Articles Posted in Supreme Court of Ohio

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The Supreme Court affirmed the judgment of the court of appeals granting a writ of quo warranto sought by the attorney general and ordering the dissolution of Omar Ibn El Khattab Mosque, Inc., holding that the corporation’s failure to adhere to statutory requirements amounted to a surrender of the corporation’s rights and privileges necessitating the remedy of dissolution. Following its inception, the corporation failed to comply with corporate formalities, leading to internal disagreements. A rift subsequently formed between members of the corporation’s congregation, and competing boards of directors were elected, both claiming authority over the corporation and its charitable funds. The leadership struggle led to the funds being frozen and transferred to the Franklin County Clerk of Courts. The attorney general later brought this action seeking to dissolve the corporation. The court of appeals granted the writ and remanded the matter to the court of common pleas to supervise the winding down of the corporation and appoint a trustee or receiver to oversee the creation of a successor entity. The Supreme Court affirmed, holding that the facts established a causal link between the failure to observe corporate formalities and the congregation’s schism and the loss of charitable funds. View "State ex rel. DeWine v. Omar Ibn El Khattab Mosque, Inc." on Justia Law

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The Supreme Court granted a peremptory writ of prohibition to halt an action for an assignment for the benefit of a disbarred attorney’s creditors (the ABC action) pending before a Hamilton County probate judge. In 2004, nineteen judgment creditors filed a lawsuit alleging that the attorney at issue had stolen millions of dollars in settlement funds while representing them. A Kentucky trial court ruled that the attorney was jointly and severally liable for $42 million. The court of appeals affirmed. In 2013, the Kentucky Supreme Court permanently disbarred the attorney for his conduct in the underlying representation. In 2015, a Boone County circuit court judge ordered the attorney to transfer his beneficial interest in a company, which were held in trust for the purpose of winding up operations, to the creditors. The attorney did not transfer the shares to the creditors, and the shares were later transferred. The Supreme Court granted the creditors’ motion for a peremptory writ of prohibition barring further proceedings in the ABC action, holding that the necessary elements for a writ of prohibition to issue were all present in this case. View "State ex rel. McGirr v. Winkler" on Justia Law

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Appellants and Grady Reed were shareholders in a closely held corporation. In a 2010 complaint, Reed alleged that Appellants had breached the shareholders’ agreement and demanded relief in the form of money damages. After a jury trial, Judge Richard Ferenc granted Reed’s motion for a directed verdict and awarded him money damages, apportioning the liability among Appellants in proportion to their shares in the corporation. The court of appeals reversed, concluding that the trial court erred by treating the complaint as an action for money damages when the only available remedy was specific performance. On remand, Judge Ferenc concluded that Appellants had no right to a jury trial because Reed’s predominant claim for relief was equitable in nature. Appellants sought a writ of prohibition arguing that Judge Ferenc’s exercise of judicial power was unauthorized by law and that they did not have an adequate remedy by way of appeal from his adverse rulings. The court of appeals granted Judge Ferenc’s motion to dismiss the complaint. The Supreme Court affirmed, holding that Appellants failed to establish their entitlement to a writ of prohibition. View "State ex rel. Samarghandi v. Ferenc" on Justia Law