Eicher v. Nationwide
2012 Ohio 490
Ohio Ct. App.2012Background
- Eicher sued Nationwide in July 2008 on two claims: fraud and breach of contract, on behalf of himself and a potential class; amended the complaint in April 2010 to add details about premiums for UMBI and Medical Payments coverages and a non-duplication clause.
- Eicher alleged Nationwide represented there could be separate UMBI and Med. Pay coverages with separate premiums, but Nationwide allegedly combined limits and did not pay both benefits.
- The complaint asserted the non-duplication clause misled plaintiffs to pay for both coverages intending to obtain fuller benefits.
- Nationwide moved to dismiss both counts for lack of standing, failure to state a claim, statute of limitations, and regulatory jurisdiction by the superintendent of insurance.
- The trial court dismissed the fraud claim for statute of limitations and sua sponte dismissed the breach of contract claim under Kincaid; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Fraud claim dismissal timeliness and injury | Eicher: fraud claim timely and injury shown by denial of benefits | Nationwide: statute of limitations and no injury from unactionable reliance | Fraud claim appropriately dismissed; lack of injury supports dismissal |
| Breach of contract standing and sua sponte dismissal | Eicher: standing to sue under policy provisions | Nationwide: no injury without claimed expenses; sua sponte dismissal appropriate | Breach of contract claim properly dismissed for lack of standing/injury; sua sponte dismissal affirmed |
Key Cases Cited
- Textron Fin. Corp. v. Nationwide Mut. Ins. Co., 115 Ohio App.3d 137 (9th Dist.1996) (breach implied by failure to incur expenses requires actual damages)
- Kincaid v. Erie Ins. Co., 128 Ohio St.3d 322 (2010-Ohio-6036) (standing to sue and accrual when damages occur; no damages, no claim)
- Midwest Specialities, Inc. v. Firestone Tire & Rubber Co., 42 Ohio App.3d 6 (9th Dist.1988) (breach accrues upon actual damages)
- Volbers–Klarich v. Middletown Mgt., Inc., 125 Ohio St.3d 494 (2010-Ohio-2057) (elements of fraud)
- State ex rel. Thompson v. Spon, 83 Ohio St.3d 551 (1998-Ohio-298) (frivolous or obvious failure to state a claim may warrant sua sponte dismissal)
- State ex rel. Bruggeman v. Ingraham, 87 Ohio St.3d 230 (1999-Ohio-27) (policy for sua sponte dismissal for failure to state a claim)
- Perrysburg Twp. v. Rossford, 103 Ohio St.3d 79 (2004-Ohio-4362) (standard for de novo review of Civ.R. 12(B)(6))
- Cuyahoga Cty. Bd. of Commrs. v. State, 112 Ohio St.3d 59 (2006-Ohio-6499) (standing and jurisdiction principles)
- Ohio Contrs. Assn. v. Bicking, 71 Ohio St.3d 318 (1994) (general standing rule and injury requirement)