Lakhi v. Healthcare Choices, 06ap-806 (8-14-2007)

2007 Ohio 4127
CourtOhio Court of Appeals
DecidedAugust 14, 2007
DocketNo. 06AP-806.
StatusPublished
Cited by10 cases

This text of 2007 Ohio 4127 (Lakhi v. Healthcare Choices, 06ap-806 (8-14-2007)) 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
Lakhi v. Healthcare Choices, 06ap-806 (8-14-2007), 2007 Ohio 4127 (Ohio Ct. App. 2007).

Opinion

OPINION
{¶ 1} Defendant-appellant, Tiffany Mahlerwein, appeals from an order of the Franklin County Court of Common Pleas which, among other things, found her in contempt of court. For the reasons that follow, we reverse the judgment of the common pleas court and remand the matter. *Page 2

{¶ 2} On February 9, 2004, by means of a verified complaint filed in the Franklin County Court of Common Pleas, plaintiff-appellee, Amar D. Lakhi, sued Healthcare Choices Consultants, LLC ("Healthcare Choices" or "company"), and Tiffany Mahlerwein. In his complaint, plaintiff alleged, among other things, that: (1) he and Ms. Mahlerwein were co-owners of Healthcare Choices, with each party owning 50 percent of the company; (2) he and Ms. Mahlerwein were deadlocked in the management of the Healthcare Choices; and (3) Healthcare Choices was insolvent or in imminent danger of insolvency. Accordingly, plaintiff petitioned the court to appoint a receiver for the purpose of judicially dissolving Healthcare Choices.

{¶ 3} Upon plaintiff's motion for immediate appointment of a receiver, the trial court appointed Reg Martin of Martin Management Services, Inc., as the receiver in the matter. In its order appointing a receiver, the trial court also issued this order:

It is further ORDERED that all creditors, claimants, bodies politic, parties in interest, and all sheriffs, marshals, and other officers, and their respective attorneys, servants, agents, and employees, and all other persons, firms and corporations be, and they hereby are, jointly and severally, enjoined and stayed from commencing or continuing any action at law or suit or proceeding in equity to foreclose any lien or enforce any claim against said limited liability company or their property, or against the Receiver in any court. All such entities are further stayed from executing or issuing or causing the execution or issuance out of any Court of any writ, process, summons, attachment, subpoena, replevin, execution, or other process for the purpose of impounding or taking possession of or interfering with, or enforcing any claim or lien upon any property owned by or in the possession of the said Receiver, and from doing any act or thing whatsoever to interfere with the Receiver in the discharge of his duties in this proceeding with the exclusive jurisdiction of this Court over said properties and said Receiver. This Order shall be in full force and effect as of the date of its journalization with the Clerk of this Court.

(Emphasis sic.) *Page 3

{¶ 4} After concluding that continued operation of the company would not benefit the receivership estate, the receiver recommended to the trial court that Healthcare Choices cease operations and sell its tangible assets in its medical treatment facilities in Columbus and Lancaster, Ohio. After receiving authorization from the trial court, the receiver sold the company's tangible assets for an amount that exceeded the appraised value of the property.

{¶ 5} After the receiver sold the company's tangible assets, the receiver informed the trial court that the company was without assets to operate a business and that continued operation of the business would not provide sufficient cash flow to sustain the business. The receiver therefore recommended abandonment of any further business operations and recommended concentrating on recovering the remaining assets, primarily accounts receivable. The trial court thereafter authorized the receiver to discontinue business operations and to continue the receivership with a view toward winding up the company's affairs and abandoning business operations as of June 28, 2004.

{¶ 6} In April 2005, with court approval, plaintiff filed a supplemental verified complaint against Healthcare Choices and Tiffany Mahlerwein. Claiming that Ms. Mahlerwein misrepresented to plaintiff her purchase price of Healthcare Choices prior to plaintiff's purchase of a half-interest in Healthcare Choices, and claiming that Ms. Mahlerwein failed to provide documentation of the company's purchase price upon plaintiff's request, plaintiff asserted a claim of actual fraud against Ms. Mahlerwein. Plaintiff also asserted a claim that Ms. Mahlerwein withdrew approximately $60,000 from Healthcare Choices in violation of the company's operating agreement, thereby damaging *Page 4 the company and plaintiff. In this supplemental complaint, plaintiff also sought judicial dissolution of Healthcare Choices.

{¶ 7} In October 2005, Ms. Mahlerwein moved to terminate the receivership. Although the receiver acknowledged that pending issues between the parties might exist, the receiver nonetheless agreed that his work was complete and that there was nothing for the receiver or the receivership estate to conclude. On November 9, 2005, the trial court granted Ms. Mahlerwein's motion to terminate the receivership, and the trial court ordered the receiver to file a final accounting within 28 days of journalization of the court's entry. The next day the trial court issued an entry dissolving the receivership.

{¶ 8} On May 8, 2006, the receiver moved the trial court to issue a show cause order against Ms. Mahlerwein and her counsel because Ms. Mahlerwein, without leave of court, brought an action against the receiver in the Fairfield County Court of Common Pleas. According to the receiver, by bringing an action against the receiver in the Fairfield County Court of Common Pleas without leave of court, Ms. Mahlerwein violated an earlier order of the trial court that enjoined Ms. Mahlerwein from suing the receiver.

{¶ 9} By entry filed August 1, 2006, the trial court found Ms. Mahlerwein in contempt of court and sentenced her to a jail term of 30 days. However, the trial court suspended execution of the jail sentence on condition that Ms. Mahlerwein purge herself of contempt by August 10, 2006, in a manner specified by the court. Specifically, in its entry of August 1, 2006, the Franklin County Court of Common Pleas ordered in part:

Having heard the arguments of counsel, the Court hereby determines that Mahlerwein is in contempt of Court, and the Court hereby ORDERS that Mahlerwein be sentenced to a jail term of 30 days, provided however that such sentence is hereby suspended until the date set by the Court for another hearing in this case. A hearing is hereby set for Thursday, August 10, 2006 at 3:00 pm in Courtroom 9C of the Franklin *Page 5 County Court of Common Pleas, and Mahlerwein is hereby ORDERED to appear at this hearing. At that hearing, Mahlerwein shall provide evidence that she has purged herself of her contempt in accordance with this ORDER. Failing to so satisfy the Court, Mahlerwein shall serve the 30 day jail sentence imposed in this ORDER. In the event Mahlerwein does not appear at the hearing, the Court will issue a bench warrant for her arrest.

The Court has advised Mahlerwein that she may purge herself of this contempt Order if she takes the following actions on or before the hearing scheduled for August 10, 2006:

1. She dismisses with prejudice the action she brought against the Receiver in the Fairfield County Court of Common Pleas, Mahlerwein v. Martin, et al., which is pending in the Fairfield Court of Common Pleas as Case No. 2006CV00292[.]

(Emphasis sic.)

{¶ 10} In this entry, the trial court further ordered in part:

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Cite This Page — Counsel Stack

Bluebook (online)
2007 Ohio 4127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakhi-v-healthcare-choices-06ap-806-8-14-2007-ohioctapp-2007.