Moyer v. Abbey Credit Union, Inc.
2020 Ohio 5410
Ohio Ct. App.2020Background
- Decedent Shirlee Garringer had an Abbey Credit Union account with a payable-on-death (POD) beneficiary; Abbey mistakenly closed the account and issued a cashier’s check payable to the Estate of Shirlee Garringer.
- Executor Juda Moyer opened estate checking and savings accounts at Abbey and deposited the $26,239.97 cashier’s check on July 2, 2018; some other estate funds were also deposited from other institutions.
- Abbey later discovered the POD designation and, on September 9, 2018, debited/transferred (a “charge-back”) the $26,239.97 from the estate accounts.
- Moyer sued in probate court asserting breach of contract, conversion, negligence under R.C. 1304.03, and violation of R.C. 2117.06; Moyer moved for judgment on the pleadings, which the probate court granted in her favor on liability but did not resolve damages.
- On remand the probate court ordered Abbey to return/deposit $26,239.97; the appellate court held Abbey wrongly exercised setoff/charge-back but reversed the damages award and remanded for proof of damages because the estate was not legally entitled to the funds and Moyer offered no evidence of detrimental reliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was Civ.R. 12(C) motion by plaintiff improper? | Moyer: Civ.R.12(C) permits “any party” to move; procedure was acceptable. | Abbey: 12(C) is typically defensive; plaintiff shouldn’t obtain judgment on the pleadings. | Court: 12(C) may be used by any party; plaintiff’s motion was permissible. |
| Was Abbey entitled to setoff/charge funds from estate accounts? | Moyer: No mutual debtor-creditor relationship; setoff/charge-back improper. | Abbey: Entitled to self-help setoff or charge-back to correct mistake/recoup money paid to wrong party. | Court: No setoff — mutuality of obligation lacking; Abbey could not lawfully set off against estate accounts. |
| Could Abbey rely on R.C. 1304.24(A) or money-paid-by-mistake to recover? | Moyer: Statutory charge-back under R.C.1304.24(A) inapplicable; payment by cashier’s check was final. | Abbey: Its action was recovery of money paid by mistake (common law) rather than a statutory bounced-check charge-back. | Court: Whether R.C.1304.24 applied was unresolved, but statutory and common-law remedies coexist; Abbey’s self-help withdrawal was not justified without proving entitlement. |
| Are damages properly awarded to Moyer for Abbey’s withdrawal? | Moyer: She detrimentally relied on the funds to pay estate expenses and is entitled to the amount taken. | Abbey: Estate never had legal entitlement to the funds; any recovery requires proof of detrimental reliance and damages. | Court: Abbey wrongfully debited the accounts, but Moyer failed to present evidence of detrimental reliance or actual damages; judgment on the pleadings as to damages was improper — remand for hearing on damages. |
Key Cases Cited
- Daugherty v. Central Trust Co. of N.E. Ohio, 28 Ohio St.3d 441 (bank setoff arises from debtor–creditor contractual relationship)
- Walter v. National City Bank of Cleveland, 42 Ohio St.2d 524 (setoff is an equitable self‑help remedy; maturity of debt is relevant)
- Citizens Federal Bank v. Zierolf, 119 Ohio App.3d 46 (three prerequisites for bank setoff: mutuality, ownership, ripeness)
- Hester v. Dwivedi, 89 Ohio St.3d 575 (standard for granting judgment on the pleadings)
- State ex rel. Midwest Pride IV, Inc. v. Pontious, 75 Ohio St.3d 565 (clarifies Civ.R. 12(C) and pleading standards)
- Firestone Tire & Rubber Co. v. Central Natl. Bank of Cleveland, 159 Ohio St. 423 (money paid by mistake may be recovered unless payee detrimentally changed position)
- WesBanco Bank, Inc. v. Smoked Ribs, Inc., 45 N.E.3d 1066 (4th Dist.) (illustrates limited recovery where payee detrimentally relied on mistaken payment)