Johnston, Exr. v. Munger

2025 Ohio 3146
Ohio Court of Appeals·Decided September 4, 2025·No. 114638·Published

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JACQUELINE M. JOHNSTON, : EXECUTOR, ET AL., :

Plaintiffs-Appellees,

: No. 114638

v.

:

DEBORAH MUNGER, :

Defendant-Appellant.

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: September 4, 2025

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-24-993737

Appearances:

Harrington, Hoppe & Mitchell, Ltd., and Matthew M.

Ries, for appellees.

Thomas M. Horwitz Co., LPA, and Thomas M. Horwitz, for appellant.

MICHAEL JOHN RYAN, P.J.:

Defendant-appellant Deborah Munger (“appellant”) appeals from the trial court’s December 3, 2024 judgment vacating its November 25, 2024 entry dismissing the case with prejudice and setting the case for a hearing on plaintiffs-

appellees, Jacqueline Johnston, executor of the estate of John Mathews, Sr., and JJM Reggies Real Estate LLC’s (collectively “appellees”) motion to enforce the settlement agreement. After a thorough review of the facts and pertinent law, we affirm. Factual and Procedural History In March 2024, appellees filed this action against appellant. A detailed recitation of the facts is not necessary for the disposition of this appeal; in summation, the case involves a dispute regarding ownership of appellee JJM Reggies Real Estate LLC.

On November 22, 2024, the parties filed a “stipulation for dismissal with prejudice.”1 The stipulation provided that the “above-captioned matter is settled and dismissed with prejudice, each party to bear its own costs. The Court retains jurisdiction to enforce the settlement agreement between said parties.” The stipulation also contained a signature line, with “IT IS SO ORDERED” language, for the trial court judge to sign. (Capitalization in original.) The trial court judge did not sign the parties’ proposed order. Instead, on November 25, 2024, the trial court issued the following entry: “pursuant to the stipulation filed by the parties on November 22, 2024, case dismissed with prejudice. Court costs assessed as each their own.”

1 The court’s docket indicates that it was filed by only appellant’s counsel, but the stipulation is signed by counsel for all parties.

Two days later, on November 27, appellees filed a motion to reopen the case and enforce the settlement agreement. On December 2, appellant filed a brief in opposition to appellees’ motion and a motion to strike the filing; the trial court did not rule on appellant’s motion to strike. On December 3, the trial court issued the following entry: “The court’s 11/25/2024 journal entry . . . is hereby vacated as having been made in error when the court intended to adopt the stipulated dismissal filed by the parties on 11/22/2024 . . . . The case therefore remains pending on the court’s active docket. Hearing set for 12/11/2024 . . . on [appellees’] motion to enforce settlement agreement . . . .” Appellant appealed from the trial court’s December 3, 2024 judgment and presents the following three assignments of error for our review:

I. The trial court erred when it vacated without jurisdiction the November 25, 2024 dismissal with prejudice.

II. The trial court erred when it failed to grant appellant’s motion to strike appellees’ motion to reopen case.

III. In the alternative, the trial court erred when it set a hearing on the appellees’ motion to enforce settlement agreement instead of denying it.

Relevant Case Law The central issue in this appeal is whether the trial court had jurisdiction to vacate its November 25, 2024 entry dismissing the case with prejudice; appellant contends it did not and appellees contend it did. There are three primary cases that we examine in deciding this issue: (1) Infinite Sec. Solutions, L.L.C. v. Karam Properties, II, 2015-Ohio-1101; (2) State ex rel. Gideon v. Page, 2024-Ohio-4867; and (3) Educare Med. Staffing, LLP v. Stabler, 2024- Ohio-3295 (8th Dist.). Karam Properties In Karam Properties, the Supreme Court of Ohio considered “a trial court’s authority to retain jurisdiction when it dismisses a civil case to thereafter enforce a settlement agreement between the parties.” Id. at ¶ 1.

Karam Properties involved two cases that were consolidated at the trial-court level; the cases revolved around claims that were filed as a result of a fire at an apartment complex in Toledo, Lucas County, Ohio. At a pretrial settlement conference, the parties orally agreed to settle their claims for an agreed-upon sum. The parties advised the trial court that they had resolved all issues except how to divide the settlement funds. They informed the court that they would attempt to resolve their issues regarding division of the settlement money, but they would submit the issue to the court if they were unable to agree.

The governing local rule allowed 30 days following settlement of a case to submit a dismissal entry before “‘the judge may order the case dismissed for want of prosecution or file an order of settlement and dismissal and assess costs.’” Id. at ¶ 9, quoting Lucas Cty. Gen.R. 5.05(F). One week after the parties had agreed to settle, the trial court sua sponte filed a dismissal entry, stating: “Parties having represented to the court that their differences have been resolved, this case is dismissed without prejudice, with the parties reserving the right to file an entry of dismissal within thirty (30) days of this order.” Id.

One of the parties filed a motion to set aside the dismissal entry pursuant to Civ.R. 60(B). The party contended that the dismissal was a mistake because “the settlement had not been finalized, no monies exchanged hands, no papers were exchanged or signed and the remaining outstanding issue of the priority/apportionment of the proceeds between [the parties] ha[d] not been resolved.” Id. at ¶ 10. The party sought to have the trial court vacate the dismissal entry under Civ.R. 60(B)(1) and reopen the case to decide the priority issue.

Another party opposed the motion, contending that the trial court lacked jurisdiction to decide the priority issue because it arose after the final settlement agreement and was the subject of a pending federal lawsuit. And yet another party filed a motion to enforce the settlement agreement and for an order permitting it to pay the agreed-upon settlement amount to the court.

The trial court held a hearing on the Civ.R. 60(B) motion. The filing party contended that the trial court’s dismissal without prejudice was a “placeholder entry, pending submission of whatever the final entry is.” Id. at ¶ 11. The trial court ultimately denied both the Civ.R. 60(B) motion and the motion to enforce the settlement agreement as moot. The trial court reasoned that its dismissal was “conditional, that it retained jurisdiction to determine the priority issues without vacating the dismissal entry, and that [one of the parties’] claim to the settlement funds had priority.” Id.

The party who opposed the Civ.R. 60(B) motion appealed, contending that the court lacked jurisdiction over the matter after the trial court’s dismissal of the case. The court of appeals agreed.

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