in opposition to the motion for reconsideration. Subsequently,
the Association filed an appeal to the June 29, 2023 order, and the Owners filed a
cross-appeal. The Association filed a motion asking this court to remand the case to
the trial court to allow it to consider its amended motion for reconsideration. This
court granted the motion for remand, advising the parties that if the trial court
resolved the issue they were to move to dismiss the appeal.
After the matter was remanded, the Owners filed a brief in opposition
to the Association’s amended motion and a hearing was held.
After listening to arguments of counsel at the hearing, the trial court
granted the Association’s amended motion for reconsideration (the “October 26,
2023 order”). The trial court found that the June 29, 2023 order was not a final
order under R.C. 2505.02(B)(4), and that it, therefore, could be reconsidered. The
court then amended the June 29, 2023 order only as to its ruling on attorney’s fees.
The court found that the Owners acted contrary to the DSA and the original
judgment that ordered the Owners to distribute $9,855.34 to the Association. As a
result, the Association was entitled to reasonable attorney’s fees to be determined
after a hearing on the issue. Thereafter, following the trial court’s instructions when
granting the earlier motion to remand, the appellants moved to voluntarily dismiss,
which this court granted. Griffith v. Chelsea Condominium, No. 113031 (8th Dist.
Oct. 27, 2023) (motion Nos. 568980 and 568983).
As is relevant to the present appeal, in March 2025, the trial court
issued a journal entry awarding the Association $40,338.95 in attorney’s fees; the
$9,855 outstanding settlement balance rounded to the nearest dollar; prejudgment
interest on the $300,000 from February 2, 2021, through March 25, 2021, and on
the $9,855 from March 26, 2021, through June 26, 2024; and statutory post-
judgment interest (the “March 19, 2025 order”).
The Owners appeal the trial court’s ruling on the motion to file
documents under seal and the May 2, 2023, June 29, 2023, October 26, 2023, and
March 19, 2025 orders, raising the following assignments of error for our review.
Assignment of Error No. 1
The trial court erred by failing to accept the global settlement
agreement under seal.
Assignment of Error No. 2
The trial court erred by finding that the Association should not be
required to pay its pro rata share of litigation expenses.
Assignment of Error No. 3
The trial court erred by finding that [the Owners] had breached the
settlement agreement and awarding fees to the Association.
Assignment of Error No. 4
The trial court erred in its calculation of attorney’s fees.
Assignment of Error No. 5
The trial court erred by denying [the Owners’] cross-motion to enforce
the settlement agreement.
Law and Analysis
For ease of analysis, we will address the Owners’ assignments of error
out of order and in combination when necessary.
I. Ruling on the Motions to Enforce Settlement Agreement
We begin with the Owners’ first, second, and fifth assignments of
error, which all challenge the trial court’s decision to grant the Association’s motion
to enforce the settlement agreement. In the first and second assignments of error,
the Owners argue that the trial court erred when it failed to consider the CMRSA
under seal, the Owners’ fee agreement with their counsel, common practice for
contingency fee agreements, the Rules of Professional Conduct, the common fund
doctrine, and equitable principles. For the same reasons, the Owners argue that the
trial court erred when it denied their cross-motion to enforce the settlement
agreement in the fifth assignment of error. The Owners’ arguments are not well
taken.
A. Standard of Review
The standard of review for a decision on a motion to enforce a
settlement agreement depends on the issue presented. “‘If the question is an
evidentiary one, this court will not overturn the trial court’s findings if there was
sufficient evidence to support the finding.’” Kingsbury v. Cornerstone Family
Office L.L.C., 2022-Ohio-18, ¶ 18 (8th Dist.), quoting Turoczy Bonding Co. v.
Mitchell, 2018-Ohio-3173, ¶ 15 (8th Dist.), citing Chirchiglia v. Ohio Bur. of
Workers’ Comp., 138 Ohio App.3d 676, 679 (7th Dist. 2000). “If the issue is a
question of contract law, the reviewing court must determine whether the trial
court’s order is based on an erroneous standard or a misconstruction of law.” Al-
Zubi v. Cosmetic & Implant Dental Ctr. of Cincinnati, Inc., 2020-Ohio-3272, ¶ 7 (1st
Dist.), citing Turoczy at id.; Continental W. Condominium Unit Owners Assn. v.
Howard E. Ferguson, Inc., 74 Ohio St. 3d 501, 502 (1996). In other words, the issue
is “whether the trial court erred as a matter of law in sustaining the motion to enforce
the settlement agreement.” Chirchiglia at id., citing Continental at id.
The facts in this case are undisputed. The Owners withheld $9,855.34
from the agreed settlement amount ostensibly to cover the Association’s purported
share of litigation expenses. Therefore, the question for this court is whether the
trial court erred as a matter of law when it found that the Owners violated the DSA
and granted the Association’s motion to enforce the settlement agreement. This
question requires a review of settlement-agreement law.
B. Settlement Agreements
Preliminarily, a settlement agreement is a contract “designed to
terminate a claim by preventing or ending litigation and that such agreements are
valid and enforceable by either party.” Continental at 502, citing Spercel v. Sterling
Industries, 31 Ohio St. 2d 36, 38 (1972). Settlement agreements “are highly favored
in the law.” Id., citing State ex rel. Wright v. Weyandt, 50 Ohio St.2d 194 (1977);
Spercel at id. Accordingly, contract law applies when examining the terms of a
settlement agreement. Issues regarding the construction of written contracts are
reviewed de novo, with the “purpose . . . to realize and give effect to the intent of the
parties.” J. Griffin Ricker Assocs., LLC v. Well, 2022-Ohio-1470, ¶ 21, citing
Alexander v. Buckeye Pipe Line Co., 53 Ohio St.2d 241 (1978), paragraph one of the
syllabus, and Skivolocki v. E. Ohio Gas Co., 38 Ohio St.2d 244 (1974), paragraph
one of the syllabus.
Where the terms of a contract are unambiguous, the court determines
the intent of the parties from the contract itself. F & L Ctr. Co. v. H. Goodman, Inc.,
2004-Ohio-5856, ¶ 6 (8th Dist.), citing Mattlin-Tiano v. Tiano, 2001 Ohio App.
LEXIS 32, *5 (10th Dist. Jan. 9, 2001); Starr v. Ohio Dept. of Commerce Div. of
Real Estate & Professional Licensing, 2021-Ohio-2243, ¶ 42; Antonucci v. Ohio
Dept. of Taxation, 2010-Ohio-3326, ¶ 8 (10th Dist.) (“Indeed, when contract terms
are clear and unambiguous, courts will not, in effect, create a new contract by finding
an intent which is not expressed in the clear language utilized by parties.”).
“Extrinsic evidence may be considered only when the language of the contract is
unclear or ambiguous or when the circumstances surrounding the agreement invest
the language of the contract with a special meaning.” F & L at ¶ 6, citing Shifrin v.
Forest City Ent., Inc., 64 Ohio St.3d 635 (1992).
Turning to the first assignment of error, the Owners argue that the
trial court erred when it refused to allow them to submit the CMRSA under seal
because a review of the CMRSA was a “necessary inquiry in determining if the [DSA
had] been breached.” The Owners do not argue that the DSA was unclear or
ambiguous. Rather, they argue that the circumstances surrounding the agreement
required the trial court to look at extrinsic evidence to determine whether they
violated the DSA.
Our first consideration is whether the DSA is ambiguous. If the DSA
is unambiguous, we may not consider extrinsic evidence to create an ambiguity that
does not appear on the face of the document. Shifrin at 638.
A review of the DSA establishes that the terms regarding the amount
of the payment to the Association are unambiguous. At Section II(F), the DSA
provides that the Association and its counsel “believe the $300,000 payment to the
Association is sufficient consideration for the settlement and discharge of the
Derivative Claims.” Section IV(B) indicates that the Derivative Defendants would
pay $300,000 to the Owners, who were charged with distributing the funds to the
Association.
The Owners argue that the word “distribution” implies that they were
entitled to deduct expenses; however, the plain language of the contract does not
support this interpretation:
Payment of the Settlement Amount. Pursuant to the terms of the
proposed Settlement, no later than ten (10) days after the Settlement’s
Effective Date, Derivative Defendants agree to cause to be paid
$300,000 to the [Owners] for subsequent distribution to the
[Association] to settle the derivative claims.
To find that this language entitles the Owners to deduct their
expenses, this court would have to add language to the DSA. The DSA simply and
unambiguously calls for the Derivative Defendants to present $300,000 to the
Owners, after which the Owners were to distribute the $300,000 to the Association.
Furthermore, the DSA contains a release, which states that on the
effective date of the settlement, all parties release any claims for “recovery for
liabilities, damages, losses, attorney’s fees, costs or expenses” based on the
derivative claims.
Because we find the settlement language to be unambiguous, the trial
court did not err when it denied the Owners’ motion to submit the CMRSA under
seal. The trial court was not permitted to go beyond the DSA to understand its
terms; thus, the first assignment of error is overruled.
For the same reasons, the Owners’ second and fifth assignments of
error must be overruled. The Owners argue that the trial court should have
considered that (1) their counsel was effectively the Association’s attorney for the
derivative claims and that his fee agreement with them should apply to the
Association allowing the deduction of litigation expenses from the settlement fund;
(2) it is common practice under contingency fee agreements for the attorney to
deduct litigation expenses from the settlement funds; (3) such a deduction was
proper because the Rules of Professional Conduct prevent the Owners’ counsel from
paying the expenses himself; and (4) both the common fund doctrine and equitable
principles require the Association to pay its share of litigation expenses. Further,
they argue that for these same reasons, the trial court erred when it failed to grant
their cross-motion to enforce the settlement agreement.
Each of these challenges requires the court to consider factors outside
of the DSA. Beginning with the Owners’ contract with their attorney, we cannot find
that the trial court erred when it did not consider the fee agreement. Assuming for
the sake of argument that the contract between the Owners and their attorney
applied to the Association, the trial court was not permitted to consider that separate
contract to understand the terms of the DSA where its terms were unambiguous.
In Ward v. Eaton US Holdings, 2017-Ohio-543 (8th Dist.), the
plaintiff agreed in a separate matter to reimburse his employer the sum of $5,000.
When he suffered an injury on the job, the plaintiff and the employer agreed to a
settlement of $20,000. However, instead of remitting $20,000, the employer
remitted $15,000, deducting the $5,000 owed from the total. The plaintiff filed a
motion to enforce the settlement agreement, but the trial court denied the motion.
On appeal, this court overturned the trial court’s decision finding that where the
settlement agreement was clear and unambiguous and did not provide for the
deduction of any funds from the settlement amount, the plaintiff was entitled to the
full amount. Id. at ¶ 14.
The Owners’ remaining arguments suggest that common legal
practices, rules of conduct, and law and equity should require the Association to pay
its portion of litigation expenses. We recognize that generally a derivative plaintiff
may recover attorney’s fees. Nordquist v. Schwartz, 2012-Ohio-4571, ¶ 21 (7th
Dist.), citing Apicella v. PAF Corp., 17 Ohio App.3d 245, 250 (8th Dist. 1984).
However, a party to a contract may choose to forego certain benefits to avoid the risk
of trial. “A settlement agreement does not have to be fair and equitable to be binding
and enforceable, so long as it is not procured by fraud, duress, overreaching or
undue influence.” Alotech Ltd. L.L.C. v. Barnes, 2017-Ohio-5569, ¶ 12 (8th Dist.),
citing Vasilakis v. Vasilakis, 1996 Ohio App. LEXIS 2569, *5-6 (8th Dist. June 20,
1996). The Owners have not argued that they were improperly induced into entering
the DSA; therefore, we give effect to the intent of the parties as established by the
contract. In this case that includes the Owners’ choice to forego reimbursement of
their litigation expenses.
Accordingly, the second and fifth assignments of error are overruled.
II. Reconsideration of the June 29, 2023 Order
In the third assignment of error, the Owners argue that the trial court
erred when it reconsidered its June 29, 2023 order, found that the Owners breached
the DSA, and ordered them to pay the Association’s attorney’s fees. Specifically, the
Owners argue that the trial court’s June 29, 2023 order was a final order that could
not be reconsidered. According to the Owners, even if it could be reconsidered, they
did not breach the DSA; they merely deducted expenses that the Association was
purportedly required to pay. Further, they challenge the trial court’s remedy,
arguing that attorney’s fees were discretionary, not mandatory. Therefore, it was
unnecessary for the trial court to reconsider its June 29, 2023 order to impose
attorney’s fees.
A. Reconsideration of Final Orders
The Owners argue that the June 29, 2023 order was a final order
because it disposed of all pending issues, except the calculation of prejudgment
interest. Citing this court’s decision in Zappola v. Rock Capital Sound Corp., 2014-
Ohio-2261, ¶ 26 (8th Dist.), the Owners argue that the calculation of prejudgment
interest is a ministerial task that does not prevent a judgment from being a final
order. Therefore, the trial court erred when it reconsidered that order. The Owners’
arguments lack merit.
“‘“A final order . . . is one disposing of the whole case or some separate
and distinct branch thereof.”’” Zunshine v. Cott, 2007-Ohio-1475, ¶ 20 (10th Dist.),
citing Noble v. Colwell, 44 Ohio St.3d 92, 94 (1989), quoting Lantsberry v. Tilley
Lamp Co., 27 Ohio St.2d 303, 306 (1971). Where a judgment is not final or
appealable, the trial court is permitted to reconsider it at any time prior to entry of
its final judgment. Id. at ¶ 23. A trial court’s decision that occurs before the
“‘judgment adjudicating all the claims and the rights and liabilities of all the parties’”
is subject to reconsideration. Assunta Rossi Personalty Revocable Living v.
Keehan, 2023-Ohio-3710, ¶ 11 (8th Dist.), quoting Civ.R. 54(B).
With respect to prejudgment interest, this court has noted that “[a]
judgment that leaves issues unresolved and contemplates further action is not a
final, appealable order under R.C. 2505.02(B)(1) unless the remaining issue is
mechanical and involved only a ministerial task.” Third Wing, Inc. v. Columbia Cas.
Co., 2011-Ohio-4827, ¶ 6 (8th Dist.), citing State v. Threatt, 2006-Ohio-905, ¶ 20.
The Ohio Supreme Court has noted:
Prejudgment interest is neither damages nor an easily computed cost.
Determining whether to grant prejudgment interest is not a merely
ministerial task; it requires the trial court to find that “the party
required to pay the judgment failed to make a good faith effort to settle”
and that “the party to whom the judgment is to be paid did not fail to
make a good faith effort to settle the case.” Moskovitz v. Mt. Sinai Med.
Ctr. [69 Ohio St.3d 638, 658 (1994)]. See R.C. 1343.03(C).
Determining whether prejudgment interest should be awarded
requires judicial fact-finding and the exercise of judicial discretion. We
conclude that, as between damages and costs, prejudgment interest is
more in the nature of damages.
Miller v. First Internatl. Fid. & Trust Bldg., 2007-Ohio-2457, ¶ 7.
In summary, a judgment that does not completely address damages
is final and appealable “‘where the computation of damages is mechanical and
unlikely to produce a second appeal because only a ministerial task similar to
assessing costs remains.’” Lucio v. Safe Auto Ins. Co., 2010-Ohio-2528, ¶ 23 (7th
Dist.).
In the instant case, the trial court granted the motion to enforce the
DSA in the May 2, 2023 order but did not address the request for prejudgment
interest, attorney’s fees, or sanctions. This court dismissed the subsequent appeal
finding that the May 2, 2023 order was not a final, appealable order because of those
outstanding issues. Griffith v. Chelsea Condominium Assn., No. 112703 (8th Dist.
June 12, 2023). The June 29, 2023 order followed, which denied the Association’s
request for attorney’s fees and sanctions and found that the Association was
“entitled to prejudgment interest as a matter of law which shall be calculated upon
confirmation of the date of payment.”
Two factors in this case signal that the calculation of prejudgment
interest was not merely ministerial. First, the court’s order depended on the Owners
remitting the disputed funds to the Association. Until the date of remittal was
known, the calculation could not be completed. Additionally, both parties had
vigorously litigated the case, filing two appeals prior to the settlement agreement,
and three after the Association filed its motion to enforce. Given the foregoing, there
was sufficient evidence in the record to find that the calculation of prejudgment
interest was not merely ministerial, and given the history, there was no certainty
that calculation of prejudgment interest would prevent further appeals. Lucio at
¶ 23 (“[I]f only a ministerial task similar to executing a judgment or assessing costs
remains and there is a low possibility of disputes concerning . . . individual claims,
the order can be appealed without waiting for performance of that ministerial
task.”). For those reasons, we find that the June 29, 2023 order was not a final order,
and the trial court was permitted to reconsider it.
B. Breach of the Settlement Agreement
Next the Owners argue that the trial court erred in finding that they
breached the DSA. They argue that they merely withheld funds the Association was
required to pay. Further, they argue that the imposition of attorney’s fees is
discretionary, not mandatory.
As we have already noted, a settlement agreement is a contract and
contract law applies to its evaluation. To succeed on a breach-of-contract claim, a
party must establish (1) the existence of a contract, (2) a breach of that contract, and
(3) they suffered damages resulting from that breach. R. Gibson Properties, L.L.C.
v. Genmoncha, L.L.C., 2021-Ohio-3732, ¶ 23 (8th Dist.), citing Superior Piping
Contrs., Inc. v. Reilly Industries, Inc., 2008-Ohio-4858, ¶ 15, (8th Dist.), citing
Lawrence v. Lorain Cty. Community College, 127 Ohio App.3d 546, 549 (9th Dist.
1998). When the issue is a breach of settlement, courts have found that the failure
to perform an aspect of the settlement that necessitates the other party starting
litigation establishes the breach. Tejada-Hercules v. State Auto. Ins. Co., 2008-
Ohio-5066, ¶ 21 (10th Dist.). “The rationale behind the exception for allowing
attorney’s fees expended as a result of enforcing a settlement agreement is that ‘any
fees incurred after the breach of the settlement agreement were relevant to the
determination of compensatory damages, including those fees [a party was] “forced”
to incur by filing the action.’” Brown v. Spitzer Chevrolet Co., 2012-Ohio-5623, ¶ 20
(5th Dist.), quoting Tejada-Hercules at ¶ 10. Here, the Owners’ action in
withholding litigation expenses led to the Association’s motion to enforce the DSA
and resulted in additional attorney’s fees, which established the breach.
Based on the foregoing, the trial court did not err when it found that
the Owners breached the DSA.
C. Imposition of Attorney’s Fees
Finally, the Owners argue that this court’s decision in Rayco, 2019-
Ohio-3756 (8th Dist.), did not mandate attorney’s fees when a party prevails after
the filing of a motion to enforce settlement agreement. The Owners presume that
the trial court imposed attorney’s fees on reconsideration based on a belief that
Rayco mandated the award. Even if the trial court properly applied Rayco to the
facts of this case, the Owners believe Rayco has been impliedly overruled by the
Ohio Supreme Court’s decision in Cruz v. English Nanny & Governess School,
2022-Ohio-3586, such that it was error to impose attorney’s fees at all.
We agree that the language of Rayco is discretionary because it
indicates a court “can” award attorney’s fees when a party prevails on a motion to
enforce settlement agreement. Rayco at ¶ 4.
Cruz does not directly address the Rayco decision. The Cruz Court
explicitly addressed the award of attorney’s fees for appellate work and found that
this court erred when it denied the appellant’s request for appellate attorney’s fees
where punitive damages had been awarded. The Cruz Court chose not to address
the finding in Rayco and other appellate decisions that allow an award of attorney’s
fees as compensatory damages toward the prevailing party in a settlement-
enforcement case.2 From our review, Cruz does not impliedly overrule the finding
in Rayco.
Accordingly, we find that the trial court had discretion to order
attorney’s fees when it found that the Owners breached the DSA. Therefore, the
third assignment of error is overruled.
III. Award of Attorney Fees and Expenses
Finally, in the fourth assignment of error, the Owners challenge the
reasonableness of the trial court’s award of attorney’s fees. We find that the Owners’
argument has merit.
A. Standard of Review
An appellate court reviews a trial court’s award of attorney’s fees
under the abuse-of-discretion standard. Barker v. McCoy, 2015-Ohio-3127, ¶ 32
(4th Dist.), citing Bittner v. Tri-County Toyota, Inc., 58 Ohio St.3d 143, 146 (1991).
An abuse of discretion occurs when a trial court’s decision is “unreasonable,
arbitrary, or unconscionable.” State v. Hill, 2022-Ohio-4544, ¶ 9, quoting State v.
Beasley, 2018-Ohio-16, ¶ 12, citing Blakemore v. Blakemore, 5 Ohio St.3d 217, 219
(1983). Unless we find an abuse of discretion, we will not disturb the trial court’s
ruling. Cleveland v. CapitalSource Bank, 2016-Ohio-3172, ¶ 8 (8th Dist.).
B. Reasonableness of Attorney’s Fees
2 Recently, the Ohio Supreme Court accepted Dornette v. Green Bldg. Consulting,
L.L.C., 2025-Ohio-4944 (1st Dist.), a case that directly challenges the holding in Rayco.
02/17/2026 Case Announcements, 2026-Ohio-475, Dornette v. Green Bldg. Consulting,
L.L.C., No. 2025-1637 (appeals accepted for review).
A trial court’s reasonableness determination regarding attorney’s fees
must be “based upon the actual value of the necessary services performed by the
attorney, and evidence must exist in support of the court’s determination.” Benton
Village Condominium Owners’ Assn. v. Bridge, 2018-Ohio-4896, ¶ 28 (8th Dist.),
citing Bolek v. Miller-McNeal, 2016-Ohio-1383. Further, a court looks to a number
of factors including: (1) the time and labor involved, the novelty of the issues raised,
and the necessary skill to pursue the course of action; (2) the customary fees for
similar legal services in the locality; (3) the amount involved and the results
obtained; and (4) the reputation, experience, and ability of counsel. CapitalSource
Bank at ¶ 11, citing Pyle v. Pyle, 11 Ohio App.3d 31, 35 (8th Dist. 1983), citing
Swanson v. Swanson, 48 Ohio App.2d 85 (8th Dist. 1976), and Prof.Cond.R. 1.5.
At the hearing, both the Association’s and the Owners’ witnesses
testified that $225 per hour was a reasonable rate for an experienced civil-litigation
attorney. The Owners’ witness argued that it was unreasonable for the Association’s
attorney to increase the rate of pay from $150 to $225. However, the evidence
revealed that Nationwide paid the Association’s attorney’s fees under their
insurance policy. The rate Nationwide received was discounted based on the volume
of business Nationwide provided to the law firm. When Nationwide ceased covering
the attorney’s fees, the Association’s attorney negotiated $225 per hour, the
undiscounted rate. Based on the foregoing, there was sufficient evidence in the
record to establish that the rate was reasonable. Accordingly, the trial court did not
abuse its discretion in finding that $225 per hour was reasonable.
Next, with respect to the award of expert fees, the Owners merely
argue that Rayco does not permit such an award. However, Rayco does not forbid
it either. The Owners do not cite to any other case law to support their argument
that expert fees are not allowed; accordingly, we decline to address it. App.R.
12(A)(2); App.R. 16(A)(7).
Finally, the Owners argue that it was unreasonable for the Association
to continue to pursue the enforcement action when the Owners offered to pay the
disputed amount in March 2022. The Board’s president testified that the Owners
offered to settle the enforcement action by paying the disputed amount. However,
the Board and the Association refused the offer because it did not include all the
accumulated prejudgment interest or attorney’s fees. The offer was made a year
after the motion to enforce was filed and almost 19 months before the trial court
found that attorney’s fees were appropriate. The Owners argue it was unreasonable
to continue to pursue the litigation after the settlement offer was made. The
Association argues that its choice to continue the litigation does not factor into the
reasonableness of attorney’s fees. The Owners’ argument may have merit.
Under Rayco, the prevailing party in a motion to enforce a settlement
agreement is entitled to attorney’s fees as compensatory damages to reimburse that
party for having to resort to litigation to enforce the agreement. Rayco, 2019-Ohio-
3756, at ¶ 4 (8th Dist.). ‘“Compensatory damages . . . shall be the result of the injury
alleged and proved, and . . . the amount awarded shall be precisely commensurate
with the injury suffered, neither more nor less. . . .”’ Whitaker v. M.T. Auto., Inc.,
2006-Ohio-5481, ¶ 18, quoting Birdsall v. Coolidge, 93 U.S. 64 (1876). “[A] party
who has been wronged by a breach of contract may not unreasonably sit idly by and
allow damages to accumulate.” Ritter v. Fairway Park Properties, L.L.C., 2004-
Ohio-2518, ¶ 14 (9th Dist.), quoting Calamari & Perillo, The Law of Contracts, § 562
at 14.15 (4th Ed. 1998). This court has held:
Under Ohio law, the injured party in a breach-of-contract action has a
duty to mitigate damages, meaning that the injured party cannot
recover damages that it could have prevented by reasonable affirmative
action. First Fin. Bank, N.A. v. Cooper, 2016-Ohio-3523, ¶ 23 (1st
Dist.). An injured party need only use reasonable, practical care and
diligence, not extraordinary measures to avoid excessive damages. Id.
The burden of proof for the affirmative defense of failure to mitigate
damages lies with the breaching party. Id.
(Cleaned up.) Benton Village Condominium Owners’ Assn., Inc., 2024-Ohio-1990
at ¶ 32 (8th Dist.).
The Owners presented testimony that they offered a settlement in the
amount of the disputed funds to resolve the dispute prior to the trial court’s ruling.
However, the Association presented testimony that that offer did not include
interest or attorney’s fees. This issue raises the question of whether the Association
mitigated its damages. Because we cannot tell from the trial court’s order whether
it considered mitigation of damages, we reverse the trial court’s award of attorney’s
fees and remand to the trial court to address that concern.
Judgment affirmed in part, reversed in part, and remanded for the
trial court to consider whether the Association mitigated its damages.
It is ordered that appellee and appellants split the 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 pleas 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.
EMANUELLA D. GROVES, PRESIDING JUDGE
MICHAEL JOHN RYAN, J., and
TIMOTHY W. CLARY, J., CONCUR
Named provisions
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Courts & Legal alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when Ohio Court of Appeals publishes new changes.