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WSB Rehab. Servs. Inc. v. Cent. Accounting Sys. Inc.

Ohio Ct. App.June 24, 2022No. C-210454 & C-210467Cited 4 times
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Case Details

Judge(s)
Bock
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
summary judgment

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Excerpt

SUMMARY JUDGMENT — BREACH OF CONTRACT — CONDITION PRECEDENT — ANTI-WAIVER CLAUSE — INDEMNIFICATION — TORTIOUS INTERFERENCE WITH A CONTRACT: The trial court properly granted summary judgment in favor of plaintiff where it was undisputed that defendants waived a condition precedent to the party's agreements by failing to enforce an "invoice requirement" for seven years. The trial court properly found that the anti-wavier clause contained within the agreements was not triggered as non-performance of a condition precedent is not a breach of contract and plaintiff did not violate the agreements. The trial court properly concluded that defendants were entitled to summary judgment on defendants' indemnification claims where the record reflects that plaintiff was required to indemnify the defendants against any losses arising out of plaintiff's services and defendants' losses related those services began to incur before defendants breached the agreements. The trial court erred in granting summary judgment as to the amount of damages that plaintiffs owed on the indemnification claim because defendants were not entitled to include its own employees' salaries as expenses and plaintiff disputed the reasonableness of the defendants' claimed damages. The trial court properly denied plaintiff's motion for summary judgment on plaintiff's tortious interference claim where co-defendants have an agency relationship.

What This Ruling Means

**What happened:** This case involved a business dispute between WSB Rehabilitation Services and Central Accounting Systems over contract requirements. For seven years, Central Accounting had been accepting work and payments from WSB without enforcing a specific invoice requirement that was written into their contract. When Central Accounting later tried to claim WSB had breached the contract by not following this invoice rule, WSB sued, arguing that Central Accounting had given up the right to enforce this requirement by ignoring it for so long. **What the court decided:** The court ruled in favor of WSB Rehabilitation Services. The judge found that Central Accounting had "waived" (given up) their right to enforce the invoice requirement because they had ignored it for seven years while continuing to accept payments. Even though the contract contained language saying parties couldn't waive requirements, the court determined this didn't apply since there was no actual failure to perform the work. **Why this matters for workers:** This ruling shows that contracts aren't always enforced exactly as written. If an employer consistently ignores certain contract terms for years while accepting the benefits of the agreement, they may lose the right to suddenly enforce those terms later. This principle could protect workers when employers try to enforce contract provisions they've previously overlooked.

This summary was generated to explain the ruling in plain English and is not legal advice.

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