Rieser v. Rieser

947 N.E.2d 222, 191 Ohio App. 3d 616
CourtOhio Court of Appeals
DecidedDecember 17, 2010
DocketNo. 23853
StatusPublished
Cited by6 cases

This text of 947 N.E.2d 222 (Rieser v. Rieser) 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
Rieser v. Rieser, 947 N.E.2d 222, 191 Ohio App. 3d 616 (Ohio Ct. App. 2010).

Opinion

Grady, Judge.

{¶ 1} This is an appeal from a final order of the General Division of the Montgomery County Court of Common Pleas that prohibited an executor of a decedent’s estate from prosecuting an action in federal court to recover assets allegedly belonging to the estate. The trial court held that the executor was prohibited from proceeding in the federal action by a prior settlement agreement that the court had approved. We find that the general division lacked jurisdiction to grant that relief because it directs and/or controls the conduct of an executor, which per R.C. 2101.24(A)(1) is within the exclusive jurisdiction of the probate court.

{¶ 2} Ruth Day died in 2001. In 2004, an action was commenced in the general division of the court of common pleas requesting a declaration concerning disposition of the assets of a trust that Ruth Day and her husband, Louis D. Day, who predeceased her, had established. Ruth Day’s three daughters, Diana R. Kallar, Carole Ann Disher, and Kathleen Perkins, who are the beneficiaries of the trust, were parties to that action. Cotrustees John Paul Rieser and Michael Disher and the Disher Furniture Company were also parties.

{¶ 3} Following mediation, the parties to the declaratory-judgment action reached an agreement settling their claims. The general division court approved the agreement and incorporated it into the court’s final order, which was journalized on December 30, 2005. The order states that the court “retain[s] jurisdiction of any further matters that may be related to or arise out of this litigation.”

[618]*618{¶ 4} The assets of Ruth Day’s trust were distributed among her three daughters pursuant to the terms of the settlement agreement. Ruth Day had also executed a will that provided for distribution to the trust of any other assets Ruth Day owned at her death. Apparently, there were no other assets, and because of that Ruth Day’s will was not filed for probate at the time the settlement agreement regarding her trust was concluded.

{¶ 5} On April 30, 2007, Kathleen Perkins, one of Ruth Day’s three daughters, filed an application in the Probate Court of Montgomery County to probate Ruth Day’s will. On June 8, 2007, a magistrate of that court recommended that Kathleen Perkins be appointed executor of the estate of Ruth Day. Carole Ann Disher, another daughter, filed objections, claiming that she lacked notice of Kathleen Perkins’s application. The probate court overruled the objection.

{¶ 6} Carole Ann Disher also moved to dismiss the probate action, contending that all matters to be decided therein had been finally resolved by the 2005 settlement agreement in the general division action, and that Kathleen Perkins was bound by that agreement. The motion pointed to the fact that Kathleen Perkins signed the 2005 settlement agreement both individually and as executor of the estate of Ruth Day. The probate court found that the settlement agreement that Kathleen Perkins signed in 2005 could not bind the estate because Kathleen Perkins was not then the executor of the estate of Ruth Day. The court appointed Kathleen Perkins executor of the estate of Ruth Day on the day the motion was denied, February 26, 2008.

{¶ 7} While the objections were pending in the probate court, on September 6, 2007, Kathleen Perkins commenced an action in the United States district court against the following persons: John Paul Rieser, individually and as cotrustee of the trust established by Ruth Day and her late husband, Louis D. Day; Michael Disher, also individually and as cotrustee; Rieser and Marx, attorneys; Carole Disher; and Disher Furniture Company. The complaint pleads RICO violations and several common-law tort claims for relief on behalf of the estate of Ruth M. Day, seeking to recover assets allegedly belonging to the estate.

{¶ 8} On August 7, 2008, John Paul Rieser and Michael B. Disher filed a motion in the general division of the court of common pleas, asking that court to enforce the 2005 settlement agreement and to prohibit Kathleen Perkins from proceeding in the federal litigation she had commenced as executor of the estate of Ruth Day. The movants argued that the allegations in the federal action were on claims concerning which the parties to the settlement agreement had executed mutual releases and were therefore matters “relating to or arising out of [the] litigation,” which the general division retained jurisdiction to determine.

{¶ 9} The motion was referred to a magistrate, who filed a decision overruling the motion. The magistrate reasoned that because the relief requested involved [619]*619matters statutorily committed to the exclusive jurisdiction of the probate court, the general division, notwithstanding its reservation of jurisdiction, lacked authority to grant the relief requested.

{¶ 10} The movants filed timely objections to the magistrate’s decision. The general division sustained the objections. The court found that the claims for relief in the federal action “directly arise out of the litigation resolved in this Court pursuant to the Order” adopting the settlement agreement and that the parties to the settlement agreement had therein released each other “from the beginning of the world to the date of this Agreement” from the claims alleged in the federal litigation. Because the court had expressly “retain[ed] jurisdiction of any further matters that may be related to or arise out of this litigation,” the court prohibited Kathleen Perkins from proceeding in the federal litigation. Perkins filed a notice of appeal from that final order.

SECOND ASSIGNMENT OF ERROR

{¶ 11} “The court of common pleas erred when it failed to recognize that the probate court had ruled on plaintiffs’ issue to enforce the settlement agreement.”

{¶ 12} Before filing their motion in the general division of the court of common pleas, appellees sought relief in the probate court, which had appointed Kathleen Perkins executor of the estate of Ruth Day in 2007. The probate court denied appellee’s request to prohibit Kathleen Perkins from proceeding as executor of the estate of Ruth Day in the federal action. Perkins contends that because the probate court previously declined a similar request by appellees to prohibit the executor from proceeding in the federal action, that prior judgment of the probate court bars the subsequent motion the appellees filed in the general division, under the doctrine of res judicata.

{¶ 13} “A valid, final judgment rendered upon the merits bars all subsequent actions based upon any claim arising out of the transaction or occurrence that was the subject matter of the previous action.” Grava v. Parkman Twp. (1995), 73 Ohio St.3d 379, 653 N.E.2d 226. Even were the same claims involved in both actions, which is disputed, the probate court’s decision would not bar the motion to enforce the settlement agreement that appellees filed in the general division action. That action is one in which a final judgment was entered in 2005 by the general division. The general division action was therefore not subsequent to the probate court action that was commenced in 2007, when the will of Ruth Day was admitted for probate. Res judicata therefore does not bar the application that was made in the general division action.

{¶ 14} If the general division’s 2005 order adopting the settlement agreement creates a res judicata bar, on this record it can apply only to bar the federal action.

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Cite This Page — Counsel Stack

Bluebook (online)
947 N.E.2d 222, 191 Ohio App. 3d 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rieser-v-rieser-ohioctapp-2010.