Mockensturm v. McIlwain

2021 Ohio 532
CourtOhio Court of Appeals
DecidedFebruary 26, 2021
DocketL-20-1035
StatusPublished

This text of 2021 Ohio 532 (Mockensturm v. McIlwain) 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
Mockensturm v. McIlwain, 2021 Ohio 532 (Ohio Ct. App. 2021).

Opinion

[Cite as Mockensturm v. McIlwain, 2021-Ohio-532.]

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT LUCAS COUNTY

Carl B. Mockensturm Court of Appeals No. L-20-1035

Appellant Trial Court No. 19CVF00203

v.

Craig McIlwain DECISION AND JUDGMENT

Appellee Decided: February 26, 2021

*****

Mark M. Mockensturm and Kevin C. Urtz, for appellant.

Alan Kirshner, for appellee.

MAYLE, J.

{¶ 1} In this case, plaintiff-appellant, Carl B. Mockensturm, appeals the January 9,

2020 judgment of the Maumee Municipal Court that awarded him $58.80 plus interest

against the defendant-appellee, Craig McIlwain. For the following reasons, we affirm, in

part, and reverse, in part. {¶ 2} On March 4, 2019, Mockensturm sued McIlwain in the Maumee Municipal

Court, alleging that McIlwain owed $4,596.22 on an outstanding promissory note. On

March 28, 2019, McIlwain answered the complaint, denying that he owed anything on

the note. He also filed a counterclaim against Mockensturm, alleging that he failed to

pay $15,000 for custom furniture that McIlwain built for him. The court held a bench

trial on January 8, 2020, at which time the following testimony and evidence was heard.

{¶ 3} McIlwain was previously married to Mockensturm’s stepdaughter. In 2012,

while that marriage was still intact, Mockensturm loaned $20,000 to McIlwain. The loan

is memorialized in a promissory note dated December 17, 2012, signed by McIlwain,

which states that McIlwain must repay the $20,000 loan, with interest at an annual rate of

0.22 percent. Under the note, the “Due Date” for repayment is “any future date on which

the Lender demands repayment,” and after the Due Date, interest would accrue at an

annual rate of 0.50 percent. The note further provides that “[i]f any payment obligation

under this Note is not paid when due, the Borrower shall be obligated to pay all costs of

collection, including reasonable attorney fees* * *.”

{¶ 4} Mockensturm’s daughter and bookkeeper, Michele Topar, managed the loan

for her father through her business, Advanced Bookkeeping Concepts. Topar recorded

McIlwain’s payments on a spreadsheet, and calculated the outstanding principle and

interest on a running basis.

2. {¶ 5} McIlwain did not make any payments on the loan until 2014. McIlwain

made an initial payment of $5,000 on July 11, 2014, and a second payment of $1,500 on

August 11, 2014. Thereafter, the parties amended their agreement.

{¶ 6} On August 12, 2014, McIlwain emailed Mockensturm a “memo of

understanding” which, he said, memorialized a discussion they had the day before. The

memo states:

I, Craig Mcilwain, owing Carl Mockensturm the remaining sum of

$13,500 in principle of a total sum of $20,000, agree to make a monthly

payment of $1500.00 due by the 15th of each month. The next payment

due September 15, 2014. The final payment will be due March 15, 2015.

This will require that in certain months more than the minimum payment

will be paid. Likely months being October, November, and February. The

February 2015 payment will be made approximately 1 week later than

usual based on expected cash flow and show schedule.

Mockensturm acknowledged his agreement at the bottom of this document, where he

added:

Carl B. Mockensturm 8-13-14

I agree to the above and add to this memo a [sic] understanding on a

more fair interest rate than what is stated in the original note.

A more fair rate due to the length of the time should be 5% from this

date forward until Paid in Full.

3. {¶ 7} According to Topar’s records and testimony, McIlwain issued only four

checks to Mockensturm after this amendment: a check for $1,500 on October 20, 2014;

a check for $750 on March 4, 2015; a check for $1,500 on April 3, 2015, and a check for

$1,500 on May 8, 2015. At trial, McIlwain claimed that he made additional payments by

check, but he did not have any records to prove it. He explained that he lost all of his

records after his divorce, when his ex-wife took over the house and all its contents.

McIlwain also claimed that he made several cash payments that are not reflected on

Topar’s ledger, but he did not say how much cash he paid or when he paid it. He also did

not have any records of these cash payments. McIlwain explained that he did not think to

get a receipt for any of his cash payments because “it’s family.”

{¶ 8} The bulk of the parties’ dispute concerns whether McIlwain received

appropriate credits to his outstanding debt in exchange for various pieces of furniture that

McIlwain handcrafted for Mockensturm’s family. Mockensturm testified that he did not

owe any compensation for this furniture, claiming that he was not involved in these

transactions and that the furniture was “never mine.” When McIlwain’s attorney

questioned Mockensturm regarding his reply to counterclaim—in which he admitted that

McIlwain built various pieces of furniture “[a]t plaintiff’s request”—Mockensturm

responded “I don’t know what that’s about.” Mockensturm explained that Topar ordered

furniture from McIlwain directly. Instead of paying McIlwain for the furniture she

ordered, Topar made loan payments to Mockensturm on McIlwain’s behalf and then

recorded these payments on her spreadsheet. Mockensturm did acknowledge, however,

4. that he agreed to apply a credit to McIlwain’s loan as payment for a fireplace mantle that,

he said, his son had purchased from McIlwain. Mockensturm testified that he does not

recall any conversations with McIlwain regarding how much credit should be given to

McIlwain in exchange for any of the furniture, and there is very little documentation in

that regard.

{¶ 9} Topar confirmed that she bought various pieces of furniture from McIlwain.

She claims that she paid McIlwain directly for some of the furniture, while in other

instances he told her to make a loan payment to Mockensturm on his behalf. While

Topar acknowledged that McIlwain did not provide invoices for most of the furniture she

purchased, she did not explain how she determined the value of any items that lacked an

invoice. Topar did, however, testify that McIlwain “has had copies of [the spreadsheet]

in the past”—i.e., the spreadsheet that tracked McIlwain’s payments and documented the

various credits that she gave him in exchange for his furniture—but Topar did not say

when McIlwain received those copies or what was reflected on the copies that he

received. And there is no documentation in the record to show which versions of the

spreadsheet McIlwain received. McIlwain did admit that he had received copies of the

ledger in the past, but he “had a hard time figuring them out” because “they always

seemed to be different and * * * give something and then take it away * * *. I never

knew what was going on with those sheets.”

{¶ 10} McIlwain testified that he never agreed to accept the values that Topar

assigned to his furniture in her ledger, and he denied that he received any direct payments

5. from Topar for any furniture. He also testified that he made all of the furniture at

Mockensturm’s request. He said “I never felt like it was coming from Michele, it always

felt like it was coming from Carl, I mean that’s the way it always looked. I was pretty

much doing the work for Carl.” McIlwain testified that he tried to make payments on the

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Bluebook (online)
2021 Ohio 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mockensturm-v-mcilwain-ohioctapp-2021.