Shalash v. Shalash

2013 Ohio 5064
CourtOhio Court of Appeals
DecidedNovember 7, 2013
Docket12 CAF 11 0079
StatusPublished
Cited by6 cases

This text of 2013 Ohio 5064 (Shalash v. Shalash) 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
Shalash v. Shalash, 2013 Ohio 5064 (Ohio Ct. App. 2013).

Opinion

[Cite as Shalash v. Shalash, 2013-Ohio-5064.]

COURT OF APPEALS DELAWARE COUNTY, OHIO FIFTH APPELLATE DISTRICT

IMAN SHALASH : JUDGES: : Plaintiff-Appellee : Hon. William B. Hoffman, P.J. : Hon. John W. Wise, J. -vs- : Hon. Patricia A. Delaney, J. : HATEM SHALASH, ET AL. : Case No. 12 CAF 11 0079 : Defendants-Appellees : : and : : SATSHA EXPRESS, INC. AND : FATHEIH SHALASH : : Defendants-Appellants : OPINION

CHARACTER OF PROCEEDING: Appeal from the Delaware County Court of Common Pleas, Domestic Relations Division, Case No. 10 DR A 03 0140

JUDGMENT: REVERSED AND REMANDED

DATE OF JUDGMENT ENTRY: November 7, 2013

APPEARANCES:

For Plaintiff-Appellee: For Defendants-Appellants:

ROBERT C. PETTY RONALD B. NOGA 270 Bradenton Ave. 1010 Old Henderson Road, Suite 1 Dublin, OH 43017 Columbus, OH 43220 Delaware County, Case No. 12 CAF 11 0079 2

Delaney, J.

{¶1} Defendants-Appellants Satsha Express, Inc. and Fatheih Shalash appeal

the May 1, 2012 and October 18, 2012 judgment entries of the Delaware County Court

of Common Pleas, Domestic Relations Division.

FACTS AND PROCEDURAL HISTORY

{¶2} On March 16, 2010, Plaintiff-Appellee Iman Shalash filed a complaint for

divorce against her husband, Defendant Hatem Shalash. Wife also served a restraining

order upon Husband restraining him from selling, encumbering, disposing, or in any

manner secreting assets of the marriage.

{¶3} Wife named 1925 Express Business, Inc., a corporation owned by

Husband, as a defendant in the complaint. In 2007, the corporation purchased the

Express Drive Thru located in Columbus, Ohio for approximately $200,000. On March

23, 2010, Husband executed a purchase agreement to sell 1925 Express Business, Inc.

for approximately $55,000 to Husband’s mother, Defendant-Appellant Fatheih Shalash

(“Mother”). Mother formed a corporation named Satsha Express, Inc. At the time of the

sale, 1925 Express Business, Inc. had significant sales tax assessments.

{¶4} On October 8, 2011, Wife filed an amended complaint and named

Defendant-Appellant Satsha Express, Inc. as a defendant.

{¶5} The trial court held a trial on the complaint for divorce in November 2011.

Husband’s counsel withdrew from the action and the proceedings were stayed.

{¶6} On May 1, 2012, the trial court sua sponte ordered it was necessary for

Mother to be joined as a defendant in the action. The May 1, 2012 judgment entry

states that based on testimony and evidence garnered during the resolution of pre-trial Delaware County, Case No. 12 CAF 11 0079 3

motions, the trial court determined the sale of the 1925 Express Business, Inc. was a

sham transaction to eliminate a marital asset. The trial court stated that in order to

properly consider 1925 Express Business, Inc. as a marital asset, the transaction

between Husband and his Mother must be vacated.

{¶7} Trial resumed on June 4, 2012. Mother and Husband testified as to the

transaction to sell 1925 Express Business, Inc.

{¶8} On June 11, 2012, the trial court issued a judgment entry finding the

business transaction between Husband and his Mother to purchase 1925 Express

Business, Inc. was a sham transaction. The trial court found the business now known

as Satsha Express was a marital asset of Husband and Wife. The trial court ordered

Mother to hold the business in a constructive trust for the parties.

{¶9} The decree of divorce was filed on October 18, 2012. The trial court

found Husband engaged in financial misconduct. The trial court made a distributive

award and assigned all marital debt to Husband. Husband did not appeal the October

18, 2012 decree of divorce.

{¶10} In a separate judgment entry issued on October 18, 2012, the trial court

found Husband’s transaction to sell 1925 Express Business, Inc. to Mother was a sham

transaction. Effective November 1, 2012, Mother was ordered to transfer the business

entity known as Satsha Express, Inc. to Wife. The transfer included all equipment,

fixtures, inventory, and rights to existing liquor permits, but not any debts or liabilities.

Wife was solely responsible for running the business, but the trial court granted

Husband 30% of the net profits of which the sales tax assessments were to be paid. Delaware County, Case No. 12 CAF 11 0079 4

{¶11} Mother and Satsha Express now appeal the May 1, 2012 and October 18,

2012 judgment entries.

ASSIGNMENTS OF ERROR

{¶12} Mother and Satsha Express raise three Assignments of Error:

{¶13} “I. THE DOMESTIC RELATIONS COURT’S ORDER INVALIDATING THE

SALE OF THE BUSINESS 1925 EXPRESS, INC. TO SATSHA EXPRESS, INC. WAS

OUTSIDE OF THE SUBJECT MATTER JURISDICTION OF THE DIVISION OF

DOMESTIC RELATIONS AS IT DETERMINES A COLLATERAL CLAIM AND THE

RIGHTS OF A THIRD PARTY.

{¶14} “II. THE TRIAL COURT ERRED IN DETERMINING THE TRANSFER OF

BUSINESS ASSETS FROM 1925 EXPRESS, INC. TO SATSHA EXPRESS, INC. WAS

A SHAM TRANSACTION.

{¶15} “III. THE TRIAL COURT LACKED JURISDICTION TO ORDER A

TRANSFER OF LIQUOR PERMITS FROM SATSHA EXPRESS, INC. TO THE

APPELLEE AS THAT AUTHORITY LIES SOLELY WITH THE COURT OF COMMON

PLEAS OF FRANKLIN COUNTY.”

ANALYSIS

I. and II.

{¶16} We consider the first and second Assignments of Error of Mother and

Satsha Express together because the resolution of the Assignments of Error requires an

interrelated analysis. In the first Assignment of Error, Mother and Satsha Express argue

the trial court went beyond its subject matter jurisdiction when it vacated the transaction

to sell 1925 Express Business, Inc. to Mother. Mother and Satsha Express argue in the Delaware County, Case No. 12 CAF 11 0079 5

second Assignment of Error the trial court abused its discretion in finding the sale of

1925 Express Business, Inc. to Mother was a sham transaction.

{¶17} In this case, the trial court determined the evidence demonstrated 1925

Express Business, Inc. was a marital asset. The trial court then found the sale of the

business by Husband to Mother was a sham transaction and ordered Mother to return

the business to Wife. Mother and Satsha Express argue the trial court exceeded its

jurisdiction as a court of domestic relations in making any determination as to Mother

and Satsha Express. We agree, in part.

Husband’s and Wife’s Marital Property

{¶18} R.C. 3105.011 provides:

The court of common pleas including divisions of courts of domestic

relations, has full equitable powers and jurisdiction appropriate to the

determination of all domestic relations matters. This section is not a

determination by the general assembly that such equitable powers and

jurisdiction do not exist with respect to any such matter.

{¶19} The Eighth District Court of Appeals held, in relevant part, that R.C.

3105.011, “limits the jurisdiction of the domestic relations [court] to the determination of

domestic relations matters. Any collateral claims must be brought in a separate action

in the appropriate court or division when the claim involves the determination of the

rights of a third-party.” Lisboa v. Karner, 167 Ohio App.3d 359, 2006-Ohio-3024, 855

N.E.2d 136 (8th Dist.).

{¶20} The Eleventh District Court of Appeals, relying upon Lisboa, held in

Mitchell v. Mitchell, 11th Dist. Portage No. 2007-P-0023, 2008-Ohio-833, ¶ 63: Delaware County, Case No. 12 CAF 11 0079 6

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