Miamisburg Motel v. Huntington National Bank

623 N.E.2d 163, 88 Ohio App. 3d 117, 1993 Ohio App. LEXIS 2799
CourtOhio Court of Appeals
DecidedJune 2, 1993
DocketNo. 13747.
StatusPublished
Cited by46 cases

This text of 623 N.E.2d 163 (Miamisburg Motel v. Huntington National Bank) 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
Miamisburg Motel v. Huntington National Bank, 623 N.E.2d 163, 88 Ohio App. 3d 117, 1993 Ohio App. LEXIS 2799 (Ohio Ct. App. 1993).

Opinions

*120 Brogan, Judge.

■ Appellant, the Huntington National Bank (“Bank”), appeals from a judgment of the Montgomery County Court of Common Pleas denying its motion for relief from judgment filed pursuant to Civ.R. 60(B)(5).

The underlying facts and procedural history of the case are as follows. Plaintiff-appellee, the Miamisburg Motel, d.b.a. Knights Inn of South Dayton (“Miamisburg”), commenced this action in the Montgomery County Court of Common Pleas by filing a complaint against the Bank on June 6, 1991. The complaint sought judgment against the Bank on theories of conversion, unjust enrichment and breach of contract in “a minimum amount of $28,672.67 and for such other money damages as the plaintiff can establish at trial or hearing on this matter,” together with punitive damages of not less than $50,000.

The complaint alleged that Miamisburg maintained two deposit accounts with the Bank prior to April 1989, with an aggregate balance of at least $28,672.67. The complaint further alleged that on approximately April 20, 1989, the Bank wrongfully took possession of these monies, thereby either committing conversion, becoming unjustly enriched, or breaching an implied contract with Miamis-burg to administer Miamisburg’s accounts in good faith and to handle money on deposit appropriately. The merits of this dispute are irrelevant for the purposes of this appeal.

The Bank was served with process by certified mail at its usual place of business in Dayton, Ohio pursuant to Civ.R. 4.2 on June 10, 1991. On or about June 27, 1991, counsel for the Bank telephoned Miamisburg’s counsel to discuss several matters regarding the merits of the case and to request an extension of time to respond to the complaint. It seems clear from the record that the Bank’s counsel left little doubt that the Bank intended to vigorously defend the lawsuit. Miamisburg’s counsel indicated during the conversation that he had no objection to an extension of time but that the Bank should apply for any extension with the trial court and forward a copy of the extension entry to him. Subsequent to this telephone conversation, the Bank’s counsel apparently did not seek an extension of time nor did he make any filing with the trial court.

Miamisburg’s counsel claims that over the next couple of weeks he tried at least two times to contact Bank’s counsel by telephone without success. On or about July 31, 1991, Miamisburg’s counsel wrote a letter to the Bank’s counsel regarding the status of the matter and inquiring about the Bank’s intentions as to an extension of time. The letter mentioned nothing about seeking a default judgment and, in fact, Miamisburg’s counsel stated: “If we are able to come to some understanding without a great deal of effort being spent in the courts, I am *121 all in favor of that type of resolution.” Following receipt of the letter, the Bank’s counsel again appears to have taken no immediate action.

On August 9, 1991, just nine days after sending the above correspondence, Miamisburg’s counsel filed a motion for a default judgment against the Bank in the amount of $35,110.67, which was granted by the trial court on the same day. The motion failed to disclose to the trial court that the Bank was known to be represented by counsel or that there had been any discussion and correspondence between counsel concerning an extension of time to respond to the complaint. Neither the Bank nor its counsel received any notice of the impending default judgment pursuant to Civ.R. 55(A). Additionally, no hearing was held to determine the amount of damages.

On the same day default judgment was applied for and granted, Miamisburg’s counsel mailed time-stamped copies of the motion and judgment entry to the Bank’s counsel. The Bank’s counsel states that because his copy of the judgment entry was not signed by the judge, he believed that the judgment entry was “merely a proposed judgment entry rather than [one] already having been entered.” There is nothing in the record to indicate whether any inquiries were made to the trial court to confirm the Bank’s counsel’s belief.

On August 14, 1991, the Bank’s counsel wrote a letter to plaintiffs counsel in response to the latter’s July 31, 1991 letter and enclosed a copy of the Bank’s memorandum in response to the plaintiffs default motion. Counsel included copies of the plaintiffs account records and denied the Bank had converted any of the plaintiffs funds. Miamisburg’s counsel apparently never responded to the Bank’s counsel to inform him that default judgment had already been entered.

The appearance docket of this case (No. 91-2485 below) reflects that the clerk of courts, pursuant to Civ.R. 58(B), mailed the standard postcard notice of the final appealable order to all parties, including the Bank, by regular mail on August 22, 1991. The Bank’s counsel asserts that neither he nor “any responsible individual at the bank” ever received a copy of the notice. The record reflects that Miamisburg’s counsel did receive a copy of the notice.

On August 26, 1991, the Bank formally filed its memorandum opposing the motion for default judgment, along with the tendered answer. 1 Apparently, the trial court ignored these pleadings since it had already entered a default judgment in the matter. The trial court took no steps to notify the Bank that default judgment had already been entered. We find nothing in the record to *122 indicate that any further inquiry was made by the Bank’s counsel into the disposition of the Bank’s pleadings.

On or about August 14, 1992, just over one year after entry of default judgment, Miamisburg made a somewhat belated effort to satisfy the default judgment by attempting to garnish a number of the Bank’s accounts at other financial institutions. 2 While Miamisburg was unsuccessful in its attempt to garnish the Bank’s accounts, its activity made the Bank aware of the default judgment.

Prompted to action, the Bank filed a motion for relief from judgment and to set aside the default judgment on September 1, 1992. On October 9, 1992, the trial court overruled the Bank’s motion for relief from judgment, ruling that the Bank had not made an “appearance” within the meaning of Civ.R. 55(A) triggering the requirement that notice must be served on the party against whom judgment by default is sought, and that the Bank’s motion was untimely in any event. It is from this judgment that the Bank appeals.

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Bluebook (online)
623 N.E.2d 163, 88 Ohio App. 3d 117, 1993 Ohio App. LEXIS 2799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miamisburg-motel-v-huntington-national-bank-ohioctapp-1993.