Hamrick v. Maloof

2021 Ohio 1535
Ohio Court of Appeals·Decided May 3, 2021·No. 20CA0025-M·Published

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF MEDINA )

MARK HAMRICK C.A. No. 20CA0025-M Appellee

v. APPEAL FROM JUDGMENT ENTERED IN THE

WILLIAM MALOOF COURT OF COMMON PLEAS COUNTY OF MEDINA, OHIO

Appellant CASE No. 17CIV1138

DECISION AND JOURNAL ENTRY Dated: May 3, 2021

TEODOSIO, Judge.

{¶1} Defendant-Appellant, William Maloof, appeals from the judgment of the Medina County Court of Common Pleas. This Court affirms.

I.

{¶2} Plaintiff-Appellee, Mark Hamrick, began working part-time at Thrifty Propane, Inc. (“Thrifty Propane”) in 2004 and transitioned to a full-time position in 2011. He acted as the company’s fleet manager and worked for Mr. Maloof, who functioned as the de facto head of the company. In April 2015, Mr. Hamrick was placed on unpaid administrative leave for reasons unknown to him. He soon learned, however, that Mr. Maloof had accused him of theft. Specifically, Mr. Maloof had told others that Mr. Hamrick was selling propane tanks from his home on the side and stealing propane, parts, copper, brass, and black iron. Mr. Hamrick never returned to Thrifty Propane and, for the next several years, he was forced to accept different and

temporary positions that paid significantly less than the salary he had been earning at Thrifty Propane.

{¶3} Mr. Hamrick ultimately filed this suit against Mr. Maloof, Thrifty Propane, and Carrie Benton, alleging defamation per se. He was unable to perfect service upon Thrifty Propane or Ms. Benton, but successfully served Mr. Maloof. Specifically, a process server personally served Mr. Maloof with the complaint at his residence. Because Mr. Hamrick was unable to perfect service upon the other defendants, the trial court ultimately dismissed the case against them without prejudice.

{¶4} Mr. Maloof did not file an answer or other responsive pleading. A jury trial was scheduled before a magistrate, and notices of the trial were issued. On the day of trial, Mr. Hamrick appeared with counsel, and it was the magistrate’s understanding that Mr. Maloof had not appeared. Mr. Hamrick chose to try the case to the magistrate, and the magistrate dismissed the jury pool. Shortly after Mr. Hamrick began testifying, however, the magistrate learned that Mr. Maloof was present in the courtroom. The magistrate learned that Mr. Maloof had been present the entire time and had not announced himself. As a result, a mistrial was declared, and a new trial date was announced.

{¶5} Ten days before the rescheduled trial was set to occur, Mr. Hamrick filed a motion for default judgment against Mr. Maloof. The magistrate set the matter for a motion hearing and scheduled the hearing for the day of trial. On the morning of the scheduled hearing, an attorney filed a notice of appearance on behalf of Mr. Maloof. He and Mr. Maloof then appeared at the hearing and asked the magistrate for a continuance. Mr. Maloof claimed that a continuance was warranted because he had just learned of the rescheduled trial date five days earlier. It was his contention that the clerk of courts had initially mailed his notice of the rescheduled trial date to the

wrong address. Yet, the magistrate rejected his contention, finding that he had been served at the address where he lived and where a process server had successfully served him with the complaint. The magistrate refused to continue the matter and granted a default judgment against him on the issue of liability.

{¶6} Mr. Maloof filed objections to the magistrate’s decision as well as a motion for leave to file an answer. The trial court held a hearing on his objections and, at its conclusion, overruled the objections and adopted the magistrate’s decision. The court entered judgment against Mr. Maloof on the issue of liability, issued discovery orders, and set the matter for a trial on damages.

{¶7} Mr. Maloof subsequently served Mr. Hamrick with interrogatories, but Mr.

Hamrick failed to respond. Six days before the scheduled trial on damages, Mr. Maloof filed a motion to compel and asked the court for a continuance. Though Mr. Hamrick immediately supplied Mr. Maloof with his response to the interrogatories, he objected to two of the questions contained therein. On the morning of trial, Mr. Maloof again asked for a continuance because Mr. Hamrick had not provided him with certain information. The trial judge spoke with both parties and ordered Mr. Hamrick to provide Mr. Maloof with the materials he sought. The judge then ordered the trial postponed until the following day.

{¶8} The damages trial commenced the next day, and a jury awarded Mr. Hamrick damages in the amount of $150,000. After the trial court entered judgment in that amount, Mr. Maloof filed a motion for judgment notwithstanding the verdict and a motion for new trial. The magistrate held a hearing on his motions and denied them. Mr. Maloof then filed objections to the magistrate’s decision. Upon review, the trial court overruled his objections and left intact the judgment in favor of Mr. Hamrick in the amount of $150,000.

{¶9} Mr. Maloof now appeals from the trial court’s judgment and raises four assignments of error for our review.

II.

ASSIGNMENT OF ERROR I

THE TRIAL COURT ERRED IN FAILING TO GRANT APPELLANT WILLIAM MALOOF LEAVE TO FILE HIS ANSWER AND IN GRANTING PLAINTIFF DEFAULT JUDGMENT AS TO LIABILITY.

{¶10} In his first assignment of error, Mr. Maloof argues that the trial court erred when it granted a default judgment against him on the issue of liability. According to Mr. Maloof, he lacked proper notice of the default proceedings because he was not served with either the motion for default judgment or the court’s notice of hearing on the motion for default judgment. He argues that the default judgment against him is either void for lack of personal jurisdiction or subject to vacatur because it violated his due process rights. For the following reasons, we reject his argument.

{¶11} This Court generally reviews a trial court’s action regarding a magistrate’s decision for an abuse of discretion. Fields v. Cloyd, 9th Dist. Summit No. 24150, 2008-Ohio-5232, ¶ 9. “In so doing, we consider the trial court’s action with reference to the nature of the underlying matter.” Tabatabai v. Tabatabai, 9th Dist. Medina No. 08CA0049-M, 2009-Ohio-3139, ¶ 18. This Court applies the abuse of discretion standard when reviewing a trial court’s decision to grant or deny a default judgment. Third Federal Savings & Loan v. Sutton, 9th Dist. Summit No. 28763, 2018-Ohio-2003, ¶ 11. An abuse of discretion implies the trial court’s decision is arbitrary, unreasonable, or unconscionable. Blakemore v. Blakemore, 5 Ohio St.3d 217, 219 (1983).

{¶12} If “a party defending a claim has ‘failed to plead or otherwise defend,’ the court may, upon motion, enter a default judgment on behalf of the party asserting the claim.” Ohio

Valley Radiology Assocs., Inc. v. Ohio Valley Hosp. Assn., 28 Ohio St.3d 118, 120 (1986), quoting Civ.R. 55(A). “The due process protections of Civ.R. 55 are triggered whenever the non-moving party * * * has already made an appearance in the case at issue.” Bank of New York v. Smith, 9th Dist. Summit No. 21534, 2003-Ohio-4633, ¶ 7. In those circumstances, “a defendant who has appeared in the action must ‘be served with written notice of the application for [default] judgment at least seven days prior to the hearing on such application.’” Picket v. Katz & Co. Salon, 9th Dist. Summit No. 25851, 2011-Ohio-4396, ¶ 4, quoting Civ.R. 55(A). “Proper service of process is required before a court can render a valid default judgment.” Hall v. Silver, 9th Dist. Summit No. 28798, 2018-Ohio-1706, ¶ 20.

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