Beynon v. K-Mart Corp.

642 F. Supp. 878, 1986 U.S. Dist. LEXIS 21316
CourtDistrict Court, S.D. Ohio
DecidedAugust 21, 1986
DocketNo. C-2-83-1175
StatusPublished
Cited by1 cases

This text of 642 F. Supp. 878 (Beynon v. K-Mart Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beynon v. K-Mart Corp., 642 F. Supp. 878, 1986 U.S. Dist. LEXIS 21316 (S.D. Ohio 1986).

Opinion

OPINION AND ORDER

KINNEARY, Judge.

This matter comes before the Court to consider the plaintiffs’ motion for prejudgment interest.

This is a negligence action wherein the plaintiffs, Carl and Shirley Beynon, alleged that defendant K-Mart negligently maintained its loading dock steps and that said negligence proximately caused Carl Bey-non to slip and fall and sustain permanent bodily injuries during the course of his delivery of goods to K-Mart on the morning of January 21, 1982. After a trial on the merits on March 10, 1986, a jury returned a verdict in favor of the plaintiffs and found that the plaintiffs had sustained damages of $232,000 as a result of the fall. However, because the jury found that Carl Beynon was contributorily negligent for fifty percent of his injuries, the jury’s award was decreased by half. The Clerk of Court entered judgment in favor of the plaintiffs for $126,000 on March 11, 1986. Thereafter, on March 19, 1986, the plaintiffs’ moved for an award of prejudgment interest pursuant to O.R.C. § 1343.03(C).

Ohio Revised Code section 1343.03(C) states:

Interest on a judgment, decrees, or order of 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 paid did not fail to make a good faith effort to settle the case.

The parties have agreed to rely upon the pleadings and supporting documents submitted with respect to the issue of prejudgment interest in lieu of the hearing contemplated by the above section.

The defendant first argues that plaintiffs’ motion for prejudgment interest was not timely filed and, therefore, must be denied. It refers the Court to Mills v. City of Dayton, 21 Ohio App.3d 208, 210, 486 N.E.2d 1209 (CtiApp.Montgomery Cty.1985) wherein the Court of Appeals held that a motion for prejudgment interest “must be made and determined prior to the [880]*880court’s entering of the final judgment.” Although the statute does not state when the plaintiff must request prejudgment interest, the Court of Appeals reasoned that requiring tbe plaintiff to raise the issue prior to judgment was consistent with the Ohio Rules of Civil Procedure.

Without addressing whether the Court of Appeals’ construction of section 1343.03(C) is correct, the Court notes that the rule spelled out in Mills is procedural in nature and, therefore, is not binding upon this Court. Hanna v. Plumer, 380 U.S. 460, 85 S.Ct. 1136, 14 L.Ed.2d 8 (1965); Byrd v. Blue Ridge Rural Electric Co-operative, 365 U.S. 525, 81 S.Ct. 723, 5 L.Ed.2d 754 (1958). Thus, although the Court must recognize the substantive right to prejudgment interest created by section 1343.03(C), the time at which the plaintiff asserts his right to such interest is governed by the appropriate Federal Rules of Civil Procedure.

The plaintiffs argue that Rule 59(e) provides them with an opportunity to amend or modify a final judgment to include prejudgment interest. Plaintiffs’ argument is well taken. In Lee v. Joseph E. Seagram & Sons, Inc., 592 F.2d 39, 42 (2d Cir.1979), the Second Circuit indicated that a plaintiff may move for statutorily entitled prejudgment interest under Rule 59(e) notwithstanding the fact that the plaintiff did not request prejudgment interest in the complaint or during the course of trial. See also Earnhardt v. Commonwealth of Puerto Rico, 744 F.2d 1, 3 (1st Cir.1984). Other courts have held that where the plaintiff has a statutory right to prejudgment interest, a motion to amend the judgment to include said interest may be made more than ten days after the entry of judgment under Rule 60(a). See Glick v. White Motor Co., 317 F.Supp. 42 (E.D.Pa.1970), aff'd 458 F.2d 1287 (3rd Cir.1972) and McGee v. United States, 62 F.R.D. 205, 209-210 (E.D.Pa.1973). Given the above authority and the fact that the plaintiffs moved for prejudgment interest within the ten-day period provided for the amendment of judgments by Rule 59(e), the Court finds that the plaintiffs’ motion for pre-judgment interest was timely filed.

The defendant next argues that the above section may be unconstitutional on the grounds that it violates the equal protection provisions of the Ohio Constitution, Article I, Section 2. The defendant refers the Court to an unreported opinion of a state trial court which held that the statute violates the equal protection clause of the Ohio Constitution. Tate v. Patterson, Case No. 88202-81, slip op. at 3 (Lorain Cty Ct. Common Pleas, Dec. 16, 1985). The Court notes, however, that the Cuyahoga County Court of Appeals held in an earlier opinion that section 1343.03(C) does not violate the equal protection provisions of the Ohio Constitution. Edgerson v. Cleveland Electric Illuminating Co., Case Nos. 48389 and 48395, slip op. at 10-11 (Ct.App.Cuyahoga Cty, July 25, 1985). Whereas the Court is bound to accept a state appellate court’s interpretation of Ohio’s constitution, the Court finds no merit to the defendant’s argument.

Turning to the merits of the motion, under Ohio law the Court must determine whether the parties made a “good faith effort to settle the case.” O.R.C. § 1343.-03(C). Under section 1343.03(C), the party seeking prejudgment interest must:

... demonstrate its aggressive prejudgment settlement efforts and its adversary’s lack of aggressive settlement efforts. The failure to make a good faith effort is not equivalent to bad faith conduct. A party’s inactivity can constitute a failure to make good faith efforts without demonstrating bad faith.
For settlement purposes, good faith efforts include the following: (a) an affirmative effort to gather relevant data, (b) an affirmative effort to disclose relevant data, (c) an affirmative duty to evaluate that party’s litigation risks and prospects reasonably, and (d) an affirmative effort to propose settlement consistent with that reasonable evaluation.

Black v. Bell, 20 Ohio App.3d 84, 88, 484 N.E.2d 739 (Ct.App.Cuyahoga Cty 1984). [881]*881The Court further notes that mere refusal to settle a case is not evidence of bad faith.

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Related

Carl and Shirley Beynon v. K-Mart Corporation
839 F.2d 283 (Sixth Circuit, 1988)

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Bluebook (online)
642 F. Supp. 878, 1986 U.S. Dist. LEXIS 21316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beynon-v-k-mart-corp-ohsd-1986.