In the case of Hope Academy v. White Hat Mgt., L.L.C., 2022-Ohio-178, the Tenth District Court of Appeals held that the trial court erred in finding that the Ohio Department of Education (“ODE”) was not a party in interest in ten Cleveland community schools (“Schools”) litigation against numerous businesses and the ODE.
Here, ODE filed counterclaims against the schools for the return of federal grand funds that ODE alleged were in violation of the grant terms and for the return of other federal grant funds and state funds that were in violation of the school’s fiduciary duties. The trial court found that ODE was not a party in interest and therefore lacked standing.
The Court of Appeals reasoned that ODE was a party in interest since the assurances made by the school in exchanges for the funds constituted a contract between the school and ODE.
To read this case, click here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.