CTI Audio, Inc. v. Fritkin-Jones Design Group, Inc.

760 N.E.2d 842, 144 Ohio App. 3d 449, 2001 Ohio App. LEXIS 2738
CourtOhio Court of Appeals
DecidedJune 22, 2001
DocketNo. C.A. Case No. 2001CA1, T.C. Case No. 99-350.
StatusPublished
Cited by5 cases

This text of 760 N.E.2d 842 (CTI Audio, Inc. v. Fritkin-Jones Design Group, 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
CTI Audio, Inc. v. Fritkin-Jones Design Group, Inc., 760 N.E.2d 842, 144 Ohio App. 3d 449, 2001 Ohio App. LEXIS 2738 (Ohio Ct. App. 2001).

Opinion

Grady, Judge.

This is an appeal from a summary judgment entered by the court of common pleas in favor of a defendant on a finding that the plaintiff is barred by the doctrine of res judicata from litigating the action.

Plaintiff-appellant, CTI Audio, Inc. (“CTI”), is a successor to Valor Enterprises, Inc. (“Valor”), the assets of which were acquired by CTI in 1998. In the year prior, 1997, Valor had entered into a contract with defendant-appellee, FritkinJones Design Group, Inc. (“Fritkin-Jones”), for the design and construction of an exhibit booth for use at trade shows.

Fritkin-Jones delivered the booth to a trade show location designated by Valor, where it was used. Fritkin-Jones removed the booth when the show concluded and returned the booth to its facility for storage. Fritkin-Jones thereafter refused to turn over the booth to Valor, claiming that Valor had breached their contract. Valor disputed the claim and demanded delivery of the booth.

CTI, as Valor’s successor, commenced an action in replevin against FritkinJones in the Court of Common Pleas of Miami County in case No. 99-240. The pleadings indicated an address in Ohio for CTI and an address in Illinois for Fritkin-Jones. It apparently also indicated that the booth was in Nevada. Fritkin-Jones moved to dismiss pursuant to Civ.R. 12(B)(2), claiming that the court lacked personal jurisdiction. CTI did not respond. On August 24, 1999, the court dismissed CTI’s action, finding that the pleadings failed to indicate the minimum contracts with Ohio necessary to confer personal jurisdiction on the court over Fritkin-Jones in the dispute involved.

*451 CTI commenced this action against Fritkin-Jones in case No. 99-350 in the Court of Common Pleas of Miami County on September 15, 1999, three weeks after the court dismissed CTI’s prior action in case No. 99-240. In this subsequent action, CTI pleaded claims for relief in replevin and for breach of contract. In respect to jurisdiction, the complaint further alleged, inter alia, that “[t]he Installment Sales Contract entered into between Valor Enterprises and Defendant (Fritkin-Jones) was entered into at Valor’s place of business in Miami County, Ohio.” A copy of the purported written contract was attached to the complaint, along with an affidavit of the president of Valor.

Fritkin-Jones answered, admitting the contract and certain aspects of the transaction, but denying liability. Among numerous affirmative defenses, Fritkin-Jones pleaded lack of jurisdiction and res judicata.

Fritkin-Jones moved for summary judgment on its res judicata defense, arguing that the court’s determination in case No. 99-240 that it lacked personal jurisdiction over Fritkin-Jones precluded relitigation of that issue in the current action. CTI disputed the claim, arguing that res judicata does not apply. CTI also pointed to the affidavit of Valor’s president attached to CTI’s complaint, in which he stated that the contract between Valor and Fritkin-Jones “was executed at Valor’s place of business located in Piqua, Ohio.”

The trial court granted Fritkin-Jones’ motion for summary judgment, holding that res judicata operates to bar the claim for personal jurisdiction necessary to CTI’s action on its claims for relief. CTI filed a timely notice of appeal. It presents three assignments of error, which state:

First Assignment of Error
“It was error for the court below to dismiss plaintiff-appellant’s complaint against defendant-appellee because Ohio law regarding res judicata does not bar plaintiff-appellant’s claim.”
Second Assignment of Error
“Because the previous case was not dismissed on its merits, it was error for the court below to hold res judicata bars the present action.”
Third Assignment of Error
“It was error for the court below to grant summary judgment [to] defendant appellee because the principles of equity prohibit the present case from being barred by the doctrine of res judicata.”

The foregoing assignments of error present but a single issue: whether the trial court erred when it applied the doctrine of res judicata. Therefore, the three assignments will be considered together.

*452 The doctrine of res judicata holds that a valid, final judgment rendered upon the merits bars all subsequent actions based upon any claim arising out of the transaction or occurrence that was the subject matter of the previous action. Grava v. Parkman Turp. (1995), 73 Ohio St.3d 379, 653 N.E.2d 226. “The doctrine of res judicata involves both claim preclusion (historically called estoppel by judgment in Ohio) and issue preclusion (traditionally known as collateral estoppel).” Id. at 381, 653 N.E.2d at 228. Because the prior action brought by CTI against Fritkin-Jones was dismissed without a judgment on the merits, only the issue-preclusion prong of res judicata can apply. Berry v. Berry (July 28, 1993), Montgomery App. No. 13746, unreported, 1993 WL 295096. Issue preclusion operates to collaterally estop the same parties from relitigating in a subsequent action a point of law or fact that was detex-mined in a prior action between the parties or their privies. Trautwein v. Sorgenfrei (1979), 58 Ohio St.2d 493, 12 O.O.3d 403, 391 N.E.2d 326.

The particular “issue” that the court held is px-ecluded by its decision in the prior case is whether the court possesses personal jurisdiction over FritkinJones necessary to determine the claims for relief brought against it by CTI. Defendant-appellee Fritkin-Jones did not argue a failure of sex-vice. Therefore, personal jurisdiction may exist if Ohio’s “long-arm statute” applies. U.S. Sprint Communications Co. v. Mr. K’s Foods, Inc. (1994), 68 Ohio St.3d 181, 624 N.E.2d 1048. That provision, R.C. 2307.382, states:

“(A) A court may exercise pex-sonal jurisdiction over a person who acts directly or by an agent, as to a cause of action arising from the person’s:
“(1) Transacting any business in this state;
“(2) Contracting to supply services of goods in this state[.]”

Both the complaint that CTI filed in the cmrent action and the affidavit attached to the complaint demonstrate grounds on which the court may exercise long-ax-m jurisdiction over Fritkin-Jones on the claims for relief involved. The question presented is whether CTI is nevertheless estopped by the court’s decision in the prior action from relitigating the issue of personal jurisdiction.

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Cite This Page — Counsel Stack

Bluebook (online)
760 N.E.2d 842, 144 Ohio App. 3d 449, 2001 Ohio App. LEXIS 2738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cti-audio-inc-v-fritkin-jones-design-group-inc-ohioctapp-2001.