Therapy Partners of America, Inc. v. Health Providers, Inc

In Therapy Partners of America, Inc. v. Health Providers, Inc. (1998), 129 Ohio App.3d 572, 718 N.E.2d 518, appellant, an Ohio corporation, entered into a contract with appellee, a Florida corporation, where appellee would provide therapy services to appellant's health facilities. By the terms of the agreement, Florida law governed the contract. Appellee filed suit against appellant in a Florida court alleging a breach of contract. Appellant then filed a declaratory judgment action in Franklin County believing that Ohio, rather than Florida, was the appropriate venue for the action between the two parties. On appeal, the Ohio court cited Preferred Risk Ins. Co. v. Gill (1987), 30 Ohio St.3d 108, 111-113, 30 Ohio B. 424, 507 N.E.2d 1118, which stated that a declaratory judgment may be brought before or after a breach of contract. However, because Preferred involved a third party and Therapy was a direct action, the court held that Preferred was distinguishable and denied the declaratory judgment action. Therapy at 576. The court went on to state that appellant had sufficient minimum contacts with Florida and the court in Florida must exhaust its jurisdiction before an Ohio court could have jurisdiction. Id. at 577-78. Because the Florida court still had jurisdiction, appellant's claim was dismissed.