2020 Ohio 4710
Ohio Ct. App.2020Background
- On November 12, 2018, Jesse Sineath was injured in a car accident caused by Paul Francois; Francois's vehicle was insured by State Farm.
- Sineath hired Three-C Body Shops to repair his vehicle and signed a repair contract that purported to assign to Three-C his property-damage claim against any at-fault party.
- State Farm issued checks totaling $6,673.10; Three-C claimed additional repair and rental charges totaling $9,404.75 and notified State Farm of the alleged deficiency and the assignment.
- State Farm refused to pay the remaining amount; Three-C sued Francois on February 11, 2019 asserting it had the assigned right to recover from the tortfeasor.
- Francois moved for judgment on the pleadings, arguing the assignment was invalid under W. Broad Chiropractic and this court's Nationwide decision; the trial court granted the motion and dismissed the case.
- On appeal the sole issue was whether Sineath validly assigned his property-damage tort claim to Three-C when liability and a right to damages had not yet been established.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an injured party may assign a property-damage tort claim to a repair shop before liability/damages against the tortfeasor are established | Assignment valid as a chose in action; assignment occurred after cause accrued when vehicle was delivered and written assignment signed | Assignment invalid under W. Broad Chiropractic because no present right to proceeds or established liability/damages existed at time of assignment | Assignment invalid; judgment on the pleadings for Francois affirmed |
Key Cases Cited
- W. Broad Chiropractic v. American Family Ins. Co., 122 Ohio St.3d 497 (Ohio 2009) (holding an injured party cannot assign rights to settlement proceeds when no present right to proceeds or established liability exists at time of assignment)
- New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc., 157 Ohio St.3d 164 (Ohio 2019) (articulating Civ.R. 12(C) standard for judgment on the pleadings)
- State ex rel. Midwest Pride IV, Inc. v. Pontious, 75 Ohio St.3d 565 (Ohio 1996) (dismissal under Civ.R. 12(C) when plaintiff can prove no set of facts entitling relief)
- Rayess v. Educational Comm. for Foreign Med. Graduates, 134 Ohio St.3d 509 (Ohio 2012) (appellate review of judgment on the pleadings is de novo)