Morris v. Morris

2021 Ohio 2677
Ohio Court of Appeals·Decided August 5, 2021·No. 109854·Published·Cited by 1 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

ALEXANDRA D. MORRIS, :

Plaintiff-Appellant, :

No. 109854

v. :

APRIL MORRIS, ET AL., :

Defendants-Appellees. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: August 5, 2021

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-17-886903

Appearances:

Paul W. Flowers Co., L.P.A., Paul W. Flowers, and Louis E. Grube; The Peccho Law Firm Co., L.P.A., and Andrew J.

Wides, for appellant.

Lewis, Brisbois, Bisgaard & Smith, L.L.P., Theresa A.

Edwards and Bradley J. Barmen, for appellees.

KATHLEEN ANN KEOUGH, J.:

Plaintiff-appellant, Alexandra Morris (“appellant” or “plaintiff”), appeals multiple decisions made by the trial court during a bifurcated jury trial, but prior to dismissal due to settlement. For the reasons that follow, we affirm.

I. Factual Background In 2003, Amy M. Morris (“Amy”), appellant’s mother, purchased the assets of a market research firm named “Focus Groups of Cleveland Survey Center” — a business that her maternal grandmother, Betty Perry, owned and operated for over 30 years. She purchased the company for $516,000. From this company, Amy launched a new market research company called “Focus Groups.” In 2003, Amy issued herself four stock certificates accounting for 125 shares each, totaling 500 outstanding shares. Amy’s mother, Bonnie Morris (“Bonnie”), continued her role as bookkeeper and accountant.

In 2006, Amy was diagnosed with cancer. At that time, appellant was attending Beachwood Middle School. To provide for appellant, her only heir, Amy’s estate plan consisted of a pour-over will and trust with appellant as the sole beneficiary. Her Last Will and Testament left all the tangible personal effects of her estate to appellant. But the intangible assets of the estate, including Amy’s business interests, were left through the will’s residual clause for care and management by the trustees of the trust. Amy nominated her sister, April Morris (“April”), her mother Bonnie, and her father, Jeffrey Morris (“Jeffrey”), as co-executors of the estate.

Amy designed the trust to hold property for the benefit of appellant until she attained the age of 25, at which time one-half of the trust property would be distributed to her. The remaining trust property would continue to be managed by the trustees until appellant turned 30 years old, at which time the assets would be released to her. Amy was the trustee during her lifetime, but April, Bonnie, and Jeffrey were all designated as successor co-trustees.

In December 2009, April moved from Florida to Ohio. She initially lived with her grandmother, Betty, and worked as a nail technician. In April 2010, April moved in with Amy and appellant due to conflicts with Betty.

Amy succumbed to cancer on December 10, 2010. Appellant was just 17 years old when her mother died. Following her mother’s death, appellant continued to live in her home with April until 2011, when she graduated high school and attended The Ohio State University. According to appellant, April treated her as a self-sufficient adult and did little in terms of “parental” support. Rather, appellant’s great-grandmother, Betty, assisted her with those necessities.

On November 11, 2011, Attorney Edward M. Graham filed an application to relieve Amy’s estate from probate, which was submitted on behalf of April as the applicant. The application listed the estate property as only 125 shares of Focus Groups stock, with a value of $26,048.10. No other assets were listed, including personal and real property, or the remaining 375 shares of Focus Group that Amy owned at the time of her death. Subsequent to the administration of the estate, Attorney Graham assisted with April’s purchase of trust property, to wit, the 125 shares of Focus Group stock. To facilitate this purchase, April resigned as co- trustee of the Trust, and then acquired the 125 shares of Focus Group stock by “assuming $26,048.10” of the company’s secured debts. From that point on, April owned Focus Groups.

Despite being the sole beneficiary under both her mother’s Will and Trust, appellant was never notified of the existence of these documents, nor was she notified of any legal proceedings regarding her mother’s estate. Even when she asked April and Jeffrey about her mother’s estate, both claimed that no Will existed. It was not until January 2017, after she located documents in Jeffrey’s home, that appellant became aware that her mother had in fact left a Will and Trust, and that she was the sole beneficiary under those documents. Despite her mother’s intention to provide for her daughter, appellant received nothing from her mother’s estate. II. Procedural Background On October 4, 2017, appellant filed a civil action against April and Jeffrey (collectively “defendants”). The amended complaint alleged that the defendants had engaged in fraudulent concealment, fraud, civil conspiracy, breach of fiduciary duty, interference with an expectancy inheritance, negligence with respect to Amy’s Last Will and Testament, and the Amy A. Morris Family Trust, and conversion of property. Claims were initially asserted against Attorney Edward M. Graham and Edward M. Graham Co., L.P.A., for legal malpractice. The claims against Attorney Graham and his company were dismissed prior to trial. Appellant also sought an accounting from the defendants and Focus Groups of Cleveland, Inc. of corporate income, expenditures, and profits beginning in 2010. She further sought a declaratory judgment that the transfer of 125 shares of Focus Groups stock from the Trust to April was void. As relief, appellant sought compensatory and punitive damages, an award of reasonable attorney fees and expenses, prejudgment interest, disgorgement of profits of Focus Groups, a declaration that the transfer of 125 shares of Focus Groups stock to April was void for lack of consideration, an order compelling April to transfer those shares back to the Trust, and a constructive trust over any assets unlawfully retained by the defendants.

Defendants April, Jeffrey, and Focus Groups asserted counterclaims against appellant for civil theft, conversion, and declaratory relief as to records taken from Jeffrey’s home. Appellant filed an answer, admitting to taking the records from Jeffrey’s home, but claimed she did so lawfully.

The case was assigned to a visiting judge for trial. In March 2020, the matter ultimately proceeded to a bifurcated jury trial, meaning that the jury would first consider liability and compensatory damages, and then reconvene for punitive damages, if necessary. Following the close of evidence during the first phase of trial, the trial court directed verdicts on all claims against Jeffrey. Although the trial court denied appellant’s request for a jury instruction regarding the creation of constructive trust, no other objections to the jury instructions or general verdict forms were made by either party. Thereafter, the jury retired to deliberate.

The jury returned verdicts in favor of appellant and the defendants.

Pursuant to the verdict forms and interrogatories, the jury found in favor of appellant on her claims for fraud, breach of fiduciary duty, tortious interference, conversion, and civil conspiracy. The jury entered an amount of $62,000 as “the total amount of compensatory damages awarded to plaintiff” on each of the general verdict forms for each prevailing claim. As for defendants’ claims, the jury found in favor of defendant, April Morris, on her claims for civil theft and conversion. The jury entered an amount of $1.00 as “the total amount of compensatory damages awarded to Counterclaimants April Morris and Focus Groups” on each of the general verdict forms for each prevailing claim.

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