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2016 Ohio 2973
Ohio Ct. App.
2016
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Background

  • Appellee Capital Income and Growth Fund, LLC bought a property at sheriff’s sale and filed a forcible entry and detainer (eviction) action against occupant Charles Hanson.
  • Appellee served notices to vacate on Hanson on November 13, 2014 and February 19, 2015, directing him to leave by February 24, 2015.
  • At a hearing the parties discussed a settlement; Hanson contends they agreed he could stay while he sought financing and that he paid $1,000 and allowed an appraisal.
  • A consent judgment entry was filed April 14, 2015 awarding possession to appellee, staying a writ of restitution for 30 days conditioned on Hanson paying $1,000 by April 14.
  • Hanson claims he was fraudulently induced into signing the consent judgment (he thought it created a new rental/purchase arrangement), that he never received a required 90‑day foreclosure occupant notice, and that appellee failed to prove ownership.
  • Hanson appealed from the April 14, 2015 consent judgment; the Sixth District consolidated his claims and considered whether they were reviewable on appeal.

Issues

Issue Plaintiff's Argument (Hanson) Defendant's Argument (Capital Income) Held
Whether lack of service of a 90‑day foreclosure occupant notice invalidates the eviction Hanson: No proper service of the November 13, 2014 notice; eviction should be dismissed; due process violated Appellee: Notice was served as alleged; underlying possession judgment stands Court did not reach merits of notice claim on appeal because challenge concerned matters outside the appellate record and was not preserved in the consent decree context; assignments not well‑taken
Whether the April 14, 2015 consent judgment was fraudulently induced (Hanson says he thought a new rental/purchase agreement was formed) Hanson: He was induced to sign; parties had an oral settlement creating a new rental/agreement; appellee acted in bad faith Appellee: The consent judgment resolved the eviction claim; it is a binding contract; no reservation to appeal Court: Fraud-in-the-inducement claim involves extrinsic evidence and must be pursued via Civ.R. 60(B) to seek relief from the consent judgment; not reviewable on direct appeal
Whether appellee had to prove ownership at the hearing before eviction could proceed Hanson: Requested appellee prove ownership to show authority to evict Appellee: Possession award in consent judgment resolved the claim Court: Issue is part of merits of the eviction resolved by consent judgment and not reviewable on appeal absent a reserved right or jurisdictional challenge; assignments not well‑taken

Key Cases Cited

  • Sponseller v. Sponseller, 110 Ohio St. 395 (1924) (consent judgments implicating jurisdictional questions are reviewable)
  • Berry v. Javitch, Block & Rathbone, L.L.P., 940 N.E.2d 1265 (Ohio 2010) (fraudulent inducement of a consent judgment is a Civ.R. 60(B) matter; relief must be sought in trial court)
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Case Details

Case Name: Capital Income & Growth Fund, L.L.C. v. Hanson
Court Name: Ohio Court of Appeals
Date Published: May 13, 2016
Citations: 2016 Ohio 2973; L-15-1163, L-15-1153
Docket Number: L-15-1163, L-15-1153
Court Abbreviation: Ohio Ct. App.
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