Kurth v. Nationwide Insrance Co., Unpublished Decision (9-28-2001)
Kurth v. Nationwide Insrance Co., Unpublished Decision (9-28-2001)
Dissenting Opinion
I respectfully dissent from the majority's decision as it applies to appellee Nationwide Insurance Company. Nationwide was here as an appellee which had offered and tendered for payment to appellants the $50,000 limit of its contract liability. The draft was made out to appellants and their lawyer. Regardless of what else happened with the draft, Nationwide fulfilled its contractual obligations to appellants. At that point, appellants had no enforceable or meritorious claim against Nationwide, and still do not. Appellants, in order to prevail under Civ.R. 60(B), must show they have a meritorious claim against appellee Nationwide, which they cannot do. I, therefore, respectfully dissent from the portion of the majority's decision which relates to appellee Nationwide.
Opinion of the Court
On June 14, 1994, Ronald Kurth was involved in a motor vehicle collision. As a consequence of the injuries received in that collision, Ronald and his spouse, Kathleen, filed a negligence/loss of consortium action against the alleged tortfeasor, appellee, Thomas P. Montion. Appellants also raised an uninsured/underinsured motorist claim against their own motor vehicle insurer, appellee, Nationwide Insurance Company. Appellants were represented by Attorney Michael E. McGill.
On July 23, 1998, the trial court dismissed appellants' lawsuit, with prejudice. The court's judgment entry indicates that the matter was settled between all of the parties and is signed by the judge and approved by the respective attorneys, including McGill, for all parties.
On April 10, 2000, appellants filed a motion, pursuant to Civ.R. 60(B)(5) for relief from judgment. In support of their motion, Ronald and Kathleen each filed an affidavit in which they averred that on December 16, 1996, McGill entered into a settlement with Nationwide on their behalf, but without their consent. According to the affidavits, McGill accepted a draft for $50,000 from Nationwide and forged appellants' names in order to cash the draft. Appellants further swore that they neither received any of the proceeds from the "settlement" nor consented to the dismissal of their cause of action. In a second set of affidavits, both Ronald and Kathleen vowed that they did not learn that their case was dismissed in 1998 until February 2000 when, after not hearing from McGill for a number of months and being unable to contact him, they asked their current counsel to look into the matter.
At the hearing on appellants' motion, it was essentially admitted that McGill entered into the settlement agreement without his clients' consent, obtained the $50,000 check from Nationwide, forged appellants' names on the check and took the proceeds. It was also revealed that Nationwide, despite repeated and numerous requests, never obtained a release from McGill. As to the dismissal of the case against Montion, it was disclosed that McGill obtained a settlement check in the amount of $12,500 from Montion's motor vehicle liability insurer on December 27, 1996; however, it was unclear whether the check was ever negotiated. Montion, like Nationwide, never received a release signed by appellants.
At the hearing on their motion, appellants argued that they were entitled to relief from judgment because McGill perpetrated a fraud upon the court. In rendering its oral decision, the court relied on ArgoPlastics Co. v. Cleveland (1984),
"The Lucas County Court of Common Pleas erred in denying Appellants' Rule 60(B)(5) Motion for Relief from that Court's prior order that had dismissed Appellants' case, since the previous order had been secured through fraudulent representations to the Court by Appellants' prior counsel."
In order to prevail on a motion brought pursuant to Civ.R. 60(B), the moving party must demonstrate that "(1) the party has a meritorious defense or claim to present if relief is granted; (2) the party is entitled to relief under one of the grounds stated in Civ.R. 60(B)(1) through (5); and (3) the motion is made within a reasonable time, and, where the grounds of relief are Civ.R. 60(B)(1), (2) or (3), not more than one year after the judgment, order or proceeding was entered or taken." GTE Automatic Elec., Inc. v. ARC Industries, Inc., 47 Ohio St.2d at paragraph two of the syllabus. All three of the requirements must be met for the motion to be granted. Rose Chevrolet, Inc. v. Adams (1988),
The trial court's ruling on a motion for relief from judgment will not be disturbed on appeal absent a showing of abuse of discretion. Griffeyv. Rajan (1987),
In the present case, it is undisputed that Ronald Kurth received serious personal injuries as a result of the motor vehicle collision that occurred on June 14, 1994. Furthermore, it is undisputed that appellants held a contract for underinsured motor vehicle coverage with Nationwide at the time of the collision. Thus, Ronald and Kathleen can presentpotentially meritorious personal injury, loss of consortium and underinsured claims if the motion for relief from judgment is granted. See Colley v. Brazell (1980),
Fraud upon the court can constitute grounds for relief under Civ.R. 60(B)(5). Coulson v. Coulson (1983),
Here, McGill negotiated a settlement with Nationwide and with the tortfeasor's motor vehicle insurer without his clients' knowledge or consent, forged appellants' names to the check or checks issued by the respective insurers and, at least with respect to the check issued by Nationwide, obtained the proceeds. He then submitted a judgment entry of dismissal of the case to the court, again without his clients' knowledge or consent, representing to that court that "that this matter have [sic] been settled by and between the parties thereto."
The act of misrepresenting that a case is settled and that all parties agree to a voluntary dismissal, with prejudice, by an officer of the court constitutes active participation in defrauding the court and prevents the judicial system from functioning in its customary manner. See Rigdon v. Flowers (1995),
On consideration whereof, this court finds that substantial justice has not been done the parties complaining, and the judgment of the Lucas County Court of Common Pleas is reversed. This cause is remanded to that court for further proceedings consistent with this judgment. Appellees are ordered to pay the costs of this appeal.
James R. Sherck, J., CONCUR.
Richard W. Knepper, J., dissents and writes separately.
The second case, GTE Automatic Electric, Inc. v. ARC Industries, Inc., Thus, the applicability of fraud upon the court as a ground for relief under Civ.R. 60(B)(5) was not considered in either of these cases. Furthermore, their holdings were expressly limited to motions for relief from judgment made pursuant to Civ.R. 60(B)(1). Consequently, the trial court's reliance on these cases as support for its decision is misplaced.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.