Helfrich v. Madison

2014 Ohio 1928
Ohio Court of Appeals·Decided May 5, 2014·No. 13-CA-57·Published·Cited by 3 cases

Opinion

COURT OF APPEALS

LICKING COUNTY, OHIO

FIFTH APPELLATE DISTRICT

JAMES HELFRICH JUDGES:

Hon. William B. Hoffman, P.J.

Appellant Hon. Sheila G. Farmer, J.

Hon. Craig R. Baldwin, J.

-vs-

Case No. 13-CA-57

TIMOTHY MADISON, ET AL.

Appellees OPINION

CHARACTER OF PROCEEDING: Appeal from the Licking County Court of Common Pleas Court, Case No. 07-CV-394

JUDGMENT: Affirmed in part; Reversed in part; and Final Judgment Entered

DATE OF JUDGMENT ENTRY: May 5, 2014

APPEARANCES:

For Appellant For Appellees

JAMES HELFRICH, PRO SE MADISON AND ROSAN LLP P.O. Box 921 39 East Whittier Street Pataskala, Ohio 43062 Columbus, Ohio 43206

Hoffman, P.J.

{¶1} Appellant, James Helfrich, appeals the June 26, 2013 Judgment Entry entered by the Licking County Common Pleas Court awarding appellees Timothy Madison and Madison & Rosan, LLP ("Lawyer Defendants") and Carol Strickland, David Garner and N.R.T. Columbus Inc. d.b.a. Coldwell Banker King Thompson Realty ("Real Estate Defendants") attorney's fees and costs in the amount of $45,566.23.

STATEMENT OF FACTS AND CASE

{¶2} In February of 2004, Appellant filed suit in the Licking County Municipal Court against appellees Strickland, Garner and Coldwell Banker over his purchase of a home. Appellant dismissed the Municipal Court case and brought suit for the same claims in Licking County Common Pleas Court (Case No. 05 CV 00120) in January of 2005, seeking $27,000.00 in damages. Appellees were granted summary judgment when Appellant failed to present any evidence of damages. In that case, Appellant sought to amend his complaint to join the defendants' counsel, Timothy Madison, as a defendant. The motion was denied.

{¶3} On March 16, 2007, Appellant filed a pro se complaint in the instant case alleging tortious interference with a business relationship, abuse of process and fraud against the Real Estate Defendants, whom he had sued in the prior two cases, and against the Lawyer Defendants, who had represented the Real Estate Defendants in the prior cases. On April 13, 2007, Appellees filed a motion to dismiss the complaint, or in the alternative for summary judgment, and a counterclaim asserting Appellant is a vexatious litigator, as defined by R.C. 2323.52.

{¶4} The trial court granted summary judgment on the vexatious litigator counterclaim in favor of Appellees without addressing the motion to dismiss the complaint. This Court reversed the trial court's granting of summary judgment and remanded for further proceedings in Helfrich v. Madison, 5th Dist. No. 08–CA–150, 2009–Ohio–5140.

{¶5} Following our remand, the trial judge recused himself and a visiting judge was assigned to conduct all further proceedings in the case. Appellant amended his complaint on February 16, 2010, adding Mark Serrott as an additional defendant. Appellees moved to strike the amended complaint. Before ruling on the motion to strike, the trial court stayed all proceedings in order to rule on the counterclaim. Following a bench trial, the court found Appellant to be a vexatious litigator who must obtain leave of court to file or pursue a claim in any Ohio trial court. Appellant appealed. This Court affirmed the trial court's judgment. Helfrich v. Madison, 5th Dist. No. 11–CA–26, 2012– Ohio–551.

{¶6} On March 14, 2011, Appellant voluntarily dismissed all claims against Appellees. Appellees filed a timely post-judgment motion for attorney fees and expenses for frivolous conduct, pursuant to R.C. 2323.51. The trial court held an evidentiary hearing on the motion. Following the hearing, the trial court found Appellant had engaged in frivolous conduct, as defined by R.C. 2323.51, and ordered Appellant pay Appellees' attorney fees and expenses in the amount of $118,451.05.

{¶7} Appellant appealed the trial court's decision in Helfrich v. Madison, Licking App. No. 2011-CA-89, 2012-Ohio-3701. This Court again reversed the decision of the trial court in part, and remanded the matter to the trial court holding,

Licking County, Case No. 13-CA-57 4

{¶8} "However, we do not read our decision in Mid–Ohio so broadly as to encompass a counterclaim that is in effect a separate action from the underlying complaint. A party seeking to have a person declared a vexatious litigator must do so in a civil action pursuant to R.C. 2323.52. This statute has been interpreted to require the filing of a separate action or a counterclaim. A party seeking to have a person declared a vexatious litigator may not do so merely by motion filed in the underlying case. Kinstle v. Union County Sheriff's Office, 3rd Dist. No. 14–07–16, 2007–Ohio–6024, ¶ 9. Therefore, although the filing of the instant complaint was a part of appellees' claim that appellant is a vexatious litigator, the counterclaim seeking to have appellant declared a vexatious litigator is a separate action and appellees must show frivolous conduct in the defense of the counterclaim in order to be entitled to fees.

{¶9} "Appellees failed to present evidence that appellant acted in a frivolous manner in his defense of the counterclaim. Certainly appellant is entitled to defend himself when a counterclaim is filed against him. Appellant prevailed on his first appeal of the summary judgment finding him to be a vexatious litigator because the court had based its judgment on material that was not of evidentiary quality as required by Civ. R. 56. Further, appellee Madison specifically testified that appellant was not frivolous in choosing to defend himself. Tr. (II) 97. While Madison testified that appellant filed things that he would deem frivolous, there was no specific evidence presented concerning what documents appellant filed in defense of the counterclaim that were frivolous, nor did the trial court make specific findings of frivolous conduct in conjunction with the counterclaim. The trial court found that the counterclaim sought to show 'vexatious conduct,' which is tantamount to 'frivolous conduct.' While the two statutes share similar definitions, the issue is not whether appellant engaged in frivolous conduct in his past lawsuits so as to meet the definition of a vexatious litigator, but whether he engaged in frivolous conduct specifically in relation to his defense of the vexatious litigator complaint. Further, the trial court found that appellees should recover fees and expenses 'for a public service beyond their own interests by restraining a vexatious litigator's future imposition on the courts and other potential defendants.' Judgment Entry, August 19, 2011, p. 15. However, there is no statutory or legal authority for the award of fees on this basis.

{¶10} "The third assignment of error is sustained.

{¶11} "***

{¶12} "The judgment of the Licking County Common Pleas Court is affirmed in part and reversed in part. This cause is remanded to the court with instructions to calculate the amount of fees and expenses incurred in conjunction solely with the complaint filed by appellant and not including fees and expenses incurred in pursuit of appellees' counterclaim. Costs split evenly between the parties." (Emphasis added.)

{¶13} Appellees attempted to appeal this Court's decision to the Ohio Supreme Court relative to this Court's denial of fees associated with the vexatious litigator counterclaim proceedings. Appellant Helfrich attempted to cross-appeal this Court's decision relating to fees for his engaging in frivolous conduct as to his own claims. On March 13, 2013, the Ohio Supreme Court denied the requests of both sides for further review.

{¶14} On remand, the trial court conducted an evidentiary hearing on April 29, 2013 and June 19, 2013 to supplement the evidence submitted at the earlier sanction

Licking County, Case No. 13-CA-57 6

hearings on June 23, 2011 and August 18, 2011. Via Opinion and Judgment Entry of June 26, 2013, the trial court held,

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