Tenant Lawsuit Over “Equity” and Right of First Refusal – Looking for Advice

[Paul Schmidt]

Hey everyone,

I bought a duplex in Dayton, Ohio in Sept 2024 that came with an existing tenant. The inherited lease had a strange clause:
- The tenant had a right of first refusal to match any bona fide offer before lease-end, and
- Rent and upkeep expenses (like mowing) would count toward the purchase price if he bought the property.

In Nov 2024, I told the tenant I wouldn't be renewing the lease (ending April 2025). Instead of moving out, he sued me and my LLC (pro se), claiming:
- Breach of contract, promissory estoppel, specific performance, declaratory and injunctive relief,
- Plus $15K in “equity”, arguing that rent and expenses made him a tenant-in-common.

He also claimed a right to renew, though the lease clearly said renewal required mutual agreement. He initially added a Fair Housing claim (based on me seeing menorahs in the unit) but dropped it later.

My attorney filed a motion to dismiss, but it was untouched in court for 5 months. The tenant then amended his complaint, forcing us to refile. Meanwhile, my attorney recommends holding off on eviction until the civil case wraps up, since the eviction would likely be stayed anyway.

Legal fees are around $5K so far, and the tenant’s messages have become harassing, including threats like:
- "If I have to sue you and your Llc, it will tie you up in court for 1 to 2 years. You can avoid this by working with me and being sensible. What are your thoughts on this? You can either be a man and work out a deal or be foolish and spent tons of money and time and lose control of the property all for your ego... You can either sacrifice a little money or let me stay for another year or get tied up in a 1 to 2 year court battle that you can't win."
- "Be a man, Paul, not a weakling. Discuss this with me like an adult. Come to a win win or fail. Maybe you don't get it. I've worked in the law profession for over 20 years. I know my rights and how to protect them. Do the right thing Paul, or face the system."
- "Don't trust your Legal Shield attorney. She is incompetent.... Her law school testing results were awful."

Questions for the group:
1. Would you wait on eviction or file anyway?
2. Any chance of recovering attorney fees in this type of case?
3. Would a counterclaim or declaratory action help clear this up faster?

Appreciate any insight — especially from Ohio landlords or anyone who’s dealt with a tenant turning a lease clause into a lawsuit.

[Remington Lyman]

Quote from @James Wise:

Quote from @Paul Schmidt:

Hey everyone,

I bought a duplex in Dayton, Ohio in Sept 2024 that came with an existing tenant. The inherited lease had a strange clause:
- The tenant had a right of first refusal to match any bona fide offer before lease-end, and
- Rent and upkeep expenses (like mowing) would count toward the purchase price if he bought the property.

In Nov 2024, I told the tenant I wouldn't be renewing the lease (ending April 2025). Instead of moving out, he sued me and my LLC (pro se), claiming:
- Breach of contract, promissory estoppel, specific performance, declaratory and injunctive relief,
- Plus $15K in “equity”, arguing that rent and expenses made him a tenant-in-common.

He also claimed a right to renew, though the lease clearly said renewal required mutual agreement. He initially added a Fair Housing claim (based on me seeing menorahs in the unit) but dropped it later.

My attorney filed a motion to dismiss, but it was untouched in court for 5 months. The tenant then amended his complaint, forcing us to refile. Meanwhile, my attorney recommends holding off on eviction until the civil case wraps up, since the eviction would likely be stayed anyway.

Legal fees are around $5K so far, and the tenant’s messages have become harassing, including threats like:
- "If I have to sue you and your Llc, it will tie you up in court for 1 to 2 years. You can avoid this by working with me and being sensible. What are your thoughts on this? You can either be a man and work out a deal or be foolish and spent tons of money and time and lose control of the property all for your ego... You can either sacrifice a little money or let me stay for another year or get tied up in a 1 to 2 year court battle that you can't win."
- "Be a man, Paul, not a weakling. Discuss this with me like an adult. Come to a win win or fail. Maybe you don't get it. I've worked in the law profession for over 20 years. I know my rights and how to protect them. Do the right thing Paul, or face the system."
- "Don't trust your Legal Shield attorney. She is incompetent.... Her law school testing results were awful."

Questions for the group:
1. Would you wait on eviction or file anyway?
2. Any chance of recovering attorney fees in this type of case?
3. Would a counterclaim or declaratory action help clear this up faster?

Appreciate any insight — especially from Ohio landlords or anyone who’s dealt with a tenant turning a lease clause into a lawsuit.

 I would listen to my attorney.

 Agreed. Listen to your attorney and not as a forum of random people what to do

Thanks for sharing, though. This is a wild one