WBCMT 2007-C33 Office 7870, L.L.C. v. Breakwater Equity Partners, L.L.C.

2019 Ohio 3935
CourtOhio Court of Appeals
DecidedSeptember 27, 2019
DocketC-180127
StatusPublished
Cited by8 cases

This text of 2019 Ohio 3935 (WBCMT 2007-C33 Office 7870, L.L.C. v. Breakwater Equity Partners, L.L.C.) 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
WBCMT 2007-C33 Office 7870, L.L.C. v. Breakwater Equity Partners, L.L.C., 2019 Ohio 3935 (Ohio Ct. App. 2019).

Opinion

[Cite as WBCMT 2007-C33 Office 7870, L.L.C. v. Breakwater Equity Partners, L.L.C., 2019-Ohio- 3935.]

IN THE COURT OF APPEALS FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO

WBCMT 2007-C33 OFFICE 7870, LLC, : APPEAL NO. C-180127 TRIAL NO. A-1304126 Plaintiff-Appellant, :

vs. : O P I N I O N.

BREAKWATER EQUITY PARTNERS, : LLC, : THOMPSON NATIONAL PROPERTIES, LLC, :

TNPPM KEMPER POINTE, LLC, :

and :

ANTHONY W. THOMPSON, :

Defendants-Appellees. :

Civil Appeal From: Hamilton County Court of Common Pleas

Judgment Appealed From Is: Reversed and Cause Remanded

Date of Judgment Entry on Appeal: September 27, 2019

Barnes & Thornburg LLP, David Dirisamer, Alan K. Mills and Jonathan D. Sundheimer, for Plaintiff-Appellant,

Edward J. McTigue, for Defendants-Appellees. OHIO FIRST DISTRICT COURT OF APPEALS

BERGERON, Judge.

{¶1} The genesis of this appeal begins with a seemingly-innocuous decision

to seek leave to amend a complaint. The trial court obliged, setting off a cascade of

subsequent events that might render this case a fixture in the lore of civil procedure

professors for years to come.

{¶2} The decision to amend the complaint arose at an unusual juncture:

after the plaintiff had secured a partial agreed judgment. We are called upon to

decide whether orders preceding the amendment divested the trial court of its

jurisdiction over this particular case and whether we must undo over three years of

litigation—during which that jurisdiction was never questioned by anyone.

{¶3} Part of the problem here is that “jurisdiction” is a term of many stripes,

and one that is oft-misunderstood based on its somewhat haphazard use. This case

generated confusion between “jurisdiction over the case” and “subject matter

jurisdiction,” as the trial court essentially conflated the two concepts. But defects in

the former are waivable, whereas defects in the latter are not. This case involves

“jurisdiction over the case,” and by sitting on their hands for three years, the

defendants waived any objection to the trial court’s jurisdiction over this case. We

ultimately conclude that the trial court correctly allowed the amendment of the

complaint and that even if that were erroneous, any jurisdictional defect has long

since been waived. We accordingly reverse the decision to dismiss the case for lack

of jurisdiction and remand this matter to the trial court.

I.

{¶4} Plaintiff-appellant WBCMT 2007-C33 Office 7870, LLC, (“WBCMT”)

initially filed a two-count lawsuit for breach of contract and foreclosure against 22

separate borrower entities (“Borrowers”), the Hamilton County Treasurer, and 100

2 OHIO FIRST DISTRICT COURT OF APPEALS

John Doe defendants. In addition to the two counts, the complaint’s prayer for relief

sought “[j]udgment against Borrowers for all costs of collection of the debt, including

but not limited to, interest, attorneys’ fees, and other costs[.]” About six months

later, in January of 2014, the matter was largely settled with a “Partial Agreed

Judgment,” which entered final judgment in favor of WBCMT and against the

Borrowers on both counts of the complaint. It did not, however, finally determine

the costs of collection or resolve the question of attorney fees. WBCMT sold the

property at a sheriff’s sale and went on to secure an “Entry Confirming Sale &

Ordering Deed” (“Confirmation Order”).

{¶5} Subsequent to the Partial Agreed Judgment, WBCMT sought leave to

amend its complaint (without opposition) in mid-2014. The trial court entered the

order granting leave and the Confirmation Order on the same day. The amended

complaint substituted the Borrowers with Breakwater Equity Partners, LLC,

(“Breakwater”); Thompson National Properties, LLC, (“TNP”); TNPPM Kemper

Pointe, LLC, (“TNPPM”), and Anthony W. Thompson (president of TNP); and

substituted conversion, fraudulent conveyance, and unjust-enrichment claims for the

breach-of-contract and foreclosure claims. The latter three defendants have

responded as appellees in this appeal, and we refer to them, collectively, as “the

Thompson Defendants.” According to WBCMT’s allegations, the Borrowers had

engaged TNP, by and through TNPPM, to manage their collateral real estate. TNP

and TNPPM allegedly transferred significant sums generated from that real estate

(also its collateral) to Breakwater (thereby stripping assets from which debt service

payments could have been made), which WBCMT sought to recover via the amended

complaint. But to the untrained eye, the amended complaint bears little, if any,

3 OHIO FIRST DISTRICT COURT OF APPEALS

resemblance to the original complaint, begging the question of why WBCMT opted

for this path rather than simply commencing a new action.

{¶6} Although the procedure was novel, no one complained about the move.

The Thompson Defendants simply got on with the business of litigating the case, and

after the case lingered for a while, WBCMT moved for, and secured, summary

judgment on the amended complaint. The Thompson Defendants appealed, but we

dismissed that appeal by a Judgment Entry—noting that the judgment entered in

favor of WBCMT on the amended complaint did not determine punitive damages,

attorney fees, or certain indeterminate amounts payable under the loan documents.

Therefore, we dismissed the appeal for lack of a final order.

{¶7} Back in the trial court, WBCMT sought to render the judgment final by

filing a “Notice of Conditional Waiver of Claims” related to its summary judgment.

But the matter was assigned to a new judge in June of 2017, and the judge never

acted on that request. Instead, following its review of the case, the trial court sua

sponte ordered briefing on its continuing jurisdiction over the case—raising

numerous questions about the finality of the Partial Agreed Judgment; the finality of

the Confirmation Order, the effect of such finality (if any) on the amended complaint

and the trial court’s continuing jurisdiction; and the effect of the amended complaint

(if valid) on prior orders of the trial court. After briefing and argument, the trial

court concluded that it never had jurisdiction over the amended complaint because

the Partial Agreed Judgment and Confirmation Order were final, appealable orders.

It correspondingly vacated all orders and entries related to the amended complaint

and dismissed the amended complaint without prejudice. With the stroke of a pen,

the court erased three years of litigation. WBCMT now appeals the trial court’s

judgment.

4 OHIO FIRST DISTRICT COURT OF APPEALS

{¶8} We pause, before proceeding with the analysis, to highlight the

jurisdictional concepts that animate this appeal. While the term “jurisdiction” is

frequently used in a generic sense, it refers more precisely to three, distinct concepts:

“jurisdiction over the subject matter, jurisdiction over the person, and jurisdiction

over a particular case.” Bank of Am., N.A. v. Kuchta, 141 Ohio St.3d 75, 2014-Ohio-

4275, 21 N.E.3d 1040, ¶ 18. Subject-matter jurisdiction is power conferred, by the

Constitution and other law, on the court over a particular type of case. Id. at ¶ 20.

Subject-matter jurisdiction requires no “regard to the rights of the individual parties

involved in a particular case.” Id. at ¶ 19.

{¶9} Jurisdiction over a particular case (also referred to as “jurisdiction

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Cite This Page — Counsel Stack

Bluebook (online)
2019 Ohio 3935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wbcmt-2007-c33-office-7870-llc-v-breakwater-equity-partners-llc-ohioctapp-2019.