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Cincinnati Cent. Credit Union v. Benson12/18/1998
HILDEBRANDT, Presiding Judge.
Plaintiff-appellant Cincinnati Central Credit Union ("CCCU") appeals from the trial court's dismissal of its complaint pursuant to Civ.R. 12(B)(6). The case before us today is related to a separate action concerning a parcel of land known among these parties as the Fernbank property. That litigation has been pending for a number of years and has been before this court twice before. From that case, we are familiar with the detailed factual background underlying the present claim; however, an abbreviated recitation of the relevant facts is necessary in this case.
It is undisputed that defendants-appellees Gary and Mary Benson at one time owned the Fernbank property and that CCCU held a valid mortgage interest in the property. The Bensons filed for bankruptcy , and, in the course of the bankruptcy, submitted a sworn statement indicating that they owned the Fernbank property in fee simple and that CCCU held a valid mortgage interest in the property. As a result of those representations, the trustee in bankruptcy disclaimed the Fernbank property subject to the mortgage, and it was not included in the bankruptcy estate.
Following the conclusion of the bankruptcy proceedings, the Bensons issued a quitclaim deed to the Fernbank property to "Richard Roeller, Trustee," who recorded the deed. Subsequently, CCCU filed an action in foreclosure. In their answer to the complaint in foreclosure, the Bensons denied ownership of the property and the validity of the mortgage interest. Because of the representations the Bensons had made in the bankruptcy proceedings concerning the property and the mortgage, CCCU moved the court to estop the Bensons from denying ownership of the property and the validity of the mortgage interest; however, CCCU did not conduct a title search after it filed its foreclosure action.
The trial court granted CCCU's motion and estopped the Bensons from denying their ownership of the property and validity of the mortgage. The Bensons appealed that ruling, and this court affirmed the order of the trial court, holding:
"The effect of the Bensons' argument would permit an untoward result in which they could discharge their unsecured debts in bankruptcy while sheltering their real estate and then blind-siding their secured creditors in a state court by recanting their previous statements concerning their finances."
The Supreme Court of Ohio declined to exercise jurisdiction over the Bensons' appeal to that court.
The Fernbank property was sold at a foreclosure sale to CCCU, the highest bidder. On the motion of CCCU, and over the objection of the Bensons, the trial court entered an order confirming the sale and ordering distribution of the proceeds. When CCCU attempted to record its title, it discovered that title had already been recorded in Roeller's name, as trustee, as a result of the quitclaim deed. CCCU then attempted through a variety of motions either to have Roeller added as a party defendant to the foreclosure action or to vacate the priosjudgment. The trial court found no basis for either, and this court affirmed that determination.
CCCU then filed the current action, naming the Bensons and Roeller as defendants. CCCU's amended complaint stated causes of action to quiet title, for ejectment, for fraudulent conveyance, for declaratory judgment, and to foreclose on the mortgage on the property. The defendants moved to dismiss the complaint, and the trial court granted the motions. CCCU appealed that decision to this court.
To grant a Civ.R. 12(B)(6) motion, the court must analyze the complaint and conclude that, beyond doubt, the p
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