Goforth v. Le-Air Molded Plastics, Inc., Unpublished Decision (7-1-2004)
Goforth v. Le-Air Molded Plastics, Inc., Unpublished Decision (7-1-2004)
Opinion of the Court
{¶ 3} According to the facts in the first case, appellant and appellee entered into a stock purchase agreement on May 16, 1995. The parties were never able to agree on a fair market value, and their relationship deteriorated as a result. On August 4, 1995, appellee filed an action seeking injunctive relief and monetary damages from appellant to which appellant filed counterclaims. On August 20, 1996, at the final pretrial conference, the parties ostensibly settled the case.1 The trial court issued a judgment entry stating "case was settled and dismissed with prejudice, no record, with each party to bear their own costs and attorney fees." In addition, a judgment entry memorializing the settlement was approved and journalized on October 3, 1996.2 On November 1, 1996, appellant filed a notice of appeal, appealing from the trial court's journal entry memorializing the settlement terms. This honorable court remanded the case back to the trial court for the limited purpose of ruling on a Civ.R. 60(B) motion.
{¶ 4} On January 31, 1997, the parties entered into another settlement agreement, this time on the record.3 The agreement, along with various motion rulings, was journalized on February 3, 1997.4 On January 15, 1998, appellee filed a motion to show cause stating that appellant was not complying with the terms of the settlement agreement. On February 18, 1998, appellant filed a second lawsuit.5 On March 13, 1998, the trial court conducted an oral hearing on appellee's motion to show cause. The motion was granted and the trial court held appellant in contempt of court, fined her $250, and ordered her to pay $27,390 in attorney's fees to the appellee. In addition, the trial court dismissed the instant action on the grounds that it was frivolous and without merit.6 Appellant appealed, and on February 24, 2000, this honorable court affirmed in part and vacated in part the trial court's decision, denying all of appellant's assignments of error, except one. The only assignment of error this court granted stated that the trial court erred in dismissing the instant matter because it was on another court's docket.7
{¶ 5} That brings us to the appeal sub judice. On January 31, 2002, appellant filed a motion for summary judgment. On March 4, 2002, appellee filed an opposition to the motion for summary judgment. Ultimately, on November 15, 2002, the trial court granted appellee's motion for summary judgment and denied appellant's motion for summary judgment. Appellant is now appealing the trial court's ruling.
{¶ 7} Due to the substantial interrelation between the two assignments of error and for the sake of judicial economy, we will address appellant's assignments of error together. Civ.R. 56 provides that summary judgment may be granted only after the trial court determines: 1) no genuine issues as to any material fact remain 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 but to one conclusion and viewing such evidence most strongly in favor of the party against whom the motion for summary judgment is made, that conclusion is adverse to that party. Norris v. Ohio Std. Oil Co. (1982),
{¶ 8} It is well established that the party seeking summary judgment bears the burden of demonstrating that no issues of material fact exist for trial. Celotex Corp. v. Catrett (1987),
{¶ 9} In Dresher v. Burt (1996),
{¶ 10} This court reviews the lower court's granting of summary judgment de novo. Brown v. Scioto Bd. of Commrs. (1993),
{¶ 11} It is with the above standards in mind that we now address the case sub judice. The parties entered into a settlement agreement journalized on October 3, 1996. This settlement agreement stated that "all claims of any party to this litigation against any other party to this litigation are released and declared fully satisfied and discharged * * *."8 There were some disagreements after the settlement agreement so the trial court allowed the parties to work out their problems with another settlement agreement, this time on the record. Again, this settlement agreement was to be a final release and discharge. The trial court stated at the start of the hearing that it wanted the record to reflect that the hearing was being conducted to memorialize a settlement agreement.9 This settlement agreement was to be a final judgment settling the issue forever.
{¶ 12} "The Court: Just so the parties understand, I thought that on aprevious date this matter had been settled completely between theparties. I'm not casting aspersions at anyone but we try to achievefinality with judgments and settlements. Yet even after that settlementwas reached in my courtroom, after a fair amount of time all of us tookto resolve it, an appeal followed, a motion for relief from judgmentfollowed in my courtroom and I just want to make sure that this does notcome back to me as an action to enforce a settlement or to resolve orclarify terms. If you have other causes of action, I suppose, you canfile them but you file them not under this case. Should I be fortunateenough to be drawn as the judge to hear the matter, I will hear it orrecuse myself, if someone feels I wouldn't be appropriate to handle itbut that is why I raised the issue about dismissing the claims andsettling those forever. I'm just giving you an opportunity to set fortheverything that you really think may be troubling you, if there isanything troubling you about the settlement today. {¶ 13} "Mr. Jordan: There is nothing further from the Plaintiffs, yourHonor. Thank you."10
{¶ 14} (Emphasis added.)
{¶ 15} The record above demonstrates that both parties understood that they had reached a final settlement.
{¶ 16} Appellant states that the trial court erred regarding her claims of unjust enrichment and the covenant not to compete. These claims arise from the settlement agreement the parties previously entered into. Ohio courts have held that enforcement of a valid settlement agreement may be sought either by filing an independent action sounding in breach of contract or pursuant to Civ.R. 15. "* * * Relief may be sought through the filing of an independent action sounding in breach of contract, or it may be sought in the same action through a supplemental pleading filed pursuant to Civ.R. 15(E), setting out the alleged agreement and breach."Boster v. C M Services Inc. (1994),
{¶ 17} The modern view of res judicata embraces the doctrine of collateral estoppel, which basically states that if an issue of fact or law actually is litigated and determined by a valid and final judgment, such determination being essential to that judgment, the determination is conclusive in a subsequent action between the parties, whether on the same or a different claim. A party precluded under this principle from relitigating an issue with an opposing party likewise is precluded from doing so with another person unless he lacked a full and fair opportunity to litigate that issue in the first action, or unless other circumstances justify, according him an opportunity to relitigate that issue. Hooverv. Transcon. Ins. Co., Greene App. No. 2003-CA-46, 2004-Ohio-72.
{¶ 18} In recent years, this court has not limited the application of the doctrine of res judicata to bar only those subsequent actions involving the same legal theory of recovery as a previous action. InNatl. Amusements, Inc. v. Springdale (1990),
{¶ 19} In the case at bar, the parties entered into at least two final settlement agreements. These agreements were designed to be a full and final release; indeed, the settlement agreement memorialized on January 31, 1997 demonstrates that fact.12 Furthermore, the trial court's October 3, 1996 judgment entry also states that this is a full and final release.13
{¶ 20} Moreover, even though appellant was given the opportunity to raise her additional claims at the subsequent show cause hearing, she failed to do so. In addition to being barred by the doctrine of res judicata, appellant is similarly barred by the doctrine of waiver and the doctrine of laches.
{¶ 21} Appellant has waived her ability to modify the settlement terms. "A waiver is a voluntary relinquishment of a known right. It may be made by express words or by conduct which renders impossible a performance by the other party, or which seems to dispense with complete performance at a time when the obligor might fully perform. Mere silence will not amount to waiver where one is not bound to speak." White Co. v.Canton Transp. Co. (1936),
{¶ 22} In addition to waiver, appellant's actions are barred by the doctrine of laches. The elements of laches are (1) unreasonable delay or lapse of time in asserting a right, (2) absence of an excuse for the delay, (3) knowledge, actual or constructive, of the injury or wrong, and (4) prejudice to the other party. Prejudice is not inferred from a mere lapse of time. State ex rel. Polo v. Cuyahoga Cty. Bd. of Elections
(1995),
{¶ 23} Based on the record and evidence above, the argument put forth in appellant's motion for summary judgment was properly denied by the trial court. The evidence put forth, the record, the settlement agreement, res judicata, waiver, and laches all support the trial court's decision. The decision of the trial court is hereby affirmed.
It is ordered that appellee recover of appellant its 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.
Celebrezze, Jr., j., concurs; Corrigan, A.J., dissents (see dissentingopinion attached.)
Dissenting Opinion
{¶ 24} I respectfully dissent from the majority opinion because I believe we lack a final appealable order and must dismiss. When the court granted summary judgment on Le-Air's counterclaim for abuse of process and attorney fees, it failed to award any damages. Generally, orders determining liability in the plaintiff's favor and deferring the issue of damages are not final appealable orders because they do not determine the action or prevent a judgment. State ex rel. A D Ltd. Partnership v.Keefe (1996),
Case-law data current through December 31, 2025. Source: CourtListener bulk data.