Weygandt v. Ward

2013 Ohio 1937
CourtOhio Court of Appeals
DecidedMay 13, 2013
Docket12CA0004
StatusPublished
Cited by2 cases

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Bluebook
Weygandt v. Ward, 2013 Ohio 1937 (Ohio Ct. App. 2013).

Opinion

[Cite as Weygandt v. Ward, 2013-Ohio-1937.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF WAYNE )

EARLY WEYGANDT, et al. C.A. No. 12CA0004

Appellees

v. APPEAL FROM JUDGMENT ENTERED IN THE VIRGIL F. WARD, et al. COURT OF COMMON PLEAS COUNTY OF WAYNE, OHIO Defendants CASE No. 09-CV-0088

and

ROGER E. BAKER, et al.

Appellants

DECISION AND JOURNAL ENTRY

Dated: May 13, 2013

CARR, Judge.

{¶1} Appellants, Roger Baker, Diane Baker, and Linda Flickinger, appeal the judgment

of the Wayne County Court of Common Pleas. This Court affirms in part and reverses in part.

I.

{¶2} Fred Ward died in 1988, leaving his wife a life estate in his property. His will

provided that, upon his wife’s death, his real property would pass to his son Virgil, who also

received a life estate. The will provided that Virgil could “sell and dispose of any or all of said

real property for such prices and upon such terms as he in his own discretion may deem

advisable * * *.” If Virgil sold any of the land, however, he had to divide the proceeds into six 2

parts. Virgil was allowed to keep two of the parts but he had to give the others to his four sisters

or their descendants.

{¶3} One of the properties that Virgil received after Mr. Ward’s wife died was a 240-

acre farm that he and his father had farmed together. Virgil continued farming the land for

several years until it became too difficult for him. He began renting the land to his niece and her

husband, Diane and Roger Baker, who lived nearby.

{¶4} Desiring to keep the 240-acres together as a family farm, Virgil later decided that

he wanted the Bakers to have the land. After consulting with a lawyer, he learned that he could

not give the land to the Bakers, but could sell it to them. According to the Bakers, Virgil

proposed that he sell the land to them for $1000 an acre, contingent on it remaining a farm and

their letting him live on the land until his death. The Bakers agreed to those terms. They

executed a sales agreement and mortgage, under which the Bakers would pay $240,000 for the

property and Virgil would receive the first $50,000 in mortgage payments to reimburse him for

improvements he had made to the farm with the rest to be divided between him and his sisters as

provided in Fred Ward’s will.

{¶5} After learning about the sale, some of Virgil’s sisters and their descendants sued

Virgil, the Bakers, and anyone else who might have an interest in the land, seeking a declaration

that the sale was void. The trial court dismissed the action because it determined that Fred

Ward’s will gave Virgil power to sell the land under whatever terms he desired. This Court

reversed, however, because we determined that, under the Ohio Supreme Court’s holding in

Johnson v. Johnson, 51 Ohio St. 446 (1894), Virgil owed a fiduciary duty to his sisters and their

descendants “as their implied, quasi trustee.” Weygandt v. Ward, 9th Dist. No. 09CA0050, 3

2010-Ohio-2015, ¶ 12. We remanded the case to the trial court for it to determine whether Virgil

acted within his authority when he conveyed the property to the Bakers. Id. at ¶ 13, 15.

{¶6} At trial, Virgil’s sisters presented evidence that, at the time Virgil sold the

property for $240,000, its fair market value was $1,170,000. They argued that, even though

Virgil had discretion to sell the land at “such prices and upon such terms as he * * * may deem

advisable,” he had breached his duty of good faith to them. The trial court agreed, concluding

that Virgil “did not have the authority to convey the real property for insufficient consideration,

reserve a life estate for himself, grant an agricultural easement on the property, and take a note

and mortgage on the property whereby he received the first $50,000 in payments before any

monies were to be paid to Plaintiffs and others.” It, therefore, declared all of the documents that

were involved in the conveyance null and void. The Bakers have appealed, assigning seven

errors.

II.

ASSIGNMENT OF ERROR I

THE TRIAL COURT ERRED BY CONCLUDING THAT VIRGIL WARD DID NOT HAVE THE AUTHORITY UNDER HIS POWER OF SALE TO SELL THE WARD FARM FOR SUCH PRICE AND UPON SUCH TERMS AS HE IN HIS OWN DISCRETION DEEMED ADVISIBLE.

{¶7} The Bakers argue that, under Fred Ward’s will, “the only limitation” on Virgil’s

power to sell the 240 acres “was that the price and terms of sale must be ones which ‘he in his

own discretion may deem advisable.’” They have argued that, since Virgil was the one who set

the terms of the transaction, including the price, the sale was “upon such terms as [Virgil] in his

own discretion may deem advisable,” under the will. According to the Bakers, “[t]he trial court

had no right to question Virgil’s discretion as to the price or the terms; its only inquiry should

have been to determine whether the price and terms were, in fact, the product of [his] discretion.” 4

{¶8} “The law of the case doctrine ‘provides that the decision of a reviewing court in a

case remains the law of that case on the legal questions involved for all subsequent proceedings

in the case at both the trial and reviewing levels.’” Neiswinter v. Nationwide Mut. Fire Ins. Co.,

9th Dist. No. 23648, 2008–Ohio–37, ¶ 10, quoting Nolan v. Nolan, 11 Ohio St.3d 1, 3 (1984).

Ultimately, “the doctrine of law of the case precludes a litigant from attempting to rely on

arguments at a retrial which were fully pursued, or available to be pursued, in a first appeal.

New arguments are subject to issue preclusion, and are barred.” Hubbard ex rel. Creed v.

Sauline, 74 Ohio St.3d 402, 404–405 (1996).

{¶9} In this Court’s prior decision, we reasoned that, because Virgil’s sisters were

entitled to part of the proceeds of the sale of any land that he had received, Virgil “owed them a

duty as their implied, quasi trustee.” Weygandt v. Ward, 9th Dist. No. 09CA0050, 2010-Ohio-

2015, ¶ 12. Because Virgil was an implied trustee, we concluded, as a matter of law, that he did

not have “absolute power” over the terms of the sale as the language of the will might suggest.

Id. at ¶ 13. The Bakers’ present argument ignores the fact that whatever discretion the will may

have given Virgil to sell the property, it was limited by the duties he owed as an implied trustee.

In arguing that the only limitation on Virgil’s authority was that the price and terms must be

“which he in his own discretion may deem advisable,” the Bakers are, essentially, asking this

Court to reconsider whether Virgil’s authority under the will was limited by his duty as trustee.

This Court, however, has already determined that Fred Ward’s will did not give Virgil unbridled

power to sell the 240 acres at whatever price and under whatever terms he desired. Rather,

Virgil’s authority was limited by the duties he owed to the other beneficiaries as an implied

trustee. Although the previous appeal was from a motion to dismiss, it was necessary in deciding

that appeal for this Court to determine whether Virgil owed a duty to the other beneficiaries of 5

the will. Under the doctrine of law of the case, the Bakers may not re-litigate whether a duty

existed or the limitation that it placed on Virgil’s discretion to sell the 240 acres. The Bakers’

assertion that “[t]he trial court had no right to question Virgil’s discretion as to the price and

terms” is incorrect.

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