Grand Arcade Condominium Owners' Assn., Inc. v. GA 110, L.L.C.
2017 Ohio 8736
| Ohio Ct. App. | 2017Background
- Association manages 99 condominium units; GA 110 owns unit #110 and is subject to the condominium Declaration, Bylaws, and Rules.
- A 2013 window-replacement assessment was levied; Grand Arcade, Ltd. (GA 110’s agent/related owner) disputed liability in a 2014 declaratory action and lost on summary judgment; the appellate court affirmed that Grand Arcade, Ltd. owed its proportional share.
- Association recorded a Certificate of Lien on GA 110’s unit (Aug. 19, 2016) and filed a foreclosure complaint to enforce the assessment (Oct. 24, 2016).
- Association moved to appoint a receiver to collect rents/fees during the foreclosure; trial court appointed a receiver limited to collecting current and future rental income, fees, and assessments but not past-due amounts (Mar. 27, 2017).
- GA 110 appealed, arguing (1) appointment occurred without an evidentiary hearing and (2) the receiver’s authority (to collect fees/assessments) exceeded R.C. 5311.18. Trial court’s appointment was stayed pending bond; magistrate set bond amount and trial court adopted it.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a receiver may be appointed without an evidentiary hearing | Association: statute (R.C. 5311.18(B)(2)) entitles lienholder to a receiver; briefs suffice | GA 110: trial court erred by appointing without evidentiary hearing; Poindexter requires evidentiary support | Court: No statutory hearing requirement under R.C. 5311.18; appointment proper based on briefs and record |
| Whether receiver may collect fees and assessments (in addition to rent) during foreclosure | Association: reasonable rental can include fees/assessments; court has discretion to define "reasonable" | GA 110: statute authorizes receiver only to collect "rental;" fees/assessments exceed statute's scope | Court: Trial court reasonably construed "reasonable rental" to include current/future fees and assessments; receiver’s authority properly limited (no collection of past-due amounts) |
Key Cases Cited
- Jamestown Village Condominium Owners’ Assn. v. Market Media Research, 96 Ohio App.3d 678 (8th Dist. 1994) (R.C. 5311.18(B)(2) construed to create entitlement to receiver in condominium foreclosure)
- State ex rel. Celebrezze v. Gibbs, 60 Ohio St.3d 69 (Ohio 1991) (standard for appellate review of trial-court discretionary decisions)
- In re Jane Doe 1, 57 Ohio St.3d 135 (Ohio 1991) (abuse-of-discretion defined as more than error of law; requires unreasonable or arbitrary action)