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Case Law Alerts

Appeals Court Reverses Arbitration Ruling, Citing Improper Credibility Determination by Successor Judge

Metzger v. Strongsville Care Group, LLC (8th Dist.), 2025-Ohio-1732

July 1, 2025

by Gabriella M. Wittbrod

On May 15, 2025, the Ohio 8th District Court of Appeals held that when a judge takes over a case for another judge, the successor judge cannot rely on a hearing transcript in their ruling when the credibility of witnesses is at issue. 

The defendants moved the trial court to enforce an arbitration agreement. The trial court held a hearing on the matter where the key issue was whether or not the signatory actually signed the arbitration agreement. The defendant’s executive director testified that she witnessed the signatory sign the agreement. The signatory testified that she did not sign the agreement. After the hearing and prior to the decision, a different judge was assigned to the case, replacing the previous trial judge. The successor judge relied on the hearing transcript to issue the ruling that this case should be stayed pending enforcement of the arbitration agreement. 

The plaintiff appealed, arguing that the trial court erred procedurally when the successor judge rendered judgment based on the transcript when credibility was a factor. The 8th District Court of Appeal held that the transcript of the hearing contained conflicting testimony, which would be difficult to evaluate without physical observation of the witnesses. Thus, credibility is implicit within the analysis of whether the signatory signed the arbitration agreement, and the successor judge cannot rely on the transcript when making that determination. The District Court remanded the case for a new hearing on the motion to stay and enforce the arbitration agreement. 


 

Case Law Alerts, 3rd Quarter, July 2025 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2025 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.