In Re Estate of Stewart, Unpublished Decision (6-28-2000)
In Re Estate of Stewart, Unpublished Decision (6-28-2000)
Opinion of the Court
Decedent's estate was opened in the Lorain County Court of Common Pleas, Probate Division, on November 1, 1996, solely for the purpose of pursuing one or more wrongful death actions. Claimant was named administratrix of the estate. In January 1997, Claimant filed a complaint against Charles Myles, who was alleged to have negligently caused the death of Decedent. The parties agreed to a settlement of $950,000 in July 1997; the probate court approved the settlement on December 8, 1998.1
In October 1998, Kokosing asserted its subrogation right under R.C.
(1) No genuine issue as to any material fact remains to be litigated; (2) the moving party is entitled to judgment as a matter of law; and (3) it appears from the evidence that reasonable minds can come to but one conclusion, and viewing such evidence most strongly in favor of the party against whom the motion for summary judgment is made, that conclusion is adverse to that party.
Temple v. Wean United, Inc. (1977),
50 Ohio St.2d 317 ,327 . Appellate review of a lower court's entry of summary judgment is de novo, applying the same standard used by the trial court. McKay v. Cutlip (1992),80 Ohio App.3d 487 ,491 . The question of whether a statute passes constitutional scrutiny is a question of law, which we also review de novo. See Long Beach Assn., Inc. v. Jones (1998),82 Ohio St.3d 574 ,576 .
B. Due Process/Takings
First Assignment of Error
The Probate Court erroneously ruled that Ohio Revised Code §
4123.931 [sic] violates Article I, §§ 1, 16 and 19 [sic] of the Ohio Constitution and the due process clause [sic] of theFourteenth Amendment to the United States Constitution for the reasons advanced by Appellee.In the first assignment of error, Kokosing argues that the probate court erred by finding that R.C.
4123.931 violated due process under the Ohio and United States Constitutions. We agree.
A statute is presumed constitutional and will be declared invalid only if the challenging party demonstrates beyond a reasonable doubt that the statute violates a constitutional provision. Desenco, Inc. v. Akron (1999),
(A) The payment of compensation or benefits pursuant to [R.C. Chapter 4123] * * * creates a right of subrogation in favor of a statutory subrogee against a third party. A statutory subrogee's subrogation interest includes past payments of compensation and medical benefits and estimated future values of compensation and medical benefits arising out of an injury to or disability or disease of a claimant.
(B) A claimant shall notify a statutory subrogee of the identity of all third parties against whom the claimant has or may have a right of recovery. No settlement, compromise, judgment, award, or other recovery in any action or claim by a claimant shall be final unless the claimant provides the statutory subrogee with prior notice and a reasonable opportunity to assert its subrogation rights. If a statutory subrogee is not given that notice, the third party and the claimant shall be jointly and severally liable to pay the statutory subrogee the full amount of the subrogation interest.
(C) The right of subrogation under this chapter is automatic, regardless of whether a statutory subrogee is joined as a party in an action by a claimant against a third party. A statutory subrogee may assert its subrogation rights through correspondence with the claimant and the third party or their legal representatives. A statutory subrogee may institute and pursue legal proceedings against a third party either by itself or in conjunction with a claimant. If a claimant disputes the validity or amount of an asserted subrogation interest, the claimant shall join the statutory subrogee as a necessary party to the action against the third party.
(D) The entire amount of any settlement or compromise of an action or claim is subject to the subrogation right of a statutory subrogee, regardless of the manner in which the settlement or compromise is characterized. Any settlement or compromise that excludes the amount of compensation or medical benefits shall not preclude a statutory subrogee from enforcing its rights under this section. The entire amount of any award or judgment is presumed to represent compensation and medical benefits and future estimated values of compensation and medical benefits that are subject to a statutory subrogee's subrogation rights unless the claimant obtains a special verdict or jury interrogatories indicating that the award or judgment represents different types of damages.
(E) Subrogation does not apply to the portion of any judgment, award, settlement, or compromise of a claim to the extent of a claimant's attorney's fees, costs, or other expenses incurred by a claimant in securing the judgment, award, settlement, or compromise, or the extent of medical, surgical, and hospital expenses paid by a claimant from the claimant's own resources for which reimbursement is not sought. No additional attorney's fees, costs, or other expenses in securing any recovery may be assessed against any subrogated claims of a statutory subrogee.
Kokosing, as a self-insuring employer, is a statutory subrogee. See R.C.
4123.93 (B).
The probate court found R.C.
In support of her motion for summary judgment, Claimant argued below that R.C.
In Yoh v. Schlachter (Mar. 17, 2000), Williams App. No. WM-99-008, unreported, 2000 Ohio App. LEXIS 1057, the Sixth District Court of Appeals held that R.C.
Similar arguments were also rejected in In re Estate of Ross
(1997),
We find Yoh and Ross persuasive. As such, we conclude that R.C.
The Probate Court erroneously ruled that Ohio Revised Code §
4123.931 [sic] violates Article I, § 2 [sic] of the Ohio Constitution and the equal protection clause [sic] of theFourteenth Amendment to the United States Constitution for the reasons advanced by Appellee.Kokosing argues in its second assignment of error that the probate court erred by holding R.C.
4123.931 unconstitutional under the Equal Protection Clause of theFourteenth Amendment to the United States Constitution and Section2 , ArticleI of the Ohio Constitution. We agree.
"A statutory classification which involves neither a suspect class nor a fundamental right does not violate the Equal Protection Clause of the Ohio or United States Constitutions if it bears a rational relationship to a legitimate governmental interest." Menefee v. Queen City Metro (1990),
Claimant argues that R.C.
We conclude that R.C.
Furthermore, the statute is rationally related to this legitimate governmental interest. R.C.
Each of the three legislative distinctions asserted by Claimant are rationally related to the legitimate governmental interest of preventing double recoveries. We hold that R.C.
The Probate Court erroneously ruled that Ohio Revised Code §
4123.931 [sic] violates Article I, § 19a [sic] of the Ohio Constitution for the reasons advanced by Appellee.Kokosing contends in its third and final assignment of error that the probate court erred by holding that R.C.
4123.931 violates Section19a , ArticleI of the Ohio Constitution. We agree.6
Section 19a, Article I states: "The amount of damages recoverable by civil action in the courts for death caused by the wrongful act, neglect, or default of another, shall not be limited by law." The court in Ross,
Section 19a, Article I prohibits only the enactment of laws that place a specific limitation on the amount of recovery. In the present case, R.C.
4123.931 does not limit the amount of recovery an injured party is entitled to recover. On the contrary, R.C.4123.931 merely compensates the employer for any past and future payments it has had, or will have, to pay as a result of the third-party tortfeasor's actions. Moreover, if the amount recovered from the tortfeasor is greater than the amount contributed by the employer under the workers' compensation law, the injured party is entitled to that additional amount.(Citation omitted.) We agree with the reasoning of the Ross court. Accordingly, the probate court erred by holding that R.C.
4123.931 was unconstitutional under Section19a , ArticleI of the Ohio Constitution. The third assignment of error is sustained.
The Court finds that there were reasonable grounds for this appeal.
We order that a special mandate issue out of this Court, directing the Court of Common Pleas, County of Lorain, to carry this judgment into execution. A certified copy of this journal entry shall constitute the mandate, pursuant to App.R. 27.
Immediately upon the filing hereof, this document shall constitute the journal entry of judgment, and it shall be file stamped by the Clerk of the Court of Appeals at which time the period for review shall begin to run. App.R. 22(E).
Costs taxed to Appellee.
Exceptions.
__________________ LYNN C. SLABY
BATCHELDER, P.J., QUILLIN, J., CONCUR.
(Quillin, J., retired Judge of the Ninth District Court of Appeals, sitting by assignment pursuant to Section 6 (C), Article IV, Constitution.)
Case-law data current through December 31, 2025. Source: CourtListener bulk data.