Pillo v. Stricklin, Unpublished Decision (1-28-2002)
Pillo v. Stricklin, Unpublished Decision (1-28-2002)
Opinion of the Court
On April 24, 2000, appellees filed a motion for leave to amend the complaint to add appellants, Transcontinental Insurance Company and Continental Casualty Company. Appellees also filed a motion for leave to file a motion for summary judgment against appellants. By judgment entries filed April 25, 2000, the trial court granted both motions.
On April 27, 2000, appellees filed an amended complaint, adding appellants as new party defendants. Against Transcontinental, appellees claimed the business auto policy issued to ASC Industries, Inc., appellee James Pillo's employer, provided appellees with $1,000,000 in uninsured/underinsured motorists coverage. Against Continental, appellees claimed a commercial umbrella policy issued to ASC Industries, Inc. provided appellees with an additional $4,000,000 in uninsured/underinsured motorists coverage. On same date, appellees filed a motion for summary judgment against appellants. By judgment entry filed June 5, 2000, the trial court granted appellees' motion for summary judgment as against appellants.
Appellants filed an appeal and this court reversed the decision and remanded the case to the trial court for further discovery. See, Pillov. Strickland (January 29, 2001), Stark App. No. 2000CA00171.
On February 27, 2001, appellees filed a second amended complaint. On March 15, 2001, appellants answered and counterclaimed, seeking equitable reformation.
On April 25, 2001, appellees renewed their motion for summary judgment. Appellants filed their motion for summary judgment on May 31, 2001. By judgment entry filed June 12, 2001, the trial court granted appellees' motion and referred the matter to binding arbitration.
Appellants filed an appeal and this matter is now before this court for consideration. Assignment of error is as follows:
I
WHETHER THE TRIAL COURT ERRED IN GRANTING SUMMARY JUDGMENT IN FAVOR OF PLAINTIFFS-APPELLEES AND AGAINST TRANSCONTINENTAL INSURANCE COMPANY AND CONTINENTAL CASUALTY COMPANY.
Summary judgment motions are to be resolved in light of the dictates of Civ.R. 56. Said rule was reaffirmed by the Supreme Court of Ohio in Stateex rel. Zimmerman v. Tompkins (1996),
Civ.R. 56(C) provides that before summary judgment may be granted, it must be determined that (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 nonmoving party, that conclusion is adverse to the party against whom the motion for summary judgment is made. State ex rel. Parsons v. Fleming (1994),
68 Ohio St.3d 509 ,511 ,628 N.E.2d 1377 ,1379 , citing Temple v. Wean United, Inc. (1977),50 Ohio St.2d 317 ,327 , 4 O.O3d 466, 472,364 N.E.2d 267 ,274 .
As an appellate court reviewing summary judgment motions, we must stand in the shoes of the trial court and review summary judgments on the same standard and evidence as the trial court. Smiddy v. The Wedding Party,Inc. (1987),
We will address appellants' arguments as they appear in their brief. Appellants argue Continental's umbrella policy did not provide appellees with uninsured/underinsured motorists coverage because the named insured rejected such coverage in accordance with the requirements of R.C.
A named insured or applicant may reject or accept both coverages as offered under division (A) of this section, or may alternatively select both such coverages in accordance with a schedule of limits approved by the superintendent. * * * A named insured's or applicant's rejection of both coverages as offered under division (A) of this section, or a named insured's or applicant's selection of such coverages in accordance with the schedule of limits approved by the superintendent, shall be in writing and shall be signed by the named insured or applicant. A named insured's or applicant's written, signed rejection of both coverages as offered under division (A) of this "section" shall be effective on the day signed, shall create a presumption of an offer of coverages consistent with division (A) of this section, and shall be binding on all other named insureds, insureds, or applicants. (Emphasis added.)
By judgment entry filed June 12, 2001, the trial court found Continental's rejection was invalid pursuant to Linko v. Indemn. Ins.Co. of N. Am. (2000),
Gyori [v. Johnston Coca-Cola Bottling Group, Inc. (1996),
76 Ohio St.3d 565 ] stands for the proposition that we cannot know whether an insured has made an express, knowing rejection of UIM coverage unless there is a written offer and written rejection. It only follows that a valid rejection requires a meaningful offer, i.e., an offer that is an offer in substance and not just in "name." We agree with the following required elements for written offers imposed by Ohio appellate courts: a brief description of the coverage, the premium for that coverage, and an express statement of the UM/UIM coverage limits.
Appellants do not argue that the rejection form at issue meets the requirements of Linko, but rather that Linko is inapplicable sub judice
because said case interpreted a former version of R.C.
We concur with appellees that the 1997 Amendments to R.C.
3937.18 did not eliminate the Linko requirements. As noted by appellees, no provisions in H.B. 261 clarified or modified what the contents of a written offer must be.
* * *
According to appellant, the `presumption' referred to above constitutes a conclusive presumption as opposed to a rebuttable presumption. We, however, do not agree. According to State v. Myers (1971),
26 Ohio St.2d 190 ,201 , `* * * statutory presumptions not specifically designated to be conclusive, may be rebutted by other evidence. * * *' (Citations omitted.) Thus, since the statutory presumption set forth in R.C.3937.18 (C) is not `specifically designated to be conclusive', we find that the same is rebuttable. See also Thomas Steel Strip Corp. v. Limbach (1991),61 Ohio St.3d 340 . In short, the presumption of an offer of coverages consistent with R.C.3937.18 (A) was rebuttable.
Based upon the foregoing, we find the trial court did not err in finding that the uninsured/underinsured motorists coverage rejection form of the Continental policy did not satisfy the requirements of R.C.
Appellants argue in light of the trial court's decision that appellees are insureds under the policies pursuant to Scott-Pontzer v. LibertyMutual Fire Insurance Company (1999),
Reformation is a remedy to correct a written contract if said contract fails to reflect the agreement of the parties. Castle v. Daniels (1984),
We realize that the conclusion reached herein may be viewed by some as a result that was not intended by the parties to the insurance contracts at issue. Nonetheless, we believe that to adopt appellees' position in this matter would clearly produce absurd results.
While the Supreme Court of Ohio acknowledged the decision may not be viewed as the result intended by the parties, the court did not reform the policies. In fact, the court did not discuss reformation in any manner, either as an equitable solution or in declining to address it. We, in turn, decline to adopt an equitable reformation solution when the Supreme Court of Ohio clearly could have done so but did not.
Upon review, we find the trial court did not err in granting summary judgment to appellees.
The sole assignment of error is denied.
Hon. Sheila G. Farmer, P.J., Hon. John W. Wise, J., Hon. John F. Boggins, J., concur.
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