Board of Trustees of Sinclair Community College District v. Farra

929 N.E.2d 1105, 186 Ohio App. 3d 662
CourtOhio Court of Appeals
DecidedMarch 19, 2010
DocketNo. 23340
StatusPublished
Cited by2 cases

This text of 929 N.E.2d 1105 (Board of Trustees of Sinclair Community College District v. Farra) 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
Board of Trustees of Sinclair Community College District v. Farra, 929 N.E.2d 1105, 186 Ohio App. 3d 662 (Ohio Ct. App. 2010).

Opinion

Fain, Judge.

{¶ 1} Defendant-appellants, Donald and Sharon Farra, appeal from a judgment denying their motion for attorney fees that were allegedly incurred as a result of, and in the course of defending, an appropriation action between the Farras and the Board of Trustees of Sinclair Community College District (“Sinclair”). The Farras contend that attorney fees are appropriate under Section 19, Article I of the Ohio Constitution, or pursuant to the amended version of R.C. 163.21(C)(1), which became effective on October 10, 2007.

{¶ 2} We conclude that the trial court did not err in refusing to award attorney fees and costs. Ohio follows the rule that attorney fees are not recoverable in the absence of a statute, an enforceable contract, or bad faith. Prior to the amendments to R.C. Chapter 163, R.C. 163.21(B)(1)(b) allowed attorney fees to be recovered in appropriation actions upon a finding that an agency is not entitled to appropriate a particular property. R.C. 163.21(C)(1), as amended, allows recov[664]*664ery when an award of compensation is more than 125 percent of the agency’s good-faith offer. The General Assembly specifically indicated that the amendments do not apply to cases pending on the effective date of the amendments. Because the case before us was pending on the effective date of the amendments to R.C. Chapter 163, R.C. 163.21(C)(1), as amended, does not apply. Attorney fees are also not constitutionally mandated under existing law. Accordingly, the judgment of the trial court is affirmed.

I

{¶ 3} In March 2006, Sinclair filed an appropriation action against Donald and Sharon Farra, after Sinclair had unsuccessfully attempted to purchase three parcels of property that the Farras owned in what is called the Bank Street area of Dayton, Ohio. Previously, in June 2004, Sinclair had passed a resolution indicating that it needed to appropriate the Farras’ land and several other parcels in the Bank Street area, for purposes of future expansion and parking.

{¶ 4} Negotiations between Sinclair and the Farras have been protracted and acrimonious. The record indicates that when Sinclair’s counsel sent Mr. Farra courteous letters offering to purchase the property, Mr. Farra responded with personal insults, threats to spend huge sums of money in litigation, and an attitude that showed no interest in negotiating. After unsuccessfully attempting to negotiate, Sinclair filed two appropriation actions against the Farras. The actions were then consolidated and considered as part of the same proceeding.

{¶ 5} The pleadings in the appropriation actions are contentious and contain disparaging remarks by both sides that do no credit to the parties or to the legal profession. The visiting judge who presided over the compensation trial also noted that he had observed an “occasionally somewhat less than professional demeanor of Sinclair’s counsel toward the defendants and their counsel.” The judge noted that this conduct, while not sufficient to constitute bad faith, falls within the category of “overzealous representation.”

{¶ 6} Two matters were contested in the trial court: (1) whether the appropriation is a necessity and (2) if so, what compensation should be paid for the property. After hearing testimony, a magistrate concluded that the appropriation is a necessity. In January 2008, the trial court overruled the Farras’ objections and adopted the decision of the magistrate. The issue of compensation was then tried to a jury, which awarded the Farras $366,400 in compensation for their properties. Sinclair appealed the amount of compensation, and the Farras cross-appealed the judgment that the taking was necessary. On February 19, 2010, we affirmed the trial court’s judgment. Bd. of Trustees of Sinclair Community College Dist. v. Farra, Montgomery App. No. 22886, 2010-Ohio-568, 2010 WL 597098.

[665]*665{¶ 7} During the course of the appeal, the Farras filed a motion in the trial court requesting approximately $172,708 in attorney fees and expenses. Their request was based on Section 19, Article I of the Ohio Constitution, R.C. 163.21(C)(1), and Sinclair’s alleged bad faith. The trial court overruled the motion for attorney fees, concluding that the attorney-fees provision in R.C. 163.21(C) does not apply to appropriation proceedings filed prior to October 10, 2007. The trial court also rejected the contention that attorney fees are constitutionally required. Finally, the court held that Sinclair had not acted in bad faith. The Farras appeal from the judgment of the trial court.

II

{¶ 8} The Farras’ sole assignment of error is as follows:

{¶ 9} “The trial court erred when it determined that the defendants were not entitled to attorney fees because of the Ohio Constitution and R.C. 163.21.”

{¶ 10} Under this assignment of error, the Farras contend that the trial court erred in determining that they are not entitled to attorney fees under the Ohio Constitution and R.C. 163.21. The Farras do not challenge the trial court’s holding regarding alleged bad faith. Accordingly, we will not consider that portion of the trial court’s decision.

{¶ 11} The Farras’ first argument is that attorney fees should be awarded in appropriation cases due to the admonishment in Norwood v. Horney, 110 Ohio St.3d 353, 2006-Ohio-3799, 853 N.E.2d 1115, that property rights are to be held inviolate and that owners should be compensated for every injury resulting from deprivation of their property. We disagree that an award of attorney fees is constitutionally mandated.

{¶ 12} The Ohio Supreme Court has stressed that “Ohio has long adhered to the ‘American rule’ with respect to recovery of attorney fees: a prevailing party in a civil action may not recover attorney fees as a part of the costs of litigation.” Wilborn v. Bank One Corp., 121 Ohio St.3d 546, 2009-Ohio-306, 906 N.E.2d 396, ¶ 7. Exceptions do exist to this rule. For example, “[attorney fees may be awarded when a statute or an enforceable contract specifically provides for the losing party to pay the prevailing party’s attorney fees, * * * or when the prevailing party demonstrates bad faith on the part of the unsuccessful litigant * * Id. Accord Proctor, Dir., Ohio Dept. of Transp. v. Kewpee, Inc., Allen App. No. 1-08-03, 2008-Ohio-5197, 2008 WL 4455600, ¶ 31 (following the general rule in Ohio for awards of attorney fees and rejecting fee award in appropriation action, when the Ohio Department of Transportation (“ODOT”) did not act in bad faith).

[666]*666(¶ 13} In Kewpee, ODOT presented an estimate of damages to the appropriated property of $11,532, but the jury verdict was much higher — $280,200. Id. at ¶ 8, 12. The Third District Court of Appeals found no evidence of bad faith on ODOT’s part, despite the disparity in the amounts and ODOT’s awareness of problems with its appraisal. Id. at ¶ 33-34. The Third District also found no bad faith in ODOT’s failure to make any efforts to settle the case before trial. In particular, the Third District agreed with the trial court’s finding that “there was an honest difference of opinion [and t]his is the reason we have jury trials.” Id. at ¶ 35.

{¶ 14} Contrary to the Farras’ contention, the Ohio Supreme Court decision in Norwood does not alter these established rules governing attorney-fees awards.

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Bluebook (online)
929 N.E.2d 1105, 186 Ohio App. 3d 662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-of-sinclair-community-college-district-v-farra-ohioctapp-2010.