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

2024 Ohio 2874
Ohio Court of Appeals·Decided July 24, 2024·No. 22CA15·Published·Cited by 2 cases

Opinion

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

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.

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.

{¶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.

{¶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:

The Court finds that there is no genuine issue of material facts that Ark was working for Watson [Homeowners], and not Auto-Owners as is the normal custom for work which is being performed pursuant to an insurance claim.

The contractor works at the direction of the insured. The insurance company pays the contractor and/or the insured under the terms of the policy.

* * *

The Court finds that Auto-Owners is entitled to judgment as a matter of law.

There is no genuine issue of material fact that Auto-Owners did not hire Ark.

Free access — add to your briefcase to read the full text and ask questions with AI

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

2024 Ohio 2874 (Ark Advanced Remediation, L.L.C. v. Watson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Nichols v. Nichols
2026 Ohio 1445 (Ohio Court of Appeals, 2026)
Krista v. Thompson
2025 Ohio 5566 (Ohio Court of Appeals, 2025)
Harmon v. Walters
2025 Ohio 1037 (Ohio Court of Appeals, 2025)