Conlan v. Ag-Renu at Versailles, Inc.
2017 Ohio 4321
| Ohio Ct. App. | 2017Background
- Ag-Renu at Versailles, Inc. owned real property; John and Carol Conlan were company officers and claimed unpaid wages evidenced by promissory notes secured by mortgages on Ag‑Renu property.
- Multiple third‑party mortgages/claims also existed tied to a proposed purchase (AET) that never closed.
- The Conlans sued to foreclose their mortgages and recover unpaid wages; several defendants admitted allegations and joined the prayer.
- A default/consent foreclosure entry was entered against Ag‑Renu, later vacated when Ag‑Renu obtained Civ.R. 60(B) relief; Ag‑Renu then counterclaimed against the Conlans (breach of fiduciary duty, conversion, slander of title, fraud) and sought to quiet title.
- Parties read a settlement into the record March 31, 2016 under which the Conlans agreed to buy the property, but the sale never closed; the court entered a scheduling order and set trial for August 23, 2016.
- At the August 23 trial only Ag‑Renu appeared and proffered evidence; the trial court declared the settlement invalid, canceled the Conlans’ liens, quieted title in Ag‑Renu, and awarded Ag‑Renu attorney fees. The trial court did not resolve Ag‑Renu’s remaining monetary counterclaims against the Conlans.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court properly dismissed Conlans’ claims with prejudice after their nonappearance | Conlans: dismissal with prejudice was improper without notice and evidence; they were unaware they had to appear | Ag‑Renu: Conlans breached settlement and failed to appear, justifying relief and cancellation of liens | Court did not decide on merits of this assignment because appeal was dismissed for lack of final order |
| Whether judgment in favor of Ag‑Renu was proper absent live evidence (proffer only) | Conlans: an ex parte trial requires proof of claims at trial; proffer is insufficient | Ag‑Renu: proffer established grounds to quiet title and recover fees (claimed slander of title) | Court noted proffer is not equivalent to evidence but again did not rule on merits due to interlocutory posture |
| Whether mortgages/liens issued by Conlans (and certain investor liens) were valid | Conlans: notes/mortgages secured unpaid wages and loans, so were valid liens | Ag‑Renu: John lacked authority; transactions were self‑dealing or lacked consideration (investor liens specious) | Trial court declared liens invalid, cancelled of record, and quieted title in Ag‑Renu — but appellate court treated judgment as nonfinal because other counterclaims remained pending |
| Whether appeal was timely and the order appealable | Conlans: appealed trial court’s adverse rulings | Ag‑Renu: (implicit) judgment resolved claims and was appealable | Court: August 29 order was not a final appealable order because Ag‑Renu’s additional counterclaims against the Conlans remained unresolved and no Civ.R. 54(B) certification was entered; appeal dismissed for lack of final order |
Key Cases Cited
- Ohio Valley Radiology Associates, Inc. v. Ohio Valley Hospital Assn., 28 Ohio St.3d 118, 502 N.E.2d 599 (1986) (non‑appearing defending party does not automatically forfeit trial; plaintiff must present evidence in an ex parte trial rather than obtain a default)