Kormanik v. Cooper

941 N.E.2d 110, 190 Ohio App. 3d 184
CourtOhio Court of Appeals
DecidedSeptember 30, 2010
DocketNos. 10AP-178, 10AP-179, 10AP-187, and 10AP-188
StatusPublished
Cited by2 cases

This text of 941 N.E.2d 110 (Kormanik v. Cooper) 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
Kormanik v. Cooper, 941 N.E.2d 110, 190 Ohio App. 3d 184 (Ohio Ct. App. 2010).

Opinion

Sadler, Judge.

{¶ 1} Plaintiff-appellant, Paul S. Kormanik (“Kormanik”), and defendant-appellant, Ohio McGivney Pooled Special Needs Trust (“McGivney Trust”) (collectively, “appellants”), fíléd these consolidated appeals seeking reversal of judgments by the Franklin County Court of Common Pleas, Probate Division, in which the trial court dismissed the Ohio Department of Job and Family Services (“ODJFS”) and the state of Ohio (collectively, “state defendants”) as parties to these cases. The state defendants filed motions to dismiss the appeals for lack of a final, [186]*186appealable order. Because the judgments appealed from do not constitute final, appealable orders, we grant the motions to dismiss.

{¶ 2} These appeals involve cases in which Kormanik, acting as appointed guardian for two individuals who were found to be incompetent, filed actions in the probate court seeking to have qualifying pooled special-needs trusts established, pursuant to Section 1396p(d)(4)(C), Title 42, U.S.Code, on behalf of the two individuals. The first case, No. 524085 B (“the Baxter case”), named as defendants Violet Baxter (the individual for whom the trust was to be established), the state of Ohio, ODJFS, and the McGivney Trust. The second case, No. 536041 B (“the Cooper case”), named as defendants David Cooper (the individual for whom the trust was to be established), eight members of Cooper’s family who may have an interest as next of kin, the state of Ohio, ODJFS, and the McGivney Trust. Each complaint stated that its purpose was to have the trial court establish a qualifying special-needs trust that would maintain the ward’s eligibility to receive Medicaid benefits, with the McGivney Trust being the holder of the trust accounts.

{¶ 3} In each case, the state defendants filed a motion to dismiss pursuant to Civ.R. 12(B)(1) and (6). The state defendants argued that the only reason for including them as defendants in the action was so the court would be able to determine whether the trusts to be established would maintain Medicaid eligibility. The state defendants argued that the probate court had no jurisdiction to determine an individual’s eligibility for Medicaid, because such determinations can be made only by administrative determination by the state agency responsible for Medicaid administration, citing In re Guardianship of Stowell (Aug. 3, 1995), 10th Dist. No. 95APF01-128, 1995 WL 458963. The state defendants argued that they should be dismissed as parties, and the trial court should then determine whether to establish the requested trusts. In the event that the trusts were established, determination of Medicaid eligibility would then be made at the administrative level by following the standard process.

{¶ 4} In response to the motions to dismiss, Kormanik argued that the actions sought not just establishment of trusts, but establishment of trusts that would comply with Section 1396(d)(4)(C), Title 42, U.S.Code, and thus not affect the wards’ Medicaid eligibility. Kormanik argued that while the state defendants were not necessary parties to the establishment of the trust, their inclusion as parties would prevent a later conclusion by the state defendants that the trusts, if established by the probate court, did not constitute qualifying trusts for purposes of Section 1396(d)(4)(C), Title 42, U.S.Code. The McGivney Trust also filed memoranda opposing the state defendants’ motions to dismiss, arguing that R.C. 5802.01(C) conferred on the probate court the authority to declare rights under a [187]*187trust established by the court and that the claims included a request for such a declaration of rights.

{¶ 5} The trial court concluded that any decision it made regarding whether a trust it established would be a qualifying trust under Section 1396(d)(4)(C), Title 42, U.S.Code, would constitute a determination regarding Medicaid eligibility. The trial court thus concluded that the state defendants had no interest in the proceedings regarding establishment of the trusts and therefore granted the state defendants’ motions to dismiss. The trial court also noted that eligibility for public assistance is subject to changes by the General Assembly and that any determination made by the court regarding Medicaid eligibility at the time of the creation of a trust would not ensure Medicaid eligibility in the future. Therefore, any finding by the trial court regarding eligibility even with the state defendants as parties to the action would have no binding effect. The trial court’s entries in the two cases did not include language stating that there was no just reason for delay and did not otherwise designate the entries as final, appealable orders.

{¶ 6} Appellants then filed these appeals. The state defendants filed motions to dismiss each of the appeals, arguing that the trial court’s judgments dismissing them from the two actions did not dispose of the entire action in either of the cases and did not include language that there was no just cause for delay pursuant to Civ.R,. 54. We issued an entry stating that the motions would be submitted to the court at the time the cases were submitted on the merits.

{¶ 7} 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. Browder v. Shea, 10th Dist. No. 04AP-1217, 2005-Ohio-4782, 2005 WL 2210667, ¶ 10, citing State ex rel. Wright v. Ohio Adult Parole Auth. (1996), 75 Ohio St.3d 82, 84, 661 N.E.2d 728. “ ‘[T]he entire concept of “final orders” is based upon the 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.’ ” 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. “ ‘A judgment that leaves issues unresolved and contemplates that further action must be taken is not a final appealable order.’ ” 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. 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). Denham v. New Carlisle (1999), 86 Ohio St.3d 594, 595, 716 N.E.2d 184, citing Chef Italiano Corp. v. Kent State Univ. (1989), 44 Ohio St.3d 86, 88, 541 N.E.2d 64.

[188]*188{¶ 8} Appellants argue that the trial court’s decisions constitute final orders under R.C. 2505.02 because they affect the substantial rights of Kormanik’s wards and prevent a judgment. Appellants base their argument on the idea that the probate court’s relationship with its wards is unique, given that the probate court’s duty is always to take actions on behalf of its wards with the best interests of its wards in mind.

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Cite This Page — Counsel Stack

Bluebook (online)
941 N.E.2d 110, 190 Ohio App. 3d 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kormanik-v-cooper-ohioctapp-2010.