1031 Properties, L.L.C. v. Bearden

2021 Ohio 1232
Ohio Court of Appeals·Decided April 12, 2021·No. CA2020-03-046·Published·Cited by 2 cases

Opinion

IN THE COURT OF APPEALS

TWELFTH APPELLATE DISTRICT OF OHIO BUTLER COUNTY

1031 PROPERTIES, LLC, : CASE NO. CA2020-03-046

Appellant, : OPINION 4/12/2021

:

- vs -

:

CHARLES A. BEARDEN, et al., :

Appellees. :

CIVIL APPEAL FROM BUTLER COUNTY AREA I COURT Case No. CVG1900054

Thomas G. Eagle Co., L.P.A., Thomas G. Eagle, 3400 N. State Route 741, Lebanon, Ohio 45036, for appellant

Wayne Staton Co., L.P.A., Timothy J. Meloy, 110 N. Beech Street, Oxford, Ohio 45056, for appellees

M. POWELL, J.

{¶ 1} Appellant, 1031 Properties, LLC ("1031 Properties"), appeals the decision of the Butler County Area I Court vacating a default judgment entered against appellees, Charles and Sarah Bearden ("the Beardens").

{¶ 2} In 2017, the Beardens leased a residence in Middletown, Ohio from 1031 Properties for $745 per month. On January 28, 2019, 1031 Properties filed an eviction

complaint against the Beardens, seeking a writ of restitution of the premises in its first claim and past due rent and damages in its second claim. 1031 Properties alleged in its complaint that, beginning in December 2018, the Beardens defaulted on their lease, and had failed to pay their monthly rent in a timely manner.

{¶ 3} With regard to its claim for damages, 1031 Properties sought damages in the amount of $1,487.26, plus $24.49 for each day the residence remained occupied after January 31, 2019, until and including the end of the term of the lease, or when the property was again rented for an equal or greater amount, whichever came first. The complaint also sought compensation for damages to the premises, plus interest, the cost of this action and reasonable attorney's fees if allowed.

{¶ 4} On January 28, 2019, the Beardens were served with a "Summons in Forcible Entry and Detention with Claim for Rent." The summons indicated the Beardens were required to appear for a hearing regarding the first claim of the complaint. With regard to the second claim for damages, the summons stated the following:

As to [1031 Properties'] claim for unpaid rent and other claims, you are required to serve upon the plaintiff's attorney * * * a copy of an answer to the complaint within twenty-eight (28) days after service of this summons on you, exclusive of the day of service.

* * * If you fail to appear and defend, judgment by default will be rendered against you for the relief demanded in the complaint.

The summons and a copy of the complaint were secured to the front door of the Beardens' residence.

{¶ 5} On February 13, 2019, the trial court held a hearing regarding the first claim of the complaint. 1031 Properties was represented by counsel. The Beardens appeared pro se. At the hearing, the Beardens indicated they did not dispute the allegations and that they had made an arrangement with 1031 Properties. Counsel for 1031 Properties stated the parties were working together on an installment basis to avoid execution of the writ of

restitution. At that point, the trial court informed the Beardens they were to leave the premises within seven days unless the parties agreed otherwise. At the conclusion of the hearing, counsel for 1031 Properties indicated he was not going to ask for "second cause on either of these right now either."

{¶ 6} The following day, the trial court issued an entry indicating that both the Beardens and 1031 Properties had appeared at the hearing and the Beardens had failed to timely pay rent that was due. The trial court further ordered the Beardens to vacate the premises by noon on February 20, 2019.

{¶ 7} On March 7, 2019, 1031 Properties asked the trial court to prepare and issue a writ of restitution in accordance with the trial court's February 14, 2019 judgment entry. That day, the trial court issued an entry and order for writ of restitution against the Beardens. On March 12, 2019, the writ was served upon the Beardens; however, the Beardens had moved out of the residence by that time.

{¶ 8} On April 16, 2019, 1031 Properties moved the trial court for a default judgment on its claim for damages as alleged in the second cause of the complaint. According to 1031 Properties' motion, despite being served with the complaint on January 28, 2019, the Beardens had failed to file an answer within the time allowed by law. 1031 Properties attached to its motion an affidavit for damages and a ledger of charges, which detailed the reasonable value of unpaid rent from the date of default to the date of re-rental. The affidavit indicates the Beardens paid $1,300 in February and $695 in March towards their overdue balance. According to the affidavit, the remaining amount owed for unpaid rent and damages totaled $13,747.05. The Beardens did not respond to 1031 Properties' motion.

{¶ 9} On September 6, 2019, the trial court granted 1031 Properties' motion for default judgment, and entered judgment against the Beardens in the amount of $13,747.05 plus interest at the statutory rate. The Beardens did not appeal the trial court's decision.

{¶ 10} On October 10, 2019, the Beardens, now represented by counsel, moved the trial court to set aside the default judgment. In its motion, the Beardens argued default judgment was improper in this instance because they appeared at the first cause hearing and a hearing regarding 1031 Properties' claim for damages was never held. Thus, the Beardens claimed they were denied the opportunity to present evidence refuting 1031 Properties' claim for damages and asked the trial court to set aside the default judgment and hold a hearing regarding the claim for damages. 1031 Properties filed a memorandum in opposition to the Beardens' motion.

{¶ 11} On November 18, 2019, the magistrate issued a decision overruling the Beardens' motion. The magistrate found that, because the Beardens failed to file an answer to the complaint within 28 days of service, the default judgment was proper. The magistrate further found that, to the extent the Beardens' motion could be construed as a Civ.R. 60(B) motion, they failed to allege any of the three necessary prongs required by GTE Automatic Electric Co., Inc. v. ARC Industries, Inc., 47 Ohio St.2d 146. The Beardens did not object to the magistrate's decision. However, neither did the trial court adopt the magistrate's decision as its judgment.

{¶ 12} On January 16, 2020, the trial court held a hearing regarding the Beardens'

motion to set aside the default judgment. Thereafter, on February 19, 2020, the trial court issued an entry granting Bearden's motion to set aside the default judgment and set the matter for a full hearing on damages.

{¶ 13} 1031 Properties now appeals, raising the following assignment of error for our review:

{¶ 14} THE TRIAL COURT ERRED IN SETTING ASIDE THE DEFAULT JUDGMENT.

{¶ 15} On appeal, 1031 Properties argues the trial court erred in granting the

Beardens' motion to set aside the default judgment for two reasons. First, 1031 Properties claims the trial court erred in vacating the default judgment where the Beardens failed to answer the complaint and failed to establish any ground of relief pursuant to Civ.R. 60(B). Second, 1031 Properties argues the trial court erred in vacating the default judgment because the Beardens failed to establish any meritorious defense.

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1031 Properties, L.L.C. v. Bearden, 2021 Ohio 1232 (Ohio Ct. App. 2021).

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