Lima Mem. Hosp. v. Watamura

2022 Ohio 417
CourtOhio Court of Appeals
DecidedFebruary 14, 2022
Docket1-21-24
StatusPublished

This text of 2022 Ohio 417 (Lima Mem. Hosp. v. Watamura) 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
Lima Mem. Hosp. v. Watamura, 2022 Ohio 417 (Ohio Ct. App. 2022).

Opinion

[Cite as Lima Mem. Hosp. v. Watamura, 2022-Ohio-417.]

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT ALLEN COUNTY

LIMA MEMORIAL HOSPITAL,

PLAINTIFF-APPELLEE, CASE NO. 1-21-24

v.

SCOTT WATAMURA, M.D., OPINION

DEFENDANT-APPELLANT.

Appeal from Allen County Common Pleas Court Trial Court No. CV-2019-0423

Judgment Affirmed

Date of Decision: February 14, 2022

APPEARANCES:

Edward L. Littlejohn, Jr. for Appellant

Gerardo R. Rollison for Appellee Case No. 1-21-24

ZIMMERMAN, P.J.

{¶1} Defendant-appellant, Dr. Scott Watamura (“Watamura”), appeals the

June 15, 2021 judgment of the Allen County Court of Common Pleas granting the

plaintiff-appellee’s, Lima Memorial Hospital (“LMH”), cognovit judgment against

him. For the reasons that follow, we affirm.

{¶2} Watamura, an anesthesiologist, was recruited by LMH, a nonprofit

corporation, and Lima Memorial Professional Corporation (“LMPC”) to practice

medicine at its hospital in Lima, Allen County, Ohio. Watamura commenced his

employment with LMH on July 16, 2018. However, prior to and in anticipation of

commencing his employment, Watamura entered into an Employment Agreement

(“EA”) with LMPC and a Physician Recruitment Agreement (“PRA”) with the

LMH and LMPC on March 26, 2018. (Doc. No. 53). As part of the PRA, Watamura

received $125,000 in student loan assistance together with a $40,000 sign-on bonus

in addition to his annual salary. However, Watamura’s student loan assistance and

bonus was subject to repayment should his employment be terminated within five

years of his agreement with LMH. (Id.). Further, Watamura executed a Cognovit

Promissory Note (“CPN”) with LMH to secure his repayment should his

employment be terminated. (Id.).

{¶3} On February 11, 2019, LMH informed Watamura (pursuant to the

EA) that his employment was being terminated effective June 11, 2019. (Id.). (See

-2- Case No. 1-21-24

also Doc. No. 56, Def. Ex. 2). Watamura was further provided the repayment

amount he owed to LMH pursuant to an amortization schedule with payments

commencing July 2019. (See Doc. No. 53, Ex. D). Watamura failed to make any

payments to LMH under the terms of the PRA. (Id.).

{¶4} On October 16, 2019, LMH filed a complaint in the trial court alleging

that Watamura defaulted under the terms of the PRA triggering the cognovit-note

action. (Doc. No. 1). On that same day, an attorney, Mark A. Ozimek, (appearing

on Watamura’s behalf pursuant to a warrant of attorney) filed an answer confessing

judgment to the cognovit complaint. (Doc. No. 2). The trial court granted judgment

against Watamura based upon the confession of judgment by warrant of attorney.

(Doc. No. 3). Notice of the judgment was forwarded to Watamura. (Id.). However,

service of the cognovit judgment was never perfected upon Watamura. (Doc. Nos.

4, 6); (Notice of Failure of Service dated Oct. 30, 2019). Nevertheless, LMH

initiated efforts to collect the judgment from Watamura, and eventually garnished

Watamura’s wages through his employment at Northstar Anesthesia of Ohio, LLC.

(Doc. Nos. 18, 19, 20, 32).

{¶5} Ultimately, on December 3, 2020, Watamura, filed a Civ.R. 60(B)

motion in the trial court requesting that the cognovit judgment against him be

vacated. (Doc. Nos. 30, 31). In that motion, Watamura argued that the CPN was

facially insufficient to support a confession of judgment because the total amount

-3- Case No. 1-21-24

due to LMH could not be calculated without reference to extrinsic documents. (Doc.

No. 31). Moreover, he argued that the trial court’s cognovit judgment was void ab

initio. (Id.).

{¶6} On March 22, 2021, without a hearing, the trial court granted

Watamura’s Civ.R. 60(B) motion determining that such was made within a

reasonable time and on the basis that the PRA was not attached to the CPN, which

invalidated the cognovit judgment because the material terms in the CPN could not

be ascertained without reference to the PRA.1 (Doc. No. 45).

{¶7} After the trial court granted the 60(B) motion, LMH requested leave

of court to file an amended complaint under Civ.R. 15(A) against Watamura. (Doc.

No. 47). On May 7, 2021, Watamura filed a memorandum in opposition and a

motion for judgment on the pleadings under Civ.R. 12(C), which LMH opposed.

(Doc. Nos. 48, 49). However, on May 20, 2021, the trial court granted LMH’s

motion for leave to file an amended complaint and denied Watamura’s motion for

judgment on the pleadings on the basis that the pleadings were not closed because

an amended complaint was forthcoming. (Doc. No. 52).

{¶8} On June 11, 2021, LMH filed its amended complaint in the cognovit-

note action against Watamura. (Doc. No. 53). On that same day, Attorney Robert

C. Tucker, through a warrant of attorney, (appearing on Watamura’s behalf)

1 The trial court detailed the failure of service of the cognovit judgment entry its judgment entry addressing Civ.R. 60(B). (Doc. No. 45).

-4- Case No. 1-21-24

confessed judgment in the cognovit answer to LMH’s amended complaint. (Doc.

No. 54).

{¶9} On June 15, 2021, the trial court granted judgment against Watamura

“in the amount of $195,749.56, together with interest on the unpaid principal

balance of $195,749.56 at 6.00%. (Doc. No. 55). Notice of that judgment was sent

to the attorney who confessed judgment (Tucker) and to Watamura’s counsel who

filed the 60(B) request. (Certified Docket and Journal Entries filed July 8, 2021).

See R.C. 2323.13(C). The trial court’s judgment entry contained a Civ.R. 54(B)

determination “that no just reason for delay”. (Doc. No. 55).

{¶10} On June 28, 2021, Watamura filed the instant appeal and raises three

assignments of error for our review, which we will address separately. (Doc. No.

58).

Assignment of Error No. I

The Trial Court Erred By Allowing Appellee To File A First Amended Complaint Containing A Count For “Breach Of Cognovit Promissory Note.”

{¶11} In his first assignment of error, Watamura argues that the trial court

erred by permitting LMH to file an amended complaint that included a claim for

“Breach of Cognovit Promissory Note”.

-5- Case No. 1-21-24

Standard of Review

{¶12} A trial court employs an abuse-of-discretion standard in determining

whether to grant a motion for leave to amend a pleading. Hoover v. Sumlin, 12 Ohio

St.3d 1, 4 (1984), modified on other grounds, Jim’s Steak House, Inc. v. City of

Cleveland, 81 Ohio St.3d 18, *20, 1998-Ohio-440. The term ‘abuse of discretion’

“implies that the court’s attitude is unreasonable, arbitrary, or unconscionable.”

Blakemore v. Blakemore, 5 Ohio St.3d 217, 219 (1983).

Analysis

{¶13} In his first assignment of error Watamura raises two arguments. First,

he argues that LMH engaged in “undue delay” as to the filing of the motion for leave

to amend its complaint. Second, Watamura asserts that he has been unduly

prejudiced by the trial court’s granting leave to amend the complaint because there

is the possibility that he may have to expend additional resources relitigating the

issues presently before the trial court.

Undue Delay

{¶14} Significantly, Watamura obtained relief from judgment under Civ.R.

60(B) on March 22, 2021, followed by the LMH’s request for leave to file an

amended complaint on April 26, 2021.

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