Gordon Food Service, Inc. v. Hot Dog John's, Inc.

601 N.E.2d 131, 76 Ohio App. 3d 105, 1991 Ohio App. LEXIS 5119
CourtOhio Court of Appeals
DecidedOctober 25, 1991
DocketNo. L-90-293.
StatusPublished
Cited by6 cases

This text of 601 N.E.2d 131 (Gordon Food Service, Inc. v. Hot Dog John's, Inc.) 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
Gordon Food Service, Inc. v. Hot Dog John's, Inc., 601 N.E.2d 131, 76 Ohio App. 3d 105, 1991 Ohio App. LEXIS 5119 (Ohio Ct. App. 1991).

Opinion

Abood, Judge.

This is an appeal and cross-appeal from a judgment of the Sylvania Municipal Court which awarded sanctions, in the form of attorney fees, to appellee and its attorney against appellant and its attorney.

Appellant sets forth two assignments of error in support of its appeal:

“I. The trial court erred in imposing sanctions, i.e. Plaintiff’s attorney fees, against Defendant and Defendant’s counsel based on Ohio Rules of Civil Procedure, Rule 11, by finding that the Answer filed by the Defendant in the *108 said action was a sham pleading because such a finding is contrary to the weight of the evidence.
“II. The trial court erred in imposing sanctions, i.e. attorneys fees, against Defendant and Defendant’s counsel based upon a finding under Ohio Rules of Civil Procedure, Rule 11, because the Ohio Rules of Civil Procedure, Rule 11, does not give such power to the trial court and the Order is therefore contrary to law.”

Appellee sets forth three assignments of error in support of its cross-appeal:

“1. The trial court erred as a matter of law in concluding that defendant’s filing of a request for a garnishment hearing was not a violation of Civil Rule 11 because the request did not constitute a ‘pleading’ within the ambit of Civil Rule 11, and further erred in not imposing sanctions under its inherent power to supervise members of the bar appearing before it.
“2. The court erred as a matter of law in concluding that no violation of O.R.C. § 1701.93 by defense counsel had occurred.
“3. The amount of the judgment was inadequate and against the manifest weight of the evidence and contrary to law.”

Neither party has filed an answer brief to the assignments of error set forth by the other party.

I. FACTS

This case arises from a $604.56 debt and is before this court on a $125 award of attorney fees. The undisputed facts that are relevant to the issues raised by these appeals are as follows.. On June 23, 1989, appellee, Gordon Food Services, Inc., delivered goods to appellant, Hot Dog John’s Inc., and appellant executed and delivered a check to appellee for the goods in the amount of $604.56. Thereafter, the check was twice dishonored when presented for payment. On November 16, 1989, appellant’s attorney, Lawrence Gibson, sent a letter to appellee’s attorney, Susan Hartman Muska, in response to her request for payment on behalf of her client, in which he stated “I regret to advise that Hot Dog John’s, Inc. is defunct. It closed its doors several months ago.” Muska subsequently learned that the business had been sold to Robert R. Gillen in June 1989 and that Gillen was making monthly installment payments to appellant in the amount of $1,340.17 pursuant to a purchase contract and cognovit promissory note. On December 18, 1989, Muska sent a letter to Gibson requesting that his client authorize Gillen to pay appellee the money that appellant owed for the goods out of the next monthly installment. On January 10, 1990, not having received a response *109 from Gibson, appellee filed a complaint in the Sylvania Municipal Court which alleged that on June 23, 1989, it sold and delivered goods to appellant, that appellant paid for the goods by a negotiable instrument, that the instrument was presented and dishonored, that appellant neglects and refuses to pay for the goods and demanded judgment in the amount of $604.56 plus interest. On January 17, 1990, appellant filed an answer signed by Gibson which stated that it “denies each and every allegation of the Plaintiffs Complaint.” On February 2, 1990, appellee filed a motion for summary judgment along with an affidavit of Kirk Talbert, Credit Manager for appellee, an account/credit application completed by appellant and a copy of the dishonored check. That motion was not opposed and, on March 14, 1990, the trial court granted appellee’s motion for summary judgment. On March 27, 1990, appellee brought garnishment proceedings to attach a portion of the monthly installment due appellant from Gillen. On March 30, 1990, Gibson sent a letter to Muska, in which he stated that “Hot Dog John’s, Inc. ceased operations and has no assets. The note from Robert R. Gillen was assigned long ago to the principals.” On April 2, 1990, Gillen answered the garnishment stating that he has $695.40 of appellant’s money under his control and in his possession and paid the money to the court, which held it pending hearing. On that same day, a request for hearing on the garnishment was filed by Gibson on behalf of appellant, which stated:

“Plaintiff has a judgment against Hot Dog John’s, Inc. The note on which Respondent is making installment payments has been assigned by Hot Dog John’s, Inc. to a third party who is entitled to receive the payments. The third party does not have an obligation to the Plaintiff herein.”

Gibson also filed a document dated June 28, 1989, entitled “ASSIGNMENT,” in which appellant, by Bernard C. Westfall, as officer of appellant, assigned the note to Bernard C. Westfall and Christine Westfall. The garnishment hearing was scheduled to take place on April 20, 1990, at 10:00 a.m. but, because the trial court was required to deal with its criminal docket first, the hearing was not called until 12:00 noon. Muska remained in the courthouse until the hearing was called, but Gibson left the courthouse without asking for a continuance. Prior to calling a hearing, the trial court telephoned Gibson at his office to inform him that the hearing would be held at noon and Gibson stated that he would not be present. On that same day, after holding a hearing in Gibson’s absence, the trial court filed its judgment entry ordering that $695.40 held by Gillen be disbursed to appellee. On May 16, 1990, appellee filed a motion for sanctions in the form of attorney fees against appellant and/or Gibson. On May 24, 1990, appellant filed a memorandum in opposition to appellee’s motion for sanctions. On June 13, 1990, the trial court held a hearing on appellee’s motion for sanctions and on August *110 20, 1990, the trial court filed its decision and judgment entry, in which it found, preliminarily, that:

“Plaintiff in this cause is seeking sanctions against defendant and its counsel for the following alleged acts of misconduct by defendant’s counsel:

“(1) Filing of a sham pleading in the form of an answer generally denying all averments in plaintiff’s complaint.
“(2) Requesting in bad faith a hearing disputing plaintiff’s rights to garnish moneys assigned by defendant to a third party.
“(3) Making materially false statements regarding the defendant’s corporate status and financial condition in letters of November 16, 1989 and March 30, 1990 to plaintiff’s counsel.
“Plaintiff posits that all of the cataloged acts constitute frivolous conduct as defined in Subdivisions A(2)(a) & (b) of Section 2323.51, Revised Code.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Guy v. Axe
2010 Ohio 986 (Ohio Court of Appeals, 2010)
Ohio Dept. of Taxation v. Banks, Unpublished Decision (7-21-2006)
2006 Ohio 3785 (Ohio Court of Appeals, 2006)
David v. Kaiser, Unpublished Decision (6-18-2004)
2004 Ohio 3149 (Ohio Court of Appeals, 2004)
City of Mentor v. Nozik
620 N.E.2d 137 (Ohio Court of Appeals, 1993)
Millis Transfer, Inc. v. Z & Z Distributing Co.
602 N.E.2d 766 (Ohio Court of Appeals, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
601 N.E.2d 131, 76 Ohio App. 3d 105, 1991 Ohio App. LEXIS 5119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-food-service-inc-v-hot-dog-johns-inc-ohioctapp-1991.