2012 Ohio 2774
Ohio Ct. App.2012Background
- PNC Bank, N.A. sued John DePalma and Private Jet Management, LLC over a $50,000 line of credit issued to Private Jet based on Cheryl DePalma's signature as a member.
- Cheryl submitted an affidavit of forgery claiming she did not sign the credit application and had no role in Private Jet.
- PNC alleged John formed or controlled Private Jet and acted as its alter-ego; PNC claimed John knew or signed in Cheryl’s name and was unjustly enriched.
- A default judgment was entered against DePalma and Private Jet on March 18, 2010 for about $51,283.67 after they failed to respond.
- John filed a Civ.R. 60(B)(1) motion in 2010 claiming lack of service; he withdrew it; renewed counsel later filed a Civ.R. 60(B) (5) motion in 2011, denied without a hearing.
- Appellants appealed, arguing lack of a veil-piercing showing and need for an evidentiary hearing; the court reversed and remanded for a hearing on the Civ.R. 60(B) motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused its discretion denying Civ.R. 60(B) relief | PNC argues appellants failed to show merit, so relief was unwarranted. | DePalma/Private Jet contend they have meritorious defenses and entitlement to relief. | Abuse of discretion; relief warranted and remand proper. |
| Whether the trial court should have held an evidentiary hearing before ruling | PNC contends no hearing was required given the record. | Appellants asserted operative facts (including John's affidavit) deserving a hearing. | Abused; evidentiary hearing required and remand to conduct one. |
Key Cases Cited
- Belvedere Condominium Unit Owners’ Assn. v. R.E. Roark Cos., Inc., 67 Ohio St.3d 274 (1993-Ohio-119) (pierce the veil factors for corporate liability)
- GTE Automatic Elec. v. ARC Industries, 47 Ohio St.2d 146 (1976) (three-part test for Civ.R. 60(B) relief)
- Adomeit v. Baltimore, 39 Ohio App.2d 97 (1974) (hearing warranted when facts alleged justify relief)
- Kay v. Marc Glassman, Inc., 76 Ohio St.3d 18 (1996-Ohio-430) (evidentiary hearing required when operative facts are alleged)
- Coulson v. Coulson, 5 Ohio St.3d 12 (1983) (when 60(B) claims rely on asserted facts, hearing should be held)