Ebner v. Ebner
CourtOhio Court of Appeals
Date FiledOctober 20, 2026
Docket25AP-843 & 25AP-846
JudgeTucker
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
[Cite as Ebner v. Ebner, 2026-Ohio-4120.]
IN THE COURT OF APPEALS OF OHIO
TENTH APPELLATE DISTRICT
Mark Ebner, :
Plaintiff-Appellee, :
v. : No. 25AP-843
Sylvia Ebner et al., : (REGULAR CALENDAR)
Defendants-Appellees, :
[Lisa Rosen, :
Appellant]. :
Mark Ebner, :
Plaintiff-Appellee, :
v. : No. 25AP-846
Sylvia Ebner et al., : (REGULAR CALENDAR)
Defendants-Appellees, :
[Cynthia Ebner, :
Appellant]. :
D E C I S I O N
Rendered on October 20, 2026
Attorneys for Appellee/Cross-Appellant,
Mark Ebner: Maryellen Reash and Robert A. Bracco
Attorney for Appellees/Cross-Appellants,
Sylvia Ebner, et al.: Bonnie D. Michael
Appellant/Cross-Appellee: Lisa Rosen, Pro Se
Nos. 25AP-843 & 25AP-846 2
Attorney for Appellant/Cross-Appellee Cynthia
Ebner: Steven E. Miller and Sidney M. Fimiani, Rick L.
Ashton and Jeffrey R. Corcoran
APPEAL from the Franklin County Court of Common Pleas
TUCKER, J.
{¶ 1} Cynthia Ebner and Lisa Rosen appeal from the trial court’s entry of final
judgment following two partial summary judgment rulings in favor of Mark Ebner on his
breach of contract claim against them. They contend the trial court erred in finding, as a
matter of law, that Mark had purchased and was the sole owner of two family-operated
real estate businesses, Ebner Properties Limited, LLC, and Ebner Development, LLC. 1
They also claim the trial court erred in finding, as a matter of law, that another entity,
Tuttle Partners, Ltd., was included in Mark’s purchase.
{¶ 2} On cross-appeal, Mark challenges the trial court’s sua sponte dismissal of
other claims he brought against Cynthia and Lisa. He also disputes the trial court’s finding
that an appealable order resulted from his settlement and voluntary dismissal of all claims
against his mother, Sylvia Ebner, and other parties and from the trial court’s dismissal,
on mootness grounds, of his remaining claims against Cynthia and Lisa.
{¶ 3} For the reasons set forth below, we conclude that the trial court erred in
entering summary judgment for Mark on his breach of contract claim against Cynthia and
Lisa. The trial court also erred in entering summary judgment for Mark on a motion for
declaratory judgment regarding the inclusion of Tuttle Partners in his purchase. The trial
court further erred in finding Mark’s other claims against Cynthia and Lisa to be moot
after resolving his breach of contract claim. Finally, we reject Mark’s argument that the
judgment entry from which the parties have appealed is not an appealable order. The trial
court’s judgment is reversed, and the case is remanded for further proceedings.
I. Background
{¶ 4} The present appeal and cross-appeal stem from a dispute over ownership of
the two Ebner companies mentioned above, Ebner Properties and Ebner Development.
Prior to the events at issue, the companies were owned by two trusts, with Sylvia serving
as the sole trustee. Over the years, Sylvia’s children—Cynthia, Lisa, and Mark—worked
for the two companies in different capacities. In early 2020, Sylvia and the children
1. For clarity, we refer to the parties by their first names.
Nos. 25AP-843 & 25AP-846 3
negotiated a transaction involving her disposition of the companies. Their discussions
culminated in signed agreements in March and April 2020.
{¶ 5} The written agreements, which included “Membership Interest Purchase
Agreements,” “Assignments of Membership Interest,” and ancillary documents, were
made effective retroactively to January 1, 2020. Under their terms, Sylvia gave Cynthia
and Lisa each 25 percent of Ebner Properties and Ebner Development. Sylvia retained the
remaining 50 percent of the two companies. Mark agreed to purchase Sylvia’s 50 percent
interest for $5,500,000 and to purchase Cynthia’s and Lisa’s respective 25 percent
interests for $2,750,000 each, resulting in Mark wholly owning the two companies. The
three children signed the documents on March 24, 2020. The following day, Cynthia
called Sylvia’s attorney for the two trusts, Doug Sladoje, and advised him that she, her
sister, and her mother did not want to go forward with the transaction. Despite this
representation, Mark presented the documents to Sylvia, who signed them on April 3,
2020.
{¶ 6} After signing the contract documents, the parties continued to discuss
various proposals for Mark to purchase Ebner Properties and Ebner Development. Later
in 2020, he negotiated to purchase the companies directly from Sylvia without involving
Cynthia or Lisa. At one point, he tendered a $25,000 payment, but the record is unclear
whether it was in contemplation of a proposed direct purchase from Sylvia or in
connection with the parties’ earlier signed agreements. In any event, the proposed direct
purchase from Sylvia never occurred. Mark made no other payments for the companies,
and Cynthia and Lisa never received any money for Mark’s purchase of their respective
25 percent interests.
{¶ 7} Following the signing of the documents by Sylvia and her children in March
and April 2020, Sylvia continued to act as owner of the Ebner companies through the
trusts. At one point, she paid delinquent taxes of more than $400,000 for the companies.
Mark and Cynthia continued managing operation of the companies, and business largely
went on as it had before the document signings. In September 2022, Sylvia removed Mark
from his management position based on allegations from Cynthia that he had engaged in
improper self-dealing involving the companies’ assets. In September 2023, Sylvia
terminated Mark’s employment entirely.
Nos. 25AP-843 & 25AP-846 4
{¶ 8} In October 2023, Mark commenced the present lawsuit against Sylvia,
Cynthia, Lisa, and Sylvia’s two trusts. He amended his complaint twice, asserting breach
of contract and other claims related to the Ebner companies. Among other things, he
sought specific performance of the purchase agreements signed in March and April 2020.
Sylvia, Cynthia, and Lisa responded with counterclaims and third-party complaints. In
August 2024, Mark moved for summary judgment on his breach of contract claim. In her
capacity as trustee of the two trusts, Sylvia filed a competing summary judgment motion
on the breach of contract claim. In October 2024, the trial court entered summary
judgment for Mark on that claim, finding him to be the sole owner of the Ebner companies
based on the agreements signed in March and April 2020. It also found Mark entitled to
specific performance of the parties’ contract. The trial court later amended its decision
and dismissed counterclaims against Mark involving the validity of the signed
agreements.
{¶ 9} The trial court also resolved a dispute over whether Tuttle Partners had
been included in Mark’s purchase. Cynthia sought judgment on the pleadings on the issue,
and Mark moved for summary judgment. The trial court sustained Mark’s motion in June
2025. It held that Tuttle Partners was an asset of Ebner Development, which was one of
the two companies Mark had purchased from Sylvia, Cynthia, and Lisa.
{¶ 10} In September 2025, Mark filed a notice of settlement resolving all causes of
action between himself, Sylvia personally and as trustee of the two trusts, and all third-
party defendants. Mark, Sylvia personally and as trustee, and the third-party defendants
also filed a voluntary stipulation and joint dismissal with prejudice of all claims against
one another. On September 19, 2025, the trial court approved the settlement and
dismissal. It also struck as a nullity an indemnification claim brought by Mark against
Cynthia and Lisa. Finally, it sua sponte found that its summary judgment decision
enforcing the Membership Interest Purchase Agreements had rendered moot Mark’s
other claims against Cynthia and Lisa. Finding that all causes of action had been
adjudicated, the trial court declared its September 19, 2025, judgment entry to be an
appealable order.
{¶ 11} Cynthia and Lisa appealed from the trial court’s September 19, 2025,
judgment entry, advancing three assignments of error. Mark cross-appealed, also
advancing three assignments of error. After the appeals were consolidated, Mark sought
Nos. 25AP-843 & 25AP-846 5
dismissal based on the lack of an appealable order. On March 2, 2026, we overruled his
motion, finding that the trial court’s September 19, 2025, judgment entry had resolved all
remaining claims. As a result, both appeals are now before us for disposition.
II. Analysis of Appeal by Cynthia and Lisa
{¶ 12} Cynthia’s and Lisa’s first assignment of error states:
The Trial Court Erred as a Matter of Law in Granting Appellee’s
MSJ.
{¶ 13} Cynthia and Lisa contend the trial court erred in entering summary
judgment for Mark on his breach of contract claim for several reasons. First, they claim
there was an unmet condition precedent to the existence of an enforceable contract.
Second, they argue that Sylvia is legally blind, did not review the documents she signed,
and lacked the capacity to contract. They also question whether she signed the documents
purporting to bear her signature. Third, they maintain that Mark failed to perform under
the written agreements because he never paid on a promissory note. Fourth, they allege
mutual abandonment even if an enforceable contract existed. Fifth, they assert that laches
barred Mark’s breach of contract claim.
{¶ 14} Under Civ.R. 56(C), a movant is entitled to summary judgment upon
demonstrating (1) that there is no genuine issue as to any material fact, (2) that the
moving party is entitled to judgment as a matter of law, and (3) that reasonable minds
can come to only one conclusion, and that conclusion is adverse to the non-moving party.
Garnett v. ViaQuest Residential Servs., LLC, 2026-Ohio-3742, ¶ 11 (10th Dist.). “The
burden of showing that no genuine issue exists as to any material fact falls upon the
moving party in requesting a summary judgment.” Harless v. Willis Day Warehousing
Co., Inc., 54 Ohio St.2d 64, 66 (1978). Once the moving party has satisfied its burden of
showing that there is no genuine issue of material fact, the burden shifts to the non-
moving party to set forth specific facts showing a genuine issue for trial. Dresher v. Burt,
75 Ohio St.3d 280, 293 (1996). We review a summary judgment decision de novo. Garnett
at ¶ 11. We apply “the same standard that the trial court should have used, and we examine
all the Civ.R. 56 evidence, without deference to the trial court, to determine whether, as a
matter of law, no genuine issues exist for trial.” McAlpine v. McCloud, 2021-Ohio-2430,
¶ 13 (2d Dist.).
Nos. 25AP-843 & 25AP-846 6
{¶ 15} With the foregoing standards in mind, we turn to Cynthia’s and Lisa’s first
argument, which concerns an alleged condition precedent to the existence of an
enforceable contract. Specifically, Cynthia and Lisa contend the parties had signed the
written documents in March and April 2020 in reliance on a contemporaneous oral
agreement that no enforceable contract would exist until a family meeting occurred where
everyone reaffirmed satisfaction with the transaction and expressed a desire to go
forward. In the proceedings below, Cynthia and Lisa supported this assertion with their
own affidavits. They also relied on testimony and correspondence from attorney Sladoje
about the signed documents not taking effect until after Sylvia personally met with
Cynthia, Lisa, and Mark, which never occurred.
{¶ 16} In awarding Mark summary judgment on his breach of contract claim, the
trial court found that the signed documents were legally enforceable contracts. Regarding
the claimed oral condition precedent, the trial court noted that no such condition was
found in the agreements. It held that the extrinsic evidence upon which Cynthia and Lisa
relied was inadmissible under the parol evidence rule. It reasoned that they could not
create a genuine issue of material fact by relying on extrinsic evidence of an oral
agreement that contradicted the signed documents.
{¶ 17} Mark takes the same position on appeal, arguing that the documents signed
in March and April 2020 were enforceable contracts. He notes that the signed
Membership Interest Purchase Agreements contained an integration clause providing in
part: “This document constitutes the entire agreement between the parties and
supersedes all prior or contemporaneous discussions, representations or agreements
relating to the subject matter.” Mark argues that evidence about a post-execution family
meeting to “re-agree” was immaterial and inadmissible. He claims the integration clause
embodied the parol evidence rule and precluded reliance on a contemporaneous oral
agreement to hold the signed documents in abeyance until Sylvia and the children met
and reaffirmed their desire to proceed.
{¶ 18} Cynthia and Lisa counter that they could rely on parol evidence to establish
an oral condition precedent to the agreement’s existence and effectiveness. They assert
that extrinsic evidence generally is admissible to prove an oral condition precedent to the
existence of a contract. This is so, they argue, because an oral condition precedent to a
Nos. 25AP-843 & 25AP-846 7
contract’s existence does not modify the writing. Instead, it determines whether any
contract ever came into effect.
{¶ 19} Under the circumstances here, we conclude that the trial court properly
refused to consider extrinsic evidence of an oral agreement to hold a post-signature
meeting before the executed documents became effective. This court addressed the use of
extrinsic evidence to prove a condition precedent to a contract in Beatley v. Knisley,
2009-Ohio-2229 (10th Dist.). We recognized that “[c]ourts admit extrinsic evidence of a
condition precedent because satisfaction of such a condition must occur before a contract
comes into existence.” Id. at ¶ 16. “[P]arol evidence establishing a condition precedent
does not modify the terms of a written contract but instead determines whether the
contract ever became effective.” Id. Thus, the parol evidence rule does not bar extrinsic
evidence negating “the very existence or validity of an alleged contract.” Id.
{¶ 20} Notably, however, using parol evidence to establish a condition precedent
to the existence or effectiveness of a contract comes with a caveat. “Although the parol
evidence rule does not preclude extrinsic evidence of a condition precedent, courts do not
completely abandon the principles behind that rule when dealing with alleged oral
conditions precedent.” Beatley at ¶ 19. “To preserve the integrity of the written contract,
a party may not introduce extrinsic evidence of an oral condition precedent when the
written contract addresses the subject matter of the condition precedent and the
contractual terms are inconsistent with the condition precedent.” Id. “‘When the subject
matter of a condition precedent is dealt with in the written instrument, in any form, the
condition may not be shown by parol evidence to be different from the manner in which
it is expressed in the writing.’” Id., quoting Villa Realty Co. v. Allied Invest. Credit Co.,
1977 WL 201215, *5 (8th Dist. July 14, 1977); see also 11 Williston on Contracts, § 33:20
(4th Ed. 2026) (“[P]roof that the parties agreed by parol that the writing would not
become effective until some future day or the happening of some contingency is
admissible if it is not inconsistent with the express terms of the writing.”).
{¶ 21} “‘A certain disparity is inevitable, of course, whenever a written promise is,
by oral agreement of the parties, made conditional upon an event not expressed in the
writing. Quite obviously, though, the parol evidence [rule] does not bar proof of every
orally established condition precedent, but only of those which in a real sense contradict
the terms of the written agreement.’” Morgan Stanley High Yield Securities, Inc. v. Seven
Nos. 25AP-843 & 25AP-846 8
Circle Gaming Corp., 269 F.Supp.2d 206, 217 (S.D.N.Y. 2003), quoting Hicks v. Bush,
180 N.E.2d 425, 427 (N.Y. 1962).
{¶ 22} Here the parties’ signed documents directly addressed the subject matter of
the alleged oral condition precedent. The first paragraph of the Membership Interest
Purchase Agreement that each party signed stated: “This purchase agreement is made
effective January 1, 2020.” Elsewhere, the agreement stated that it “constitutes the legal,
valid and binding obligation” of the parties “enforceable in accordance with its terms.”
Those terms, of course, included the introductory paragraph making the agreement
effective January 1, 2020. Finally, the last paragraph of each Membership Interest
Purchase Agreement stated: “In witness whereof, Seller and Buyer have executed this
Agreement to be effective on the date set forth above.” A companion document, the
Assignment of Membership Interest, likewise stated: “In witness whereof, Assignor and
Assignee have executed this instrument to be effective on January 1, 2020.”
{¶ 23} On appeal, Cynthia and Lisa seek to invoke a contemporaneous oral
agreement that the signed documents in fact “would not be effective or enforceable” until
a later family meeting where everyone agreed to “move forward.” Although no such
meeting occurred, the executed documents were “binding,” “enforceable,” and “effective”
on their face as of January 1, 2020. The claimed oral condition precedent undeniably
conflicted with the written agreements. Therefore, the trial court correctly found that
Cynthia and Lisa could not rely on it to avoid summary judgment on Mark’s breach of
contract claim.
{¶ 24} Cynthia and Lisa next dispute Sylvia’s capacity to sign and understand the
documents at issue. They stress that elderly Sylvia signed the documents without the
assistance of counsel. They contend that she could not review and did not understand
them. In response, Mark asserts that Sylvia read the documents using a magnifying glass.
He notes that the record contains a video of her signing the documents. He also points
out that she proclaimed “mazel tov” upon signing, suggesting that she knew what she was
doing.
{¶ 25} Upon review, we conclude that the trial court properly rejected the
challenge to Sylvia’s capacity to contract and her understanding of the documents. Under
R.C. 3109.01, adults “who are under no legal disability” can contract. The record contains
Nos. 25AP-843 & 25AP-846 9
no evidence that Sylvia was under a legal disability, that she had been appointed a
guardian, or that she had been declared incompetent.
{¶ 26} Perhaps more significantly, the settlement agreement and joint stipulation
of dismissal filed by Mark and Sylvia effectively foreclosed Cynthia’s and Lisa’s current
challenge to Sylvia’s capacity and understanding. The trial court accepted the settlement
and dismissal in which Sylvia acknowledged that her signed Membership Interest
Purchase Agreement and the companion documents were “valid and enforceable.” Given
that Sylvia is not challenging her capacity to contract or claiming that she did not
understand the agreements, Cynthia and Lisa cannot prevail on those arguments.
{¶ 27} Absent any evidence that Sylvia was under a legal disability or that she had
been declared incompetent, the person best positioned to know whether Sylvia
understood what she was doing was Sylvia. We note too that disaffirming or challenging
a contract based on a lack of capacity is a personal right that typically may not be asserted
by a third party other than a legal guardian. See, e.g., 5 Williston on Contracts, § 10:5;
Lemon v. Beeman, 45 Ohio St. 505, 512 (1888). For the foregoing reasons, we see no
genuine issue of material fact.
{¶ 28} Cynthia and Lisa also claim laches barred Mark’s breach of contract claim.
Laches involves “an omission to assert a right for an unreasonable and unexplained length
of time under circumstances prejudicial to the adverse party.” State ex rel. Allied Sys.
Holdings, Inc., v. Indus. Comm., 2012-Ohio-5855, ¶ 13 (10th Dist.). “To succeed in
asserting the doctrine of laches, the proponent must establish: (1) an unreasonable delay
or lapse of time in asserting a right; (2) the absence of an excuse for such delay;
(3) knowledge, actual or constructive, of the injury or wrong; and (4) prejudice to the
party asserting laches.” Id. Without more, delay in asserting a right is insufficient.
“Instead, the proponent must demonstrate that it has been materially prejudiced by the
unreasonable and unexplained delay of the entity asserting the claim.” Id.
{¶ 29} Material prejudice in the context of laches typically involves some
detrimental change of position or disadvantage causally related to the delay. See, e.g.,
Jacobs v. Hawbaker, 1986 WL 7487, at *6 (10th Dist. June 30, 1986) (noting that “[d]elay
which results in a material disadvantage to the adverse party . . . is the essence of laches”
and finding the doctrine inapplicable absent evidence that “appellant changed his
position to his detriment and prejudice as a result of the conduct of appellee over the lapse
Nos. 25AP-843 & 25AP-846 10
of time”); State ex rel. Pennington v. Bivens, 2021-Ohio-3134, ¶ 29 (finding laches
inapplicable where respondents provided no “concrete details as to how their preparation
and defense of this case [had] been materially affected”). The inconvenience of having to
meet an existing obligation later does not constitute material prejudice. Smith v. Smith,
168 Ohio St. 447, 457 (1959), superseded by statute on other grounds.
{¶ 30} Here Cynthia and Lisa contend they were prejudiced in two ways due to
unreasonable delay by Mark in claiming a breach of contract. First, they incurred
additional legal expenses while negotiating alternative transactions with him between
April 2020 and the end of that year. Second, he failed to pay them as required under his
promissory note. In our view, neither argument demonstrates a genuine issue of material
fact regarding laches.
{¶ 31} Immediately after executing the Membership Interest Purchase
Agreements and related documents in March and April 2020, Cynthia and Lisa orally
repudiated them. During a hearing, Cynthia testified as follows about what occurred after
she and Lisa signed the documents:
Q. Did you—what happened the day after you signed the
documents?
A. The day after I got a phone call from my sister Lisa and she
said, you know, this was—we shouldn’t have done this and she
doesn’t want to do this, go forward with this. I'm, like, okay.
And so I called mother, I said, is this something that you would
like? And she goes, I have no interest in selling, Mark's driving
me crazy. I said, Mark's driving me crazy, Mark's driving Lisa
crazy. And she goes, just forget the whole thing, I'm not doing
it. I go, okay. So she goes, call Doug [Sladoje]. So I called Doug
and I said, listen, we're done, we're not doing any of this, any
kind of deal is off. And that was it.
{¶ 32} The record also contains affidavits from Cynthia and Lisa in which they
recalled characterizing the signed “deal” as “dead” almost immediately after executing it.
They recalled telling attorney Sladoje that “the deal was off.” In his own affidavit, Sladoje
recalled being “notified that Cynthia did not approve the transaction and withdrew her
consent.” In his own deposition, Mark testified that he was made aware of Cynthia’s
rejection of the transaction. He stated that he nevertheless made a $25,000 payment as a
deposit on his obligation under the promissory note. When asked why he did not make
any additional payments, he cited Cynthia’s and Lisa’s lack of “cooperation” and their
Nos. 25AP-843 & 25AP-846 11
acknowledged statements about “not wanting to follow through with what they signed.”
Mark explained that he kept talking to them informally, attempting to keep “lines of
communication open.” When he realized they were having what he characterized as
“buyer’s remorse,” he began “trading ideas” with them. Mark stated that he did not file a
breach of contract lawsuit shortly after the agreements were signed because he wanted to
“work this out” and keep “peace in the family.”
{¶ 33} For purposes of laches, Mark’s initial delay in failing to sue for breach of
contract was reasonable as a matter of law. In our analysis above, we determined that the
parties had executed valid Membership Interest Purchase Agreements, along with
ancillary documents, in March and April 2020. Immediately thereafter, Cynthia and Lisa
admittedly repudiated those agreements, declaring the deal “dead” and refusing to follow
through. Regardless of his subjective motivation for briefly delaying, no rational trier of
fact could find that Mark acted unreasonably in trying to discuss the issue with his sisters
for several months rather than immediately filing a lawsuit. In reaching this conclusion,
we note that the general statute of limitations for breach of a written contract was eight
years when Cynthia and Lisa repudiated their agreements. See former R.C. 2305.06
(providing an eight-year statute of limitations before a 2021 amendment reduced it to six
years). A laches defense may be raised before expiration of the statute of limitations, of
course, but a delay of mere months after Mark’s cause of action accrued was reasonable
as a matter of law. Therefore, Cynthia and Lisa cannot establish material prejudice for
purposes of laches based on incurring additional expenses while negotiating with him
between April 2020 and the end of that year. Material prejudice in the context of laches
requires some detriment causally related to the other party’s unreasonable delay in
asserting a right.
{¶ 34} The only other material prejudice alleged by Cynthia and Lisa involves
Mark’s failure to pay them for their interest in the Ebner companies as required by his
promissory note. We are unpersuaded, however, that mere non-payment under the terms
of the note resulted in material prejudice for purposes of a laches defense. We see no
detrimental change of position or material disadvantage to Cynthia and Lisa resulting
from Mark’s non-payment. In a sense, of course, they have been harmed by not having
any of the money that was owed to them. But if Mark ultimately proves a breach of
contract claim and obtains specific performance, the terms of the promissory note
Nos. 25AP-843 & 25AP-846 12
obligate him to pay Cynthia and Lisa the full amount owed with interest. The mere
inconvenience of the parties consummating their transaction later than they otherwise
might have does not support a laches defense. Compare Thirty-Four Corp. v. Sixty-Seven
Corp., 15 Ohio St. 3d 350, 353 (1984). (“We do not believe that the accumulation of
interest and the absence of a timely demand for payment constitute material prejudice.
The terms of the debt were established at the time of execution, and any delay in
commencing a foreclosure action on the mortgage would not affect those terms.”).
{¶ 35} Cynthia and Lisa also argue that Mark was not entitled to summary
judgment on his breach of contract claim because he failed to perform his own
obligations. Specifically, they cite his failure to pay them as required under the promissory
notes accompanying the Membership Interest Purchase Agreements. They additionally
contend summary judgment was improper because the parties mutually abandoned their
agreements after signing, as evidenced by Mark’s failure to pay and numerous other
actions over the next few years.
{¶ 36} Upon review, we are unpersuaded that Mark’s failure to pay, alone,
precluded summary judgment for breach of contract. It is true that a plaintiff seeking
summary judgment generally must prove the existence and terms of a contract, the
plaintiff’s performance, the defendant's breach, and damages. Lewis & Michael Moving
& Storage, Inc. v. Stofcheck Ambulance Serv., Inc., 2006-Ohio-3810, ¶ 15 (10th Dist.). A
defendant’s material breach of a contract, however, may suspend a plaintiff’s obligation
to perform. Id. at ¶ 22, quoting Farnsworth, Contracts, § 8.18, at 525 (3rd Ed. 2004).
{¶ 37} Anticipatory repudiation of a contract can constitute a material breach.
Haman Ents., Inc. v. Sharper Impressions Painting Co., 2015-Ohio-4967, ¶ 24 (10th
Dist.). “‘An anticipatory breach of contract by a promisor is a repudiation of the
promisor’s contractual duty before the time fixed for performance has arrived.’” Metz v.
Am. Elec. Power Co., Inc., 2007-Ohio-3520, ¶ 35 (10th Dist.), quoting McDonald v.
Bedford Datsun, 59 Ohio App.3d 38, 40 (8th Dist. 1989). “To prevail on a claim of
anticipatory breach of contract, a plaintiff must establish that there was a contract
containing some duty of performance not yet due and, by word or deed, the defendant
refused future performance, causing damage to the plaintiff.” Haman Ents. at ¶ 23.
“Anticipatory breach requires ‘an overt communication of an intention or an action which
renders performance impossible or demonstrates a clear determination not to continue
Nos. 25AP-843 & 25AP-846 13
with performance.’” JDS So Cal, Ltd. v. Ohio Dept. of Natural Resources, 2018-Ohio-
1159, ¶ 50 (10th Dist.), quoting Willson v. Bd. of Trustees, 1991 WL 274862, *15 (10th
Dist. Dec. 24, 1991).
{¶ 38} “Under the doctrine of anticipatory repudiation, ‘if one party to a contract
repudiates his duties thereunder prior to the time designated for performance and before
he has received all of the consideration due him thereunder, such repudiation entitles the
nonrepudiating party to claim damages for total breach.’” Gatling Ohio, LLC v. Allegheny
Energy Supply Co., LLC, 2018-Ohio-3636, ¶ 42 (10th Dist.), quoting Long Island RR. Co.
v. Northville Industries Corp., 41 N.Y.2d 455, 463 (1977). Moreover, if “one party to a
contract repudiates it or notifies the other party before a default that it will not perform,
the nonrepudiating party may enforce the contract without first performing or offering to
perform those provisions of the contract requiring performance in favor of the
repudiating party. The repudiating party, on the other hand, cannot demand performance
from the nonrepudiating party . . . .” 13 Williston on Contracts, § 39:37. “The rationale
behind this rule, that a repudiation by one party excuses the other party from its duty to
perform, has been said to be the prevention of economic waste; following a clear
repudiation, the other party should not be required to perform the formal, economically
wasteful, useless act of performing further. . . . To further comply with the contract
requirements, when the other party has repudiated, would be a useless act, and the law
does not require the doing of a useless act.” Id.; see also Daniel E. Terreri & Sons, Inc. v.
Mahoning Cty. Bd. of Commrs., 2003-Ohio-1227, ¶ 48 (7th Dist.) (quoting Williston on
Contracts for the proposition that anticipatory repudiation suspends the other party’s
obligation to perform).
{¶ 39} Having determined that Cynthia and Lisa cannot avoid enforcement of their
written agreements by relying on an oral condition precedent, it follows that their post-
signing rejection of the deal by declaring it “dead,” calling it “off,” and withdrawing their
consent constituted an anticipatory repudiation as a matter of law. We see no other
possible characterization. Therefore, before suing for breach, Mark had no obligation to
pay on the promissory notes, which were incorporated by reference into the signed
Membership Interest Purchase Agreements that Cynthia and Lisa had repudiated.
{¶ 40} Finally, we turn to Cynthia’s and Lisa’s abandonment argument. They
contend the parties’ conduct between March and April 2020, when they signed the
Nos. 25AP-843 & 25AP-846 14
contract documents, and October 2023, when Mark filed his lawsuit, demonstrated
mutual abandonment and dissolution of the agreement. In support, they cite Mark’s
ongoing negotiation of new contract terms, his October 2020 written proposal to
purchase the Ebner companies directly from Sylvia, his lack of payments on the
promissory notes, his failure to hold himself out as owner of the Ebner companies, and
Sylvia’s continuing to act as the sole owner of the companies.
{¶ 41} In response, Mark asserts that the parties’ unsuccessful additional
negotiations did not constitute abandonment of their written agreements. He notes that
abandonment, or rescission, must be mutual rather than unilateral. For its part, the trial
court rejected the mutual abandonment argument by finding that the parol evidence rule
“remove[d] from consideration” whether the parties’ post-signing negotiations “were
tantamount to cancellation of the contract.” It also reasoned that efforts to renegotiate
the transaction “did not ipso facto result in the prior agreements becoming void.”
{¶ 42} Upon review, we find genuine issues of material fact as to whether the
parties mutually abandoned their written agreements as evidenced by their post-signing
words and actions. Mutual abandonment is also known as an agreement for rescission.
See Restatement of the Law 2d, Contracts, § 283 (1981); Fornshell v. Tiller, 1994 WL
12301, *2 (12th Dist. Jan. 18, 1994) (recognizing that “[r]escission includes abandonment
or other change by mutual consent”). “The primary purpose of rescission is to restore the
status quo and return the parties to their respective positions had the contract not been
formed.” Haman Ents., 2015-Ohio-4967, at ¶ 19 (10th Dist.). “Rescission may occur ‘even
though one or both parties have partly performed their duties or one or both have a claim
for damages for partial breach,’ and a party’s assent to rescission may be implied from the
party’s conduct.” Id., quoting Restatement, § 283; see also Coburn v. Auto-Owners Ins.
Co., 2010-Ohio-3327, ¶ 22 (10th Dist.) (“A contract will be treated as abandoned when
one party acquiesces in the acts of the other party that are inconsistent with the existence
of the contract. Mutual abandonment thus can be inferred from the conduct of the parties
and the surrounding circumstances; it need not be express.”). “A contract may be
terminated by the mutual consent and consideration of the parties at any time.” Reiter
Dairy, Inc. v. Ohio Dept. of Health, 2002-Ohio-2402, ¶ 15 (10th Dist.). A mutual oral
agreement to rescind a written contract and relieve all parties from their obligations may
constitute sufficient consideration. Id. When mutual abandonment is established,
Nos. 25AP-843 & 25AP-846 15
“neither party may sue for breach of the contract, nor compel specific performance.”
Hunter v. BPS Guard Servs., Inc., 100 Ohio App. 3d 532, 541 (10th Dist. 1995). Mutual
abandonment involves a question of fact for the trier of fact to resolve. Haman Ents. at
¶ 19.
{¶ 43} The Restatement (Second) of Contracts provides a pertinent explanation of
mutual abandonment or rescission by agreement:
Sometimes the parties to a contract that is at least partly
executory on each side make an agreement under which each
party agrees to discharge all of the other party’s duties of
performance. Such an agreement is called an “agreement of
rescission” in this Restatement. Consideration is provided by
each party’s discharge of the duties of the other. This is so even
though one or both parties have partly performed their duties
or one or both have a claim for damages for partial breach. . . .
The agreement need not be expressed in words. Other conduct
may show an intent by both parties to abandon their contract.
If one party, even wrongfully, expresses a wish or an intention
to cease performance and the other party fails to object,
circumstances may justify the inference that there has been an
agreement of rescission. Sometimes mere inaction on both
sides, such as the failure to take any steps looking toward
performance or enforcement, may indicate an intent to
abandon the contract.
Restatement, § 283.
{¶ 44} When construed most strongly in favor of Cynthia and Lisa, the record
contains ample evidence from which a trier of fact reasonably might conclude that the
parties mutually abandoned their Membership Interest Purchase Agreements and related
documents. Even if Cynthia and Lisa wrongfully expressed an intention not to perform,
thereby providing Mark with a breach of contract claim, the parties’ failure to take any
steps toward performance or enforcement supports an inference that they mutually
agreed to rescind their agreement. In fact, their mutual conduct for more than three years
after signing the Membership Interest Purchase Agreements was at odds with the
continued existence of a binding agreement.
{¶ 45} After Cynthia and Lisa repudiated their agreements, the parties
immediately continued negotiating the sale of the Ebner companies. In October 2020,
Mark proposed purchasing the companies directly from Sylvia. He executed documents
to carry out that transaction and proffered a $25,000 down payment. Although Mark
Nos. 25AP-843 & 25AP-846 16
claims this payment was made in connection with his earlier deal involving Sylvia,
Cynthia, and Lisa, the Membership Interest Purchase Agreements and related documents
did not require an upfront $25,000 payment, whereas a promissory noted drafted as part
of Mark’s proposed October 2020 transaction with his mother did reference an initial
$25,000 payment. A trier of fact reasonably might question why Mark was trying to buy
the Ebner companies directly from Sylvia if he already had purchased them from Sylvia,
Cynthia, and Lisa collectively. Compare Honda v. Reed, 156 Cal.App.2d 536, 539 (1958)
(“Abandonment of a contract