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GGNSC Lima, L.L.C. v. LMOP, L.L.C.

Court of Appeals of Ohio, Eighth District, Cuyahoga

April 5, 2018

GGNSC LIMA, L.L.C., ET AL. PLAINTIFFS-APPELLEES
v.
LMOP, L.L.C., ET AL. DEFENDANTS-APPELLANTS

          Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-17-874161

          ATTORNEYS FOR APPELLANTS Drew Barnholtz, Brian J. Seitz The Seitz Law Firm, L.L.C.

          ATTORNEYS FOR APPELLEES For GGNSC Lima, L.L.C. Donald A. Mauser Jack W. Hinneberg Amanda K. Rasbach Yurechko Robert B. Weltman Weltman Weinberg & Reis Co., L.P.A., David S. Brown Rolf Goffman Martin Lang, L.L.P.

          For GGNSC Napoleon, L.L.C. Matthew G. Burg Daniel A. Friedlander Weltman Weinberg & Reis Co., L.P.A.

          ATTORNEYS FOR APPELLEES (continued) For GGNSC Saint Marys, L.L.C. Amy Clum Holbrook Weltman Weinberg & Reis Co., L.P.A.

          BEFORE: E.T. Gallagher, P.J., Stewart, J., and S. Gallagher, J.

          JOURNAL ENTRY AND OPINION

          EILEEN T. GALLAGHER, PRESIDING JUDGE.

         {¶1} Defendants-appellants, LMOP, L.L.C., et al., appeal from the trial court's judgment granting default judgment in favor of plaintiffs-appellees, GGNSC Lima, L.L.C., et al. Appellants raise the following assignments of error for review:

1. The trial court erred and/or committed reversible error and/or abused its discretion in granting default judgment.
2. The trial court erred and/or committed reversible error and/or abused its discretion in granting default judgment when no service of the complaint was made on the appellants.
3. The trial court erred and/or committed reversible error and/or abused its discretion in granting default judgment when it failed to vacate the default judgment when there was a failure of proper service, the court lacked personal jurisdiction of appellants and the judgment was void ab initio.
4. The trial court erred and/or committed reversible error and/or abused its discretion when it denied appellants' 60(B) motion.
5. The trial court erred and/or committed reversible error and/or abused its discretion in denying the appellants' Civ.R. 60(B) motion without first conducting an evidentiary hearing.

         {¶2} After careful review of the record and relevant case law, we reverse the trial court's judgment and remand for proceedings consistent with this opinion.

         I. Procedural and Factual History

         {¶3} On January 10, 2017, plaintiffs-appellees, GGNSC Lima, L.L.C., GGNSC Napoleon, L.L.C., and GGNSC Saint Mary's, L.L.C. (collectively "plaintiffs"), filed a complaint against defendants-appellants, LMOP, L.L.C, d.b.a. the Orchards Living & Rehab Center, a.k.a. The Orchards of Lima Living & Rehab Center ("LMOP"), NCOP, L.L.C, d.b.a. the Orchards of Napoleon Living & Rehab, a.k.a. The Orchards of Northcrest Living & Rehab Center ("NCOP"), and VLOP, L.L.C., d.b.a. The Orchards of St. Mary's Living & Rehab Center, a.k.a. Vancrest of St. Mary's ("VLOP") (collectively "appellants").

         {¶4} The complaint sought separate monetary judgments against the appellants for unpaid funds owed to plaintiffs pursuant to the terms of an Operation Transfer Agreement entered into by the parties in February 2014. The ...


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