Davet v. Parks, 2013 Ohio 31

Background

Davet appeals from a trial court summary judgment in favor of the Treasurer, Collinwood & Nottingham Villages Development Corporation, and Lightning Demolition & Construction in a quiet title action arising from a tax-foreclosure chain involving Davet’s property at 793 E. 152nd Street, Cleveland.
Six GLS Capital tax certificates purchased from the Treasurer (1999–2002) underpin foreclosure attempts; four certificates were attached to the GLS Foreclosure complaint and later purportedly voided/reacquired by the Treasurer.
A prior County Foreclosure (May 2006–November 2007) resulted in a Foreclosure Decree in favor of the Treasurer and sheriffs’ sales, followed by forfeiture to the State and a tax-forfeited-land sale in 2008 to Collinwood.
Collinwood obtained record title via an auditor’s deed in 2008; Davet subsequently challenged the Treasurer’s standing, contending GLS Capital purchased the tax certificates prior to the County Foreclosure.
The trial court granted summary judgment to appellees; Davet argued lack of standing and that the Foreclosure Decree was void, with several attempts to intervene or relitigate related issues.
This court reverses and remands to determine the Foreclosure Decree’s validity and whether the Treasurer had standing to initiate the County Foreclosure, noting potential issues with the tax certificates and repurchase/cancellation actions.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Did the Foreclosure Decree voidness defeat timeliness?	Davet: Foreclosure decree void; time-bar not applicable.	Appellees: Valid decree; time-bar applies to other defects.	Foreclosure validity must be determined on remand; voidness not presumed to defeat time-bar.
Did the Treasurer lack standing to foreclose because GLS Capital held the certificates?	Davet: Treasurer lacked standing; GLS Capital ownership postdates foreclosure filing.	Treasurer correctly foreclosed under statute; assignment does not defeat standing.	Requires remand to assess whether Treasurer had valid standing at filing.
Does R.C. 5723.13 bar Davet's claims or exclude void judgments?	Davet: Section 5723.13 does not bar claims tied to void judgments; timely relief possible.	Appellees: 5723.13 generally bars actions after one year unless void.	If Decree void, 5723.13 does not bar; otherwise, timeliness considerations apply.
Should the court take judicial notice of the Treasurer’s sale of tax liens to GLS?	Davet sought judicial notice of transfers affecting standing.	Record sufficiently shows transfers; no judicial notice needed.	Remand to consider the underlying certificates and standing; judicial notice issues not dispositive.
Must the trial court evaluate the validity of the tax certificates before addressing possession/title issues?	Davet: Court should examine whether Treasurer possessed valid certificates at time of foreclosure.	Appellees: Proceed with summary judgment consistent with ownership and possession rules.	On remand, court must assess the certificates’ validity and the Treasurer’s and Collinwood’s rights before other determinations.

Key Cases Cited

Jordan v. 8th Dist. No. 91675, 2009-Ohio-1092 (8th Dist. 2009) (standing to foreclose depends on timing of assignment post-foreclosure)
Fed. Home Loan Mortgage Corp. v. Schwartzwald, 954 N.E.2d 661 (Ohio Supreme Court, 2012) (standing must exist at litigation outset; assignment cannot cure lack of standing)
Rite Rug Co., Inc. v. Wilson, 665 N.E.2d 260 (Ohio App.3d, 1990) (void judgments are not barred by res judicata)
Weir v. Gillespie, 498 N.E.2d 177 (Ohio App.3d, 1985) (void judgments exception to時間-bar concepts)
Rinehart v. Goberdhan, 457 N.E.2d 354 (Ohio App.3d, 1983) (substantial compliance required for tax certificate sales)
Tari v. State, 159 N.E.2d 594 (Ohio, 1927) (historic standing principles in state actions)
Ledyard v. Plymouth Park Tax Serv., LLC, 2012-Ohio-3817 (8th Dist. 2012) (voidness and validity of tax certificates affect foreclosures)