Gordon v. Koltnow, Unpublished Decision (11-10-2004)
Gordon v. Koltnow, Unpublished Decision (11-10-2004)
Opinion of the Court
{¶ 3} The promissory note contained an acceleration clause, which, in the event of certain late payment, would allow the holder to demand the entire remaining debt payable immediately. Eventually, based on accusations of late payment, Appellee sought to trigger the acceleration clause and enforce the note for the entire amount. To do this, Appellee moved the trial court to order judgment in the context of enforcing the settlement of the existing case.
{¶ 4} Under the purported authority of its retained jurisdiction over the settlement agreement, the trial court held at least two status conferences to discuss with the parties the payments due on the note, issued an order altering the terms of the note, and ultimately ordered the acceleration. Besides granting Appellee the authority to collect the entire balance of the note, this final order also awarded attorney's fees and costs.
{¶ 5} Appellant has timely appealed, asserting two assignments of error.
{¶ 6} Appellant has argued that the trial court lacked authority over the promissory note, based solely on its retained jurisdiction over the settlement agreement. That is, the trial court was without jurisdiction to enforce this note under the circumstances of this case. We agree.
{¶ 7} We begin by recognizing that a promissory note is by definition and purpose a negotiable instrument: "a written promise to pay a certain sum of money at a future time, unconditionally." Burke v. State (1922),
{¶ 8} This case stems from a settlement agreement, which is acknowledged as a binding contract between the parties. SeeSpercel v. Sterling Indus., Inc. (1972),
{¶ 9} That is, "at the moment the note was delivered to the plaintiff the obligation of the defendant under the contract was fully performed." Hotchkiss, supra at *8. Thus, while the trial court did retain proper authority to enforce the terms of the settlement agreement, Spercel,
{¶ 10} A civil action is commenced by filing a complaint with the appropriate court which sets forth a particular claim for relief. Civ.R. 3 and Civ.R. 8. Following a responsive pleading, a party may amend its pleading and add a claim upon leave of the court, proper service, and adequate opportunity for response. Civ.R. 5 and Civ. R. 15(A). In the present case, Appellee filed no separate claim to enforce the note, nor any amendment to the original tort claim that prompted the litigation and resulting settlement. Rather, Appellee asked the trial court to render judgment on an instrument that was outside the scope of the case before it. Therefore, the court was without authority to enforce this note, and its purported retained jurisdiction over the settlement agreement was insufficient.
{¶ 11} Based on the arguments before us, we must clarify one final point in resolving this case. In her brief to this Court, Appellee has argued that Appellant waived his right to appeal these errors by his failure to "object to the error on the record at trial" and offered two cases from this Court as authority for her argument. See Reitz v. Howlett (1995),
{¶ 12} Based on the legal concept that the promissory note is a distinct promise and our finding that the settlement agreement had not been breached, we are forced to conclude that the trial court was without authority to render a decision on this note. Thus, the order was without legal effect.
{¶ 13} Appellant's first assignment of error is sustained.
{¶ 14} Appellant challenges the actions taken by the trial court in adjudicating the facts and enforcing the provisions of the promissory note. In light of our disposition of Appellant's first assignment of error, we decline to address his second assignment of error. See App.R. 12(A)(1)(c).
Judgment reversed, and cause remanded.
The Court finds that there were reasonable grounds for this appeal.
We order that a special mandate issue out of this Court, directing the Court of Common Pleas, County of Summit, State of Ohio, to carry this judgment into execution. A certified copy of this journal entry shall constitute the mandate, pursuant to App.R. 27.
Immediately upon the filing hereof, this document shall constitute the journal entry of judgment, and it shall be file stamped by the Clerk of the Court of Appeals at which time the period for review shall begin to run. App.R. 22(E). The Clerk of the Court of Appeals is instructed to mail a notice of entry of this judgment to the parties and to make a notation of the mailing in the docket, pursuant to App.R. 30.
Costs taxed to Appellee.
Exceptions.
Carr, P.J., Batchelder, J., Concur.
Reference
- Full Case Name
- Rebecca J. Gordon v. Mark H. Koltnow
- Cited By
- 1 case
- Status
- Unpublished