Freer v. Loma Enterprises, Inc., Unpublished Decision (12-30-1999)
Freer v. Loma Enterprises, Inc., Unpublished Decision (12-30-1999)
Opinion of the Court
JUDGMENT: Appeal Dismissed; Case Remanded.
After answers and counterclaims were filed, counsel for appellants moved to disqualify counsel retained by appellees on the grounds of conflict of interest.1 The motion cited numerous Disciplinary Rules and urged that counsel be disqualified because his interests conflicted with those of his own clients, appellees. On September 25, 1998, the trial court overruled the motion to disqualify. Appellants filed the within appeal.
Appellants' sole assignment of error, which was filed in February 1999, argues that the trial court abused its discretion when it refused to disqualify appellees' counsel. Appellees' brief rebuts this argument but fails to raise the issue of whether the trial court's order is a final appealable order. Nonetheless, it is our duty to raise this issue sua sponte as it deals with our jurisdiction to hear the appeal.
After Bernbaum, the Court distinguished the denial from the grant of a disqualification motion and held that the grant of a motion to disqualify is a final order. Russell v. Mercy Hosp.
(1984),
The Court then abandoned the balancing test utilized in these two cases to determine whether an order was made in a special proceeding. Polikoff v. Adam (1993),
Later, the court clarified Polikoff by reinforcing that it is not the order which defines a special proceeding but it is the underlying action. Walters v. The Enrichment Ctr. of WishingWell, Inc. (1997),
The General Assembly then enacted Sub.H.B. No. 394 to amend R.C.
"(A) As used in this section:
(1) `Substantial right' means a right that the United States Constitution, the Ohio Constitution, a statute, the common law, or a rule of procedure entitles a person to enforce or protect.
(2) `Special proceeding' means an action or proceeding that is specially created by statute and that prior to 1853 was not denoted as an action at law or a suit in equity.
(3) `Provisional remedy' means a proceeding ancillary to an action, including, but not limited to, a proceeding for a preliminary injunction, attachment, discovery of privileged matter, or suppression of evidence.
(B) An order is a final order that may be reviewed, affirmed, modified, or reversed, with or without retrial, when it is one of the following:
(1) An order that affects a substantial right in an action that in effect determines the action and prevents a judgment;
(2) An order that affects a substantial right made in a special proceeding or upon summary application in an action after judgment;
(3) An order that vacates or sets aside a judgment or grants a new trial;
(4) An order that grants or denies a provisional remedy and to which both of the following apply:
(a) The order in effect determines the action with respect to the provisional remedy and prevents a judgment in the action in favor of the appealing party with respect to the provisional remedy.
(b) The appealing party would not be afforded a meaningful or effective remedy by an appeal following final judgment as to all proceedings, issues, claims, and parties in the action.
(5) An order that determines that an action may or may not be maintained as a class action."
We shall now apply the amended statute to the present case. The denial of a motion for disqualification is clearly not an order that determines the entire action, vacates judgment, sets aside judgment, grants a new trial, or determines class action status, making R.C.
Therefore, the remaining avenue to explore with regards to whether the appealed order is final and appealable is R.C.
The next step in our analysis involves examining whether the requirements of R.C.
The determination of whether meaningful or effective review is available entails an analysis similar to that used by theBernbaum Court. Although Bernbaum was followed by case law and statutory changes which detract from the significance of its principal holding, the logic employed in the decision remains sound. For example, the Supreme Court opined that it is not impracticable to appeal the denial of a motion to disqualify after final judgment in the entire action. Id. at 447. The Court reasoned that any prejudice to the appellant is properly reviewable after final judgment. Id. at 448. Specifically, the Supreme Court stated, "the claimed prejudice in denying a motion to disqualify counsel is effectively reviewable after final judgment, reasoning that any damage is no more curable by an immediate appeal." Russell, supra at 39, citing Bernbaum.
In the present case, appellants will not suffer irreparable harm by a delayed appeal. Any allegation of damage to appellants' defense can be rectified. For instance, if appellants establish that they were prejudiced by the court's refusal to disqualify appellees' counsel, then appellants may receive a new trial. As a result, a decision in favor of appellants on an appeal after final judgment will not be a hollow victory. Moreover, appellants do not allege that opposing counsel may disclose confidential information, as was the allegation in Bernbaum. This makes the argument for delayed review stronger in this case than inBernbaum.
Thus, an immediate appeal is not mandated to afford appellants a meaningful or effective review. As such, we conclude that the denial of a motion to disqualify opposing counsel on the grounds that such counsel and his own client have a conflict is not a final appealable order.2
For the foregoing reasons, the appeal is dismissed and this cause is remanded to the trial court for further proceedings according to law and consistent with this court's opinion.
Donofrio, J., concurs.
Waite, J., concurs.
APPROVED:
_________________________ J. VUKOVICH, JUDGE
Case-law data current through December 31, 2025. Source: CourtListener bulk data.