Clark v. Corwin

2018 Ohio 1169
CourtOhio Court of Appeals
DecidedMarch 30, 2018
Docket28455
StatusPublished
Cited by6 cases

This text of 2018 Ohio 1169 (Clark v. Corwin) 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
Clark v. Corwin, 2018 Ohio 1169 (Ohio Ct. App. 2018).

Opinion

[Cite as Clark v. Corwin, 2018-Ohio-1169.]

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

LISA MARIE CLARK C.A. No. 28455

Appellant

v. APPEAL FROM JUDGMENT ENTERED IN THE RUSSELL W. CORWIN, et al. COURT OF COMMON PLEAS COUNTY OF SUMMIT, OHIO Appellees CASE No. CV-2012-03-1723

DECISION AND JOURNAL ENTRY

Dated: March 30, 2018

SCHAFER, Presiding Judge.

{¶1} Plaintiff-Appellant, Lisa Clark appeals the order of the Summit County Court of

Common Pleas denying her motion to enforce settlement agreement and request for sanctions.

For the reasons that follow, we affirm.

I.

{¶2} This is the second appeal in this matter. See Clark v. Corwin, 9th Dist. Summit

Co. 27524, 2015-Ohio-4469. After remand from the first appeal, the parties agreed to mediate

the matter and ultimately consented to a settlement. At the close of mediation, the parties signed

a mediation status report identifying the terms to be included in a more formal document

(“settlement term sheet”). However, after several months of back and forth the parties could not

agree on the exact language to be used in the formal, written settlement agreement.

Consequently, the parties filed competing motions to enforce the settlement agreement. The trial 2

court held a hearing and thereafter granted Corwin’s motion to enforce in an order filed

November 7, 2016.

{¶3} Clark filed this timely appeal, raising six assignments of error for our review. As

Clark’s first, second, and third assignments of error raise similar issues, we elect to address them

together.

II.

Assignment of Error I

The trial court erred in denying [Clark]’s motion to enforce the settlement term sheet and instead binding [Clark] to a contract for which she received no [consideration] and which contains terms to which she never agreed.

Assignment of Error II

The trial court erred by allowing [Corwin] to unilaterally add terms to a written memorialization beyond that to which the parties agreed.

Assignment of Error III

The trial court erred by binding [Clark] to a contract with people and entities she does not know, with whom she is not in privity, against whom she asserted no claims, and who are not parties to this lawsuit.

{¶4} In her first, second and third assignment of error, Clark contends that the trial

court erred when it denied her motion to enforce, erred by allowing Corwin to add terms to the

agreement, and erred by binding her to a contract with parties with whom she was not in privity

and against whom she did not assert any claims and were not parties to the lawsuit. We disagree.

{¶5} “The standard of review to be applied to a ruling on a motion to enforce a

settlement agreement depends primarily on the question presented.” Tech. Constr. Specialties,

Inc. v. New Era Builders, Inc., 9th Dist. Summit No. 25776, 2012-Ohio-1328, ¶ 18. This Court

will not overturn a trial court’s findings on an evidentiary question if there was sufficient

evidence to support such finding. Id. citing Chirchiglia v. Bur. of Workers’ Comp., 138 Ohio 3

App.3d 676, 679 (7th Dist.2000). However, if the dispute is a question of law, this Court “must

review the decision de novo to determine whether the trial court’s decision to enforce the

settlement agreement is based upon an erroneous standard or a misconstruction of the law.” New

Era Builders at ¶ 18, citing Continental W. Condominium Unit Owners Assn. v. Howard E.

Ferguson, Inc., 74 Ohio St.3d 501, 502 (1995).

{¶6} This matter involves Clark’s claims against Corwin for tortious interference with

contractual and business relationships. Prior to trial, the parties agreed to settle the matter and

signed a settlement term sheet during mediation on March 23, 2016. The trial court found that

the settlement term sheet provides as follows:

Settlement in gross su[m] of $250,000 3 checks – with separate reporting to IRS: wages to Clark, one for non-economic compensatory damages to Clark, & 1 to CG&A for attorneys’ fees for full and final release of claims and dismissal of claims in above case against defendants, with prejudice.

Plaintiff will dismiss this case with prejudice. Costs to Defendant Corwin.

1. (Defendant) to get 1st draft of the settlement agreement to (Plaintiff) w/in 1 week, (Plaintiff) to respond w/in 1 week, agreement to be finalized & signed within 30 days, & checks & fully executed settlement agreement within 21 days thereafter. 2. Full material release of claims. 3. Confidentiality 4. Non-disparagement 5. No admission liability 6. (Plaintiff) to dismiss w/ prejudice within 7 bus. days of receiving checks & signed settlement agreement.

{¶7} However, after two months of back and forth, the parties were unable agree on the

exact language to be used in the written settlement agreement. Accordingly, on July 25, 2016,

Clark filed a motion to enforce the settlement agreement and a request for interest, attorney fees,

and costs and an amended motion to enforce on September 16, 2016. In her motion, Clark

argued that Corwin was attempting to add terms to the agreement to which the parties had not 4

agreed during mediation. Specifically, Clark argued that Corwin engaged in “bad faith litigation

tactics” by attempting to include the following terms: (1) the release of parties in addition to

Corwin; (2) a confidentiality agreement for individuals other than Corwin; (3) an indemnification

provision; (4) a “21-day waiting period for the settlement checks”; and (4) a liquidated damages

provision.

{¶8} Corwin filed his own motion to enforce the settlement agreement and response to

Clark’s motion to enforce on August 31, 2016, and an amended motion to enforce and response

to Clark’s amended motion to enforce on September 27, 2016. Corwin argued therein that the

settlement reached during mediation was memorialized in a settlement agreement approved by

Clark through her counsel on May 4, 2016, or at the latest May 13, 2016. Corwin further argued

that Clark was demanding payment without first providing a fully executed settlement agreement

agreed to in the settlement term sheet signed during mediation.

{¶9} Thereafter, the trial court held a hearing on the parties’ motions. During the

hearing, Clark, Corwin, and Attorney Sarkar, on behalf of Corwin, testified as to their

understanding of the settlement agreement. The court was also provided with a binder

containing all correspondence between the parties following the March 23, 2016 mediation. In

its journal entry following the hearing, the trial court recognized that both parties asserted that

the settlement agreement memorialized in the settlement term sheet is unambiguous and reflects

the intent of the parties, but that the parties disagreed as to the meaning of two of the material

terms above. First, the parties disagreed as to whether the phrase “dismissal of claims in the

above case against defendants” and the “full material release of claims” referred only to Corwin

individually, as argued by Clark, or whether it included Corwin’s company, R.W. Corwin

Company, LLC (“R.W. Corwin Co.” ), as argued by Corwin. Second, the parties disagreed as to 5

whether the phrase “within 21 days thereafter” means that payment of the checks was due within

21 days from the date of mediation, as argued by Clark, or that payment of the checks was due

within 21 days of the date of the parties fully executing a finalized agreement, as argued by

Corwin.

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