US Bank Trust petitioned the Court for a writ of mandamus to compel Summit County, Ohio, to initiate appropriation proceedings for a property it owned that was foreclosed in 2017 due to unpaid taxes. Summit County moved to dismiss the petition, which the Court granted. The foreclosure process involved approximately $4,000 in delinquent taxes on a property valued at $48,000. Under both the U.S. and Ohio Constitutions, private property cannot be taken for public use without just compensation, making mandamus an appropriate remedy to compel authorities to start appropriation proceedings. For US Bank to succeed, it needed to demonstrate a clear legal right to compel the action, a legal duty on Summit County’s part, and the lack of an adequate remedy. Dismissal is warranted only if the complaint fails to state facts that could justify relief. The Court outlined Ohio's statutory expedited foreclosure procedures, which allow the county treasurer to enforce tax liens via lawsuits. Properties can be transferred to a land bank under R.C. 323.66, which satisfies the liens without the collection of taxes. Although expedited, this process includes protections for property owners, such as notifications and the ability to appeal or redeem the property within specified timeframes.
US Bank's property was foreclosed in 2017 due to delinquent taxes and subsequently transferred to a land bank via an expedited process, as outlined in R.C. 323.78. A hearing held by the Board of Revision on November 17, 2017, did not include US Bank's participation. The Board issued an Adjudication of Foreclosure Direct Transfer, extinguishing US Bank's right of redemption after 28 days and facilitating the direct transfer of the property to the land bank. US Bank did not appeal this decision within the required timeframe.
In December 2017, after the redemption period, the sheriff executed the transfer of the property to the land bank. US Bank claims this transfer constituted a taking under both the Ohio and U.S. Constitutions, alleging it was deprived of property ownership without compensation, despite the property's value exceeding the owed taxes. Three years post-foreclosure, US Bank sought a writ of mandamus to compel Summit County to initiate appropriation proceedings.
Summit County moved to dismiss the action, arguing that US Bank had adequate legal remedies and asserting that a taking could not occur through tax law enforcement. The court determined that US Bank indeed had an adequate remedy at law, rendering its mandamus claim moot.
The statutory framework allows for property owners to respond to foreclosure complaints, contesting amounts owed and service issues. If a property is foreclosed, it may be either sold at auction or transferred to a land bank, with a 28-day redemption window for the owner. The transfer occurs free of liens, regardless of the property's fair market value. Although the process is expedited, there remains a right to appeal the transfer in the court of common pleas within 14 days, allowing for a de novo review of the case, inclusive of newly raised issues.
US Bank failed to participate in the foreclosure proceedings, which precluded it from claiming improper service or lack of notice, as it did not allege these issues in its complaint or further responses. Consequently, US Bank forfeited the chance to request a transfer of the action to a common pleas or municipal court, as outlined in R.C. 323.70. Following the completion of the foreclosure, US Bank had the right to appeal to the court of common pleas but chose not to exercise this option, missing the opportunity to present arguments that could have been raised during the original proceedings. Although US Bank sought a writ of mandamus, the court determined that it had adequate legal remedies available, thus denying the writ. The court granted Summit County’s motion to dismiss the case, with costs assigned to US Bank. All parties were notified of the judgment as required by Civ. R. 58.
