Velocity Constr. Servs., L.L.C. v. Ohio State Univ.

Citations

• 2019 Ohio 3267

Syllabus

Construction contract fraud discovery Civ.R. 36 summary judgment Civ.R. 56 referee Civ.R. 53. Plaintiff/counter-defendant is a construction company contracted by defendant/counter-plaintiff, a state university, to perform building renovation projects. The contracts were terminated before the projects were completed. The construction company sued for breach of contract and unjust enrichment, and the university countersued for breach of contract, breach of express warranties, and fraud. The university moved for summary judgment on its claim for fraud. Due to the construction company's failure to respond to the university's request for admissions during discovery, the referee deemed certain facts admitted pursuant to Civ.R. 53. Based on these admissions, the referee recommended the university be granted summary judgment on the liability portion its fraud claim. The referee found the contractor liable for fraud because it knowingly made material misrepresentations to the university about the level of progress and quality of materials used on the projects. The university reasonably and justifiably relied on these misrepresentations. The reliance caused injury to the university, which was left with partially-finished projects and at least one building where the construction company installed a lower quality of materials than the contract called for.