In the case of Toronto City Schools Bd. of Edn. v. Am. Energy Utica, L.L.C., 7th Dist. Jefferson No. 15 CV 245, 2020-Ohio-586, an Ohio appellate court held one party’s failure to perform on a contract does not give rise to automatic entitlement to damages.
In this case, a board of education and other landowners entered into a contract with an oil and gas lease company. After the oil and gas lease company failed to perform on the contract by providing notice of defective titles, the board of education and other landowners sued for damages. The lower court held that the board of education and other landowners were entitled to automatic damages.
The Ohio appellate court held that a breach of contract does not lead to automatic damages, but instead to an analysis of what actual damages there were. Thus, the Ohio appellate court remanded the case for the lower court to determine the actual damages, if any, suffered by the board of education and other landowners from the breach.
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 like the 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.