Holstein v. Crescent Communities, Unpublished Decision (9-9-2003)

CourtOhio Court of Appeals
DecidedSeptember 9, 2003
DocketNo. 02AP-1241 (REGULAR CALENDAR)
StatusUnpublished

This text of Holstein v. Crescent Communities, Unpublished Decision (9-9-2003) (Holstein v. Crescent Communities, Unpublished Decision (9-9-2003)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Holstein v. Crescent Communities, Unpublished Decision (9-9-2003), (Ohio Ct. App. 2003).

Opinion

OPINION
{¶ 1} Crescent Communities, Inc. ("Crescent") and Michael J. Young ("Young"), defendants-appellants, appeal from a judgment of the Franklin County Court of Common Pleas adopting the magistrate's decision in favor of Jack D. Holstein, plaintiff-appellee.

{¶ 2} This case was transferred to the Franklin County Court of Common Pleas from Montgomery County on August 1, 2000. Appellee's complaint sought specific performance of a real estate purchase contract entered into between appellee and Crescent. Young was the principal stockholder and president of Crescent. The following facts are undisputed.

{¶ 3} In 1996, Crescent purchased 28.368 acres of real estate located in Randolph Township, Montgomery, Ohio ("property") subject to a purchase-money mortgage. In 1999, the property went into foreclosure as the result of Crescent's failure to pay the mortgage and was sold at a sheriff's sale for $210,000. Prior to confirmation of the sale, Young sought out appellee for assistance in redeeming the property.

{¶ 4} On August 13, 1999, appellee and Crescent entered into a real estate purchase contract ("contract" or "real estate contract"), which provided Crescent with sufficient funds to redeem the property. Pursuant to the contract, Crescent had the option to repurchase the property from appellee within 60 days after the closing at a regularly increasing price over that 60-day period. The contract also provided that, at closing, Crescent would deliver to appellee a recordable general warranty deed to the property. The contract further stipulated that, on or before the expiration of Crescent's right to repurchase the property, Crescent would deliver to appellee "any and all documents, permits, authorities and records (including, but not limited to, plats, engineering or architectural drawings, building plans, site plans, and building permit applications and permits) used by [Crescent], or that would be useful to [appellee], in connection with the ownership, development or resale of the Property." The closing for the real estate contract was held on the same day. Crescent, through Young, executed and delivered a general warranty deed ("deed") to appellee. In exchange, appellee gave Young a check payable to the Montgomery County Clerk of Courts for $210,000, the amount necessary to redeem the property from the sheriff's sale.

{¶ 5} At the end of the closing, Young agreed to deposit the $210,000 with the clerk's office in Montgomery County and obtain an entry setting aside the sheriff's sale and redeeming the property. Young also offered to record the deed for appellee because he was traveling to Montgomery County to redeem the property. Appellee gave the deed to Young for that purpose.

{¶ 6} Young thereafter deposited the purchase price of $210,000 with the Montgomery County Clerk of Courts and obtained and filed the appropriate entry setting aside the sale. Young did not, however, record the deed. Young claimed that he submitted the deed for recording, but it was rejected because of a faulty legal description. Young neither corrected the faulty legal description in the deed nor returned the deed to appellee so that appellee could have it corrected and recorded.

{¶ 7} The Montgomery County Recorder's Office had noted on the prior deed to Crescent that the legal description to that deed would need to be corrected before the next transfer of the property. Nevertheless, when Crescent executed and delivered the deed to appellee at the August 13, 1999 closing, it still contained the same unrecordable legal description. Crescent, therefore, did not provide appellee with a recordable general warranty deed at closing, although Crescent agreed to do so in the contract.

{¶ 8} In the 60 days after the closing, Crescent never exercised its option to repurchase the property. Moreover, Crescent never returned the deed to appellee. Young claimed that he no longer had the original deed in his possession and did not know where it was. Finally, Crescent never delivered to appellee any of the documents, permits, authorities, or records required by the contract.

{¶ 9} On April 14, 2000, appellee filed the present lawsuit against appellants to obtain specific performance of the real estate contract. On January 17, 2002, during the pendency of this case, Crescent filed a Chapter 7 bankruptcy in the bankruptcy court, and an automatic stay went into effect on the same day. On April 10, 2002, the bankruptcy court granted appellee's motion for relief from the automatic stay and did not assert jurisdiction over this case. The bankruptcy court required only that the bankruptcy trustee ("trustee") be given notice of pleadings and hearings in the present case. Before granting the relief from stay, the bankruptcy judge heard and ruled against the argument that the best method of proceeding was to sell the property through the bankruptcy court and litigate any other issue there. In essence, the bankruptcy court held that this action to decide the interests of the property belonged in state court.

{¶ 10} On June 11, 2002, the trustee filed a motion to intervene and for a continuance in the present case, but the trial court denied the motion on June 25, 2002. The matter proceeded to trial before a magistrate on June 27, 2002, without the trustee and solely on appellee's complaint. On July 11, 2002, the magistrate issued a decision in favor of appellee, granting an order quieting title in the property to appellee and an order of specific performance requiring appellants to deliver the deed and relevant documents to appellee. Appellants filed a timely objection to the decision.

{¶ 11} On August 10, 2002, the trial court overruled appellants' objection to the magistrate's decision, holding that: (1) proper transference of a property deed is not a personal service; (2) the parties impliedly consented to try the issue of quiet title pursuant to Civ.R. 54(E)(3)(b); and (3) the bankruptcy court already determined that the bankruptcy trustee was not a necessary party to determine ownership of the property prior to the commencement of the estate when it granted appellee relief from the automatic stay. On November 1, 2002, the court determined appellee the owner of the property as of August 13, 1999, and entered an order to quiet title and for specific performance. Appellants appeal, asserting three assignments of error:

[I.] The Trial Court erred as a matter of law in ordering specific performance of personal services and to perform acts which can only be undertaken by the Bankruptcy Trustee, who is not a party in this action.

[II.] The Decision of that Court of Common Pleas is erroneous as a matter of law as it purports to determine ownership and quiet title to real property in the absence of the Bankruptcy Trustee, who is an indispensible party to such determination.

[III.] The Court erred as a matter of law in granting Appellee quiet title and specific performance as an essential element of a quiet title action is that one is in possession.

{¶ 12} In their first assignment of error, appellants argue that specific performance of personal service contracts is prohibited, and supplying development records and correcting the legal description in the deed, as ordered by the trial court, are personal services because appellants need to use expertise and knowledge to determine which records are relevant. Appellants further argue that the lack of such documents and description in the deed should be used in the assessment of damages instead of specific performance.

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Bluebook (online)
Holstein v. Crescent Communities, Unpublished Decision (9-9-2003), Counsel Stack Legal Research, https://law.counselstack.com/opinion/holstein-v-crescent-communities-unpublished-decision-9-9-2003-ohioctapp-2003.