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Keith-Harper v. Lake Hosp. Sys., Inc.

Citations: 2017 Ohio 7361; 96 N.E.3d 823Docket: 2015-L-137

Court: Ohio Court of Appeals; August 28, 2017; Ohio; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the case of Keith-Harper v. Lake Hospital System, Inc., the Eleventh Appellate District of Ohio upheld the trial court's decision to award attorney fees and expenses to the defendants after finding that Attorney Brian D. Spitz engaged in frivolous conduct. The underlying case involved claims of age and disability discrimination, wrongful termination, FMLA retaliation, and intentional infliction of emotional distress, which were dismissed by the trial court in favor of the defendants. After the dismissal, defendants sought sanctions under R.C. 2323.51 and Civ. R. 11, leading to a determination that Spitz's conduct was frivolous. The trial court found Spitz and his firm jointly and severally liable for $22,926.72 in fees and expenses. Spitz appealed, arguing against the finding of frivolous conduct and the imposition of sanctions, particularly contesting the inclusion of his firm and the scope of fees awarded. The appellate court affirmed the lower court's decision, noting that the trial court's findings were supported by the record and the application of an objective standard for determining frivolous conduct. The court also dismissed Spitz's arguments regarding the inclusion of law clerks and staff time in the fee award, emphasizing that such costs are permissible under R.C. 2323.51. A dissenting opinion questioned the reasonableness of the sanctions and the interpretation of the evidence, particularly in light of depositions that did not substantiate the plaintiff's claims.

Legal Issues Addressed

Frivolous Conduct under R.C. 2323.51

Application: The court determined that Attorney Spitz engaged in frivolous conduct by continuing to pursue baseless claims after critical depositions revealed a lack of evidentiary support.

Reasoning: The trial court held a frivolous conduct hearing on August 20, 2015, and found that Spitz’s actions after December 16, 2014, constituted frivolous conduct under R.C. 2323.51(A)(2) due to the lack of evidentiary support for the plaintiff's allegations.

Inclusion of Law Clerks and Staff Time in Attorney Fee Awards

Application: The court upheld the inclusion of law clerks and staff time as 'other reasonable expenses' in the attorney fee award under R.C. 2323.51.

Reasoning: R.C. 2323.51 permits motions for court costs, reasonable attorney’s fees, and related expenses in civil actions or appeals.

Joint and Several Liability for Attorney Fees

Application: The trial court held Attorney Spitz and his firm jointly and severally liable for attorney fees and expenses incurred by the defendants due to the frivolous conduct.

Reasoning: Attorney Spitz and his firm were found jointly and severally liable for $22,926.72.

Objective Standard for Frivolous Conduct

Application: The court applied an objective standard to determine frivolous conduct, assessing whether a reasonable lawyer would have pursued the claims based on the existing law and facts.

Reasoning: R.C. 2323.51 establishes an objective standard for determining frivolous conduct, unlike Civ. R. 11, which requires a showing of willful engagement in such conduct.

Sanctions for Frivolous Conduct

Application: The imposition of sanctions for frivolous conduct is discretionary and subject to review for abuse of discretion by the appellate court.

Reasoning: The imposition of sanctions for this conduct is discretionary, warranting review for abuse of discretion.

Waiver of Arguments Not Raised at Trial

Application: Spitz's argument against sanctioning the law firm was waived as it was not raised at the trial level, absent plain error.

Reasoning: Spitz argues that the trial court erred in sanctioning the Spitz Law Firm, asserting that R.C. 2323.51 does not permit sanctions against law firms and claiming the court acted beyond its authority. However, this argument was not raised at the trial level, leading to a waiver of the issue unless plain error is found.