Judge dismisses 2 claims in Lorain County CAUV tax program lawsuit, rejects conflict of interest argument

The Lorain County Auditor's Office and a group of farmers who sued it three years ago over alleged overpayment of property taxes each won a victory in the case in Common Pleas Court last month. Ten agricultural property owners sued the Auditor's Office in 2023 arguing that their land was overvalued by millions of dollars and that they were improperly charged millions in additional taxes through the current agricultural use valuation, or CAUV, program. The CAUV program allows property owners to apply to have farmland exclusively used for commercial agriculture valued based on its current use, not its "highest and best" potential use. The farmers also alleged their annual CAUV applications were modified without their knowledge or permission, affecting taxable value. They asked the court to find that the Auditor's Office violated their due process rights and to give them back the tax money they allegedly overpaid. Attorneys for the Auditor's Office asked Judge Donna Freeman to dismiss the claims. She rejected two of them in a ruling handed down May 12. Freeman reasoned that the farmers failed to strictly comply with state law and didn't file their claim within one year of paying the tax, but she allowed the farmers' claim that their due process rights were violated. A message seeking comment was left for attorney Mike Meyer, who is representing the Auditor's Office. The plaintiffs include Grills Family Farm LLC; Harvey D. Born Company Inc.; Hickory Grove Farms Inc.; Firelands Farm Inc.; Huron County Holdings LLC; Weigel Farms Inc.; BZIG LLC; Gordon Farms Land Company LLC; and Deborah Ortner and Donald Ortner. Attorney Dennis O'Toole, who is representing the farmers, said Freeman was correct when she ruled on the "very strict timelines" the law has for filing claims. The law says his clients can't appeal her ruling just yet, he said, because it is not a "final appealable order." Freeman ruled that there was no conflict of interest for O'Toole and the law firm of Gembala, McLaughlin & Pecora to represent both the farmers in the CAUV lawsuit and county commissioners in other legal matters. Commissioners waived any conflict of interest concerns last year, she ruled, and the Auditor's Office is separate from the commissioners' office. O'Toole said property owners who apply for the CAUV program are not typically notified if their application is accepted, only if it is rejected. Instead of his clients' applications being rejected, O'Toole alleges they were modified by the Auditor's Office without any notification, causing their values to increase and forcing them to pay more in taxes. O'Toole said there is further evidence still to be exchanged, and that he plans to seek class action certification from the court. That could allow more CAUV applicants to join the lawsuit, "and there's about 2,000 of them" in Lorain County, he said. Contact Dave O'Brien at (440) 329-7129 or dobrien@chroniclet.com.