Trumbull Twp. Bd. of Trustees v. Rickard
2017 Ohio 6945
| Ohio Ct. App. | 2017Background
- In Nov. 2011 Geauga Savings Bank (GSB) sued Lawrence Rickard (and the Seymours) for foreclosure based on Rickard’s assumption of a mortgage and default; the Township was not originally a party.
- GSB moved for summary judgment in 2014 seeking foreclosure, money damages, correction of a scrivener’s error, and $36,985 in attorney fees; its supporting evidence included an affidavit from a bank account manager asserting the fee amount.
- Before the trial court decided summary judgment, GSB assigned the mortgage, note, and assumption agreement to Trumbull Township and the Township was substituted as plaintiff under Civ.R. 25(C).
- The trial court granted summary judgment to the Township on foreclosure and reformation but denied summary judgment and a hearing on attorney fees because GSB was no longer a party.
- The Township appealed, arguing it as assignee stood in GSB’s shoes and was entitled to a hearing to establish recoverable attorney fees under the note.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether assignee (Township) may pursue attorney fees claimed by assignor | Township (as GSB’s assignee) succeeds to GSB’s rights, including contractual attorney fees | Rickard: fee entitlement and amount are disputed; procedural posture questioned since GSB is no longer a party | Court: Assignee stands in assignor’s shoes; Township may pursue attorney fees under the assigned note |
| Whether trial court erred in denying an evidentiary hearing on attorney fees | Township: substitution made GSB’s pending request its own; trial court must hold a hearing to determine reasonable fees | Trial court: denied hearing because GSB (the original requester) was no longer a party after assignment | Court: Denial of hearing as to attorney fees was an abuse of discretion; remanded for hearing |
| Whether summary judgment as to attorney fees was appropriate on the record presented | Township: relied on GSB’s filings and assignment; sought enforcement of note provision allowing fees | Rickard: disputed the sufficiency/reasonableness of fee evidence; genuine issues exist | Court: GSB’s affidavit was insufficient to establish entitlement/reasonableness; court should have held an evidentiary hearing using the Bittner framework |
| Whether substitution of plaintiff under Civ.R. 25(C) affects pending claims for fees | Township: substitution operates as if action commenced in successor's name; pending fee request transfers to assignee | Rickard: substitution does not automatically establish fee entitlement without proof | Court: Civ.R. 25(C) substitution transfers claims; fee request became Township’s and required adjudication via hearing |
Key Cases Cited
- Goldfuss v. Davidson, 79 Ohio St.3d 116 (1997) (defines plain error in civil cases and cautions narrow application)
- Inter Ins. Exchange v. Wagstaff, 144 Ohio St. 457 (1945) (an assignee succeeds to all rights and remedies of assignor)
- Bittner v. Tri–County Toyota, Inc., 58 Ohio St.3d 143 (1991) (procedure for awarding attorney fees when an exception to the American Rule applies)
- Aetna Cas. & Sur. Co. v. Hensgen, 22 Ohio St.2d 83 (1970) (definition and effect of an assignment)
- Leber v. Buckeye Union Ins. Co., 125 Ohio App.3d 321 (1998) (unqualified assignment transfers all interest of assignor to assignee)