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Kudos To Partner Tom Connick On A Job Well Done

One of the guiding principles under which DCSTB is founded, is to always provide our clients with uncompromising, zealous and unsurpassed high quality legal services and counsel. Congrats to Tom Connick for being recognized by one our clients (see below) for doing just that in reaching a successful outcome. Nice job, Tom!!

Tom,

Thank you for getting this done.   In many years of business, law enforcement and personal life I have never met a lawyer who was as solid as you.  You  did not not budge, you held the Defendant to the fire; and on both cases settling was a matter of economics not admitting defeat. 

I would recommend you in  a heartbeat to colleagues and while I hope we don’t have to work together again I would not hesitate to contact you when in need.

Best regards,

Dennis W. Matson
CEO/President

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“Iron Client” opens New Venture in Pittsburgh Airport

Cleveland’s culinary renaissance is spreading to Pittsburgh.  Iron Chef Michael Symon, longtime client of DCSTB partner Jim Sammon, announced this week that he is opening a new Bar Symon inside the Pittsburgh International Airport.  Congratulations to Michael and his whole team !   We fully support expanding the number of places that we can get a Lola burger!

Jim Sammon undertook all aspects of the legal work for the deal, including the creation of the corporate entity, drafting and negotiating of the agreement between Chef Symon’s company (33 1/3 Management) and its partner in the venture, United Concessions Group.  The venture plans to be the first of many airport concepts that spread the culinary delights of Cleveland’s finest.

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Stretching the meaning of “equipment safety guard” in Ohio’s Employment Intentional Tort Statute

In a decision recently issued by the Eighth District Court of Appeals (Cuyahoga County), Hewitt v. L.E. Myers Co., 2011-Ohio-5413, the court upheld a lower court’s decision and a jury finding under the “new” employment intentional tort statute, R.C. §2745.01.

The decision is interesting as, rather than attempting to establish a “deliberate intent” intentional tort, the Plaintiff took the tact of establishing the case by use of the third part of the statute.  Part C sets forth a “rebuttable presumption” of an employer intentional tort when an employer has removed an “equipment safety guard”.

In the case, the Plaintiff equated  the rubber gloves (for an electrician) into an “equipment safety guard” as is called for in the Statute.  The plaintiff was a second-step apprentice lineman who was electrocuted when his supervisor sent him (alone) into the bucket and told him that he “shouldn’t need no rubber gloves” when he went up to work on the lines.

The case shows the drafting problems that occur in the Ohio Legislature.  For years the Legislature has been trying to draft an employment intentional tort statute that would survive Constitutional muster and other attacks.  With R.C. §2745.01, they thought they had finally done just that – but they were likely wrong.  The Legislature failed to provide a definition of the term “equipment safety guard” – either in the history, legislative notes or otherwise.  This loophole will allow the courts to expand exactly what an “equipment safety guard” is – so as to likely eviscerate the initial two prongs of the deliberate intent statute.

Previously, the Sixth District Court of Appeals (Toledo) tried to give a limited expansion of the term, and stated – “ ‘equipment safety guard’ would be commonly understood to mean a device that is designed to shield the operator from exposure to or injury by a dangerous aspect of the machine.”  (emphasis added)  The Eighth District Court of Appeals in Hewitt thought that definition (which with “commonly understood” and “aspect” within it could mean virtually ANYTHING) was too “limited.”

So far, Courts have found that an employer not providing gloves, long sleeve shirts, or properly programmed machines, constitute evidence of a “deliberate removal of an equipment safety guard” to provide the rebuttable presumption under the statute.

Ultimately, this expansion and interpretation will get to the Ohio Supreme Court.  However, without a legislative underpinning it will be hard for that Court to jump through the necessary legal hoops to stop this court and case-law expansion of the statute.  As such, the Legislature would be wise to get their drafting pens out and start re-writing again.

 

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Ohio Supreme Court clarifies time limit in Ohio for claims against Appraisers

I defend property appraisers on a regular basis. One of the issues that always arises in cases alleging negligence against an appraiser is the applicable statute of limitations and the date the injury accrued.  Until recently there has been a conflict of opinions within Ohio’s appellate districts as to when a claim for negligence accrues related to the professional negligence of a property appraiser. The Ohio Supreme Court just resolved that conflict in the case of Flagstar Bank, F.S.B v. Airline Union’s Mortgage Company, et al, Slip Opinion No. 2011-Ohio-1961.

In 2008, Flagstar Bank sued an appraiser who, in 2001 and 2002, issued appraisals on three properties for a non-party bank that later sold the properties to Flagstar. These properties went into foreclosure during the recent real estate debacle currently plaguing the country. In resolving the conflict in Ohio as to when an action for professional negligence against appraisers accrues, the Ohio Supreme Court held in Flagstar that “[a] cause of action for professional negligence against a property appraiser accrues on the date that the negligent act is committed, and the four-year statute of limitations commences on that date.”

Notably, the court expressly rejected the “discovery-rule” and the “delayed damages rule.” Under these rules, a plaintiff’s action does not accrue, and the statute of limitations does not begin to run, until the plaintiff knows, or reasonably should have known, that he or she has been injured by the conduct of the defendant (discovery rule), or has actually incurred damages to complete the elements required to bring a cause of action for negligence (delayed damages rule). Now, under Ohio law, a professional negligence claim against an appraiser accrues, and the four-year statute of limitations commences, on the date the appraiser performs any alleged negligent appraisal work.

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New Estate and Gift Tax Exclusion Amounts and Planning Opportunities

Decedents who died in 2010 or have already died in 2011 or will die later this year have a $5 million estate tax exclusion.  This will be indexed for inflation for deaths after 2011.  The maximum estate tax rate  on estates that exceed the estate tax exclusion amount is 35%.  The applicable exclusion for 2010 gifts was $1 million.  The gift tax rate was 35%.  For gifts after 2010, the gift tax has been reunified with the estate tax with an applicable exclusion of $5 million and top rates of 35%.  This change now allows individuals who had previously used up all of their gift tax exclusion amount to make additional gifts beginning in 2011.  This, along with the IRS rate factors which are currently extremely low, will open up many planning opportunities for individuals wishing to do additional gift planning.

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Contracting with Minors

The general rule is that only individuals over the age of majority (18) are capable of entering into contracts. However, contracts entered into by minors are not automatically void. They are voidable at the minors election. See Ohio Rev Code Sec. 3109.o1. A minor must disaffirm any such contract upon reaching the age of majority or within a reasonable time thereafter considering the circumstances of each particular case.

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