Leh Properties, Inc. v. Pheasant Run Assn., 07ca009275 (9-8-2008)

2008 Ohio 4500
Ohio Court of Appeals·Decided September 8, 2008·No. No. 07CA009275.·Unpublished·Cited by 9 cases

Opinion

DECISION AND JOURNAL ENTRY
{¶ 1} Defendant-Appellant, Pheasant Run Association, Inc. ("Pheasant Run"), appeals from the judgment of the Lorain County Court of Common Pleas. This Court dismisses the appeal for lack of jurisdiction.

I
{¶ 2} Pheasant Run is a non-profit corporation composed of several hundred homeowner-shareholders living in the Pheasant Run Village community of LaGrange Township. Five individuals composed Pheasant Run's board of directors during the period relevant to this appeal, including Ronald Mertz, Leonard Schaffer, and Lori Quinones. LEH Properties, Inc. ("LEH") is a separate corporation. The principal of LEH, Lee Holtztrager, also ran another company, Sawbuck, Inc. ("Sawbuck"), which built homes.

{¶ 3} LEH owned land adjacent to Pheasant Run, and Holtztrager sought to form a contract with Pheasant Run, whereby Sawbuck would build approximately 200 new houses on *Page 2 the land. The parties entered into extended negotiations, but Pheasant Run eventually attempted to extricate itself from the deal. On February 23, 2004, LEH, Sawbuck, and Holztrager (collectively "Plaintiffs") brought suit against Pheasant Run and Shaffer for breach of contract and fraud.

{¶ 4} The parties prepared for a jury trial on August 7, 2006, but indicated that they had reached an agreement before trial commenced. The parties and their attorneys went on the record before the trial court and read their agreement into the record. Plaintiffs' attorney, Brent English, then indicated that he would draft the written agreement and forward it to Pheasant Run for review. It is a matter of contention on appeal as to when Attorney English actually forwarded the written agreement to Pheasant Run.

{¶ 5} On November 27, 2006, Plaintiffs filed a show cause motion, which targeted Pheasant Run's failure to carry out the settlement agreement and asked the court to enforce the agreement and to award Plaintiffs their attorney fees. On December 11, 2006, Pheasant Run filed a response, indicating that it had waited to respond to the "proposed settlement" for various reasons. The trial court scheduled a status hearing on the matter, but never entered a formal ruling on the record as to Plaintiffs' motion.

{¶ 6} On May 23, 2007, Plaintiffs filed a renewed motion to enforce settlement. That motion contained a copy of a "mutual release and settlement agreement" that set forth the entire agreement between the parties. The following individuals signed the mutual release and settlement agreement: Lee Holtztrager, individually and in his capacity as president of LEH and president of Sawbuck; Leonard Shaffer, as an individual; Ronald E. Mertz, as president of Pheasant Run's board of directors; and Lori Quinones, as a member of Pheasant Run's board. The latter three individuals all signed the document on January 2, 2007. *Page 3

{¶ 7} On August 6, 2007, Pheasant Run filed its response to Plaintiffs' renewed motion. In its response, Pheasant Run argued that the trial court was obligated to hold an evidentiary hearing to determine whether or not the parties even had a valid settlement agreement. Pheasant Run argued that the individuals who were present at the August 7, 2006 hearing and those who had signed the agreement on Pheasant Run's behalf all lacked authority to do so. Pheasant Run supplemented its response on August 8, 2007, arguing that its by-laws also forbade any entry into a settlement agreement without the full board's authorization. On October 18, 2007, the trial court denied Pheasant Run's request for an evidentiary hearing, granted Plaintiffs' motion to enforce the settlement agreement, and awarded Plaintiffs the attorney fees they incurred as a result of enforcing the settlement.

{¶ 8} Pheasant Run filed its notice of appeal on October 23, 2007. Pursuant to an order of this Court, Pheasant Run subsequently filed a nunc pro tunc journal entry from the trial court, indicating that there was no just reason for delay in seeking the appeal although it had yet to determine the amount of attorney fees to be awarded. Pheasant Run's appeal raises one assignment of error for our review.

II
ASSIGNMENT OF ERROR
"THE TRIAL COURT ERRED TO THE SUBSTANTIAL PREJUDICE OF APPELLANT WHEN IT GRANTED APPELLEES['] MOTION TO ENFORCE SETTLEMENT WITHOUT FIRST CONDUCTING AN EVIDENTIARY HEARING."

{¶ 9} In its first assignment of error, Pheasant Run argues that the trial court erred in failing to conduct an evidentiary hearing to determine whether the parties actually had a settlement agreement. Specifically, Pheasant Run argues that its attorney and board members lacked authority to settle on Pheasant Run's behalf and that the trial court was bound to hold a *Page 4 hearing under Rulli v. Fan Co. (1997), 79 Ohio St.3d 374. Pheasant Run also argues that this Court must reverse the trial court's award of attorney fees to Plaintiffs for their having to enforce the settlement agreement.

{¶ 10} The Ohio Constitution limits an appellate court's jurisdiction to the review of final judgments of lower courts. Section 3(B)(2), Article IV. For a judgment to be final and appealable, the requirements of R.C. 2505.02 and Civ. R. 54(B), if applicable, must be satisfied.Chef Italiano Corp. v. Kent State Univ. (1989), 44 Ohio St.3d 86, 88. Pursuant to R.C. 2505.02(B)(1), a final order is one that "affects a substantial right in an action that in effect determines the action and prevents a judgment[.]"

{¶ 11} In Robinson v. Robinson, 9th Dist. No. 21440, 2003-Ohio-5049, this Court addressed the finality of orders relating to attorney fee awards as follows:

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Leh Properties, Inc. v. Pheasant Run Assn., 07ca009275 (9-8-2008), 2008 Ohio 4500 (Ohio Ct. App. 2008).

2008 Ohio 4500 (Leh Properties, Inc. v. Pheasant Run Assn., 07ca009275 (9-8-2008)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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