Huntington Center Associates v. Schwartz, Unpublished Decision (9-26-2000)
Huntington Center Associates v. Schwartz, Unpublished Decision (9-26-2000)
Opinion of the Court
I. THE TRIAL COURT ERRED IN DENYING DEFENDANTS' MOTION FOR SUMMARY JUDGMENT AGAINST PLAINTIFF AND IN GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT.
II. THE TRIAL COURT ERRED IN GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT ON DEFENDANTS' COUNTERCLAIMS.
Appellate court review of a summary judgment motion isde novo. Helton v. Scioto Cty. Bd. of Commrs. (1997),
For the reasons that follow, we affirm the judgment of the trial court.
Russell A. Kelm was a partner in the law firm of Schwartz, Kelm, Warren Ramirez. In late December 1995, Kelm resigned as a partner and the firm changed its name to Schwartz, Warren Ramirez ("the SWR partnership"). Several clients of the SWR partnership terminated their relationships with the SWR partnership and became Kelm's clients. Upon his departure, Kelm negotiated a written agreement with the SWR partnership. Under the terms of the written agreement, Kelm owes the SWR partnership a portion of attorney fees and expenses recovered on pending matters in which Schwartz, Kelm, Warren Ramirez had formerly been legal counsel. The clients were notified by Kelm that Kelm would split fees with the SWR partnership. Some or all of these clients are the Kelm clients in the instant matter.
The SWR partnership continued to operate until late January 1996, and it occupied office space located in the Huntington Center in downtown Columbus, Ohio. On February 1, 1996, the SWR partnership converted its business form to a limited liability company known as Schwartz, Warren Ramirez L.L.C. ("SWR L.L.C."). SWR L.L.C. continued to operate in the office space located in the Huntington Center. On August 30, 1996, the firm amended its lease with its landlord, appellee, to change the name of the tenant from the SWR partnership to SWR L.L.C. On April 13, 1998, appellee obtained a $1.5 million judgment against SWR L.L.C. for past due rent.
On December 4, 1998, appellee filed a creditor's bill action against SWR L.L.C., Kelm, the Kelm clients and the defendants in cases brought by the Kelm clients. On March 29, 1999, appellee amended the creditor's bill complaint to add the SWR partnership as a party defendant. In the amended creditor's bill complaint, appellee alleged that it had obtained a $1.5 million judgment against SWR L.L.C. Appellee further alleged that SWR L.L.C. did not have sufficient personal and/or real assets subject to levy on execution to satisfy the judgment. Appellee alleged that SWR L.L.C. has equitable interests in property under the control of the SWR partnership, Kelm, the Kelm clients and defendants in actions brought by the Kelm clients.1
On May 17, 1999, SWR L.L.C. served responses to appellee's written discovery requests. SWR L.L.C. admitted that any monies due and payable to the SWR partnership were ultimately due and payable to SWR L.L.C. With regard to its ability to satisfy the $1.5 million judgment against it, SWR L.L.C. indicated that its assets were limited to outstanding accounts receivable and its interest in fees that might be recovered from the Kelm clients. SWR L.L.C. provided appellee with a list of its outstanding accounts receivable.
On April 1, 1999, appellants alleged counterclaims against appellee for invasion of privacy, intentional interference with contractual relations and frivolous conduct.
In their first assignment of error, appellants argue that the trial court erred in granting summary judgment in favor of appellee because appellee failed to meet the three requirements to establish a creditor's bill.
R.C.
When a judgment debtor does not have sufficient personal or real property subject to levy upon execution to satisfy the judgment, any equitable interest which he has in real estate as mortgagor, mortgagee, or otherwise, or any interest he has in a banking, turnpike, bridge, or other joint-stock company, or in a money contract, claim, or chose in action, due or to become due to him, or in a judgment or order, or money, goods, or effects which he has in the possession of any person or body politic or corporate, shall be subject to the payment of the judgment by action.
A creditor's bill action enables a judgment creditor to secure a lien on those assets of the judgment debtor that cannot be reached by mere execution of the judgment. Union Properties,Inc. v. Patterson (1944),
"There are three essential elements to a claim under R.C.
Appellants argue that appellee failed to establish the second element of a creditor's bill for a variety of reasons. Appellants contend that the interest at issue attorney fees and expenses that Kelm may recover from litigation initiated on behalf of the Kelm clients is not the type of interest enumerated in the statute. This court concludes, however, that R.C.
Appellants also argue that they are beyond the reach of the creditor's bill because the judgment debtor is SWR L.L.C., and Kelm entered an agreement to pay attorney fees to the SWR partnership, a different entity. R.C.
Appellants also argue that the creditor's bill is somehow improper because it targets potential future assets. TheGem Savings Assn. court rejected a similar argument, concluding that the fact that there were no immediate assets "could not have had any critical bearing upon the efficacy of the equitable lien prior to its maturity into an enforceable judgment." Gem SavingsAssn. "Indeed," the Gem Savings Assn. court reasoned, "any `claim' which will not become due until sometime in the future is naturally attended by uncertainty, and furthermore, the infinitive form of the verb, as used in the applicable statute, cannot be reasonably construed to refer to claims that are absolute." Id. This court therefore concludes that appellee has established the second element for a creditor's bill against appellants.
With regard to the third element, appellants argue that appellee's "only support for the preposition [sic] that there are no assets is in its averment in the complaint." (Appellants' Brief at 9.) The evidence demonstrates, however, that appellee established through written discovery that SWR L.L.C. does not have adequate personal or real property to satisfy the $1.5 million judgment, and its ability to pay its debt hinges on its ability to collect fees in the future pursuant to Kelm's agreement with the SWR partnership.
Because appellee has satisfied all three elements of a creditor's bill and appellants have failed to demonstrate any material disputes of fact, appellants' first assignment of error is overruled.
In their second assignment of error, appellants argue that the trial court erred in granting appellee's motion for summary judgment on appellants' counterclaims for invasion of privacy, intentional interference with contractual relations and frivolous conduct.
The Ohio Supreme Court first recognized a cause of action for invasion of privacy in Housh v. Peth (1956),
In order to establish an invasion of privacy through publicity, a plaintiff must prove five elements: (1) a publicity to the public at large, or to so many people that the matter is substantially certain to become one of public knowledge; (2) disclosure of facts concerning the private life on an individual; (3) the matter publicized must be highly offensive and objectionable to a reasonable person; (4) the publication must be intentional; and (5) the matter must not be one of legitimate concern to the public. Killilea v. Sears, Roebuck Co. (1985),
Appellants' publicity tort fails as a matter of law. The $1.5 million judgment against SWR L.L.C. and Kelm's representation of the Kelm clients in pending litigation were already all matters of public record before appellee filed the creditor's bill. Appellee's publication of these facts, therefore, cannot form the basis of appellants' publicity tort claim.
The only remaining disclosures in the creditor's bill concerning Kelm and the Kelm clients occur in vague references, all similar to the following example:
Plaintiff believes and therefore avers that Defendant Schwartz has certain legal and/or equitable rights and/or interests, including but not limited to fees for legal services, in money, choses in action, accounts receivable and other property in the possession of or under the control of the other Defendants which Defendant Schwartz refuses to apply to the satisfaction of the judgment. [(Emphasis added.) Amended Creditor's Bill Complaint at paragraph 3.]
This publication does not concern any matter related to the private life of Kelm, as it merely relates, albeit vaguely, to Kelm's recovery of fees in his professional capacity as an attorney. See Fallang v. Hickey (Aug. 31, 1987), Butler App. No. CA86-11-163, unreported (concluding that disclosure of facts or events about an individual's professional or business life, including the identities of a physician's patients, is not a disclosure of private facts for purposes of the publicity tort). Nor does the publication reveal any matter related to the private lives of the Kelm clients. It does not, as appellants contend, publicize the private finances of Kelm and the Kelm clients.
The publicity tort fails for the additional reason that the matters publicized are not highly offensive and objectionable. The creditor's bill merely identifies a potential interest in fees for legal services, without embellishment. There is no mention of the underlying substantive claims involving the Kelm clients, and no highly offensive language was used. Accordingly, we conclude that a reasonable person of ordinary sensibilities could not find the publication highly offensive and objectionable.
To establish an invasion of privacy claim based on a wrongful intrusion into private affairs, a plaintiff must establish that the intrusion is "of such a character as would shock the ordinary person to the point of emotional distress."Haller v. Phillips (1990),
"* * * Liability [for wrongful intrusion into private affairs] has been found only where the conduct has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community. Generally, the case is one in which the recitation of the facts to an average member of the community would arouse his resentment against the actor, and lead him to exclaim, `Outrageous!'" * * *
Contrary to appellants' assertion that the trial court failed to consider its counterclaim for wrongful intrusion, the trial court expressly concluded that appellee's actions of filing the creditor's bill and judgment entry were insufficient as a matter of law to constitute the requisite outrageous conduct. We agree.
Last, appellants urge this court to recognize a cause of action for false light invasion of privacy. The false light claim is defined as follows in 3 Restatement of the Law 2d, Torts (1977), 394, Section 652E:
One who gives publicity to a matter concerning another that places the other before the public in a false light is subject to liability for the other for invasion of his privacy, if
(a) the false light in which the other was placed would be highly offensive to a reasonable person, and
(b) the actor had knowledge of or acted in reckless disregard as to the falsity of the publicized matter and the false light in which the other would be placed.
The Ohio Supreme Court has declined to recognize a cause of action for false light invasion of privacy. See M.J. DiCorpo,Inc. v. Sweeney (1994),
We therefore affirm the trial court's decision granting summary judgment in favor of appellee on appellants' counterclaim for invasion of privacy.
In their second counterclaim, appellants allege that appellee intentionally interfered with contractual relations between Kelm and the Kelm clients. "In order to recover for a claim of intentional interference with a contract, one must prove (1) the existence of a contract, (2) the wrongdoer's knowledge of the contract, (3) the wrongdoer's intentional procurement of the contract's breach, (4) the lack of justification, and (5) resulting damage." Kenty v. Transamerica Premium Ins. Co. (1995),
There is no evidence that appellee intentionally procured a breach of contract between Kelm and the Kelm clients. Indeed, the undisputed evidence establishes that the Kelm clients had already been informed by Kelm about the fee sharing agreement between Kelm and the SWR partnership long before the creditor's bill action was filed. Moreover, even if appellants could establish the other elements of a claim for intentional interference with contractual relations, appellee is entitled to judgment because it was justified in filing the creditor's bill and attaching the judgment entry against SWR L.L.C. We therefore affirm the trial court's decision granting summary judgment in favor of appellee on appellants' counterclaim for intentional interference with a contractual relationship.
In their third counterclaim, appellants allege that appellee engaged in frivolous conduct. Under R.C.
Appellants argue that appellee engaged in frivolous conduct because "the only reason that the case was brought was to cause undue difficulty and harassment in the relationships between Kelm, Kelm Clients and the defendants in pending matters." (Appellants' Brief at 19.) This court has already concluded, however, that appellees are entitled to judgment on the creditor's bill against Kelm and the Kelm clients. In light of that ruling, this court concludes that appellee did not engage in frivolous conduct and affirms the grant of summary judgment in appellee's favor on appellants' counterclaim for frivolous conduct.
Accordingly, appellants' second assignment of error is overruled.
For the foregoing reasons, appellants' assignments of error are overruled, and the judgment of the Franklin County Court of Common Pleas is affirmed.
McCORMAC, J., retired, of the Tenth Appellate District, assigned to active duty under authority of Section
Case-law data current through December 31, 2025. Source: CourtListener bulk data.