Natl. City Bank v. Semco, Inc.
2011 Ohio 172
Ohio Ct. App.2011Background
- National City Bank obtained a judgment against Semco and the Furmans on a promissory note in 2006.
- The court appointed Lazear as receiver with power to retain counsel and pay from the receivership estate.
- Semco sought to set aside the receiver order; the court denied the motion and Lazear remained in place.
- After assets were returned to Semco, Lazear sought fees totaling $115,833.62 from Semco’s assets; Semco challenged the fees.
- The trial court reduced Lazear’s rate to $150/hour and associates to $75/hour, with a net credit to Semco; this was reviewed in Semco I.
- This Court reversed in Semco I and remanded to recalculate fees at Lazear’s $300/hour rate for Lazear’s services.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are Lazear’s attorney fees payable from the receivership estate? | Semco contends fees were Lazear’s personal costs, not estate-related. | Lazear asserts fees were necessary to preserve and protect the estate per appointment order. | Fees improperly awarded; not for estate preservation. |
| Were the fees reasonable and properly evidenced under Rule 1.5 and local practice? | Semco argues lack of independent evidence and improper invoicing. | Lazear asserts attached affidavits show reasonableness and necessity. | No competent evidence; award reversed. |
Key Cases Cited
- National City Bank v. Semco, Inc. (Semco I), 183 Ohio App.3d 229 (Ohio Ct. App. 2009) (remanded for recalculation of fees following improper rate reduction)
- Liberty Folder Co. v. Anderson, 89 N.E.2d 500 (Ohio 1949) (test for fee obligation to preserve or protect fund)
- Sorin v. Bd. of Edn. of Warrensville Hts. Sch. Dist., 46 Ohio St.2d 177 (Ohio 1976) (American Rule on attorney fees; need for statutory authority or bad faith finding)
- Durkin v. Ungaro, 39 Ohio St.3d 191 (Ohio 1988) (bad faith and authority required for fee shifting)