U.S. Specialty Ins. Co. v. Hoffman

2020 Ohio 4114
CourtOhio Court of Appeals
DecidedAugust 18, 2020
Docket19AP-189 & 19AP-855
StatusPublished
Cited by6 cases

This text of 2020 Ohio 4114 (U.S. Specialty Ins. Co. v. Hoffman) 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
U.S. Specialty Ins. Co. v. Hoffman, 2020 Ohio 4114 (Ohio Ct. App. 2020).

Opinion

[Cite as U.S. Specialty Ins. Co. v. Hoffman, 2020-Ohio-4114.] IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

U.S. Specialty Insurance Company et al., :

Plaintiffs-Appellants, :

v. : Nos. 19AP-189 and 19AP-855 Eric J. Hoffman, : (C.P.C. No. 17CV-592)

Defendant-Appellee, : Third-Party Plaintiff, (REGULAR CALENDAR) : v. : Martin Pope et al., : Third-Party Defendants. :

D E C I S I O N

Rendered on August 18, 2020

On brief: Percy Squire, Co., LLC, and Percy Squire, for appellants. Argued: Percy Squire.

On brief: Lane Alton, Rick E. Marsh, and Eric S. Bravo, for appellee. Argued: Eric S. Bravo.

APPEALS from the Franklin County Court of Common Pleas

BROWN, J.

{¶ 1} U.S. Specialty Insurance Company, Chuck Brown, II, and Chuck Brown II Bail Bonds (collectively "U.S. Specialty"), plaintiffs-appellants, appeal from two judgments of the Franklin County Court of Common Pleas. In one judgment, the court granted the motion for summary judgment filed by Eric J. Hoffman, defendant-appellee. In the other judgment, the trial court denied U.S. Specialty's motion to vacate the trial court's granting Nos. 19AP-189 and 19AP-855 2

of summary judgment to Hoffman. Hoffman has also filed a motion to dismiss purported appellants Surety Corporation of America ("Surety"), Chuck Brown, II, and Chuck Brown II Bail Bonds. {¶ 2} On June 25, 2013, the Hancock County Grand Jury indicted Michael Hawrylak on several felony drug offenses. On July 3, 2013, Hawrylak was arraigned and the court set bond at $45,000 cash or surety. {¶ 3} On July 5, 2013, U.S. Specialty posted a surety bond. U.S. Specialty was the bond's surety, Surety was listed as U.S. Specialty's agent, and Martin Pope was U.S. Specialty's attorney-in-fact. Hawrylak was released. Eventually, a trial date was ordered for January 27, 2014. {¶ 4} On January 17, 2014, a bench warrant was issued for Hawrylak's violation of bond. Hawrylak did not appear for the January 27, 2014 hearing. On the same date, the trial court forfeited Hawrylak's bond even though U.S. Specialty claims the forfeiture was based on a probation violation and the bond did not guarantee that Hawrylak would report for probation. The trial court issued a notice of declaration of forfeiture to U.S. Specialty on July 29, 2014 despite that R.C. 2937.36 requires notice of a bail forfeiture be provided to the surety within 15 days and a forfeiture hearing to be conducted within 45 to 60 days after notice. {¶ 5} Surety, through its counsel Hoffman, filed a motion to set aside the forfeiture and on September 18, 2014, the trial court granted the motion. {¶ 6} On January 26, 2015, the state filed a motion for bond forfeiture based on Hawrylak's failure to appear in court on January 27, 2014. The trial court granted the motion and found the bond was forfeited on April 8, 2015. On June 11, 2015, the trial court ordered the bond forfeited. {¶ 7} Surety and Chuck Brown II Bail Bonds, represented by Hoffman, appealed the June 11, 2015 bond forfeiture to the Third District Court of Appeals. Hoffman filed a brief on behalf of Chuck Brown II Bail Bonds but failed to file a brief on behalf of Surety. In State v. Hawrylak, 3d Dist. No. 5-15-24, 2016-Ohio-250 ("Hawrylak I"), the court of appeals upheld the trial court's bond forfeiture but dismissed Surety's appeal for failing to file an appellate brief. {¶ 8} On April 4, 2016, the trial court ordered U.S. Specialty, Martin Pope Bail Bonds, and Surety to pay $45,000 to the clerk of courts. Nos. 19AP-189 and 19AP-855 3

{¶ 9} On January 18, 2017, U.S. Specialty, Chuck Brown, II, and Chuck Brown II Bail Bonds filed the current professional malpractice action in the Franklin County Court of Common Pleas against Hoffman for failing to brief Surety's assignments of error in Hawrylak I. {¶ 10} In the Hancock County case, the state filed a motion to find Surety in contempt of the April 4, 2016 order because none of the parties had made the bond payment as ordered. In opposition, U.S. Specialty claimed it was not required to pay the bond because the initial February 3, 2014 bond forfeiture did not comply with the R.C. 2937.36(C) notice provision; thus, the state was prohibited from filing a second attempt to revoke the bond. On August 7, 2018, the trial court issued a decision in which it found nothing precluded the state from filing a second bond forfeiture. U.S. Specialty appealed to the Third District Court of Appeals asserting the April 4, 2016 order was void ab initio due to failure to timely issue statutory notice; thus, the trial court could not issue a subsequent bond forfeiture. In State v. Hawrylak, 3d Dist. No. 5-18-17 (Feb. 4, 2019) (memorandum decision) ("Hawrylak II"), the court of appeals found there was no authority to support the position that the trial court was deprived of jurisdiction to issue the second declaration of bond forfeiture after it vacated the first declaration of forfeiture. The Supreme Court of Ohio rejected the appeal in State v. Hawrylak, 156 Ohio St.3d 1454, 2019-Ohio-2780, reconsideration denied, 157 Ohio St.3d 1408, 2019-Ohio-3731. {¶ 11} On February 11, 2019, in the Franklin County professional malpractice case, Hoffman filed a motion for summary judgment arguing that because U.S. Specialty's failed argument in Hawrylak II was the same argument U.S. Specialty claims Hoffman should have made in Hawrylak I, U.S. Specialty cannot show Hoffman's failure to make the same failed argument in Hawrylak I was the proximate cause of any harm to U.S. Specialty. Although U.S. Specialty requested from opposing counsel a 14-day extension to file its memorandum contra to Hoffman's summary judgment motion, and opposing counsel agreed, U.S. Specialty neglected to file for such extension with the trial court. {¶ 12} On March 1, 2019, the trial court granted Hoffman's motion for summary judgment finding the decision in Hawrylak II makes clear the argument U.S. Specialty claims Hoffman should have made in Hawrylak I would have been rejected in Hawrylak I if made; thus, there was no proximate cause in the current professional malpractice claim. Nos. 19AP-189 and 19AP-855 4

{¶ 13} On March 5, 2019, U.S. Specialty filed a motion to vacate the trial court's granting of summary judgment, pursuant to Civ.R. 60(B)(1), along with its memorandum contra the motion for summary judgment and a cross-motion for summary judgment. U.S. Specialty argued Hoffman's counsel had consented to an extension to file a memorandum contra Hoffman's motion for summary judgment, but due to counsel's preoccupation with jury trials scheduled for February 25 and 26, 2019, he inadvertently failed to file a motion for extension with the trial court. On November 26, 2019, the trial court denied the motion to vacate. U.S. Specialty appeals, asserting the following two assignments of error: [I.] The trial court erred when it denied Appellants' motion to vacate for the reason R.C. 2937.36 bars bond forfeiture if the surety is not given Notice within fifteen days following a defendant's failure to appear.

[II.] The trial court erred when it granted summary judgment to Appellee, for the reason the opinion of the Third District Court of Appeals concerning R.C. [2937.36] was not only erroneous, it did not absolve Appellee of the duty to file a brief.

{¶ 14} Before addressing U.S. Specialty's assignments of error, we must first address Hoffman's motion to dismiss purported appellants Surety, Chuck Brown, II, and Chuck Brown II Bail Bonds. U.S. Specialty has not filed any response to the motion. App.R. 3(D) provides, in pertinent part, that "[t]he notice of appeal shall specify the party or parties taking the appeal." Here, the case title in the notices of appeal indicate "U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 4114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-specialty-ins-co-v-hoffman-ohioctapp-2020.