Thrasher, Dinsmore & Colan, LPA v. Ross

2024 Ohio 1594
Ohio Court of Appeals·Decided April 25, 2024·No. 113298·Published·Cited by 1 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

THRASHER DINSMORE & DOLAN, : LPA, :

Plaintiff-Appellee,

: No. 113298 v.

WILLIAM J. ROSS, ET AL., :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: April 25, 2024

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-22-967230

Appearances:

Thrasher Dinsmore & Dolan, LPA, Samuel T. O’Leary, and Christopher R. Elko, for appellee.

Arnold, Gruber & Haren, LTD, Jill C. McQueen, and Jon A. Troyer, for appellants.

KATHLEEN ANN KEOUGH, A.J.:

Defendants-appellants, William J. Ross (“Ross”), AMG Marine Holdings, LLC, and Fairport Harbor Holdings, Ltd. (collectively, “appellants”), appeal from the trial court’s judgment granting the motion for summary judgment of plaintiff-appellee, Thrasher Dinsmore & Dolan, LPA (“TDD”). For the reasons that follow, we affirm. I. Background In August 2022, TDD filed suit against appellants regarding unpaid attorney fees for legal services it rendered to appellants in various matters. TDD’s complaint asserted claims for breach of contract, unjust enrichment, promissory estoppel, and action on an account. Attached as Exhibit A to TDD’s complaint was a “Billing Summary” that TDD emailed to Ross on July 26, 2022. The summary identified the separate amounts due on each of six invoices dated from February 25, 2020, to November 25, 2020, and reflected a total balance due of $59,679.70. Appellants filed an answer denying the allegations of the complaint.

TDD subsequently filed a motion for summary judgment regarding each of its claims. TDD supported its motion with the affidavit of Ezio A. Listati (“Listati”), who averred that he is a partner with TDD, and that on May 21, 2018, Ross signed an engagement letter retaining TDD in the matter of PurUS Health, LLC, et al. v. Good Nutrition, et al., Cuyahoga C.P. No. CV-15-851394.1 Listati further averred that in November 2018, Ross began consulting with TDD regarding other legal issues that were impacting him and his companies.

Listati averred that in early February 2020, when “those issues boiled over,” at Ross’s request, TDD attorneys began representing appellants in four

1 A copy of the engagement letter was attached to Listati’s affidavit.

lawsuits: (1) Ohio Dev. Servs. v. Hanover Marine LLC, et al., Lake C.P. No. CV-16- 02109 (the “cognovit judgment lawsuit”); (2) Hanover Marine, LLC, et al. v. Fairport Harbor Holdings, Ltd., Cuyahoga C.P. No. CV-17-879490 (the “Cuyahoga County lawsuit”); (3) TLC Yachts, LLC v. Fairport Harbor Holdings, Ltd., et al., No. 1:20-cv-00311-JG (E.D.Ohio) (the “federal lawsuit”); and (4) TLC Yachts, LLC v. Fairport Harbor Holdings, Ltd., et al., Lake C.P. No. CV-20-00407 (the “Lake County lawsuit”).

Listati averred that approximately one month later, on March 2, 2020, TDD sent Ross an engagement letter related to TDD’s representation of appellants in three of the four lawsuits (the Lake County lawsuit was filed on March 5, 2020, two days after the engagement letter was sent). On March 4, 2020, the federal lawsuit was dismissed without prejudice. On March 18, 2020, the cognovit judgment lawsuit was consolidated with the Lake County lawsuit, and on March 25, 2020, the court in the Cuyahoga County suit determined that it was without jurisdiction to proceed. Thus, according to Listati, as of March 25, 2020, the only remaining pending matter was the Lake County lawsuit.

Listati averred that TDD represented appellants in the Lake County matter until March 4, 2020, when Richard Selby (”Selby”), an attorney with Dworkin & Bernstein, began representing AMG Marine Holdings, LLC. TDD continued to represent Ross and Fairport Harbor Holdings, Ltd.

Listati averred that throughout TDD’s representation of appellants, Ross repeatedly promised to execute and return the March 3, 2020 engagement letter to TDD. Listati further averred that prior to a March 31, 2020 hearing in the Lake County suit, he and Selby met with Ross at Selby’s office. At that meeting, when Listati again asked Ross to sign the engagement letter, Ross “responded by stating we should not worry because he ‘always paid his lawyers’ and would execute said engagement letter, which he never executed.” Listati averred that based on the initial May 2018 engagement letter and Ross’s repeated promises, TDD continued to perform legal services for appellants until April 22, 2020, when it withdrew from any further representation of appellants. The termination letter, which was attached as an exhibit to Listati’s affidavit, informed Ross that one of the reasons TDD decided to terminate its representation was because “[r]egarding the Fairport Harbor/AMG matter that the firm handled for you in Lake County, you owe approximately $60,000 for payment and fees which are seriously in arrears and over 120 days.”

Also attached to TDD’s motion for summary judgment were printouts of emails between TDD and Ross from March 3, 2020, to March 24, 2020. The emails reflected that on March 3, 2020, TDD sent Ross the engagement letter regarding the three cases and asked him to sign and return the executed letter. On March 17, 2020, TDD attorney Leo Spellacy (“Spellacy”) again asked Ross to execute and return the engagement letter, telling him, “We need the engagement letter signed. We have put a significant amount of work in on this matter. Please send this back to me today.” On March 24, 2020, Spellacy again emailed Ross and asked him to sign the engagement letter. Later that day, Ross replied, “Sorry about the delay. Just returned home. I participated in a call with Ezio [Listati] and Ric [Selby] this afternoon. Ezio was pressed for time so the call was a bit hurried. I would like to discuss the case with you in the morning. Anytime works for me.” Spellacy responded, “Sounds good. I know you have a lot going on. Just a housekeeping item.”

Also attached to TDD’s motion for summary judgment were Listati’s calendar entries from October 17, 2019, through March 31, 2020, reflecting meetings with Ross regarding the Lake County lawsuit, conference calls with Ross, the drafting of a show cause motion, and Listati’s appearance on March 31, 2020, at an oral hearing in the Lake County Common Pleas Court.

In its motion for summary judgment, TDD argued that it was entitled to summary judgment on its claim for breach of contract because the May 2018 engagement letter was an agreement for TDD to provide legal services for the matter listed on the letter, as well as “all future matters.” TDD argued that it fulfilled its contractual obligation pursuant to the agreement by providing legal services for appellants, and appellants breached the agreement by not paying for those services, thereby damaging TDD.

Alternatively, TDD argued that it was entitled to summary judgment on its claim for unjust enrichment because it conferred a benefit on appellants by performing legal services for them, appellants knew that TDD was providing the services, and appellants’ refusal to pay for those services would allow them to unjustly retain that benefit.

Regarding its promissory estoppel claim, TDD argued that Ross repeatedly promised TDD attorneys Listati and Spellacy that he would sign the second engagement letter and pay TDD in full for all legal services TDD rendered on appellants’ behalf, and that in light of its past relationship with Ross, a former attorney, TDD’s reliance on Ross’s repeated promises to pay was reasonable. TDD argued that it had suffered a financial loss as a result of its detrimental reliance and was therefore entitled to judgment on its promissory estoppel claim.

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