Hoffman v. Arthur

2021 Ohio 2318
Ohio Court of Appeals·Decided July 7, 2021·No. 2020CA0009·Published

Opinion

COURT OF APPEALS

COSHOCTON COUNTY, OHIO

FIFTH APPELLATE DISTRICT

DOUGLAS G. HOFFMAN : JUDGES:

:

: Hon. Craig R. Baldwin, P.J.

Plaintiff-Appellee : Hon. W. Scott Gwin, J.

: Hon. Patricia A. Delaney, J.

-vs- :

: Case No. 2020CA0009

: (consolidated with 2020CA0016)

PHILLIP F. ARTHUR, EXECUTOR OF :

THE ESTATE OF SANDRA L. :

HOFFMAN :

:

:

Defendant-Appellant : OPINION

CHARACTER OF PROCEEDING: Appeal from the Coshocton County Court of Common Pleas, Case No. 19-

CI-0424

JUDGMENT: REVERSED AND REMANDED;

MOTION TO DISMISS DENIED

DATE OF JUDGMENT ENTRY: July 7, 2021

APPEARANCES:

For Plaintiff-Appellee: For Defendant-Appellant:

ROBERT E. WEIR BRAIN W. BENBOW 305 Main Street BENBOW LAW OFFICES LLC Coshocton, OH 43812 265 Sunrise Center Drive Zanesville, OH 43701

Delaney, J.

{¶1} Defendant-Appellant Phillip F. Arthur, Executor of the Estate of Sandra L.

Hoffman appeals the June 25, 2020 and November 3, 2020 judgment entries of the Coshocton County Court of Common Pleas.

FACTS AND PROCEDURAL HISTORY The Probate Court Proceedings

{¶2} On December 15, 2015, Plaintiff-Appellee Douglas G. Hoffman filed an action in the Coshocton County Probate Court entitled Hoffman v. Hoffman, Case No. 21540001. In his complaint, Hoffman alleged his mother, Sandra Hoffman, in her capacity as successor Trustee of the Kenneth G. Hoffman Revocable Trust and as Trustee of the Sandra L. Hoffman Revocable Trust improperly transferred real property to Defendant Phillip F. Arthur and Defendant Jahweh, LLC. Phillip F. Arthur was the sole member of Jahweh, LLC. Hoffman asserted a claim of undue influence against Arthur and claims for declaratory judgment and constructive trust against Sandra Hoffman.

{¶3} On July 8, 2016, the Probate Court appointed Jetta Mencer as the Guardian of the Person and Estate of Sandra Hoffman. Jetta Mencer (hereinafter “Guardian”) was substituted for Sandra Hoffman in the Probate Court proceedings. In her responsive pleadings, the Guardian asserted a counterclaim alleging undue influence by Douglas Hoffman and requested an accounting. The Guardian also claimed undue influence and breach of fiduciary duty in her cross-claim against Phillip Arthur and Jahweh, LLC.

{¶4} Phillip Arthur filed an answer, alleging claims for declaratory judgment and unjust enrichment.

The Guardian’s Judgment Against Douglas Hoffman

{¶5} On August 3, 2017, the Guardian filed a motion for summary judgment against Douglas Hoffman. In her motion, the Guardian argued there was no genuine issue of material fact that Douglas Hoffman improperly made cash withdrawals from Sandra Hoffman’s accounts and applied it to his own use. On October 5, 2017, the Probate Court granted the Guardian’s motion for summary judgment against Douglas Hoffman. The Probate Court ordered Douglas Hoffman “to return to the Guardian $408,162.69 wrongfully taken from Sandra Hoffman.” (Judgment Entry, October 5, 2017). On November 6, 2017, the trial court issued a final judgment against Douglas Hoffman in the amount of $408,162.69.

{¶6} On November 20, 2017, the Probate Court issued a Certificate of Judgment for Lien upon Lands and Tenements in Case No. 2017JLD139 for the November 6, 2017 judgment.

{¶7} Douglas Hoffman appealed the Probate Court’s November 6, 2017 judgment entry to this Court in Case No. 2017CA0014. We dismissed the appeal on April 20, 2018 for lack of a final appealable order. Upon reconsideration, we reactivated the appeal on May 18, 2018. Douglas Hoffman voluntarily dismissed his appeal on September 13, 2018.

The Settlement Agreement: Probate Court Retains Jurisdiction

{¶8} Douglas Hoffman, the Guardian, Phillip Arthur, and Jahweh, LLC entered into a Settlement Agreement and Release, effective January 20, 2018. Relevant to this appeal, the terms of the Settlement Agreement state as follows:

***

WHEREAS, on October 5, 2017, the Coshocton County Probate Court entered a judgment in favor of the Guardian against Plaintiff Doug Hoffman in the Litigation, ordering Doug to return to the Guardian $408,162.69 taken from Sandra; and

***

10. The Defendants’ Release of the Plaintiffs, the Guardian, and her ward, Sandra. In consideration of the foregoing promises, the Defendants [Phillip Arthur and Jahweh, LLC] and their respective heirs, members, successors, predecessors, agents, representatives, assigns, insurers, insureds, or any other person or entity affiliated with the Defendants irrevocably and unconditionally release, acquit and forever discharge the Plaintiffs, the Guardian, and her ward, Sandra, and their respective heirs, successors, predecessors, agents, representatives, assigns, insurers, insureds, or any other person or entity affiliated with the Plaintiffs, the Guardian, and her ward, Sandra, from any and all rights, claims, duties, obligations, liabilities, causes of action, demands, damages (including punitive and exemplary damages), contract rights, costs, penalties, claims of attorney’s fees, bad faith and expenses, contributions and indemnities whatsoever, in law or in equity, past or present, pending or not pending, known or unknown, foreseen or unforeseen (“Claims”), which may exist against the Plaintiffs, the Guardian, or her ward, Sandra, including but not limited to all Claims in any way related to any allegations or claims at issue in the litigation.

***

12. No Effect on the Judgment Against Doug. The Parties agree that this Agreement has no effect on the Guardian’s judgment against Plaintiff Doug Hoffman, which remains in full force and effect.

***

17. Governing Law and Venue. This Agreement is governed by and shall be interpreted under Ohio law. The sole and exclusive venue for any litigation among the Parties that may arise out of, or is related to this Agreement is in the Coshocton County Common Pleas Court, Probate Division (the “Court”).

{¶9} On January 18, 2018, the trial court issued a Final Judgment Entry that states in pertinent part:

***

The Parties represent that the Agreement has no effect on the order and judgment entered on October 5, 2017 granting summary judgment for compensatory damages of $408,162.69 in favor of Guardian on her Counterclaim against Plaintiff Douglas G. Hoffman, which is unpaid in full.

Based upon the Agreement and consent of the Parties, it is hereby

***

ORDERED, that pursuant to the Agreement this Court shall retain jurisdiction to enter any all subsequent orders that may be necessary to implement, interpret or enforce the rights or obligations of the Parties under the Agreement.

Sandra Hoffman’s Estate

{¶10} Sandra Hoffman passed away on September 8, 2018.

{¶11} On June 4, 2019, Robert Weir, counsel for Douglas Hoffman, applied to probate the will for Sandra Hoffman. He also filed a motion to bypass the will of Sandra Hoffman. On August 23, 2019, Phillip Arthur applied for authority to administer the estate because the Last Will and Testament of Sandra Hoffman named Phillip Arthur as Executor. On September 13, 2019, the trial court appointed Robert Weir, Douglas Hoffman’s attorney, as the Administrator WWA of the Estate of Sandra Hoffman.

Douglas Hoffman’s Original Motion for Summary Judgment

{¶12} On October 22, 2019, Douglas Hoffman filed a motion for summary judgment in the Probate Court proceeding. In his motion for summary judgment, Douglas Hoffman argued: (1) Phillip Arthur previously released all rights to inheritance from the Estate of Sandra Hoffman based on the Settlement Agreement, (2) the contingent beneficiaries to the will of Sandra Hoffman had no standing to make a claim to inherit the assets, and (3) Douglas Hoffman satisfied the $408,169.62 judgment. In support of his motion, he attached the affidavit of the Guardian and Larry J. McClatchey. The October 21, 2019 affidavit of the Guardian stated in pertinent part:

***

3. I retained Larry J. McClatchey to represent the Guardian in the Guardianship Case.

***

5. Subsequent to the settlement of in the Guardianship Case with Phillip F.

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