2012 Ohio 1151
Ohio Ct. App.2012Background
- Foreclosure action filed by JPMorgan Chase Bank, N.A. against property at 10808 Akron-Canfield Road, Mahoning County, Ohio.
- American Tax Funding LLC (ATF) held delinquent tax certificates on the property purchased from the Mahoning County Treasurer under R.C. 5721.33.
- JPM Chase did not name ATF as a party in the foreclosure action.
- ATF moved to intervene multiple times (April 19, 2006; refiled July 28, 2010); magistrate overruled on September 15, 2010; trial court later denied motions to set aside.
- ATF sought reversal arguing it held a superior lien as the tax certificate holder and thus had a right to intervene in the foreclosure.
- The trial court’s denial of ATF’s intervention was reversed by the Seventh District Court of Appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ATF had a right to intervene as a lienholder | ATF argues it is a lienholder due to delinquent tax certificates and must be allowed to intervene. | JPM Chase/defendant argues no right to intervene without specific statutory basis for a non-party to intervene. | Yes; lienholder right to intervene; trial court abused its discretion. |
| Whether denial of intervention was an abuse of discretion | Abuse because ATF, as superior lienholder, should be allowed to protect its interest. | Denial was proper absent other controlling factors or prejudice to JPM Chase. | Yes; denial was an abuse of discretion; judgment reversed. |
Key Cases Cited
- Likover v. Cleveland, 60 Ohio App.2d 154 (Ohio App.2d 1978) (finality of denial of intervention as appealable)
- Fairview Gen. Hosp. v. Fletcher, 69 Ohio App.3d 827 (Ohio App.3d 1990) (intervention standards in appellate review)
- State ex rel. Watkins v. Eighth Dist. Court of Appeals, 82 Ohio St.3d 532 (Ohio 1998) (Civ.R. 24 liberal construction for intervention)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (Ohio 1983) (abuse of discretion standard for appellate review)
- Rokakis v. Martin, 180 Ohio App.3d 696 (2009-Ohio-369) (lienholders may intervene in foreclosure)
- McKesson Medical-Surgical Minnesota, Inc. v. Medico Med. Equip. & Supplies, 8th Dist. No. 84912, 2005-Ohio-2325 (Ohio 2005) (lienholder rights in foreclosure context)