[Cite as Dispatch Printing Co. v. Recovery Ltd. Partnership, 2015-Ohio-381.]

IN THE COURT OF APPEALS OF OHIO 

TENTH APPELLATE DISTRICT 

The Dispatch Printing Co. et al., : 

 Plaintiffs-Appellees, : 

 No. 14AP-473 

v. : (C.P.C. No. 05CV-4220) 

Recovery Limited Partnership et al., : (REGULAR CALENDAR) 

 Defendants-Appellees, : 

(California Gold Marketing Group, LLC, : 

 Appellant). : 

The Dispatch Printing Co. et al., : 

 Plaintiffs-Appellees, : 

 No. 14AP-474 

v. : (C.P.C. No. 06CV-4469)

Gilman D. Kirk et al., : (REGULAR CALENDAR) 

 Defendants-Appellees, : 

(California Gold Marketing Group, LLC, : 

 Appellant). : 

Michael H. Williamson et al., : 

 Plaintiffs-Appellees, : 

 No. 14AP-475 

v. : (C.P.C. No. 05CV-11795)

Recovery Limited Partnership et al., : (REGULAR CALENDAR) 

 Defendants-Appellees, : 

(California Gold Marketing Group, LLC, : 

 Appellant). : 
Nos. 14AP-473, 14AP-474 & 14AP-475 2 

 

 

D E C I S I O N 

Rendered on February 3, 2015 

 

Kushner & Hamed Co., LPA, Philip S. Kushner, Michael R. 

Hamed and Christian J. Grostic, for appellee receiver Ira 

Owen Kane. 

James E. Arnold & Assocs., LPA, James E. Arnold, 

Gerhardt A. Gosnell II, and Damion M. Clifford; Rutan & 

Tucker, LLP, Richard K. Howell and Caroline R. Djang, for 

appellant. 

 

APPEALS from the Franklin County Court of Common Pleas 

CONNOR, P.J. 

{¶ 1} Appellant, California Gold Marketing Group, LLC ("California Gold"), 

appeals from a judgment of the Franklin County Court of Common Pleas sustaining the 

motion of appellee, Ira O. Kane, in his capacity as the receiver for Columbus Exploration, 

LLC ("Columbus Exploration") and Recovery Limited Partnership ("RLP"), to repudiate 

the exclusive marketing contract entered into between RLP and California Gold. 

California Gold assigns the following sole assignment of error for our review:

The Court of Common Pleas, Franklin County Ohio (the "Trial 

Court") erred in sustaining the Appellee-Receiver's Motion to 

Repudiate Contract with Appellant California Gold Marketing 

Group, LLC. 

{¶ 2} Because the trial court abused its discretion in granting the receiver's 

motion to repudiate, we reverse.

I. FACTS AND PROCEDURAL HISTORY 

{¶ 3} These consolidated cases concern two Ohio businesses, Columbus 

Exploration and RLP, which are currently in receivership. The events which brought these 

companies to their current state of financial crisis began in 1977, when Thomas G. 

Thompson, a researcher at the Battelle Memorial Institute in Columbus, Ohio, began 
Nos. 14AP-473, 14AP-474 & 14AP-475 3 

researching deep ocean shipwrecks and the methods and technologies for locating them. 

Thompson became interested in attempting to recover the S.S. Central America, a United 

States mail steam-ship that sank off the coast of South Carolina on September 12, 1857 

during a hurricane. The S.S. Central America was carrying several tons of gold from the 

California gold rush when it sank.

{¶ 4} In the mid-1980s, Thompson organized RLP to fund the search-andrecovery project. Thompson sought, and obtained, investments for the recovery project 

from several central Ohio businesses, including the Dispatch Printing Co. From 1986 to 

1992, Thompson, along with a team, found and recovered portions of the S.S. Central 

America. Thompson and his team were able to recover more than a ton of gold and silver, 

as well as numerous artifacts from the shipwreck. Although this initial recovery was 

substantial, another ton of gold and silver still remained on the ocean floor. In 1987, 

Thompson organized Columbus-America Discovery Group, Inc. ("CADG") to act as RLP's 

"agent with respect to the management of the Partnership's business, the conduct of 

recovery operations, and legal proceedings and press relations incidental thereto." 

(Motion to Substitute, exhibit A, Agency Agreement.)

{¶ 5} Upon discovering the S.S. Central America, Thompson initiated an 

admiralty action in the United States District Court for the Eastern District of Virginia to 

establish ownership of the shipwreck and all of its contents. The federal court held that 

CADG, as RLP's agent, owned 92.5 percent of the salvage rights to the S.S. Central 

America. The federal court awarded 7.5 percent of the salvage rights to several insurance 

companies who established that their predecessors had insured certain portions of the 

gold on board the S.S. Central America when it sank. 

{¶ 6} Although there are several aspects to the litigation surrounding the 

receivership entities, we will focus on the facts which are most relevant to the instant 

appeal. Particularly important to the instant case are two contracts entered into by CADG 

and RLP in the late 1990s. In 1998, CADG entered into a contract with California Gold 

(the "1998 Agreement"), whereby the parties defined the terms and conditions under 

which California Gold would purchase the portion of the treasure which CADG had 

already recovered from the S.S. Central America (the "Up treasure"). Section 1 of the 1998 

Agreement noted that Christie's International PLC held a lien against the Up treasure, 
Nos. 14AP-473, 14AP-474 & 14AP-475 4 

that California Gold had offered to pay $36 million for the Up treasure, and that 

California Gold would use the offer money to obtain "a release of Christie's entire right, 

title, claim and interest, of any kind, in the Recovered Gold Collectibles [i.e. the Up 

treasure]." (1998 Agreement, Section 1(b).) 

{¶ 7} In Section 2 of the 1998 Agreement, CADG granted to California Gold "the 

exclusive right to market any gold and silver coins and numismatic items (including, 

without limitation, bars) [CADG] * * * recover[s] and own[s], or ha[s] the legal right to 

market, from the SS Central America at any time following the date of this Agreement 

(the 'Other Gold Collectibles')." (1998 Agreement, Section 2, referred to herein as the 

"marketing contract".) "Other Gold Collectibles" thus described the other ton of treasure 

which remained on the ocean floor at the time the parties entered into the 1998 

Agreement (the "Down treasure"). Section 2 of the 1998 Agreement also set forth the 

commission California Gold would receive for each item of Down treasure it successfully 

marketed and sold. The agreement stated that, if California Gold was successful in 

purchasing the Up treasure, its commission for the sale of an item of the Down treasure 

would be five percent of the bullion/melt value of the item sold plus 20 percent of the 

amount by which the sale price exceeded the bullion/melt value. The 1998 Agreement was 

later amended to add RLP as a party to the agreement.

{¶ 8} In 1999, CADG, RLP, and California Gold entered into an Asset Purchase 

Agreement, whereby California Gold purchased the Up treasure from CADG and RLP (the 

"1999 Agreement"). In the recitals section of the 1999 Agreement the parties stated that 

the 1998 Agreement had expired, that the 1999 Agreement concerned "only" the Up 

treasure "and supercede[d] all prior agreements concerning the" Up treasure, and that the 

provisions of the 1998 Agreement "which concern[ed] solely the [Down treasure]" would 

"continue to survive" and would be "made a part of" the 1999 Agreement. (Recital B, 1999 

Agreement.) The remainder of the 1999 Agreement detailed the terms and conditions by 

which California Gold would purchase the Up treasure. 

{¶ 9} Following the 1999 Agreement, California Gold exhibited and marketed the 

Up treasure for sale. It conducted an impressive marketing campaign which included, 

among other promotional endeavors, producing a documentary regarding the shipwreck 

which aired on the History Channel, publishing a book titled A California Gold Rush 
Nos. 14AP-473, 14AP-474 & 14AP-475 5 

History, constructing a 40-foot replica of the S.S. Central America which toured the 

United States, and creating a museum exhibit titled Gold! Gold! which toured museums 

world wide and featured the 80 pound Eureka Bar from the S.S. Central America, the 

largest and heaviest gold numismatic item known to exist. As a result of its extensive 

marketing campaign, California Gold achieved "exponential sale price[s] over the melt 

value of [the] gold." (Memo in Opposition to Motion to Repudiate, 13.) 

{¶ 10} In 2005, the Dispatch Printing Co. and Donald C. Fanta filed separate 

actions against the directors of Columbus Exploration and the partners of RLP. The 

plaintiffs noted that Thompson had organized Columbus Exploration in the late 1990s to 

take over from RLP the recovery and marketing of the treasure. RLP's partners were 

granted ownership interests in Columbus Exploration based on their respective 

ownership interests in RLP. The complaints alleged that the companies had not provided 

their investors with any return on their investments, and further alleged that the 

businesses were refusing to provide the investors with any financial information 

regarding the businesses.

{¶ 11} The plaintiffs eventually filed a motion asking the court to appoint a 

receiver for Columbus Exploration and RLP. On June 14, 2013, the court granted the 

motion and issued an entry appointing a receiver for Columbus Exploration and RLP. In 

the entry, the court found the appointment of a receiver necessary, as RLP and 

Columbus Exploration were in a state "of great disarray and insolvency, coupled with a 

lack of functional management." (Entry Appointing Receiver, 2.) The court appointed 

Mr. Kane to serve as receiver for the two entities. The court stated that the receiver's 

powers would be derived from R.C. 2735.04 generally, as well as Loc.R. 66 of the 

Franklin County Court of Common Pleas, and Ohio common law. 

{¶ 12} On June 20, 2013, the receiver accepted his appointment. On 

September 30, 2013, the receiver applied to the court for approval of the receiver's 

initial receivership plan and report, which the court ultimately approved. In the plan, 

the receiver stated that the ultimate goal of the receivership was "the recovery, 

conservation and successful monetization of the Down Treasure." (Receiver's Initial 

Receivership Plan and Report, 2.) The receiver also noted in the plan that "[e]xecutory 

contractual obligations will be reviewed by the Receiver to determine whether such 
Nos. 14AP-473, 14AP-474 & 14AP-475 6 

contractual obligations are unprofitable or undesirable and, based on that 

determination, to affirm or repudiate such agreements accordingly, subject to the 

approval of the Court." (Receiver's Initial Receivership Plan and Report, 11.) 

{¶ 13} On November 20, 2013, the receiver sent a letter to California Gold's 

president, Dwight Manley, asking California Gold to submit a proof of any claim it may 

have against the receivership entities. On January 3, 2014, California Gold responded to 

the receiver's request, and asserted that it had a claim based on its "rights to market the 

down treasure." (Motion to Repudiate, exhibit A.) 

{¶ 14} On March 14, 2014, the receiver filed a motion to repudiate the marketing 

contract with California Gold. The receiver asserted that the marketing contract was an 

executory contract which was undesirable for the receivership entities, as the marketing 

contract gave the receivership entities "no control whatsoever with regard to the 

marketing of the Down Treasure." (Receiver's Motion to Repudiate, 6.) Accordingly, the 

receiver argued that the marketing contract was not in the best interests of the 

receivership entities, and should therefore be rejected. 

{¶ 15} On April 15, 2014, California Gold filed a memorandum in opposition to 

the receiver's motion to repudiate. California Gold asserted that the marketing contract 

was not executory, as California Gold had already substantially performed its 

obligations under the marketing contract. California Gold asserted that its previous 

marketing campaign served "to enhance the prestige and value of both the Up and Down 

Treasure." (Memo in Opposition, 8.) California Gold also noted that the receiver had 

failed to present evidence indicating that rejection of the marketing contract would 

benefit the receivership estate. California Gold asserted that, as repudiation of the 

marketing contract would give California Gold a claim for breach of contract, the 

damages which would result from such a claim could potentially "exceed the amount 

realized by the Receiver's monetization of the remaining Receivership Estate assets, 

especially after paying professionals and commissions." (Memo in Opposition, 3.) 

{¶ 16} California Gold asserted that, in light of its previous expenditures and its 

experience in marketing the treasure, the receiver's desire to replace California Gold 

with another marketing agent was contrary to the receiver's duty to maximize the value 

of the estate. California Gold attached several affidavits to its memorandum in 
Nos. 14AP-473, 14AP-474 & 14AP-475 7 

opposition from individuals in the numismatic community, all praising the job 

California Gold did in marketing and selling the Up treasure.1 California Gold also noted 

that, as it was simply the exclusive marketing agent for the Down treasure, the receiver, 

as the owner of the Down treasure, retained full "control over the Down Treasure," 

including control over "when to sell, whether to sell or not to sell, at what price to sell, 

and whether to accept or reject offers for sale of the Down Treasure." (Memo in 

Opposition, 5.) 

{¶ 17} On April 24, 2014, the receiver filed a memorandum in support of his 

motion to repudiate the marketing contract. The receiver quoted from Recital C of the 

1999 Asset Purchase Agreement, which stated that California Gold would market the 

treasure "in a diligent, professional and dignified manner consist [sic] with the scientific 

and historical significance of the Central America project," but further stated that 

California Gold would have the "power to manage the marketing of the Treasure in its 

sole and absolute discretion and without any liability or obligation to the Seller or any 

other person." (Recital C of the 1999 Agreement.) As the receiver believed Recital C 

applied to the marketing of the Down treasure, the receiver asserted that the marketing 

contract was undesirable because California Gold would be immune from liability for its 

actions under the marketing contract. The receiver also asserted that, as Recital B of the 

1999 Agreement incorporated only the provisions of the 1998 Agreement which 

concerned solely the Down treasure, the fiduciary obligations and indemnification 

provisions contained in the 1998 Agreement were not incorporated by reference into the 

1999 Agreement. (See 1998 Agreement, Sections 3 and 4.) 

{¶ 18} The court informed the parties that it would accept additional briefing on 

the repudiation issue. Accordingly, on May 12, 2014, California Gold filed a 

supplemental memorandum in opposition to the receiver's motion to repudiate. 

 

1 For instance, Adam Crum, the vice president of numismatics at Monaco Rare Coins, an entity which 

purchased a large portion of the Up treasure, averred that he had witnessed California Gold's "sensational 

and extremely well-received marketing efforts" regarding the Up treasure, and stated that he had 

"profound concerns if the marketing of the remaining Treasure is turned over to another entity other than 

[California Gold] and Dwight Manley." (Crum Affidavit, ¶ 10-11.) Similarly, David Hall, an expert in the 

field of numismatics and the founder of Professional Coin Grading Service, averred that the California 

Gold's marketing of the Up treasure was "the greatest marketing job that I have ever seen in the history of 

numismatics," and stated that replacing California Gold with another marketing agent "would be a costly 

mistake." (Hall Affidavit, ¶ 13, 15.) 
Nos. 14AP-473, 14AP-474 & 14AP-475 8 

California Gold asserted that the receiver's reliance on the recitals of the 1999 

Agreement was misplaced, as Recital B of the 1999 Agreement stated that the 1999 

Agreement "concern[ed] only the [Up treasure]." (Recital B of the 1999 Agreement.) 

Accordingly, California Gold asserted that the limitation of liability in Recital C of the 

1999 Agreement applied only to California Gold's marketing of the Up treasure. 

California Gold noted that the liability disclaimer was placed in Recital C because a 

purchaser of assets "would not typically have any liability or obligation to the seller of 

such assets with respect to the marketing of those assets because the seller no longer 

owns the assets." (Supplemental Memo in Opposition, 6.) California Gold supported its 

supplemental memorandum with the affidavit of Dwight Manley. 

{¶ 19} On May 15, 2014, the receiver filed a response to California Gold's 

supplemental memorandum. The receiver asserted that Recital A of the 1999 Agreement 

defined "Treasure" to mean "the gold and silver 'that CADG has recovered, and intends 

to recover, from the SS Central America.' " (Receiver's response, 3.) Accordingly, the 

receiver asserted that the limitation of liability in Recital C applied to both the Up and 

Down portions of the treasure. 

{¶ 20} On May 19, 2014, the trial court issued a Decision and Entry sustaining the 

receiver's motion to repudiate the marketing contract with California Gold. The court 

noted that the motion to repudiate depended on two questions: (1) whether the contract 

was executory, and (2) whether, in the receiver's opinion, it would be unprofitable or 

undesirable to adopt the contract. The court found the marketing contract to be "wholly 

executory," as it was "a contract by which a party agrees to do * * * something in the 

future." (Decision, 3.) The court then found, without analysis, that Recital C applied to 

the Down treasure. The court noted that the phrase sole and absolute discretion in 

Recital C, was "a very clear and unambiguous statement of authority, and, therefore, this 

Court has to conclude that the Receiver would have no recourse in the event that 

[California Gold] did not act in the best interests of the Receiver." (Emphasis sic.) 

(Decision, 4.) The court stated that Recital C effectively removed from the receiver "the 

ability to use his best judgment as to what shall be done with any recovered Down 

Treasure." (Decision, 4.) Accordingly, the court concluded that the contract was 

executory and that the receiver was within his rights to repudiate the contract.
Nos. 14AP-473, 14AP-474 & 14AP-475 9 

{¶ 21} After sustaining the motion, the court stated that it felt compelled to 

"make a few comments." (Decision, 5.) The court initially stated that the law was "clear 

that where a receiver repudiates an executory contract, the affected party may file * * * a 

claim with the receiver." (Decision, 5.) The court observed that "[t]hat claim, in this 

case, has the potential to be very large indeed." (Decision, 5.) The court also noted that, 

based on the evidence in the record, it appeared that California Gold "did an exceptional 

job in handling, conserving, marketing, selling, etc., the Up Treasure," and that such 

work "should not be cavalierly disregarded or ignored." (Decision, 5.) The court 

concluded its "comments" by recognizing the "exceptional job" California Gold had done 

in marketing the Up treasure, and stated "[i]t may very well be in the best interests of 

the Receiver and those for whom he labors * * * that he continue to work with 

[California Gold]." (Decision, 6.)

II. TRIAL COURT ERRED IN SUSTAINING THE RECEIVER'S MOTION TO 

 REPUDIATE MARKETING CONTRACT 

{¶ 22} California Gold asserts that the trial court applied an incorrect standard of 

review to determine whether the receiver could repudiate the marketing contract, as the 

trial court failed to determine whether repudiation would benefit the receivership estate. 

California Gold also contends that the marketing contract is not an executory contract 

subject to repudiation. Finally, California Gold asserts that the limitation of liability in 

Recital C of the 1999 Agreement applied only to the Up treasure, and thus did not apply 

to the marketing contract.

A. Standard of Review 

{¶ 23} A "receiver" is " 'a trustee or ministerial officer representing the court,' " 

who is " 'appointed by the court to receive and preserve the property or fund in 

litigation, and receive its rents, issues, profits, and apply or dispose of them at the 

direction of the court.' " State ex rel. Celebrezze v. Gibbs, 60 Ohio St.3d 69, 74 (1991), fn. 

4, quoting Black's Law Dictionary 1268 (6 Ed.1990). A trial court has discretion to 

appoint a receiver. Norris v. Dudley, 10th Dist. No. 07AP-425, 2007-Ohio-6646, ¶ 19.

R.C. 2735.01 provides that a common pleas court may appoint a receiver when a 

company is in imminent danger of insolvency or has forfeited its corporate rights. R.C. 

2735.01(E). "Under the control of the court which appointed him," a receiver has the 
Nos. 14AP-473, 14AP-474 & 14AP-475 10 

power to "bring and defend actions in his own name as receiver, take and keep 

possession of property, receive rents, collect, compound for, and compromise demands, 

make transfers, and generally do such acts respecting the property as the court 

authorizes." R.C. 2735.04.2

{¶ 24} The Supreme Court of Ohio has interpreted R.C. 2735.04 "as enabling the 

trial court to exercise its sound judicial discretion to limit or expand a receiver's powers 

as it deems appropriate." Celebrezze at 74. "R.C. Chapter 2735 does not contain any 

restrictions on what the court may authorize when it issues orders regarding 

receivership property." Quill v. Troutman Ent., Inc., 2d Dist. No. 20536, 2005-Ohio2020, ¶ 34. "[A]n appellate court will not disturb a trial court's judgment regarding a 

receiver's powers absent a showing of an abuse of discretion." Campbell Investors v. 

TPSS Acquisition Corp., 152 Ohio App.3d 218 (6th Dist.2003), ¶ 34, citing Celebrezze at 

73-74. 

{¶ 25} Under this standard, the trial court does have "a duty to independently 

monitor and evaluate the Receiver's conduct in relation to the duties the Receiver owed 

the parties and the assets under their control." Fifth Third Bank v. Q.W.V. Properties, 

LLC, 12th Dist. No. CA2010-09-245, 2011-Ohio-4341, ¶ 19. See also Hummer v. 

Hummer, 8th Dist. No. 96132, 2011-Ohio-3767, ¶ 18 (noting that "[w]hile there are no 

limits on the powers that may be given, a receiver's authority is not unbridled," as the 

receiver is subject to the court's order and direction). The receiver's purpose is to carry 

out the orders of the appointing court, "for the 'appointing court defines the powers of 

the receiver and, therefore, controls his actions.' " Park Natl. Bank v. Cattani, Inc., 187 

Ohio App.3d 186, 2010-Ohio-1291 (12th Dist.), ¶ 10, quoting Javitch v. First Union 

Secs., Inc., 315 F.3d 619, 626 (6th Cir.2003). 

{¶ 26} In the order appointing the receiver, the court obligated the receiver to 

"make every effort to further the corporate goal of [Columbus Exploration], which [was] 

to use the technology and inventions developed by RLP and conduct such maritime 

operations that are designed to make a positive financial return for the companies." 

(Entry Appointing the Receiver, 2.) The court further stated that the receiver would 

 

2

 R.C. 2735.04 was amended on December 19, 2014 by Am.Sub.H.B. No. 9. The amendments do not affect this 

case. 
Nos. 14AP-473, 14AP-474 & 14AP-475 11 

"have wide authority to achieve this goal," and that he would have "full control over the 

assets of the Companies in order to accomplish the purposes of this Receivership." 

(Entry Appointing the Receiver, 2, 4.) 

{¶ 27} California Gold asserts that the trial court applied the incorrect standard 

for determining whether the receiver could reject the contract at issue. An Ohio receiver 

" 'is not bound to adopt the contracts * * * or otherwise step into the shoes of the 

assignor, if in his opinion it would be unprofitable or undesirable to do so.' " Norris at 

¶ 23, quoting United States Trust Co. v. Wabash W. Ry. Co., 150 U.S. 287, 299 (1893). 

See also 80 Ohio Jurisprudence 3d, Receivers, Section 134 (similarly stating that, in 

Ohio, "[a] receiver is not bound to adopt the executory contracts * * * if, in the receiver's 

opinion, it would be unprofitable or undesirable to do so"). In Dissolution of Charles F. 

Johnson, Inc., 22 Ohio Law Abs. 534 (2d Dist.1936) (Franklin County) this court 

similarly held that the " ' general rule is undisputed that a receiver is not bound to adopt 

or perform executory contracts, or otherwise step into the shoes of the person for whom 

he is appointed receiver, if, in his opinion, it would be unprofitable or undesirable to do 

so.' " Id., quoting 34 Ohio Jurisprudence 1020. 

{¶ 28} Despite the foregoing authority, California Gold asserts, relying on Norris, 

that, under the proper standard of review, a trial court must ascertain "the benefits and 

risks to the receivership estate posed by the repudiation of the Contract." (Appellant's 

brief, 41.) As noted above, however, Norris upheld the general proposition that a 

receiver may reject an executory contract if, in the receiver's opinion, the contract is 

unprofitable or undesirable. 

{¶ 29} Although California Gold asserts that "numerous executory contract cases 

stand for the proposition that a party seeking rejection of an executory contract must 

show * * * that rejection of the executory contract 'will likely benefit the estate,' " the 

cases California Gold relies on to support its contention all concern proceedings in 

bankruptcy, not Ohio receiverships. (Emphasis sic.) (Appellant's brief, 39.) See In re 

Sun City Invest., Inc., 89 B.R. 245, 248-249 (Bankr.M.D.Fla. 1988) (noting that the 

"decision to assume or reject an executory contract is left entirely to the debtor" in 

bankruptcy, and that the court will approve the debtor's decision "subject only to review 

under the business judgment rule" which requires "a showing by the Trustee or debtor-
Nos. 14AP-473, 14AP-474 & 14AP-475 12 

in-possession that rejection of the contract will likely benefit the estate"); In re Prestige 

Motorcar Gallery, Inc., 456 B.R. 541, 544-45 (Bankr.N.D.Fla. 2011) (noting that "the 

threshold requirement and burden of the trustee is to produce credible evidence that his 

decision to assume or reject would benefit the estate or result in a successful 

reorganization").

{¶ 30} Although the business judgment rule from the bankruptcy context is not 

applicable to an Ohio receiver, we note that the receiver herein was obligated to always 

act "in the best interests of the estate." Loc.R. 66.04(C)(6). Indeed, when Mr. Kane 

accepted his appointment as receiver, he acknowledged in writing that he would "act in 

the best interests of the receivership." (Receiver's Acceptance of Appointment, 1.) 

Accordingly, when a receiver identifies an executory contract which the receiver finds 

undesirable or unprofitable, the receiver is not at liberty to reject the contract unless 

rejection is also in the best interests of the receivership estate. 

{¶ 31} Here, the receiver has only argued that the marketing contract was 

undesirable and has never contended that the contract was unprofitable. The trial court 

concluded that the receiver was " within his rights to repudiate the contract" because the 

limitation of liability in Recital C of the 1999 Agreement would effectively leave the 

"entire handling of the Down Treasure to the unfettered and unregulated discretion of 

[California Gold]." (Decision, 4). Thus, the trial court found the marketing contract to 

limit the discretion of the receiver.

B. Executory Contract 

{¶ 32} In Dissolution of Charles F. Johnson, Inc., the court stated that " '[a]n 

executory contract is one in which a party binds himself to do or not to do a particular 

thing in the future.' " Id., quoting 13 Ohio Jurisprudence 245. In Norris, this court noted 

that Black's Law Dictionary 321 (7th Ed.1999) defined an executory contract as " '[a] 

contract that remains wholly unperformed or for which there remains something still to 

be done on both sides, often as a component of a larger transaction.' " Norris at ¶ 31, 

quoting Black's Law Dictionary. The Norris court also noted that the Supreme Court of 

Ohio had defined an executory contract as " 'one in which a party binds himself to do, or 

not to do, a particular thing, whereas an executed contract is one in which the object of 
Nos. 14AP-473, 14AP-474 & 14AP-475 13 

the agreement is performed and everything that was to be done is done.' " Norris at ¶ 31, 

quoting Cassella v. Tiberio, 150 Ohio St. 27, 30 (1948). 

{¶ 33} In Norris, the court concluded that the lease at issue therein did not fit 

neatly into any of these definitions. The court analyzed the facts of the case and 

concluded that "both parties had performed their substantial obligations under the 

contract," as "Who Land LLC [lessor/party in receivership] granted a 50-year lease for a 

limited use of the 20-foot by 80-foot property, and the Fees [lessees] paid for that 

limited use as part of the property sale." Id. at ¶ 33. Although other, non-substantial 

obligations had not yet expired under the 50-year lease, because the parties had 

performed their substantial obligations under the lease, the Norris court held that the 

lease "was not an executory contract the receiver was free to reject." Id. at ¶ 33. See also

Dissolution of Charles F. Johnson, Inc. (holding that a contract was executory "in part, 

at least," as it "required the payment of the $124,000 by the corporation" in the future). 

{¶ 34} California Gold asserts that the marketing contract is not executory 

because California Gold "made considerable expenditures in marketing and promoting 

both the Up and Down" portions of the treasure during its previous marketing 

campaign. (Appellant's brief, 48.) Although we agree that California Gold's previous 

marketing campaign served in some respects to market the treasure from the S.S. 

Central America as a whole, the previous marketing campaign did not satisfy California 

Gold's substantial obligations under the marketing contract for the Down treasure.

{¶ 35} California Gold's marketing contract obligates it to market the Down 

treasure, and obligates RLP and CADG to pay California Gold a set amount in 

commission for each item of Down treasure which California Gold sells. Thus, until the 

Down treasure is recovered and curated, California Gold cannot begin to truly market 

the Down treasure for sale. Indeed, until the Down treasure is recovered, California 

Gold has no way of knowing exactly how many gold bars, gold ingots, or other 

numismatic items there will be to offer for sale. As the previous marketing campaign 

occurred almost 15 years ago, new marketing efforts will have to be undertaken once the 

Down treasure is recovered and curated. Because California Gold has yet to sell a piece 

of Down treasure, and the receiver accordingly has not paid California Gold any amount 
Nos. 14AP-473, 14AP-474 & 14AP-475 14 

in commission, neither party has fulfilled its substantial obligations under the 

marketing contract. As such, the contract is executory.

C. Undesirability and Interpretation of the 1999 Agreement 

{¶ 36} The trial court found the marketing contract undesirable in large part 

because of the limitation of liability contained in Recital C of the 1999 Agreement. 

California Gold asserts that the trial court erred in finding Recital C applicable to the 

Down treasure. The 1999 Agreement expressly provides that the "Agreement and the 

legal relations between the parties hereto shall be governed by and construed in 

accordance with the internal laws of the State of California." (1999 Agreement, Section 

7.7.) Accordingly, we are bound to apply California law to interpret the contract.

{¶ 37} Under California law, a written contract must be read as a whole, and 

every part must be interpreted with reference to the whole. In re Crystal Properties, 

Ltd., L.P., 268 F.3d 743, 747 (9th Cir.2001). The language of a contract is to govern its 

interpretation, if the language is clear and explicit, and does not involve an absurdity. 

Cal.Civ.Code 1638. Contractual clauses are not to be construed in isolation, rather, 

"[t]he whole of a contract is to be taken together, so as to give effect to every part, if 

reasonably practicable, each clause helping to interpret the other." Cal.Civ.Code 1641. 

{¶ 38} The fundamental canon of interpreting written instruments is the 

ascertainment of the intent of the parties. Ticor Title Ins. Co. v. Rancho Santa Fe Assn.,

177 Cal.App.3d 726, 730, 223 Cal.Rptr. 175 (1986). See also Cal.Civ.Code 1636 (stating 

that "[a] contract must be so interpreted as to give effect to the mutual intention of the 

parties as it existed at the time of contracting, so far as the same is ascertainable and 

lawful"). See also People v. Rabanales, 168 Cal.App.4th 494, 505, 85 Cal.Rptr.3d 607, 

616 (2008), quoting Ben-Zvi v. Edmar Co., 40 Cal.App.4th 468, 473, 47 Cal.Rptr.2d 12, 

14 (1995) (stating that, " '[w]here the parties have reduced their agreement to writing, 

their mutual intention is to be determined, whenever possible, from the language of the 

writing alone' "). 

{¶ 39} "[C]ourts must interpret contractual language in a manner which gives 

force and effect to every provision, and not in a way which renders some clauses 

nugatory, inoperative or meaningless." City of Atascadero v. Merrill Lynch, Pierce, 

Fenner & Smith, Inc., 68 Cal.App.4th 445, 473, 80 Cal.Rptr.2d 329 (1998). "An 
Nos. 14AP-473, 14AP-474 & 14AP-475 15 

interpretation which renders part of the instrument to be surplusage should be 

avoided." Ticor Title Ins. Co. at 730. "Particular clauses of a contract are subordinate to 

its general intent." Cal.Civ.Code 1650. "However broad may be the terms of a contract, it 

extends only to those things concerning which it appears that the parties intended to 

contract." Cal.Civ.Code 1648. Additionally, in California, "[s]everal contracts relating to 

the same subject matters, between the same parties, and made as parts of substantially 

one transaction are to be taken together." Cal.Civ.Code 1642. 

{¶ 40} If the terms of a promise are ambiguous or uncertain, courts may consider 

the circumstances surrounding the agreement to establish the "sense in which the 

promisor believed * * * that the promisee understood it." Cal.Civ.Code 1649; People v. 

Shelton, 37 Cal.4th 759, 767 (2006). "To say that language is ambiguous is to say there is 

more than one semantically permissible candidate for application, though it cannot be 

determined from the language which is meant." In Re Estate of Dye, 92 Cal.App.4th 

966, 976, 112 Cal.Rptr.2d 362 (2001). In the face of ambiguity, a court may admit parol 

evidence to interpret the contract. Adams v. MHC Colony Park Ltd. Partnership, 224 

Cal.App.4th 601, 620, 169 Cal.Rptr.3d 146 (2014). See Cal.Civ.Code 1647 (an ambiguous 

contract "may be explained by reference to the circumstances under which it was made, 

and the matter to which it relates"). 

{¶ 41} If a trial court considers the terms of the agreement, as well as the 

surrounding circumstances and the intent of the parties, a reviewing court may not 

substitute another interpretation, though the other interpretation seems equally 

tenable. Pope v. Allen, 225 Cal.App.2d 358, 365, 37 Cal.Rptr. 371 (1964). If, however, 

" ' the trial court's interpretation of a written instrument depends solely on the language 

of the document and no other evidence [was] before the court, a reviewing court is not 

bound by the trial court's construction, but may determine the contract's meaning as a 

matter of law.' " Id., quoting 12 California Jurisprudence 2d 119, 326-27. 

{¶ 42} The trial court and the receiver both assumed that the "Treasure" in the 

1999 Agreement included the Down treasure. On appeal, the receiver continues to assert 

that Recital A "defines the 'Treasure' as the gold and silver 'that CADG has recovered, 

and intends to recover, from the SS Central America," and thus asserts that Recital C 
Nos. 14AP-473, 14AP-474 & 14AP-475 16 

"applies to both the Up Treasure and the Down Treasure." (Emphasis sic.) (Appellee's 

brief, 14.) The recitals from the 1999 Agreement state, in their entirety, as follows:

RECITALS

A. Certain of the Members of [California Gold] previously 

entered into an agreement in November 1998 with CADG for 

the purchase and/or marketing of certain gold and silver 

coins, gold bars, and other numismatic items (hereafter the 

"Treasure") that CADG has recovered, and intends to 

recover, from the SS Central America. 

B. The November 1998 Agreement with CADG had been 

amended by Amendment No. 1 dated February 24, 1999, 

Amendment No. 2 dated in February 1999, and Amendment 

No. 3 dated August 1999, all of the foregoing documents are 

collectively hereafter referred to as the "Columbus 

Agreement" and is attached hereto, in its entirety, and as 

amended, as Exhibit 0.1 and has expired. While the 

Columbus Agreement [i.e. the 1998 agreement] concerned 

Recovered Gold Collectibles and Other Gold Collectibles 

(each as defined in the Columbus Agreement), this 

Agreement concerns only the Recovered Gold Collectibles 

and supercedes [sic] all prior agreements concerning the 

Recovered Gold Collectibles. Those provisions of the 

Columbus Agreement which concern solely the Other Gold 

Collectibles shall continue to survive and are, by this 

reference, made a part of this Agreement. 

C. Purchaser recognizes Seller's interest in and desire for 

marketing of the Treasure in a diligent, professional and 

dignified manner consist [sic] with the scientific and 

historical significance of the Central America Project, its 

public identification with innovation, scientific discovery, 

entrepreneurship and historic preservation and 

maximization of the cultural value of its recoveries. 

Notwithstanding the foregoing nonbinding statement of 

desire set forth above in this paragraph, Purchaser or any 

assignee, or successor thereof, shall have the power to 

manage the marketing of the Treasure in its sole and 

absolute discretion and without any liability or obligation to 

the Seller or any other person. 

D. Christie's International PLC holds a lien against the 

Treasure. Pursuant to an Asset Purchase Agreement (the 

"Christie's Agreement") to be executed concurrently 
Nos. 14AP-473, 14AP-474 & 14AP-475 17 

herewith, it will remove its lien. A copy of Christie's 

Agreement is attached as Exhibit 0.2. 

E. Union Bank of California ("Union Bank") holds a 

judgment against CADG ("Union Bank Judgment"). 

Pursuant to a Discounted Payoff Agreement (the "Union 

Bank Agreement") previously executed and dated August 27, 

1999, and as amended, October 29, 1999, and on the date 

hereof, Union Bank will, upon payment of $3,673,500 

(inclusive of amounts previously paid pursuant to the Union 

Bank Agreement remove its judgment lien). A copy of the 

Union Bank Agreement is attached as Exhibit 0.3. 

F. The Seller desires to sell to the Purchaser, and the 

Purchaser desires to purchase from the Seller, all of the 

assets, properties and rights concerning those certain 

Recovered Gold Collectibles as specifically set forth on 

Schedule A attached hereto (collectively, the "Assets"). 

NOW, THEREFORE, for and in consideration of the 

premises [sic] and mutual covenants and agreements 

contained herein, and intending to be legally bound hereby, 

the hereto hereby agree as follows[.] 

(Recitals of the 1999 Agreement.) 

{¶ 43} Thus, the term "Treasure" is defined in Recital A as "certain gold and silver 

coins, gold bars, and other numismatic items." (Recital A of the 1999 Agreement.) The 

receiver contends that Treasure means the gold and silver that CADG has recovered, and 

intends to recover, from the S.S. Central America. However, by using an integrated 

definition of the term Treasure, the term includes the words which precede the 

parenthetical reference, not the words which follow the parenthetical. See Kenneth A. 

Adams, A Manual of Style for Contract Drafting Section 5.34 (2d Ed.2008) (stating 

that "an integrated definition constitutes part of the substantive provisions of a contract, 

and the defined term is defined by tucking it at the end of the definition, in 

parentheses"). Compare Olympus Ins. Co. v. AON Benefield, Inc., 711 F.3d 894, 898 

(8th Cir.2013) (finding that the trial court properly "limited the definition of 'Subject 

Business' to those words preceding the parenthetical reference," and rejecting the 

appellant's contention that the definition "must also encompass the language following 

the integrated parenthetical"); Berg v. eHome Credit Corp., 848 F.Supp.2d 841, 846 
Nos. 14AP-473, 14AP-474 & 14AP-475 18 

(N.D.Ill.2012) (noting that "one method of defining terms in an agreement is by placing 

a defined term in parentheses and quotation marks immediately following the definition 

of the term," and that as the term "Borrower" appeared "in parentheses and quotation 

marks after Stanley Berg and Ingrid Berg's names" the term "Borrower" included both 

Stanley and Ingrid Berg). 

{¶ 44} If the parties had intended for "Treasure" to mean the "certain gold and 

silver coins, gold bars, and other numismatic items that CADG has recovered, and 

intends to recover, from the SS Central America," the definition of "Treasure" would 

have been placed at the end of the sentence. Notably, other defined terms from the 1999 

Agreement similarly encompass the words which come before the parenthetical, and not 

the words which follow the parenthetical.3 Moreover, in defining the terms Recovered 

Gold Collectibles and Other Gold Collectibles in the 1998 Agreement, the parties placed 

the recovered or yet to be recovered status of the treasure in front of the parenthetical. 

Thus, the parties defined Other Gold Collectibles as "any gold and silver coins and 

numismatic items (including, without limitation, bars) [CADG] or its affiliates, assigns, 

agents, or representatives recover and own, or have the legal right to market, from the 

SS Central America at any time following the date of this Agreement (the 'Other Gold 

Collectibles') upon the following terms and conditions." (1998 Agreement, Section 2.) 

The parties defined Recovered Gold Collectibles by stating that, "[a]s of the date of this 

Agreement, [CADG] has recovered from the SS Central America and retains those items 

listed on the inventory which is an Exhibit to the Agreement signed by Columbus and 

Dwight Manley on or about July 16, 1998, consisting of gold coins and numismatic items 

(the 'Recovered Gold Collectibles')." (1998 Agreement, Section 1.)

{¶ 45} Using the parties' definition of "Treasure" from Recital A, Recital C does 

not clearly apply to any particular portion of the treasure. However, as Recital B states 

 

3 See other terms defined in the recitals. See also other terms defined in the 1999 Agreement, including, 

for example, "any and all revenues or other value received by the owner or marketing agent of the Assets 

arising from its ownership of the Assets, including revenues from sale and/or promotion of the Assets, 

and any reproduction, merchandise or other thing or value made, manufactured or created that is derived 

from the Assets (collectively the "Gross Revenues"), less actual or reasonable 'direct costs of sale' "; 

"Section 1060 of the Internal Revenue Code of 1986, as amended (the "Code")"; "the Purchaser shall 

indemnify and save harmless the Seller and its officers, directors, partners, shareholders, successors and 

assigns (collectively, the "Additional Indemnified Party") from and against any loss, claim, liability [and] 

damage." (1999 Agreement.)
Nos. 14AP-473, 14AP-474 & 14AP-475 19 

that the 1999 Agreement "concerns only the Recovered Gold Collectibles," i.e. the Up 

treasure, Recital C's limitation of liability can apply only to the Up treasure. Moreover, 

applying the principals of California contract interpretation law, we must look at the 

entire agreement and interpret every part of the agreement in reference to the whole. 

Aside from the incorporation of the Down treasure provisions in Recital B, the entire 

1999 Agreement concerns only the terms of the sale of the Up treasure. Indeed, the 

agreement is titled an "Asset Purchase Agreement," and all of the operative provisions in 

the contract concern the transfer of the Up treasure, the amount California Gold will pay 

for the Up treasure, and the general representation, warranties, and indemnification 

provisions relating to the transfer of ownership of the Up treasure. Moreover, to the 

extent the limitation of liability in Recital C is a particular clause, it is subordinate to the 

1999 Agreement's general intent, which was to sell the Up treasure to California Gold. 

See Cal.Civ.Code 1650. Thus, looking at the contract as a whole and not reading Recital 

C in isolation, it is apparent that Recital C was intended as a limitation of liability 

regarding California Gold's conduct in marketing the Up treasure, which California Gold 

purchased through the 1999 Agreement. 

{¶ 46} To the extent that the use of the term "Treasure" in Recital C renders the 

meaning of the limitation of liability in Recital C ambiguous, we may look to parol 

evidence to help determine the parties' intentions at the time of contracting. However, 

the only parol evidence in the record regarding the parties' intentions is the affidavit of 

Dwight Manley. Manley stated in his affidavit that he was actively involved in the 

negotiations for both the 1999 and 1998 Agreement. He averred that it was his "intent 

that the 1999 Asset Purchase Agreement applied only to the Up Treasure, and that all 

provisions in the [1998] Agreement relat[ing] to the Down Treasure survived, and 

continued to apply." (Emphasis sic.) (May 12, 2014 Affidavit, ¶ 4.) Manley averred that 

"[a]ll of the communications between the parties at that time were consistent with this 

contractual reality." (May 12, 2014 Affidavit, ¶ 4.) Manley's affidavit thus further 

indicates that the parties intended for the limitation of liability in Recital C to apply only 

to the Up treasure. 

{¶ 47} The 1998 Agreement also indicates that Recital C was intended to apply 

solely to the Up treasure. Section 1 of the 1998 Agreement concerned only the Up 
Nos. 14AP-473, 14AP-474 & 14AP-475 20 

treasure. In Section 1, California Gold offered to pay $36 million for the Up treasure, 

and the agreement stated that, "[f]ollowing the transfer of the Recovered Gold 

Collectibles to [California Gold], [California Gold] shall be solely responsible for and 

shall control all additional marketing and curating costs relating to the Recovered Gold 

Collectibles." (1998 Agreement, Section 1(d).) The agreement then stated that California 

Gold "shall perform the services and shall manage marketing in a diligent, professional 

and dignified manner, consistent with the scientific and historical significance of the 

Central America project, its public identification with innovation, scientific discovery, 

entrepreneurship, and historic preservation, and maximization of the economic and 

cultural value of its recoveries." (1998 Agreement, Section 1(d).) 

{¶ 48} The language from Section 1(d) of the 1998 Agreement tracks, nearly 

verbatim, the statement of desire contained in Recital C. Notably, there is no similar 

statement of desire contained in Section 2 of the 1998 Agreement, which contained the 

marketing contract for the Down treasure. Accordingly, if Recital C is ambiguous, based 

on the Manley affidavit and the identical language from Section 1(d) of the 1998 

Agreement, we find that the parties intended for the limitation of liability in Recital C to 

apply only to the Up treasure. 

{¶ 49} Because Recital C in the 1999 Agreement was intended to apply only to the 

Up treasure, the receiver's contention that the marketing contract with California Gold 

was undesirable because Recital C rendered California Gold immune from any liability 

with respect to the Down treasure, is unfounded. As the trial court similarly based its 

decision sustaining the motion to repudiate on the belief that Recital C in the 1999 

Agreement applied to the marketing of the Down treasure, we find the trial court erred 

in granting the receiver's motion to repudiate. 

{¶ 50} Although the limitation of liability in Recital C was the trial court's basis 

for granting the motion to repudiate, we note that the receiver has raised additional 

concerns regarding the marketing contract. For instance, the receiver asserts that the 

1999 Agreement does not give the receiver the right "to affect the marketing of the Down 

Treasure or the price at which it is sold." (Appellee's brief, 20.) Similarly, in the 

receiver's motion to repudiate the marketing contract, the receiver stated that the 

marketing contract deprived "the Receiver of any control over the disposition of 
Nos. 14AP-473, 14AP-474 & 14AP-475 21 

substantially all of the receivership assets." (Receiver's Motion to Repudiate, 6.) These 

statements reflect a misunderstanding on the part of the receiver regarding the property 

rights it possesses in the Down treasure. 

{¶ 51} "A common idiom describes property as a 'bundle of sticks' – a collection 

of individual rights which, in certain combinations, constitute property." United States 

v. Craft, 535 U.S. 274, 278 (2002). See also Eric A. Kades, Property Rights and 

Economic Development, 45 Wm. & Mary L.Rev. 815, 817-18 (2004) (explaining that, 

"[p]erhaps most famously, property law scholars speak incessantly of the 'bundle of 

sticks' that constitute property: various combinations of the rights to exclude, to use, 

and to alienate as the three sticks that, tied together, make up the bundle of rights we 

commonly associate with the word 'property' "). Pursuant to the marketing contract, 

California Gold possesses a single stick from the much larger bundle of rights which the 

receiver, on behalf of the receivership entities, possesses in the Down treasure. 

California Gold only has the right to market the Down treasure and offer it for sale. The 

receiver, as the owner, is the only individual with the power to dispose of the property. 

Accordingly, the receiver has every right to control the disposition of the Down treasure 

and determine the price at which the Down treasure will be sold. 

{¶ 52} The receiver also asserts that the 1999 Agreement contains no 

performance standard for California Gold and does not require that sales of the Down 

treasure occur "at arms' length to bona fide third party purchasers." (Appellee's brief, 

20.) As the trial court expressly found that California Gold did "an exceptional job in * * 

* marketing, [and] selling, etc., the Up Treasure," the receiver's concerns over California 

Gold's performance appear unfounded. (Decision, 5.) Moreover, we note that "[i]t has 

long been recognized in California that '[t]here is an implied covenant of good faith and 

fair dealing in every contract that neither party will do anything which will injure the 

right of the other to receive the benefits of the agreement.' " Kransco v. Am. Empire 

Surplus Lines Ins. Co., 23 Cal.4th 390, 400 (2000), quoting Comunale v. Traders & 

Gen. Ins. Co., 50 Cal.2d 654, 658 (1958). "The scope of the duty of good faith and fair 

dealing depends upon the purposes of the particular contract because the covenant 'is 

aimed at making effective the agreement's promises.' " Id., quoting Foley v. Interactive 

Data Corp., 47 Cal.3d 654, 683 (1988). "Although breach of the implied covenant often 
Nos. 14AP-473, 14AP-474 & 14AP-475 22 

is pleaded as a separate count, a breach of the implied covenant is necessarily a breach 

of contract." Digerati Holdings, LLC v. Young Money Entertainment, LLC, 194 

Cal.App.4th 873, 885, 123 Cal.Rptr.3d 736 (2011). Thus, pursuant to the implied 

covenant of good faith and fair dealing, the receiver will have a breach of contract claim 

against California Gold if California Gold does anything to injure the receiver's right to 

receive the benefits of the marketing contract. 

{¶ 53} The receiver also notes that the 1999 Agreement does not provide for 

indemnification regarding the marketing of the Down treasure. However, Section 3 of 

the 1998 Agreement provides for indemnification, and states that CADG and California 

Gold "each agrees to protect, indemnify, and hold the other harmless from and against 

any and all expenses, damages, liabilities, * * * and costs whatsoever," which may be 

"incurred or suffered by the other in any claim * * * against a party to this agreement by 

a third party alleging any breach of warranty, covenant, representation, or other duty 

under this agreement by other party." (1998 Agreement, Section 3.) 

{¶ 54} The receiver asserted below that this provision was not incorporated into 

the 1999 Agreement through the reference in Recital B, as it was not a provision which 

concerned solely the Down treasure. However, because the provisions regarding the Up 

treasure in the 1998 Agreement were superseded by the 1999 Agreement, the only 

operative provision remaining in the 1998 Agreement at the time of the 1999 Agreement 

was the marketing contract. Thus, at the time of the 1999 Agreement, the 

indemnification provision in Section 3 of the 1998 Agreement concerned solely the 

Down treasure and was accordingly incorporated by reference into the 1999 Agreement. 

Similarly, Section 4 of the 1998 Agreement states that "each party shall act as a fiduciary 

to the other in * * * accounting for any gold or silver coins and numismatic items 

recovered from the SS Central America." (1998 Agreement, Section 4.) Again, as all of 

the provisions relating to the Up treasure had expired and were superseded by the 1999 

Agreement, the fiduciary obligation in Section 4 relating to accounting for the gold and 

silver recovered from the S.S. Central America concerned solely the Down treasure and 

was therefore incorporated by reference into the 1999 Agreement through Recital B. 
Nos. 14AP-473, 14AP-474 & 14AP-475 23 

III. DISPOSITION

{¶ 55} Based on the foregoing, we find the trial court erred in accepting the 

receiver's erroneous interpretation of Recital C in the 1999 Agreement to support his 

sole claim of undesirability. The relevant contract language does not support the 

receiver's contention that the receivership entities have "no control whatsoever with 

regard to the marketing of the Down Treasure." Accordingly, we sustain appellant's 

assignment of error and reverse the judgment of the Franklin County Court of Common 

Pleas. The case is remanded for further proceedings consistent with this decision.

Judgment reversed; case remanded. 

SADLER and DORRIAN, JJ., concur. 

_________________