IN THE SUPREME COURT OF OHIO^'f9' ^^^^^

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BERNARD NIEDERST

Plaintiff-Appellee,Supreme Court No. 14-1202

On ,Appeal from thev. . Cuyahoga County Court of

Appeals, Eighth Appellate DistrictDAVID B. NIEDERST, et al.,

Court of AppealsDefendants-Appellants. , Case No. CA-13-100616

APPEI.I.A.NTS' MC?TION'T'O STAY EXECUTION OF JUDGMENT(REVISED IN ACCORDANCE WITH S.CT.PRAC.R. 3.13)

Jon J. Pinney (007276I.) (COUNSEL OF RECORD)Justine Lara Koni.cki (0086277)KOHRMAN JACKSON & KRANTZ PLLOne Cleveland Center - 20th Floor1375 East Ninth StreetCleveland, Ohio 441.14Telephone: (216) 696-8700Fax: (216) 621-6536

Counsel for Appellants David B. Niederst, 1Vlichael D. Niederst, Niederst1{lanagenient, Ltd., Niederst A1anagement Group, Ltd., Nied.erst Management Group11, Ltd., Niederst 1Vlanagement Group HI, Ltd., Niederst lt!lanagetnent Group IV,Ltd., Henninger Apartments, LLC, Niederst Older• River Yacht Club, LLC, NiederstWyoga Lake, LLC, Niederst Richmond Park, LLC, Niederst Blossom GJillage, LLC,Frv-Elyria, LLC, Evergreen Residential Partners, LLC, Niederst Parma WoodsApartments, LLC, Sunset Townhouses, LLC, INTiederst Bent Tree, LLC, NiederstIndian Hills, LLC, Niederst Erie Shore, LLC, 12834-12836 State Rd, LLC, NiederstLake Park Towers, LLC, .1i,riederst Richmond Hills, LLC, Niederst Forest, Ridge, LLC,Westbury Holdings, LLC, and 9800 Tower, LLC

Michael Stavnicky (0063726) (COUNSEL OF RECORD)T. Christopher O'Connell (0075395)SINGERMAN, MILLS, DESBERG & KAUNTZ CO., L.P.A.3333 Richmond Road, Suite 370Beachwood, Ohio 44122

Counsel for Appellee Bernard Niederst

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Pursuant to S.Ct.Prae.R. 7.01(A)(3), Appellants David B. Niederst, Michael

D. Niederst, Niederst Management, Ltd., Niederst Management Group, Ltd.,

Niederst Management Group Il, Ltd., Niederst Management Group III, Ltd.,

Niederst Management Group IV, Ltd., Henninger Apartments, LLC, Niederst Older

River Yacht Club, LLC, Niederst Wyoga Lake, LLC, Niederst Richmond Park, LLC,

Niederst Blossom Village, LLC, Frv-Elyria, LLC, Evergreen Residential Partners,

LLC, Niederst Parma Woods Apartments, LLC, Sunset Townhouses, LLC, Niederst

Bent Tree, LLC, Niederst Indian Hills, LLC, Niederst Erie Shore, LLC, 12834-

12836 State Rd, LLC, Niederst Lake Park Towers, LLC, Niederst Richmond Hills,

LLC, Niederst Forest Ridge, LLC, Westbury Holdings, LLC, and 9800 Tower, LLC

(individually, a "Niederst Defendant" and collectively, the "Niederst

Defendants"), by and through counsel, hereby move this Court for an order staying

execution of the judgment that was reentered in favor of Appellee Bernard Niederst

on June 10, 2014. Certified copies of the decision of the Eighth District Court of

Appeals and judgment entry being appeal are attached as Exhibit 1 and 2,

respectively.

The purpose of this stay is to permit sufficient and. reasonable time for this

Court to consider the Niederst Defendants' request for a jurisdictional appeal as

will be set forth in their forthcoming Jurisdictional Memorandum.

The Cuyahoga Court of Common Pleas did not require a supersedeas bond

when it issued a stay of execution in this matter on June 24, 2014. Accordingly,

{K03889 35.1; 2

Appellants respectfully request that no supersedeas bond be set during the

pendency of this appeal to the Ohio Supreme Court.

Respectfully submitted.,

Counsel of Record

Jon

Counsel for AppellantsDavid B. Niederst, et al.

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CERTIFICATE OF SERVICE

The undersigned hereby certifies that on this 21st day of Jtily, 2014, a copy of

the foregoing IVlotion to Stay Execution was sent via Regular U.S. Mail, postage pre-

paid, to the following:

Michael 5tavni,ckyT. Christopher O'Connell

SINGERINIAN; MILLS, DESBERG & KAUNTZ CO., L.P.A.3333 Richrnond. Road, Suite 370

Beachwood, Ohio 44122

Counsel for AppelleeBernard 1Vieders

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JUN X. 5 2014

Court of RpPeaN of OTjf oEIGHTH APPELLATE DI5T1Z.1CT

COUNTY OF CUYAHOGA

J^'U:ft;NAL ENTRY AND OPINIONNo, 100616

BE A NI^ ^ ^ST

PLAINTIFF-APPELLANT

vs.

DAVID B. NIEDERST , ET AL.

^EFENDAMl"S-APYELLEES

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JUDGMENT:REVERSED

Civil Appeal from theCu.yahoga County Court of Common Pleas

Case No. CV-13-814870

BEFORE: Stewart, J., Celebrezze, P.J., and S. Gallagher, J.

RELEASED AND JOURNALIZED: June 5, 2014

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ATTORNEYS F'OR APPELLANT

Michael R. StavnickyT. Christopher O'ConnellSingerman, Mills, Desberg, & Kauntz Co., L.P.A.33331R,ichmond. Road, Suite 370Beachwood, OH 44122

ATTORNEY FOR APPELLEES

don J. PinneyKohrman Jackson & Krantz P.L.L.One Cleveland Center1375 East Ninth StreeV, 20th. FloorCleveland, OH 44114 FILED AND JOURNALIZED

PER APP-R, 22(C)

JUN X 5 2014

CUYAh10GA COUNTY CLERKOF TH^C7URT OF APPEALS

Deputy

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TqELvDY J. STEWART, J.:

^^[ 1) This case caine to be heard upon the accelerated calendar pursuant

to App.R. 11.1 and Loc.R. 1.1.1.. Plaintiff-appellant Bernard Niederst obtained

a cognovit judgment in the amount of $750,000 against his brother and business

partner, defendant David Niederst and various companies apparently associated

with him. Seven days later, the court issued a journal entry indicating that it

held a"hearxng>' and, as a result of the hearing, vacated Bernard's judgm.ent.

Bernard appeals, claiming that the court acted improperly by, among other

things, vacating the cognovit judgment because there was no motion for relief

from judgment before the court.

{¶2j It is a"bedrock. principle of appellate practice in Ohio * * * that an

appeals court is limited to the record of the proceedings at tri.al." Morgan v,

Eads, 104 Ohio St.3d 142, 2004-Ohio-6110, 818 N.E.2d 1:157, T 13. The record

in this appeal is sparse, to say the least. As relevant to this appeal, it consists

only of the cognovit complaint, the cognovit judgment, and a journal entry

stating:

On 10/02/2013, Plaintiff filed a cognovit complaint and judgmentwas rendered in favor of Plaintiff by confession in the amount of$750,000. A hearing was held on 10/09/2013. As a result of tliehearing, the 10/02/2013 judgment in favor of Plaintiff is herebyvacated. A hearing is scheduled for 10/18/2013, at 2:30 parn. onplaintiffs oral motion to reconsider. Notice issued.

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j^l ^ j 1 xie I"eC or'd does ilo[, coii[ dlr^. a it:zfiLori t,u ^^aca^.e L 7^ cogliovi1l , J uu^^.^ies^ ^,

and David does not deny that he did not file a motion for relief from judgment.

He argues, without citation to legal precedent, that the court could act on its own

initiative to vacate the cognovit judgment. In fact, we have consistently held

that "[a] trial court has no authority to sua sponte vacate its own. final orders"

because "Civ.R. 60(B) provides the exclusive means for a trial court to vacate a

final judgment." CAC Ilorne Loans Servicing, LP v. Ilenderzson, 8th Dist.

Cuyahoga No. 98745, 2013-()hio-275, ¶10 (citations omitted). With no motion

for relief from judgment filed in conformity with Civ.P-.. 60(B), the court had no

authority to act sua sponte to vacate the cognovit judgrrzerit. See also Schmahl

u.Pnwers, 8th.Dist. C9a.;yahogaNo. 99115, 2013-0hion3241, ^ 13. C}ur disposition

of this appeal is thus dictated. by the sparse record on appeal.

{^j4} David appears to suggest that the court considered arx oral motion for

relief from judgment by asserting that the parties met in ch.arnbers with the trial

ju.dge and engaged in a "vigorous debate" on the merits of the cognovit judganent.

See.Appellee's Brief, fn. 1. The Ohio Supreme Court has suggested in dicta that

"[n]o procedure is provided in the Civil Rules for the securirig of relief from a

judgment under Civ.R. 60(B)'0y mearis of an oral motion." Lamar v. Marbury,

69 Ohio St.2d 274, 276, 431 N.E.2d 102 (1.982), ftx. 4. Even if dicta, the Sup.reme

Court's observations are well-founded. Civ.R. 60(B) states that an application

for relief from ;77dgment shall be made by nl.otion as prescribed by the Rules of

Civil Procedure. • requires ._ 7t^.(,^ 1Ul.ir'nlg a 't. l <v.^iV.R. 7(13)(1) I.E1o( ..ioiJ.^u 12o P, iLia ct hear-ilig or

trial to be submitted "in writing." We therefore agree with Lamar that it is

"self-evident" that, a trial court cannot grant reli.effrom a final judgment on an

oral rnotion. Lamar, supra. While the record indicates that the court held a

"hearing," we do not know what transpired at that "hearing." With the absence

of any wra.tten motion for relief from judgment or any indication by the court that

David actually submitted a motion for relief froin judgment, we liave no choice

but to sustain the first assignment of error. The remaining three assignment.s

of error are moot.

(1-0$ This cause is reversed to the trial court for further proceedings

consistent with this opinion.

It is orci.ered that appellant recover of a.ppellees his costs herein taxed.

The court finds there were reasonable grounds for this appeal.

It is ordered that a special mandate issue out of this court directing the

Cuyahoga County Court of Common Pleas to carry this judgment into execution.

A certified copy of this entry shall constitute the mandate pursuant. to

Rule 7cifiiZato

t R e pProcedure.

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ELO 'Y J. STEWART, JUDGE

FRA ^. CELE]3REZZE, JR., P.J., andSFA C AL1_aAGRER, J., CONCUR

CC 97 / 2783

The '-IbtatL' f^f (obIlo, ss I, ANt)RIA F. ROCCO, Clerk of the Court ofCuyahoga County.

Appeals within and for said County, and in whose custody the files, Journals and records of said Court are

required by the laws of the State of Oitio, to be, kept, hereby eertify that the foregoing is taken and copied

from the Journal erztry dated on CA Ca iC10 Gl

of the proceedings of the Cocirt of Aloheals within and for said Cuyahoga County, and that the said foregoing

- ^ Ecopy has been coiaapared by nie with the original entry on said JournahF1tYy tT2tecl Ori t)C

CA and that the same is correct transcript thereof.

3fts Te%tirttonp "- beLeoE, I do heretxitito subscribe my nanle officially,

and affix the seal. of said court, at the Court House in the City of

Cleveland, in said County, this

day of A.D. 20 E--^----

ANDREf1 E R®CCO, Clerk c^f CouNts

ByDeputy Clerk

2783 OO " ^`+,as

Judge: 1'2.IC1-1ARDJ MC^„^ONArLI` VN

CA CV 13 814870 ASSIGNED JUDGE- - -- _ --- --- - -- __ _- - _ _ _ __- _ .--- -- ^_`_

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0?_ REASSIGR6ED D 81 JUF3Y TFiIAL 89 pIS. W7PREJ.

03 REINSTATE.D (C/A) S j7 82 ADR DECREE 91 COGNOVITS04 REINSTATED Q a 83 COURTTRIAL u 92 DEFAULT

E7,E 20 MAGfSTRATE S ^ 85 PRETRIAL( 1 93 TRANS TO COURl

40 ADR T ^ 86 FOREIGN JUDGMENT

65 STAY t Q 87 DIS. W/O PREJ El 95 TRANS TO JUDGE

69 SUBMITTED N F] 88 SANKRUPTCY/APPEAL STAY q 96 OTHER

NO. JURORS COURT REPORTER

START DATE START DATE

nPDATE EfVD DATE / /

^)ATE (NUNC PRC71 UNC ENTRY AS OF & FOR

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sUDGN3ENT FOR PLAINTIFF 8M(7NFESSIqN

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EXHIBIT

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IN THE COURT OF COMMON PLEASCUYAHOGA COUNTY, OHIO

BERNARD NIEDERST,

I'laintifC,

vs.

DAVID B. NIEDERST, et al.

Defendarits.

Judt;e: RICHARD J IviCMONAGL):.

CV 13 814870

JUDGMENT ENTRY

Upon presentation of this cause to the Coa.art bv I'laiflatifls counsel and Defendants' counsel,

an a.ttorney at law duly licensed to practice before this Court, appearing on behalf of the Defendants

(1) DAVID B. NIEDERST, (2) MICI TAEL D. NIEDERST, (3) NIEDp,RS I' MANAGEMENT,

LT>]., (4) NIEDERST MANAGEMENT GROUP, L TD., (5) NIEDERST MANAGEMENT

GROUP II, LTD., (6) NIEDERST MANAGEMENT GROUP III, LTD., (7) NIEDERST

MANAGEMENT GROUP IV, LTD,, (8) HEMNINGER APARTMENTS, LLC, (9) NIEDERST

OLDER RIVER YACHT CLUB, LLC, (10) NIEDERST WYOGA LAKLE, LLC, (11) NIEDERST

RICHMOND PARK, LLC, (12) NIEDERST BLOSSOM VILLAGE, LLC, (13) p'RV-ELYRIA,

LLC, (I4) EVERGREEN RESIDENTIAL PAR"1^` `ERS, LLC, (15) NIEDERST PARMA WOODS

APARTMENTS, LLC, (16) SUNSET TO)NNI-IOUSES, LLC, (17) NIEDERS"I' BENT TIZEE,

LLC,(18) WYOGA LAKE COMMONS, LLC, (19) NIEDERST IIv'DIAN HILLS, LLC, (20)

TMEDERST ERIE SI-IORE, LLC, (21) 12834-12836 STATE RD, LLC, (22) NIEDERST LAKE

PARK TOWERS, LLC, (23) NIEDERST RICHMOND HILLS, LLC, (24) NIEDERST FOREST

RIDGE, LLC, (25) WESTBURY HOLDINGS, LLC, and (26) 9800 TOWER, LLC (collectiveIy

-1-

the "Defendants"), it appears that Defendants duly executed a Cognovit Note with a}1 required

cognovit provisions in August 2012. A copy of the Cogriovit Note is attached to the Complaint as

Exhibit "L"

By virtue of the wan•ants of attorney contained in the Cognovit Note, the attorney for

Defendants waived the issuing and service of process in this case and confessed a}udgment on the

Cognovit Note against Defendants and in favor of the Plaintiff for the amount prayed for by said

Plaintiff. Said attorney for Defendants also released and waived all exceptions, errors and right of

appeal in this action.

IT IS, THERE FORE, ORDERED, ADJUDCED AND DECREED that_ludgrxlent be entered

in favor of Plaintiff atid against Defendarlts, jointly and severally, in the principal amount of

$750,000.00; plus interest at the rate of 15% per annum from April 15, 2011, plus attorneys' fees

and costs. NNothlFlg in this J 1Adgnlent shall constitute a waiver by PlalritPff, of any rights against

parties to the Cognovit Note which have not been named herein,Cau-se- 4-A

IT IS SO ZEA .

3UDGE

DATED: 4-3

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