Hope Academy Broadway Campus v. White Hat Mgmt., LLC

This contract dispute was a portion of ongoing litigation initiated by the governing Boards of ten Cleveland community schools (“the schools”). Defendants were two private for-profit companies and ten subsidiary companies that operated and managed the schools (collectively, “White Hat”) pursuant to contracts with each school. The State Board of Education was also named in the complaint. The governing authorities of the schools filed suit challenging the operation of a buy-back provision of the contracts stating that the schools could retain personal property owned and used by White Hat in the schools’ daily operations after termination of the contracts only by paying certain payments to the management companies. The court of appeals affirmed the trial court’s judgment in favor of White Hat. The Supreme Court affirmed the judgment of the court of appeals to the extent that it held that the buy-back provision of the contracts was enforceable and that the schools were obligated under that provision to pay for the personal property purchased by White Hat as described in the contract. Remanded to the trial court for an inventory of the property at issue and its disposition according to the contracts. View "Hope Academy Broadway Campus v. White Hat Mgmt., LLC" on Justia Law