Cleveland Plain Dealer Judge Ray Pianka Article Fines for "Corporate Owners"

January 15th, 2010

A recent article featured in the (Cleveland) Plain Dealer discusses the accumulation of more than $2.5 million in fines to a group of corporate landowners. The fines were assesed by Cleveland Housing Court judge Ray Pianka for failure to appear before the court to address code violations.

Corporate owners charged with housing violations fined $1,000 a day for missing court

CLEVELAND, Ohio -- A group of corporate landowners owe more than $2.5 million to the Cleveland Housing Court, with the tab for some growing by $1,000 a day per home.

The 30-plus companies own about four dozen homes that have been cited for code violations and have ignored two court summonses.

After the second failure to appear in court, Cleveland Housing Judge Ray Pianka found them in contempt and started charging the $1,000-a-day fine, which is allowed by law.

The clock started ticking a little more than 56 days ago, so all 30 owe $56,000 for each property where they were charged with violations.

And about 18 of those companies failed to show up again for a court appearance this week, keeping the fine growing.

"For the ones that came in [Monday], they purged themselves of the future fine but not the past fine," Pianka said. "For me it's . . . about having respect for the court and the citizens of Cleveland."

Pianka said some have been issued tickets for high grass and weeds or garbage on the property, which has a maximum penalty of $1,000. Others are charged with more serious housing code violations, including broken windows, peeling paint or rotting wood.

Rather than coming in to deal with the charge, and perhaps plead not guilty, they just ignored it, Pianka said. "At least that's what it looks like," he said.

One of the companies is Bryce Peters Financial, which according to its Web site is headquartered in Reno, Nev. Bryce Peters has seven properties in Cleveland that have either been cited for violations or have been ticketed, according to court records.

Calls to the two phone numbers listed, only one of which took messages, were not returned.

And another company, National Asset Management Group, has eight homes in Cleveland that have been cited for housing violations or ticketed. The company couldn't be reached for comment.

In the meantime, Pianka said the companies that missed two court dates have already been "ordered into civil judgment and civil collection," meaning liens can be put on all their properties until they pay the contempt fines.

Any money collected goes into the city of Cleveland's general fund. Attached is the list of owners

Pending a ruling by the Ohio Supreme Court, Pianka has suspended his practice of holding trials for companies that don't show up, called trial in absentia.

Since 2007, 47 such trials have been held. But two companies, Washington Mutual Bank and Destiny Ventures LLC, have gotten conflicting decisions from courts when they appealed convictions made in absentia.

In the Washington Mutual case, the appeals court overturned the conviction. In the Destiny Ventures case, the court upheld it.

Now both cases are before the Ohio Supreme Court, which has heard oral arguments but has not yet ruled. Pianka said the in absentia trials are faster than holding companies in contempt.

To view the online article, please click here.
 

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

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