Riley v. Clark, Unpublished Decision (11-10-1999)

CourtOhio Court of Appeals
DecidedNovember 10, 1999
DocketCase No. 98CA2629.
StatusUnpublished

This text of Riley v. Clark, Unpublished Decision (11-10-1999) (Riley v. Clark, Unpublished Decision (11-10-1999)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Riley v. Clark, Unpublished Decision (11-10-1999), (Ohio Ct. App. 1999).

Opinion

DECISION AND JUDGMENT ENTRY
Kenton and Rosanna Riley appeal the Scioto County Court of Common Pleas' dismissal of their complaint against the law firm of Kimble, Stevens, Young, Clark, Spears Rodeheffer ("the firm") for failure to obtain service of process upon the firm. The Rileys assert that they served the firm by serving four of its individual partners. We agree, because serving a partner effectively serves the partnership pursuant to Civ.R. 4.2(G). Additionally, the Rileys appeal the trial court's entry of summary judgment in favor of Roger Clark and Stephen Rodeheffer in their individual capacities. The Rileys assert that genuine issues of material fact exist as to whether Clark and Rodeheffer committed legal malpractice. We disagree as to Rodeheffer, because the Rileys failed to point to evidence raising a genuine issue of material fact as to whether Rodeheffer established an attorney-client relationship with the Rileys, and therefore reasonable minds could only conclude that Rodeheffer did not commit legal malpractice. We agree with the Rileys' assignment of error as to Clark, because the Rileys pointed to evidence raising genuine issues of material fact regarding whether Clark represented them, breached his duty as their attorney, and proximately caused them harm. We further find, under the circumstances of this case, that the Rileys' allegations of malpractice are within the realm of understanding of a lay jury, and therefore the Rileys were not required to present expert testimony to avoid summary judgment.

Accordingly, we reverse in part and affirm in part the judgment of the trial court.

I.
The Rileys retained Clark and the firm in various legal matters over a period of more than twenty years. When Kenton Riley's mother passed away in 1991, the Rileys' engaged Clark as the attorney of record for the probate of her estate. The entry approving and settling the estate account was entered in the spring of 1993.

Also during the spring of 1993, Clark approached the Rileys to suggest that they purchase Premium Tours, Inc., dba The Cruise and Travel Shoppe ("the Travel Shoppe"), a local travel agency. Clark did not inform the Rileys that he represented the Travel Shoppe or that he owned forty percent of the Travel Shoppe's stock. Martha Graf, whom Clark referred to as the owner of the Travel Shoppe, owned only forty percent of the Travel Shoppe's stock. Steven Rodeheffer and Ralph Stevens, partners in the firm, owned the remaining shares.

During negotiations for purchase of the Travel Shoppe, the Rileys spoke with Clark frequently. Clark gave the Rileys an accountant's compilations of the Travel Shoppe's assets and liabilities and explained the Travel Shoppe's expected future income. Clark did not mention that the accounts receivable listed on the accountant's report consisted primarily of money that the corporate officers, including Clark, owed to the Travel Shoppe. Clark also did not inform the Rileys that an audit of the Travel Shoppe by the Airline Reporting Corporation ("ARC") was pending and that an ARC audit during the past year resulted in assessments for misappropriated monies, missing tickets, bad debts, and missing traveler's checks. Clark did not inform the Rileys that he was the guarantor on a business loan issued to the Travel Shoppe or that a tax lien encumbered all of the Travel Shoppe's assets.

The Rileys retained Clark to prepare articles of incorporation for Kenros, Inc., dba The Cruise and Travel Shoppe, a new corporation wholly owned by the Rileys and created for the purpose of running the Travel Shoppe. In the Rileys' presence, Clark asked Rodeheffer to sign as the statutory agent for Kenros. The Rileys paid the firm for filing the articles. Clark advised the Rileys that a title search was necessary before Kenros could purchase the Travel Shoppe, firm partner Jack Young conducted a title search, and the firm billed and accepted payment from the Rileys for the title search. Additionally, Clark prepared the sales agreement for the sale of the Travel Shoppe to the Rileys.

The Rileys paid one hundred thousand dollars for the Travel Shoppe in July 1993. Shortly thereafter, the Rileys learned of the Travel Shoppe's indebtedness, but not of Clark's connection to it. Clark advised the Rileys regarding their obligations with respect to the Travel Shoppe's debts. Clark also represented the Rileys in their application for ownership of a travel agency required by the ARC. Clark informed the Riley's that the ARC required an increase in their insurance bond because they were new owners. The Rileys paid for the increase and granted Clark power of attorney to obtain the bond insurance. In fact, the ARC required the bond increase not because the Rileys were new owners, but because of the Travel Shoppe's outstanding obligations.

The Riley's incurred significant expense in attempting to pay the creditors of the Travel Shoppe. By March 1994, the Rileys were no longer able to meet the monthly payments on their business loan, and the bank foreclosed. To prevent the sale of their home and land after foreclosure, the Rileys were forced to sell the timber on their land and refinance. The Rileys estimate that they lost a total of approximately two hundred-fifty thousand dollars in connection with their purchase of the Travel Shoppe.

The Rileys and Kenros (hereinafter "the Rileys") filed a complaint for legal malpractice, naming Clark, Rodeheffer, Young, Stevens, and the firm as defendants "in their capacities as individuals and/or partners, individually, jointly and severally." The Rileys attempted to serve all of the defendants by certified mail at the business office of the firm. Only Clark and Rodeheffer accepted service. The Rileys later served Young and Stevens, who were no longer with the firm, at their respective residences. The postal service returned the complaint addressed to the firm with the notation "attempted not known, no longer in existence." The Rileys did not attempt to serve the firm a second time.

Clark, Rodeheffer, Young and Stevens each filed for summary judgment. Clark and Rodeheffer attached affidavits to their motions in which they averred that they did not represent the Rileys and that their actions in dealing with the Rileys did not fall below the professional standard of care. The trial court entered summary judgment in favor of each of the individual defendants. The Rileys appealed the judgments in favor of Clark and Rodeheffer, but we dismissed for lack of a final, appealable order. The trial court then dismissed the complaint against the firm for failure to obtain service of process. The Rileys now appeal the judgments in favor of the firm, Clark and Rodeheffer, and assert the following four assignments of error:

I. The trial court's dismissal with prejudice for failure of service is in error.

II. The trial court's dismissal for failure to prosecute pursuant to Civil Rule 41(B)(1) is in error.

III. Stephen C. Rodeheffer failed to meet his burden of proof that no genuine issue exists as to any material fact, in support of his motion for summary judgment pursuant to Civil Rule 56(B) and Dresher v. Burt.

IV. Roger L. Clark failed to meet his burden of proof that no genuine issue exists as to any material fact, in support of his motion for summary judgment pursuant to Civil Rule 56(B) and Dresher v. Burt.

II.
In their first and second assignments of error, the Rileys assert that the trial court erred by dismissing their action against the firm for failure to obtain service and failure to prosecute.

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Bluebook (online)
Riley v. Clark, Unpublished Decision (11-10-1999), Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-clark-unpublished-decision-11-10-1999-ohioctapp-1999.