Darrow v. Zigan, 07ca25 (5-1-2009)
Darrow v. Zigan, 07ca25 (5-1-2009)
Dissenting Opinion
{¶ 31} I agree that the lack of a final appealable order precludes us from addressing Darrow's third assignment of error. However, I dissent from the majority's rejection of her first and second assignments of error. The majority correctly states the general rule that in the absence of malice, there can be no malpractice claim by a third party against an attorney for action taken during the representation of a client unless there is privity between the third party and the client.Scholler, supra, and LeRoy, supra. However, I believe a different rule applies where the attorney expressly *Page 17 makes a promise, gratuitous or otherwise, to benefit the third party. Here Zigan purportedly voluntarily undertook a duty to file the deed. Thus, neither he nor his employer were entitled to summary judgment. *Page 18
The Court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this Court directing the Hocking County Common Pleas Court to carry this judgment into execution.
Any stay previously granted by this Court is hereby terminated as of the date of this entry.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure. Exceptions.
Kline, P.J.: Concurs in Judgment and Opinion.
Harsha, J.: Concurs in Part and Dissents in Part with Opinion. *Page 1
Opinion of the Court
{¶ 2} In her first two assignments of error, Appellant contends the trial court erred in granting Zigan and Linehan's summary judgment motions because she was a third party beneficiary of Zigan's representation. In her third assignment of error, she asserts the trial court erred in denying her motion for summary judgment in her declaratory action against Fairfield Collections. Because she cannot establish she is in privity with her former husband's attorney, her first two assignments of error have no merit. As to Appellant's third assignment of error, because the trial court's decision denying her motion for summary judgment does not constitute a final appealable order, it is dismissed. Accordingly, we overrule Appellant's first two assignments of error, dismiss her third assignment of error, and remand the matter to the trial court for further proceedings.
{¶ 4} It is undisputed that Zigan represented Darrow, not Appellant, in the dissolution. Appellant signed an acknowledgment and waiver which reads, in pertinent part: "I, Kathy Darrow, hereby acknowledge that Attorney Steven E. Zigan represents Joseph Darrow, Jr. in our dissolution. I have been informed that Attorney Steve Zigan does not represent me and that I may have an attorney of my own choosing to represent me in this matter. It is my informed choice to proceed with this dissolution without counsel."
{¶ 5} The separation agreement drafted by Zigan contained a real property provision regarding their home, located in Hocking County, Ohio, and a separate sixty acre parcel of land in Jefferson County, Ohio. The provision reads, in pertinent part: "The husband agrees to quit-claim his interest in these properties to the wife. In the event that the husband fails to timely quit-claim his interest to the wife, the parties agree that this document will serve to quit-claim any interest that he may have in this property." The dissolution of the marriage became final on October 6, 2004. Appellant states that, on that date, Zigan promised her that he would prepare and file the quit claim deeds the next day.
{¶ 6} Appellant states Zigan was aware that both she and Darrow were concerned about a potential action by Fairfield Bank to recover on a promissory note that Darrow had executed some years earlier. Appellant *Page 4 was not a signatory to the note and it was executed before her marriage to Darrow. Appellant states the parties intended to transfer the home and the sixty acre parcel in the dissolution in order that "it would avoid her having to pay or use the assets of the house or equity in the house to pay for Dr. Darrow's debts." The quit-claim deeds to the two properties in question were executed by Darrow in February, 2005. However, Zigan did not file the deeds until months later; the house deed was filed in July, 2005, the deed for the sixty acres was filed in August.
{¶ 7} In March, 2005, before Zigan had filed the deeds, a certificate of judgment in the amount of $81,667.67 was filed against Darrow in favor of Appellee Fairfield Collections, as assignee of Fairfield Bank, on the promissory note Darrow had previously executed. The certificate of judgment purportedly created a judgment lien against the real property owned by Darrow in Hocking County, including Darrow and Appellant's home. Appellant contends that if Zigan had filed the quit-claim deeds in a timely fashion, the judgment lien would not have attached to the home.
{¶ 8} Appellant filed a complaint against Zigan, and Appellee James M. Linehan Associates as Zigan's employer, for failing to timely prepare and record the deeds, thus resulting in the lien being placed against the home. The complaint also seeks a declaratory judgment against Fairfield *Page 5 Collections declaring that any property owned by Appellant in Hocking County is free and clear of Fairfield's certificate of judgment.
{¶ 9} Appellant filed a motion for summary judgment against Fairfield Collections as to the validity of the judgment lien. On May 17, 2006, in a one line journal entry, the trial court denied Appellant's motion for summary judgment in her declaratory action against Fairfield. Subsequently, Appellees Zigan and Lineman also filed motions for summary judgment. On September 20, 2007, again in a one line journal entry, the trial court granted both Zigan and Lineman's motions for summary judgment. On October 10, 2007, the trial court dismissed the case, filing an entry which reads in its entirety, "All matters in the cause have been decided. Case dismissed. There is no just cause for delay." Appellant's current appeal asks us to reverse the trial court's decision on each of the three motions for summary judgment.
I. THE TRIAL COURT ERRED IN GRANTING SUMMARY JUDGMENT IN FAVOR OF THE DEFENDANTS ZIGAN AND LINEHAN WHERE THE PLAINTIFF WAS THE IDENTIFIED AND INTENDED THIRD PARTY BENEFICIARY OF THE REPRESENTATION.*Page 6II. THE TRIAL COURT ERRED TO THE DETRIMENT OF PLAINTIFF BY SUSTAINING THE DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT.
III. THE TRIAL COURT ERRED TO THE DETRIMENT OF PLAINTIFF BY DENYING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT AGAINST DEFENDANT FAIRFIELD COLLECTIONS.
{¶ 11} When reviewing a trial court's decision regarding a motion for summary judgment, appellate courts must conduct a de novo review.Doe v. Shaffer,
{¶ 12} A trial court may grant a motion for summary judgment only when: 1) the moving party demonstrates there is no genuine issue of material fact; 2) reasonable minds can come to only one conclusion, after the evidence is construed most strongly in the nonmoving party's favor, and that conclusion is adverse to the opposing party, and; 3) the moving party is entitled to judgment as a matter of law. Civ. R. 56; see, also, Bostic v. *Page 7 Connor (1988),
{¶ 13} "[T]he moving party bears the initial burden of demonstrating that there are no genuine issues of material fact concerning an essential element of the opponent's case. To accomplish this, the movant must be able to point to evidentiary materials of the type listed in Civ. R. 56(C) * * *." Dresher v. Burt (1996),
{¶ 15} There is no dispute that Zigan represented Darrow, not Appellant in their dissolution. Appellant signed a waiver and acknowledgement stating she understood this fact and that she was proceeding in the dissolution without counsel. In Ohio, attorneys have qualified immunity against the claims of third parties which arise from actions taken while representing their clients. Scholler v.Scholler (1984),
{¶ 16} In the case sub judice, Appellant's claims against Zigan and Linehan arise strictly from Zigan's representation of Darrow during the dissolution. She argues that because Zigan did not timely file the quit-claim deeds to the properties in question, she was unable to obtain title to them before Fairfield Bank obtained a judgment lien. Because Zigan was acting solely as Darrow's attorney during the dissolution, and because Appellant has not argued that Zigan acted with malice, Appellant must be able to show *Page 9 that she was in privity with Darrow in order to maintain her action against Zigan and Linehan as Zigan's employer. We note that Appellant expressly states in her brief that "privity is not needed for liability in this case." As shown by the decisions of the Supreme Court of Ohio inScholler and LeRoy, Appellant is mistaken in this belief.
{¶ 17} Because privity must be established for Appellant to maintain her action, we next examine whether Appellant was in privity with Darrow for purposes of their dissolution. Appellant states that she "was specifically intended to be the beneficiary of Appellee Zigan's undertaking" and that Darrow employed Zigan expressly to protect her from Darrow's creditors. Further, Appellant states that by failing to timely file the quit claim deeds, Zigan frustrated Darrow's intent. We do not find Appellant's arguments persuasive.
{¶ 18} In Scholler, a mother, both individually and on behalf of her minor son, brought suit against her former attorney for services he provided during her separation from her husband. The complaint contained a claim that the son was also entitled to recover for the attorney's malpractice. The mother argued that an attorney is liable to a minor child when the attorney negligently negotiates and prepares the child support provisions of a separation agreement. The Supreme Court of Ohio disagreed and *Page 10 determined that there was no privity between the mother and son for purposes of the son's malpractice claim. In so finding the Court stated, "* * * the interests of a spouse in a separation agreement leading to the dissolution of marriage are not the same as those of a minor child of a marriage. As such, an attorney who represents a spouse in the negotiation of a separation agreement does not simultaneously, automatically represent the interests of a minor child of the marriage."Scholler at 104.
{¶ 19} In Strauch v. Gross (1983),
{¶ 20} In the case sub judice, it is undisputed that no attorney-client relationship existed between Appellant and Zigan. Further, following the rationale in the cases cited above, Appellant was not in privity with Darrow. In Scholler, even though provisions for child support had to be included in the separation agreement, and the child would obviously be the beneficiary of such provisions, and it was the intent of the mother that the child should receive such support, the Court found that there was no privity because their interests were not the same. Similarly, though Appellant was the beneficiary of the quit claim-deeds, and even though both Appellant and Darrow had some common purpose in the dissolution, this does not establish privity. By it's very nature, a dissolution of marriage, though not an adversarial procedure, involves conflicting aims and objectives. Ultimately, the interests of the parties in a dissolution are not the same. Further, Appellant has provided us with no authority, nor have we found any in our own search, which indicates that privity, for the purposes of finding legal malpractice, exists between ex-spouses in such a situation.
{¶ 21} Accordingly, on this issue, we find that there are no genuine issues of material fact left to be determined and that Appellees Zigan and *Page 12 Linehan are entitled to summary judgment as a matter of law. Because Zigan and Linehan had qualified immunity from Appellant's third-party claims, and because Appellant is unable to establish the privity exception to that immunity, she is unable to maintain a cause of action against them. Appellant's first two assignments of error are overruled.
{¶ 23} Under Ohio law, if an order is not final and appealable, appellate courts have no jurisdiction to review it. General AccidentInsurance. Co. v. Insurance Co. of North America (1989),
{¶ 24} An order is a final appealable order when it is "* * * [a]n order that affects a substantial right in an action that in effect determines the action and prevents a judgment * * * ." R.C.
{¶ 25} "When an action includes multiple claims or parties and an order disposes of fewer than all of the claims or rights and liabilities of fewer than all of the parties without certifying under Civ. R. 54(B) that there is no just cause for delay, the order is not final and appealable." Dodrill v. Prudential Insurance. Co., 4th Dist. No. 05CA13,
{¶ 26} In the case sub judice, the trial court's October 10, 2007, judgment entry states as follows: "All matters in the cause have been decided. Case dismissed. There is no just cause for delay." While the trial court denied Appellant's motion for summary judgment against Fairfield on May 17, 2006, in a one line judgment entry, at no point in the proceedings below did it make further determinations regarding Appellant's declaratory judgment action against Fairfield.
{¶ 27} "The denial of a motion for summary judgment generally is considered an interlocutory order not subject to immediate appeal."Stevens v. Ackman,
{¶ 28} Further, Appellant is seeking a declaratory judgment against Fairfield, yet the trial court has made no declarations of the parties' rights and obligations. "As a general rule, a trial court does not fulfill its function in a declaratory judgment action when it fails to construe the documents at *Page 15
issue. Hence the entry of judgment in favor of one party or the other, without further explanation, is jurisdictionally insufficient; it does not qualify as a final order." Highland Business Park, LLC v. Grubb Ellis Co., 8th Dist. No. 85225,
{¶ 29} In the case sub judice, Appellant's action seeking a declaratory judgment against Fairfield has yet to be resolved. Until that time, there can be no final appealable order as to Appellant's third assignment of error. Accordingly, to the extent that it dismisses Appellant's declaratory action against Fairfield, we vacate the trial court's judgment entry of October 10, 2007, and remand the matter to the trial court for further proceedings.
JUDGMENT AFFIRMED IN PART, DISMISSED IN PART, AND CAUSE REMANDED.
Reference
- Full Case Name
- Kathy Lynn Darrow v. Steven E. Zigan, Esq.
- Cited By
- 3 cases
- Status
- Unpublished