Blake v. Blake

Ohio Court of Appeals·Decided July 27, 2026·No. 17-26-01·Published

Opinion

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT

SHELBY COUNTY

KARA BLAKE, ET AL., PLAINTIFFS-APPELLEES, CASE NO. 17-26-01 v.

RODNEY BLAKE III,

DEFENDANT-APPELLEE, OPINION AND JUDGMENT ENTRY

-And-

AMY BLAKE, DEFENDANT-APPELLANT.

Appeal from Shelby County Common Pleas Court General Division

Trial Court No. 24CV000067

Judgment Affirmed

Date of Decision: July 27, 2026

APPEARANCES:

James Papakirk for Appellant Richard W. Schulte and Stephen D. Behnke for Appellee

WALDICK, J.

{¶1} Defendant-appellant, Amy Blake, appeals the judgment of the Shelby County Court of Common Pleas dissolving a corporation under R.C. 1701.91, entered by the trial court on December 12, 2025 pursuant to partial summary judgment granted in favor of plaintiff-appellee, Kara Blake. For the reasons set forth below, we affirm.

{¶2} This action originated on March 1, 2024, when Kara Blake (“Kara”)

and Rex Blake (“Rex”) filed a verified complaint against Rodney Blake III (“Rodney”), Amy Blake (“Amy”), and Blakeacres, Inc. (“Blakeacres”). The complaint asserted that Kara, Rex, Rodney, and Amy are siblings and that Blakeacres is an Ohio corporation with its principal place of business in Sidney, Ohio. The complaint further asserted that Kara, Rex, Rodney, and Amy are the shareholders and directors of Blakeacres.

{¶3} As set forth in the complaint, Blakeacres’ corporate focus is the ownership and operation of farms in Shelby County, Ohio, and the complaint listed several parcel numbers relating to farms owned by Blakeacres in that county. The complaint asserted that, as part of Blakeacres, there is an operating account in which the corporation is required to deposit all fall harvest proceeds, an installment loan payment, and monthly rental income from which it pays operating expenses, including real estate taxes, insurance, water and sewer charges, and property

management fees, among other things. The complaint further asserted that Blakeacres was solvent and current in its financial obligations.

{¶4} However, the complaint alleged that Kara, Rex, Rodney, and Amy could no longer agree as to how Blakeacres should be owned or operated, that the four of them were deadlocked as directors in the management of corporate affairs, and that the four were unable to break the deadlock due to each of them having equal voting rights as shareholders. The complaint alleged that dysfunction among the four siblings was so prevalent that they could not even agree on a time or place to have an annual meeting. The complaint alleged that, for example, Amy would refuse to accept notice by emails or texts and otherwise declined every date or time suggested for purposes of scheduling a meeting. The complaint alleged that Rodney was similarly evasive. The complaint asserted that, without a meeting, Blakeacres’ owners could not lawfully conduct business.

{¶5} The complaint concluded that, due to the ongoing disputes and disagreements between the four siblings, it was not possible or reasonably practicable for Blakeacres to continue to operate and carry on its business activities in conformity with the governing corporate documents, with Kara and Rex positioned on one side of the deadlock and with Rodney and Amy on the other side of the deadlock.

{¶6} On the basis of those allegations, the complaint asserted that Kara and Rex were entitled to have Blakeacres judicially dissolved and liquidated pursuant to

R.C. 1701.91. The complaint therefore requested a judgment dissolving the corporation, ordering an independent accounting of the corporation, and awarding costs, expenses, and attorneys’ fees stemming from filing the action.

{¶7} On April 12, 2024, the plaintiffs filed a motion seeking the immediate appointment of a receiver to manage Blakeacres and requesting injunctive relief restraining the defendants from acting on behalf of the corporation.

{¶8} On April 15, 2024, the trial court granted a temporary restraining order against Rodney and Amy, prohibiting them from acting on behalf of the corporation, and ordering them to cease certain conduct relating to allegedly unlawful use of property owned by the corporation. On April 15, 2024, the trial court also filed a judgment entry appointing a receiver over the corporation.

{¶9} On April 17, 2024, Rodney filed an answer to the complaint and, on May 3, 2024, Amy filed her answer to the complaint.

{¶10} Over a year of pretrial proceedings then ensued, during which time the parties engaged in a voluminous and contentious motion practice and discovery process.

{¶11} On June 30, 2025, Kara filed a motion for partial summary judgment pursuant to Civ.R. 56, asserting that summary judgment was appropriate as to Count I of the complaint, in which Kara and Rex sought dissolution of Blakeacres. The motion argued that no genuine issue of material fact existed as to whether the

requisite standards necessary for judicial dissolution of the corporation under R.C. 1701.91 had been met.

{¶12} On July 28, 2025, Amy filed a memorandum in opposition to the motion for partial summary judgment and requested an evidentiary hearing be held on the plaintiffs’ complaint seeking judicial dissolution of the corporation.

{¶13} On August 4, 2025, Kara filed a reply to Amy’s memorandum in opposition to the motion for partial summary judgment.

{¶14} On December 12, 2025, the trial court filed a judgment entry granting Kara’s motion for partial summary judgment. In that decision, the trial court found that no genuine issue of material fact existed as to whether the corporate governance of Blakeacres was deadlocked to such an extent that the four shareholders and directors could not continue in business together. The trial court further found that, based on the entire record, “it is clear that the most basic deadlock of all in the management of corporate affairs, namely whether the corporate entity should continue to exist, has occurred between Plaintiffs and Defendants.” (Order Granting Plaintiff’s Motion for Partial Summary Judgment, Docket No. 273). Accordingly, the trial court found that a judicial dissolution of Blakeacres was permissible pursuant to R.C. 1701.91, and ordered that the receiver begin efforts to dissolve the corporation, file periodic reports as directed by the court, and file a final report upon completion of the process.

{¶15} On January 12, 2026, Amy filed this appeal, in which she raises one assignment of error.

Assignment of Error

The Trial Court erred in granting Plaintiff-Appellee’s Motion for Partial Summary Judgment under Civil Rule 56 without conducting an evidentiary hearing as plainly prescribed by statute R.C. 1701.91.

{¶16} In the sole assignment of error, Amy argues that the trial court erred when it granted partial summary judgment ordering that the corporation at issue, Blakeacres, Inc., be dissolved. Specifically, Amy asserts that R.C. 1701.91, the statute authorizing judicial dissolution of corporations under certain circumstances set forth therein, requires that a hearing be held before such dissolution may be ordered. In support of her claim, Amy relies on language in R.C. 1701.91 referencing a hearing and, further, argues that Ohio case law dictates that a hearing must be held before judicial dissolution of a corporation may be ordered under that statute. In sum, Amy argues that dissolution of a corporation under R.C. 1701.91 may not be granted pursuant to summary judgment.

{¶17} Civ.R. 56(A) governs summary judgment and provides, in relevant part:

A party seeking to recover upon a claim, counterclaim, or cross-claim or to obtain a declaratory judgment may move with or without supporting affidavits for a summary judgment in the party’s favor as to all or any part of the claim, counterclaim, cross-claim, or declaratory judgment action. * * *

{¶18} Civ.R. 56(C) provides, in relevant part:

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