2013 Ohio 1856
Ohio Ct. App.2013Background
- Robert Baker owned rental properties insured by Nationwide Mutual Insurance; March 2007 pipe burst at an unoccupied building caused damage.
- Baker repaired some damage between 2007 and 2010, including structural and cosmetic work, before attempting to rent the unit again.
- In June 2010 thieves stripped copper plumbing and fixtures from the same property, prompting a Nationwide claim.
- Nationwide denied coverage, deeming the property vacant for more than 60 consecutive days, and Baker sought a declaratory judgment for coverage.
- Baker and Nationwide cross-moved for summary judgment; the trial court granted Nationwide summary judgment, finding no renovation/quick-restart undertook sufficient coverage.
- The Court of Appeals partially reversed, sustaining Baker on some issues (renovation/under renovation) and affirming others, remanding for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 'as quickly as possible' impose a coverage condition? | Baker: duty is not a condition precedent; mitigates damages, not coverage. | Nationwide: it is a condition precedent to coverage that repairs resume quickly; failure defeats coverage. | Duty affects recovery amount, not coverage; issue of fact exists whether Baker acted promptly. |
| Was the property 'under renovation' or 'vacant' at time of the 2010 break-in? | Renovation/under construction ongoing; repairs continuous since 2007; facts support renovation. | Policy vacancy terms control; repairs do not constitute renovation; vacancy existed. | Genuine issue of material fact on renovation/vacancy; summary judgment improper on this point. |
| Should the trial court have dismissed the adjuster’s bad-faith claim or allowed discovery as to coverage? | Adjuster liable for bad faith in processing claim; discovery should proceed. | No personal duty of good faith by adjuster; discovery limited pending bifurcation. | Adjuster dismissed; third assignment not ripe for review; bifurcation affirmed. |
Key Cases Cited
- Grafton v. Ohio Edison Co., 77 Ohio St.3d 102 (Ohio 1996) (summary judgment burden and standard)
- Temple v. Wean United, Inc., 50 Ohio St.2d 317 (Ohio 1977) (summary judgment criteria)
- Dresher v. Burt, 75 Ohio St.3d 280 (Ohio 1996) (initial burden on movant in summary judgment)
- Milkovich v. Lorain Journal Co., 65 Ohio App.2d 143 (Ohio App.2d 1979) (fact-finding and inferences on undisputed facts)
- Boone v. Vanliner Ins. Co., 91 Ohio St.3d 209 (Ohio 2001) (discovery in bad faith insurance claims)