2012 Ohio 4271
Ohio Ct. App.2012Background
- Real property dispute in Parma, Ohio involving Christine Sheridan and Kevin Sheridan; Christine seeks to quiet title and cancel an Equity Trust Mortgage on the Sheridan Property.
- Equity Trust Company Custodian FBO Eric Lundberg IRA held the mortgage as lender; mortgage dated Feb. 2, 2007, signed by Kevin and Christine and notarized by Land Title Group.
- Lundberg, on Equity Trust’s behalf, counterclaimed for foreclosure on the Equity Trust Mortgage and for a note of $204,000, plus claims for unjust enrichment and fraud.
- Christine, individually and as Co-Trustee, amended the complaint; Lundberg countered and added a Third Party Complaint against Land Title Group for negligence and fraud; Land Title and others asserted counterclaims.
- The trial court granted several summary judgments; the matter involved cross-appeals and a certification of finality; the appellate court affirmed some rulings, reversed others, and remanded for further proceedings.
- The court ultimately reversed the trial court’s (a) finding that Lundberg’s release of the mortgage was valid and (b) finding that Kevin Sheridan owned a half-interest in the Property as a matter of law; the matter was remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of Lundberg’s release of the Equity Trust Mortgage | Lundberg lacked apparent authority to release the mortgage. | Release was valid; Lundberg acted within authority or agency. | Release not conclusively valid; factual issues remain. |
| Apparent authority and standing to foreclose | Lundberg’s foreclose claims should stand if release binding. | If Lundberg lacked authority to release, he lacks standing to foreclose. | Court declined to resolve standing on this record; issues to be addressed at trial. |
| Consideration for the release | Senior consideration existed to induce release. | No evidence of valid consideration; insufficient to support contract. | Genuine issue of material fact regarding consideration; summary judgment improper on release validity. |
| Indemnification and notarization by Land Title Group | Notarization purportedly securing Christine’s signature negligent/fradulent. | Land Title indemnified against claims; relied on agreement; notarization issues unresolved but indemnification supports judgment. | Not dispositive; Land Title entitled to summary judgment on indemnification; notarization issues fact-dependent. |
| Ownership interest in the Property | Sheridan Family Trust owned the Property; Kevin held exclusive or substantial interest only if trust failed. | Quitclaim deed language and testimony create at least a half-interest in Kevin; trust status unresolved. | Trial court’s conclusion that Kevin held a half-interest as a matter of law reversed; ownership remains fact-dependent on remand. |
Key Cases Cited
- Wells Fargo Bank, N.A. v. Jordan, 8th Dist. No. 91675, 2009-Ohio-1092 (Ohio 8th Dist. 2009) (standing to foreclose depends on mortgagee of record at filing)
- Master Consol. Corp. v. BancOhio Natl. Bank, 61 Ohio St.3d 570, 575 N.E.2d 817 (1991) (apparent authority requires principal’s manifestation of authority and reliance by third party)
- Grafton v. Ohio Edison Co., 77 Ohio St.3d 102, 1996-Ohio-336, 671 N.E.2d 241 (1996) (de novo review of summary judgment; standard applied by appellate court)
- Dresher v. Burt, 75 Ohio St.3d 280, 1996-Ohio-107, 662 N.E.2d 264 (1996) (movant must show no genuine issue of material fact; procedural rule)
- Harless v. Willis Day Warehousing Co., Inc., 54 Ohio St.2d 64, 375 N.E.2d 46 (1978) (summary judgment burden on movant; evidentiary standards)
- State v. Glaros, 170 Ohio St. 471, 166 N.E.2d 379 (1960) (timing of appellate consideration of issues not raised in trial court)