Fifth Third Bank v. Ohio Farmers Ins. Co.
2011 Ohio 1774
Ohio Ct. App.2011Background
- Fifth Third Bank filed foreclosure against 21 lots in Danbury Glen Estates; Ohio Farmers holds a mechanic's lien assigned from Northern Valley Contractors on 46 lots within the development.
- The lien affidavit named the property description for 46 lots and was served on John Hershberger, Hersh Construction, Inc., and Danbury Glen Estates, Inc.; several owners were not named or served.
- A prior Stark County case (2008 CV 3574) resulted in a stipulated judgment that the lien related back to July 29, 2004, but Fifth Third was not a party there.
- The trial court granted Fifth Third’s summary judgment, concluding the February 28, 2007 lien affidavit did not create a lien because not all owners were properly served.
- On appeal, the court held that omissions of some owners do not necessarily invalidate the lien and that service on the initial owners/designee may suffice; the case was reversed and remanded for further proceedings.
- The court did not definitively resolve all issues (res judicata, collateral attack, and admissibility/striking of admissions) and remanded for further proceedings consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does omitting Miller owners from the lien invalidate the lien? | Farmers: lien invalid if owners not named. | Fifth Third: name omissions do not automatically invalidate the lien. | Lien not invalidated by Miller omissions; first assignment sustained. |
| Is the lien invalid for lack of service on subsequent owners despite service on initial owners? | Lien invalid if not served on all owners/designees. | Service under notice of commencement suffices; no full title search required. | Lien not invalidated for lack of service on subsequent owners; second assignment sustained. |
| Should the prior judgment in case 2008 CV 3574 bar challenges to the current lien under res judicata or collateral attack? | Prev. judgment may preclude current challenges. | Collateral attack and res judicata apply; merits depend on prior judgment. | We decline to reach merits on res judicata/collateral attack; remand for further proceedings. |
| Is there privity or other grounds to compel the current action to adhere to the prior final judgment in 2008 CV 3574? | There is privity through the entities involved in the lien. | Not necessary to resolve; remand. | Not reached; remand for further proceedings. |
| Did the trial court err in striking admissions and the stipulation from prior case? | Striking admissions prejudices Farmers. | Admissions/stipulation were properly subject to challenge. | Not reached; remand for further proceedings. |
Key Cases Cited
- Crock Constr. Co. v. Stanley Miller Constr. Co., 66 Ohio St.3d 588 (1993) (strict construction of mechanics' lien requirements)
- Decker Constr. v. Ohio River Pipe Line, LLC, 2007-Ohio-421 (Franklin App. 2007) (failure to name all owners may not defeat lien against named property interest)
- Hoppes Builders & Development Co. v. Hurren Builders, Inc., 118 Ohio App.3d 210 (1996) (incomplete naming in lien affidavits not always fatal to remaining property owners)
- Capital City Lumber Co. v. Ellerbrock, 177 Ohio St. 159 (1964) (naming one owner subjects only that owner's interest to the lien)
- Smiddy v. The Wedding Party, Inc., 30 Ohio St.3d 35 (1987) (summary judgment standard and standard of review)