Greenwald v. Shayne

2009 Ohio 3384, 910 N.E.2d 536, 152 Ohio Misc. 2d 12
CourtCourt of Common Pleas of Ohio, Franklin County, Civil Division
DecidedApril 28, 2009
DocketNo. 08CVG-11-16119
StatusPublished
Cited by2 cases

This text of 2009 Ohio 3384 (Greenwald v. Shayne) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenwald v. Shayne, 2009 Ohio 3384, 910 N.E.2d 536, 152 Ohio Misc. 2d 12 (Ohio Super. Ct. 2009).

Opinion

FRYE, Judge.

I. Introduction

{¶ 1} Gary D. Greenwald and Stanley H. Shayne were law partners for many years. Their written partnership agreement included a clause calling for arbitration of any dispute in accordance with American Arbitration Association rules. After their partnership dissolved and Greenwald moved his law practice to Arizona, they made a supplemental contract to select someone from Columbus who had high-level experience in law-firm management as a single arbitrator. Following investigation, an arbitrator was hired. Following a four-day hearing, their arbitrator issued a decision. Some months later, that arbitrator' — a partner in charge of the Columbus office of a multi-city firm — moved with over 20 other lawyers to practice at the Columbus office of a different firm. When that occurred, Shayne cried “foul” and sued to void the ten-month-old arbitration award, while also seeking money damages from the arbitrator. Adding insult to injury for the arbitrator’s former firm, it too was sued. This opinion sorts through many of the legal questions all of this presents.

II. Factual Background

{¶ 2} Greenwald and Shayne each held a 50 percent share in their law partnership. It dissolved in October 2006, and since early 2007, Greenwald has practiced law in Arizona. Significant disputes persisted, so the partners made a detailed new agreement to arbitrate matters involving both Shayne & Greenwald (their law firm) and Greenwald & Shayne Real Estate Company (which apparently owned their firm’s downtown Columbus office building). The “Arbitrator Selection Agreement Between Gary D. Greenwald and Stanley H. Shayne” was effective in February 2007.

{¶ 3} Shayne and Greenwald agreed that their arbitrator should have a special kind of experience: a practicing lawyer in Franklin County currently serving, or who had served in the past, as the managing partner of a law firm or as partner in charge of the Columbus office of a law firm. In due course, Donald B. Leach Jr. was selected. At that time, he was in charge of the Columbus office of Buckingham, Doolittle & Burroughs (“Buckingham, Doolittle”), a multi-city firm whose main office historically has been in Akron. Leach accepted appointment in April 2007. In doing so, he represented in writing that after making a conflict check he was aware of no reason why he could not serve in the Shayne-Greenwald matter. Leach also mentioned prior professional dealings with attor[15]*15neys at Shayne & Greenwald, but that he never interacted with Shayne or Greenwald individually.

{¶ 4} An arbitration hearing was held in September 2007. Leach issued a seven-page decision on November 12, 2007. In part, this case must determine whether that decision should be enforced or instead should be vacated. Shayne contends that he got the worst of Leach’s decision, so he initially filed a civil action in September 2008 seeking to vacate it. However, a few weeks later, he dismissed that case, purportedly pursuant to Civ.R. 41(A), Ohio’s general voluntary-dismissal provision. Greenwald filed this action a few weeks later, just before the one-year anniversary of the arbitration award, and sought court enforcement of it pursuant to R.C. Chapter 2711. Shayne responded by once more seeking to have the decision vacated and, in addition, sought damages against Leach individually and his now former law firm Buckingham, Doolittle. Shayne’s theory is essentially that the arbitrator breached obligations of disclosure imposed in the arbitrator-selection agreement, because while deciding the case in 2007, Leach may already have been contemplating leaving Buckingham, Doolittle (as ultimately he did in June 2008). By leaving his own firm, the argument runs, Leach violated his fiduciary duty to Buckingham, Doolittle in a manner comparable to the way Greenwald breached duties he owed to Shayne. Hence, Shayne concludes, arbitrator Leach should have disclosed that he was predisposed before ruling on partnership issues between Shayne and Greenwald. The issues are collected in voluminous pleadings and briefs argued to this court in March 2009.1

{¶ 5} Shayne and Greenwald were both very experienced lawyers in 2007 when they made their postdispute arbitrator-selection agreement.2 Their partnership had lasted more than 12 years. The agreement is a sophisticated legal document reflecting that both parties had counsel assisting with postpartnership issues.

[16]*16{¶ 6} The arbitrator-selection agreement set forth an elaborate procedure to select a neutral person to hear their disputes. Each side was required to propose five arbitrators having the specific law firm management qualifications discussed earlier. Then, both parties could strike some lawyers proposed by the other side while rank-ordering the rest. The prospective arbitrator having the highest mutual ranking was first invited to interview. The agreement obligated all potential arbitrators to disclose “any circumstance that is likely to affect his or her impartiality or independence with respect to the merits of the dispute.” Furthermore, the agreement contemplated that beyond information received directly from prospective arbitrators, material about them would be gathered from other sources such that after all the investigation, either partner could “require invitation of the next ranked person from the choices originally submitted by and to each other.”

{¶ 7} Over and above these precautions, the parties included a procedure to address disclosures that might arrive only after appointment of their arbitrator. New “information that would impair his or her impartiality or independence or otherwise disqualify him or her” offered a basis for either Shayne or Greenwald to serve a notice to disqualify within seven days, or to proceed despite such new information. Death, resignation, or other potential difficulties with an arbitrator also were addressed.

{¶ 8} The parties incorporated provisions of the Ohio arbitration act by reference into their agreement, relative to them ability to subpoena witnesses and documents, and other procedural matters.

{¶ 9} Leach signed the last page of the Arbitrator Selection Agreement on April 27, 2007, under the caption “Arbitrator’s Acceptance of Agreement.” He acknowledged in doing so, “I accept appointment as arbitrator pursuant to the terms of the Agreement set forth above, together with such other terms with respect to compensation as shall be set forth in a separate letter.”

{¶ 10} Shayne’s answer, counter-claim and third-party complaint described “[t]he principal disputes between the parties” during arbitration as Shayne’s claim that Greenwald breached his fiduciary duty, misappropriated business assets, and slandered Shayne, plus “related claims.” Shayne further described his issues as “Greenwald’s secret plotting for months to desert his partnership with Shayne and move to Phoenix,” Greenwald’s “solicitation and diversion of the law firm’s significant clients to * * * Greenwald’s anticipated new firm [in Phoenix],” and Greenwald’s “slander” of Shayne’s personal and professional reputation “to misappropriate those clients’ business.”

{¶ 11} Shayne’s leading complaint about arbitrator Leach is that his decision “was adverse to Shayne in several material respects” causing Shayne monetary losses “in excess of One Million Dollars.” Beyond that, Shayne pleads that in [17]

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Bluebook (online)
2009 Ohio 3384, 910 N.E.2d 536, 152 Ohio Misc. 2d 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenwald-v-shayne-ohctcomplfrankl-2009.