Diaz v. Progressive Ins. Co., Unpublished Decision (8-11-2005)
Diaz v. Progressive Ins. Co., Unpublished Decision (8-11-2005)
Opinion of the Court
{¶ 2} "I. THE TRIAL COURT ERRED IN DENYING PLAINTIFF BARBARA DIAZ'S MOTION FOR PREJUDGMENT INTEREST."
{¶ 3} Prejudgment interest is authorized pursuant to R.C.
{¶ 4} "(C) Interest on a judgment, decree, or order for the payment of money rendered in a civil action based on tortious conduct and not settled by agreement of the parties, shall be computed from the date the cause of action accrued to the date on which the money is paid, if, upon motion of any party to the action, the court determines at a hearing held subsequent to the verdict or decision in the action that the party required to pay the money failed to make a good faith effort to settle the case, and that the party to whom the money is to be paid did not fail to make a good faith effort to settle the case."
{¶ 5} The seminal decision setting forth the guidelines for Ohio courts determining the question of prejudgment interest isKalain v. Smith (1986),
{¶ 6} "A party has not `failed to make a good faith effort to settle' under R.C.
{¶ 7} The Kalain court also noted that the statute requires all parties to make an honest effort to settle a case. A party may have "failed to make a good faith effort to settle," even when he has not acted in bad faith. The decision as to whether a party's settlement efforts indicate good faith is generally within the sound discretion of the trial court. Id., citing toHuffman v. Hair Surgeon, Inc. (1985),
{¶ 8} When considering a trial court's decision on a motion for prejudgment interest, this court's duty is to determine whether the trial court abused its discretion, that is, whether it acted unreasonably, arbitrarily, or unconscionably. Kalain, supra. If there is evidence in the record which supports the trial court's decision, it should be affirmed. Bisler v. DelVecchio (July 1, 1999), Cuyahoga App. No. 74300.; Algood v.Smith (Apr. 20, 2000), Cuyahoga App. Nos. 76121, 76122.
{¶ 9} By the admission of both parties in the instant matter, the trial court was actively involved in the settlement attempts prior to trial. In determining whether these efforts were reasonable for purposes of ruling on a prejudgment interest motion, the trial court is not limited to the evidence presented at the prejudgment interest hearing. The court may also review the evidence presented at trial, as well as its prior rulings and jury instructions, especially when considering such factors as the type of case, the injuries involved, applicable law, and the available defenses. Otherwise, "the hearing required under R.C.
{¶ 10} Appellant has not met her burden of demonstrating how appellees failed to make a good faith effort to settle the case prior to trial. From a review of the record presented, it appears that appellant's demand for settlement on the eve of trial was $75,000 and appellees' last offer for settlement was $60,000. This was an objectively reasonable settlement offer and was well within the range of appellant's settlement demand. There are no allegations that appellees failed to participate in the discovery process or that appellees attempted to create unnecessary delay during the pendency of the case.
{¶ 11} We find no abuse of discretion on the part of the trial court in this matter. Appellant's sole assignment of error is overruled.
Judgment affirmed.
It is ordered that appellees recover of appellants 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.
Kilbane, J., and McMonagle, J., Concur.
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