Home S. & L. Co. v. Avery Place, L.L.C.
2011 Ohio 4525
Ohio Ct. App.2011Background
- Home Savings & Loan Company and Avery Place, LLC entered into two commercial loans for condominium development; Moro personally guaranteed one loan.
- Appellee obtained a cognovit judgment in the amount of $2,846,574.20 plus interest, costs, and fees after default on the loans.
- Appellants first sought relief from the cognovit judgment under Civ.R. 60(B) in October 2009; the trial court denied after an evidentiary hearing in February 2010.
- Appellants filed a second Civ.R. 60(B) motion on August 6, 2010 claiming new meritorious defenses of illegality (Cease and Desist Order) and inaccuracy of disbursement; appellee moved to strike.
- The trial court denied the second motion on November 2, 2010, and appellants sought Civ.R. 52 findings of fact and conclusions of law, which were denied on January 12, 2011.
- On February 11, 2011, appellants appealed the November 2, 2010 and January 12, 2011 rulings; the court of appeals affirmed the trial court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the second Civ.R. 60(B) motion was barred by res judicata. | Appellee contends the second motion raised defenses available at first motion. | Appellants contend new meritorious defenses justified relief. | Yes; second motion barred by res judicata. |
| Whether Civ.R. 52 findings were required in a Civ.R. 60(B) proceeding. | Findings were unnecessary; the court ruled on law and no factual dispute existed. | Findings should be issued when factual issues are resolved in a Civ.R. 60(B) motion. | Civ.R. 52 findings not required. |
Key Cases Cited
- GTE Automatic Electric, Inc. v. ARC Industries, Inc., 47 Ohio St.2d 146 (1976) (meritorious defense requirement for Civ.R. 60(B) relief; modified standard for cognovit judgments)
- Grava v. Parkman Twp., 73 Ohio St.3d 379 (1995) (res judicata considerations for related actions)
- Harris v. Anderson, 109 Ohio St.3d 101 (2006) (multiple Civ.R. 60(B) motions and res judicata limits)
- First National Bank v. Netherton, 2004-Ohio-7284 (4th Dist. 2004) (case-by-case application of Civ.R. 52 to Civ.R. 60(B) proceedings)
- Griffey v. Rajan, 33 Ohio St.3d 75 (1987) (abuse of discretion standard for Civ.R. 60(B) relief)
- Beck-Durell Creative Dept., Inc. v. Imaging Power, Inc., 2002-Ohio-5908 (2002) (res judicata considerations in successive Civ.R. 60(B) motions)