2018 Ohio 2813
Ohio Ct. App.2018Background
- Citizens Bank obtained a foreclosure decree on residential property after the borrower defaulted; the property was appraised at $90,000.
- First sheriff’s sale (with statutory minimum bid of $60,000 under R.C. 2329.20) produced no bids; a second auction was scheduled and advertised “without regard to the minimum bid” per R.C. 2329.52(B).
- At the second auction the property sold to a third-party purchaser for $5,000.
- The bank filed a timely notice of redemption under R.C. 2329.311(A), depositing the purchase price with the clerk within fourteen days and requesting that the court treat the bank as the successful purchaser.
- The trial court denied redemption, reasoning R.C. 2329.311 applied only when a sale had a set minimum bid, and confirmed the sale to the third-party purchaser.
- The bank appealed; the appellate court reviewed statutory interpretation de novo and reversed, holding R.C. 2329.311(A) covers redemption after the second (no-set-minimum) auction governed by R.C. 2329.52(B).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether R.C. 2329.311(A) permits redemption by the judgment creditor/first lienholder following a second auction held “without regard to the minimum bid” under R.C. 2329.52(B). | Bank: 2329.311(A) applies to auctions where the minimum bid is determined pursuant to R.C. 2329.52(B) (i.e., the second auction without a statutory 2/3 minimum), so the bank timely redeemed. | Purchaser: 2329.311(A) applies only where a positive set minimum bid exists (not to a sale “without regard to the minimum bid”), so no redemption right here. | Court: Reversed trial court; statutory text incorporates 2329.52(B) so redemption right exists after the second auction conducted without the R.C. 2329.20 minimum; bank’s redemption was valid. |
Key Cases Cited
- Proctor v. Kardassilaris, 873 N.E.2d 872 (Ohio 2007) (plain-language statutory interpretation; unambiguous statutes applied as written)
- General Motors Corp. v. Kosydar, 310 N.E.2d 154 (Ohio 1974) (when one statute cites another, the cited statute is incorporated by reference)
- State ex rel. Carna v. Teays Valley Local School Dist. Bd. of Edn., 967 N.E.2d 193 (Ohio 2012) (preserve significance of every word/phrase in statutory text)
- Diley Ridge Med. Ctr. v. Fairfield Cty. Bd. of Revision, 22 N.E.3d 1072 (Ohio 2014) (de novo review of legal/statutory issues)
- State ex rel. Clay v. Cuyahoga Cty. Med. Examiner's Office, 94 N.E.3d 498 (Ohio 2017) (ambiguity standard; apply in pari materia only when statute is ambiguous)