U.S. Bank v. Amir
2012 Ohio 2772
Ohio Ct. App.2012Background
- U.S. Bank foreclosed on the Amirs’ home at 1415 E. 80th Street, Cleveland, in 2006.
- Amirs purchased the property on February 17, 2005, from Simon Zeller.
- Amirs alleged a property-flipping scheme involving Hudak, Capuozzo, and others, including fraudulent appraisals and loan documents.
- Claims between U.S. Bank and Amirs were settled; remaining claims included fraud, conspiracy, CPA, and CSPA against Hudak and Capuozzo.
- Trial court granted in limine exclusions of Durrah’s expert testimony and of prior-conviction evidence, and later granted a directed verdict against Amirs on all claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of Durrah’s expert testimony | Durrah should be allowed to critique Hudak’s appraisal. | Durrah failed to establish value or conformance, and was unhelpful. | No abuse of discretion; Durrah excluded. |
| Preservation of error on Capuozzo and Myles statements | Capuozzo and Myles statements support conspiracy. | Capuozzo’s statement not preserved; Myles statement lacks relevance and is prejudicial. | Capuozzo: not preserved; Myles: properly excluded. |
| Directed verdict on fraud claim | There was fraud by appraisers and related parties. | Evidence failed to show justifiable reliance and misrepresentation. | Appellees entitled to directed verdict on fraud. |
| CSPA applicability to the real estate transaction | Collateral services tied to real estate sale fall under CSPA. | CSPA not applicable to pure real estate transactions or collateral services. | CSPA not applicable; directed verdict proper. |
Key Cases Cited
- Burr v. Bd. of Commrs. of Stark Cty., 23 Ohio St.3d 69 (Ohio 1986) (elements of fraud and reliance guidance)
- Washington Mut. Bank v. Smith, 2002-Ohio-6910 (11th Dist. No. 2001-L-238) (appraiser liability to third parties)
- Rece v. Dominion Homes, Inc., 2008-Ohio-24 (10th Dist. No. 07-AP-295) (appraiser liability without privity)
- Urbanek v. All State Mortgage Co., 178 Ohio App.3d 493 (8th Dist. 2008) (reliance on appraisal to third parties)
- Haddon View Invest. Co. v. Coopers & Lybrand, 70 Ohio St.2d 154 (1982) (foreseeability and third-party reliance in professional negligence)