B-Dry System v. Kronenthal, Unpublished Decision (6-30-1999)

CourtOhio Court of Appeals
DecidedJune 30, 1999
DocketC.A. Case Nos. 17130, 17619. T.C. Case No. 98-0036.
StatusUnpublished

This text of B-Dry System v. Kronenthal, Unpublished Decision (6-30-1999) (B-Dry System v. Kronenthal, Unpublished Decision (6-30-1999)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B-Dry System v. Kronenthal, Unpublished Decision (6-30-1999), (Ohio Ct. App. 1999).

Opinion

OPINION
In Case No. CA 17130, defendant-appellant Jack Kronenthal appeals from a default judgment rendered in favor of plaintiff-appellee B-Dry System, Inc. In Case No. CA 17619, Kronenthal appeals from the trial court's denial of his Motion for Relief from Judgment. The cases have been consolidated on appeal. Kronenthal argues that the trial court lacked jurisdiction to rule on the controversy between the parties, pursuant to the jurisdictional priority rule, because he had filed a similar action against B-Dry in the Greene County Common Pleas Court, and had obtained service of process on B-Dry with respect to that action before B-Dry had obtained service of process on him regarding the within action. In the alternative, Kronenthal argues that the trial court erred by entering a default judgment in B-Dry's favor without holding a damages hearing, as permitted under Civ.R. 55, and by overruling his Motion for Relief from Judgment.

We conclude that the trial court did not abuse its discretion by not holding a damages hearing as permitted under Civ.R. 55, nor by overruling Kronenthal's Motion for Relief from Judgment, because Kronenthal failed to establish that he was entitled to relief under any of the grounds listed in Civ.R. 60(B). However, we also conclude that the trial court may have lacked jurisdiction in this case pursuant to the jurisdictional priority rule, depending upon whether Kronenthal deliberately avoided service of process with respect to the Montgomery County action, as B-Dry asserts, and whether this evasion of service of process occurred prior to the time Kronenthal obtained service of process on B-Dry with respect to the Greene County action. Accordingly, in Case No. 17130, the trial court's default judgment is Reversed, and this cause is Remanded for proceedings consistent with this opinion. In Case No. 17619, the trial court's order overruling Kronenthal's Motion for Relief from Judgment is Affirmed.

I
B-Dry System, Inc., is engaged in the business of waterproofing basements. The company owns certain patents, registered trademarks, service marks, trade names, and logos, and has developed what it refers to as "unique procedures and techniques for the operation of a basement waterproofing business, known as the `B-Dry System.'" In 1986, B-Dry entered into a License and Franchise Agreement with Kronenthal, which permitted him to operate a waterproofing business utilizing the B-Dry System and the B-Dry label. Disputes subsequently arose between the parties concerning their respective rights and duties under the franchise agreement. The parties entered into negotiations in the latter part of 1997 to resolve their differences, without success.

On January 6, 1998, B-Dry filed a Verified Complaint in the Montgomery County Common Pleas Court, alleging that Kronenthal had breached numerous provisions of the parties' License and Franchise Agreement. B-Dry sought declaratory and injunctive relief against Kronenthal, as well as attorney fees. On the same day it filed its Verified Complaint, B-Dry filed a Motion for Temporary Restraining Order and Preliminary Injunction, seeking, among other things, to prevent Kronenthal from using, in any manner, the B-Dry System, or B-Dry's trade names, trademarks, service marks, trade secrets, etc.

The trial court granted B-Dry's Motion for a Temporary Restraining Order on the same day it was filed, and scheduled a preliminary injunction hearing for January 14, 1998, which was subsequently continued until February 3, 1998.

Immediately prior to the filing of the Verified Complaint, B-Dry's counsel telephoned Kronenthal's attorney, and left a message informing him of B-Dry's intention to file suit against Kronenthal. Kronenthal's attorney returned the telephone call later that day, and informed B-Dry's counsel that he had left messages for Kronenthal informing him of B-Dry's intention to file suit, and of his own intention to terminate his representation of him because of professional differences. B-Dry's counsel then called Kronenthal directly, and left a message informing him about B-Dry's intention to file suit.

When Kronenthal returned the telephone call the next day, B-Dry's counsel informed him that a Verified Complaint had been filed against him, and that a temporary restraining order had been issued against him. Kronenthal allegedly responded by telling B-Dry's counsel that he was not bound by the temporary restraining order since he had neither seen it, nor been served with it. When B-Dry's counsel asked Kronenthal where he could be found so that he could be served, Kronenthal reportedly said, "If you can find me, you can serve me." When B-Dry's counsel offered to read the terms of the temporary restraining order over the telephone, Kronenthal allegedly reiterated that he had neither seen nor been served with the temporary restraining order, and, therefore, was not bound by it. Allegedly, Kronenthal then hung up the telephone abruptly.

Shortly after this conversation, B-Dry sent a letter to Kronenthal, enclosing copies of the temporary restraining order, summons, and complaint. That same day, B-Dry requested the court-appointed process server, Carl J. Vogel, Jr., to serve Kronenthal. Vogel tried to serve Kronenthal on four occasions, at different times of the day, from January 6, 1998 to January 14, 1998. All of Vogel's attempts to serve Kronenthal failed.

On January 8, 1998, B-Dry requested service of process through the Greene County Sheriff's Office. The Greene County Deputy Sheriffs tried to serve Kronenthal on seven occasions, from January 8, 1998 to January 13, 1998. All of the Greene County Deputy Sheriffs' attempts to serve Kronenthal failed.

On January 16, 1998, B-Dry requested service on Kronenthal through a privately-retained process server, Jeff Klitch. Beginning on January 17, 1998, Klitch tried to serve Kronenthal on approximately 20 occasions within a two-week period. All of Klitch's attempts to serve Kronenthal failed. Klitch reported that Kronenthal was present on more than half of the occasions, but simply refused to answer the door. On one occasion, Kronenthal allegedly called Klitch and said, "You ain't serving no fucking papers on me motherfucker!"

B-Dry had requested service of process on Kronenthal by certified mail on January 7, 1998. The certified mail service was returned unclaimed to the clerk's office on January 20, 1998. On January 26, 1998, B-Dry requested the clerk of courts to serve Kronenthal by regular mail. On February 2, 1998, the clerk of courts journalized the certificate of mailing in the record.

Kronenthal failed to appear at the scheduled preliminary injunction hearing, and a preliminary injunction was issued against him. Additionally, Kronenthal never filed an answer to B-Dry's Verified Complaint. Consequently, on March 3, 1998, B-Dry filed a Motion for Default Judgment and Permanent Injunctive Relief, submitting the affidavit of its counsel in support of its request for attorney fees. The trial court granted B-Dry's motion the same day, along with its request for attorney fees.

On March 30, 1998, Kronenthal, now represented by new counsel, filed a Motion for Relief From Judgment, requesting the trial court to set aside the default judgment that had been entered against him. In support of his motion, Kronenthal informed the trial court that he had filed a complaint against B-Dry and its owners, Joseph Bevilacqua and Joseph Garfinkel, in the Greene County Common Pleas Court, on January 26, 1998, and that he had obtained service of process on B-Dry and its owners, on January 29, 1998.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wilson v. Ohio Department of Rehabilitation & Correction
597 N.E.2d 1148 (Ohio Court of Appeals, 1991)
In Re Mason
688 N.E.2d 552 (Ohio Court of Appeals, 1996)
Michaels Building Co. v. Cardinal Federal Savings & Loan Bank
561 N.E.2d 1015 (Ohio Court of Appeals, 1988)
Franklin v. Franklin
449 N.E.2d 457 (Ohio Court of Appeals, 1981)
Post v. Post
586 N.E.2d 185 (Ohio Court of Appeals, 1990)
John Weenink & Sons Co. v. Court of Common Pleas
82 N.E.2d 730 (Ohio Supreme Court, 1948)
Miller v. Court of Common Pleas
54 N.E.2d 130 (Ohio Supreme Court, 1944)
Jenkins v. Keller
216 N.E.2d 379 (Ohio Supreme Court, 1966)
Morrison v. Steiner
290 N.E.2d 841 (Ohio Supreme Court, 1972)
GTE Automatic Electric, Inc. v. ARC Industries, Inc.
351 N.E.2d 113 (Ohio Supreme Court, 1976)
State ex rel. Phillips v. Polcar
364 N.E.2d 33 (Ohio Supreme Court, 1977)
Maryhew v. Yova
464 N.E.2d 538 (Ohio Supreme Court, 1984)
State ex rel. Racing Guild v. Morgan
476 N.E.2d 1060 (Ohio Supreme Court, 1985)
National Mutual Insurance v. Papenhagen
505 N.E.2d 980 (Ohio Supreme Court, 1987)
Griffey v. Rajan
514 N.E.2d 1122 (Ohio Supreme Court, 1987)
State ex rel. Sellers v. Gerken
647 N.E.2d 807 (Ohio Supreme Court, 1995)
Byard v. Byler
658 N.E.2d 735 (Ohio Supreme Court, 1996)
Time Warner AxS v. Public Utilities Commission
75 Ohio St. 3d 229 (Ohio Supreme Court, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
B-Dry System v. Kronenthal, Unpublished Decision (6-30-1999), Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-dry-system-v-kronenthal-unpublished-decision-6-30-1999-ohioctapp-1999.