Victorian's Midnight Cafe L.L.C. v. Goodman
2016 Ohio 7947
| Ohio Ct. App. | 2016Background
- Plaintiffs: Victorian's Midnight Café LLC (The Shrunken Head), owners Venrick and Kleinert; dispute arose from a municipal-court wage claim brought by the Ohio Department of Commerce (the department) and its director David Goodman as assignee of an employee.
- October 2014 negotiations produced a proposed settlement draft that plaintiffs say varied from agreed terms; no finalized settlement; the municipal court later entered judgment for the department.
- Plaintiffs filed in common pleas court seeking declaratory relief and specific performance enforcing the alleged October 2014 agreement and requested attorneys' fees and costs; they amended complaints to emphasize equitable relief and deny monetary damages.
- Defendants moved to dismiss under Civ.R. 12(B)(1), asserting exclusive jurisdiction in the Court of Claims for monetary claims against the state and that Goodman is entitled to state-employee immunity (or that the Court of Claims must first determine immunity).
- Trial court granted dismissal; court of appeals reviewed de novo and affirmed, holding plaintiffs' claims are effectively breach-of-contract/monetary claims and that the Court of Claims has exclusive jurisdiction over such claims and immunity determinations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the common pleas court has jurisdiction over plaintiffs' declaratory/specific-performance action | Plaintiffs: claims seek equitable relief (specific performance/declaratory relief); attorneys' fees/costs are incidental and do not transform the suit into a money-damages action | Defendants: the complaint seeks compensatory monetary relief (attorney fees/costs arising from alleged breach), so exclusive jurisdiction lies with the Court of Claims | Held: Common pleas lacked jurisdiction; claims amount to breach-of-contract/monetary damages properly in Court of Claims |
| Whether attorney fees already incurred convert declaratory action into a money-damages claim | Plaintiffs: fees are incidental to equitable relief and not "damages per se" | Defendants: fees incurred because of the alleged repudiation are compensatory damages for breach and must be pursued in Court of Claims | Held: Fees are compensatory damages (recoverable as such) and remove the case from common pleas' jurisdiction |
| Whether Goodman may be sued in common pleas without first invoking the Court of Claims immunity determination | Plaintiffs: Goodman acted as an assignee (private capacity), not as a state official, so immunity does not apply | Defendants: Goodman acted in his capacity as director; R.C. 2743.02(F) requires the Court of Claims to determine personal immunity first | Held: Plaintiffs did not show Goodman acted outside official capacity; R.C. 2743.02(F) requires immunity determination in Court of Claims before common pleas action proceeds |
| Whether dismissal under Civ.R. 12(B)(1) was proper | Plaintiffs: dismissal was error because they sought only equitable relief | Defendants: dismissal proper due to lack of subject-matter jurisdiction | Held: Dismissal proper; Civ.R. 12(B)(1) granted and affirmed on appeal |
Key Cases Cited
- Southgate Dev. Corp. v. Columbia Gas Transm. Corp., 48 Ohio St.2d 211 (court may consider material outside complaint when deciding subject-matter jurisdiction)
- Stauffer v. Ohio Dept. of Transp., 63 Ohio App.3d 248 (Court of Claims is exclusive forum for suits precluded by state immunity waiver)
- Windsor House, Inc. v. Ohio Dept. of Job & Family Servs., 62 Ohio St.3d 97 (Court of Claims has exclusive jurisdiction over monetary claims sounding in law against the state)
- Santos v. Ohio Bur. of Workers' Comp., 101 Ohio St.3d 74 (claims for return of specific funds wrongfully held by the state are equitable and may be in common pleas)
- Cullen v. Ohio Dept. of Rehab. & Corr., 125 Ohio App.3d 758 (declaratory action that includes indemnification of attorney fees/costs is a monetary claim that belongs in Court of Claims)
- Ohio Hosp. Assn. v. Ohio Dept. of Human Servs., 62 Ohio St.3d 97 (Court of Claims has exclusive jurisdiction over civil suits for monetary damages against the state)