David L. Vornholt v. Clermont County Treasurer

District Court, S.D. Ohio·Decided November 26, 2025·No. 1:25-cv-00812·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION - CINCINNATI DAVID L. VORNHOLT, : Case No. 1:25-cv-812 Appellant, Judge Matthew W. McFarland

CLERMONT COUNTY TREASURER, Appellee.

ORDER AND OPINION

This matter is before the Court on Appellant’s Motion for a Temporary Restraining Order and a Stay and a Preliminary Injunction (Doc. 2). The Court will only consider Appellant’s Motion for a Temporary Restraining Order at this time. The parties met with the Court for a telephonic conference on November 24, 2025, as to this Motion, see S.D. Ohio Civ. R. 65.1(a), and it is now ripe for review. (See Response, Doc. 3; Reply, Doc. 4.) For the reasons explained below, the Court DENIES Appellant’s Motion for a Temporary Restraining Order (Doc. 2). BACKGROUND This action arises as an appeal from a United States Bankruptcy Court Order that imposed a partial stay pending bankruptcy proceedings. (See Notice of Appeal, Doc. 1; Bankruptcy Orders, Doc. 1, Exs. A and B, Pg. ID 3-18.) Specifically, the appeal centers on the bankruptcy court's denial of a stay as to creditor Clermont County Treasurer. (Id.)

Appellant/Debtor David Vornholt (“Appellant”) owns two historical properties in New Richmond, Ohio: 310 Susanna Way and 314 Susanna Way (collectively, “Properties”). (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 6-7.) Appellant has resided at 310 Susanna Way and operated 314 Susanna Way as, first, a bed and breakfast and then a rental property. (Id. at Pg. ID 7-8.) In 2018 and 2021, renters of the Properties contacted the fire department of the Village of New Richmond to express their concerns that the structures felt unsafe. (Id. at Pg. ID 8.) In December 2021, the Village of New Richmond's Certified Fire Safety Inspector investigated the Properties and issued citations for hazards and unsafe conditions. (Id.) At a follow-up inspection thirty days later, Appellant had not abated these violations. (Id.) Several years later, on February 9, 2025, a fire occurred at 310 Susanna Way, causing extensive damage; Appellant’s brother and other tenants had been living at the building and evacuated. (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 8.) A few days later, the fire department visited the other property, 314 Susanna Way, and witnessed several safety hazards. (Id.) As a result of the hazards at both Properties, the fire department informed Appellant that no one was permitted to reside there. (Id. at Pg. ID 8-9.) Appellant agreed that repairs needed to be made and that he was making them slowly. (id. at Pg. ID 9.) Ten days after the fire, the Clermont County Board of Commissioners concluded that the Properties were unlivable; a building code official told Appellant that he had thirty days to comply with the orders by requesting permits and completing repairs. (Id.)

Meanwhile, Appellant owed real estate taxes on the Properties, with delinquencies dating back to between 2007 and 2009. (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 9-10.) Tax records show that Appellant had paid some taxes over the years, but significant tax delinquencies remained on the Properties, as well as on Appellant's other properties in the county. (/d.) In February 2012, Appellee Clermont County Treasurer filed complaints in foreclosure for the delinquent real estate taxes that Appellant owed and then obtained consent judgment entries of foreclosure in September 2012. (Id. at Pg. ID 10.) Pursuant to those consent judgment entries, the orders to sell the Properties were held in abeyance so that Appellant could enter into delinquent tax contracts with Appellee to pay the taxes

over a period of time. (Id.) However, Appellant defaulted on the payment. (Id.) The terms of the consent judgment entries allowed for the sale of the Properties upon default. (Id.) Following default, the Properties were scheduled for sheriff sales. (Id.) But, just a day before the scheduled sales, Appellant filed a Chapter 13 bankruptcy petition, preventing the sale from proceeding. (Id.) The bankruptcy case was dismissed a few months later for Appellant's failure to file documents. (Id.) This pattern continued four more times over the following ten years. Appellant would enter into delinquent tax contracts to repay taxes, default on those contracts, and Appellee would set the Properties for sheriff sales. (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 10-12.) Then, Appellant would file for Chapter 13 bankruptcy not long before the sale date, causing an automatic stay that prevented the sale, only to have the case dismissed later for either failure to file documents or failure to make payments. (Id.) The final attempt to avoid a sheriff sale occurred with Appellant’s most recent filing for Chapter

13 bankruptcy, the subject of this appeal. However, pursuant to 11 U.S.C. § 362(c)(4)(A)(i), no automatic stay of the sale went into effect when he filed the present case because Appellant had filed two bankruptcy cases within the same year as the present one. (Id. at Pg. ID 12, 14.) Appellant then filed a Motion to Stay to prevent the sale from proceeding. (Id. at Pg. ID 14.) But, due to court scheduling conflicts, the sheriff sales of the Properties took place before the bankruptcy court could adjudicate the Motion, and the Properties were sold for $96,000 and $90,000, respectively. (Id. at Pg. ID 12-13.) Appellee, though, agreed not to file a motion to confirm the sales until the bankruptcy court had adjudicated Appellant’s Motion to Stay. (Id. at Pg. ID 13.) Following the sheriff sales, but before the bankruptcy court ruled on the Motion to Stay, Appellant filed a Motion to Sell the Properties to another individual for a total of $240,000, which is $54,000 more than the expected proceeds from the sheriff sales. (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 13.) The new buyer promised to rehabilitate the Properties to conform with code and allow Appellant to live on the premises rent-free for the rest of his life. ([d.) Additionally, the proceeds from the sale would allow Appellant to pay his creditors in full. (Id. at Pg. ID 13-14.) Nevertheless, Appellee opposed the Motion to Stay, as did another creditor, Minster Bank. (Id. at Pg. ID 12-13.) Minster Bank, though, after learning of Appellant’s proposed sale and subsequent motion to sell, changed its position and no longer opposed the Motion to Stay. (Id. at Pg. ID 13-14.) Thus, at the end of the day, only Appellee opposed the Motion to Stay. The Court also notes that, in April 2025, Appellant had attempted to pay his delinquent property taxes in full. (Bankruptcy Order, Doc. 1, Ex. B, Pg. ID 11.) Appellee

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David L. Vornholt v. Clermont County Treasurer, (S.D. Ohio 2025).

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