Larsen Medina, L.L.C. v. Echelon Senior Living Group, L.L.C.

2025 Ohio 2282
CourtOhio Court of Appeals
DecidedJune 30, 2025
Docket31305
StatusPublished

This text of 2025 Ohio 2282 (Larsen Medina, L.L.C. v. Echelon Senior Living Group, L.L.C.) 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
Larsen Medina, L.L.C. v. Echelon Senior Living Group, L.L.C., 2025 Ohio 2282 (Ohio Ct. App. 2025).

Opinion

[Cite as Larsen Medina, L.L.C. v. Echelon Senior Living Group, L.L.C., 2025-Ohio-2282.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

LARSEN MEDINA, LLC C.A. No. 31305

Appellant

v. APPEAL FROM JUDGMENT ENTERED IN THE ECHELON SENIOR LIVING GROUP, COURT OF COMMON PLEAS LLC, et al. COUNTY OF SUMMIT, OHIO CASE No. CV-2023-06-1921 Appellees

DECISION AND JOURNAL ENTRY

Dated: June 30, 2025

HENSAL, Judge.

{¶1} Larsen Medina LLC (“Larsen Medina”) appeals an order of the Summit County

Court of Common Pleas that denied its motion for sanctions. This Court affirms.

I.

{¶2} Larsen Medina petitioned the trial court under Revised Code Section 2711.03 to

enforce an arbitration clause contained in a 2018 amended operating agreement between the

members of Echelon Senior Living Group LLC: Mark S. Hemminger; Jeff Risner; Seibert

Enterprises, Ltd.; R. Scott Bunce; and Larsen Medina. The petition alleged that disputes had arisen

between the members related to the validity of a purported second amended operating agreement,

the expulsion of Larsen Medina as a member, and the grounds for that expulsion. Echelon, Mr.

Hemminger, Mr. Risner, Mr. Bunce, and Seibert Enterprises (“the Echelon Defendants”) opposed

the petition, arguing that it was barred by the doctrine of laches and that Larsen Medina’s claims

were meritless and constituted frivolous conduct. The Echelon Defendants maintained that a 2

second amended operating agreement was adopted by Echelon’s members in 2019 but that Larsen

Medina did not participate in the vote to approve that agreement. According to the Echelon

Defendants, the 2019 operating agreement was approved by eighty percent of the members and

became effective on July 30, 2019. It contained new language that “provided for a dilution of

membership interest as a remedy if a member did not make a required capital contribution.”

Consequently, the Echelon Defendants argued that Larsen Medina could no longer assert

membership rights, having failed to make a capital contribution required by the 2019 operating

agreement. The trial court granted the petition and compelled arbitration, concluding that “the

arbitration provision in the [2018 agreement] is valid and enforceable and the subject matter of

[Larsen Medina’s] dispute is arbitrable.”

{¶3} Larsen Medina moved for sanctions against the Echelon Defendants and their

counsel under Section 2323.51 and Civil Rule 11. In doing so, Larsen Medina argued that the

Echelon Defendants’ brief in opposition to arbitration addressed the substance of the matter instead

of its arbitrability and, as such, that they could not be appropriately raised in opposition to

arbitration. In response, the Echelon Defendants argued that their opposition to arbitration was

grounded in “a good faith belief that the facts and applicable law [barred] Larsen Medina’s claim

for arbitration.” The trial court concluded that the Echelon Defendants’ conduct did not violate

Section 2323.51 or Rule 11 and denied the motion. Larsen Medina appealed, assigning two errors

for this Court’s review.

II.

ASSIGNMENT OF ERROR I

AS A MATTER OF LAW THE TRIAL COURT ERRED IN DENYING LARSEN MEDINA'S MOTION FOR FRIVOLOUS CONDUCT AND CIV. R. 11 SANCTIONS AGAINST DEFENDANTS AND THEIR COUNSEL UNDER R.C. 2323.51 BECAUSE DEFENDANTS' POSITION IN OPPOSITION TO 3

ARBITRATION WAS NOT WARRANTED UNDER EXISTING LAW AND WAS NOT SUPPORTED BY A GOOD FAITH ARGUMENT FOR EXTENSION, MODIFICATION, OR REVERSAL OF EXISTING LAW.

ASSIGNMENT OF ERROR II

THE TRIAL COURT’S FAILURE TO IMPOSE CIV.R. 11 SANCTIONS AGAINST DEFENDANTS’ COUNSEL FOR HIS WILLFUL FILING OF BASELESS ARGUMENTS OPPOSING ARBITRATION CONSTITUTES REVERSIBLE ERROR.

{¶4} Larsen Medina’s assignments of error argue the trial court erred by concluding that

the Echelon Defendants’ conduct, consisting of their “refusal to arbitrate, [their] filing of answers

denying their obligation to arbitrate, [their] opposition to the Motion to Compel, and [their]

countermotion for frivolous conduct against Larsen Medina[,]” was neither frivolous nor

sanctionable under Rule 11. This Court does not agree.

{¶5} As an initial matter, this Court notes that an appellant must separately argue each

assignment of error with supporting authority and citations to the record. App.R. 16(A)(7); Loc.R.

16(A)(7). When an appellant fails to do so, this Court may disregard the assignments of error.

Huber v. Inpatient Med. Servs., Inc., 2018-Ohio-4686, ¶ 5 (9th Dist.). Although Larsen Medina

has failed to separately argue its two assignments of error, this Court will exercise its discretion to

address Larsen Medina’s argument. See State v. Ross, 2024-Ohio-2251, ¶ 5 (9th Dist.).

{¶6} Section 2323.51 and Rule 11 each address frivolous conduct, but they “differ in

that the statute employs an objective test for frivolous conduct while the rule employs a subjective

one.” Reich v. Manifold Cloud Servs., Ltd., 2025-Ohio-1049, ¶ 10 (9th Dist.), quoting Dietrich v.

Core, 2023-Ohio-1463, ¶ 10 (9th Dist.). Rule 11 provides that an attorney’s signature on a

“pleading, motion, or other document” filed on behalf of a client constitutes a certification that the

attorney “has read the document; that to the best of the attorney’s . . . knowledge, information, and

belief there is good ground to support it; and that it is not interposed for delay.” (Emphasis added.) 4

Because this test of frivolous conduct is subjective, a court imposing sanctions must first consider

whether the attorney who signed the document “(1) read it; (2) harbored good grounds to support

it to the best of his or her knowledge, information, and belief; and (3) did not file it for the purpose

of delay.” Clark v. Corwin, 2015-Ohio-4469, ¶ 11 (9th Dist.), quoting Lable & Co. v. Flowers,

104 Ohio App.3d 227, 235 (9th Dist. 1995). A decision regarding sanctions under Rule 11 is

generally reviewed for an abuse of discretion, but questions that are purely legal – such as whether

there is good ground to support a filing – are reviewed de novo. Callahan v. Akron Gen. Med.

Ctr., 2009-Ohio-5148, ¶ 25 (9th Dist.).

{¶7} Under the statute, “[f]rivolous conduct” includes conduct by a party to a civil action

that “is not warranted under existing law, cannot be supported by a good faith argument for an

extension, modification, or reversal of existing law, or cannot be supported by a good faith

argument for the establishment of new law . . . .” R.C. 2323.51(A)(2)(a)(ii). This is an objective

standard, and the test is whether no reasonable attorney would have asserted the position in light

of existing law. See Kozar v. Bio-Medical Applications of Ohio, Inc., 2004-Ohio-4963, ¶ 16 (9th

Dist.). This Court will generally affirm a trial court’s factual determination of whether frivolous

conduct has occurred if that determination is supported by competent, credible evidence. In re

Guardianship of Bakhtiar, 2018-Ohio-1764, ¶ 19 (9th Dist.). When the question is whether a

reasonable attorney would have asserted a legal position under Section “2323.51(A)(2)(a)(ii),”

however, “[w]e review a trial court’s finding . . . de novo, as purely a matter of law, ‘“peculiarly

within the competence of an appellate court.”’” Jefferson v. Creveling, 2009-Ohio-1214, ¶ 16 (9th

Dist.), quoting Kozar at ¶ 16. See also Riston v. Butler, 2002-Ohio-2308, ¶ 22 (1st Dist.) (“Because

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