Olthaus v. Niesen

2024 Ohio 1953, 244 N.E.3d 668
Ohio Court of Appeals·Decided May 22, 2024·No. C-230513 & C-230515·Published·Cited by 1 cases

Opinion

IN THE COURT OF APPEALS

FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

RYAN OLTHAUS, : APPEAL NOS. C-230513 C-230515

Plaintiff-Appellee, : TRIAL NO. A-2002596

and : O P I N I O N. ZACHARY GOTTESMAN, ESQ., :

and : ROBERT THUMANN, ESQ., :

Appellees, :

vs. : JULIE NIESEN, :

and : JAMES NOE, :

Defendants-Appellants, :

and : TERHAS WHITE, :

and : ALISSA GILLEY, :

Defendants. :

Civil Appeals From: Hamilton County Court of Common Pleas

Judgment Appealed From Is: Affirmed In Part, Reversed In Part, and Cause Remanded

Date of Judgment Entry on Appeal: May 22, 2024

Gottesman & Associates, LLC, Zachary Gottesman, Crehan & Thumann, LLC, and Robert J. Thumann, for Plaintiff-Appellee,

Laursen, Colliver & Mellott, LLC, and Erik W. Laursen, for Defendant-Appellant Julie Niesen,

Whittaker Law, LLC, and Justin M. Whittaker, for Defendant-Appellant James Noe.

BERGERON, Judge.

{¶1} One of our most cherished freedoms is the right to free expression, guaranteed by the U.S. and Ohio Constitutions. But free expression can also be harmful, as one person’s observation can inflict trauma on another. For that reason, courts have carefully cultivated doctrines to strike the appropriate balance between free expression and actionable speech. One of the most well-known frameworks involves the “actual malice” standard recognized in New York Times v. Sullivan, 371 U.S. 946, 83 S.Ct. 510, 9 L.Ed.2d 496 (1963), which obligates public figures suing for defamation to satisfy a stringent test that requires that the speaker acted with knowledge that the statement was false, or with reckless disregard as to the statement’s falsity. Here, a police officer, plaintiff-appellee Ryan Olthaus, sued several individuals accusing them of defamation for calling him a “white supremacist.” However, he never sought to satisfy the Sullivan actual malice standard—not in his complaint, not in opposing the defendants’ motions to dismiss, and not in a prior appeal to this court after dismissal of his suit. Nor did he seek to claim some type of exception from or modification to the Sullivan standard. Two defendants accordingly sought sanctions under the frivolous conduct statute, R.C. 2323.51, but the trial court denied relief. We see things differently, as the willful blindness to the controlling legal standard carries consequences. For the reasons explained more fully below, we reverse, in part, the trial court’s denial of the sanctions motion for frivolous conduct, and we remand the cause for further proceedings.

I.

{¶2} In July 2020, Officer Olthaus, through his attorneys Zachary Gottesman and Robert Thumann, filed a complaint against defendants-appellants James Noe and

Julie Niesen (together, “Defendants”) and other parties, alleging defamation, false light invasion of privacy, and negligence/recklessness. Following various orders and appeals, including those related to the trial court’s grant of a temporary restraining order prohibiting the release of Officer Olthaus’s personal information, all defendants moved to dismiss all claims under Civ.R. 12(B)(6) in June and July 2022.

{¶3} In March 2023, the trial court ultimately dismissed the complaint as to all claims against all defendants for failure to state a claim for which relief can be granted. Regarding Officer Olthaus’s defamation claims, the trial court concluded that “all of Defendants’ statements were either true or constitutionally protected statements of opinion.” Officer Olthaus quickly appealed, challenging the dismissal while emphasizing the political atmosphere at the time of the incident and the harm the statements allegedly caused him.

{¶4} Shortly after the dismissal, Defendants jointly moved for sanctions against Officer Olthaus, Mr. Gottesman, and Mr. Thumann (together, “Appellees”) for frivolous conduct pursuant to R.C. 2323.51(A)(2)(a). Appellees failed to respond by the filing deadline, prompting Defendants to jointly move the court to grant their motion as unopposed.

{¶5} Now aware of the timing lapse, Officer Olthaus requested leave to file a response out of time. His counsel—Mr. Gottesman and Mr. Thumann—did not join in the motion. Defendants opposed this request, insisting that Officer Olthaus failed to make or attempt a showing of excusable neglect and that neither Mr. Gottesman nor Mr. Thumann sought leave to file a response out of time. Officer Olthaus then filed a memorandum opposing the motion for sanctions, which Defendants (unsuccessfully) sought to strike.

{¶6} In the aftermath of all of this procedural wrangling, the trial court convened a hearing on the joint motion for sanctions. During the hearing, Defendants attempted to question Mr. Thumann—Officer Olthaus’s counsel—“to determine what and how any investigation was done, in light of the fact that the very first sentence of the responsive motion that you just admitted and allowed leave for is a misstatement of the law of New York Times v. Sullivan, well-established law that should have been known before anything was filed.” In response, Mr. Thumann maintained that issues of attorney-client privilege and work product precluded such an inquiry, explaining to the court that their briefing on the matter could stand on its own. Largely agreeing with Mr. Thumann, the trial court denied Defendants’ request, reasoning that it adequately understood the applicable law and leaving it to Defendants to argue that Officer Olthaus failed to adhere to or acknowledge the law.

{¶7} Following the hearing, the trial court orally granted the motion for leave to file out of time and denied the joint motion for sanctions, explaining “[t]he filing of this suit surely is looking to create a carve-out or protection for people such as Officer Olthaus.” And later that month, the court explained its decision in an entry, finding Officer Olthaus’s complaint and other filings were “warranted under existing law and/or supported by a good faith argument for the extension of existing law.” In September 2023, Mr. Noe and Ms. Niesen appealed the denial of their joint motion for sanctions. This court consolidated the appeals.

{¶8} In December 2023, this court released its decision regarding Officer Olthaus’s merits appeal, affirming the trial court’s decision dismissing his claims because Defendants’ statements were either true or matters of opinion, Officer Olthaus failed to plead or argue actual malice, and he could plead no facts showing that

defendants violated an underlying criminal statute. See Olthaus v. Niesen, 1st Dist. Hamilton No. C-230142, 2023-Ohio-4710.

{¶9} With the procedural table now set, we turn to review Mr. Noe’s and Ms. Niesen’s consolidated sanctions appeals.

II.

{¶10} Mr. Noe’s and Ms. Niesen’s assignments of error largely overlap.

Therefore, we address their corresponding assignments of error together, albeit out of order.

A.

{¶11} In Mr. Noe’s first assignment of error and Ms. Niesen’s fourth assignment of error, Defendants contend that the trial court erred by allowing Mr. Olthaus to file his memorandum contra the joint motion for sanctions because he failed to comply with the timing requirements in the Ohio Rules of Civil Procedure.

{¶12} This court reviews a trial court’s decision to grant a motion to file out of time upon a finding of excusable neglect for an abuse of discretion. See Milatz v. City of Cincinnati, 2019-Ohio-3938, 145 N.E.3d 1117, ¶ 15 (1st Dist.), citing Watts v. Fledderman, 1st Dist. Hamilton No. C-170255, 2018-Ohio-2732, ¶ 36. An abuse of discretion occurs when “a court exercise[es] its judgment, in an unwarranted way, in regard to a matter over which it has discretionary authority.” Johnson v. Abdullah, 166 Ohio St.3d 427, 2021-Ohio-3304, 187 N.E.3d 463, ¶ 35.

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Olthaus v. Niesen, 2024 Ohio 1953, 244 N.E.3d 668 (Ohio Ct. App. 2024).

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