Miley v. STS Systems, Inc.

795 N.E.2d 1255, 153 Ohio App. 3d 752, 2003 Ohio 4409
CourtOhio Court of Appeals
DecidedAugust 21, 2003
DocketNo. 02AP-1321 (REGULAR CALENDAR).
StatusPublished
Cited by16 cases

This text of 795 N.E.2d 1255 (Miley v. STS Systems, Inc.) 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
Miley v. STS Systems, Inc., 795 N.E.2d 1255, 153 Ohio App. 3d 752, 2003 Ohio 4409 (Ohio Ct. App. 2003).

Opinion

Brown, Judge.

{¶ 1} Richard and Patricia Miley, plaintiffs-appellants, appeal the judgment of the Franklin County Court of Common Pleas granting the motion to vacate and/or set aside the judgment filed by SLZ Corporation (“SLZ”), defendant-appellee.

{¶ 2} In July 1997, Richard entered into an employment agreement with Merchandise Management Systems, Inc. (“Merchandise”), defendant-appellee. He entered into a separate covenant not to compete with STS Systems, Inc. (“STS”), defendant-appellee. On May 15, 2000, appellants filed an action against STS and Merchandise for breach of the employment agreements, age discrimination, and loss of consortium. Appellants attempted service by certified mail upon STS and Merchandise in Bensalem, Pennsylvania, and Basking Ridge, New Jersey, respectively. The attempted certified mail service failed. Believing STS and Merchandise to be foreign corporations not licensed to do business in the state of Ohio, appellants had a special process server appointed to serve Merchandise and STS through the Ohio Secretary of State pursuant to R.C. 1703.191 and 1705.58. On December 4, 2000, the Ohio Secretary of State was served as the agent for both STS and Merchandise, with appellants again indicating that the addresses of STS and Merchandise were Bensalem, Pennsylvania, and Basking Ridge, New Jersey, respectively. On December 13, 2000, proof of service on STS and Merchandise, through the Ohio Secretary of State, was filed with the court, indicating that the Ohio Secretary of State had attempted service.

{¶ 3} STS and Merchandise did not file answers to the complaint, and appellants filed a motion for default judgment on January 12, 2001. On January 24, 2001, the motion for default judgment was granted. A damages hearing was held, and appellants were awarded damages pursuant to judgment on March 27, 2001. Another complaint was filed in 2002 against STS, Merchandise, and other companies and individuals, attempting to collect on the default judgments. Service for the 2002 complaint included the correct address for STS and Merchandise. Upon receiving notice of the 2002 complaint, on September 10, 2002, a motion to vacate and/or set aside the default judgment was filed by SLZ, the successor corporation of STS and Merchandise (sometimes collectively referred to as “appellees”). On November 15, 2002, the court granted SLZ’s *756 motion and vacated the default judgment. Appellants appeal the judgment of the trial court, asserting the following two assignments of error:

{¶ 4} “[I] The trial court erred in vacating the judgment finding that it was void on the basis that the appellants did not procure proper service upon the appellees.”
{¶ 5} “[II] The trial court erred by conducting its own research in rendering its decision.”

{¶ 6} Appellants argue in their first assignment of error that the trial court erred in vacating the judgment and finding it void on the basis that they did not procure proper service upon appellees. A court lacks personal jurisdiction to enter a default judgment against a defendant where effective service of process has not been made upon the defendant and the defendant has not appeared in the case or otherwise waived service. Rite Rug Co., Inc. v. Wilson (1995), 106 Ohio App.Sd 59, 62, 665 N.E.2d 260. Absent proper service, the trial court lacks jurisdiction to enter a judgment, and if a judgment is nevertheless rendered, it is a nullity and void ab initio. O.B. Corp. v. Cordell (1988), 47 Ohio App.3d 170, 171, 547 N.E.2d 1201.

{¶ 7} The authority to vacate a void judgment is not derived from Civ.R. 60(B) but, rather, constitutes an inherent power possessed by Ohio courts. Lincoln Tavern v. Snader (1956), 165 Ohio St. 61, 59 O.O. 74, 133 N.E.2d 606, paragraph one of the syllabus; Westmoreland v. Valley Homes Mut. Hous. Corp. (1975), 42 Ohio St.2d 291, 294, 71 O.O.2d 262, 328 N.E.2d 406; see, also, Internatl. Lottery, Inc. v. Kerouac (1995), 102 Ohio App.3d 660, 671, 657 N.E.2d 820. A Civ.R. 60(B) motion is a collateral attack upon a judgment, but a motion to vacate a judgment due to lack of jurisdiction is a direct attack upon a judgment. In re Miller (1986), 33 Ohio App.3d 224, 227, 515 N.E.2d 635. Further, because courts have inherent power to vacate their own void judgments, motions to vacate void judgments “need not satisfy the requirements of Civ.R. 60(B).” Id.; Community Ins. Co. v. Sullivan (June 30, 1997), Franklin App. No. 96APE12-1750, 1997 WL 359270. Thus, the appropriate recourse for challenging a void judgment that is encumbered by a jurisdictional defect is to file a common-law motion to vacate based upon the inherent power of a trial court to set aside a judgment. See Molz v. Magdych (Aug. 23, 1996), Trumbull App. No. 96-T-5396, 1996 WL 537858, citing Thorpe v. Oakford (Jan. 19, 1996), Portage App. No. 94-P-0057, 1996 WL 200580; see, also, Patton v. Diemer (1988), 35 Ohio St.3d 68, 518 N.E.2d 941, paragraph four of the syllabus (“The authority to vacate a void judgment is not derived from Civ.R. 60(B) but rather constitutes an inherent power possessed by Ohio courts”). The decision of a trial court regarding a motion to vacate a judgment will not be overturned on appeal absent an abuse of discretion. *757 Hoffman v. New Life Fitness Ctrs., Inc. (1996), 116 Ohio App.3d 737, 739, 689 N.E.2d 84, citing Terwoord v. Harrison (1967), 10 Ohio St.2d 170, 171, 39 O.O.2d 167, 226 N.E.2d 111.

{¶ 8} Appellants claim that they were entitled to perfect service upon STS and Merchandise through the Ohio Secretary of State pursuant to R.C. 1703.191 and 1705.58. R.C. 1703.191 provides:

{¶ 9} “Any foreign corporation required to be licensed under sections 1703.01 to 1703.31 of the Revised Code, which transacts business in this state without being so licensed, shall be conclusively presumed to have designated the secretary of state as its agent for the service of process in any action against such corporation arising out of acts or omissions of such corporation within this state, including, without limitation, any action to recover the statutory forfeiture for failure to be so licensed. Pursuant to such service, suit may be brought in Franklin county, or in any county in which such corporation did any act or transacted any business.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Continuum Transp. Servs., Ltd. v. Elite Internatl. Corp., L.L.C.
2024 Ohio 340 (Ohio Court of Appeals, 2024)
Ellison v. K 2 Motors, L.L.C.
2023 Ohio 1871 (Ohio Court of Appeals, 2023)
Jones v. Jones
2023 Ohio 989 (Ohio Court of Appeals, 2023)
Asamoah v. GM Fin.
2022 Ohio 2301 (Ohio Court of Appeals, 2022)
Adams v. McElroy
2018 Ohio 89 (Ohio Court of Appeals, 2018)
Craig v. Reynolds
2014 Ohio 3254 (Ohio Court of Appeals, 2014)
Monus v. Day
2011 Ohio 3170 (Ohio Court of Appeals, 2011)
Glenn v. Glenn, 2008 Ca 00041 (3-23-2009)
2009 Ohio 1345 (Ohio Court of Appeals, 2009)
Gmac v. Greene, 08ap-295 (9-4-2008)
2008 Ohio 4461 (Ohio Court of Appeals, 2008)
State v. Eschrich, Ot-06-045 (6-20-2008)
2008 Ohio 2984 (Ohio Court of Appeals, 2008)
Parrish v. Orec, Unpublished Decision (12-1-2005)
2005 Ohio 6375 (Ohio Court of Appeals, 2005)
Bank of N. York v. Bartmas F.T., Unpublished Decision (11-17-2005)
2005 Ohio 6099 (Ohio Court of Appeals, 2005)
Stonehenge Condo. Asso. v. Davis, Unpublished Decision (9-6-2005)
2005 Ohio 4637 (Ohio Court of Appeals, 2005)
Bettis v. National Union Fire, Unpublished Decision (4-26-2004)
2004 Ohio 2172 (Ohio Court of Appeals, 2004)
Don Ash Prop. v. Dunno, Unpublished Decision (11-4-2003)
2003 Ohio 5893 (Ohio Court of Appeals, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
795 N.E.2d 1255, 153 Ohio App. 3d 752, 2003 Ohio 4409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miley-v-sts-systems-inc-ohioctapp-2003.