Ruschel v. Nestle Holdings, Inc., 89977 (5-1-2008)

2008 Ohio 2035
CourtOhio Court of Appeals
DecidedMay 1, 2008
DocketNos. 89977 and 90500.
StatusUnpublished
Cited by1 cases

This text of 2008 Ohio 2035 (Ruschel v. Nestle Holdings, Inc., 89977 (5-1-2008)) 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
Ruschel v. Nestle Holdings, Inc., 89977 (5-1-2008), 2008 Ohio 2035 (Ohio Ct. App. 2008).

Opinion

JOURNAL ENTRY AND OPINION *Page 3
{¶ 1} This is a consolidated appeal. In Cuyahoga App. No. 89977, plaintiff-appellant, John Ruschel ("Ruschel"), appeals the trial court's decision that granted summary judgment in favor of defendant-appellee, Nestle Holdings, Inc. ("Nestle"), as well as several discretionary rulings. In Cuyahoga App. No. 90500, Ruschel appeals the trial court's order of September 26, 2007 that ordered Ruschel to comply with a previous court order to return certain documents to Nestle. For the reasons that follow, we affirm.

{¶ 2} This action arose following a merger between Nestle and Ralston Purina Company ("Ralston"). The companies entered an "Agreement and Plan of Merger," dated January 15, 2001 (hereafter "merger agreement"), which set forth the terms and conditions of the merger. The merger became effective on December 12, 2001.

{¶ 3} At the time of the merger, Ruschel was a beneficial owner of 1,000 shares of Ralston common stock, held in book-entry (electronic) form. Ruschel claims that payment on his stock was wrongly delayed until December 18, 2001, and that he is entitled to interest thereon, in addition to other relief. His second amended complaint raised claims of breach of contract, unjust enrichment, conversion, and constructive trust.

{¶ 4} Ruschel sought to have the matter certified as a class action on behalf of himself and "[a]ll beneficial or book-entry owners of Ralston Purina Company *Page 4 common stock just before that stock was canceled on December 12, 2001 — where the record owner was Cede Co. as nominee for The Depository Trust Company (DTC)." The trial court never determined class certification as summary judgment was granted to Nestle.

{¶ 5} In moving for summary judgment, Nestle asserted that Ruschel's breach of contract claim was barred by the clear terms of the merger agreement and that Ruschel's ancillary claims also failed. Nestle argued that the merger agreement provided that upon the surrender of a certificate representing company common stock for cancellation, the holder of such certificate would be entitled to receive merger consideration "without interest." Ruschel argued that the "without interest" language applied only to shareholders who possessed actual negotiable stock certificates, and did not apply to those like him who held their shares in book-entry form. He also claimed that the "without interest" language was not meant to apply where the acquiring company failed to make "good funds" available to presenters in a timely fashion, on or after the effective date of the merger.

{¶ 6} Ultimately, the trial court agreed with Nestle and granted summary judgment in its favor, finding that the terms of the merger agreement were clear, that "the no interest provision applies to all stockholders of record," and that there was no breach of contract. The trial court also ruled that Ruschel's ancillary claims were without merit.

{¶ 7} Ruschel filed App. No. 89977, challenging the grant of summary *Page 5 judgment and several discretionary rulings made by the court. One of those discretionary rulings was an order dated February 14, 2006, that instructed Ruschel to return certain documents to Nestle "on or before February 28, 2006."

{¶ 8} After the first appeal was filed, Nestle moved the trial court for an order to enforce the February 14, 2006 order for the return of documents and to place the plaintiff's filings that attached these documents under seal. On September 26, 2007, the trial court ordered Ruschel to comply with its earlier order and instructed that the documents which had been attached to Ruschel's opposition brief be placed under seal. Ruschel filed App. No. 90500, challenging the trial court's jurisdiction to enter this order.

{¶ 9} We address each of the appeals below.

{¶ 10} App. No. 89977

{¶ 11} In this appeal, Ruschel challenges the trial court's grant of summary judgment in Nestle's favor and various discretionary rulings. Ruschel raises seven assignments of error for our review. His first three assignments of error relate to the trial court's summary judgment ruling and provide as follows:

{¶ 12} "1. The trial court erred in granting Nestle's motion for summary judgment."

{¶ 13} "2. The trial court erred in ruling there is no remedy for the delay in paying the cash owed under the merger agreement to Ralston's book-entry *Page 6 shareholders."

{¶ 14} "3. The trial court erred in ignoring that the merger agreement's `without interest' language appears only in connection with the surrender of stock certificates (and only to shareholders whose certificates had to be surrendered physically with a transmittal letter) and in ignoring expert testimony and other evidence that the `without interest' language does not apply to shareholders like plaintiff whose ownership was recorded in electronic (book-entry) form."

{¶ 15} An appellate court reviews a trial court's grant of summary judgment de novo. Grafton v. Ohio Edison Co. (1996), 77 Ohio St.3d 102,105, 1996-Ohio-336, 671 N.E.2d 241. De novo review means that this court uses the same standard that the trial court should have used, and we examine the evidence to determine if, as a matter of law, no genuine issues exist for trial. Brewer v. Cleveland City Schools (1997),122 Ohio App.3d 378, 701 N.E.2d 1023, citing Dupler v. MansfieldJournal (1980), 64 Ohio St.2d 116, 119-120, 413 N.E.2d 1187.

{¶ 16} Summary judgment is appropriate where it appears that (1) there is no genuine issue as to any material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds can come to but one conclusion, and that conclusion is adverse to the party against whom the motion for summary judgment is made, who is entitled to have the evidence construed most strongly in his favor. Harless v.Willis Day Warehousing Co., Inc. (1978), 54 Ohio St.2d 64, 66,375 N.E.2d 46; Civ.R. 56(C). *Page 7

{¶ 17} The burden is on the movant to show that no genuine issue of material fact exists. Id. Conclusory assertions that the nonmovant has no evidence to prove its case are insufficient; the movant must specifically point to evidence contained within the pleadings, depositions, answers to interrogatories, written admissions, affidavits, etc., which affirmatively demonstrate that the nonmovant has no evidence to support its claims. Dresher v. Burt (1996), 75 Ohio St.3d 280,

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2008 Ohio 2035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruschel-v-nestle-holdings-inc-89977-5-1-2008-ohioctapp-2008.