Cuyahoga Cty. Treasurer v. Henen

2024 Ohio 2263
CourtOhio Court of Appeals
DecidedJune 13, 2024
Docket112983
StatusPublished
Cited by1 cases

This text of 2024 Ohio 2263 (Cuyahoga Cty. Treasurer v. Henen) 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. Treasurer v. Henen, 2024 Ohio 2263 (Ohio Ct. App. 2024).

Opinion

[Cite as Cuyahoga Cty. Treasurer v. Henen, 2024-Ohio-2263.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

TREASURER OF CUYAHOGA : COUNTY,

Plaintiff, : No. 112983

v. :

NADRA HENEN, ET AL., :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: June 13, 2024

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-21-951875

Appearances:

John B. Ertle, Jr., for appellee Nadra Henen.

Donald Butler and Samuel R. Smith, II, for appellant Rezwan Riaz.

LISA B. FORBES, P.J.:

Defendant-appellant Rezwan Riaz (“Riaz”) appeals the trial court’s

June 28, 2023 judgment entry overruling his objections to the magistrate’s May 17,

2023 decision as well as the trial court’s July 12, 2023 judgment entry adopting the magistrate’s May 17, 2023 decision. After careful review of the record and relevant

case law, we affirm the trial court’s judgment.

I. Procedural and Factual History

On August 19, 2021, plaintiff, the Treasurer of Cuyahoga County

(“Treasurer”), filed suit against defendant-appellee Nadra Henen (“Henen”) and

Riaz for the collection of delinquent taxes, assessments, penalties, and interest, and

requested foreclosure and equitable relief. The complaint alleged that $24,564.87

was due in unpaid taxes for the premises located at 6006 Detroit Avenue, Cleveland,

OH 44102, which consists of four combined parcels of real estate (“the property”).1

The county auditor identified the parcels as permanent parcel numbers 002-12-025,

002-12-026, 002-12-027, and 002-12-028. A building on the property contained

two units, one is a convenience store and the other a shuttered laundromat.

On September 8, 2021, Riaz filed an answer to the complaint denying

the allegations. On June 13, 2022, by joint stipulation of the parties, Henen filed her

answer to the complaint and filed cross-claims against Riaz for foreclosure and

breach of contract. On July 13, 2022, after he was granted leave from the trial court,

Riaz filed counterclaims against Henen for breach of contract and fraud, and

requested a partition of the property.

1 The land contract in dispute in this case states that the address of the property is

5910 and 5908 Detroit Road. The parties, in their testimony, refer to the property as 5910 and 5908 Detroit Road. Nonetheless, the guaranteed evidence of title filed by the Treasurer in this matter identifies the property as 6006 Detroit Road. On July 15, 2022, a hearing was held where the magistrate found that

the Treasurer was entitled to a decree of foreclosure on the premises. In the same

order, the magistrate stated the parties entered into a payment plan and that as long

as payments were made, the Treasurer would refrain from ordering the property to

sale. The record indicates that monthly payments were made by Henen from July

2022 to April 2023. On July 27, 2023, the Treasurer filed a motion requesting the

trial court vacate its judgment of foreclosure and dismiss its case because Henen had

redeemed the parcel by making payment in full. The trial court granted the

Treasurer’s motion on July 28, 2023, vacating its decree of foreclosure and

dismissing the Treasurer’s complaint without prejudice.

A. Trial Testimony and Evidence

On May 1, 2023, the magistrate held a bench trial regarding Henen’s

cross-claims and Riaz’s counterclaims. Both Henen and Mohammad Riaz

(“Mohammad”), father of Riaz, testified, and exhibits were submitted into evidence.

The land-installment contract (“the Contract”), which is at the center of this dispute,

was admitted into evidence as stipulated exhibit A. The following are the undisputed

terms of the agreement: On January 24, 2018, Riaz signed the Contract with Henen

where Riaz agreed to pay $700,000 for the property with a $300,000 down

payment and the remaining $400,000 was to be paid in 60 monthly installments of

$6,666.67. The monthly payments were to begin a year after the down payment was

made. The Contract also stated that Riaz agreed to pay an additional $10,000 to

Henen for “delinquent property taxes owed to the Cuyahoga County Treasurer.” Pursuant to the terms of the Contract, Riaz was not initially entitled

to possession of the whole property. Riaz was entitled to possession of the

laundromat portion of the property after making the down payment. Henen

retained exclusive use of the convenience store half of the property until Riaz made

the first monthly payment, after which Riaz was entitled to possession of the whole

property. Under the Contract, Henen was responsible for all past due taxes, utilities,

and other outstanding debts owed prior to finalizing the sale and satisfying all tax

liens, loans, and debts owed at the time of the signing of the Contract.

The Contract provides that, in the event of any default that results in

Henen filing a foreclosure to enforce the Contract, she would be entitled to “proceeds

of the judicial sale up to an amount equal to the unpaid balance on the Land Contract

plus ten percent (10%) per annum computed from the date of such default, together

with all costs, attorney’s fees, and such other charges as maybe provided by the

terms of the Contract.”

1. Henen’s Trial Testimony

At trial, Henen testified that she signed the Contract with Riaz.

According to Henen, the Contract required Riaz to pay a $300,000 down payment

for the property. Henen testified that Riaz had agreed to pay an additional $5,000

for personal property pursuant to a second contract, which was never introduced

into evidence. Henen testified that Riaz paid the $300,000, but never paid the

$5,000. Henen also testified, contrary to the terms of the Contract, that Riaz agreed

to pay $10,000, not for delinquent taxes, but instead to lease the laundromat equipment that was located in the laundromat section of the property. Henen

testified that Riaz was to pay six monthly payments totaling $10,000 to lease the

laundromat equipment and after the last payment he would own the equipment.

Henen testified that she never received the $5,000 or $10,000 payment from Riaz.

Regarding the monthly payments on the $400,000 principal, Henen

testified that Riaz made monthly payments pursuant to the Contract. However,

Henen alleged Riaz was late on numerous payments and Henen sought to apply a

ten percent late fee to these payments per the terms of the Contract. Henen also

testified that four monthly payments in 2019 were never made. She sought payment

of those missing monthly installments.

Regarding the property taxes, at trial the parties stipulated to the fact

that as of February 13, 2018, shortly after executing the Contract, there were no

outstanding taxes due on the property. Henen testified that a tax delinquency

developed over the years after the Contract was executed, which resulted in the

foreclosure action brought by the Treasurer. Henen testified that she entered into a

payment plan for the Treasurer to pay the taxes, even though she believed, under

the Contract, Riaz was responsible for the taxes. According to the stipulated exhibit

No. 1, Henen paid $38,002.87 to the Treasurer for taxes that she claimed were the

responsibility of Riaz pursuant to the Contract. Henen sought recovery for this

amount.

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Cite This Page — Counsel Stack

Bluebook (online)
2024 Ohio 2263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuyahoga-cty-treasurer-v-henen-ohioctapp-2024.