Cuyahoga County Board of Commissioners v. Maloof Properties, Ltd.
968 N.E.2d 602
Ohio Ct. App.2012Background
- Kehoe sought a charging lien on funds Maloof received from an appropriation, but the trial court distributed funds to Ohio National Life instead.
- Maloof Properties owned the parcel; Ohio National Life held a mortgage and an assignment of proceeds recorded in 2006.
- Kehoe prepared for trial in 2008, withdrew after day one due to an ethical issue, and successor counsel used Kehoe’s materials.
- A July 2009 trial resulted in a judgment for appropriation value; Kehoe filed a charging lien on the proceeds.
- In February 2011, Ohio National Life moved for distribution to itself as owner under its mortgage; the court awarded it the remaining funds.
- Kehoe argued he was entitled to priority as the lienholder and that he did not receive notice of the distribution hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the distribution violated Kehoe's charging lien | Kehoe contributed to the judgment and provided notice of the lien | Ohio National Life owns the funds under its mortgage and was prioritized; Kehoe lacked notice | Trial court abused discretion; Kehoe entitled to hearing on lien and priority over creditors |
| Whether notice defects invalidated the distribution to Ohio National Life | Kehoe was not given proper notice and could seek relief | Ohio National Life’s rights were superior and Kehoe delayed seeking his lien | Court reversed; remanded for new hearing on lien priority and proper notice |
Key Cases Cited
- Cohen v. Goldberger, 109 Ohio St. 22 (1923) (attorney lien rests on equity to be paid from judgment)
- Petty v. Kroger Food & Pharmacy, 165 Ohio App.3d 16 (10th Dist. 2005) (charging lien priority; lien upon proceeds)
- Hill Hardman Oldfield, L.L.C. v. Gilbert, 190 Ohio App.3d 743 (8th Dist. 2010) (charges lien standards and priorities)
- In re Simms Constr. Serv., Co., Inc., 311 B.R. 479 (6th Cir. 2004) (notice to judgment debtor; enforceability of lien)
- Exact Software NA v. Infocon Sys., Inc., 2011 WL 5008421 (N.D. Ohio 2011) (supporting priority and lien consideration)