2020 Ohio 4334
Ohio Ct. App.2020Background
- Appellees Brenda Jeter and Paul Moore, as co-executors of Starlin Jackson's estate, filed a complaint for concealment of assets alleging appellant Brandon Jarrett-Jackson possessed estate real and personal property.
- Appellant asserted transfers of seven parcels to Cold Water Capital, LLC (of which he was sole member/authorized representative) were authorized by the decedent and therefore not estate assets; he also alleged mismanagement claims against co-executor Moore.
- After a November 5, 2018 trial, the probate court found appellant conveyed and possessed estate assets and ordered reconveyance of seven parcels, production of tenant names and leases, turnover of rents, and surrender of City Service Taxi assets within 14 days.
- Appellant failed to comply; appellees moved for contempt. The court found contempt, set a purge condition, and later (July 2, 2019) sentenced appellant to 30 days in jail and a $250 fine with a purge deadline to provide tenant information and rent itemization.
- Appellant appealed pro se asserting improper service, erroneous personal liability for LLC assets, improper evidence/admissions, and overreach in ordering transfer of LLC/real property. The Sixth District affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal liability for LLC assets | Appellees: Appellant personally committed fraudulent transfers and must reconvey estate assets | Appellant: Transfers were to Cold Water Capital, LLC; as an LLC member he is not personally liable | Court: Transfers were found to be by appellant (not shielded by LLC); appellant’s argument fails |
| Adequacy of service/notice of probate proceedings | Appellees: Notice and proceedings were proper; appellant participated | Appellant: Notice of hearing was improperly served and received late | Court: Underlying probate record not before this court; R.C. 119.07 inapplicable; appellant’s participation undermines the claim |
| Admission/sufficiency of evidence at hearings | Appellees: Evidence supported contempt finding | Appellant: Evidence improperly admitted; trial error | Court: No transcript of hearing on contempt; must presume regularity and cannot review alleged errors; affirmed |
| Contempt sanction and purge terms | Appellees: Enforcement via contempt appropriate to recover estate assets | Appellant: Contempt and sanctions improper due to above errors | Court: Contempt decision reviewed for abuse of discretion and no abuse found; sanctions and purge condition upheld |
Key Cases Cited
- Siegel Seaman v. Sloan, 60 N.E.3d 1270 (6th Dist. 2016) (contempt-review standard and appellate treatment)
- Blakemore v. Blakemore, 450 N.E.2d 1140 (Ohio 1983) (definition of abuse of discretion)
- Dover Philadelphia Heating & Cooling, Inc. v. SJS Restaurants, Ltd., 923 N.E.2d 220 (5th Dist. 2009) (general principle that LLC members are not ordinarily personally liable for company debts)
- State v. Sweet, 650 N.E.2d 450 (Ohio 1995) (where record is incomplete, appellate court must presume regularity of proceedings)