Escape Enterprises, Ltd. v. Gosh Enterprises, Inc

In Escape Enterprises, Ltd. v. Gosh Enterprises, Inc., 10th Dist. Nos. 04AP-834, 04AP-857, 2005 Ohio 2637, the Tenth District Court of Appeals stated that it was "unaware of any Ohio cases applying an instrumentality theory of lender liability." However, the appellate court acknowledged the trial court's finding in that case, based on Krivo Ind. Supply Co. v. National Distillers and Chemical Corp, that a lender "stepped out of the traditional role of lender protecting its collateral, and subjected itself to potential liability" under the instrumentality rule when it took over the day-to-day management of certain franchise restaurants. Id., P 39-40.