Estate Planning Legal Services v. Cox, Ca2006-11-140 (5-12-2008)

2008 Ohio 2258
CourtOhio Court of Appeals
DecidedMay 12, 2008
DocketNos. CA2006-11-140, CA2006-12-141.
StatusPublished
Cited by8 cases

This text of 2008 Ohio 2258 (Estate Planning Legal Services v. Cox, Ca2006-11-140 (5-12-2008)) 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
Estate Planning Legal Services v. Cox, Ca2006-11-140 (5-12-2008), 2008 Ohio 2258 (Ohio Ct. App. 2008).

Opinion

OPINION
{¶ 1} Defendant-appellant/cross-appellee, Michael G. Cox, appeals a decision from the Warren County Court of Common Pleas granting summary judgment in favor of plaintiff-appellee/cross-appellant, Estate Planning Legal Services ("EPLS"). We affirm in part, reverse in part, modify and remand.

{¶ 2} On September 13, 2004, appellant, an attorney registered in the state of Ohio, entered into an agreement with EPLS, a professional legal corporation based in the state of *Page 2 Michigan. EPLS is a provider of marketing and document services for estate lawyers. Pursuant to the terms of the agreement, EPLS would provide leads to appellant and set up appointments with potential clients interested in estate planning services. Thereafter, appellant would interview and advise individuals who qualified for the service. The contract required appellant to pay EPLS half of the fee paid by each client when he forwarded the application to EPLS. In turn, EPLS would provide appellant with the estate documents for the client. Appellant would make final preparations to the documents for final presentation to the client and, thereafter, meet with the client to execute the documents. The contract further stipulated that the contract could be cancelled by either party upon ten days written notice.

{¶ 3} In early 2005, the relationship between the parties began to sour. According to appellant, he became increasingly dissatisfied with the quality of the client referrals. Appellant contends that EPLS would send him on "wild goose chases" to potential clients. Appellant complained that he would often be sent by EPLS to potential clients who were not at home at the appointment time, were unaware of an appointment, or did not qualify for the estate planning services due to the clients' limited assets. According to appellant, EPLS promised that only 25 percent of the leads would be bad; however, he claims that 55 percent of the appointments arranged by EPLS were "bad leads." Due to his dissatisfaction, appellant claims he engaged in some independent "marketing research" to identify potential clients by furnishing EPLS with various zip codes in Ohio with higher income residents.

{¶ 4} Sometime in early 2005, appellant began retaining 100 percent of the fees paid by the clients referred to him by EPLS because, he claims, EPLS was not abiding by the terms of the contract by referring good leads and that he was entitled to compensation for the independent "marketing services" he provided to EPLS. According to EPLS, appellant continued to request referrals despite his dissatisfaction. Appellant then retained all of the fees, and, rather than pay or hold the fees for EPLS in his attorney IOLTA account, used the *Page 3 money for his personal expenses. Appellant further claims that he did not pay EPLS because he was mitigating damages. On May 23, 2005, EPLS notified appellant that it was terminating the contract.

{¶ 5} Subsequently, on October 13, 2005, EPLS filed suit against appellant for breach of contract, fraud, conversion and theft, breach of fiduciary duty, and unjust enrichment. In response, appellant filed similar claims against EPLS. EPLS moved for summary judgment. The trial court granted summary judgment to EPLS on their claims for breach of contract, breach of fiduciary duty, and conversion and theft. As a result, the trial court ordered appellant to pay actual damages in the amount of $11,718, treble damages pursuant to R.C. 2307.61(A)(1)(B)(ii) in the amount of $35,154, and attorney fees in the amount of $4,100. Appellant timely appeals, raising three assignments of error.

Standard of Review
{¶ 6} This court's review of a trial court's ruling on a motion for summary judgment is de novo. Broadnax v. Greene Credit Service (1997),118 Ohio App.3d 881, 887. Summary judgment is appropriate when there are no genuine issues of material fact to be litigated, the moving party is entitled to judgment as a matter of law, and reasonable minds can come to only one conclusion, and that conclusion is adverse to the nonmoving party. Civ. R. 56; Smith v. Five Rivers MetroParks (1999),134 Ohio App.3d 754, 760. The burden of demonstrating that there is no genuine issue of material fact is on the moving party. Harless v. Willis DayWarehousing Co. (1978), 54 Ohio St.2d 64. All evidence submitted in connection with a motion for summary judgment must be construed most strongly in favor of the party against whom the motion is made.Morris v. First National Bank Trust Co. (1970), 21 Ohio St.2d 25. To prevail on a motion for summary judgment, the moving party must be able to point to evidentiary materials that show there is no genuine issue as to any material fact, and that the *Page 4 moving party is entitled to judgment as a matter of law. Dresher v.Burt, 75 Ohio St.3d 280, 293, 1996-Ohio-107. The nonmoving party must then present evidence that some issue of material fact remains for the trial court to resolve. Id.

{¶ 7} Assignment of Error No. 1:

{¶ 8} "THE TRIAL COURT ERRED TO THE PREJUDICE OF THE APPELLANT (MICHAEL G. COX OR COX) IN RULING THAT THE APPELLEE (ESTATE PLANNING LEGAL SERVICES OR EPLS) IS ENTITLED TO SUMMARY JUDGMENT AS A MATTER OF LAW AGAINST APPELLANT WITH RESPECT TO THEIR CONVERSION AND THEFT CLAIM. THE TRIAL COURT ALSO ERRED IN AWARDING TREBLE DAMAGES TO EPLS FOR CONVERSION AND THEFT."

{¶ 9} In his first assignment of error, appellant argues the trial court erred in granting summary judgment to EPLS on the claim for conversion and theft, and the resulting award of treble damages. Specifically, appellant first argues that EPLS is limited to recover only pursuant to a "liquidated damages clause" included in the contract and, as a result, EPLS is barred from bringing a claim for conversion and theft. Secondly, appellant claims that a finding of theft must be made by a trier of fact and cannot be determined on summary judgment. Finally, appellant argues the trial court erred by awarding treble damages.

{¶ 10} Clearly, R.C. 2307.60 and R.C. 2307.61 recognize civil actions for victims of theft. R.C. 2307.60(A) states, "Anyone injured in person or property by a criminal act has, and may recover full damages in, a civil action unless specifically excepted by law * * *." Similarly, R.C. 2307.61 discusses civil actions for theft and damages that may be recovered.

{¶ 11} The trial court found that EPLS was entitled to judgment as a matter of law because appellant committed "theft by deception" in violation of R.C. 2913.02(A)(3). That section proscribes that "[n]o person, with purpose to deprive the owner of property or *Page 5 services, shall knowingly obtain or exert control over either the property or services * * * by deception." R.C. 2913.02(A)(3).

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Bluebook (online)
2008 Ohio 2258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-planning-legal-services-v-cox-ca2006-11-140-5-12-2008-ohioctapp-2008.