AMM Peric Property Invest., Inc. v. Cleveland
2014 Ohio 821
Ohio Ct. App.2014Background
- Peric Property Investment, Inc. owned an outbuilding in Cleveland that was damaged by a drunk driver.
- Four months of communication with Cleveland’s building department followed, during which a permit was sought but denied due to uncertainty whether the structure was residential or commercial.
- Three days after the permit denial, the city demolished the outbuilding and an adjacent garage as an alleged emergency danger to life.
- Peric sued for due process violations and negligence; the city counterclaimed for demolition costs.
- The city moved for summary judgment arguing Peric should have exhausted administrative remedies by appealing to the Board of Building Standards and Building Appeals; Peric argued such appeal would be futile because the demolition had occurred before notice.
- The trial court concluded the administrative appeals process provided an adequate post-deprivation remedy and awarded demolition costs to the city; the appellate court reverses on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Peric must exhaust administrative remedies before filing suit | Peric: exhaustion was futile because the board could not award monetary relief. | City: board review provided an adequate post-deprivation remedy. | No, exhaustion not established as adequate; remand for further proceedings. |
| Whether the administrative board could provide monetary relief for a takings claim | Peric sought monetary relief via post-deprivation review. | Board cannot award monetary damages under the ordinances. | Board lacks authority to award monetary damages; exhaustion not satisfied. |
| Whether the emergency demolition without proper notice was properly subject to administrative review | Pre-deprivation notice not required if emergency; board review could correct. | Emergency demolition justified under ordinances; board review unnecessary. | The majority found the administrative remedy inadequate; reformulation not required for this issue. |
Key Cases Cited
- Noernberg v. Brook Park, 63 Ohio St.2d 26 (Ohio 1980) (exhaustion not absolute; futility may excuse)
- Lieux v. Westlake, 154 Ohio St. 412 (Ohio 1951) (administrative remedy considerations for due process)
- Dworning v. Euclid, 119 Ohio St.3d 83 (Ohio 2008) (administrative expertise and record-building before court review)
- Driscoll v. Austintown Assocs., 42 Ohio St.2d 263 (Ohio 1975) (exhaustion and futility concepts in administrative review)
- Nemazee v. Mt. Sinai Med. Ctr., 56 Ohio St.3d 109 (Ohio 1990) (purpose of exhaustion doctrine)
