Fig v. Lynch

2024 Ohio 3196, 252 N.E.3d 549
Ohio Court of Appeals·Decided August 22, 2024·No. 113584·Published·Cited by 3 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

FIG AS CUSTODIAN FOR FIG OHIO18, : L.L.C. & SECURED PARTY, :

Plaintiff-Appellee, No. 113584 :

v.

:

JOHN J. LYNCH, ET AL., :

Defendants-Appellants.

:

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: August 22, 2024

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-22-963098

Appearances:

Ulrich, Sassano, Deighton, Delaney, Higgins Co., LPA, and Eric T. Deighton, for appellee.

Michael P. Harvey Co., L.P.A., and Michael P. Harvey, for appellant.

KATHLEEN ANN KEOUGH, A.J.:

Defendant-appellant, Hollis Lynch (“Hollis”), appeals from the trial court’s judgment adopting a magistrate’s decision denying her Civ.R. 60(B) motion for relief from judgment and overruling her objections to the magistrate’s decision. After a careful review of the record and relevant case law, we affirm. I. Background In May 2022, plaintiff-appellee, FIG as Custodian for FIG OH18, L.L.C. & Secured Party (“FIG”), filed a foreclosure complaint against John Lynch (“Lynch”); his unknown spouse, if any; and his unknown heirs, devisees, legatees, administrators, executors, and assigns. In its complaint, FIG alleged that it was the owner of tax certificates encumbering the property at 5185 West 220th Street, Fairview Park, Ohio, and demanded foreclosure of its tax certificates.1 The trial court referred the matter to a magistrate to try the issues of fact and law.

The record reflects that the summons and complaint were served upon Lynch and his unknown spouse at the Fairview Park property by the Cuyahoga County Sheriff and certified mail. Service on Lynch’s unknown heirs, devisees, legatees, administrators, executors, and assigns was perfected by publication.

On June 7, 2022, Hollis, who is Lynch’s daughter, filed a pro se motion for leave to move or plead in the matter, identifying herself as a “defendant” and “an heir” of Lynch. In her motion, Hollis acknowledged that her answer to the

1 Ohio’s tax certificate legislation, R.C. 5721.30 through 5721.43, allows a county

government to sell tax certificates to private investors. A tax certificate entitles the certificate holder to the first lien on the real property. R.C. 5721.32. A property owner can redeem the certificate and remove the lien by paying the certificate holder the purchase price plus interest, penalties, and costs. R.C. 5721.38. If the property owner fails to redeem the certificates, the tax certificate holder may initiate foreclosure proceedings on the real property after complying with certain statutory requirements.

complaint was due on June 8, 2022, but asked for 30 days leave to answer or otherwise plead in response to the complaint. The magistrate deemed Hollis’s motion to be a motion to intervene, ordered the clerk to add Hollis as a new party defendant, and granted her leave to plead.

On July 6, 2022, Hollis filed a pro se suggestion of death regarding Lynch pursuant to Civ.R. 25. She also filed a pro se answer to the complaint admitting that she had an interest in the property but denying the other allegations of the complaint. Hollis did not assert insufficiency of process as an affirmative defense or otherwise suggest that service had not been perfected on her.

In August 2022, after a hearing on FIG’s motion for default, the magistrate granted default judgment against all defendants except Hollis, and granted FIG leave to file a motion for summary judgment against her. On September 9, 2022, FIG filed a motion for summary judgment against Hollis, who never responded to the motion. On November 16, 2022, the magistrate granted FIG’s summary judgment motion and entered judgment in its favor. The magistrate issued a written decision the same day, finding that all parties had been properly served; that some were in default of answer; and, with respect to Hollis, that reasonable minds could only conclude there was no genuine issue of material fact and FIG was entitled to judgment as a matter of law. The magistrate accordingly ordered foreclosure of the property. On December 7, 2022, the trial court entered its judgment entry adopting the magistrate’s decision.

A week later, on December 14, 2022, an attorney filed a notice of appearance on behalf of Hollis.2 That same day, Hollis, through her attorney, filed a Civ.R. 60(B) motion for relief from the trial court’s judgment, seeking relief under Civ.R. 60(B)(1)-(5) and specifically for “excusable neglect” under Civ.R. 60(B)(1).3 In her motion, Hollis stated that she had moved into the house with Lynch some 50 years ago, when she was 14 years old, and asserted that because the property was always titled in her father’s name, she had no obligation to pay the tax liens on the property.

Hollis stated further that Lynch died on January 14, 2001, sometime after he moved to Florida with his second wife, who passed away in 2011, and that any service upon Lynch either at the property or by publication was therefore imperfect because he had been deceased since 2001. Hollis said she had a will indicating that her father wanted the house to pass to her, but she did not know if an estate had ever been opened for her father or his second wife; she did not have the resources or wherewithal to ever get the property transferred to her; and she had no income and nowhere to go should the house be foreclosed on. Accordingly, Hollis argued that because there were issues regarding service and the case had “move[d]

2 Because of her financial situation, the Legal Aid Society of Cleveland assigned an

attorney to represent Hollis.

3 Under Civ.R. 60(B), “[o]n motion and upon such terms as are just, the court may

relieve a party or his legal representative from a final judgment . . . for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; (2) newly discovered evidence . . . ; (3) fraud . . . ; (4) the judgment has been satisfied . . . ; or (5) any other reason justifying relief from judgment.”

too quickly without all the proper facts,” the magistrate should grant her motion and put the case back on the active docket for discovery and further litigation.

FIG opposed Hollis’s motion, arguing that she had failed to meet the Civ.R. 60(B) requirements to prevail on her motion. It argued further that Hollis should have appealed the trial court’s judgment instead of filing a 60(B) motion for relief from judgment.

In January 2023, Hollis filed a notice of relevant case law, arguing that the magistrate should stay the case until the United States Supreme Court decided the case of Tyler v. Hennepin Cty., 598 U.S. 631 (2023), regarding whether a homeowner adequately stated a claim for violation of the Takings Clause of the Fifth Amendment to the U.S. Constitution when, after a foreclosure sale where the property sold for more than the homeowner’s tax debt, the county retained the excess monies for itself. The magistrate subsequently set the case for a hearing on Hollis’s Civ.R. 60(B) motion for relief from judgment on August 3, 2023, after the expected release of the Supreme Court’s decision in the Tyler case. Prior to the hearing, both parties briefed the issue of the applicability of the Tyler decision to this matter.

On June 2, 2023, FIG filed a motion to substitute Aviation 22, L.L.C.

as substitute plaintiff. The magistrate granted the motion on July 6, 2023.

On August 14, 2023, after a hearing on Hollis’s Civ.R. 60(B) motion, the magistrate issued a lengthy written decision denying Hollis’s motion for relief from judgment. In the decision, the magistrate noted that Hollis’s attorney had

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Fig v. Lynch, 2024 Ohio 3196, 252 N.E.3d 549 (Ohio Ct. App. 2024).

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