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Case Notes
Court Decides Who Is the 'Prevailing Party'
The Court of Appeals of Ohio, Eighth Appellate District, Cuyahoga County, recently affirmed a trial court's award of attorney fees to a commercial tenant because, although the tenant did not prevail on each and every aspect of the multiple claims, it did prevail on the main counts of the lawsuit. Simbo Properties Inc. v. M8 Realty LLC, 2019-Ohio-3091 (7/1/201).
Simbo Properties Inc. (Simbo) entered into a 18-month commercial lease with tenant M8 Realty LLC (M8) in December 2012. One of the lease's provisions stated: "If a lawsuit is filed with respect to this Lease, the prevailing party shall be entitled to collect all reasonable attorney's fees and costs." During the tenancy, Simbo claimed that M8 violated several provisions of the lease, leading the landlord to file a four-count complaint against M8 in January 2016. The landlord's complaint sought rent of approximately $150,000, real estate taxes of approximately $32,000, property damage compensation of approximately $30,000, and other non-specified damages. The tenant counterclaimed. After motions and trial, all liabilities were determined, with tenant M8 prevailing as to the rent, but landlord Simbo prevailing as to two of its claims and tenant's counterclaim.
The trail court also awarded tenant M8 attorney fees after determining that it was the "prevailing party" who, under the terms of the lease, was entitled to collect such fees. The landlord appealed.
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