Carnegie Cos., Inc. v. Summit Properties, Inc.

2012 Ohio 1324
Ohio Court of Appeals·Decided March 28, 2012·No. 25622·Published·Cited by 9 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

CARNEGIE COMPANIES, INC. C.A. No. 25622 Appellee

v. APPEAL FROM JUDGMENT ENTERED IN THE

SUMMIT PROPERTIES, INC., et al. COURT OF COMMON PLEAS COUNTY OF SUMMIT, OHIO

Appellants CASE No. CV 2008 02 1852

DECISION AND JOURNAL ENTRY Dated: March 28, 2012

CARR, Presiding Judge.

{¶1} Appellant, Summit Properties (“Summit”), appeals the judgment of the Summit County Court of Common Pleas, which ordered it to pay the attorney fees for appellee, Carnegie Companies, Inc. (“Carnegie”), in its prosecution of its motion to disqualify counsel. This Court affirms.

I.

{¶2} Carnegie and Summit sued one another over issues arising out of a land deal.

Before the trial court had the opportunity to address any substantive issues underlying the complaint and counterclaim, Carnegie filed a motion to disqualify opposing counsel in which it further requested an award of attorney fees. After an evidentiary hearing, the trial court granted the motion to disqualify and determined that Carnegie was entitled to an award of attorney fees based on bad faith demonstrated by the law firm of Ulmer & Berne, L.L.P. Summit appealed. This Court affirmed the trial court’s order disqualifying Ulmer & Berne. Carnegie Cos., Inc. v.

Summit Properties, Inc., 183 Ohio App.3d 770, 2009-Ohio-4655 (9th Dist.). We dismissed the appeal in part for lack of a final, appealable order, however, inasmuch as it challenged the award of attorney fees in the absence of a specific monetary award. Id.

{¶3} While the appeal was pending, Carnegie moved this Court for an award of appellate attorney fees and costs pursuant to App.R. 23 based on its allegation that Summit’s appeal was frivolous. By journal entry, this Court recognized the motion as a belated attempt by Carnegie to supplement its appellate brief with an argument raising an alternate theory. Carnegie Cos., Inc. v. Summit Properties, Inc., 9th Dist. No. 24553 (Sep. 9, 2009). We wrote that, although Summit did not prevail on its appeal from the trial court’s order granting Ulmer & Berne’s disqualification, it nevertheless presented a reasonable question for review. Accordingly, because we concluded that Summit’s appeal was not frivolous, we denied Carnegie’s motion for an award of appellate attorney fees.

{¶4} Subsequently, Carnegie moved the trial court for a hearing on the amount of the award of attorney fees to which the trial court determined it was entitled based on Ulmer & Berne’s bad faith. Summit opposed the motion, arguing that the issue of attorney fees was moot pursuant to the law of the case doctrine. Carnegie filed a reply in support of its motion and Summit filed a sur-reply.

{¶5} On February 25, 2010, the parties filed a joint stipulation of partial dismissal, dismissing the underlying substantive claims, preserving only the issue of the award of attorney fees for further trial court consideration. On August 30, 2010, the parties filed a joint stipulation as to the reasonableness of the amount of attorney fees and expenses expended by Carnegie to prosecute its motion for disqualification. The stipulation expressly reserved unto Summit the right to appeal the trial court’s finding of sanctionable misconduct in its November 26, 2008

order and Carnegie’s right to recover attorney fees and expenses in connection with its motion for disqualification.

{¶6} On September 3, 2010, Carnegie moved the trial court for entry of judgment in its favor, asserting that it was entitled to an award of attorney fees and expenses pursuant to the November 26, 2008 order in the amount to which the parties had stipulated. Summit quickly filed a memorandum in opposition, asserting that the parties’ stipulation as to the reasonableness of the amount of attorney fees and expenses expended by Carnegie did not constitute a concession by Summit that Carnegie was legally entitled to such an award. On September 21, 2010, the trial court issued an order granting judgment in favor of Carnegie against Summit and Ulmer & Berne, jointly and severally, in the stipulated amount of $79,856.26. Summit has appealed, raising three assignments of error for review.

II.

ASSIGNMENT OF ERROR I

THE TRIAL COURT ERRED TO THE PREJUDICE OF SUMMIT AND ULMER BY FINDING “BAD FAITH” ON THE PART OF ULMER IN FAILING TO VOLUNTARILY WITHDRAW FROM THE REPRESENTATION OF SUMMIT IN CASE NO. CV 2008 02 1852 SINCE NO CLAIM OF “BAD FAITH” WAS MADE BY CARNEGIE PRIOR TO THE COURT’S DETERMINATION.

{¶7} Summit argues that the trial court erred by awarding attorney fees to Carnegie on the basis of Ulmer & Berne’s bad faith because Carnegie did not make a claim of bad faith and Summit, therefore, did not have notice of the need to defend against such a claim. This Court declines to address the substantive merits of this argument because Summit failed to raise the issue below.

{¶8} This Court has stated:

When reviewing arguments on appeal, this Court cannot consider issues that are raised for the first time on appeal. The Ohio Supreme Court has stated that other than issues of subject matter jurisdiction, “reviewing courts do not consider questions not presented to the court whose judgment is sought to be reversed.”

Goldberg v. Indus. Comm., 131 Ohio St. 399, 404 (1936). It is well established that “an appellate court need not consider an error which a party complaining of the trial court’s judgment could have called, but did not call, to the trial court’s attention at a time when such error could have been avoided or corrected by the trial court.” State v. Williams, 51 Ohio St.2d 112, 117 (1997).

Harris v. Akron, 9th Dist. No. 24499, 2009-Ohio-3865, ¶ 9.

{¶9} Here, once this Court disposed of Summit’s first appeal, the trial court regained jurisdiction over the case. We clearly stated that the issue of the propriety of an award of attorney fees and expense for legal work performed on behalf of Carnegie in the prosecution of its motion for disqualification before the trial court was not final. Carnegie, 2009-Ohio-4655, at

¶ 19 and 65. Accordingly, the November 26, 2008 order finding bad faith by Ulmer & Berne and granting an award of attorney fees was merely interlocutory and the trial court was free to reconsider or modify it. Simkanin v. Simkanin, 9th Dist. No. 22719, 2006-Ohio-762, ¶ 7 (recognizing that Civ.R. 54(B) allows a trial court to reconsider interlocutory orders); see also Pitts v. Ohio Dept. of Transp., 67 Ohio St.2d 378, 379 (1981), fn. 1.

{¶10} Although Summit continued to oppose the entry of an award of attorney fees for Carnegie after the resolution of the first appeal, it did so only on the basis of arguments that such an award was barred by the law of the case doctrine and that the evidence did not support a finding of bad faith. Summit never opposed the entry of such an award for the reason that it had no notice of the need to defend against a claim of bad faith. By failing to raise any argument before the trial court that Carnegie had failed to allege bad faith so that Summit had no notice of its need to defend against such a claim, Summit forfeited its right to raise this argument for the

first time on appeal. Harris at ¶ 10, citing State ex rel. Ohio Civ. Serv. Employees Assn., AFSCME, Local 11, AFL-CIO v. State Emp. Relations Bd., 104 Ohio St.3d 122, 2004-Ohio- 6363, ¶ 10. Accordingly, Summit’s first assignment of error is overruled.

ASSIGNMENT OF ERROR II

THE TRIAL COURT ERRED TO THE PREJUDICE OF SUMMIT AND ULMER BY FAILING TO FOLLOW THE LAW OF THE CASE.

{¶11} Summit argues that the trial court erred by awarding attorney fees and expenses to Carnegie based on the law of the case doctrine. This Court disagrees.

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Carnegie Cos., Inc. v. Summit Properties, Inc., 2012 Ohio 1324 (Ohio Ct. App. 2012).

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