694 N.E.2d 526 | Ohio Ct. App. | 1997
Lead Opinion
Defendant-appellant, Grange Mutual Casualty Insurance Company ("Grange"), appeals from a judgment of the Franklin County Court of Common Pleas declaring that plaintiffs-appellees, Kendall R. Bentley, Herman Keith Bentley, Jr., April M. Beckley, and Tracy L. Myers are entitled to underinsured motorist coverage. We affirm for the reasons that follow.
On March 3, 1988, Millard Scott Bentley died while a passenger in a motor vehicle negligently operated by Todd Tekip. Millard was survived by his father Herman, his mother Darlene, and his four brothers and sisters, the appellees *95 herein. All six survivors originally were plaintiffs in this action. The trial court granted summary judgment against the parents based on the doctrine of res judicata, or claim preclusion, and there has been no appeal from that judgment. The action proceeded to a bench trial on stipulated facts and trial briefs, whereupon the trial court granted judgment in favor of appellees. Grange asserts two assignments of error:
1. "The trial court erred in deciding that the plaintiffs, the siblings of Millard Bentley, are entitled to underinsured motorist coverage under a Grange auto insurance policy issued to Herman Bentley, Millard's father and the executor of Millard's estate. After Herman Bentley, as the personal representative of Millard's estate, settled with the tortfeasor, the brothers and sisters were no longer `legally entitled to recover,' a condition precedent under the insurance contract to underinsured motorist benefits."
2. "Plaintiffs-appellees' claim for underinsured motorist benefits was adjudicated to a final decision and judgment in the Court of Common Pleas of Cuyahoga County, Herman Bentley v.Grange (1991), case No. 193137. The trial court erred in its determination that the decision was not a bar as to all the beneficiaries of the estate, as the administrator of the estate is the sole person authorized by law to prosecute a wrongful death action. In addition, even though the remaining plaintiffs were not named parties in the earlier suit, they were in privity with the named parties, and they are now collaterally estopped from relitigating."
Decedent's father, Herman Bentley, was appointed administrator of the estate. At the time of the accident, Herman was the named insured on a policy of automobile insurance issued by appellant with uninsured/underinsured motorist ("UM") coverage of $100,000 per person and $300,000 per occurrence. With the consent of appellant, Tekip's insurer, Western Reserve Insurance Company, paid $100,000 as exhaustion of Tekip's policy limits for the settlement of the wrongful death claims against Tekip. As a condition of the settlement, Herman Bentley, in his capacity as the administrator of the estate, released Tekip from liability. Under Ohio's wrongful death statute, specifically R.C.
On July 10, 1990, an action was filed in the Cuyahoga County Court of Common Pleas against appellant, Bentley v. Grange Mut.Ins. Co., case No. 193137. Because the limits of the policy issued by appellant were the same as the limits of the tortfeasor's policy, the Cuyahoga County Court of Common Pleas, on April *96
11, 1991, granted judgment in favor of appellant. The court relied on Hill v. Allstate Ins. Co. (1990),
"Unless otherwise provided by an insurer, underinsured motorist liability insurance coverage is not available to an insured where the limits of liability contained in the insured's policy are identical to the limits of liability set forth in the tortfeasor's liability insurance coverage. (R.C.
On October 1, 1993, the Supreme Court of Ohio expressly overruled Hill:
"An underinsurance claim must be paid when the individual covered by an uninsured/underinsured policy suffers damages that exceed those monies available to be paid by the tortfeasor's liability carriers. (Hill v. Allstate Ins. Co. [1990],
On November 23, 1993, appellees sent appellant a demand for $200,000 of underinsured motorist ("UM") benefits, which appellant denied.
On March 17, 1994, an action against appellant, case No. 94CVC-03-1856, was filed in the Franklin County Court of Common Pleas. On October 31, 1994, the trial court issued a decision granting summary judgment in favor of appellant on the ground that under the doctrine of res judicata, appellees' claims were barred by the judgment in the 1991 Cuyahoga County action. Appellees voluntarily dismissed the action prior to judgment being entered upon that decision.
Four days later, on November 4, 1994, the complaint was refiled in the Franklin County Court of Common Pleas under case No. 94CVH-11-7870, the action from which this appeal arises. The plaintiffs were Herman Bentley, decedent's father, individually and as administrator of the estate, decedent's mother Darlene Bentley, and decedent's four brothers and sisters. Appellant again moved for summary judgment on the ground that, under the doctrine of res judicata, appellees' claims were barred by the judgment in the Cuyahoga County action. On August 7, 1995, the trial court sustained appellant's motion as to plaintiffs Herman Bentley individually and Darlene Bentley, but overruled the motion as to the other plaintiffs on the ground that because they were not parties in the Cuyahoga County action, they could not be bound by that judgment.
The action proceeded to trial on stipulated facts and trial briefs. In a June 5, 1996 decision and subsequent judgment entry,1 the court declared that appellees are entitled to UM coverage subject to the $100,000 and $300,000 policy limits, *97 and that appellant is obligated to submit the issue of liability and damages to binding arbitration pursuant to the terms of the policy.
In the first assignment of error, appellant argues that appellees' rights to UM coverage were terminated by the release of the tortfeasor, which was part of the administrator's settlement with the tortfeasor and the tortfeasor's liability insurer.
In the UM provision of the policy issued by appellant, appellant promises "[t]o pay all sums which the insured or hislegal representative shall be legally entitled to recover asdamages from the owner or operator of an uninsured motor vehicle because of bodily injury, sickness or disease, including death resulting therefrom, hereinafter called `bodily injury,' sustained by the insured, caused by accident and arising out of the ownership, maintenance or use of such uninsured motor vehicle." (Emphasis added.)
This language mirrors the language of R.C.
Appellant's interpretation of "legally entitled to recover" is too restrictive. Although appellees no longer have claims against the tortfeasor as a result of the settlement, the Supreme Court in McDonald v. Republic-Franklin Ins. Co. (1989),
"When an insured has given his underinsurance carrier notice of a tentative settlement prior to release, and the insurer has had a reasonable opportunity to protect its subrogation rights by paying the underinsured motorist benefits before the release but does not do so, the release will not preclude recovery of underinsurance benefits." Id. *98
McDonald supports the proposition that an insured retains the contract right to UM coverage despite the fact that the tort claim against the tortfeasor has been settled, if the UM insurer consented to the settlement. The second paragraph of theMcDonald syllabus is equally applicable when the underlying tort is subject to the wrongful death statute. See, e.g., CincinnatiIns. Co. v. Jarvis (1994),
Appellant relies on three cases for the proposition that an insured has no right to UM coverage once the underlying tort claim is settled. In Kurent v. Farmers Ins. of Columbus, Inc.
(1991),
In Love v. Nationwide Mut. Ins. (1995),
The court in Love stated that the plaintiffs' rights to UM coverage were terminated by the settlement of the underlying tort claims. It is that statement in Love upon which appellant relies. Though correct as a general rule, McDonald demonstrates that this statement is not an unconditional proposition of law. Appellant's error is applying statements from Love out of the context in which they were made, that context being one in which the UM insurer had no advance notice of the settlement with the tortfeasor.
Regrettably, however, this court made the same mistake of applying Love out of context in the third case upon which appellant relies, Sparks v. State Farm Mut. Auto. Ins. Co. (Oct. 24, 1995), Franklin App. No. 95APE03-339, unreported, 1995 WL 632081, discretionary appeal allowed (1996),
Under McDonald, because appellant consented to the settlement in which appellees' wrongful death claims against the tortfeasor were released, the release did not effect a forfeiture of appellees' contract rights to UM coverage. The first assignment of error is not well taken.
In the second assignment of error, appellant argues that because the issue of whether appellees retain their rights to UM coverage was determined in the 1991 Cuyahoga County action, they are barred by the doctrine of collateral estoppel, or issue preclusion, from litigating the issue here. In the 1991 Cuyahoga County action, the court declared that under Hill v. AllstateIns. Co., *100
Because appellees were neither parties to the Cuyahoga County action nor in privity with the parties, the doctrine of collateral estoppel is inapplicable.
"Collateral estoppel (issue preclusion) prevents parties or their privies from relitigating facts and issues in a subsequent suit that were fully litigated in a prior suit. Collateral estoppel applies when the fact or issue (1) was actually and directly litigated in the prior action, (2) was passed upon and determined by a court of competent jurisdiction, and (3) when the party against whom collateral estoppel is asserted was a party in privity with a party to the prior action." Thompson v.Wing (1994),
The doctrine of res judicata, which encompasses both claim preclusion and issue preclusion, is necessary to promote finality of judgments and prevent multiplicity of litigation, but it should not be permitted to encroach upon fundamental rights, Whitehead v. Gen. Tel. Co. (1969),
"The doctrine of res judicata rests at bottom upon the ground that the party to be affected, or some other with whom he is in privity, has litigated or had an opportunity to litigate the same matter in a former action in a court of competent jurisdiction. * * * The opportunity to be heard is an essential requisite of due process of law in judicial proceedings. * * * And as a state may not, consistently with the Fourteenth Amendment, enforce a judgment against a party named in the proceedings without a hearing or an opportunity to be heard * * * so it cannot, without disregarding the requirement of due process, give a conclusive effect to a prior judgment against one who is neither a party nor in privity with a party therein."Postal Telegraph Cable Co. v. City of Newport, Ky. (1918),
In this case, the first two elements of collateral estoppel as set forth in Thompson are presumed satisfied. Appellant's second assignment of error is based on the argument that the third element is also satisfied, that is, that appellees were in privity with their parents, Herman and Darlene, who were the plaintiffs in the Cuyahoga County action. Therefore, the issue presented is whether persons who are wrongful death statutory beneficiaries of a single decedent and who have identical rights to UM coverage under a single insurance policy are in privity with each other within the meaning of the doctrine of *101 collateral estoppel so that an adjudication of the right of one to UM coverage will be binding on the others.
"Generally, a person is in privity with another if he succeeds to an estate or an interest formerly held by another."Whitehead,
The Supreme Court of Ohio has shown that it is willing to relax the mutuality requirement where justice would reasonably require it. Goodson v. McDonough Power Equip., Inc. (1983),
Appellant also argues that the doctrine of collateral estoppel applies because appellees were in privity with the administrator of the estate, who was a plaintiff in the Cuyahoga County action. This argument fails for lack of proof. The burden is on the party asserting collateral estoppel to prove all the elements thereof, and no evidence regarding the parties to the Cuyahoga County action was introduced for purpose of trial.9
Moreover, courts have stated that an administrator does not have standing to enforce the UM rights of the wrongful death statutory beneficiaries. See Smith v. Erie Ins. Group (1990),
Because appellees were neither parties to the Cuyahoga County action nor in privity with the parties, the doctrine of collateral estoppel is inapplicable. The second assignment of error is not well taken.
For the foregoing reasons, both assignments of error are overruled, and the judgment of the Franklin County Court of Common Pleas is affirmed.
Judgment affirmed.
TYACK, P.J., concurs.
CLOSE, J., dissents.
"(1) A person who is not a party to an action but who is represented by a party is bound by and entitled to the benefits of a judgment as though he were a party. A person is represented by a party who is:
"(a) The trustee of an estate or interest of which the person is a beneficiary; or
"(b) Invested by the person with authority to represent him in an action; or
"(c) The executor, administrator, guardian, conservator, or similar fiduciary manager of an interest of which the person is a beneficiary; or
"(d) An official or agency invested by law with authority to represent the person's interests; or
"(e) The representative of a class of persons similarly situated, designated as such with the approval of the court, of which the person is a member.
"(2) A person represented by a party to an action is bound by the judgment even though the person himself does not have notice of the action, is not served with process, or is not subject to service of process. Exceptions to this general rule are stated in § 42."
"WHEREFORE, plaintiff demands judgment:
"I. Determining plaintiffs are insured under the underinsured motorist coverage provision of their policy with defendant;
"II. Determining their rights and the obligations of defendant under the policy;
"III. Directing the defendant to submit plaintiffs' claim to recover damages pursuant to Revised Code
"IV. For costs."
Appellant's January 19, 1995 motion for summary judgment includes as Exhibit B a photocopy of the journal entry in the Cuyahoga County action, at the top of which is handwritten "Herman Bentley et al. vs. Grange Mutual Ins. Co." The record does not contain a copy of the trial court's opinion.
Dissenting Opinion
I am troubled by the majority's holding in its second assignment of error. All matters in this case were resolved on April 11, 1991, when judgment was granted in favor of appellant in the Court of Common Pleas of Cuyahoga County, Herman Bentleyv. Grange, case No. 193127. Relying on Hill v. Allstate Ins. Co.
(1990),
I respectfully dissent from the majority view, in that I believe that appellees are collaterally estopped from asserting their wrongful death claim. The Ohio Supreme Court inThompson v. Wing (1994),
"Collateral estoppel applies when the fact or issue (1) was actually and directly litigated in the prior action, (2) was passed upon and determined by a court of competent jurisdiction, and (3) when the party against whom collateral estoppel is asserted was a party in privity with a party to the prior action." Id., citing Whitehead v. Gen. Tel. Co. (1969),
As the first two prongs are satisfied, it is the third prong of the Thompson test that is at issue here, i.e., whether the siblings were in privity to the parties of the first action.
First, I point out that R.C.
"[A]n action for wrongful death shall be brought in the name of the personal representative of the decedent for the exclusive benefit of the surviving spouse, the children, and the parents of the decedent, all of whom are rebuttably presumed to have suffered damages by reason of the wrongful death, and for the elusive benefit of the other next of kin of the decedent." (Emphasis added.)
The language contained in this statute mandates that the action for wrongful death be brought only by a personal representative. A major policy reason behind the enactment of this statute is so that defendants "`may not again be haled into court to answer for the same wrong.'" Burwell v. Maynard (1970),
"[G]ood policy reasons exist for requiring, as a condition precedent to the maintenance of a wrongful death action, that the person bringing the action be appointed by a court. Such a requirement eliminates the possibility that the defendant will face more than one lawsuit. It also allows for potential conflicts of interest to be revealed in advance of the filing of the action. And it ensures to some degree that the wrongful death action will be brought by a person who will act in the best interests of the beneficiaries, the real parties in interest."
I believe that the claim in the instant case is predicated upon a wrongful death. Keeping in mind R.C.
Further, appellees are collaterally estopped because they are, by way of privity, the same parties to the original action. "Privity" has been defined as "mutual or successive relationships to the same right of property, or such as identification of interest of one person with another as to represent the same legal right." Black's Law Dictionary (6 Ed. 1990) 1199. Assuming, as we would have this court do, that Herman Bentley brought a wrongful death claim in his capacity as administrator of Millard Bentley's estate, we should hold that appellees are in privity with Herman Bentley as administrator. "`It is the duty of a fiduciary of an estate to serve as representative of the entire estate. Such fiduciary, in the administration of an estate, owes a duty to beneficiaries to act in a manner which protects the beneficiaries' interests. We believe that this duty places the beneficiaries in privity with the executor.'" Weisberger v. Home Ins. Cos. (1991),
For the foregoing reasons, I would sustain the second assignment of error and reverse the judgment of the trial court. *106