Crocker v. Hood

681 N.E.2d 460, 113 Ohio App. 3d 478
CourtOhio Court of Appeals
DecidedAugust 14, 1996
DocketNo. 17661.
StatusPublished
Cited by13 cases

This text of 681 N.E.2d 460 (Crocker v. Hood) 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
Crocker v. Hood, 681 N.E.2d 460, 113 Ohio App. 3d 478 (Ohio Ct. App. 1996).

Opinion

Reece, Judge.

Plaintiff, Julie Crocker, appeals the Summit County Court of Common Pleas judgment rendered in favor of defendant, Dennis Hood. This court affirms.

I

On December 13, 1989, Julie Crocker sent a letter through her attorney to Dennis Hood stating she had retained counsel to represent her in a lawsuit seeking damages for alleged sexual abuse committed against her by Hood. The letter indicated that if Hood did not agree to settle the matter by December 29, 1989, Crocker would sue Hood. On December 28, 1989, Hood conveyed his interest in residential/marital property to his wife by quitclaim deed. The land was an eleven-acre parcel located in the city of Tallmadge, Ohio. The deed indicated that Hood’s wife, Shirley, paid $10 for the interest. After the conveyance, Hood continued to live on the land until five years later when he and his wife divorced.

Crocker’s lawsuit went to trial and she obtained a judgment in her favor. The amount awarded her was $150,000 in compensatory and $2,500,000 in punitive damages. This judgment remains unpaid.

On December 16, 1993, Crocker sued Hood. She alleged that Hood had fraudulently conveyed the land to his wife in order to avoid the judgment. She claimed that the conveyance rendered Hood insolvent, that the conveyance lacked adequate consideration and that Hood transferred the land to Shirley with actual intent to defraud. The trial court heard the case without a jury and found that no evidence existed to show Hood had become insolvent as a result of the transfer. The trial court also found that sufficient evidence supported the conclusion that the conveyance occurred with fair consideration. Last, the trial court found that Crocker did not prove Hood actually intended to defraud her. Crocker now appeals from this judgment.

II

Three assignments of error are raised. In the first assignment of error, Crocker argues that the trial court mistakenly found that Hood did not actually intend to commit fraud in violation of R.C. 1336.07. In the second assignment of error, Crocker contends that the trial incorrectly found that no evidence of Hood’s intentional insolvency existed. In the third assignment of error, Crocker *481 contends that the trial court mistakenly found that the conveyance was supported by adequate consideration.

For ease of discussion, we initially address the second and third assignments of error. These assignments of error deal with violations of the versions of R.C. 1336.04 and 1336.06 in effect at the time of the alleged fraud. 1 R.C. 1336.04 stated:

“Eveiy conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyance is made or the obligation is incurred without a fair consideration.” 129 Ohio Laws 1007.

“Insolvency” is defined in R.C. 1336.02, which stated in part:

“A person is insolvent when the present fair salable value of his assets is less than the amount that will be required to pay his probable liability on his existing debts as they become absolute and matured.” Id.

R.C. 1336.06 deals with consideration and provided:

“Every conveyance made and every obligation incurred without fair consideration, when the person making the conveyance or entering into the obligation intends or believes that he will incur debts beyond his ability to pay as they mature, is fraudulent as to both present and future creditors.” Id.

Crocker argues that the trial court’s judgment was incorrect because evidence existed to demonstrate that she proved Hood’s insolvency and lack of adequate consideration for the conveyance. Crocker’s argument essentially attacks the trial court’s judgment in terms of sufficiency of the evidence. In other words, she contends that she presented sufficient evidence necessary to demonstrate fraud. As such, this court reviews her argument under the applicable standard of review. The appropriate standard for testing the sufficiency of evidence in a civil trial was set forth in the syllabus of C.E. Morris Co. v. Foley Constr. Co. (1978), 54 Ohio St.2d 279, 8 O.O.3d 261, 376 N.E.2d 578:

“Judgments supported by some competent, credible evidence going to all the essential elements of the case will not be reversed by a reviewing court as being against the manifest weight of the evidence.” Id. at syllabus. See, also, Seasons Coal Co. v. Cleveland (1984), 10 Ohio St.3d 77, 80, 10 OBR 408, 411, 461 N.E.2d 1273, 1276; Chem. Bank of New York v. Neman (1990), 52 Ohio St.3d 204, 207-208, 556 N.E.2d 490, 493-95; Vogel v. Wells (1991), 57 Ohio St.3d 91, 96, 566 N.E.2d 154, 158-159.

*482 Concerning Crocker’s claim that Hood became insolvent because of the conveyance, the trial court found that no evidence existed to prove this claim. This court’s review of the record leads to the same conclusion. Crocker never introduced testimony or documentary evidence demonstrating Hood’s insolvency resulted from the conveyance of the land. Therefore, the trial court did not err as to the insolvency claim.

Crocker also claimed that the conveyance was not supported by adequate consideration. She contends that Hood transferred the land for effectively nothing, and, therefore, his wife did not endure a legal detriment necessary to establish consideration.

R.C. 1336.03 defined “fair consideration” and provided:

“Fair consideration is given for property, or obligation:

“(A) When in exchange for such property, or obligation, as a fair equivalent therefor, and in good faith, property is conveyed or an antecedent debt is satisfied; or
“(B) When such property or obligation is received in good faith to secure a present advance or antecedent debt in amount not disproportionately small as compared with the value of the property or obligation obtained.” 129 Ohio Laws 1007.

Generally, consideration necessary to support a contract may consist of either a detriment to the promisee or a benefit to the promisor. Ford v. Tandy Transp., Inc. (1993), 86 Ohio App.3d 364, 384, 620 N.E.2d 996, 1009. A detriment may consist of some forbearance, loss or responsibility given, suffered or undertaken by the promisee. Brads v. First Baptist Church of Germantown, Ohio (1993), 89 Ohio App.3d 328, 336, 624 N.E.2d 737, 743. Furthermore, any detriment, no matter how economically trifling, will support a promise. Calamari, Contracts (1970) 107, Section 55.

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Bluebook (online)
681 N.E.2d 460, 113 Ohio App. 3d 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crocker-v-hood-ohioctapp-1996.