Baber v. Ohio Mut. Ins. Co.

2021 Ohio 1625
CourtOhio Court of Appeals
DecidedMay 10, 2021
Docket17-20-10
StatusPublished
Cited by2 cases

This text of 2021 Ohio 1625 (Baber v. Ohio Mut. Ins. Co.) 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
Baber v. Ohio Mut. Ins. Co., 2021 Ohio 1625 (Ohio Ct. App. 2021).

Opinion

[Cite as Baber v. Ohio Mut. Ins. Co., 2021-Ohio-1625.]

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT SHELBY COUNTY

LORMA BABER,

PLAINTIFF-APPELLANT, CASE NO. 17-20-10

v.

OHIO MUTUAL INSURANCE COMPANY ET AL., OPINION

DEFENDANTS-APPELLEES.

Appeal from Shelby County Common Pleas Court Trial Court No. 19CV000239

Judgment Affirmed

Date of Decision: May 10, 2021

APPEARANCES:

Stanley R. Evans for Appellant

Joseph F. Nicholas and Frank H. Scialdone for Appellee Case No. 17-20-10

MILLER, J.

{¶1} Plaintiff-appellant, Lorma Baber, appeals the May 21, 2020 decision of

the Shelby County Court of Common Pleas granting the motion for summary

judgment of defendant-appellee, Allenbaugh Insurance Agency (“AIA”). For the

reasons that follow, we affirm.

I. Facts and Procedural History

{¶2} Baber is the owner of a farm and farmhouse located in Maplewood,

Ohio. On October 12, 2017, the farmhouse was severely damaged by a fire. While

the fire was still in progress, Baber contacted AIA to report the fire and to file an

insurance claim. Baber’s insurance policy, which was underwritten by United Ohio

Insurance Company, a subsidiary of Ohio Mutual Insurance Company (“OMIC”),

was procured for her by AIA. Under the terms of the insurance policy, Baber could

receive either the actual cash value of the damage caused by the fire or the costs to

repair or rebuild the farmhouse up to the policy limit of $284,000. However, the

policy included the following provision: “We pay no more than the actual cash

value of the damage unless and until actual repair or replacement is complete. If

repair or replacement of the damage is not completed within 180 days after loss, we

pay no more than the actual cash value of the damage.”

{¶3} On December 13, 2017, Baber received a letter from OMIC’s claims

adjuster, Leann Wente. Wente explained that OMIC had determined the actual cash

-2- Case No. 17-20-10

value of the damage caused by the fire to be $201,506.05 and that Baber would be

issued a check in that amount. In addition, the letter restated the full text of the 180-

day provision. Wente instructed Baber that if Baber did not repair or rebuild the

farmhouse within 180 days from the date of the fire as required by the 180-day

provision, OMIC would pay no more than the actual cash value. Wente indicated

Baber thus had until April 10, 2018, to repair or rebuild the farmhouse. Enclosed

with Wente’s letter was an estimate of the costs to rebuild the farmhouse prepared

by OMIC’s chosen construction contractor.

{¶4} Shortly after receiving Wente’s letter, Baber contacted Greg Woolley,

AIA’s co-owner/insurance agent, to talk about the 180-day provision and to express

her concerns about rebuilding the farmhouse by the April 10, 2018 deadline.

Although Baber was inclined to rebuild the farmhouse, she was worried the work

would not be completed by the deadline, in part because she did not receive OMIC’s

estimate until two months after the fire. Baber was also concerned inclement winter

weather could delay completion of the rebuild. According to Baber, she

communicated these concerns to Woolley, and Woolley responded by telling her

OMIC would be “fair” with respect to the 180-day provision and the April 10, 2018

deadline. Baber said she understood Woolley’s statement as an assurance that

OMIC would be flexible with the 180-day provision and that she could still recover

the full policy limit of $284,000 even if the farmhouse was not rebuilt by the

-3- Case No. 17-20-10

deadline. However, Woolley denied making any promises to Baber about the 180-

day provision or the deadline. Regardless, after Baber and Woolley’s December

2017 conversation, Baber decided to rebuild the farmhouse.

{¶5} In the months following Baber and Woolley’s December 2017

conversation, Baber arranged to have the farmhouse rebuilt. Baber hired her own

contractor, Nathan Persinger, to prepare an estimate for the construction work

required to rebuild the farmhouse. Baber had used Persinger for other projects, and

he was at the farmhouse a few days after the fire as he had previously been hired to

do repairs to the barn. The record does not indicate when Baber requested Persinger

to prepare the estimate, but it was not until March 7, 2018, that Baber received

Persinger’s estimate. Persinger proposed to rebuild the farmhouse for $331,620.

On March 9, 2018, Baber accepted Persinger’s proposal. Construction on the

farmhouse commenced shortly thereafter.

{¶6} On or about March 13, 2018, Wente sent a second letter to Baber. In

this letter, Wente indicated that the April 10, 2018 deadline had been extended and

that “the 180 day replacement cost clause [would] expire May 26, 2018.” While

Baber acknowledged the topic of extending the April 10, 2018 deadline had been

raised during previous conversations with Wente, Baber insisted she did not

specifically request an extension. Once she received Wente’s second letter, Baber

talked to Persinger and asked him whether the work on the farmhouse could be

-4- Case No. 17-20-10

completed by the new May 26, 2018 deadline. Persinger told Baber it would be

impossible to finish rebuilding the farmhouse by May 26, 2018. Although Persinger

continued working on the farmhouse after Baber informed him of the new deadline,

construction was not completed by May 26, 2018.

{¶7} On or about May 31, 2018, Wente sent a third and final letter to Baber.

In this letter, Wente confirmed that “because the repairs were not completed by May

26, 2018, [OMIC would] be unable to pay the replacement cost difference and

therefore there [would] be no further payments for the dwelling.” Thus, Baber

received only the $201,506.05 check for the actual cash value of the damage caused

by the fire. Baber has used most of the money she received from OMIC to pay

Persinger for his work on the farmhouse, which remains unfinished.

{¶8} On October 11, 2019, Baber filed a complaint against OMIC and AIA.

Baber’s complaint stated a cause of action for breach of contract against OMIC and

a cause of action for promissory estoppel against both OMIC and AIA.1 In her

complaint, Baber alleged Woolley had represented that she was not required to

completely rebuild the farmhouse on or before April 10, 2018, in order to receive

the full policy limit of $284,000. Baber further alleged she relied to her detriment

on Woolley’s representations because she failed to negotiate a contract with

1 On March 18, 2020, all “existing and potential claims” against OMIC were dismissed with prejudice by agreement of the parties.

-5- Case No. 17-20-10

Persinger requiring Persinger to rebuild the farmhouse on or before April 10, 2018.

On November 14, 2019, AIA filed its answer to Baber’s complaint.

{¶9} On March 13, 2020, AIA filed a motion for summary judgment on

Baber’s claim of promissory estoppel. Thereafter, Baber filed her memorandum in

opposition to AIA’s motion for summary judgment, and AIA filed a reply brief in

support of its motion for summary judgment.

{¶10} On May 21, 2020, the trial court granted AIA’s motion for summary

judgment. The trial court concluded that even if Woolley did promise Baber that

OMIC would be “fair” concerning the 180-day provision and the April 10, 2018

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Bluebook (online)
2021 Ohio 1625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baber-v-ohio-mut-ins-co-ohioctapp-2021.