2015 Ohio 4762
Ohio Ct. App.2015Background
- Kenneth Blake pled guilty to one count of passing bad checks after a $100,246 check he wrote to Yvonne Hinton was returned for insufficient funds.
- Blake had received $260,000 in life-insurance proceeds after his wife’s death and agreed in a notarized document to give half to three sisters who had cared for the decedent.
- Blake wrote two $100,000 checks to himself, then a $22,000 check to Yvonne (cleared) and a $100,246 check (bounced).
- At sentencing the trial court ordered Blake to pay $100,246 in restitution, imposed 180 days in jail and five years of community control; Blake appealed the restitution order.
- The appellate court considered whether the victims suffered an "economic loss" proximately caused by the bad check, focusing on contract/consideration and whether the check completed a gift.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether restitution in the amount of the bounced check may be awarded as victim economic loss under R.C. 2929.01(L) | Restitution proper because passing a bad check can cause economic loss; prior cases upheld restitution for bad checks | Restitution improper because the bounced check never cleared and thus did not cause an actual economic loss to the payee | Reversed: restitution vacated — here no compensable economic loss because agreement lacked consideration and the check did not complete a gift |
Key Cases Cited
- Marbury v. State, 104 Ohio App.3d 179 (8th Dist.) (discussing appeal standard for restitution)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (abuse-of-discretion standard explained)
- Harmon v. Phillip Morris, Inc., 120 Ohio App.3d 187 (8th Dist.) (contract formation and consideration principles)
- Brads v. First Baptist Church, 89 Ohio App.3d 328 (2d Dist.) (definition and examples of consideration)
- Deluca v. Bancohio Natl. Bank, 74 Ohio App.3d 233 (10th Dist.) (a check alone is not an assignment of funds; gift incomplete until paid or accepted)
- Simmons v. Cincinnati Sav. Soc., 31 Ohio St. 457 (1877) (until a check is paid or accepted, a gift is revocable)