Dyczkiewycz v. Tremont Ridge Phase 1 Ltd. Partnership
981 N.E.2d 941
Ohio Ct. App.2012Background
- Plaintiffs-petitioners Peter and Jackie Dyczkiewcz sought to enforce an arbitration award against Tremont Ridge Phase 1 Ltd. Partnership for defective construction; an arbitrator awarded about $439,167.89 including fees in 2008.
- Trial court initially denied a receivership and the appellate court later reversed, finding an extraordinary situation justifying a receiver.
- On remand, the receiver reported no assets at first but later identified two potential assets: a devalued parcel and a $253,000 receivable from Sutton Builders; the receiver also showed related entities’ negative net worth.
- The receiver proposed transferring assets to plaintiffs or allowing the plaintiffs to pursue claims, but Tremont Ridge opposed, citing potential conflicts and lack of assets.
- In 2011–2012, the receiver filed multiple reports; the court ultimately terminated the receivership and ordered the plaintiffs to pay the receiver’s fees, leading to the present appeal.
- The court ultimately affirmed the termination in part, reversed in part, and remanded for equal division of the receiver’s fees between the parties.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Assignment of receiver’s rights to plaintiffs | Dyczkiewyczs contend assets exist and should be assigned | Assignment would createconflicts and improper control by plaintiffs | Assignments denied; rights not transferred |
| Recovery of receiver’s fees | Plaintiffs should bear the receiver’s fees | Fees proper due to receivership administration | Fees improperly assigned to plaintiffs; remand to split equally between parties |
| Termination of the receivership | Termination deprives plaintiffs of relief | Discretionary end of receivership appropriate given lack of assets | Termination within court’s discretion; affirmed in part, reversed in part |
Key Cases Cited
- Richey v. Brett, 112 Ohio St. 582 (1925) (special-circumstance liability for receiver fees not present; fees payable from corpus)
- Milo v. Curtis, 100 Ohio App.3d 1 (1994) (abuse of discretion standard for receivership termination)