Gasper v. Bank of Am., N.A.
133 N.E.3d 1037
Ohio Ct. App.2019Background
- Linda Gasper and her deceased husband owned a parcel encumbered by two mortgages: one recorded by Bank of America and one by Citibank. Gasper signed only the mortgages; her husband signed the notes.
- After her husband’s death, the probate court found the estate insolvent and ordered the property delivered to Gasper in satisfaction of her allowance of support; the probate entry did not expressly cancel recorded liens.
- Gasper sued Bank of America and Citibank for quiet title and slander of title; she obtained default judgments, Citibank satisfied its judgment, and Bank of America later moved to vacate its default.
- The trial court vacated the default judgment against Bank of America for lack of perfected service, dismissed Gasper’s complaint under Civ.R. 12(B)(6), and denied leave to amend.
- Gasper appealed; the court of appeals affirmed, overruling all three assignments of error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court erred by vacating the default judgment for lack of service | Gasper: default judgment was void for lack of service and vacatur was improper | Bank: vacatur order was proper; appeal of vacatur is untimely | Court: appeal of vacatur untimely; no jurisdiction to review that ruling |
| Whether the trial court abused its discretion by denying leave to amend | Gasper: should be allowed to add Fannie Mae and remove Citibank; amendment timely enough | Bank: motion to amend was untimely, prejudicial, and futile | Court: denial was not an abuse of discretion — undue delay, prejudice, and futility justified refusal |
| Whether the complaint stated claims for quiet title and slander of title | Gasper: probate judgment rendered mortgage invalid, creating a cloud and supporting slander/damages | Bank: probate order did not invalidate mortgage; complaint fails to plead facts showing invalid mortgage or wrongful recording | Court: probate entry did not extinguish lien; allegations were conclusory and contradicted attachments; dismissal under Civ.R. 12(B)(6) was proper |
Key Cases Cited
- The Whitaker-Merrell Co. v. Geupel Constr. Co., Inc., 29 Ohio St.2d 184 (Ohio 1972) (appellate courts must raise jurisdictional defects sua sponte)
- State ex rel. Pendell v. Adams Cty. Bd. of Elections, 40 Ohio St.3d 58 (Ohio 1988) (untimely appeal is a jurisdictional defect)
- United Fairlawn, Inc. v. HPA Partners, 68 Ohio App.3d 777 (9th Dist. 1990) (motions to vacate based on common-law grounds are final appealable orders)
- Catanzarite & Co. v. Roof, 8 Ohio App.3d 282 (9th Dist. 1983) (default judgment is final and subject to vacatur only when it decides liability and damages)
- O'Brien v. Univ. Community Tenants Union, Inc., 42 Ohio St.2d 242 (Ohio 1975) (standard for dismissing for failure to state a claim)
- Mitchell v. Lawson Milk Co., 40 Ohio St.3d 190 (Ohio 1988) (pleading allegations must be presumed true and reasonable inferences drawn for nonmoving party)
- Hoover v. Sumlin, 12 Ohio St.3d 1 (Ohio 1984) (Civ.R. 15(A) favors liberal amendment absent bad faith, undue delay, or prejudice)