Rimmer v. Citifinancial, Inc.

2013 Ohio 5732
CourtOhio Court of Appeals
DecidedDecember 26, 2013
Docket99760
StatusPublished
Cited by5 cases

This text of 2013 Ohio 5732 (Rimmer v. Citifinancial, Inc.) 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
Rimmer v. Citifinancial, Inc., 2013 Ohio 5732 (Ohio Ct. App. 2013).

Opinion

[Cite as Rimmer v. Citifinancial, Inc., 2013-Ohio-5732.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 99760

KAREN RIMMER PLAINTIFF-APPELLANT

vs.

CITIFINANCIAL, INC. DEFENDANT-APPELLEE

JUDGMENT: AFFIRMED IN PART, REVERSED IN PART, AND REMANDED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-564493

BEFORE: McCormack, J., Celebrezze, P.J., and Jones, J. RELEASED AND JOURNALIZED: December 26, 2013 ATTORNEYS FOR APPELLANT

Brian Ruschel 925 Euclid Avenue Suite 660 Cleveland, OH 44115

Patrick J. Perotti Dworken & Bernstein Co., L.P.A. 60 South Park Place Painesville, OH 44077

ATTORNEYS FOR APPELLEE

James L. Defeo Kip T. Bollin Thompson Hine L.L.P. 3900 Key Center 127 Public Square Cleveland, OH 44114 TIM McCORMACK, J.: {¶1} This is the second appeal by Karen Rimmer in her attempt to certify a class

for her claim against Citifinancial, Inc. (“Citi”) regarding its failure to timely record the

satisfaction of a mortgage as statutorily required. In the first appeal, this court reversed

the trial court’s decision denying class certification and held that the class should have

been certified. Citi appealed our decision to the Supreme Court of Ohio.

{¶2} While the appeal was pending, the Supreme Court of Ohio issued Alexander

v. Wells Fargo Fin. Ohio 1, Inc., 122 Ohio St.3d 341, 2009-Ohio-2962, 911 N.E.2d 286,

which held that an arbitration agreement is applicable to statutory mortgage satisfaction

claims. The Supreme Court of Ohio then remanded the instant cause to this court for

further consideration in light of its Alexander decision. We, in turn, remanded to the

trial court to apply Alexander.

{¶3} Applying Alexander, the trial court redefined the class, excluding from the

class those who had an arbitration clause in their loan agreements. Rimmer appealed

from the trial court’s decision, and the matter is again before us.

Substantive Facts and Procedural History

{¶4} Thirteen years ago, in 2000, Rimmer executed a note and security

agreement with Bank of Yorba Linda for $5,000. Her loan was subsequently assigned to

Associates Financial Services, Inc, which was merged with Citi several months later, and

Citi became the holder of Rimmer’s mortgage. On April 10, 2001, Rimmer paid off her

loan in full. On August 16, 2001, the satisfaction of the subject mortgage was recorded

with the Cuyahoga County Recorder. {¶5} Four years later, on June 6, 2005, Rimmer filed a class action complaint

against Citi, alleging Citi failed to file an entry of satisfaction of mortgage with the

county recorder within 90 days of full payment of the mortgage, in violation of R.C.

5301.36. Rimmer sought automatic damages ($250), interest, and costs as allowed

under R.C. 5301.36(C).

{¶6} On January 25, 2006, Rimmer filed a motion for class certification seeking

to represent a class of all persons who, from March 8, 1999, paid residential mortgages in

full but for whom Citi did not file an entry of satisfaction of mortgage with the county

recorder within 90 days of loan payoff.

{¶7} Rimmer moved for partial summary judgment as to her individual claim

against Citi. Citi also moved for summary judgment, alleging that it mailed within the

statutory time the entry of satisfaction, but the recorder failed to timely process the entry.

{¶8} The trial court granted summary judgment in favor of Rimmer on her

individual claim. The court, however, denied her motion for class certification, without

providing an analysis.

{¶9} Rimmer appealed the trial court’s denial of class certification. On appeal,

we affirmed the summary judgment in favor of Rimmer on her individual claim, rejecting

Citi’s claim that it timely processed Rimmer’s release and was entitled to a presumption

of timely delivery. Rimmer v. Citifinancial, 8th Dist. Cuyahoga No. 89407,

2008-Ohio-1814. {¶10} Applying the requirements for class certification, we reversed the trial

court’s decision denying class certification. The seven findings a court must make

before certifying a class pursuant to Civ.R. 23 are: (1) an identifiable class must exist and

the definition of the class must be unambiguous; (2) the named representatives must be

members of the class; (3) the class must be so numerous that joinder of all the members is

impracticable (numerosity); (4) there must be questions of law or fact common to the

class (commonality); (5) the claims or defenses of the representative parties must be

typical of the claims or defenses of the class (typicality); (6) the representative parties

must fairly and adequately protect the interests of the class (adequacy); and (7) questions

of law or fact common to the class predominate over any questions affecting only

individual members and that a class action is superior to other available methods for the

fair and efficient adjudication of the controversy. Rimmer at ¶ 23, citing Hamilton v.

Ohio Savs. Bank, 82 Ohio St.3d 67, 79-80, 694 N.E.2d 442 (1998).

{¶11} This court determined that Rimmer met all seven requirements under Civ.R.

23. She has defined an identifiable and manageable class; a question of law common to

all members of the class predominates over any individual legal issues that may arise; and

a single adjudication as a class action is the most efficient and fair manner by which to

resolve the matter. Rimmer at ¶ 30.

{¶12} Citi appealed this court’s decision to the Supreme Court of Ohio. The

court remanded the case to this court for further consideration in light of its decision in

Alexander, 122 Ohio St.3d 341, 2009-Ohio-2962, 911 N.E.2d 286. This court, in turn, remanded to the trial court to apply Alexander. Upon remand, the trial court issued a

decision certifying the class but excluded individuals who had an arbitration agreement in

their loan agreements.

{¶13} Rimmer now appeals from the trial court’s judgment. She assigns two

errors for our review. The first assignment of error states: “The trial court erred in

denying certification for most of the class sought to be certified by excluding over 90% of

mortgagors who have the same claims as the named plaintiff.”

{¶14} This is the main issue in this second appeal — whether individuals whose

loan agreements contained an arbitration clause should be excluded from the class.

Arbitration Clause in the Loan Agreements

{¶15} According to Citi’s records, from March 8, 1999 through December 31,

2005, a total of 98,206 loans originated or assumed by Citi were paid off. Out of these

loan agreements, all but 5,254 (5.3 percent) contained an arbitration clause. Rimmer is

one of the 5,254 mortgagors whose loan agreements did not have an arbitration clause.

{¶16} In the first appeal, although this court noted some of the loan agreements

contained an arbitration clause — unlike Rimmer’s contract — this court nonetheless

determined that Citi’s defense based on the existence of the arbitration clause for these

class members did not preclude their membership in the class. This court stated that

“[a]lthough there may be some different defenses and issues presented with regard to

those members, they are ‘subordinate to the far larger common defense that [Citi] asserts

against the Complaint.’” (Citation omitted.) Rimmer, 8th Dist. Cuyahoga No.

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