Lofti-Fard v. First Fed. of Lakewood, Unpublished Decision (7-20-2006)

2006 Ohio 3727
CourtOhio Court of Appeals
DecidedJuly 20, 2006
DocketNo. 87207.
StatusUnpublished
Cited by2 cases

This text of 2006 Ohio 3727 (Lofti-Fard v. First Fed. of Lakewood, Unpublished Decision (7-20-2006)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Lofti-Fard v. First Fed. of Lakewood, Unpublished Decision (7-20-2006), 2006 Ohio 3727 (Ohio Ct. App. 2006).

Opinion

JOURNAL ENTRY AND OPINION
{¶ 1} Plaintiffs-Appellants, Ali and Pardis Lotfi-Fard ("Appellants") appeal from various decisions of the trial court. For the reasons set forth below, we affirm.

{¶ 2} On October 29, 2003, Appellants filed a complaint against Defendant-Appellee, First Federal of Lakewood ("Appellee") asserting claims of breach of contract, unjust enrichment and fraud and bad faith dealing. The alleged claims arose out of a loan agreement between Appellants and Appellee.

{¶ 3} After discovery, Appellee filed a motion for summary judgment on September 1, 2004. Soon thereafter, on September 29, 2004, Appellants filed a motion for class certification, which Appellee opposed.

{¶ 4} On October 19, 2004, the trial court conducted a final pretrial hearing, at which time the court denied Appellee's motion for summary judgment as well as Appellants' motion for class certification. The court further referred the matter to arbitration which was held on April 19, 2005. Appellants appealed the arbitration award and the case was returned to the trial court.

{¶ 5} The trial court scheduled the case for trial for September 26, 2005. Prior to trial, Appellee filed a number of motions in limine: one motion sought to disqualify Appellants' expert witness; one sought to preclude Appellants from offering any testimony and/or evidence regarding the lawsuit between Dr. Hariri and Appellants to establish damages; one sought to preclude the testimony of James Elwell, Esq.; and one sought to disqualify Appellants' accountant from testifying as to Appellants' interest payments on the undisbursed loan.

{¶ 6} On September 26, 2005, the morning of trial, the trial judge referred the case to the administrative judge for a trial by a visiting judge. That afternoon, the visiting judge impaneled a jury, granted Appellee's motion in limine to preclude Appellants from offering any testimony or evidence regarding the lawsuit between Dr. Hariri and Appellants, and reserved ruling on the remaining motions in limine pending voir dire of the witnesses.

{¶ 7} After hearing the testimony of Ali Lofti-Fard, the visiting judge conducted a voir dire of Appellants' expert, Rogelio Navarro ("Navarro"), in order to ascertain his qualifications and ultimately rule upon Appellee's motion in limine to exclude his testimony. Based upon the extensive testimony provided by Navarro, the visiting judge found Navarro lacked sufficient qualifications to testify as to banking industry standards in the United States. Therefore, the visiting judge disqualified Navarro as an expert witness and granted Appellee's motion in limine.

{¶ 8} As previously stated, Appellants offered the testimony of Ali Lotfi-Fard. Appellants also proffered the testimony of the following witnesses: James Elwell, Esq., Roy Schultz, Ali Mohammadpour, Jacqueline McLucas, David Shaw, Michael Berichon, and Paris Lotfi-Fard. A brief synopsis of the testimony follows with a detailed account of the testimony being discussed within the assigned errors.

{¶ 9} On or about June 7, 1999, Appellants signed and executed a commercial loan application with Appellee ("Loan Application"). In the Loan Application, Appellants sought financing in the amount of $207,900 in order to pay the remaining balance of a land contract, as well as to renovate a building located on Detroit Avenue in Cleveland, Ohio that contained several commercial storefronts and apartment suites.

{¶ 10} In the Loan Application, Appellants agreed to the following:

{¶ 11} "1) Withholding of $30,000 of Loan Proceeds until FFL receives verification of repairs to property; 2) Withholding of $1,200 of Loan Proceeds until FFL receives verification of boiler repairs being completed 3) $75.00 Fee per Inspection; 4) Mortgage placed on subject property at 9406-9424 Detroit Ave., Cleveland, OH; 5) Cross-collateralize principal's residence located at 2243 Georgia Ave., Westlake, OH; 6) Signatures(Guarantees)of Ali-Lofti-Fard Pardis Lofti-Fard; 7) Hold $15,000 for repairs of 9 suites ($1,700 per suite)."

{¶ 12} Appellee approved the Loan Application on July 2, 1999. Consequently, on July 20, 1999, Appellants executed an Adjustable Rate Mortgage Note ("Mortgage Note") and Open-End Mortgage ("Mortgage") in favor of Appellee.

{¶ 13} Roy Schutz testified that, per the terms of the Loan Application, he was to inspect the Detroit Avenue property and report to Appellee the status of the repairs. Roy Schultz explained that if the repairs were complete, Appellee then would release the withheld funds accordingly. If the repairs were not complete, Appellee would retain the funds until verification of the repairs. Michael Berichon testified that the withheld loan proceeds were placed in a separate loan-in-process escrow account.

{¶ 14} Schultz testified that he was able to view a number of areas of the property and that he verified that some repairs were completed in these areas. Consequently, Appellee released $13,450.00 to Appellants in July, 2000. Appellee attempted to release another $8,875.00 in June of 2003, but Appellants denied the funds. Schultz further testified that he was unable to verify the completion of repairs to other areas of the property until July of 2004. Therefore, it was not until that time that Appellee released the balance of the withheld loan proceeds to Appellants.

{¶ 15} After the summation of Appellants' case, Appellee moved for directed verdict on all claims asserted in Appellants' complaint. The trial court granted Appellee's motions as to all claims.

{¶ 16} Appellants now appeal and assert eight assignments of error for our review. Appellee asserts one cross-assignment of error for review. We will address Appellants' assignments of error first.

{¶ 17} Appellants' first assignment of error states:

{¶ 18} "The trial court erred as a matter of law and abused its discretion in summarily denying Plaintiffs-Appellants' Motion for Class Certification without articulating its rationale as set forth in Civ.R. 23(B)."

{¶ 19} In this assignment of error, Appellants maintain that the trial court erred in denying their motion for class certification. For the following reasons, we find that Appellants have waived their rights to appeal on this issue.

{¶ 20} Final orders are defined in R.C. 2505.02 which provides in relevant part as follows:

{¶ 21} "(B) An order is a final order that may be reviewed, affirmed, modified, or reversed, with or without retrial, when it is one of the following:

{¶ 22} "* * *

{¶ 23} "(5) An order that determines that an action may or may not be maintained as a class action;"

{¶ 24} Accordingly, pursuant to R.C. 2505.02(B)(5), an order of a trial court denying a party class action certification is a final, appealable order. Furthermore, App.R. 4(A) mandates that a party file its appeal within thirty days of a final appealable order. Thus, an order of a trial court determining that an action shall not be maintained as a class action, is a final appealable order, and a party must appeal such an order within 30 days of the date of entry pursuant to App.R. 4(A).

{¶ 25}

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Bluebook (online)
2006 Ohio 3727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lofti-fard-v-first-fed-of-lakewood-unpublished-decision-7-20-2006-ohioctapp-2006.