United Fairlawn, Inc. v. Hpa Partners

589 N.E.2d 1344, 68 Ohio App. 3d 777, 7 Ohio App. Unrep. 375, 1990 Ohio App. LEXIS 4667
CourtOhio Court of Appeals
DecidedOctober 17, 1990
DocketNo. 14571.
StatusPublished
Cited by4 cases

This text of 589 N.E.2d 1344 (United Fairlawn, Inc. v. Hpa Partners) 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
United Fairlawn, Inc. v. Hpa Partners, 589 N.E.2d 1344, 68 Ohio App. 3d 777, 7 Ohio App. Unrep. 375, 1990 Ohio App. LEXIS 4667 (Ohio Ct. App. 1990).

Opinions

CACIOPPO, J.

Plaintiff-appellant, United Fairlawn, Inc (United), appeals a court of common pleas order vacating a default judgment against defendant-appellee, HPA Partners (HPA), a New York partnership. United maintains that the trial court abused its discretion in this regard since HPA had been duly served with summons at its usual place of business pursuant to Civ. R. 4.2(7). We disagree and affirm.

Facts

On September 8, 1989, United filed its complaint against HPA in the court of common pleas alleging breach of contract. The underlying agreement for the sale of motel property recited HPA's business address as:

"c/o Oppenheimer Properties, Inc
Oppenheimer Tower
World Financial Center
New York, NY 10281"

The notice provision of the contract required that all correspondences to HPA be delivered to this address with a copy to:

"The Law Offices of Robert L. Howard
275 Madison Ave. #3500
New York, NY 10016
Attention: Anthony v. Labozzetta, Esq."

The caption of the complaint, however, denotes HPA's address as:

"c/o Oppenheimer Properties Inc
One New York Plaza
New York, NY 10281"

On September 19, 1989, a summons and copy of the complaint was issued to HPA at the New York Plaza address via certified mail. Three days later the envelope was delivered and a return receipt was signed by "R. McClain". When HPA failed to plead or otherwise respond within twenty-eight days, United moved for default judgment pursuant to Civ. R. 55. The motion was granted on November 13, 1989.

Once United proceeded to execute its judgment, HPA secured local counsel and moved to vacate the entry. An affidavit of an HPA Vice President, Dawn M. Ragan (Ragan), dated February 9, 1990, was submitted stating that the partnership had not used the New York Plaza address for three and one-half years. She identified the Oppenheimer Tower address as their proper location. R. McClain, she claimed, was not an employee of HPA. The partnership had neither actual notice nor knowledge of the Ohio lawsuit until the initiation of garnishment proceedings by her account. An affidavit of attorney Robert L. Howard was also presented maintaining that he had not received notice of the action either, until United sent him a copy of the complaint after default judgment had been entered.

United opposed the motion to vacate and offered an affidavit of one of its officers, Daniel J. Slavin (Slavin). He stated that on April 7, 1989 he sent a letter to Ragan at the New York Plaza address by certified mail. The return receipt was signed by the same "R. McClain" who would later sign for the summons and complaint. He further recounted that on July 12, 1989 he executed another certified mailing to Ragan at One New York Plaza which was *376 returned undelivered. The correspondence was then successfully delivered to the Oppenheimer Towers location and was again signed by "R. McClain". Copies of these receipts were attached to the affidavit.

On April 20, 1990 the trial court granted the motion to vacate the default judgment. The order explicitly found that the New York Plaza was not HPA's usual place of business. This appeal by United follows.

Assignment of Error

"It was an abuse of discretion and error for the Trial Court to vacate the Default Judgment against Defendant-Appellee, HPA Partners, a New York Limited Partnership, on the ground that said default judgment was void due to & failure of proper service of the Summons and Complaint upon Defendant-Appellee."

We must first address whether the order of the trial court vacating the default judgment is final and appealable pursuant to R.C. 2505.02. HPA advances the theory that since the default judgment was declared void, as opposed to merely voidable, it never existed in effect and, consequently, there was no judgment to appeal. While interesting, this specious argument may be readily dismissed.

The trial court's order expressly deems the default judgment void for lack of service of pro-cesa Ohio courts enjoy inherent authority to render such decrees in contrast to the more restricted power to vacate set forth in Civ. R. 60(B). Patton v. Diemer (1988), 35 Ohio St. 3d 68, fourth paragraph four of the syllabus; 63 Ohio Jurisprudence 3d 1985) 407, Judgments, Section 587.

Admittedly, a void judgment is a nullity. Van DeRyt v. Van DeRyt (1966), 6 Ohio St. 2d 31, 36. However, this description refers only to the effect of the judgment and not its actual existence See e.g., Romito v. Maxwell (1967), 10 Ohio St. 2d 266, 267. To suggest that a judgment was never rendered is pure fantasy.

Since the order of the trial court "vacates or sets aside a judgment," it is final and appeal-able. R.C. 2505.02. It is well settled that an order setting aside a default judgment pursuant to the civil rules is subject to immediate review. GTE Automatic Electric v. ARC Industries (1976), 47 Ohio St. 2d 146, paragraph one of tire syllabus. Because R.C. 2505.02 does not distinguish between an order based on Civ. R. 60(B) and an order founded upon a court's inherent authority to void a prior judgment, the trial judge's decision in the instant case is properly before this court.

Directing our attention to the propriety of the order, we note that a decision to void a prior judgment will not be overturned absent an abuse of discretion. Terwoord v. Harrison (1967), 10 Ohio St. 2d 170, 171. United argues that given the undisputed facts presented, the inescapable conclusion is that HPA was duly served summons at its usual place of business. We disagree.

Civ. R. 4.2(7) permits service of process:

"Upon a partnership, a limited partnership, or a limited partnership association by serving the entity by certified mail at any of its usual places of business or by serving a partner, limited partner, or manager or membert.]”

United does not suggest that service has been attempted upon a partner, limited partner, manager, or member of HPA, leaving only the question of whether service was completed at any of the partnership's "usual places of business." This term is not specifically defined in the civil rules allowing for substantial latitude in interpretation.

Against the backdrop of longstanding constitutional standards, a partnership is duly served at its "usual place of business" when such notice is "reasonably calculated, under all the circumstance^ to apprise interested parties of, the pendency of the action and afford them an opportunity to present their objections" Mullane v. Central Hanover Bank & Trust Co. (1949), 339 U.S. 306, 314; see, also, Mitchell v. Mitchell (1980), 64 Ohio St.

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Cite This Page — Counsel Stack

Bluebook (online)
589 N.E.2d 1344, 68 Ohio App. 3d 777, 7 Ohio App. Unrep. 375, 1990 Ohio App. LEXIS 4667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-fairlawn-inc-v-hpa-partners-ohioctapp-1990.