Niederst v. Niederst

2024 Ohio 5297
Ohio Court of Appeals·Decided November 6, 2024·No. 31006·Published·Cited by 2 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

BRENDA NIEDERST, et al. C.A. No. 31006 Appellants/Cross-Appellees

v. APPEAL FROM JUDGMENT ENTERED IN THE

MARK NIEDERST, et al. COURT OF COMMON PLEAS COUNTY OF SUMMIT, OHIO

Appellees/Cross-Appellants CASE No. 2022-01-0050

DECISION AND JOURNAL ENTRY Dated: November 6, 2024

STEVENSON, Presiding Judge.

{¶1} Appellants/Cross-Appellees, Brenda Niederst (“Sister”), Gaye Niederst, Cross Creek Apartments, LLC, Cross Creek Apartments LLC f/k/a/ Wynn Acquisitions LLC, Wynn Investments LLC, Brenda Niederst Medina, LLC, Wyatt Investment LLC, Brenda Niederst, LLC, and Cross Creek Apartments Medina, LLC (collectively, “Sister, et al.”), appeal from the judgment of the Summit County Court of Common Pleas in favor of Appellees/Cross-Appellants, Mark Niederst (“Brother”), Cheryl Niederst, Niederst Portage Towers, LLC, Mark Spagnuolo, LLC, Mark Niederst Holdings, LLC, Portage Towers Holdings, LLC, and Mark Spagnuolo Medina, LLC (collectively, “Brother, et al.”). This Court affirms.

I.

{¶2} Sister and Brother jointly owned two apartment buildings. Disagreements about the properties eventually led Brother to sue Sister. In late 2016, they engaged in mediation and agreed to a handwritten settlement splitting the properties so that each of them would receive a full

interest in one. The handwritten settlement included additional provisions, one of which was that Sister and Brother would execute a more definitive settlement agreement within seven days. That deadline passed without further agreement. Brother then moved to enforce the handwritten settlement agreement due to Sister’s noncompliance.

{¶3} The trial court held a hearing on Brother’s motion to enforce. As a result of the hearing, the parties executed a definitive settlement agreement on January 4, 2017. They agreed to transfer terms for the properties. They also agreed to the dismissal of the lawsuit with prejudice. The agreement contained a mutual release regarding any claims that could or should have been raised in the lawsuit. The agreement bound Brother and Sister as well as their agents, personal representatives, assigns, assignors, parents, subsidiaries, affiliates, related entities, successors, transferees, shareholders, directors, officers, owners, members, managers, and employees.

{¶4} Within one month of the execution of the definitive settlement agreement, Brother moved to enforce it due to Sister’s noncompliance. He requested damages, sanctions, and attorney fees. A magistrate held a hearing on his motion wherein both parties presented evidence. The magistrate found Sister had breached the definitive settlement agreement. The magistrate ordered her to pay damages, including the bank fees, bank legal fees, and attorney fees that Brother had incurred due to her breach. Both parties objected to the magistrate’s decision. The trial court modified the damage award the magistrate ordered but otherwise entered a judgment consistent with the magistrate’s decision.

{¶5} Sister appealed from the trial court’s decision, and Brother filed a cross-appeal.

This Court rejected their arguments and affirmed the judgment of the trial court. Niederst v. Niederst, 2018-Ohio-5320 (9th Dist.). Following our decision, Sister paid the damages awarded to Brother, and both parties filed satisfactions of judgment.

{¶6} In 2020, Sister and Wynn Investments, LLC, sued Brother and Niederst Portage Towers, LLC. The lawsuit set forth claims for breach of contract, fraud in the inducement, promissory estoppel, unjust enrichment, and conversion. Brother moved to dismiss the complaint based on the settlement agreement and the prior decisions of the trial court and this Court. Before the trial court could rule on his motion, Sister voluntarily dismissed the lawsuit.

{¶7} In 2022, Sister, et al. filed the instant action against Brother, et al. The complaint asserted the following claims: breach of the settlement agreement, fraud in the inducement, breach of fiduciary duty and fraud, unjust enrichment, and conversion. The gist of the complaint was that Brother had engaged in fraudulent and deceitful behavior since the mid-2000s, with the aim of reaping a personal financial benefit and diminishing Sister’s savings and assets until, finally, she was forced to enter into an unfavorable settlement agreement. Brother, et al., answered the complaint and raised numerous affirmative defenses. Additionally, Brother, et al., counterclaimed for breach of the settlement agreement, abuse of process, malicious prosecution, injunctive relief, and fraudulent tax filing/mailing. Both parties sought compensatory damages, punitive damages, injunctive relief, attorney fees, costs, and expenses.

{¶8} Brother, et al. moved for summary judgment on each of the claims in the complaint as well as on the counterclaims for breach of the settlement and injunction. Sister, et al. filed a brief in opposition. Upon review, the trial court awarded Brother, et al. summary judgment on each of Sister, et al.’s claims but denied summary judgment on the counterclaims. The counterclaims were set for trial. Before the trial occurred, Brother, et al. dismissed the counterclaim for abuse of process. Brother, et al. also dismissed all counterclaims against Gaye Niederst.

{¶9} At trial, the trial court dismissed Brother, et al.’s counterclaims for abuse of process, malicious prosecution, and fraudulent tax filing/mailing. A jury found in favor of Brother, et al. regarding the counterclaim for breach of the settlement agreement. The jury awarded $21,749 in compensatory damages and found Brother, et al. were entitled to reasonable attorney fees. Brother, et al. filed a brief in support of an award of attorney fees, costs, and expenses. Brother, et al. also filed a brief in support of a permanent injunction against Sister, et al. The trial court assigned the matter to a magistrate.

{¶10} The magistrate conducted a hearing and determined that Brother, et al. were entitled to the following awards: (1) $119,092.74 in attorney fees, and (2) $0 in costs apart from the costs the clerk of courts would assess at the conclusion of the litigation. The magistrate denied Brother, et al.’s request for injunctive relief and, pursuant to that determination, dismissed the counterclaim for injunctive relief.

{¶11} Brother, et al. filed objections to the magistrate’s decision along with a transcript of the fee hearing. The trial court determined that the magistrate’s decision contained a calculation error and returned the matter to the magistrate for a corrective decision. On further review, the magistrate increased the award of attorney fees to $152,948.63 and maintained the award of costs. Both parties objected to the magistrate’s corrective decision.

{¶12} The trial court overruled the objections to the magistrate’s corrective decision. The court noted that, after the magistrate had conducted the evidentiary hearing on attorney fees, Brother, et al. had filed a supplemental motion for fees and costs based on expenses incurred at the hearing. The trial court awarded those supplemental fees and costs to Brother, et al. in the amounts of $2,583.00 (attorney fees) and $2,112.50 (costs). Consequently, the trial court entered judgments in favor of Brother, et al. for $21,749 in compensatory damages, $155,531.63 in

attorney fees (the amount awarded by the magistrate plus the supplemental fee award), and $2,112.50 in costs. Sister, et al. appealed from the trial court’s judgment, and Brother, et al. filed a cross-appeal.

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