Perspectives - September/October 2015

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In a decision in which no opinion commanded a majority, the Ohio Supreme Court sided with a private entity — a charter school operator — in a dispute over the ownership of personal property purchased by the operator with funds paid to the operator pursuant to its contracts with several charter schools for the operation of the schools. The funds were originally received by the schools as per-student funding from the State. Hope Academy Broadway Campus v. White Hat Mgt., L.L.C., 2015-Ohio- 3716. The contracts between the schools and the operator required the operator to purchase all furniture, computers, books, and other equipment, and further provided that, upon termination of the contract the property would become property of the schools only if they made payments to buy it back from the operator. A majority of the Court failed to agree on a rationale for its decision, but did hold that the buy-back provision was enforceable. 2015-Ohio- 3716 at ¶48.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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