2013 Ohio 1796
Ohio Ct. App.2013Background
- Foreclosure action against Haddad based on two tax certificates for 1763 E. 27 St., Cleveland, OH; Haddad’s addresses listed as 1763 E. 77th St. and 1768 E. 27th St.; service to Haddad at these addresses disputed.
- Lakeview’s service attempts initially failed; later service at 3155 W. 33rd St., which Haddad says occurred after dismissal.
- Lakeview obtained a preliminary judicial report (Aug. 30, 2011) and sought appointment of a receiver and transfer to the commercial docket in Oct. 2011; Haddad contends she was not served with these motions.
- Haddad learned of the action on Sept. 22, 2011; she paid discounted legal fees and redeemed the tax certificates in Oct. 2011.
- Haddad moved for sanctions (Nov. 3, 2011) and renewed after dismissal; hearings were held but recessed and not resumed; Lakeview sought to strike Haddad’s supplemental sanction motion.
- The trial court granted Lakeview’s motions in limine, denied sanctions, and remanded post-dismissal issues; Haddad appeals, arguing trial court erred in denying sanctions and striking a supplemental motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court should have held an evidentiary hearing on frivolous conduct. | Haddad argues there is substantial evidence of frivolous conduct. | Lakeview contends no hearing was required given the record. | Yes; the court erred by not providing a complete sanctions hearing. |
| Whether the court properly denied sanctions under Civ.R. 11 and R.C. 2323.51. | Haddad asserts willful or frivolous conduct by appellees warrants sanctions. | Appellees contend no willful violations proven and no need for sanctions. | Sanctions hearing required; issue remanded for full proceedings. |
| Whether the trial court erred in striking Haddad's supplemental sanctions motion. | Supplemental evidence should be considered; delay by appellees justified its filing. | Striking the supplemental motion was proper as untimely. | Sustained; remand for complete sanctions consideration. |
Key Cases Cited
- ABN AMRO Mortgage Group, Inc. v. Evans, 2011-Ohio-5654 (8th Dist. 2011) (trial court’s sanctions discretion under Civ.R. 11 and R.C. 2323.51)
- Taylor v. Franklin Blvd. Nursing Home, Inc., 112 Ohio App.3d 27 (8th Dist. 1996) (discretion in imposing sanctions for frivolous conduct)
- Pisani v. Pisani, 101 Ohio App.3d 83 (8th Dist. 1995) (hearing not required before denying sanctions where lack of merit shown)
- Bikkani v. Lee, 2008-Ohio-3130 (8th Dist. 2008) (abuses of discretion if sanctions denied without a hearing where record shows frivolous conduct)
- Edwards v. Lopez, 2013-Ohio-571 (8th Dist. 2013) (supplemental sanctions motion; law of the case considerations)