Zeller v. Farmers Group, Inc.

Citations

• 2019 Ohio 3297

Syllabus

Plaintiffs-appellants asserted the following causes of action against appellees: (1) fraudulent inducement (2) breach of contract and (3) a violation of R.C. Chapter 1334, which regulates business opportunity plans. The trial court did not err by dismissing the individual breach of contract claims under Civ.R. 12(B)(6) or through summary judgment under Civ.R. 56. The trial court did not err by granting summary judgment in appellees' favor on the R.C. Chapter 1334 cause of action. The trial court granted appellees' Civ.R. 12(B)(6) motion to dismiss appellant's fraudulent inducement cause of action based upon two conclusions: (1) that the alleged statements constituting fraudulent inducement were precluded by the parol evidence rule and (2) the complaint's fraud allegations were insufficient under Civ.R. 9(B). The trial court correctly dismissed the fraudulent inducement allegations set forth in paragraphs 77(a) and (e)-(o) because these allegations conflicted with contractual provisions and, thus, were precluded by the parol evidence rule. But the trial court erred by dismissing the fraudulent inducement allegations set forth in paragraphs 77(b)-(d) because the alleged fraudulent inducement promises were not in conflict with any contractual provision. The trial court correctly dismissed the fraudulent inducement cause of action because the allegations were not sufficient under Civ.R. 9(B), but it erred by dismissing the cause of action with prejudice. Upon remand, appellants should be allowed to file an amended complaint as to paragraphs 77(b)-(d) which conforms to Civ.R. 9(B). The trial court did not err by concluding that appellants' issuance of IRS Form 1099-MISC to some appellants did not establish, as a matter of law, that appellants had forgiven the repayment of subsidies paid to these appellants. Thus, the trial court did not err by overruling appellants' motion for summary judgment on appellees' counterclaim seeking judgment against those appellants who did n