Ark Advanced Remediation, L.L.C. v. Watson

2024 Ohio 2874
CourtOhio Court of Appeals
DecidedJuly 24, 2024
Docket22CA15
StatusPublished
Cited by2 cases

This text of 2024 Ohio 2874 (Ark Advanced Remediation, L.L.C. v. Watson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ark Advanced Remediation, L.L.C. v. Watson, 2024 Ohio 2874 (Ohio Ct. App. 2024).

Opinion

[Cite as Ark Advanced Remediation, L.L.C. v. Watson, 2024-Ohio-2874.]

IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT GALLIA COUNTY

Ark Advanced Remediation, LLC, : Case No. 22CA15

Plaintiff-Appellee, :

v. : DECISION AND Roger A. Watson, et al., : JUDGMENT ENTRY

Defendants-Third-Party : Plaintiffs-Appellants, : RELEASED 7/24/2024 v. : Auto-Owners (Mutual) Insurance Company, :

Third-Party Defendant-Appellee. :

APPEARANCES:

William L. Archer, Jr., Circleville, Ohio for defendants-third-party plaintiffs-appellants.

William S. Cole and Evan T. Cole, Cole & Kirby, Jackson, Ohio for plaintiff-appellee.

Brian Winchester and Taylor K. Dennen, McNeil, Schick, Archibald & Biro, Cleveland, Ohio for third-party defendant-appellee.

Hess, J.

{¶1} Defendants-third-party plaintiffs-appellants Roger A. Watson and Cindy

Hager (“Homeowners”) appeal the trial court’s judgment in favor of plaintiff-appellee Ark

Advanced Remediation, LLC (“Ark”) and third-party defendant-appellee Auto-Owners

(Mutual) Insurance Company (“Auto-Owners”) granting directed verdicts in favor of Ark

and Auto-Owners on claims related to mold remediation performed by Ark for Gallia App. No. 22CA15 2

Homeowners and covered by the insurance policy issued by Auto-Owners. Homeowners

also appeal the trial court’s judgment granting their trial counsel’s request to withdraw and

denying their request for an extension of the trial date.

{¶2} Homeowners contend that the trial court abused its discretion when it

permitted their counsel to withdraw without assuring that they would not be prejudiced

because of counsel’s withdrawal. They argue that the trial court should have investigated

the basis for their attorney’s request to withdraw to look for potential abuses when an

attorney leaves a difficult case nearing trial. Homeowners also contend that the trial court

abused its discretion when it denied their motion for a continuance of the trial. They allege

that they tried to secure substitute counsel but were unable to during the seven months

prior to the trial and a continuance should have been granted to permit them to continue

to search. They also allege that the case had been delayed for so long at that point that

an additional indefinite delay would not have inconvenienced the other parties. Finally,

Homeowners contend the trial court erred as a matter of law when it granted Ark a

directed verdict because the question of the existence of an oral contract was a factual

question for the jury. As a result, they ask that the judgment be reversed, and a new trial

ordered.

{¶3} For the reasons that follow, we find that the trial court did not abuse its

discretion in granting the Homeowners’ attorney’s motion to withdraw or in denying the

Homeowners’ motion for a continuance of the trial. And, the trial court did not err in

granting Ark a directed verdict. We overrule Homeowners’ assignments of error and affirm

the judgment of the trial court. Gallia App. No. 22CA15 3

I. FACTS AND PROCEDURAL HISTORY

{¶4} In January 2018, Ark filed a complaint against Homeowners in which it

alleged that beginning in July 2017, it had performed mold remediation work for the

Homeowners for which the Homeowners had not paid. Ark sought a judgment against

Homeowners in the sum of $61,340.41. Homeowners filed an answer and counterclaim

against Ark in which they alleged that Ark performed the work in a negligent and

unworkmanlike manner, causing Homeowners to expend substantial sums to have the

work completed in a proper manner. Homeowners also filed a third-party complaint

against Auto-Owners asserting an indemnification claim alleging that Auto-Owners is

obligated to pay the Homeowners’ claims for any judgment Ark obtains against the

Homeowners.

{¶5} Auto-Owners answered and filed a counterclaim for a declaratory judgment

against Ark and Homeowners to determine the parties’ rights under the insurance policy.

Auto-Owners alleged that Homeowners had made a claim for water damage and mold

caused by a water leak in the refrigerator water line that damaged the kitchen, hallway,

and laundry room areas. Auto-Owners alleged that in response to the claim, it issued

three payments to Homeowners: (1) a $35,529.13 payment under the dwelling coverage

of the policy; (2) a $46,470.00 payment under the fungi/mold coverage of the policy; and

(3) a $14,694.23 payment under the additional living expense coverage of the policy, for

a total sum of $96,693.36. Auto-Owners sought a declaration that these payments fulfilled

its obligations to Homeowners under the policy, and that it was not required to defend or

indemnify Homeowners against the claims brought by Ark. Gallia App. No. 22CA15 4

{¶6} In March 2019, the trial court issued a case scheduling order and

established a motion/discovery deadline of June 2019 and a jury trial for November 19,

2019. Auto-Owners filed a timely motion for summary judgment and, at the same time,

the Homeowners filed a motion to amend their third-party complaint against Auto-Owners.

The court granted Homeowners’ motion and Homeowners filed an amended third-party

complaint against Auto-Owners in June 2019 that added breach of contract and bad faith

claims against Auto-Owners. Auto-Owners answered the amended third-party complaint

and added a supplement to its motion for summary judgment.

{¶7} In anticipation of the November 19, 2019 trial, Auto-Owners filed a motion

to bifurcate the bad faith claim, a motion in limine concerning expert testimony, a set of

proposed jury instructions, jury interrogatories, and verdict forms, as well as its trial brief,

witness list, and exhibit list. Auto-Owners also filed a motion in limine to introduce the

testimony of an attorney, Brian Garvine, who had been retained by Homeowners before

Ark sued them. According to Auto-Owners, the Homeowners had retained Garvine in

October 2017 to help them resolve the mold remediation work, which began in July 2017.

Garvine had contacted Auto-Owners and demanded additional payment to resolve the

claim. Auto-Owners contended that it had reached a settlement with the Homeowners

through Garvine’s efforts whereby Auto-Owners paid Homeowners an additional sum of

$32,925.33, which exhausted the mold remediation policy limits. This final payment was

issued on December 18, 2017 as a full and final settlement as to any and all disputes of

the Homeowners’ claim. A month later, in January 2018, Ark sued Homeowners. The trial

court granted the motion to bifurcate the bad faith claim and granted the motion to permit

the testimony of Brian Garvine. Gallia App. No. 22CA15 5

{¶8} By agreement of the parties, the November 19, 2019 trial was continued

until March 16, 2020.

{¶9} Shortly after the trial was continued, the trial court issued a decision on

Auto-Owners’ motion for summary judgment. The trial court determined that genuine

issues of material fact existed concerning: (1) whether Auto-Owners had negotiated a

settlement with Homeowners; (2) whether additional monies were owed Homeowners

under the policy; and (3) whether Auto-Owners violated its duty to act in good faith.

However, it found it undisputed that Homeowners, not Auto-Owners, hired Ark to provide

mold remediation and repair work:

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