In re Estate of Southard

949 N.E.2d 1049, 192 Ohio App. 3d 590
CourtOhio Court of Appeals
DecidedFebruary 24, 2011
DocketNo. 10AP-409
StatusPublished
Cited by5 cases

This text of 949 N.E.2d 1049 (In re Estate of Southard) 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
In re Estate of Southard, 949 N.E.2d 1049, 192 Ohio App. 3d 590 (Ohio Ct. App. 2011).

Opinion

Bryant, Presiding Judge.

{¶ 1} Appellants, the law firm of Leeseberg & Valentine (“L & V”) and Diana Southard, executor of the estate of Peter C. Southard, appeal from a judgment of the Franklin County Court of Common Pleas, Probate Division, determining that the probate court lacked jurisdiction to resolve the fee-sharing dispute between L & V and appellee, William Morse. Appellants assign a single error:

In an action arising out of a wrongful death settlement, the probate court improperly declined to exercise jurisdiction over a dispute between attorneys and the executor of the estate.

Because the probate court did not err in determining that it lacked jurisdiction, we affirm.

I. Facts and Procedural History

{¶ 2} Peter Southard died on June 11, 2005; the probate court admitted his last will and testament to probate on July 5, 2005. Pursuant to the will, the probate court appointed Diana Southard, Peter’s wife, to serve as executor of his estate. Diana retained L & V to pursue a wrongful-death-and-survival action against the assisted-care facility where Peter had stayed.

{¶ 3} On September 2, 2005, Diana entered into a “Medical Malpractice Claim Investigation Contingent Fee Agreement” with L & V. Under its terms, Diana was to pay L & V 40 percent of the gross amount of any recovery from the wrongful-death-and-survival action. The same day, Diana also signed a “Notification of and Consent to Share Fees” in which L & V and Morse agreed “to assume joint responsibility for the representation” of Diana in her claim against the assisted-care facility. The attorneys further agreed that L & V was to receive two-thirds of any fees derived from the litigation, with Morse receiving one-third. The litigation concluded in April 2009 with a verdict against the assisted-care facility; the parties to the litigation subsequently settled the case for the amount of the jury verdict, $6.5 million.

[593]*593{¶ 4} On December 1, 2009, Adam Rinehart, an attorney for Diana, filed with the probate court an “Application to Approve Settlement and Distribution of Wrongful Death and Survival Claims.” See C.P.Sup.R. 70. The application reflected not only the settlement of $6.5 million but also attorney fees of $2.6 million, or 40 percent of the total settlement. The “Distribution Settlement Sheet,” attached to the application, indicated that L & V would receive $2.4 million of the $2.6 million, with the remaining $200,000 going to Morse. Although the contingent-fee agreement was attached to the application, the fee-sharing agreement was not. Morse filed an “Objection to Proposed Division of Attorneys Fees on Distribution Settlement Sheet,” pointing the court to the fee-sharing agreement.

{¶ 5} On January 6, 2010, the probate court conducted a hearing regarding the application. Concluding that all necessary parties consented, the court approved the settlement and all proposed distributions to the surviving spouse, children, and grandchildren of Peter Southard and subsequently ordered the proceeds from the wrongful-death-and-survival action distributed to them.

{¶ 6} At the January 6 hearing, the court also approved the total amount of $2.6 million in attorney fees. Noting Morse’s objection to the proposed division of those fees, the court ordered the $866,666.67 in dispute to be deposited into an interest-bearing account and instructed the parties to submit briefs setting forth the probate court’s jurisdiction over the fee dispute. After the parties briefed the issue, the probate court issued an entry, concluding that it lacked jurisdiction over the dispute. The probate court explained that because the matter was a fee-sharing dispute between attorneys, it must be resolved through the Ohio State Bar Association’s (“OSBA”) mediation or arbitration process pursuant to DR 2-107(B) and Prof.Cond.R. 1.5(f). The probate court stated that after the OSBA resolved the issue, “either L & V or Mr. Morse may apply to the court for disbursement of these funds.” Appellants appeal from the probate court’s determination that it lacked jurisdiction over the fee dispute between L & V and Morse.

II. Probate Court’s Entry is a Final, Appealable Order

{¶ 7} Morse filed a motion to dismiss the appeal, asserting that the probate court’s entry is not a final, appealable order because the probate court reserved jurisdiction to take further action in the matter after the OSBA resolved the fee-sharing dispute. Because Morse’s motion raises an issue regarding our jurisdiction to entertain the appeal, we first must resolve the motion.

{¶ 8} Pursuant to Section 3(B)(2), Article IV, Ohio Constitution and R.C. 2505.03, appellate courts have jurisdiction to review only final orders, judgments, or decrees. “ ‘ “[T]he entire concept of ‘final orders’ is based upon [594]*594the rationale that the court making an order which is not final is thereby retaining jurisdiction for further proceedings. A final order, therefore, is one disposing of the whole case or some separate and distinct branch thereof.” ’ ” Browder v. Shea, 10th Dist. No. 04AP-1217, 2005-Ohio-4782, 2005 WL 2210667, ¶ 10, quoting Noble v. Colwell (1989), 44 Ohio St.3d 92, 94, 540 N.E.2d 1381, quoting Lantsberry v. Tilley Lamp Co. (1971), 27 Ohio St.2d 303, 306, 56 O.O.2d 179, 272 N.E.2d 127. Conversely, “ ‘ “[a] judgment that leaves issues unresolved and contemplates that further action must be taken is not a final appealable order.” ’ ” Id., quoting State ex rel. Keith v. McMonagle, 103 Ohio St.3d 430, 2004-Ohio-5580, 816 N.E.2d 597, ¶ 4, quoting Bell v. Horton (2001), 142 Ohio App.3d 694, 696, 756 N.E.2d 1241.

{¶ 9} “A trial court’s order is final and appealable only if it meets the requirements of R.C. 2505.02 and, if applicable, Civ.R. 54(B).” Fahey Banking Co. v. United Tel. Credit Union, Inc., 10th Dist. No. 09AP-1130, 2010-Ohio-2193, 2010 WL 1987626, ¶ 18, citing Denham v. New Carlisle (1999), 86 Ohio St.3d 594, 595, 716 N.E.2d 184. Civ.R. 54(B) applies to multiclaim or multiparty actions and holds that a “court may enter final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay.” Civ.R. 54(B) does not apply to this appeal, as the probate court’s decision addressed the only remaining issue and concluded that the probate court lacked jurisdiction over it.

{¶ 10} R.C. 2505.02(B)(1) is pertinent in resolving whether the probate court’s entry is a final, appealable order. It provides that “[a]n order is a final order that may be reviewed, affirmed, modified, or reversed, with or without retrial, when it is * * * [a]n order that affects a substantial right in an action that in effect determines the action and prevents a judgment.” An order that affects a substantial right is “one which, if not immediately appealable, would foreclose appropriate relief in the future.” Bell v. Mt. Sinai Med. Ctr. (1993), 67 Ohio St.3d 60, 63, 616 N.E.2d 181.

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Cite This Page — Counsel Stack

Bluebook (online)
949 N.E.2d 1049, 192 Ohio App. 3d 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-southard-ohioctapp-2011.