In Re Creation of a Park Dist. Within Chester Twp.
In Re Creation of a Park Dist. Within Chester Twp.
Opinion
{¶ 1} The core of this appeal is the extent of the probate court's jurisdiction over a judicially created park district under R.C. Chapter 1545. The probate court invoked its own continuing jurisdiction in a case initiated by the Chester Township Board of Trustees ("Trustees") in 1984 to create the Chester Township Park District ("Park District"). The central question, as framed by the parties, is whether the probate court maintained jurisdiction over the Trustees and the township as a political entity either through the exercise of its plenary power to enforce the terms of the 1984 order creating the Park District or, otherwise, through the probate court's continuing jurisdiction over the Park District as provided in R.C. Chapter 1545.
{¶ 2} The May 10, 1984 order creating the Park District did not impose any obligations or duties. It simply created the legal entity known as the Park District, established the territorial limits of the Park District, and noticed an intent to appoint the original Park District Board of Commissioners ("Commissioners"). There are no terms in that order to be enforced in perpetuity.
See, e.g.,
Am. Motors Corp. v. Huffstutler
,
{¶ 3} Based on the statutory framework, however, we must conclude that the probate court exceeded its jurisdiction by declaring portions of an arm's-length agreement entered under R.C. 1545.14 to be invalid and imposing the costs of the master commissioner, appointed to review the Commissioners' conduct, against an unrelated political entity. In light of the demonstrated confusion over a park district's functions and the probate court's role within Chapter 1545, we must begin with the facts of this case as they relate to the statutory framework within which the Park District operates.
{¶ 4} Upon the creation of a park district, the probate court is required to appoint three commissioners to the board whose terms expire on a rotating basis for the first three years. R.C. 1545.05. Thereafter, each commissioner is appointed for a three-year term.
{¶ 5} The creation of the Park District created a legal entity, separate and apart from the township. However, the creation of the Park District did not automatically transfer any land or property over which the Park District could assert control. R.C. 1545.14 expressly provides that a park district cannot acquire or control any park, park lands, parkways, playgrounds, or other lands, or boulevards owned or controlled by any other public authority unless an agreement is reached between the park district and the public authority in possession of such lands.
{¶ 6} A park district could purchase or acquire its own property. R.C. 1545.11. Under R.C. 1545.11, the commissioners could, but were not required to, acquire
lands either within or without the park district for conversion into forest reserves and for the conservation of the natural resources of the state, including streams, lakes, submerged lands, and swamp lands, and to those ends may create parks, parkways, forest reservations, and other reservations and afforest, develop, improve, protect, and promote the use of the same in such manner as the board deems conducive to the general welfare.
The commissioners have the discretion to obtain such property through gift, purchase by cash or installment payments, or by appropriation, which can only occur through the manner provided in R.C. 163.01 to 163.22. Any gift of property must be approved by the probate court. R.C. 1545.11. The Park District has not obtained any property of its own.
{¶ 7} The second method of obtaining a purpose for a park district is through R.C. 1545.14, which is entitled "Cooperation with other public authorities." That section provides that the commissioners may enter into agreements with other legislative or public authorities in control of parks or park lands, whether within or without the park district, either (1) to assume control of all or a portion of any existing lands
or
(2) to otherwise contract or cooperate with the other public authority in connection with the "use, development, improvement, and protection of parks or park lands." (Emphasis added.)
{¶ 8} The commissioners of a park district do not need probate court approval before entering any agreement under R.C. 1545.14. The agreements are left to the discretion of the commissioners appointed to manage the park district. If the legislature had intended for the commissioners to seek probate court approval, language similar to sections 1545.11, 1545.12(B), and 1545.15, all of which require approval before the commissioners undertake specific actions, could have been included in R.C. 1545.14.
State ex rel. Cordray v. Court of Claims of Ohio
,
{¶ 9} Although it is a far better practice to define that role in writing, there is no legislative requirement that a park district enter a written contract with the public authority; it may simply "cooperate with" the other political body for the maintenance, use, and development of the park lands. There is also no statutory requirement specifying the degree of control over the park lands that the public authority must delegate to the park district. According to the unambiguous terms of R.C. 1545.14, the public authority may retain any degree of control it deems necessary in contracting or cooperating with the park district. Regardless of which option is chosen, the park district is authorized to develop, improve, and protect those lands as if the lands were acquired by the commissioners.
{¶ 10} The legislature also provided park districts with several options to obtain funding. The park district may levy a dedicated tax in an amount not to exceed one-half of one mill, but only "[a]fter the budget commission of the county in which
the district is located certifies such levy,
or such modification thereof as [the budget commission] considers advisable
, to the county auditor, he shall place it upon the tax duplicate." (Emphasis added.)
{¶ 11} In addition to the dedicated millage, the commissioners may directly submit a request for an additional tax levy to the voters by resolution. R.C. 1545.21. Outside of taxes, a park district may also receive a share of the undivided local government fund as determined by the county budget commission for the purpose of managing the park land properties. 2008 Ohio Atty.Gen.Ops. No. 08-020, at 21-22, citing R.C. 5747.51.
{¶ 12} In April 1985, the Park District and the Trustees negotiated an arm's-length agreement under R.C. 1545.14 wherein the Trustees, with "the authority and responsibility to operate and maintain park lands within Chester Township" agreed (1) to allow the Park District to assume control of all park lands owned by the township for a period of five years unless either party terminates the agreement with 90 days' advance notice; (2) that the Park District would operate, maintain, develop, improve, and protect the park lands for the residents of Chester Township and the public; (3) that subject to prior approval from the Trustees, the Commissioners could (a) enter agreements with other political subdivisions for the use and operation of the parks, (b) construct or alter permanent improvements on the park or park lands, and (c) contract for and incur debts that could result in liens being imposed on the township's park land properties; and (4) that the Commissioners must agree that no rangers or park officers shall be appointed other than police officers employed by the township. No one disputed the terms of that agreement.
{¶ 13} In 1993, following the expiration of the original agreement and a short period in which the Park District cooperated with the township to maintain the park lands without a formal agreement, the Park District and the township negotiated a second agreement nearly identical to the first. There were two material differences between the agreements: (1) the 1993 agreement was for a period of five years, to renew yearly into perpetuity, but subject to the same 90-day termination clause; and (2) the 1993 agreement was not for the stated purpose of the Park District assuming all control over the township's park lands. The Park District had a more limited role. The Park District only had the contractual authority to use, develop, improve, and protect the park lands within the township and subject to the limitations to which the Park District agreed. No one, and certainly neither of the real parties in interest to the agreement, challenged any aspect of the 1993 agreement in any court of competent jurisdiction.
{¶ 14} In the early part of 2014, an anonymously drafted "report" surfaced, entitled "Chester Township Park District 2013 Review" ("the review"). The review questioned the Park District's financial affairs. Under R.C. 1545.06, which provides that any park commissioner may be removed at the discretion of the probate judge, the probate court had continuing jurisdiction to sua sponte consider removing any one of the Commissioners based on those allegations of financial misconduct. If, in exercising its grant of continuing jurisdiction, the probate court felt it necessary to remove any Commissioner, the court was required to provide that Commissioner with at least ten days' notice ahead of the statutorily mandated public hearing. R.C. 1545.06.
{¶ 15} Upon receiving the review, the probate court appointed Attorney Mary Jane Trapp as the master commissioner under the court's "fiduciary oversight authority." During the proceedings on the master commissioner's report, the probate court clarified that its jurisdiction was derived from R.C. 2101.06 and R.C. 1545.06, although no individual Commissioner was ever put on notice that the court intended to remove any one of them from office.
{¶ 16} A master commissioner's duties under R.C. 2101.06 should not be confused with the probate court's authority to appoint an investigator as statutorily provided in other probate matters, such as guardianship proceedings. R.C. 3109.04(C) (a probate court can order an investigation, but the investigator must be made available for cross-examination at trial); R.C. 2111.042 (a probate court may appoint an investigator to review the guardianship of a minor). The statute, R.C. 2101.06, unlike other provisions in the Revised Code dealing with the authority of a probate court, does not authorize the trial court to appoint an investigator.
See, e.g.,
R.C. 2151.28(I) (a guardian ad litem's functions include "investigation, mediation, monitoring court proceedings and monitoring services provided for the child"). Generally, if a court appoints an investigator when statutorily authorized to do so, "[t]o protect the parties' due process rights, the trial court must make [the investigator] available for direct and cross-examination."
In re A.L.
, 6th Dist. Lucas No. L-10-1355,
{¶ 17} The appointment of a master commissioner under R.C. 2101.06 is analogous to the appointment of a magistrate.
See, e.g.,
State ex rel. Estate of Hards v. Klammer
,
{¶ 18} The probate court in this case tasked the master commissioner with addressing the issues raised in the review and to determine, examine, and either resolve or provide the probate court with a proposed resolution. As the probate court requested, and the master commissioner understood, her task was to investigate the allegations in the review and provide recommendations for the "best practices" under which the Park District should operate.
{¶ 19} Complicating matters, the master commissioner's report was not filed as part of the record, nor did the probate court require such. It appears that the report was provided to the probate court, published on the court's website, but never entered into the record of the proceedings. The journal entry "confirming" the report incorporates the report by reference, but the report was not attached to the judgment entry either.
{¶ 20} Both parties have invited us to consider the master commissioner's report as it was considered by the Ohio Supreme Court in
State ex rel. Chester Twp. v. Grendell
,
{¶ 21} In the master commissioner's report, the master commissioner determined upon her "research and discussions with those involved with the park district's formation" that the intent behind the Park District's creation was to keep the township politics out of the park district. The master commissioner ultimately concluded, through interviews and research, that the Park District and its employees had not committed any knowing violations of Ohio law. Several policy and procedure "recommendations" were also provided. No sworn testimony was taken, nor did the probate court require the master commissioner to do so or resolve any factual disputes. After submitting the report, the probate court made several findings of facts and conclusions of law but otherwise adopted the master commissioner's unfiled report. Judgment Entry Findings of Fact Conclusions of Law, November 26, 2014 ("Confirmation Order").
{¶ 22} At the same time the master commissioner was reviewing the allegations against the Commissioners regarding financial decisions, a state agency was conducting a formal audit of the Park District's finances relating to the same allegations. The Park District is required to present its yearly budget to the Geauga County Budget Commission and to the township trustees in order to comply with R.C. 5705.36(A)(1). As part of that process, the township fiscal officer had requested a state audit of the Park District that was under way as of the date of the master commissioner's report. It appears the probate court appointed the master commissioner to investigate that which other executive agencies were in the process of reviewing. The probate court could not have been aware of the audit at the time it appointed the master commissioner, but there was no consideration of the separate audit after the fact was disclosed in the master commissioner's report. The outcome of the audit is not in the record before us.
{¶ 23} In the Confirmation Order, the probate court went further than reviewing the conduct of the Commissioners and specifically concluded that (1) the Trustees had terminated the dedicated millage for the Park District, directly contravening the fundamental purpose for creating the Park District; (2) the 1993 agreement addressing the Trustees' contractual right to review any construction or alteration of any permanent improvement on the park lands impeded the Park District's separate purpose; (3) the Commissioners had the sole statutory authority to levy the millage under R.C. 1545.20 ; (4) the Trustees must provide funding until the Park District sets up its independent funding through dedicated millage; and (5) the Park District, the Commissioners, and the Park District's employees must comply with the recommendations made by the master commissioner regarding the "best practices" for operating a park district.
{¶ 24} The Trustees appealed the Confirmation Order, but the original appeal was dismissed for the want of jurisdiction. The Confirmation Order had not finalized the actual costs associated with the master commissioner's investigation, even though the parties were ordered to split the undetermined costs with the probate court.
In re Creation of Park Dist. Within Chester Twp.
, 11th Dist. Geauga No. 2014-G-3242,
{¶ 25} After the appeal was dismissed, the Trustees sought a writ of prohibition from the Ohio Supreme Court. In denying the writ, it was held that the Trustees "clearly have an adequate remedy in the ordinary course of the law by way of appeal."
Grendell,
{¶ 26} The probate court believed it maintained continuing jurisdiction over the Trustees based on the Ohio Supreme Court's statement that
[t]he probate court's authority to create park districts and its plenary power "to dispose fully of any matter" that is properly before it surely includes the ability to issue orders to enforce the entry creating the park district , including orders that impose duties on those interfering with the park district's purposes.
(Emphasis added.)
Id.
at ¶30. As we have already discussed, the 1984 order creating the Park District imposed no prospective obligations on any parties, much less the Trustees or the township. Although there is no question the probate court has some plenary power under its statutory grant of continuing jurisdiction, that power is not unbridled. In this regard, it is important to understand what was decided in
Grendell
and what was not. The case was an original action for a writ of prohibition. The only matter to be resolved was whether the probate court patently and unambiguously lacked jurisdiction over a specific matter.
Salloum v. Falkowski
, 11th Dist. Lake No. 2015-L-124,
{¶ 27} Nevertheless, in May and June 2016, the probate court entered two additional orders citing the Ohio Supreme Court's obiter dictum as the basis of its jurisdiction to proceed. In the May order, the probate court found certain provisions in the 1993 agreement to be in conflict with the Park District's authority and ordered the parties to negotiate a new agreement. In the June judgment entry, the probate court further held (1) that the 1993 agreement between the Park District and the township infringes on the Park District's authority to assume all control of all park lands within the territorial limits of the Park District, allegedly conflicting with R.C. Chapter 1545, and (2) that the Park District and the township must bear 75 percent of the $40,000 cost of the master commissioner under R.C. 2101.06 and 2101.07.
{¶ 28} The fees were imposed against the township under the belief that the probate court has a plenary power to prevent others from interfering with the Park District's purposes under R.C. 2101.24(C), and as a result, the court could order any such party to pay the costs of investigating the Park District's operations despite the fact that those parties had no control over the Park District's operational management. Further, the probate court held that the creation of the Park District meant that all the "township's lands used for township park purposes, regardless of the record ownership, are under the jurisdiction of the Park Board" at the expense of the title owner's property rights and R.C. 1545.14, which expressly provides any public authority the ability to delegate some authority to a park district without surrendering all control over the park lands. In light of its sua sponte findings, the probate court concluded that the portions of the 1993 agreement that vested any control over the park lands with the Trustees were not enforceable, and the township was "permanently restrained and enjoined" from enforcing or acting on any of those provisions that preserved the township's authority over its own park lands.
{¶ 29} This appeal followed in which the Trustees claim the probate court exceeded its jurisdiction by sua sponte voiding the terms of a lawful agreement entered under R.C. 1545.14 in the Confirmation Order and the June 2016 order and erred by imposing the master commissioner's fees as costs against the township.
{¶ 30} At the most basic of levels, the probate court's orders all depend on the proper invocation of the court's continuing jurisdiction over the Park District. In order for a court to exercise any judicial power or resort to its plenary power at law, it must have continuing jurisdiction over the subject matter of the dispute.
State ex rel. McGinty v. Eighth Dist. Court of Appeals
,
{¶ 31} "Probate courts are courts of limited jurisdiction and may hear only those types of cases expressly authorized by the applicable statutes."
Swift v. Gray
, 11th Dist. Trumbull No. 2007-T-0096,
{¶ 32} R.C. 2101.24 is silent with respect to the probate court's jurisdiction over park districts. Instead, R.C. 2101.24(A)(2) provides that probate courts have jurisdiction if another section of the Revised Code expressly confers jurisdiction over that subject matter upon the probate court and no other section of the Revised Code confers jurisdiction over that subject matter upon any other court or agency. A probate court's jurisdiction over a park district is, therefore, solely governed by R.C. Chapter 1545. That chapter confers upon the probate court continuing jurisdiction over a park district case in order
(1) to appoint the park district's board of commissioners, R.C. 1545.05(A) ;
(2) to expand the board to five members upon the park district's request, R.C. 1545.05(B) ;
(3) to remove any commissioners after providing a hearing and no less than 10 days' notice of the intent to do so, R.C. 1545.06 (and this may include the power to investigate certain conduct related to any one commissioner);
(4) to approve the park district's acceptance of donations of money or property, R.C. 1545.11 ;
(5) to approve the sale of lands if the lands are within the county of the probate court's territorial jurisdiction, R.C. 1545.12(B) ;
(6) to approve the annexation of any territory within the probate court's territorial jurisdiction, R.C. 1545.15 ; and
(7) to dissolve the park district if the results of a certified vote are presented to the probate court or the park district is inactive for a period of five years, R.C. 1545.36 and 1545.38.
The probate court's continuing jurisdiction as set forth in R.C. Chapter 1545 is narrow.
See
Grendell,
{¶ 33} Although the probate court has plenary power at law and in equity over some matters, those matters must be "properly before the court," i.e., based on the grant of jurisdiction. R.C. 2101.24(C) is not an independent source of the probate court's jurisdiction. Likewise, R.C. 2101.06 is not an independent source either.
Klammer
,
{¶ 34} In this case, the probate court's continuing jurisdiction over the park district matter is solely dependent on R.C. Chapter 1545. In this regard, the probate court had jurisdiction to consider the removal of the Commissioners. R.C. 1545.06. As a result, the appointment of the master commissioner to take testimony and report the testimony with respect to the potential removal of a Commissioner is not the issue.
{¶ 35} The issue before us is whether the probate court exceeded the scope of its continuing jurisdiction to consider removing any one of the Commissioners, (1) by imposing costs upon the township as a separate legal entity-incurred through the appointment of the master commissioner for the express purpose of investigating allegations of financial misconduct within the Park District and to provide consulting services to the Park District; and (2) by invalidating a contractual agreement entered between the Park District and the township defining the scope of the Park District's involvement with the township's park lands.
Mitchell
, 11th Dist. Portage No. 2007-P-0023,
{¶ 36} The grant of continuing jurisdiction under Revised Code Chapter 1545.06 is limited. The probate court exceeded its continuing jurisdiction to remove a commissioner in appointing the master commissioner to investigate all aspects
of the Park District's operations and its contractual relationship with the township and then impose those costs upon the township, a separate and distinct political body. The probate court also lacked jurisdiction to sua sponte enjoin the township from enforcing the negotiated contract terms of the 1993 agreement. The probate court's jurisdiction, as applicable in this case, is statutorily limited to determining whether to remove any of the Commissioners. More simply stated, the legislature has not provided the probate court with a general grant of fiduciary oversight over the Park District.
Grendell
,
{¶ 37} Because the trial court exceeded the grant of continuing jurisdiction, the Confirmation Order and the June 2016 order were not within the purview of the probate court's plenary power over matters properly before it under R.C. 2101.24(C). Those orders must be vacated. Once the probate court concluded that removal of the commissioners was unnecessary based on the master commissioner's report, the inquiry should have terminated. No other action was authorized by the legislature, and the township is not a party over which the probate court has continuing jurisdiction-the township has no authority to remove or appoint any of the Commissioners. The master commissioner's fees imposed as costs against the township were improper.
{¶ 38} None of this is to suggest that the Park District is without protection or recourse with respect to others interfering with the Park District's operations or in resolving contract disputes over agreements entered under R.C. 1545.14 -the two primary areas of concern upon which the probate court acted.
{¶ 39} As a separate and distinct political entity, the Park District is capable of suing and being sued in a court of competent jurisdiction.
Marrek v. Cleveland Metroparks Bd. of Commrs.
,
{¶ 40} Further, if the Commissioners feel the need to protect the Park District from outside interference, R.C. 1545.09(A) mandates that the Commissioners adopt bylaws and rules as they deem advisable for "the preservation of good order within and adjacent to parks and reservations of land, and for the protection and preservation of the parks, parkways, and other reservations of land under its jurisdiction and control and of property and natural life therein." If the Commissioners enact
bylaws to preclude others from interfering with the good order and maintenance of the park district, there are statutory procedures and penalties available for relief that the park district could pursue in a court of competent jurisdiction.
{¶ 41} Despite the limitations on the scope of the probate court's continuing jurisdiction, the Park District, as a separate and distinct political entity, has statutory mechanisms at its disposal to protect its rights and those of the public it serves.
{¶ 42} We sustain the two assignments of error. 2 Although the probate court possessed continuing jurisdiction to consider removing any of the Commissioners as the current proceedings originated, the scope of that jurisdictional grant of authority was limited. The probate court exceeded its jurisdiction by imposing the master commissioner's fees as costs against an unrelated political agency and by considering the validity of a contractual agreement entered between two separate and distinct political entities. We reverse and vacate the Confirmation Order and June 2016 order.
{¶ 43} It is ordered that appellant recover from appellee costs herein taxed.
{¶ 44} The court finds there were reasonable grounds for this appeal.
{¶ 45} It is ordered that a special mandate be sent to said court to carry this judgment into execution.
{¶ 46} A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
WILLIAM A. KLATT, J., Tenth Appellate District, sitting by assignment,
PATRICK M. MCGRATH, J., Retired, Tenth Appellate District, sitting by assignment, concur.
It is not clear from the record under what authority the township could eliminate a county tax without the county budget commission's approval or action. The county budget commission is responsible for making any decisions whether to reduce or modify a tax levy of a park district. 2008 Ohio Atty.Gen.Ops. No. 08-020, at 21; R.C. 1545.20.
The Trustees had filed a motion to stay the lower court's proceedings following the filing of this appeal. During the appellate proceedings, the Trustees supplemented the record with a decision from Judge John J. Lohn, who sat by assignment in the probate proceedings after Judge Timothy J. Grendell recused himself from the proceedings, which occurred while this case was on appeal and was outside the scope of our review. The decision issued by Judge Lohn appears to have resolved the issues raised in the motion to stay, and we deny it as moot.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.