Black Tie Title refused to correct a paperwork error after a foreclosure purchase—and it cost them. Mortgage professionals may want to take note
A title company’s refusal to fix a titling mistake after a foreclosure sale has now left it on the hook for nearly $290,000 in damages and legal fees.
COD Properties Ohio, a real estate investment company created by Christopher Ostlund and based in Oregon, hired Black Tie Title in Cleveland to help buy foreclosed homes in Cuyahoga County. The arrangement was that Black Tie—through its principals Nicholas Varner and Ryan Steigmeier—would attend sheriff’s sales, bid on properties using COD’s funds, and ensure deeds were titled in COD’s name.
On February 11, 2019, Steigmeier bid $35,000 at a sheriff’s auction for a property located at 15508 Edgewood Avenue. He used a $5,000 cashier’s check provided by COD as the deposit. But when he completed the auction paperwork, he listed the buyer as “COD Properties, LLC,” which was not a registered entity in Ohio. As a result, the sheriff’s office issued the deed in Steigmeier’s name.
Despite COD paying the remaining $31,736.22 to complete the purchase, Black Tie and Steigmeier refused to transfer the title, claiming they needed to confirm who funded the payment. COD asserted it had followed all procedures and provided documentation showing it had paid in full. The company demanded the deed be titled in its name, but the request was denied.
On July 3, 2019, COD filed suit against Black Tie, Varner, and Steigmeier in the Cuyahoga County Court of Common Pleas. After extensive litigation, including a jury trial in March 2023, Black Tie was found liable for breach of fiduciary duty and civil theft. The jury awarded COD $30,000 in damages for breach of fiduciary duty and $35,000 for civil theft. It awarded $0 in damages for conversion. The court later granted treble damages under Ohio Revised Code 2307.61 for civil theft, increasing that award to $105,000.
The jury also awarded $1 in punitive damages against each defendant for both breach of fiduciary duty and conversion. However, the trial court later set aside the punitive awards related to conversion and the individual defendants, as required by law, because no compensatory damages had been awarded on those claims.
COD was also awarded attorney fees totaling $326,223.17. But on appeal, the Eighth District Court of Appeals ruled on July 17, 2025, that a portion of those fees—specifically $35,625—had been improperly awarded based on late-submitted documentation. The court ordered that amount to be vacated, bringing the final attorney fee award to $289,598.17.
On appeal, the court reversed the trial court’s judgment on the conversion claim, stating that conversion does not apply to real property under Ohio law. However, it upheld the trial court’s rulings on civil theft, breach of fiduciary duty, and treble damages.
The court found that Black Tie had acted as an escrow agent—even in the absence of a written agreement—and had a duty to follow COD’s instructions regarding the property. Testimony from COD’s expert, David Freeburg, supported the conclusion that Black Tie breached its fiduciary duty by refusing to transfer the title once it was clear COD had funded the purchase.
Ultimately, the property was transferred to COD in June 2022 by a court-appointed receiver.
For professionals in the insurance and title space, the lesson is clear: acting as an escrow or title agent brings responsibilities—even if they’re not written down. As this case shows, failing to follow instructions or clear up errors can result in major legal and financial consequences.
