Capitol Mtg. Svcs. v. Hummel, Unpublished Decision (8-20-2002)

CourtOhio Court of Appeals
DecidedAugust 20, 2002
DocketNo. 01AP-1104 (Regular Calendar).
StatusUnpublished

This text of Capitol Mtg. Svcs. v. Hummel, Unpublished Decision (8-20-2002) (Capitol Mtg. Svcs. v. Hummel, Unpublished Decision (8-20-2002)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Capitol Mtg. Svcs. v. Hummel, Unpublished Decision (8-20-2002), (Ohio Ct. App. 2002).

Opinion

OPINION
Defendants-appellants, Jon Hummel, and his attorney, appellant John W. Ferron, appeal from the following decisions and entri es of the Franklin County Court of Common Pleas:

(1) the trial court's January 6, 2000 Decision and Entry quashing Defendant's subpoenas issued to David S. Kessler and the recor ds custodian of Blaugrund, Herbert Martin;

(2) the trial court's February 16, 2000 Journal Entry;

(3) the trial court's February 17, 2000 Order of Reference;

(4) the trial court's May 4, 2000 Decision and Entry overr uling Defendant's Motion for Rescission;

(5) the trial court's June 2, 2000 Decision and Entry Adopting Magistrate's Decision of May 15, 2000 and Overruling Defendant's Motion for Reconsideration of the Court's May 4, 2000 Decis ion and Entry;

(6) the trial court's May 21, 2001 (filed May 22, 2001) Decision and Entry: Overruling Defendant's Objections to the Magistrate's Decision of May 15, 2000 and Adopting the Magis trate's Decision of May 15, 2000; and

(7) The trial court's August 23, 2001 (filed August 27, 2001) Decision and Entry Denying Defendant's and His Counsel's May 29, 2001 Request for the Court's Issuance of Separate Findings of Fact and C onclusions of Law.

For the reasons that follow, we affirm.

This is a sanctions matter that has been before this court once before. See Capitol Mortgage Services, Inc. v. Hummel (Feb. 22, 2001), Franklin App. No. 00AP-734. The following facts are relevant and, for the most part, taken from the earlier appeal.

On August 20, 1998, Capitol Mortgage Services, Inc. ("Capitol"), filed a lawsuit against Jon Hummel, its former employee. Capitol alleged that Mr. Hummel had violated the terms of a covenant not to compete when Mr. Hummel had accepted employment with Macloud Financial, Inc. ("Macloud"). Capitol sought both monetary damages and injunctive relief. Counsel for Capitol served subpoenas for depositions for September 1, 1998 and a list of documents to be brought to the depositions. Apparently, Capitol filed lawsuits against two other employees of Macloud at the same time and scheduled depositions with respect to these other two employees for the same date.

Counsel for Macloud filed motions to quash the subpoenas issued to Macloud on August 28, 1998. Counsel for Capitol responded with a memorandum contra on September 1, 1998 and requested sanctions under Civ.R. 45(E) because Macloud had not provided the documents requested.

On September 2, 1998, attorneys John W. Ferron and Sloan T. Spalding entered appearances as counsel for Jon Hummel. Apparently, the same attorneys also entered appearances on behalf of the other two employees, Len Finelli and Steve Gombosch. The attorneys moved to consolidate the three lawsuits. Counsel for Capitol resisted the consolidation, but the motion was sustained.

On October 5, 1998, an answer and counterclaim was filed on behalf of Mr. Hummel and the other named defendants.

On October 14, 1998, the defendants filed a motion for partial summary judgment. In the meantime, disagreements about discovery continued and Capitol filed a motion seeking additional time to respond to the defendants' discovery requests. Counsel for the three former employees resisted an extension of time, filing a memorandum contra on November 6, 1998. On November 12, 1998, counsel for Capitol filed a reply memorandum. Eventually, a protective order was granted.

In the meantime, settlement negotiations were being pursued, with Macloud and its counsel being involved in the negotiations. At some point in time, a question arose as to whether Attorney Ferron still represented Steve Gombosch. This question was presented in the context of whether or not Mr. Gombosch had accepted an offer of settlement against `s recommendation.

On December 10, 1998, the trial court entered an amended case scheduling order, setting forth deadlines for disclosure of witnesses and various other requirements. Trial was scheduled for August 1999. The order was served on and Mr. Spalding as attorneys for the named defendants.

On January 6, 1999, counsel for Capitol filed its initial disclosure of witnesses and served a copy of the document upon.

On February 3, 1999, new counsel was entered on behalf of a third-party defendant who had been named. Again, was served as counsel for the defendants.

On February 5, 1999, acting as counsel for Len Finelli and Jon Hummel, filed a motion requesting that the law firm which represented Capitol be barred from further representation of Capitol on a theory that the firm had communicated with Steve Gombosch while still represented Mr. Gombosch.

Discovery was stayed while the motion was awaiting a ruling.

On March 1, 1999, counsel for Capitol filed a memorandum contra and an affidavit signed by Mr. Gombosch regarding the dates of his representation by and Mr. Gombosch's views of when the attorney-client relationship ended. Mr. Gombosch also alleged that he had not told anyone except his wife and his new attorney about any conversations he had had with.

On April 5, 1999, the trial judge overruled the motion to bar representation. In the trial court's April 5, 1999 entry, the trial court specifically noted that had failed to disclose to the court the existence of Mr. Gombosch's December 18, 1998 letter firing him.

On August 30, 1999, counsel for Capitol filed a motion seeking sanctions under Civ.R. 11 and R.C. 2323.51 and requested a hearing no later than 21 days after entry of judgment. Counsel for Capitol alleged that the motion seeking disqualification of the firm had been frivolous.

Discovery resumed and the parties resumed having difficulty in that area of the lawsuit. The trial date was delayed until February 14, 2000.

A hearing on the motion for sanctions was scheduled and rescheduled before three different magistrates. Attorney Ferron subpoenaed witnesses for a hearing regarding the motion scheduled for January 10, 2000. One of the witnesses was the attorney for Macloud, who was commanded to bring a variety of documents regarding the settlement involving Mr. Gombosch. The attorney and his firm responded with a motion to quash.

The law firm Attorney Ferron had been seeking to disqualify also was subpoenaed. It also filed a motion to quash. On January 6, 2000, the trial court ruled on the motions to quash the day after they were filed and before Attorney Ferron had an opportunity to respond. The trial judge also restricted the scope of the hearing before the magistrate "to the determination of the financial sanction to be imposed against Attorney Ferron and/or defendant as a result of: (1) the filing of the Motion to Disqualify and Bar Representation; and (2) failure to cooperate with discovery."

On January 14, 2000, counsel for Macloud filed a motion seeking "reimbursement of expenses associated with subpoena issued by defendant to movant." filed a memorandum contra in response. Counsel for Macloud filed a reply.

On February 8, 2000, Capitol and Jon Hummel filed a stipulation of dismissal of the underlying lawsuit and a stipulation of withdrawal of all pending motions "filed by either party."

On February 16, 2000, the trial court referred the motion filed on behalf of Macloud to a magistrate "to determine the following: (1) whether Attorney Kessler and his law firm were, in fact, subjected to an undue burden by defendant and Attorney Ferron in their issuance of the subpoenas; and (2) if so, the appropriate amount of the sanctions to be assessed against defendant and/or Attorney Ferron."

The parties disagreed as to whether the settlement and dismissal of the underlying case also disposed of the motion filed by Attorney Kessler.

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Capitol Mtg. Svcs. v. Hummel, Unpublished Decision (8-20-2002), Counsel Stack Legal Research, https://law.counselstack.com/opinion/capitol-mtg-svcs-v-hummel-unpublished-decision-8-20-2002-ohioctapp-2002.