FirstMerit Bank, N.A. v. Ashland Lakes, L.L.C.
2012 Ohio 549
Ohio Ct. App.2012Background
- Ashland Lakes signed a promissory note to First Merit Bank secured by a mortgage on about 130 acres in Ashland County.
- Bankforeclosed; complaint filed January 12, 2009; Bank entered into 2009 standstill/forbearance agreements extending remedies.
- Default occurred by June 30, 2010; foreclosure decree issued August 20, 2010; sale of the property authorized and scheduled as five parcels.
- Bank appointed a licensed auctioneer; sale postponed after bankruptcy petition filed December 14, 2010 and dismissed January 6, 2011; auction rescheduled to March 9, 2011.
- Ashland Lakes pursued possible settlement funding in early 2011, including a proposed forbearance agreement; proposed commitment from Westfield Bank failed due to contingencies.
- Auction proceeded March 9, 2011; four of five parcels sold; Bank moved to confirm; Ashland Lakes opposed, seeking to set aside sale and for evidentiary hearing on alleged oral settlement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of an oral settlement requiring an evidentiary hearing | Ashland Lakes contends an oral settlement existed obligating court to hold an evidentiary hearing. | First Merit argues no enforceable oral settlement; terms remained disputed. | No evidentiary hearing required; no settlement proved. |
| Apparent defects in appraisals requiring reversal of sale | Ashland Lakes claims appraisals were defective and biased. | Bank contends appraisals were proper and complied with statutory standards. | Trial court did not abuse discretion; appraisals were in substantial conformity; no prejudice shown. |
Key Cases Cited
- Rulli v. Fan Co., 79 Ohio St.3d 374 (1997) (settlement disputes require evidentiary hearing when terms are disputed)
- Mack v. Polson Rubber Co., 14 Ohio St.3d 34 (1984) (court not required to hold hearing where no settlement exists)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (abuse of discretion standard for trial court rulings)
- Cincinnati Bar Assn. v. Massengale, 58 Ohio St.3d 121 (1991) (definition of clear and convincing evidence; standard for appraisal challenge)