2022 Ohio 1247
Ohio Ct. App.2022Background
- Pioneer Automotive sued Steve Rasabi and Village Gate on July 6, 2020, alleging breaches (fiduciary duty, contract), fraud, conversion, DTOCPA violations, and seeking injunctive relief and roughly $1.7M in damages/treble damages.
- Village Gate did not answer; Pioneer moved for a default judgment; Village Gate did not appear at the default hearing.
- A magistrate recommended a default judgment for $370,767; the trial court adopted that recommendation after no objections were filed.
- Village Gate made its first appearance post-judgment and filed a Civ.R. 60(B) motion to set aside the default judgment, arguing improper service/personal-jurisdiction defects, that Village Gate was not a contracting party, and that Pioneer had previously granted an extension in a related eviction case.
- The trial court denied the Civ.R. 60(B) motion; Village Gate appealed. The First District affirmed, holding Village Gate waived the service objection and that the other arguments were not preserved below and failed on the record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether insufficiency of service/personal jurisdiction invalidated the default judgment | Pioneer: default judgment valid; defendant waived service objections by failing to raise them timely | Village Gate: service was improper and trial court lacked personal jurisdiction | Court: Defendant waived the defense by not raising it at earliest opportunity per Civ.R.12(H)(1); overruled |
| Whether Village Gate was a party to the contract/lease | Pioneer: complaint alleged Village Gate was party to lease and breached duties | Village Gate: it was not party to the contract; identity between Rasabi and Village Gate was falsely asserted | Court: Argument not raised in the Civ.R.60(B) motion below and cannot be raised for first time on appeal; overruled |
| Whether an extension agreed in a separate eviction case applied here | Pioneer: no agreement to extend deadlines in this separate case | Village Gate: Pioneer had agreed to extend response time in a related eviction case, so default relief is prejudicial | Court: Record shows no such extension in this case; argument fails; overruled |
Key Cases Cited
- Gliozzo v. Univ. Urologists of Cleveland, Inc., 870 N.E.2d 714 (Ohio 2007) (explaining Civ.R. 12(H)(1) waiver of insufficiency-of-service defense)