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6/23/2010
Rendigs attorneys, Michael Foley and Vaseem Hadi, received a favorable decision for a local Board of Education and their officials against a breach of contract and fraud claim. The Plaintiff was a vendor of office equipment and the parties had a lease for several years. When the Board of Education was declared to be in fiscal emergency, the parties’ contract was voided and the equipment returned. The vendors sued to recover remainder of amounts owed for the duration of the lease. In moving for summary judgment, Rendigs attorneys argued that under Ohio law, no contract ever existed as the Board of Education did not formally ratify the lease. This was not concealed from the vendor and the law states it is the vendor’s burden to ensure compliance with all statutory requirements.
The court agreed and dismissed the contract claims. The vendor made an alternative fraud argument which the court rejected since there was no evidence any of the defendants knowingly made false statements. The court held that the vendor’s fraud argument was inconsistent with the vendor’s burden under Ohio law to ensure a contract with a board of education complies with all statutory requirements. Further, the vendor was paid in full before the contract was voided and then the equipment was immediately returned. Therefore, the vendor had no damages. All claims against the Board and the two officials were dismissed on summary judgment.