765 N.E.2d 967 | Ohio Ct. App. | 2001
The record reveals that appellant sustained serious injuries in an automobile accident that occurred on August 30, 1986. Appellant alleges in his complaint that he was an insured under a homeowner's policy of insurance issued by State Farm. Appellant further alleged that he was entitled to underinsured motorists benefits under this policy. For reasons not apparent from the record, appellant did not make a claim for these benefits until April 6, 2000. His claim not only demanded payment of the limits of the policy, which was $100,000, but also included a demand for interest from the date of the accident. State Farm promptly instituted an investigation and eventually paid the policy limits on June 29, 2000, but denied appellant's demand for interest.
On September 12, 2000, appellant instituted the within action1 claiming he was entitled to interest on this amount from the date of the accident until the date of payment. Both parties moved for summary judgment. The trial court ultimately denied appellant's motion and granted State Farm's motion without opinion. *284
Appellant is now before this court and argues in his sole assignment of error that the trial court inappropriately granted State Farm's motion for summary judgment.
An appellate court reviews a trial court's decision on a motion for summary judgment de novo. Grafton v. Ohio Edison Co. (1996),
In his motion for summary judgment, appellant claims that he is owed interest under R.C
In its cross-motion for summary judgment, State Farm contends that an award of prejudgment interest is inappropriate in this case because appellant's claim was not properly due and payable until it was notified of the claim and given a reasonable opportunity to investigate its validity. An affidavit of the State Farm claim specialist handling appellant's claim was appended to its motion. The claim specialist averred that, within one week of the notice of appellant's claim, he corresponded with appellant and requested medical records, police reports and records incident to any litigation regarding the accident. Appellant finally submitted the balance of the requested documents on June 13, 2000 and State Farm maintains that it promptly paid the claim two weeks later.
As a threshold issue, both parties have submitted several cases that each intends to rely upon as supplemental authority. State Farm advises us of its intent to rely on Davidson v. Motorists Mut. Ins. (2001),
Neither this court on review nor the court below was asked to construe whether the homeowner's policy, under which State Farm paid appellant underinsured benefits, provided such coverage. State Farm had already made the decision that coverage was available and paid the limits under that policy without court intervention. At oral argument, State Farm argued that, based on Davidson, money was never due and payable and, therefore, R.C.
We decline to address this argument. Not only was the issue of whether there was coverage under the homeowner's policy not before this court or the court below, the policy itself is not before this court nor the court below. We express no opinion, therefore, as to whether coverage was unavailable under the homeowner's policy so as to preclude an award of prejudgment interest. Our opinion today is confined to the resolution of the issue before the trial court; namely, whether an award of interest is appropriate under R.C.
R.C.
* * * [W]hen money becomes due and payable upon any * * * other instrument of writing * * * the creditor is entitled to interest * * *.
An insurance contract is an instrument of writing and, therefore, a claim for uninsured/underinsured motorists benefits arising under that writing may result in the payment of money due and payable to the claimant. Landis v. Grange Mut. Ins Co. (1998),
We note at the outset that the payment of interest under R.C.
Be that as it may, historically, an award of prejudgment interest is compensation to the plaintiff for the period of time between accrual of the claim and judgment. Royal Elec. Constr. Corp. v. Ohio State Univ. (1995),
Nonetheless, we are confronted in this case not with whether the trial court affixed the proper accrual date but whether the court erred in denying interest altogether. R.C.
This court, in Beal v. State Farm Ins. Co. (1999),
We have no unnecessary delay in this case. We are mindful that the policy of insurance at issue in this case is a contract and that State Farm determined that underinsured motorists benefits were due under that contract. Not only did it make this determination without court intervention but it made it promptly once the requested documents were received. It is disingenuous of appellant to suggest that State Farm should have paid these benefits in 1986, without it receiving notice of a claim, and that any delay between appellant's receipt of benefits and his eventual claim is the fault of State Farm because it failed to offer these benefits at the time of the accident. This is patently absurd. Any delay occasioned between the date of the accident and the notice of claim is to be borne by the appellant under the facts and circumstances of this case.
Because we find that State Farm acted promptly in paying a claim it believed covered under a policy of insurance it issued, an award of interest is unwarranted in this case. As such, no genuine issue of material fact remained to be litigated and the trial court did not err in granting State Farm's motion for summary judgment.
Appellant's sole assignment of error is not well taken and is overruled.
It is ordered that appellee recover of appellant costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this court directing the Common Pleas Court to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
KENNETH A. ROCCO, J. and JAMES D. SWEENEY, J., CONCUR.