Weiler v. Knox Community Hosp.
2021 Ohio 2098
| Ohio Ct. App. | 2021Background
- Richard Weiler had a normal PSA test in 2011, received no further prostate screening from his primary physician (Dr. Edward Blackburn), and was diagnosed with advanced prostate cancer in 2016.
- Weiler sued the Estate of Dr. Blackburn and Knox Community Hospital (KCH) for medical negligence (vicarious liability against KCH); Dr. Blackburn had died before suit was filed.
- Weiler and the Estate of Dr. Blackburn executed a confidential Release and Settlement Agreement; the Estate was thereafter dismissed with prejudice.
- KCH moved for summary judgment, arguing the settlement and release of the primarily liable employee extinguished KCH’s vicarious liability; portions of the release were filed under seal and redacted.
- The trial court granted summary judgment for KCH; Weiler appealed, arguing the settlement was a partial settlement reserving rights against KCH and therefore did not bar the vicarious-liability claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether settlement/release of the primarily liable employee extinguishes vicarious liability against employer | Weiler: the agreement was a partial settlement (reserved rights); Riley and similar authority allow continuing claims against secondary tortfeasors | KCH: release of the employee (primarily liable) extinguishes secondary/vicarious liability under Losito/Wuerth/Comer | Court: Release of the employee extinguished KCH’s vicarious liability; summary judgment for KCH affirmed |
| Whether a reservation-of-rights/partial-payment clause (redacted here) creates a genuine issue of material fact barring summary judgment | Weiler: reservation and partial payment preserve claim vs. KCH | KCH: even partial settlement or reservation cannot preserve employer liability once employee is released; employer’s indemnity/subrogation interests would be defeated | Court: Plaintiff did not meet Civ.R. 56 burden; even a partial settlement/release of agent bars the principal’s secondary liability under controlling Ohio precedent |
Key Cases Cited
- Natl. Union Fire Ins. Co. of Pittsburgh, PA v. Wuerth, 122 Ohio St.3d 594 (Ohio 2009) (Ohio Supreme Court explained that secondary/vicarious liability depends on existence of direct liability of the agent and recognized precedents requiring dismissal of secondary liability where agent’s liability is extinguished)
- Losito v. Kruse, 136 Ohio St. 183 (Ohio 1940) (settlement and release of servant/agent will exonerate the master/principal to protect employer’s indemnity rights)
- Comer v. Risko, 106 Ohio St.3d 185 (Ohio 2005) (reiterates that principal’s vicarious liability depends on liability of agent and cites Losito)
- Riley v. City of Cincinnati, 46 Ohio St.2d 287 (Ohio 1976) (covenant not to sue—when clearly partial and reserving rights—does not bar suit against another tortfeasor)
- Wells v. Spirit Fabricating, Ltd., 113 Ohio App.3d 282 (8th Dist. 1996) (holds that settlement/release of primarily liable employee can bar employer’s secondary liability; discusses indemnity/subrogation rationale)