Paterson v. Equity Trust Co., 2012 Ohio 860

Paterson opened a self-directed IRA with Equity Trust in January 2007 to fund an investment in Williamston Holdings, LLC.
Equity Trust transferred $66,666.66 from Paterson’s IRA to Williamston after Sadlak forged Paterson’s signature on documents.
Equity Trust did not receive a promissory note or security agreement as collateral for the loan.
Paterson learned in 2008 that the Williamston investment was foreclosing and that he had no secured interest.
Paterson sued Equity Trust on multiple claims (securities act, breach of contract, fiduciary duty, misrepresentation); trial court granted summary judgment for Equity Trust.
Ohio Court of Appeals affirmed, upholding summary judgment for Equity Trust on all claims.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Paterson’s claim under the Ohio Securities Act survives summary judgment.	Paterson asserts Equity Trust aided in selling an unregistered security.	Equity Trust did not sell a security and there is no genuine issue of a security sale.	No genuine issue; affirmed summary judgment for Equity Trust.
Whether Equity Trust owed a fiduciary duty to Paterson.	Equity Trust, as Paterson’s agent, owed fiduciary duties.	The IRA application disclaims fiduciary status; no fiduciary relationship existed.	No fiduciary duty; affirmed summary judgment.
Whether Equity Trust ratified the forged disbursement of funds by Paterson’s agent.	Paterson did not ratify the unauthorized acts.	Paterson ratified via conduct and knowledge of the investment.	Ratification established; affirmed summary judgment for Equity Trust.

Grafton v. Ohio Edison Co., 77 Ohio St.3d 102 (Ohio 1996) (summary judgment standard; de novo review)
Dresher v. Burt, 75 Ohio St.3d 280 (Ohio 1996) ( Civ.R.56 burden shifting; summary judgment criteria)
Perrysburg Twp. v. Rossford, 103 Ohio St.3d 79 (Ohio 2004) (tests for whether something is a security; sufficiency of record)