Key Points | OHIO APPELLATE COURT FINDS STATUTE OF LIMITATIONS BARRED FORECLOSURE OF TAX LIEN

Last month, the Second Appellate District of Ohio affirmed the dismissal, with prejudice, of a foreclosure complaint filed by tax certificate holder, FIG as Custodian for FIG OH18, L.L.C. (FIG), despite the fact FIG timely filed its notice of intent to foreclose its tax lien, timely filed its foreclosure complaint and successfully obtained a foreclosure judgment. FIG as Custodian for FIG OH18, L.L.C. v. Jones, 2024-Ohio-5116, ¶¶2-4, 5.
Problems arose post-judgment about a month before the scheduled sale of the property when property owner, Dorian Jones, moved for relief from the 2021 judgment claiming he was never served with the complaint because FIG served the wrong Dorian Jones. FIG acknowledged service was invalid, so the court vacated the judgment and cancelled the sale. Although FIG properly served Jones thereafter, the court ultimately dismissed the case finding both of FIG’s tax certificates had expired prior to FIG commencing the foreclosure action.
Based on R.C. 5721.37(C)2, to successfully “commence” foreclosure FIG was required to both file and serve the complaint within specified deadlines. FIG failed to comply with those deadlines, although inadvertently, due to the initial invalid service. On appeal of the dismissal order Ohio’s Second District affirmed, noting dismissal with prejudice was appropriate because the Ohio savings statute did not apply.