Wos v. Cleveland

2025 Ohio 1456
CourtOhio Court of Appeals
DecidedApril 24, 2025
Docket114279
StatusPublished

This text of 2025 Ohio 1456 (Wos v. Cleveland) 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
Wos v. Cleveland, 2025 Ohio 1456 (Ohio Ct. App. 2025).

Opinion

[Cite as Wos v. Cleveland, 2025-Ohio-1456.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

EKATARINA WOS, ET AL., :

Plaintiffs-Appellants, : No. 114279 v. :

CITY OF CLEVELAND, ET AL., :

Defendants-Appellees. :

JOURNAL ENTRY AND OPINION

JUDGMENT: REVERSED AND REMANDED RELEASED AND JOURNALIZED: April 24, 2025

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-24-993917

Appearances:

Wegman Hessler and Jay R. Carson; The Buckeye Institute and David Tryon, for appellants.

The Menashe Law Group LLC, Diane M. Menashe, and James N. Pfeiffer, for appellees.

DEENA R. CALABRESE, J.:

Plaintiffs-appellants Ekaterina Wos1 and David Steffes (collectively the

“Taxpayers”) appeal the trial court’s decision granting the Civ.R. 12(B)(6) motion to

1 Although Wos’s first name is spelled Ekatarina with an “a” in the case caption,

the complaint and the appellate briefs spell her name as Ekaterina with an “e.” dismiss of defendants-appellees, the City of Cleveland and its finance director,

Ahmed Abonamah (collectively the “City”). In a journal entry dated July 26, 2024,

the trial court dismissed the Taxpayers’ complaint in its entirety, concluding that

they had impermissibly failed to exhaust their administrative remedies prior to

seeking judicial relief. This timely appeal followed. Upon review of the record and

pertinent law, we reverse the trial court’s decision and remand the case for further

proceedings consistent with this opinion.

I. Procedural History

The Taxpayers commenced the underlying action on March 6, 2024.

Their complaint sought declaratory relief and a writ of mandamus, principally in

connection with interest allegedly due on tax refunds issued by the City. Count 1 of

the complaint sought a declaratory judgment “that pursuant to Cleveland Cod. Ord.

§§ 192.28 (d) [and] 192.[29] (a)(4),” the Taxpayers were entitled to interest on 2021

municipal income tax refunds and that the City improperly “declined to pay

interest.” Cleveland Cod.Ord. 192.28(d) provides, in pertinent part:

Interest shall be allowed and paid on any overpayment by a taxpayer of any municipal income tax obligation from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within ninety (90) days after the final filing date of the annual return or ninety (90) days after the completed return is filed, whichever is later, no interest shall be allowed on the refund.

The Taxpayers contend that following the submission of their completed tax returns,

the City failed to issue refunds within 90 days, and that it therefore owes interest,

under the terms of the statute, “from the date of the overpayment until the date of the refund of the overpayment.” Id. To that end, paragraph 63 of the complaint

alleges that the Taxpayers “have made timely requests to the City to pay the required

interest on their refund, but the City has refused to do so.” The Taxpayers requested

that the trial court “declare that they are entitled to interest on their respective

municipal income tax refunds.” (Complaint at ¶ 64.)

Count 1 of the complaint also alleges improper withholding “for income

earned that was done outside of the City, to wit, vacation pay, and over which the

City has no taxing jurisdiction as well as income earned outside of the City for which

the City eventually provided refunds.” (Complaint at ¶ 61.)

Count 2 of the complaint sought a writ of mandamus to the City’s

finance director, pursuant to R.C. 2731.02 et seq., “ordering the City to make the

required interest payment.” (Complaint at ¶ 72.) Despite limiting this concluding

reference to “the required interest payment,” Count 2 also contains an allegation

that the Taxpayers were “improperly taxed on vacation days.” (Complaint at ¶ 70.)

In addition to seeking relief on their own behalf, the Taxpayers brought

their action on behalf of a purported class consisting of “[a]ll nonresident taxpayers,

as defined in Cod. Ord. § 191.0301, who sought refunds of amounts withheld for

municipal income tax who received a tax refund more than 90 days after filing his

or her return,” excluding any judge or magistrate presiding over the case (as well as

their families) and anyone requesting exclusion from the class.

The complaint’s prayer for relief explicitly requested the following: (1) As to Count One, a declaration stating that representative Plaintiffs and the similarly situated Class members, are entitled to the payment of interest on their municipal income tax refunds;

(2) As to Count Two, a writ of mandamus ordering . . . Abonamah and the City to make the required interest payment to Ms. Wos, Mr. Steffes, and the Class members[.2]

The City filed its motion to dismiss on May 15, 2024. The motion,

expressly premised on Civ.R. 12(B)(6), argued that the complaint failed to state a

claim for relief because the Taxpayers had not exhausted their administrative

remedies before turning to seeking court relief. Among the multiple arguments

made by the City, the following excerpt stands out:

Most significant, though, are the allegations missing from the Complaint. For one, Plaintiffs never allege that they exhausted their administrative remedies by requesting that the City pay interest on their refunds for payments made beyond ninety days after they filed their respective returns. Without that, it’s unclear to what extent — if at all — Plaintiffs’ entitlement to interest was considered by the tax administrator and incorporated into a “final ruling” on Plaintiffs’ refund requests.

(Emphasis added.)

The Taxpayers requested and received an extension of time to oppose

the motion, ultimately filing their brief in opposition on June 13, 2024. Citing R.C.

718.11(C), the Taxpayers argued there was no administrative remedy to exhaust

because “the board of tax review lacks jurisdiction other than to hear matters

concerning assessments,” that no assessments as defined in R.C. 718.01(PP)(1) or

2 The prayer for relief also demanded costs and fees (including attorneys’ fees), any

other relief the trial court deemed equitable, and an expedited briefing and hearing schedule. None of these demands are pertinent to our review. (2) had been issued, and therefore that the board of tax review “cannot afford relief

to Plaintiffs in this case.” (Emphasis added.) They noted not only that no

assessments had been issued, but that the City had acknowledged that the Taxpayers

had overpaid and were entitled to the refunds in the amounts the Taxpayers claimed.

As they elaborated:

Setting aside the taxation of their paid leave days, the Plaintiffs do not disagree with the City as to the amount of their refunds. They are simply insisting that the City pay them (and other taxpayers) the interest due on those refunds. They are seeking to compel the City to engage in the purely ministerial act of calculating and paying interest according to the ordinance’s mandatory language.

(Taxpayers’ opposition brief at p. 4.)

In addition, the Taxpayers contended that they were challenging “not

only the City’s failure to pay interest as required by Cleveland Cod. Ord. 192.28(d)

and 192.29(a)(4), but the City’s unconstitutional practice of taxing vacation pay and

other leave of non-resident employees who are working remotely by treating their

vacation days as days worked in the City.” The Taxpayers expressly stated: “This is

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Bluebook (online)
2025 Ohio 1456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wos-v-cleveland-ohioctapp-2025.