Dublin Transportation, Inc. v. Goebel

727 N.E.2d 938, 133 Ohio App. 3d 272, 1999 Ohio App. LEXIS 1150
Ohio Court of Appeals·Decided March 23, 1999·No. No. 98AP-611.·Published·Cited by 4 cases

Opinion

Petree, Judge.

This matter is before this court upon the appeal of third-party defendant-appellant, Charles G. Kaps, from a judgment of the Franklin County Court of Common Pleas in favor of third-party plaintiffs, Christine F. Goebel and Paradise Dance Club, Inc., in the amount of $102,500.

In 1995, Adnan Mouneimne requested that Kaps represent him in the acquisition of a transportation services business known as Airport Express Shuttle from Paradise Dance Club, Inc., a corporation owned and/or operated by Robert Goebel, Sr., his wife, Christine, and their son, Robert Goebel II. Kaps also assisted Mouneimne in incorporating Dublin Transportation, Inc., an Ohio general corporation created to function as the purchaser of Airport Express. Kaps was not paid for services rendered in the purchase transaction, but was issued five percent of the outstanding shares of stock in Dublin Transportation.

The acquisition was structured as a seller-financed asset purchase, the terms of which were set forth in an asset-purchase agreement dated October 5, 1995. Pursuant to this agreement, Dublin Transportation purchased all the physical assets, licenses, customer lists, and goodwill of the business for a total purchase price of $203,316. Dublin Transportation made a downpayment and executed a cognovit promissory note for the remaining balance of $165,000. In addition to the asset-purchase agreement, the parties executed a noncompetition agreement.

Kaps prepared all of the documents executed at the closing, including the promissory note. The first paragraph of the note identifies Dublin Transportation and Mouneimne, individually, as makers and indicates that the note is payable to the order of Paradise Dance Club, Inc., Robert Goebel, Christine Goebel, and Robert Goebel II. The note is signed by Mouneimne, both individually and as president of Dublin Transportation. Kaps’s signature appears on the promissory note to the left of the line where Mouneimne signed in his corporate capacity; - however, Kaps is not identified either as a witness or as a maker, obligor, or guarantor.

Approximately one year after it acquired the transportation services business, Dublin Transportation filed a complaint naming Christine Goebel, Robert J. *276 Goebel II, and Paradise Dance Club, Inc., 1 as defendants. 2 The complaint alleged that the Goebels had breached both the asset-purchase agreement and the noncompetition agreement. The Goebels filed an answer and counterclaim, alleging that Dublin Transportation had defaulted on the promissory note. On the same day, Christine Goebel and Paradise Dance Club, Inc. filed a third-party complaint against Mouneimne and Kaps, asserting that each was individually liable on the note and demanding judgment on the unpaid balance. Following service of the third-party complaint, Kaps withdrew as counsel of record for Dublin Transportation and tendered back his shares of stock in that company. In his answer to the third-party complaint, Kaps denied liability on the note, asserting that he had not signed it in his individual capacity.

Pursuant to a covenant not to sue executed between Dublin Transportation, Mouneimne, and the Goebels in late May or early June 1997, the trial court, on July 1, 1997, ordered Dublin Transportation’s original complaint against the Goebels and the third-party complaint against Mouneimne dismissed with prejudice. Also pursuant to the covenant not to sue, the trial court ordered that the third-party complaint against Kaps remain pending.

Thereafter, a jury trial on the merits of the third-party claim against Kaps was commenced on October 1, 1997 before a visiting judge of the Franklin County Court of Common Pleas.

Kaps represented himself at trial. During the trial, Kaps attempted to raise two defenses to liability: (1) that he did not sign the note as a maker or guarantor; and (2) that the Goebels were entitled to only one satisfaction of the promissory note: that by virtue of the covenant not to sue, the note was fully satisfied, and the satisfaction released Kaps from any liability on the note. The trial court indicated its intention to bifurcate the trial so that the sole issue to be determined by the jury was whether Kaps was obligated on the note; thereafter, if the jury rendered a verdict against Kaps, a subsequent hearing would be held to determine whether the verdict should be set off to the extent that the third-party plaintiffs received compensation either from Kaps or from the other makers of the note via the covenant not to sue. Kaps agreed to this bifurcation.

The jury ultimately returned a verdict finding Kaps liable on the note for $102,500. Thereafter, the parties stipulated that a hearing was to be held solely to ascertain what portion, if any, of the $102,500 judgment was subject to setoff. The hearing was subsequently set for March 26,1998.

*277 On December 24, 1997, John A. Yaklevich entered his appearance as counsel for Kaps.

The setoff hearing was held on March 26 and 27, 1998. At the conclusion of the hearing, the court'orally entered judgment against Kaps in the full amount of the jury’s verdict, $102,500, having found that he had presented no credible evidence entitling him to any setoff. The court’s decision was journalized on May 4, 1998. Kaps has filed this timely appeal, asserting the following six assignments of-error:

“1. The trial court erred in overruling appellant’s trial motions to amend appellant’s answer to conform to the evidence adduced at trial and to dismiss for failure to join indispensable parties under Ohio Rule Civ. P. 19.”
“2. The trial court erred in overruling appellant’s trial motion to dismiss for failure to state a claim upon which relief can be granted.”
“3. The judgment was against the manifest weight of the evidence.”
“4. The trial judge erred in his refusal to consider appellant’s defenses to the third-party complaint.”
“5. The trial court erred to appellant’s prejudice where during opening statement the trial judge uttered improper, prejudicial remarks to appellant in the presence and hearing of the jury.”
“6. The trial court erred in overruling appellant’s motions for continuances.”

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Dublin Transportation, Inc. v. Goebel, 727 N.E.2d 938, 133 Ohio App. 3d 272, 1999 Ohio App. LEXIS 1150 (Ohio Ct. App. 1999).

727 N.E.2d 938 (Dublin Transportation, Inc. v. Goebel) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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