Southern Christian Leadership Conference v. Combined Health DistrictSouthern Christian Leadership Conference v. Combined Health District
{¶ 1} Before us is the appeal of the Southern Christian Leadership Conference (“SCLC”) and five taxpayers (the “taxpayers”) from a trial court’s judgment dismissing their respective claims for lack of standing and from the trial court’s judgment overruling their motion to amend the complaint and motion for
I. Facts
{¶ 2} Here are the facts pertinent to this appeal, taken from the factual allegations in the amended complaint, which for purposes of deciding a
{¶ 3} There are several parties in this case. SCLC is a nonprofit, charitable organization, and the taxpayers are individual taxpaying residents of Montgomery County. Mount Olive is a church in Montgomery County, and the Combined Health District (“CHD”) is a public-health agency serving Dayton and Montgomery County, also known as Public Health Dayton and Montgomery County. CHD is run by the Montgomery County Health Commissioner and the Montgomery County Board of Health. The latter oversees CHD’s operations, which includes the awarding of grants for community-health-education programs. For the past 16 years, CHD has awarded SCLC a grant to operate an HIV/AIDS education program known as the “RACE” program. CHD’s reviews of SCLC’s performance in operating the RACE program have ranged from very good to outstanding.
{¶ 4} In May 2008, CHD solicited grant proposals for three HIV/AIDS community-education programs, one of which was the RACE program. Selection was competitive, and proposals were submitted under seal. SCLC submitted a proposal for the grant. Among the other organizations to submit a proposal was Mount Olive Baptist Church. CHD was required to evaluate the proposals in part based on the organizations’ experience in running such programs. For organizations that had received grants previously, CHD was also to consider their historical performance. After evaluating all the proposals, CHD awarded the grant to Mount Olive.
{¶ 5} Subsequently, SCLC learned disturbing information about Mount Olive’s proposal and how CHD had made its decision. SCLC became aware of allegations that Mount Olive’s proposal contained material misrepresentations and falsehoods with respect to its knowledge and experience running community-education programs. SCLC also learned of allegations that some signatures on Mount Olive’s proposal were forged. SCLC presented these allegations to CHD, but CHD refused to investigate them. CHD also said that it did not consider SCLC’s historical performance running the RACE program, though CHD did
{¶ 6} On December 23, 2008, SCLC and the taxpayers filed a complaint — later amended — in the Montgomery County Common Pleas Court. The complaint named as defendants CHD, the Montgomery County Health Commissioner, the members of the Montgomery County Board of Health, and Mount Olive. In the complaint, SCLC and the taxpayers each stated several theories of their claims. SCLC alleged against CHD civil conspiracy, retaliation, and fraud, and against Mount Olive, tortious interference, civil conspiracy, and fraud. The taxpayers alleged against CHD civil conspiracy, breach of fiduciary duty, and misuse of public funds under
{¶ 7} On July 22, 2009, the trial court agreed that SCLC and the taxpayers did not have standing, so it dismissed all their claims. On July 31, SCLC and the taxpayers filed three motions, a motion for
II. Threshold Issue of Jurisdiction
{¶ 8} Before considering the assignments of error, we first address a threshold issue raised by Mount Olive concerning our jurisdiction over part of the judgment of dismissal. Mount Olive contends that we lack jurisdiction to review that part of the judgment in which the trial court sustained Mount Olive’s motion to dismiss and dismissed the claims against it. Jurisdiction is lacking, Mount
{¶ 9}
{¶ 10} While plaintiffs-appellants timely filed the notice of appeal, Mount Olive is correct that the notice expressly states only plaintiffs-appellants’ intent to appeal “from the Decision Sustaining Motion to Dismiss Defendants Combined Health District of the Montgomery County Court of Common Please [sic], Civil Division, entered on July 22, 2009.” The notice, then, does not expressly designate that part of the judgment concerning its motion to dismiss. But for this defect, we conclude that sanctions are unnecessary.
{¶ 11} Looking behind the form of the notice, we think that plaintiffs-appellants’ clear intent was to appeal the entire judgment of dismissal. Evidence for this is found in the first assignment of error, in which SCLC argues that the trial court wrongly dismissed its tortious-interference claim, a claim it brings only against Mount Olive. Moreover, the purpose of filing a notice of appeal “is to <* * * apprise the opposite party of the taking of an appeal.’ ” Maritime Mfrs., Inc. v. Hi-Skipper Marina (1982),
III. Dismissal of Plaintiff-Appellants’ Claims
{¶ 13} SCLC and the taxpayers assign four errors to the trial court. The first and second concern the judgment dismissing their claims, and the third and fourth concern the judgment overruling their two motions.
First Assignment of Error
{¶ 14} “The SCLC and/or the Taxpayers had Standing to Challenge the Grant Award Under the Circumstances Alleged in the Complaint and Supported by Affidavit.”
{¶ 15} In the complaint, SCLC and the taxpayers allege that by failing to consider SCLC’s historical performance in its evaluation, CHD in effect unfairly changed the evaluation criteria after the proposals had been submitted and without notifying SCLC. Regarding Mount Olive, they allege that it submitted a fraudulent proposal, containing material misrepresentations, lies, and forged signatures, allegations that are described in three attachments — two affidavits and a letter to the director of the Ohio Department of Health from the Aids Resource Center of Ohio. SCLC and the taxpayers allege that CHD knew, or at least should have known, about the problems with Mount Olive’s proposal, but did nothing. These factual allegations, they contend, are sufficient to establish their standing to bring the dismissed claims.
{¶ 16} The Civil Rules of Procedure allow a defendant to move for the dismissal of a claim against it for “failure to state a claim upon which relief can be granted.”
A. SCLC has standing
{¶ 18} SCLC brings one claim against CHD and one against Mount Olive. We begin with the claim against CHD.
1. SCLC has standing vis-á-vis CHD
{¶ 19} The trial court’s conclusion (that SCLC lacks standing to assert a claim against CHD) is based on its view that SCLC is claiming injury based on the mere fact that CHD did not award it the grant. The court said that the award was a discretionary decision of CHD. Because SCLC could not show that it alone was entitled to the grant, concluded the court, SCLC has not alleged any injury. See Graphic Ents. of Ohio, Inc. v. Bd. of Ed. Akron City Sch. Dist. (June 15, 1988), Summit App. Nos. 13269, 13274,
{¶ 20} While the award of a public contract generally is within the awarding public-entity’s discretion, see Reiter Dairy, Inc. v. Ohio Dept. of Health, Franklin App. No. 01AP-944,
{¶ 21} Construing the factual allegations in the complaint in favor of SCLC, we conclude that it has established standing. SCLC alleges that CHD’s improper evaluation of its grant proposal resulted in SCLC’s not being fairly considered for the grant. Such general allegations are sufficient, at this stage, to show that SCLC was injured by CHD’s conduct. Therefore, SCLC has standing to bring its claim against CHD.
2. SCLC has standing vis-a-vis Mount Olive
{¶ 22} In the complaint, SCLC alleges that Mount Olive’s submission of a fraudulent proposal resulted in CHD’s decision not to award SCLC the grant. SCLC alleges that Mount Olive engaged in tortious interference and civil conspiracy. Tortious interference generally occurs when a person improperly induces or otherwise purposely causes a third person not to enter into or continue a business relationship with another or not to perform a contract with another. See Fred Siegel Co., L.P.A v. Arter & Hadden (1999),
B. Taxpayers lack standing
{¶ 23} The taxpayers bring one claim against CHD, one claim against the members of the board of health, and one against Mount Olive. We first address together the claim against CHD and the claim against the members of the board of health.
1. The taxpayers lack standing vis-á-vis CHD and the board
{¶ 24} The rule for common-law taxpayer standing was established in State ex rel Masterson v. Ohio State Racing Comm. (1954),
{¶ 25} The taxpayers here have not alleged any special interest in the publicly funded grant. No taxpayer applied for the grant, so none was denied. Nor have they alleged any other interest in the grant that would distinguish them
2. The trial court lacks jurisdiction over the taxpayers’ statutory action under
{¶ 26}
{¶ 27} The trial court here dismissed the taxpayers’ county-taxpayer suit for lack of standing because the court found that in the complaint, the taxpayers fail to allege that before filing suit, they made a written request of the Montgomery County Prosecuting Attorney. The trial court is correct that the taxpayers may not bring suit under
i. The taxpayers fail to allege that they sent the prosecuting attorney written notice
{¶ 28} “ ‘Although the Court of Common Pleas is a court of general jurisdiction, the jurisdiction it may exercise must be found either expressly or by necessary implication in statutory enactments.’ ” Franklin Cty. Law Enforcement Assn. v. Fraternal Order of Police, Capital City Lodge No. 9 (1991),
{¶ 29} The taxpayers’ allegations in the complaint fail to bring them clearly within
{¶ 30} The taxpayers say that they did give written notice. To their memorandum in opposition to CHD’s motion to dismiss, the taxpayers attached an affidavit that avers that a letter requesting the prosecuting attorney to file suit was faxed to him before they filed suit. The letter and fax log were also attached to the memorandum. According to the fax log, the letter was sent at 11:27 a.m. on December 22, 2009, the day before the taxpayers filed their complaint. The letter demands from the prosecuting attorney a decision by 5:00 p.m. that same day. Noting the affidavit, the trial court correctly disregarded it as presenting “matters outside the pleading,” which are not proper to consider when determining whether to grant a motion to dismiss. See
{¶ 31} Because the trial court did not convert the motion, the reasonable-time issue is not properly before us, so we need not address it. But had we addressed it, we would likely agree with the trial court. See State v. Slagle (June 12, 1980), Miami App. No. 78 CA 27,
{¶ 32} In the second assignment of error,
3. The taxpayers lack standing vis-a-vis Mount Olive
{¶ 33} With respect to their claim against Mount Olive, the taxpayers simply have not alleged any conduct by Mount Olive that has caused them direct and concrete injury.
{¶ 34} The first assignment of error is sustained in part and overruled in part, and the second assignment of error is entirely overruled.
IV. Postdismissal Motions
Third Assignment of Error
{¶ 35} “Appellants Should have been Granted Leave to Amend any Technical Deficiencies in the Pleadings.”
Fourth Assignment of Error
{¶ 36} “The trial [sic] Court did not loose [sic] Jurisdiction to GrantCiv.R. 60 Relief Prior to the Filing of a Notice of Appeal.”
{¶ 37} After the trial court granted defendants-appellees’ motions to dismiss, plaintiffs-appellants filed a motion denominated “Motion for
{¶ 38} In the third assignment, plaintiffs-appellants seek to amend the caption of their complaint because, as the trial court pointed out in its decision dismissing their claims, a county-taxpayer suit under
{¶ 39} Turning to the fourth assignment of error, a trial court is not divested of jurisdiction to consider a
{¶ 40} The third and fourth assignments of error are overruled.
{¶ 41} We have sustained in part and overruled in part the first assignment of error, and we have overruled the second assignment of error. We also have overruled both the third and fourth assignments of error. Accordingly, the judgment of the trial court dismissing plaintiff-appellants’ claims is affirmed in part and reversed in part. The judgment overruling plaintiff-appellants’ motions is affirmed. This cause is remanded for further proceedings.
Judgment affirmed in part and reversed in part, and cause remanded.
Notes
. Plaintiffs-appellants do not appeal the trial court's dismissal of their alternative request of a writ of mandamus and/or prohibition.
. "Notice to the Prosecuting Attorney was Sufficiently Alleged or was otherwise a Vain or Useless Act."
. Here, we observe, there is an unraised issue concerning our jurisdiction. Almost two weeks after plaintiffs-appellants filed their original notice of appeal, they filed an amended notice of appeal that added the judgment overruling the motion presently under discussion. But plaintiffs-appellants never sought leave to amend from this court, which we have said