Landskroner v. Landskroner

797 N.E.2d 1002, 154 Ohio App. 3d 471, 2003 Ohio 4945
CourtOhio Court of Appeals
DecidedSeptember 18, 2003
DocketNo. 82375.
StatusPublished
Cited by59 cases

This text of 797 N.E.2d 1002 (Landskroner v. Landskroner) 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
Landskroner v. Landskroner, 797 N.E.2d 1002, 154 Ohio App. 3d 471, 2003 Ohio 4945 (Ohio Ct. App. 2003).

Opinion

Timothy E. McMonagle, Judge.

{¶ 1} Plaintiff-appellant, Lawrence Landskroner, appeals from the order of the Cuyahoga County Common Pleas Court that granted the motion to dismiss filed by defendants-appellees, Jack Landskroner and The Landskroner Law Firm, Ltd., and dismissed appellant’s complaint. For the reasons that follow, we affirm in part, reverse in part, and remand.

{¶ 2} Appellant is the father of defendant-appellee, Jack Landskroner (“Jack”). Both are licensed attorneys and, at one time, practiced together in the law firm of defendant-appellee, The Landskroner Law Firm, Ltd. (“LLF”). In June 1952, according to appellant’s complaint, appellant and attorney Robert M. Phillips (“Phillips”) formed the predecessor to LLF, a legal professional association known as Landskroner & Phillips. Jack joined the law firm in 1989, first as a law clerk and then as an attorney in 1992. Sometime in 1996, Phillips became disassociated with the predecessor law firm, and the organizational form changed from a legal professional association to that of a limited liability company known as LLF, with appellant as the sole owner of all 100 membership units.

{¶ 3} Appellant alleges that, sometime in 1997, he agreed to transfer 99 of the membership units to Jack. According to appellant’s complaint, the parties also agreed on a compensation schedule that varied in percentage of retained profit based on the source of the income. No written document was appended to appellant’s complaint memorializing the terms of this agreement in the detail averred in appellant’s complaint, and it appears from the record that no such document was executed by the parties. A document dated December 24, 1997, and captioned “Agreement” was, however, attached to appellant’s complaint. This document was hand-written by Jack, appears to be addressed to appellant, and outlined what Jack and appellant “discussed about LLF.” Succinctly, the document states that, inter alia, Jack “is 100% shareholder” of LLF and that appellant “[i]s entitled to 2/3 profits” while Jack “[i]s entitled to 1/3 profits.” Sometime thereafter appellant transferred the remaining membership unit to Jack, and Jack became the sole shareholder of LLF.

*479 {¶ 4} In March 2002, Jack advised appellant that he was terminating their business relationship and, in April 2002, vacated the office space they shared, taking with him all of the employees and business equipment of LLF. In May 2002, appellant instituted a 15-count complaint against Jack and LLF (collectively referred to as “LLF” where appropriate for ease of discussion), seeking declaratory, injunctive, and equitable relief, as well as damages for breach of contract, conversion, and breach of fiduciary duties, among others. In particular, appellant alleges that LLF failed to compensate him according to the parties’ agreement and, despite repeated requests for an accounting, he received none. LLF moved to dismiss the complaint under Civ.R. 12(B)(6) for failure to state a claim upon which relief could be granted, which the trial court granted without opinion.

{¶ 5} Appellant is now before this court and, in his sole assignment of error, contends that the trial court erred when it granted the motion to dismiss.

{¶ 6} When reviewing a judgment granting a Civ.R. 12(B)(6) motion to dismiss for failure to state a claim upon which relief can be granted, an appellate court must independently review the complaint to determine whether dismissal is appropriate. McGlone v. Grimshaw (1993), 86 Ohio App.3d 279, 285, 620 N.E.2d 935. The reviewing court need not defer to the trial court’s ruling on such a motion. Id. Dismissal is appropriate only where it appears beyond a doubt that the complainant can prove no set of facts sufficient to support the asserted claim that would entitle the complainant to relief. Cleveland Elec. Illum. Co. v. Pub. Util. Comm. (1996), 76 Ohio St.3d 521, 524, 668 N.E.2d 889, citing O’Brien v. Univ. Community Tenants Union, Inc. (1975), 42 Ohio St.2d 242, 245, 71 O.O.2d 223, 327 N.E.2d 753; see, also, York v. Ohio State Hwy. Patrol (1991), 60 Ohio St.3d 143, 144, 573 N.E.2d 1063. In construing the complaint in response to a Civ.R. 12(B)(6) motion, a court must presume all factual allegations contained in the complaint to be true and make all reasonable inferences in favor of the nonmoving party. Mitchell v. Lawson Milk Co. (1988), 40 Ohio St.3d 190, 192, 532 N.E.2d 753. With this standard in mind, we address each of appellant’s claims for relief and the corresponding arguments for and against dismissal. 1

I. Declaratory Relief

{¶ 7} Appellant sought a declaration that he is the sole owner of all the membership units because the transfer of the membership units from appellant to Jack was not in compliance with R.C. Chapter 1705. LLF argued in its motion to *480 dismiss that there was no controversy entitling appellant to declaratory relief because it is clear from appellant’s complaint that Jack is the sole owner of all the membership units.

{¶ 8} In order to be entitled to declaratory relief, there must exist a real controversy between adverse parties that is both justiciable in character and requires speedy relief in order to preserve rights that may be otherwise impaired or lost. Herrick v. Kosydar (1975), 44 Ohio St.2d 128, 130, 73 O.O.2d 442, 339 N.E.2d 626; see, also, Haig v. Ohio State Bd. of Edn. (1992), 62 Ohio St.3d 507, 511, 584 N.E.2d 704.

{¶ 9} Although appellant contends that there exists a controversy as to who owns the membership units of LLF, appellant avers in his complaint that he transferred all of the membership units to Jack. Appellant argues that the transfer of units to Jack was contingent on his receiving “fair distributions” from LLF. Appellant’s complaint makes no such allegation nor is such a contingency contained in the handwritten agreement appended to appellant’s complaint. Accepting the allegations contained in the complaint as true as we must in reviewing a decision to grant or deny a motion to dismiss under Civ.R. 12(B)(6), we see no justiciable controversy justifying declaratory relief. The trial court, therefore, did not err in granting LLF’s motion in this regard.

II. Judicial Dissolution

{¶ 10} Appellant sought a judicial dissolution of LLF as authorized by R.C. 1705.47. This statute provides that a court of common pleas “may decree” the dissolution of a limited liability company “if it is not reasonably practicable to carry on the business of the company in conformity with its articles of organization and operating agreement.” Judicial dissolution is available, however, upon the application of “any member” of the company. As stated previously, appellant’s complaint makes clear that appellant has relinquished his membership units in the company and is, therefore, no longer a member. Consequently, it was not error for the trial court to grant LLF’s motion as it pertained to appellant’s claim for judicial dissolution.

III.

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Cite This Page — Counsel Stack

Bluebook (online)
797 N.E.2d 1002, 154 Ohio App. 3d 471, 2003 Ohio 4945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landskroner-v-landskroner-ohioctapp-2003.