Pugh v. Capital One Bank USA N.A.

2021 Ohio 994
CourtOhio Court of Appeals
DecidedMarch 29, 2021
Docket20CA011643
StatusPublished
Cited by7 cases

This text of 2021 Ohio 994 (Pugh v. Capital One Bank USA N.A.) 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
Pugh v. Capital One Bank USA N.A., 2021 Ohio 994 (Ohio Ct. App. 2021).

Opinion

[Cite as Pugh v. Capital One Bank USA N.A., 2021-Ohio-994.]

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

JAMES S. PUGH C.A. No. 20CA011643

Appellant

v. APPEAL FROM JUDGMENT ENTERED IN THE CAPITAL ONE BANK (USA) NA, et al. COURT OF COMMON PLEAS COUNTY OF LORAIN, OHIO Appellees CASE No. 18CV196556

DECISION AND JOURNAL ENTRY

Dated: March 29, 2021

CALLAHAN, Presiding Judge.

{¶1} Appellant, James Pugh, appeals from the judgment of the Lorain County Court of

Common Pleas dismissing his complaint for failure to state a claim. For the reasons set forth

below, this Court affirms.

I.

{¶2} Mr. Pugh filed a “Complaint in Equity for a Judicial Composition Agreement”

wherein he sought to adjust his debts against thirty of his creditors via a “judicial composition

agreement.” Mr. Pugh conceded he owed the debt, but claimed he was insolvent and offered to

pay twenty-percent of the total debt. Mr. Pugh demanded a “lawful Judicial Composition

Agreement be formulated, declared and ordered by the [c]ourt and that such judgment against

Defendants be issued[.]”

{¶3} Three of the defendant creditors, LNVN Funding, LLC (“LNVN”), Citibank, N.A.

(“Citibank”), and Midland Credit Management, Inc. (“Midland”) filed answers. Citibank also 2

filed a counterclaim for monies due on a credit card account. LNVN moved for and was granted

judgment on the pleadings as to Mr. Pugh’s complaint. Additionally, Citibank filed a motion for

summary judgment as to its counterclaim and Mr. Pugh’s complaint. The trial court granted

Citibank’s motion for summary judgment as to both pleadings and entered judgment in the amount

of $1,396.71 in favor of Citibank and against Mr. Pugh.

{¶4} Thereafter, Mr. Pugh voluntarily dismissed two defendant creditors, Midland and

Synchrony Bank Care Credit Pref. Dental, and filed a notice of acceptance of a compromise

agreement with a third defendant creditor, Capital One Bank, USA. As to the remaining defendant

creditors, Mr. Pugh filed a motion for judgment on the pleadings which was denied. Mr. Pugh

then filed a motion for summary judgment. The trial court did not rule on this motion. Instead,

the trial court gave Mr. Pugh notice of its intent to consider a dismissal for failure to state a claim

and set a deadline for Mr. Pugh to file a brief in support of his complaint. In response, Mr. Pugh

filed a supplemental motion for summary judgment. Thereafter, the trial court dismissed Ms.

Pugh’s complaint for failure to state a claim.

{¶5} Mr. Pugh timely appealed, asserting one assignment of error.

II.

ASSIGNMENT OF ERROR

THE TRIAL COURT COMMITTED PREJUDICIAL ERROR WHEN IT DISMISSED THE PLAINTIFF’S CASE ON ITS OWN MOTION UNDER CIV.R. 12(B)(6) AND IN DENYING AND FAILING TO GRANT PLAINTIFF’S MOTION FOR JUDGMENT ON THE PLEADINGS (FILED 1/22/2019), PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT (FILED 4/02/2019) OR PLAINTIFF’S SUPPLEMENTAL MOTION FOR SUMMARY JUDGMENT (FILED 3/27/2020)[.] THE TRIAL COURT COMMITTED PREJUDICIAL ERROR BY DISMISSING THE CASE AND IN ITS DENIAL OF [MR.] PUGH ACCESS TO THE [C]OURT. [MR.] PUGH WAS WRONGFULLY DENIED ACCESS TO THE COURT AND WRONGFULLY DENIED EQUITABLE RELIEF AND AN EQUITABLE ORDER AND JUDGMENT THAT HE SOUGHT FOR HIS REHABILITATION FROM THE TRIAL COURT. 3

{¶6} Mr. Pugh argues that the trial court erred in dismissing his complaint and in not

exercising its equitable jurisdiction to grant him a “judicial composition agreement.” We disagree.

{¶7} A motion to dismiss pursuant to Civ.R. 12(B)(6) is a procedural motion that tests

the sufficiency of the plaintiff’s complaint. State ex rel. Hanson v. Guernsey Cty. Bd. of Commrs.,

65 Ohio St.3d 545, 548 (1992). The dismissal of a complaint for failure to state a claim is

warranted when based upon the complaint it appears beyond a doubt that the plaintiff can prove

no set of facts that would entitle the plaintiff to recovery. O’Brien v. Univ. Community Tenants

Union, Inc., 42 Ohio St.2d 242 (1975), syllabus. In considering a motion to dismiss based upon

Civ.R. 12(B)(6), the court “must presume that all factual allegations of the complaint are true and

make all reasonable inferences in favor of the non-moving party.” Mitchell v. Lawson Milk Co.,

40 Ohio St.3d 190, 192 (1988). Further, the trial court cannot consider allegations or evidence

outside the complaint and its incorporated attachments when deciding a Civ.R. 12(B)(6) motion.

State ex rel. Fuqua v. Alexander, 79 Ohio St.3d 206, 207 (1997); King v. Semi Valley Sound, LLC,

9th Dist. Summit No. 25655, 2011-Ohio-3567, ¶ 8. “[A] court may dismiss a complaint on its own

motion pursuant to Civ.R. 12(B)(6), failure to state a claim upon which relief may be granted, only

after the parties are given notice of the court’s intention to dismiss and an opportunity to respond.”

State ex rel. Edwards v. Toledo City School Dist. Bd. of Edn., 72 Ohio St.3d 106, 108 (1995). This

Court reviews de novo a trial court’s decision to dismiss for failure to state a claim under Civ.R.

12(B)(6). Park Street Group, LLC v. White, 9th Dist. Summit No. 28254, 2017-Ohio-1188, ¶ 8,

citing Perrysburg Twp. v. Rossford, 103 Ohio St.3d 79, 2004-Ohio-4362, ¶ 5.

{¶8} In his brief, Mr. Pugh acknowledges that the trial court dismissed his complaint for

failure to state a claim, but he “[b]elieve[s]” the dismissal was “more akin to a Civ.R. 12(B)(1)

dismissal.” Mr. Pugh argues that the trial court erred in dismissing his complaint because it has 4

subject matter jurisdiction pursuant to the Ohio Constitution, the Ohio Revised Code, and English

common law and chancery to decide matters based in equity and the trial court refused and failed

to exercise its equitable jurisdiction in this matter.

{¶9} Mr. Pugh’s argument involves two of the three recognized types of jurisdiction:

“subject matter jurisdiction” and “jurisdiction over the particular case.” See State v. Parker, 95

Ohio St.3d 524, 2002-Ohio-2833, ¶ 22 (Cook, J., dissenting), citing State v. Swiger, 125 Ohio

App.3d 456, 462 (9th Dist.1998). The Ohio Supreme Court has recognized that “[t]here is a

distinction between a court that lacks subject-matter jurisdiction over a case and a court that

improperly exercises that subject-matter jurisdiction once conferred upon it.” Pratts v. Hurley,

102 Ohio St.3d 81, 2004-Ohio-1980, ¶ 10.

{¶10} Subject matter jurisdiction refers to the power of a court to hear and decide a case

on the merits. State ex rel. Tubbs Jones v. Suster, 84 Ohio St.3d 70, 75 (1998), citing Morrison v.

Steiner, 32 Ohio St.2d 86 (1972), paragraph one of the syllabus. “A complaint may only be

dismissed under Civ.R. 12(B)(1) when it raises no cause of action that is cognizable by the forum.”

Jones v. Summit Cty. Job & Family Servs., 9th Dist. Summit No. 27708, 2016-Ohio-4940, ¶ 5,

citing State ex rel. Bush v. Spurlock, 42 Ohio St.3d 77, 80 (1989). See Bringheli v. Parma City

School Dist. Bd. of Edn., 8th Dist. Cuyahoga No. 91064, 2009-Ohio-3077, ¶ 10 (“The standard of

review for a dismissal pursuant to Civ.R. 12(B)(1) * * * is whether the plaintiff has alleged any

cause of action over which the court has authority to decide.”). The focus of subject matter

jurisdiction is “on the court as a forum and on the case as one of a class of cases, not on the

particular facts of a case or the particular tribunal that hears the case.” Swiger at 462.

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