Cuyahoga Cty. Land Reutilization Corp. v. Cleveland

2022 Ohio 3916, 199 N.E.3d 1104
CourtOhio Court of Appeals
DecidedNovember 3, 2022
Docket111096
StatusPublished
Cited by1 cases

This text of 2022 Ohio 3916 (Cuyahoga Cty. Land Reutilization Corp. v. Cleveland) 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
Cuyahoga Cty. Land Reutilization Corp. v. Cleveland, 2022 Ohio 3916, 199 N.E.3d 1104 (Ohio Ct. App. 2022).

Opinion

[Cite as Cuyahoga Cty. Land Reutilization Corp. v. Cleveland, 2022-Ohio-3916.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

CUYAHOGA COUNTY LAND : REUTILIZATION CORP., ET AL., : Plaintiffs-Appellants/ Cross-Appellees, : No. 111096

v. :

CITY OF CLEVELAND, ET AL., :

Defendants-Appellees/ : Cross-Appellants. ____

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: November 3, 2022

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-18-903367

Appearances:

Porter, Wright, Morris & Arthur, L.L.P., Robert J. Karl, Eric B. Gallon, and Jared M. Klaus, for appellants/cross- appellees.

Mark Griffin, Cleveland Director of Law, Elena Boop, Chief Assistant Director of Law, and Shirley Tomasello, Assistant Director of Law, for appellees/cross-appellants.

EMANUELLA D. GROVES, J.:

Plaintiffs-appellants Cuyahoga County Land Reutilization Corp. (the

“Land Bank”) and CLB Services, LLC (“CLB”) (collectively, “Appellants”) appeal the trial court’s ruling finding that an asbestos abatement fee levied by defendants-

appellees city of Cleveland (the “City”), through Merle Gordon, Director of Cleveland

Department of Public Health; and David G. Hearne, Interim Commissioner of

Cleveland Division of Air Quality (collectively, “Appellees”) was authorized under

the Cleveland Codified Ordinances (“C.C.O.”). Cross-appellant City appeals the trial

court’s award of fees. For the reasons that follow, we affirm.

Factual and Procedural History

The Land Bank is a non-profit, government-purposed entity that

acquires blighted properties and either rehabilitates, sells, demolishes, or

determines other beneficial community use for the property. CLB is a wholly-owned

subsidiary of the Land Bank. It contracts with the Land Bank to provide asbestos

surveying and abatement services.

Whenever Appellants demolish a building containing asbestos, the

Ohio Administrative Code requires them to submit a ten-day notice to the Ohio

Environmental Protection Agency (the “Ohio EPA”). The notice informs the Ohio

EPA that the owner or operator of a property is going to begin a “demolition

operation, asbestos stripping or removal work, or any other activity including

salvage activities and preparations that break up, dislodge or similarly disturb

asbestos material * * *.” Ohio Adm. Code 3745-20-03(A)(3)(a). Each ten-day notice

must be accompanied by a $75 fee to the state. R.C. 3745.11(G).

In order to conduct its business throughout the state, the Ohio EPA

works with “local air pollution control authorities” (“LAA”). The city of Cleveland Department of Public Health’s Division of Air Quality (“CDAQ”) functions as the

local air pollution control authority for all of Cuyahoga County.

In its role as an LAA, CDAQ receives, logs, and reviews ten-day

notices submitted for projects in Cuyahoga County. CDAQ is also required to

conduct asbestos regulation, inspections, and enforcement activities on behalf of the

Ohio EPA. Pursuant to a delegation agreement between the City and Ohio EPA,

from 2017-2019 and 2019-2021, CDAQ on behalf of the City was required to inspect

at least 15 percent of demolition and renovation sites in Cuyahoga County and to

attempt to observe asbestos-abatement work in progress. CDAQ was also required

to review demolition permits.

Beginning January 1, 2018, CDAQ’s responsibilities as an LAA

changed. At that time, ten-day notices were required to be submitted directly to the

Ohio EPA Division of Air Pollution Control’s Central Office. However, CDAQ

maintained that they were still required to review ten-day notices and were given

the added responsibility of reviewing the licensing of asbestos contractors.

As compensation for CDAQ’s role as an LAA, Ohio EPA remits 80

percent of each $75 ten-day notice fee to CDAQ for projects within Cuyahoga

County. However, the City is also required to obtain $393,000 in local program

funds for each year of the delegation agreements to maintain an adequate level of

funding. As an acknowledgement that LAA’s must obtain local funding, the ten-day-

notice application contains an advisement as follows: “Please be aware that some

local air agencies may have additional fees.” When the Land Bank demolishes a property in the city of Cleveland,

it obtains a permit from the city of Cleveland’s Department of Building and Housing

(“Building and Housing”). Building and Housing reviews the permit application and

also forwards it to CDAQ for review. CDAQ then cross-checks the application with

the Ohio EPA’s database to confirm that a ten-day notice has been filed. CDAQ also

confirms that the information on the permit application is consistent with the

information in the ten-day notice. CDAQ then signs off on the permit.

Building and Housing collects a fee for demolition permits, a

minimum of $50 for 1-family, 2-family, or 3-family dwelling houses; and a

minimum of $300 for other buildings. CDAQ charges a separate $50 fee for

demolitions that involve asbestos to cover the review of the application and to

conduct any necessary inspections.

On April 2, 2015, Gus Frangos, the Land Bank’s president, wrote a

letter to CDAQ’s Chief of Enforcement, who at the time was Valencia White

(“White”), asking for a written legal explanation of CDAQ’s authority to charge the

$50 local-asbestos fee. White responded by letter on April 13, 2015, noting that

C.C.O. 263.01 authorizes the local-asbestos fee.

On June 27, 2018, CDAQ sent an “Air Pollution Code Order to Abate

for Failure to Pay Building Asbestos Demolition/Renovation Fee” to Cherokee

Demolition (“Cherokee”). The Land Bank had hired Cherokee to demolish four

properties in the city of Cleveland. In the letter, CDAQ indicated that it had sent

three prior invoices to Cherokee that had not been paid. Further, the letter threatened criminal prosecution if payment was not made within seven days of

receipt of the letter. The City alleges that it subsequently sent notices removing the

threat of criminal prosecution for failure to pay the fee.

On September 6, 2018, the Appellants filed a complaint requesting

declaratory and injunctive relief against the City, Merle Gordon, as Director of the

Cleveland Department of Public Health, and David Hearne, as Interim

Commissioner for the Cleveland Division of Air Quality. Appellants requested a

declaration that “the $50 fee imposed by CDAQ on ten-day notices is unauthorized

under the Cleveland Codified Ordinances, as well as the Fourteenth Amendment to

the United States Constitution; and violates the Home Rule Amendment to the Ohio

Constitution, as well as R.C. 3704.11(B).” Further, Appellants requested a

permanent injunction preventing Appellees from taking any further action to collect

the $50 fee.

On December 10, 2018, Appellees filed an answer and

counterclaimed on behalf of the City. Appellees alleged that the fees were authorized

under C.C.O. 263.01(a)(6). The City counterclaimed for unpaid fees totaling

$217,450 for ten-day notices dating back to 2013. Over the course of the litigation,

the City revised the fees, alleging that the Appellants owed $235,038 in unpaid

asbestos fees.

Trial commenced on April 30, 2021. After hearing testimony, the trial

court ruled that C.C.O. 263.01, in conjunction with related ordinances, authorized

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2022 Ohio 3916, 199 N.E.3d 1104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuyahoga-cty-land-reutilization-corp-v-cleveland-ohioctapp-2022.