Nova Info Sys. v. Current Directions, 2006-L-214 (8-24-2007)
Nova Info Sys. v. Current Directions, 2006-L-214 (8-24-2007)
Opinion of the Court
{¶ 2} On January 27, 2004, appellee filed a complaint for breach of contract seeking monetary relief. Appellant filed an answer, a counterclaim, and a new party *Page 2 complaint. Trial was scheduled for February 21, 2006. However, during a pretrial conference on February 3, 2006, the parties along with a third-party defendant discussed possible settlement options. While no written settlement appears in the record, appellee maintains the parties reached an agreement which was communicated to the trial judge. On February 24, 2006, the parties filed a "mutual dismissal with prejudice." In its entirety, the dismissal read:
{¶ 3} "Now come[s] Plaintiff, Nova Information Systems, Inc. and Defendant, Current Directions, Inc., [and by] agreement of the parties, it is hereby ordered as follows:
{¶ 4} "1. The Complaint filed against Current Directions is hereby dismissed with prejudice.
{¶ 5} "2. The Counterclaim against Nova Information Systems, Inc. and Defendants' Third Party Complaint against Merchant Warehouse, Visa and Mastercard are [sic] hereby dismissed with prejudice.
{¶ 6} "3. Each party will bear its own costs."
{¶ 7} The order was signed by the trial judge as well as counsel for both parties and filed with the court.
{¶ 8} Nearly six months later, on August 4, 2006, appellee filed a "Motion to Enforce Settlement Agreement." In its motion, appellee set forth the details of the settlement which the parties purportedly entered into after their negotiations on February 3, 2006. Appellee pointed out that appellant had failed to honor the agreement and, in fact, denied the existence of the same. On August 18, 2006, appellant moved to strike appellee's motion to enforce. Appellant argued that the *Page 3 parties failed to reach a compromise after negotiations and therefore no enforceable agreement existed. Appellant pointed out that the record was devoid of any written agreement and asserted that appellee's motion was frivolous because it was filed well after the case was dismissed with prejudice. On August 24, 2006, appellee filed a reply brief opposing appellant's motion to strike.
{¶ 9} On September 7, 2006, after considering the various motions, the trial court granted appellee's motion to enforce. Appellant now appeals and asserts the following assignment of error:
{¶ 10} "The trial court erred by issuing an order granting plaintiff's motion to enforce settlement agreement on September 7, 2006, after there was an unconditional dismissal (with prejudice) of the matter filed on February 24, 2006, wherein there was no reservation of jurisdiction for the court to act further on the matter."
{¶ 11} Appellant argues the trial court erred in considering and later granting appellee's motion to enforce because the matter had been dismissed without a reservation of jurisdiction. Specifically, appellant argues that because the court unconditionally dismissed the underlying matter via its February 24, 2006 order, it lost jurisdiction to enforce the settlement purportedly entered into on February 3, 2006.1
{¶ 12} In response, appellee argues appellant failed to raise the jurisdictional issue at the lower court and therefore waived the argument on appeal. Further, even if the issue was not waived, appellee contends the trial court properly granted the motion *Page 4 because the oral settlement agreement was premised upon a valid offer, acceptance, and evidenced by consideration.
{¶ 13} We first point out that appellee's waiver argument is inaccurate. Regardless of a party's failure to object, the issue of subject matter jurisdiction cannot be waived and may be raised at any stage in the proceeding, including on appeal. In re Netotea, 11th Dist. No. 2004-T-0120,
{¶ 14} With this in mind, we recognize that a trial court possesses the authority to enforce a settlement agreement voluntarily entered into by the parties to a lawsuit. Mack v. Polson (1984),
{¶ 15} In contrast, a trial court may retain limited jurisdiction over a matter, post-dismissal, pursuant to an express condition in the underlying order. See Berger v. Riddle (Aug. 18, 1994), 8th Dist. Nos. 66195 and 66200, 1994 Ohio App. LEXIS 3623, *6; see, also, Baybutt v.Tice (Dec. 5, 1995),10th Dist. Nos. 95APE06-829 and 95APE08-1106, 1995 Ohio App. LEXIS 5402, *7. Where the parties have entered into a voluntary settlement, a court may condition a dismissal order upon the existence of a settlement agreement thereby retaining the limited jurisdiction to enforce the same. Electrical Enlightenment, Inc. v.Lallemand, 8th Dist. No. 87551,
{¶ 16} Here, the February 24, 2006 dismissal entry unconditionally dismissed the case with prejudice. Even assuming a valid settlement agreement exists, the judgment *Page 6
entry failed to include language reserving limited jurisdiction to enforce the agreement. Moreover, this court cannot reasonably construe appellant's motion to enforce the settlement as a motion for relief from judgment pursuant to Civ.R. 60(B). Showcase Homes, supra; see, also,The Cambodian Buddhist Society, Inc. v. Ke, 10th Dist. Nos. 01AP-731 and 01A-732,
{¶ 17} Appellant's sole assignment of error has merit.
{¶ 18} For the reasons set forth above, the September 7, 2006 judgment entry of the Lake County Court of Common Pleas is hereby reversed and vacated.
DIANE V. GRENDELL, J., COLLEEN MARY OTOOLE, J., concur.
Reference
- Full Case Name
- Nova Information Systems, Inc. v. Current Directions, Inc.
- Cited By
- 4 cases
- Status
- Published