Heritage Insurance v. Ohio D.O.T., Unpublished Decision (6-17-2003)
Heritage Insurance v. Ohio D.O.T., Unpublished Decision (6-17-2003)
Opinion of the Court
{¶ 2} In May 1993, John R. Jurgensen Construction Company ("Jurgensen") entered into a contract with ODOT to carry out improvements at the intersection of State Route 49 and U.S. Route 40 in Montgomery County, Ohio. Heritage was the liability insurer for Jurgensen. Early in the project, an electrical subcontractor made a change in the sequence of the signal light in the construction zone, and no notice of the change was posted to the public. ODOT allegedly approved the change, but Jurgensen claims it was given no such notice. On January 22, 1994, Thora Roweta Moore's automobile collided with a pickup truck at the intersection and Moore was killed. Moore's estate sued Jurgensen, and on February 23, 1998, Moore's estate obtained a jury verdict against Jurgensen in the amount of $487,500. Heritage paid the judgment to Moore's estate, and Jurgensen paid a $50,000 deductible to Heritage pursuant to its insurance contract.
{¶ 3} On January 13, 1999, Heritage and Jurgensen brought an action in the Ohio Court of Claims against ODOT, alleging that ODOT negligently oversaw the construction and safety at the subject intersection and failed to safely direct the sequence of the traffic signal lights. Jurgensen and Heritage sought indemnification and contribution from ODOT. Several motions were filed, but the court stayed the matter on August 29, 2000, pending a decision of the Ohio Supreme Court in Community Ins. Co. v. Ohio Dept. of Transp. (2001),
{¶ 4} On May 15, 2002, ODOT moved for summary judgment, based in part on Community Ins. On June 3, 2002, Heritage and Jurgensen filed a memorandum contra ODOT's motion for summary judgment. On July 10, 2002, the trial court granted ODOT's motion for summary judgment as to the claims brought by Heritage, but denied ODOT's motion for summary judgment concerning contribution and indemnity claims asserted by Jurgensen. On July 11, 2002, the parties stipulated to the dismissal of Jurgensen's claims. Heritage appeals the trial court's judgment, asserting the following assignment of error:
{¶ 5} "The court of claims below erroneously granted defendant ODOT'S motion for summary judgment."
{¶ 6} Heritage asserts in its sole assignment of error that the trial court erred in granting ODOT's motion for summary judgment. Pursuant to Civ.R. 56, summary judgment is appropriate when: (1) there is no genuine issue of material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds can come to but one conclusion and that conclusion is adverse to the nonmoving party, said party being entitled to have the evidence construed most strongly in its favor. Zivich v. Mentor Soccer Club, Inc. (1998),
{¶ 7} In granting summary judgment to ODOT, the court relied upon R.C.
{¶ 8} "Recoveries against the state shall be reduced by the aggregate of insurance proceeds, disability award, or other collateral recovery received by the claimant. This division does not apply to civil actions in the court of claims against a state university or college under the circumstances described in section
{¶ 9} In Community Ins., supra, Rachelle Dronebarger was injured in a single car accident, and her insurer, Community Insurance Company ("Community"), paid Dronebarger's medical expenses pursuant to an employee health plan. Community then filed an action in the Court of Claims seeking subrogation against ODOT for the medical expenses it paid. The Ohio Supreme Court held that an insurer that has been granted the right of subrogation by a person on whose behalf the insurer has paid medical expenses incurred as the result of the negligent conduct of the state is subject to R.C.
{¶ 10} Heritage first contends that Community Ins. can be distinguished from the present case, rendering it inapplicable. Heritage argues that, unlike the insurer in Community Ins., it is not an insurer of the decedent/injured claimant, and is not seeking subrogation for any amounts paid to the decedent/injured claimant pursuant to an insurance policy with the decedent/injured claimant. In other words, Heritage asserts Jurgensen is not the injured "claimant" under R.C.
{¶ 11} We find Heritage's argument well-taken. As indicated above, R.C.
{¶ 12} Heritage first asserts that Jurgensen is not a "claimant," as used in R.C.
{¶ 13} The only one who had a possible claim against the state of Ohio was the estate of Thora Roweta Moore, who also had a claim against Jurgensen. Allegedly both Jurgensen and the state of Ohio were negligent in causing the death of Moore. Since allegedly Jurgensen and the state were joint tortfeasors, the estate could bring suit against either, or both, if the estate could find an entity that had jurisdiction over both defendants. The only jurisdiction meeting that criteria is the Court of Claims. The common pleas court, the jurisdiction selected by the estate, had no jurisdiction over the state of Ohio.
{¶ 14} Had the case been tried in the Court of Claims and had both Jurgensen and the state been found liable, each party would have been individually liable for their own share and a contribution or indemnity action would not have been necessary. In other words, Jurgensen, or its insurer Heritage, would be responsible for only its share and there would be no subrogation. See Nevins v. Ohio Dept. of Trans. (1998),
{¶ 15} The purpose of the statute is to prevent injured parties from getting a windfall by recovering from both an insurer and the state for the same injury. As applied to the current case, R.C.
{¶ 16} Having more clearly delineated the status of Jurgensen and Heritage, the inapplicability of R.C.
{¶ 17} Accordingly, Heritage's single assignment of error is sustained, the judgment of the Ohio Court of Claims is reversed, and this case is remanded to that court for a determination of whether the state was negligent and, if so, whether Jurgensen is entitled to contribution for the benefit of Heritage.
Judgment reversed and case remanded.
PETREE, P.J., and McCORMAC, J., concur.
McCORMAC, J., retired, of the Tenth Appellate District, assigned to active duty under authority of Section
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