Durst v. Durst, Unpublished Decision (4-23-2003)

Ohio Court of Appeals·Decided April 23, 2003·No. Case Number 13-02-38.·Unpublished

Opinion

OPINION
{¶ 1} Defendant-Appellant, Daniel Durst, appeals a Seneca County Common Pleas Court judgment overruling his Civ.R. 60(B) motion as untimely and imposing a thirty-day contempt sentence for his failure to comply with previous orders in an action initiated by Plaintiff-Appellees, Michele Geiser-Durst, Duane Durst, and D D Hauling, LLC, for judicial dissolution of a partnership. Appellant argues that the trial court erred by imposing discovery sanctions and by failing to identify good will and a customer list as partnership assets. However, Appellant failed to appeal that decision, and a Civ.R. 60(B) motion cannot substitute for a direct appeal. Appellant further asserts that he had substantially complied with the court's orders and that the contempt sanction contains no purge condition. Although substantial compliance will not preclude a contempt finding, because the contempt was civil in nature, Appellant was entitled to a purge condition. Accordingly, we must reverse the judgment of the trial court insofar as it failed to afford Appellant an opportunity to purge his contempt.

{¶ 2} Facts and procedural posture relevant to issues raised on appeal are as follows: In January 2001, Michelle Geiser-Durst filed a complaint against Appellant seeking the judicial dissolution of a partnership in a refuse disposal business known as D D Hauling. Duane Durst and D D Hauling, LLC (a company distinct from the partnership), were subsequently joined as parties to the action. Appellant was ordered to place $39,000 of partnership funds in his attorney's trust account.

{¶ 3} When Appellant failed to respond to Appellees' interrogatories or requests for production of documents, the trial court sanctioned Appellant by limiting the evidence he could present at trial.

{¶ 4} The matter proceeded to trial, and the court examined whether a partnership existed, who the partners of the partnership were, whether dissolution was appropriate under Ohio law, what the partnership's present assets were, and how the partnership should be divided. On June 26, 2001, the trial court found that Duane Durst and Appellant had operated a partnership known as D D Hauling, that Duane had sold his interest to Michelle Geiser-Durst, and that the partnership should be dissolved. The court then identified and ordered the distribution of the partnership's assets and liabilities. A receiver was subsequently appointed to complete the sale.

{¶ 5} On August 22, 2002, Appellees moved to hold Appellant in contempt for failure to comply with orders to turn over partnership equipment and assets. Appellant was ordered to appear and show cause why should not be held in contempt.

{¶ 6} On September 5, 2002, Appellant moved, pursuant to Civ.R. 60(B), to set aside the June 26, 2001 judgment based upon fraud and newly discovered evidence.

{¶ 7} On September 11, 2002, the trial court overruled Appellants' Civ.R. 60(B) motion as untimely and sentenced him to thirty-days confinement for contempt. From this decision Appellant appeals, presenting three assignments of error for our review. Because Appellant's first and second assignments of error seek to challenge the order of dissolution and distribution of the partnership's assets, we have elected to consolidate these assignments for purposes of analysis and resolution.

Assignment of Error Number One

The Trial Court committed error prejudicial to Defendant by denying the Defendant, as a party to the action, the right to present rebuttal evidence as to the assets of a partnership and their value, upon trial.

Assignment of Error Number Two

The Court committed error prejudicial to the Defendant when it did not consider the customer list and good will assets of a partnership in a judicial dissolution of a partnership.

{¶ 8} In September 2002, Appellant moved for relief from the June 26, 2001 judgment based upon fraud and newly discovered evidence. Appellant claimed to have recently discovered incidents of fraud affecting the value of the partnership and complained that the partnership's good will and customer list should have been identified as partnership assets. On appeal, Appellant additionally argues that the trial court erred by imposing evidentiary sanctions upon his failure to comply with discovery.

{¶ 9} An appellate court has such jurisdiction as provided by law to review and affirm, modify, or reverse judgments or final orders of the inferior courts within its district.1 An order of an inferior court is a final appealable order only if the requirements of R.C. 2505.02 and Civ.R. 54(B), if applicable, are met.2 If an order is not final and appealable, then an appellate court has no jurisdiction to review the matter and must dismiss the appeal.3

{¶ 10} R.C. 2505.02(B)(2) provides that an order affecting a substantial right made in a special proceeding is a final appealable order. Statutory dissolution of a partnership pursuant to R.C. 1775.31, rather than according to terms providing for dissolution in a partnership agreement, is a special proceeding under R.C. 2505.02.4 Furthermore, "it is clear that [a] trial court's order of dissolution affects the substantial rights of all partners, as well as the partnership itself, as an ongoing enterprise."5 Because appeal after winding-up, accounting, and distribution of partnership assets is not practicable, an order for dissolution is generally a final appealable order.6 Concomitantly, an entry of dissolution comprising a complete determination and disposition of the entire merits of the cause about which there was any controversy is a final appealable order as to questions fully tried and determined by the court.7

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Durst v. Durst, Unpublished Decision (4-23-2003), (Ohio Ct. App. 2003).

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