Laurels of Huber Hts. v. Taylor

2022 Ohio 1425
Ohio Court of Appeals·Decided April 29, 2022·No. 29223·Published

Opinion

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

THE LAURELS OF HUBER HEIGHTS :

:

Plaintiff-Appellant : Appellate Case No. 29223 :

v. : Trial Court Case No. 2020-CV-3935 :

JOHNNY TAYLOR : (Civil Appeal from : Common Pleas Court)

Defendant-Appellee :

:

...........

OPINION

Rendered on the 29th day of April, 2022.

...........

TITUS G. DONNELL, Atty. Reg. No. 0085266 & RYAN L. THOMAS, Atty. Reg. No. 0084828, 503 South Front Street, Suite 250, Columbus, Ohio 43215 Attorneys for Plaintiff-Appellant

MARK A. FISHER, Atty. Reg. No. 0066939, 5613 Brandt Pike, Huber Heights, Ohio 45424 Attorney for Defendant-Appellee

.............

DONOVAN, J.

{¶ 1} The Laurels of Huber Heights (“Laurels”) appeals from a judgment of the Montgomery County Court of Common Pleas, which sustained Johnny Taylor’s motion for summary judgment on Laurels’ complaint for breach of contract and promissory estoppel. We reverse the judgment of the trial court and remand the matter for further proceedings consistent with this opinion.

{¶ 2} Laurels operates a skilled nursing and rehabilitation facility, and Taylor’s wife, Helena Taylor (“Helena”), became a resident of the facility on February 27, 2018. According to Laurels’ complaint, Helena owed a balance of $43,296.35 to the facility, and on December 10, 2018, Taylor executed a promissory note, promising to pay Laurels the total amount due in monthly installments of no less than $1,500 per month. The promissory note was attached to the complaint as Exhibit A. According to Laurels, Taylor failed to make any payments and owed the full balance due. Laurels asserted that it reasonably relied upon Taylor’s promise to pay.

{¶ 3} The document labeled Exhibit A had been executed on December 10, 2018.

It stated that the amount due was $43,296.35 “until November 31st 2018, plus additional $255.00 per day for [every day] until discharge,” and it designated “Helena Taylor/Johnnie [sic] Taylor” as the “Resident/Responsible Party.” It stated that the resident/responsible party agreed to pay the owed amount as follows: first payment of $2,500 on December 19, 2018, and $1,500 per month by the third Wednesday of the month every month thereafter. It further stated:

The facility accepts the above arrangements and will not pursue further collections activity on this account unless the above agreement is breached by the resident/responsible party agreeing to pay the balance due.

If the monthly payments are not received as agreed upon this agreement becomes void and balance in full will be due immediately.

The agreement was signed on December 11, 2018, by Taylor as “Resident/Responsible [sic]” and by a representative of Laurels.

{¶ 4} Helena died on January 13, 2019.

{¶ 5} Laurels filed its complaint against Taylor to collect on Helena’s account on October 14, 2020, and Taylor filed his answer on November 18, 2020.

{¶ 6} Laurels filed a motion for summary judgment on January 18, 2021. Laurels asserted that Taylor had agreed to pay Helena’s balance due in monthly installments, and in exchange it had agreed to take no further action to recover on the debt. Laurels asserted that Taylor had “failed to perform” under the agreement with “no cognizable legal excuse.” Laurels asserted damages for breach of contract in the amount of $49,490.87 and asserted that it continued to be damaged by Taylor’s failure to pay.

{¶ 7} An affidavit of Jessica Collins, the Business Office Manager for Laurels, was attached to the motion for summary judgment. The affidavit stated that Laurels had fully executed “the terms of [Helena’s] stay,” which were to provide Helena “with room and board, as well as goods and services in exchange for monthly payment and other fees, expenses, and costs.” When the Taylors failed to make payments pursuant to their agreement with Laurels and a balance became due and owing, Johnny had executed the promissory note in question (as described above). According to Collins, Laurels “fully executed its obligations arising under the Promissory Note,” but Taylor failed to perform

his contractual obligations, did not make a single payment, and owed $49,490.87 pursuant to an account statement attached to the affidavit, which was dated November 30, 2020.

{¶ 8} In response to Laurel’s motion for summary judgment, Taylor asserted that the case should proceed beyond summary judgment because there were genuine issues of material fact as to the amount owed and whether Taylor had contracted with Laurels “to be the responsible party for the payment.” Taylor attached his own affidavit, which stated in its entirety that “the facts in the memorandum are true.”

{¶ 9} On March 29, 2021, the trial court overruled Laurels’ motion for summary judgment, finding that there were issues of material fact that made summary judgment inappropriate. The court set the matter for a telephone status conference on April 23, 2021, and subsequently scheduled a pre-trial scheduling conference.

{¶ 10} On June 2, 2021, Taylor filed a motion for leave of court to file a motion for summary judgment, to which his motion for summary judgment was attached. On June 4, 2021, the trial court granted the motion for leave, and Taylor’s motion for summary judgment was filed. Taylor’s motion asserted that the “one page document signed by [him] does not state that it is a promise to pay or obligate [him] to pay for services provided to his wife,” that the document was executed after the services were provided to his wife, and that all of the services were provided only to his wife. Taylor also asserted that “the document he signed was explained to him as a payment arrangement on behalf of his wife, in lieu of her social security income being taken, for her care provided by [Laurels].”

{¶ 11} Taylor asserted that Laurels could not “employ a breach of contract

argument to impose personal liability” upon him. He cited Village at the Greene v. Smith, 2d Dist. Montgomery No. 28762, 2020-Ohio-4088, in support of his argument. Taylor also attached another affidavit, in which he stated: “On December 10, 2018, I did sign a payment agreement on behalf of my wife for $1,500.00 a month which I was told was for her social security income that she was receiving at the time.” Taylor’s affidavit was not notarized.

{¶ 12} Laurels responded to Taylor’s motion for summary judgment on July 2, 2021. According to Laurels, Taylor’s “assumption” of Helena’s debt “was in no way predicated on, or associated with, [Helena’s] admission or continued care at [Laurels].” Rather, it was “based upon separate and distinct consideration,” i.e., Laurels’ foregoing collection on Helena’s account. Laurels also argued that Smith, the case cited by Taylor, was distinguishable, because the agreements signed by the patient’s representative in that case clearly violated of both 42 U.S.C. 1396r(c)(5)(A)(ii) and Ohio Adm.Code 5160- 3-02(C)(4) by conditioning the patient’s admission or continued care on the representative’s assumption of the patient’s debt, which was not the case here. Laurels argued that, by the promissory note’s very terms, it was executed to prevent Laurels from taking legal action to collect upon Helena’s outstanding balance, which “constitute[d] separate and distinct consideration.” Helena’s continued care was not conditioned on the execution of the note, and Taylor provided no evidence to the contrary.

{¶ 13} In granting Taylor’s motion for summary judgment, the trial court stated:

* * * [Laurels] appears to be arguing that Johnnie Taylor was not prohibited from voluntarily making payments and its “installment plan” was

merely memorializing that decision. However, [Laurels] asserts that the document is a promissory note, Affidavit, Jessica Collins, Business Manager. It has filed this action against Johnnie Taylor seeking a court judgment that he is obligated to pay the bills for his wife’s stay. [Laurels’] action can only be construed as an attempt to impose personal liability on defendant, Johnnie Taylor, husband of its resident.

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