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

2012 Ohio 1324
CourtOhio Court of Appeals
DecidedMarch 28, 2012
Docket25622
StatusPublished
Cited by9 cases

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

Opinion

[Cite as Carnegie Cos., Inc. v. Summit Properties, Inc., 2012-Ohio-1324.]

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. 2

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 3

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. 4

{¶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 5

first time on appeal. Harris at ¶ 10, citing State ex rel. Ohio Civ. Serv. Employees Assn.,

AFSCME, Local 11, AFL-CIO v. State Emp.

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