2021 Ohio 3756
Ohio Ct. App.2021Background
- Montgomery County Treasurer filed a tax-foreclosure action under R.C. 5721.18/19 against Islamic Center of Peace for multiple Dayton parcels, claiming a first and best lien of $82,126.79.
- Trial court entered a Second Amended Final Judgment ordering sale for not less than $84,126.79 (included $2,000 costs).
- Property sold at sheriff’s sale for $146,000. Treasurer moved to confirm sale, transfer deed, and distribute proceeds; Center filed a Motion to Recover Excess Proceeds claiming entitlement to proceeds above $84,126.79.
- Trial court confirmed the sale and ordered distribution consistent with R.C. 5721.19(D): costs, sheriff deed fee, DTAC fund deposit, then payment of taxes and related amounts, resulting in $133,795.10 to the Treasurer.
- Center appealed, arguing the Treasurer was limited to the judgment amount (waiver/equitable estoppel) and that permitting recovery of amounts above the judgment violated due process.
Issues
| Issue | Plaintiff's Argument (Bradley) | Defendant's Argument (Islamic Ctr.) | Held |
|---|---|---|---|
| Whether the Treasurer was limited to the judgment amount when distributing sale proceeds | R.C. 5721.19(D)(3) permits the Treasurer to collect all unpaid taxes, including those accruing up to deed transfer; distribution followed the statute | The Treasurer elected sale at no less than $84,126.79 and thereby waived or is estopped from collecting more; excess proceeds belong to Center | Court held Treasurer may collect amounts due at deed transfer per R.C. 5721.19(D); equitable estoppel/waiver claim fails (reliance was unreasonable) |
| Whether the Center’s due process rights were violated by confirming sale and allowing collection above the judgment amount | Center had notice and opportunity to be heard; Motion to Recover Excess Proceeds was filed before confirmation | Center claims it lacked a meaningful opportunity to preserve rights and should have been paid excess proceeds after judgment satisfaction | Court rejected due process claim: Center had notice and chance to litigate; no procedural violation |
Key Cases Cited
- Shampton v. City of Springboro, 786 N.E.2d 883 (Ohio 2003) (standards for equitable estoppel and reliance; reliance must be reasonable)
- State Farm Mut. Auto. Ins. Co. v. Ingle, 904 N.E.2d 934 (Ohio Ct. App. 2008) (waiver requires intentional relinquishment of a known right)
- Rice v. Islamic Ctr. of Peace, Inc., 142 N.E.3d 156 (Ohio Ct. App. 2019) (prior appellate decision in the same dispute)
- Lathrop Co. v. Toledo, 214 N.E.2d 408 (Ohio 1966) (public-agency authority and consequences of failing to ascertain it)
- Heckler v. Community Health Serv., 467 U.S. 51 (U.S. 1984) (principles on reliance for equitable estoppel against government)
- Mathews v. Eldridge, 424 U.S. 319 (U.S. 1976) (due-process test: meaningful opportunity to be heard)