[Cite as Re/Max Crossroads Properties v. Roberts, 2013-Ohio-5575.]

Court of Appeals of Ohio

 EIGHTH APPELLATE DISTRICT 

 COUNTY OF CUYAHOGA 

 JOURNAL ENTRY AND OPINION

 No. 99537 

RE/MAX CROSSROADS PROPERTIES 

PLAINTIFF-APPELLEE

vs.

THOMAS ROBERTS

DEFENDANT-APPELLANT 

JUDGMENT:

AFFIRMED

Civil Appeal from the 

Berea Municipal Court 

Case No. 10 CVF 03395 

BEFORE: Kilbane, J., Boyle, P.J., and Keough, J. 

RELEASED AND JOURNALIZED: December 19, 2013
ATTORNEY FOR APPELLANT

David M. Lynch 

333 Babbitt Road 

Suite 333 

Euclid, Ohio 44123 

ATTORNEYS FOR APPELLEE

Katheryn J. McFadden 

Donald P. McFadden 

Monica E. Russell 

McFadden & Freeburg Co., L.P.A. 

1370 Ontario Street 

Suite 600 

Cleveland, Ohio 44113 
MARY EILEEN KILBANE, J.: 

{¶1} Defendant-appellant, Thomas Roberts d.b.a. Citadel Communications/Data 

Encompass Technologies, Inc. (“Roberts,” “Encompass,” or “Citadel 

Communications”), appeals from the judgment of the Berea Municipal Court that 

awarded plaintiff-appellee, Re/Max Crossroads Properties (“Re/Max”), $11,665 in 

connection with a telephone upgrade project. For the reasons set forth below, we affirm. 

 

{¶2} Re/Max sought to upgrade its existing telephones in order to accommodate 

Voice over Internet Protocol (“VoIP”) service. On August 31, 2010, Re/Max paid 

Roberts $10,665. Roberts began work on the telephone system, but by November 18, 

2010, VoIP service was not operational, and Re/Max demanded the return of the $10,665 

payment. 

{¶3} On December 20, 2010, Re/Max filed suit against Roberts, alleging that 

Roberts had agreed to reprogram the existing telephones and to install VoIP technology. 

Roberts maintained that he did not promise to complete such an upgrade, but had agreed 

to simply review the existing telephone system to evaluate whether it could be used for 

VoIP service. 

{¶4} On April 12, 2011, Re/Max propounded discovery to Roberts. By August 

12, 2011, Roberts had not responded, and on August 12, 2011, Re/Max filed a motion to 

compel. The trial court granted this motion on August 18, 2011. At his deposition on 

August 31, 2011, Roberts agreed to provide various records to Re/Max, including records 
pertaining to how the $10,665 payment was disbursed, time spent on the project, and the 

name and addresses of defense witnesses. Roberts ultimately did not provide this 

information, and on October 13, 2011, Re/Max filed a second motion to compel. On 

December 15, 2011, the magistrate granted the motion and ordered that the documents 

Roberts failed to provide could not be offered at trial, Roberts could not present testimony 

from unidentified witnesses, and monetary sanctions would be imposed. 

{¶5} The matter proceeded to trial before a magistrate on November 14, 2012. 

At this time, Re/Max requested $1,000 as an additional sanction for the discovery 

violations. Thereafter, Mary Lou Steed (“Steed”) of Re/Max testified that Roberts 

indicated that the existing Cisco phones could be used for the VoIP technology, and he 

agreed to “reflash” them and “get them working in the new voice system.” Although 

Roberts informed Steed that the name of his company was Encompass, he requested that 

the $10,665 check for payment list Citadel as the payee. Steed also testified that an 

Encompass employee took the existing phones but Roberts failed to deliver any of the 

agreed-upon products or services and repeatedly refused to return Re/Max’s payment. 

Steed admitted on cross-examination that the parties’ written contract was never signed. 

The parties undertook performance under the terms of the agreement, however. Steed 

also admitted that an entity named Cavalier had obligations under a portion of the 

contract, and that the contract states “assumed use of existing IP phones, switches and 

routers to convert. Otherwise, these [phones] are in addition, See optional/additional IP 

phones from Encompass.” 
{¶6} Re/Max also directed the trial court to a portion of Roberts’s deposition 

that had previously been filed with the court, in which he admitted that he is 

self-employed and operates under “Citadel Communications.” 

{¶7} Roberts did not present evidence but also directed the court to his 

deposition. Roberts maintained in deposition that completion of the VoIP service was 

contingent upon use of existing phones, that he undertook to have the existing phones 

“reflashed” but was unable to do so despite his best efforts, and that he was entitled to 

payment for his efforts. 

{¶8} On November 16, 2012, the magistrate entered judgment for Re/Max and 

against Roberts in the amount of $11,665. Roberts filed objections, but on January 15, 

2013, the trial court overruled the objections, approved and confirmed the magistrate’s 

recommendation, and entered judgment in favor of Re/Max for $11,665. 

{¶9} Roberts now appeals, assigning the following sole assignment of error for our 

review: 

The trial court ruled against the weight of the evidence that demonstrated: 

[1.] There was no contract for any repair, only to investigate what repairs 

were needed[; and 2.] There was no personal liability demonstrated. 

{¶10} In State v. Wilson, 113 Ohio St.3d 382, 387, 2007-Ohio-2202, 865 N.E.2d 

1264, the Ohio Supreme Court described the civil manifest-weight-of-the-evidence 

standard as follows: 

[T]he civil manifest-weight-of-the-evidence standard was explained in C.E. 

Morris Co. v. Foley Const. Co. [1978], 54 Ohio St.2d 279, 8 Ohio Op.3d 

261, 376 N.E.2d 578, syllabus (“Judgments supported by some competent, 

credible evidence going to all the essential elements of the case will not be 
reversed by a reviewing court as being against the manifest weight of the 

evidence”). We have also recognized when reviewing a judgment under a 

manifest-weight-of-the-evidence standard, a court has an obligation to 

presume that the findings of the trier of fact are correct. * * * This 

presumption arises because the trial judge [or finder-of-fact] had an 

opportunity “to view the witnesses and observe their demeanor, gestures 

and voice inflections, and use these observations in weighing the credibility 

of the proffered testimony.” * * * “A reviewing court should not reverse a 

decision simply because it holds a different opinion concerning the 

credibility of the witnesses and evidence submitted before the trial court. 

A finding of an error in law is a legitimate ground for reversal, but a 

difference of opinion on credibility of witnesses and evidence is not.” 

Id. at ¶ 24. 

{¶11} A breach of contract is defined as the failure, without legal excuse, to 

perform any promise that forms a whole or part of the contract. J&J Schlaegel, Inc. v. 

Bd. of Trustees., 2d Dist. Champaign Nos. 2005-CA-31 and 2005-CA-34, 

2006-Ohio-2913, ¶ 24. To establish the essential elements of a breach of contract claim, 

the plaintiff must demonstrate that: (1) a contract existed; (2) the plaintiff fulfilled his 

obligations; (3) the defendant breached his obligations; and (4) damages resulted from 

this breach. Doner v. Snapp, 98 Ohio App.3d 597, 600, 649 N.E.2d 42 (2d Dist.1994). 

{¶12} In this matter, Re/Max’s evidence demonstrated that Roberts agreed to 

reflash the phones and get them working in their new voice system. Although the parties 

contemplated use of existing telephones, Re/Max’s evidence demonstrated that Roberts’s 

implementation of the VoIP system was not made contingent upon the ability to have the 

phones successfully reflashed for the new system. Steed then gave Roberts a check for 

$10,665, which he cashed. In the course of discovery, Roberts failed to produce 

evidence of work performed, expenses incurred, or individuals who worked on the 
project. Ultimately, the VoIP system was never implemented, and Roberts refused to 

return the funds. Therefore, we find competent, credible evidence that Roberts breached 

the agreement. 

{¶13} As to the issue of personal liability, to avoid personal liability in the instant 

case the agent must demonstrate that, as the agent, he disclosed: (1) the agency 

relationship, and (2) the identity of the principal. Indep. Furniture Sales, Inc. v. Martin,

184 Ohio App.3d 562, 2009-Ohio-5697, 921 N.E.2d 718 (8th Dist.) If this disclosure is 

not made, then the agent may be personally liable for contracts entered in his own name. 

Id., citing James G. Smith & Assoc., Inc. v. Everett, 1 Ohio App.3d 118, 120-121 439 

N.E.2d 932 (10th Dist.1981). 

{¶14} As the Everett court noted, an agent may be held personally liable in 

situations: 

(2) Where the principal is only partially disclosed, i.e., where the existence 

of an agency is known to the third person, but the identity of the principal is 

not known. Here, the agent is held to be a party to the transaction and is 

liable to the third party, as is the agent’s principal. Grob v. Myers (1926), 

4 Ohio Law Abs. 349. See also Givner v. United States Hoffman 

Machinery Corp. (1935), 49 Ohio App. 410, 18 Ohio Law Abs. 431, 197 

N.E. 354. The reason for the rule is that since the identity of the principal 

is not known to the third party, he ordinarily will not be willing to rely 

wholly upon the credit and integrity of an unknown party. 

* * * 

(4) Where there is a fictitious or nonexistent principal, or the principal is 

without legal capacity or status. If an agent purports to act on behalf of 

such a “principal,” the agent will be liable to the third party as a party to the 

transaction. See Trust Co. v. Floyd (1890), 47 Ohio St. 525, 26 N.E. 110; 

Seasongood & Mayer v. Riddle (1923), 18 Ohio App. 88. See also 

Brawley v. Anderson (1947), 80 Ohio App. 15, 48 Ohio Law Abs. 250, 74 
N.E.2d 428. One cannot be an agent for a nonexistent principal; there is no 

agency. This situation frequently arises where a corporate promoter enters 

into contracts prior to the time the corporation is actually incorporated. See 

Trust Co. 

{¶15} Applying those principles, the court in Huskin v. Hall, 11th Dist. Trumbull 

No. 2011-T-0048, 2012-Ohio-653, concluded that an individual could be personally liable 

where he uses a fictitious d.b.a. and also fails to disclose that he is actually acting on 

behalf of a different principal. 

{¶16} Similarly, in this matter, Roberts entered into the agreement using the d.b.a. 

Citadel Communications, and he stated that this is a “self-employed data VAR solution 

provider.” The designation d.b.a. or “doing business as” simply indicates that a person 

or a corporation is operating under a fictitious business name. It does not mean the 

business is a separate and distinct legal entity or that Roberts is not personally liable for 

the debts incurred by the business. Schleki v. Beverly, 8th Dist. Cuyahoga No. 59842, 

1992 Ohio App. LEXIS 1198 (Mar. 19, 1992), (Krupansky, J., concurring). 

{¶17} Further, Steed testified that Roberts’s proposed contract stated “Encompass 

Technology, Inc.,” and she believed she was dealing with an incorporated entity. In any 

event, Roberts admitted in his deposition that “the company [Encompass] wasn’t properly 

or fully formed when we went forward with the deal to do their phone system, it was done 

under the Citadel name, the Citadel entity.” Under these circumstances, Roberts’s use of 

the Citadel Communications d.b.a. while purporting to act for Encompass Technology, 

Inc., prior to the actual incorporation of that entity, did not insulate Roberts from personal 

liability in this matter. The trial court did not err in imposing personal liability. 
{¶18} In accordance with the foregoing, there is competent, credible evidence to 

establish that Roberts breached the contract with Re/Max and that he is personally liable. 

The assignment of error is without merit. 

{¶19} Judgment affirmed. 

It is ordered that appellee recover from appellant costs herein taxed. 

The court finds there were reasonable grounds for this appeal. 

It is ordered that a special mandate be sent to said court to carry this judgment into 

execution. 

A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of 

the Rules of Appellate Procedure. 

 

 

MARY EILEEN KILBANE, JUDGE 

MARY J. BOYLE, P.J., and 

KATHLEEN A. KEOUGH, J., CONCUR