Envoy Condo. Unit Owners Assoc. v. Dailey, Unpublished Decision (7-29-1999)
Envoy Condo. Unit Owners Assoc. v. Dailey, Unpublished Decision (7-29-1999)
Opinion of the Court
Appellant appeals the trial court's granting of summary judgment against him. Because the record supports the trial court's decision, we affirm.
The facts giving rise to the within appeal are as follows. Appellant Joseph P. Dailey (hereinafter "appellant") purchased a condominium for $24,000 in a building known as "the Envoy" on March 15, 1994. He was not informed of any structural problems at the time of purchase.
On or about December 1, 1994, appellant received a letter from the Envoy Condominium Association (hereinafter "the Association" or "appellee") informing its residents that severe structural problems in the garage had been discovered in early 1992. The Association is a not-for-profit corporation organized pursuant to R.C. Chapter 5311. to operate the condominium property. Appellee determined that a special assessment, totaling $545,000, would be required in order to cover the necessary repairs. Appellant's share of the assessment totaled $4,947.87.
On June 2, 1995, appellant filed an action in the Cuyahoga County Court of Common Pleas against Adam Construction Company, Associated Estates, and Realty One alleging misrepresentation and fraud for failing to disclose the defects that had been discovered prior to appellant's purchase of his unit. This case (hereinafter "the fraud action") was assigned Case No. 290382.1
On June 21, 1996, appellee, pursuant to R.C.
The foreclosure action was assigned Case No. 314187. The foreclosure action was not identified as a "related case" on the case designation form, and no motion to consolidate the two actions was ever filed. See Civ.R. 42 (A); Loc.R. 15 (H).
Prior to the filing of the foreclosure action by appellee, on July 15, 1996, appellant filed a motion for summary judgment in the fraud action. He also filed a motion seeking to discharge the lien that had been filed against him by appellee despite the fact that appellee was not a party to the fraud action.
The trial court, in its September 17, 1996 judgment entry in the fraud action, granted appellant's motion for summary judgment, awarding him judgment in the sum of $1,674.96 plus costs.3 The court also stated: "The lien is discharged pursuant to R.C.
Former defendant Realty One subsequently filed a motion to correct the record pursuant to Civ.R. 60 (A) or, in the alternative, motion for relief from judgment pursuant to Civ.R. 60 (B) on the grounds that the lien had not been at issue in the litigation. However, since Realty One had previously been dismissed from the action, the court denied the motion, noting that Realty One lacked standing and was not a party in interest.
On September 4, 1997, appellee filed a motion for summary judgment in the foreclosure action on the grounds that, as of the filing of the motion, appellant had failed to pay a total of $3,453.74 that had accrued from delinquent maintenance fees and the special assessment.4 Appellant opposed the motion and filed a cross-motion for summary judgment, contending that the lien upon which appellee had based the foreclosure action had been declared invalid. On February 3, 1999, the lower court granted appellee's motion for summary judgment and denied appellant's cross-motion for summary judgment. It is from this ruling that appellant appeals.5
Appellant states two assignments of error for our review. Appellant's first assignment of error is:
THE TRIAL COURT ERRED IN GRANTING APPELLEES' MOTION FOR SUMMARY JUDGMENT WHEN APPELLANT SHOWED THAT THERE WERE GENUINE ISSUES OF MATERIAL FACT IN DISPUTE.
Appellant contends that the trial court in the foreclosure action improperly granted summary judgment in favor of appellee.
Before summary judgment can be granted, it must be determined that 1) no genuine issue as to any material fact remains to be litigated, 2) the moving party is entitled to judgment as a matter of law, and 3) it appears from the evidence that reasonable minds can come to but one conclusion and, viewing the evidence most strongly in favor of the non-moving party, that conclusion is adverse to that party. Welco Industries, Inc. V. Applied Cos. (1993),
Appellee, in support of its motion for summary judgment, submitted the affidavit of its Managing Agent wherein she stated that appellant currently had an outstanding balance on his account in the amount of $3,453.74 with interest at 10% per annum. In opposition, appellant does not dispute that the balance is unpaid; instead, he argues that the lien had previously been discharged pursuant to R.C.
R.C.
A unit owner who believes that the portion of the common expenses chargeable to his unit, for which a certificate of lien has been filed by the unit owners association pursuant to this section, has been improperly charged against him or his unit may commence an action for the discharge of the lien in the court of common pleas of the county in which all or a part of the condominium property is situated. In the action, if it is finally determined that the portion of the common expenses has been improperly charged to the owner or his unit, the court shall make such order as is just, which may provide for a discharge of record of all or a portion of the lien.
The record is clear that appellee was not a party to the fraud action. Without the participation of the lien holder, it would be impossible for a court to determine whether the expenses were improperly charged and to make an order "as is just" pursuant to this section.
The Ohio Supreme Court has held that "[a] trial court is without jurisdiction to render judgment or to make findings against a person who was not served summons, did not appear, and was not a party in the court proceedings." State ex rel. Ballardv. O'Donnell (1990),
The evidence before the trial court regarding appellee's motion for summary judgment indicates that appellant has an outstanding balance on his account and that appellee properly filed a valid lien pursuant to R.C.
It has been held "that a conflict in decisions between two judges of the same court does not constitute error, the issue being merely whether the court erred in "the judgment appealed from." Marathon Oil Co. v. Board of Zoning Adjustment (1975),
Appellant's first assignment of error is overruled.
Appellant's second assignment of error states:
THE TRIAL COURT ERRED IN GRANTING SUMMARY JUDGMENT BECAUSE THE SAME ISSUES CONTAINED IN APPELLEE' S COMPLAINT WERE LITIGATED IN ANOTHER CASE IN CUYAHOGA COUNTY COMMON PLEAS COURT AND, THEREFORE, COLLATERAL ESTOPPEL PROHIBITS RELITIGATION.
Appellant next contends that the existence and validity of the lien had already been litigated; thus, he maintains, the foreclosure action should not have gone forward pursuant to the doctrine of collateral estoppel.
"Collateral estoppel is the doctrine that recognizes that a determination of facts litigated between two parties in a proceeding is binding on those parties in all future proceedings." State V. Lovejoy (1997),
The rationale for the rule was stated as follows:
The main legal thread which runs throughout the determination of the applicability of res judicata, inclusive of the adjunct principle of collateral estoppel, is the necessity of a fair opportunity to fully litigate and to be "heard" in the due process sense.
Broz, supra, citing Goodson at 200-201. Appellee was not a party in the fraud action; thus, it had an opportunity to neither "fully litigate" nor "to be "heard' in the due process sense" on the issue of the validity of the lien. Appellant's contention that appellee's former counsel had been involved in the fraud action does not create the necessary privity between appellee and the parties to that action to invoke the doctrine of collateral estoppel.
Moreover, as noted in the discussion of appellant's first assignment of error, the trial court was without jurisdiction to enter judgment against appellee in an action where it was not a party. Appellee could therefore not be bound by the trial court's decision in the fraud case.
Appellant's second assignment of error is overruled.
It is ordered that appellees recover of appellant their costs herein taxed.
The Court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this Court directing the Cuyahoga County Court of Common Pleas to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
JAMES M. PORTER, A.J. and PATRICIA A. BLACKMON, J. CONCUR.
__________________________________ JUDGE KENNETH A. ROCCO
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