Recovery Funding, L.L.C. v. Beckman

2022 Ohio 1095
CourtOhio Court of Appeals
DecidedMarch 31, 2022
Docket20AP-592
StatusPublished
Cited by2 cases

This text of 2022 Ohio 1095 (Recovery Funding, L.L.C. v. Beckman) 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
Recovery Funding, L.L.C. v. Beckman, 2022 Ohio 1095 (Ohio Ct. App. 2022).

Opinion

[Cite as Recovery Funding, L.L.C. v. Beckman, 2022-Ohio-1095.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Recovery Funding, L.L.C., :

Plaintiff-Appellant, : No. 20AP-592 (C.P.C. No. 19CV-2521) v. : (REGULAR CALENDAR) Brian Beckman et al., :

Defendants-Appellees. :

D E C I S I O N

Rendered on March 31, 2022

On brief: Brunner Quinn, and Rick L. Brunner, for appellant. Argued: Rick L. Brunner.

On brief: Gillett Law Office, LLC, and Gary A. Gillett, for appellee Patriarch-BT Holdings, LLC. Argued: Gary A. Gillett.

APPEAL from the Franklin County Court of Common Pleas

DORRIAN, J. {¶ 1} Plaintiff-appellant, Recovery Funding, L.L.C. ("Recovery"), appeals from a judgment of the Franklin County Court of Common Pleas granting the motion of defendant- appellee Patriarch-BT Holdings, L.L.C. ("Patriarch") for release of a portion of the cash deposits substituted as the security for four mechanic's liens. For the reasons which follow, we dismiss the appeal. I. Facts and Procedural History {¶ 2} The events underlying the present dispute began in 2015 when Patriarch contracted with Buckeye Building Solutions, LTD ("Buckeye") to renovate and remodel several of Patriarch's properties. Buckeye began work on the project, but eventually stopped work at Patriarch's request. Although Patriarch paid Buckeye some amounts for No. 20AP-592 2

the work performed, Buckeye alleged that a balance remained due and owing which Patriarch refused to pay. {¶ 3} In 2016, Buckeye recorded four mechanic's liens against Patriarch's properties. Buckeye recorded the following three liens on January 8, 2016: lien number 201601080002812 ("lien number 12") in the amount of $26,317.23 against 870 Carpenter Street; lien number 201601080002813 ("lien number 13") in the amount of $26,630.30 against 874 Carpenter Street; and lien number 201601080002814 ("lien number 14") in the amount of $19,172.01 against 837 Carpenter Street. On February 9, 2016, Buckeye recorded lien number 201602090016319 ("lien number 19") in the amount of $167,562.76 against 801, 684-686, and 627 Carpenter Street and 839, 822, 792, 781, 769, 765, 896, 860, and 598 Gilbert Street. {¶ 4} In February 2016, Buckeye retained The Brunner Firm Co., L.P.A., d/b/a Brunner Quinn ("Brunner Quinn") pursuant to a written retainer agreement. In June 2016, Buckeye informed Brunner Quinn that it was working with another attorney, and Brunner Quinn withdrew from representing Buckeye. Buckeye allegedly failed to pay Brunner Quinn pursuant to the terms of the parties' agreement. Recovery is an assignee of Brunner Quinn. {¶ 5} On June 22, 2017, in Franklin County M.C. No. 2017CVF020734, Recovery filed suit against Buckeye, Buckeye's managing member Edward Spiers, and Buckeye's project manager Nashon Owens (collectively, "the Buckeye defendants"). Recovery alleged that the Buckeye defendants owed Brunner Quinn, and by assignment owed Recovery, $10,096.64 plus interest, exemplary damages, punitive damages, attorney fees, and litigation costs. On September 12, 2017, the municipal court in case No. 2017CVF020734 granted judgment in favor of Recovery in the following amounts: $10,275.22 compensatory damages, $4,729.78 exemplary damages, and $1,617.50 in attorney fees, plus court costs and interest at the rate of 4 percent per annum. {¶ 6} Shortly thereafter, in Franklin C.P. No. 17CV-8575, Recovery filed a creditor's bill complaint against Patriarch and the Buckeye defendants alleging the Buckeye defendants could not pay the judgment from M.C. case No. 2017CVF020734. Recovery asked the court to "order attachment in favor of and transfer to [Recovery] of [Buckeye's] interests in the real property and mechanic's liens [in lien numbers 12, 13, and 14]" and to No. 20AP-592 3

grant Recovery a "right to foreclose upon" mechanic's lien numbers 12, 13, and 14. (Mar. 25, 2019 Compl., Ex. 6, Enclosure 1, Creditor's Bill Compl., ¶ 16.2 & Prayer for Relief ¶ (B)(2).) {¶ 7} The court in the creditor's bill action approved stipulated entries between Recovery and Patriarch ("Patriarch Stipulated Entry") and between Recovery, Buckeye, and Spiers ("Buckeye Stipulated Entry"). In the Patriarch Stipulated Entry, the parties agreed that Recovery's "right to be paid" by the Buckeye defendants would be "secured by a lien on the property interests [of the Buckeye defendants] described in" lien numbers 12, 13, and 14. (Ex. 3, Patriarch Stipulated Entry at 1.) The Buckeye Stipulated Entry obligated Buckeye and Spiers to make payments toward the judgment from M.C. case No. 2017CVF020734 pursuant to a monthly payment schedule, and provided that Buckeye's and Spiers' "agreements to perform" would be "secured by a lien on the property interests described in [lien numbers 12, 13, and 14]." (Ex. 4, Buckeye Stipulated Entry at 5.) The Buckeye Stipulated Entry granted Recovery "the declarations in ¶¶ 16.2" and "the relief prayed for in ¶ [(B)](2)" of the creditor's bill complaint. (Buckeye Stipulated Entry at 2.) {¶ 8} On February 28, 2019, Patriarch served Buckeye and Recovery with a notice to commence suit on the four mechanic's liens. On March 25, 2019, Recovery filed the complaint in the present case against Patriarch, Brian Beckman, Mark Bucher, KSI Realty Holdings, L.L.C. ("KSI")1 (collectively, "the Patriarch defendants"), the Buckeye defendants, and others, asserting a claim for foreclosure as to 837, 870, and 874 Carpenter Street and a claim for declaratory judgment. Recovery alleged that Buckeye and Spiers failed to make the payments required by the Buckeye Stipulated Entry, and further alleged that Recovery had "a security interest and the right to receive payment on behalf of Buckeye * * * for all of the mechanic's liens at issue, specifically those recorded at [lien numbers 12, 13, and 14]." (Compl. at ¶ 21). On May 3, 2019, Recovery filed a supplemental complaint, asserting a claim for foreclosure as to 684-686, 801, and 976 Carpenter Street, and 598, 627, 765, 769, 781, 792, 839, 860, and 896 Gilbert Street. {¶ 9} On June 3, 2019, the Buckeye defendants filed a counterclaim and a cross- claim for foreclosure of the properties at 837, 870, 874, 684-686, 801, and 976 Carpenter Street, and 598, 627, 765, 769, 781, 792, 839, 860, and 896 Gilbert Street. The Buckeye

1After Buckeye recorded the four mechanic's liens, Beckman purchased the property at 874 Carpenter Street; Bucher purchased the property at 870 Carpenter Street; and KSI purchased the property at 684-686 Carpenter Street. No. 20AP-592 4

defendants alleged they were entitled to payment of the amounts stated in their mechanic's liens from the proceeds of the sales of the properties. {¶ 10} On October 3, 2019, the Patriarch defendants filed a counterclaim against Buckeye and Spiers for slander of title. On October 3, 2019, Patriarch and KSI filed a counterclaim against Recovery, alleging Recovery violated Civ.R. 11 and R.C. 2323.51 by filing the supplemental complaint. Recovery filed a counterclaim to Patriarch's and KSI's counterclaim, asking the court to award it attorney fees and costs associated with responding to the Civ.R. 11 claim. {¶ 11} On December 11, 2019, Patriarch filed an application, pursuant to R.C. 1311.11(C), asking the court to approve alternate security in the form of cash deposits for each of the mechanic's liens. The trial court granted Patriarch's application on December 19, 2019 and ordered Patriarch to submit cash deposits to the Franklin County Clerk of Court in the following amounts: for lien 12 $39,475.85; for lien 13 $39,945.45; for lien 14 $28,758.02; and for lien 19 $251,344.14. The court stated that, upon receipt of the cash deposits, the mechanic's liens would be discharged from the real properties at issue.

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Cite This Page — Counsel Stack

Bluebook (online)
2022 Ohio 1095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recovery-funding-llc-v-beckman-ohioctapp-2022.