A decision awarding a former Wendy’s on the campus of Bowling Green State University more than $510,000
for breach of contract was reversed last week.
The new judgment was rendered by the Court of Appeals of Ohio’s 10th Appellate District.
A prior finding by the Court of Claims indicated that BGSU had acted in bad faith by prohibiting the
former Wendy’s in the Bowen-Thompson Student Union, operated by Pertoria Inc., from accepting meal plan
funds. Wendy’s had full access to meal plan funds starting in 2002, but the university fully disallowed
it in mid-2009.
According to the judgment document, an early 2009 review of BGSU’s dining services operations indicated
they could realize more than $1.2 million in revenue by canceling Wendy’s access to meal plan dollars.
Pertoria claimed breach of contract as a result.
BGSU in 2013 counter-filed that the rent Wendy’s paid during its years at the Student Union fell short of
what they said should have amounted to $480,000.
Pertoria was awarded nearly $460,000, plus over $51,300 in prejudgment interest, in late 2013 by the
Court of Claims for breach of contract. The court said BGSU had additionally failed to prove its
counterclaim regarding rent.
BGSU subsequently appealed.
In its new judgment, the Court of Appeals of Ohio’s 10th Appellate District indicated that "BGSU did
not have a duty to grant Pertoria access to any particular amount of meal plan funds, and it did not
breach the implied duty of good faith by prohibiting Pertoria’s access to such funds." It thus
reversed the award of damages.
The court, however, overruled BGSU’s claim that the court erred in finding they had waived its right to
lost rent.
