In Re Suitability of Young

590 N.E.2d 1344, 70 Ohio App. 3d 269, 1990 Ohio App. LEXIS 4916
CourtOhio Court of Appeals
DecidedNovember 8, 1990
DocketNo. 90AP-17.
StatusPublished

This text of 590 N.E.2d 1344 (In Re Suitability of Young) 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 Suitability of Young, 590 N.E.2d 1344, 70 Ohio App. 3d 269, 1990 Ohio App. LEXIS 4916 (Ohio Ct. App. 1990).

Opinion

Reilly, Presiding Judge.

This is an R.C. 119.12 appeal from a judgment of the Franklin County Court of Common Pleas affirming an order of the Ohio Real Estate Commission. The commission found that appellants, YOU, Inc. (“YOU”) and Michael J. *271 Young (“Young”), violated provisions of R.C. Chapter 4735 and commission rules and, thus, the commission suspended their broker’s licenses.

Appellants assert seven assignments of error, as follows:

“I. Appellee’s finding below that appellant YOU violated Section 4735.-18(A)(21) of the Ohio Revised Code is neither supported by reliable, probative, and substantial evidence nor in accordance with law.

“II. Appellee’s finding that appellant Young had violated Section 4735.-18(A)(6) of the Ohio Revised Code because he permitted and authorized YOU to advertise under the trade name Scarlet And Gray in February, 1988 is not supported by any reliable, probative or substantial evidence.

“HI. Appellee’s finding that appellant YOU had violated Section 4735.-18(A)(6) of the Ohio Revised Code because it had, in early 1988, continued to represent that it was a member of the Century 21 franchise system is not supported by any reliable, probative or substantial evidence.

“IV. The finding below that appellant Young was guilty of misconduct in violation of Section 4735.18(A)(6) of the Ohio Revised Code because he permitted and authorized appellant YOU to represent in 1988 that it was still a member of the Century 21 franchise system is not supported by any reliable, probative or substantial evidence.

“V. Appellee’s finding that appellant YOU had violated Section 4735.-18(A)(12) of the Ohio Revised Code is not supported by any reliable, probative or substantial evidence.

“VI. The term ‘misconduct’ in Section 4735.18(A)(6) of the Ohio Revised Code is undefined by statute or administrative rule and is unconstitutionally vague; therefore, the findings below that appellants were guilty of ‘misconduct’ in violation of Section 4735.18(A)(6) must be reversed.

“VII. Appellee’s findings that appellants had violated Sections 4735.-18(A)(6) and 4735.18(A)(12) of the Ohio Revised Code because appellant YOU allegedly represented in early 1988 that it was still a member of the Century 21 franchise system must be reversed as not in accordance with law, because those findings were based on charges initiated by a written complaint filed by Century 21 with the. Division of Real Estate and the division failed to comply with the informal dispute resolution mechanisms set forth in Section 4735.051 of the Ohio Revised Code in processing that complaint.”

Appellant Young is the president and sole shareholder of YOU. For fourteen years, Young has been a licensed real estate broker in Ohio. For twenty years, he has been engaged in the real estate business. Young owns and operates several corporate enterprises which conduct real estate broker *272 age and related services. One of these corporations, YOU, also has a broker’s license.

Since 1985, appellants operated in part as a franchise of the Century 21 realty company. Then in 1987, appellants failed to pay Century 21’s required franchise fees. Hence, Century 21 sent a letter to appellants in November 1987 indicating that the franchise would be terminated. Thereafter, Young and Century 21 negotiated to resolve the matter. Apparently, Young intended to continue the Century 21 franchise. But, in late December 1987, he let the franchise terminate. It is undisputed that as of January 1, 1988 appellants were not entitled to do business under the Century 21 name. Instead, Young chose to do business under the new trade name of “Scarlet and Gray.”

Young, however, did not obtain prior authorization from the commission for the use of the new trade name. After he had ordered advertising under the new name, the commission informed him that another party had rights to the Scarlet and Gray name and, therefore, he could not use it without consent of the owner and the commission. In any event, for some time after the Century 21 termination, it is alleged that appellants conducted business and advertised under both the Century 21 and Scarlet and Gray names.

When Century 21 discovered the unauthorized use of its name, the company informed the commission. An investigation ensued and appellants were ultimately charged with violations of the real estate licensing law.

The notices of hearing served upon appellants indicate the specific charges. As to YOU, the commission charged in Count One that it advertised as “Scarlet and Gray Realtors,” violating R.C. 4735.18(A)(21) and Ohio Adm.Code 1301:5-1-02. The commission charged in Count Two that YOU continuously represented itself as a Century 21 franchise after January 1, 1988 when it knew or should have known that it was not such a franchise, thus violating R.C. 4735.18(A)(6) and (12). Concerning Young, the commission charged two counts of misconduct because of his permission or authorization of YOU’s actions, thus violating R.C. 4735.18(A)(6).

A hearing was held before a commission hearing examiner, who found against appellants. The examiner recommended findings against YOU, for violation of R.C. 4735.18(A)(6) and (12), but not a separate finding for violation of R.C. 4735.18(A)(21). After a hearing, the commission approved the hearing examiner’s recommendations and suspended appellants’ licenses.

Appellants appealed to the common pleas court pursuant to R.C. 119.12. The court found the commission’s orders were supported by substantial, reliable and probative evidence and affirmed. Consequently, appellants appealed to this court.

*273 This court’s review is confined to whether there has been an abuse of discretion. Angelkovski v. Buckeye Potato Chips Co. (1983), 11 Ohio App.3d 159, 11 OBR 242, 463 N.E.2d 1280; Hartzog v. Ohio State Univ. (1985), 27 Ohio App.3d 214, 216, 27 OBR 254, 256, 500 N.E.2d 362, 364. This implies more than a mere error in judgment. It implies a decision that is clearly wrong. Or in other words, it implies a decision without a reasonable basis. Angelkovski, supra, paragraph three of the syllabus.

We will first consider the charges against YOU, then the charges against Young.

In the first assignment of error, appellants contend that the commission erred in finding YOU in violation of R.C. 4735.18(A)(21) and Ohio Adm.Code 1301:5-1-02 for use of the Scarlet and Gray trade name. Appellants argue that there was no evidence that YOU’s use of the name was misleading or inaccurate within the meaning of the statute. Appellants also maintain that the commission was without authority to promulgate said rule.

R.C. 4735.18(A) includes thirty-four distinct grounds for suspension or revocation of a realty license.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Carroll v. Department of Administrative Services
460 N.E.2d 704 (Ohio Court of Appeals, 1983)
Ragias v. Ohio Real Estate Commission
502 N.E.2d 705 (Ohio Court of Appeals, 1986)
Alban v. Ohio Real Estate Commission
442 N.E.2d 771 (Ohio Court of Appeals, 1981)
Provens v. Ohio Real Estate Commission
341 N.E.2d 329 (Ohio Court of Appeals, 1975)
Hartzog v. Ohio State University
500 N.E.2d 362 (Ohio Court of Appeals, 1985)
Keaton v. State
442 N.E.2d 1315 (Ohio Court of Appeals, 1981)
Manus v. State, Department of Commerce
519 N.E.2d 684 (Ohio Court of Appeals, 1987)
Angelkovski v. Buckeye Potato Chips Co.
463 N.E.2d 1280 (Ohio Court of Appeals, 1983)
Richard T. Kiko Agency, Inc. v. Ohio Department of Commerce
549 N.E.2d 509 (Ohio Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
590 N.E.2d 1344, 70 Ohio App. 3d 269, 1990 Ohio App. LEXIS 4916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-suitability-of-young-ohioctapp-1990.