Citizens for Fair Taxation v. City of Toledo

629 N.E.2d 20, 90 Ohio App. 3d 272, 1992 Ohio App. LEXIS 4620
CourtOhio Court of Appeals
DecidedSeptember 11, 1992
DocketNo. L-91-302.
StatusPublished
Cited by2 cases

This text of 629 N.E.2d 20 (Citizens for Fair Taxation v. City of Toledo) 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
Citizens for Fair Taxation v. City of Toledo, 629 N.E.2d 20, 90 Ohio App. 3d 272, 1992 Ohio App. LEXIS 4620 (Ohio Ct. App. 1992).

Opinion

Abood, Judge.

This is an appeal from two decisions of the Lucas County Court of Common Pleas. In the first decision, the trial court granted defendants-appellees city of Toledo et al.’s motion to dismiss those claims that were originally raised in plaintiffs-appellants Citizens for Fair Taxation et al.’s complaint and then raised again in their amended complaint. In the second decision, the trial court granted appellees’ motion for summary judgment as to those additional claims that were set forth only in appellants’ amended complaint. Appellants have appealed, setting forth the following assignments of error:

“First Assignment of Error:

“The trial court erred in granting Defendants’ Motion to Dismiss Plaintiffs’ Complaint pursuant to Civil Rule 12(B)(6).

“Second Assignment of Error:

“The trial court erred in failing to find that Chapter XIII of the Charter of the City of Toledo prohibits the City Council from enacting ex-post-facio legislation to pay a private contractor an amount in excess of $2500.00 for services previously performed under an oral agreement that did not comply with the contracting requirements of Chapter XIII.

“Third Assignment of Error:

“The trial court erred in finding, as a matter of law, that Chapter XIII of the Charter of the City of Toledo permits the City to ratify a void oral contract on the basis of a ‘moral obligation.’

“Fourth Assignment of Error:

“The trial court erred in granting Defendants’ Motion for Summary Judgment.

“Fifth Assignment of Error:

*274 “The trial court erred in [not] holding that John Gotherman’s lobbying for passage of House Bill 127 on behalf of the City of Toledo created a conflict of interest with his role as legal counsel to the Ohio Municipal League which opposed passage of the Bill.

“Sixth Assignment of Error:

“The trial court erred in failing to hold that the simultaneous representation of the City of Toledo and the OML, given the potential for disclosure of confidential information in each relationship, constituted the appearance of professional impropriety in contravention of Canon Nine of the Code of Professional Responsibility.

“Seventh Assignment of Error:

“The trial court erred in denying Plaintiffs’ Motion for Summary Judgment.

“Eighth Assignment of Error:

“The trial court erred in failing to hold that before undertaking the representa-: tion of the City of Toledo John Gotherman was obligated to disclose to the City the possible effect of his representation of the Ohio Municipal League, on the exercise of his independent professional judgment and obtain its consent to the dual representation.”

The facts giving rise to the issues raised on appeal are as follows. On September 25, 1990, the Toledo City Council passed ordinance Nos. 946-90 and 947-90 by a vote of five to four. (See Appendix.) The purpose of ordinance No. 946-90 was to authorize the appropriation and payment of $100,000 for the “fees and expenses of special counsel participating in behalf of the City’s efforts and endeavors in seeking enactment of Amended Substitute House Bill 127 by the Ohio Legislature.” The purpose of ordinance No. 947-90 was to authorize the city manager and city law director to enter into an agreement with the law firm of Calfee, Halter & Griswold to act as “special counsel in connection with the City’s efforts to seek, pursue, and otherwise advance the passage of Amended Substitute House Bill 127 in the Ohio Legislature.” Included in this ordinance was a provision for the ratification of services already provided by that firm.

On October 1,1990, appellants requested that the acting city law director apply (pursuant to R.C. 733.56 and section 113 of the City of Toledo Charter), in the name of the city, to the Lucas County Court of Common Pleas for an injunction to restrict the implementation of the two ordinances, which they claimed called for a misappropriation of funds and the execution of a contract in contravention of the city charter. The law director responded that the two ordinances were not in violation of the city charter.

*275 On October 19, 1990, appellants filed a taxpayers’ complaint against the city of Toledo, the city manager, the director of finance and the law director. The complaint alleged that prior to September 25,1990, the date of the passage of the two ordinances, the law firm of Calfee, Halter & Griswold had already submitted invoices to the city for legal fees for services performed to secure the passage of Am.Sub.H.B. No. 127 (“House Bill 127”); that at no time prior to September 25, 1990 had the city entered into a written contract for such services or had the city council authorized such a contract or appropriated funds therefor; that at all times the amount involved was in excess of $2,500; that ordinance No. 946-90 retrospectively appropriated the sum of $100,000 to pay for legal services previously performed by Calfee, Halter & Griswold; that ordinance No. 947-90 authorized the city manager and the law director to enter into an agreement retroactively for the services previously performed by that firm; and that the legal services were performed without a written contract or prior authorization by city council and, therefore, the ordinances were enacted in violation of sections 228 1 and 229 2 of the Charter of the City of Toledo and were void. Appellants requested that the trial court issue an injunction restraining the misapplication of the funds of the city and the execution of any contract made on behalf of the city in contravention of law, and that it declare ordinance Nos. 946-90 and 947-90 void. On the same day, appellants filed motions for preliminary and permanent injunctions and a request for a temporary restraining order.

On October 25, 1990, the parties signed a consent order in which they agreed that appellees would not execute a contract with Calfee, Halter & Griswold, as authorized by ordinance No. 947-90 or expend any funds, pursuant to ordinance No. 946-90, until such time as the court ruled upon plaintiffs’ motion for a preliminary injunction.

On November 5, 1990, appellees filed a motion to dismiss appellants’ complaint pursuant to Civ.R. 12(B)(6). In support of their motion, appellees argued that *276 the city charter did not prohibit the passage of the ordinances in question and, therefore, the complaint failed to state a claim for which relief could be granted.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Trout
2020 Ohio 3940 (Ohio Court of Appeals, 2020)

Cite This Page — Counsel Stack

Bluebook (online)
629 N.E.2d 20, 90 Ohio App. 3d 272, 1992 Ohio App. LEXIS 4620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-for-fair-taxation-v-city-of-toledo-ohioctapp-1992.