Horvath v. Lefton

176 N.E.2d 877, 86 Ohio Law. Abs. 13, 19 Ohio Op. 2d 68, 1961 Ohio Misc. LEXIS 318
CourtCuyahoga County Common Pleas Court
DecidedMarch 17, 1961
DocketNo. 663067
StatusPublished

This text of 176 N.E.2d 877 (Horvath v. Lefton) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horvath v. Lefton, 176 N.E.2d 877, 86 Ohio Law. Abs. 13, 19 Ohio Op. 2d 68, 1961 Ohio Misc. LEXIS 318 (Ohio Super. Ct. 1961).

Opinion

Silbert, J., J.

The defendant, Gilbert Lefton, hereinafter designated Seller-Debtor, was granted an oral rehearing after the Court sustained in part the demurrers of the plaintiff, David Horvath, hereinafter designated Assignee, and the new parties defendant, William A. Risman, William Drosd and Henry Lef-kowitz, hereinafter designated Assignors to a second amended cross-petition. This memorandum will dispose of said motion for a rehearing keeping in mind that the written portion of it is directed solely to the ruling sustaining prongs 3 and 4 of the demurrer of Assignee.

In giving the pleadings as liberal a construction as possible, 43 Ohio Jurisprudence 2d, 64 No., 58, the events and contracts here involved arose as follows.

On December 17, 1953, the Seller-Debtor entered into a written agreement with the Assignors to sell them certain real property which they agreed to buy. This then is contract No. 1.

[15]*15Contemporaneous with the making of the agreement as to the real estate, the Assignors entered into an agreement in writing with the Seller-Debtor that they would purchase from House Mart, Inc., not a party to this action, all lumber for a project for the real estate or else pay Seller-Debtor $1500 as liquidated damages, he being at the time employed by House Mart, Inc. as a salesman on a commission basis. This is contract No. 2.

On January 20, 1954, Assignors assigned to Assignee all of their rights, title and interest to said written agreement as to the real estate; and both of them notified the Seller-Debtor. This is contract No. 3.

On the same date, January 20, 1954, Assignee agreed in writing to perform the obligations of Assignors to purchase the lumber or pay the $1500 liquidated damages to the Seller-Debtor. This is contract No. 4.

These four contracts are brought to the attention of the Court in the pleadings; first, by a Second Amended Petition wherein Assignee by virtue of the rights granted under contract No. 2 sues Seller-Debtor for damages arising out of the refusal to perform contract No. 1; second, the Second Amended Answer by Seller-Debtor wherein contract No. 1 is admitted and then a defense based upon an oral refusal by Assignee to complete the transaction followed by a general denial of all the remaining allegations in the Second Amended Petition; third, by a Second Amended Cross-Petition where the Seller-Debtor joins the Assignors as new parties defendant and again sets out the general terms of contract No. 1 and then the terms of contracts Nos. 3 and 4 and then prays for damages against both the Assignee and Assignors for damages for the failure on the part of Assignors to perform contract No. 3 and for the failure on the part of Assignee to perform contract No. 4; fourth, to the Second Amended Cross-Petition there were filed four prong demurrers by both the Assignee and the Assignors:

(a) the demurrer of the Assignors was based upon the following grounds::

(1) On the face of the cross-petition, there is a misjoinder of parties plaintiff and defendant.

(2) On the face of the cross-petition, there is a defect of parties plaintiff and defendant.

[16]*16(3) On the face of the cross-petition, several causes of action are improperly joined.

(4) On the face of the cross-petition, separate causes of action against several parties are improperly joined.

The Court overruled the prongs numbered 1 and 2 and sustained 3 and 4.

(b) The demurrer of the Assignee was based upon the following grounds:

(1) The cross-petition fails to state facts constituting a cause of action against plaintiff.

(2) There is a misjoinder of parties defendant.

(3) There is an improper joinder of separate causes of action against plaintiff and new parties defendant.

(4) Several causes of action are improperly joined.

The Court overruled prongs numbered 1 and 2 and sustained 3 and 4.

Fifth, the motion for a rehearing. Now, as stated above, the written portion of the motion was directed solely toward prongs 3 and 4 of the demurrer of the Assignee; but during the oral argument which was granted, the entire matter relative to both demurrers was opened by the actions and arguments of the counsel for all of the parties and by the Court in its desire to do justice in this case. The Court, therefore, grants a reconsideration as to all prongs of the demurrers of both the Assignee and the Assignors.

Prong 1 of the demurrer of the Assignee is based on the ground of failure to state facts constituting a cause of action against him. This objection is probably based upon Section 2309.22 (D), Revised Code: “The facts stated do not constitute a counterclaim.”

Granted, a mere assignment of a contract does not operate to cast on an Assignee the liabilities imposed by contract on Assignor, American National Co. v. The Spot Welder Co., 30 Ohio App., 156; but where the Assignee agrees to assume the obligations then the debtor may sue him, American National Co. v. The Spot Welder Co., supra, as a creditor-beneficiary of the Assignee’s contract and it is not necessary for the debtor to discharge the Assignor, Volume 4, Corbin on Contracts, 627 No, 906.

[17]*17As Corbin analyzes it, tbe difficulties in these cases arise when the Courts and parties fail to differentiate between the assignment of rights and the assignment of duties and obligations. Ordinarily, there is merely a simple assignment of all right, title and interest and no statement relative to obligations or duties. This is best illustrated in the case of Tel-Hotel Corp. v. Lexnott Corp. et al., 124 N. Y. S. 2d, 159, 205 Misc., 576. There, there were numerous sales assignments of rights under the sales contracts as well as leases and assignment of the leases. In that case, the Court clearly ruled that unless there was a provision therefor, the Assignee of the rights of a party to a contract does not assume the obligations of that party. In the instant case, the allegations of the counterclaim clearly and unequivocably state that Assignee agreed in writing to perform the obligations of the Assignors.

An additional objection raised is by the Assignee that there was no consideration for the assignment. This is defensive matter, see American National Co. v. The Spot Welder Co., supra, at page 160.

For the above reasons, the Court overrules prong 1 of the demurrer of the Assignee.

The remaining prongs of the demurrer of the Assignee and all of those of the Assignors directed toward the counterclaim are related either to misjoinder or other defect relating to parties or to improper joinder of causes of action. Nowhere in Section 2309.22, Revised Code, do either of these grounds exist.

In coming to its conclusions in this matter, the Court has first had to determine that the counterclaim is based upon two unnumbered causes of action. The first is directed against the Assignors for a failure to perform contract No. 3, and the second is directed against the Assignee for failure to perform contract No. 4. Thus, the Seller-Debtor is counterclaiming under Section 2309.16, Revised Code, against two different persons on two different contracts.

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Related

American National Co. v. Thompson Spot Welder Co.
161 N.E. 435 (Ohio Court of Appeals, 1928)
Tel-Hotel Corp. v. Lexnott Corp.
205 Misc. 576 (New York Supreme Court, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
176 N.E.2d 877, 86 Ohio Law. Abs. 13, 19 Ohio Op. 2d 68, 1961 Ohio Misc. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horvath-v-lefton-ohctcomplcuyaho-1961.