Daimlerchrysler Corp. v. Self-Insuring, Unpublished Decision (2-2-2006)

2006 Ohio 425
CourtOhio Court of Appeals
DecidedFebruary 2, 2006
DocketNo. 04AP-1222.
StatusUnpublished
Cited by2 cases

This text of 2006 Ohio 425 (Daimlerchrysler Corp. v. Self-Insuring, Unpublished Decision (2-2-2006)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Daimlerchrysler Corp. v. Self-Insuring, Unpublished Decision (2-2-2006), 2006 Ohio 425 (Ohio Ct. App. 2006).

Opinion

DECISION
{¶ 1} Relator, DaimlerChrysler Corporation, commenced this original action requesting that this court issue a writ of mandamus ordering respondent Self-Insuring Employers Evaluation Board ("SIEEB") to vacate its order which found that the self-insured complaint filed against relator by respondent Cynthia A. Miners ("claimant") was valid and ordering SIEEB to find that relator properly attempted to recoup the overpayment made to claimant.

{¶ 2} This court referred the matter to a magistrate of this court, pursuant to Civ.R. 53(C) and Loc.R. 12(M) of the Tenth District Court of Appeals, who issued a decision, including findings of fact and conclusions of law. (Attached as Appendix A.) The magistrate concluded that relator has not demonstrated that SIEEB abused its discretion in finding that the self-insured complaint filed by the claimant was valid, and that relator has an adequate remedy in the ordinary course of law pursuant to the declaratory judgment provisions of the Ohio Revised Code. The magistrate accordingly recommended that this court deny the requested writ. Relator has filed objections to the magistrate's decision, and the matter is now before this court for a full, independent review.

{¶ 3} Relator's two objections to the magistrate's decision are as follows:

1. The Magistrate erred by finding that respondent Self-Insuring Employers Evaluation Board did not abuse its discretion in upholding the validity of the self-insured complaint filed against relator DaimlerChrysler Corporation.

2. The Magistrate erred by finding that relator DaimlerChrysler Corporation has an adequate remedy at law by means of a declaratory judgment action pursuant to the provisions of R.C. Chapter 2721.

{¶ 4} In this mandamus action, relator must establish that: (1) it has a clear legal right to the relief requested; (2) respondent SIEEB is under a clear legal duty to perform the act requested; and (3) relator has no plain and adequate remedy in the ordinary course of the law. State ex rel. Berger v.McMonagle (1983), 6 Ohio St.3d 28.

{¶ 5} By its first objection, relator argues that the magistrate erred in finding that SIEEB did not abuse its discretion in upholding the validity of the self-insured complaint filed against relator. Relator contends that SIEEB erroneously concluded that it had acted unlawfully in its attempt to directly recoup an overpayment, which was caused by a clerical error, from the claimant. Regarding the issue of whether relator improperly sought to recoup an overpayment directly from the claimant, SIEEB determined that "[n]o right exists under Ohio law for a self-insuring employer to unilaterally recoup overpayments of workers' compensation benefits directly from their employees, via payroll deduction, personal check, or otherwise. In the absence of such a right, the employer acted unlawfully in this case by demanding such payment from the injured worker." (Oct. 14, 2004 SIEEB Order, at 2.)

{¶ 6} In this mandamus action, relator seems to argue that its actions relating to its attempt to recover the overpayment were not precluded by any Ohio law and, therefore, because they were not contrary to law, they were not unlawful. Relator asserts that in order for an action to be "unlawful," it must have "broken some law." (Relator's Memorandum in Support of Objections to Magistrate's Decision, at 3.) It then follows, according to the reasoning of relator, that SIEEB's order was erroneous. We find that relator's definition of "unlawful" is not entirely accurate. As applicable in this case, Black's Law Dictionary defines "unlawful," as "[n]ot authorized by law; illegal." Black's Law Dictionary (7th Ed. 1999) 1536.

{¶ 7} In assessing whether SIEEB abused its discretion, the magistrate analyzed R.C. 4123.511(J), which mandates that, in specified circumstances, reimbursement must occur via an offset from any future claims made by a claimant. The magistrate determined that R.C. 4123.511(J) does not expressly address the situation presented in this case. However, the magistrate observed that R.C. 4123.511(J) does not expressly authorize the method of recoupment attempted by relator in this case. The magistrate reasoned that "[b]ecause R.C. 4123.511(J) does not expressly support relator's assertions, this magistrate cannot say that relator has a clear legal right for the request relator seeks in this mandamus action." (Infra, at ¶ 35.) The magistrate resolved that SIEEB did not abuse its discretion by finding that relator's actions were improper and unlawful.

{¶ 8} Subsequent to the magistrate's decision in this case, this court, in State ex rel. DaimlerChrysler v. Lopez, Franklin App. No. 04AP-882, 2005-Ohio-4640, at ¶ 4, determined that R.C.4123.511(J) is only applicable when an overpayment is created by the administrative or judicial reversal of a previous order to pay compensation, and is therefore not applicable when overpayments are made as a result of ministerial error. InLopez, this court did not resolve the issue of how the self-insured employer, DaimlerChrysler, could legally recover an overpayment resulting from an employer clerical error. See id. at ¶ 6 ("because relator has not yet sought any other specific remedy for recovering the overpayment, we decline to address what recovery remedies may be available to relator under these circumstances.")

{¶ 9} Therefore, in this case, relator was not "limited" to recovering an overpayment under R.C. 4123.511(J), as that section is inapplicable. The issue becomes what remedy did relator have under Ohio law to recover the overpayment, or, more appropriately, what were relator's rights to recoupment under Ohio law. Even assuming relator had the legal authority to recoup the overpayment via a reimbursement from the state surplus fund1 and/or by deducting the overpayment from any future compensation (as occurred in this case), we find no law authorizing a self-insured employer to unilaterally recoup an overpayment, which resulted from a clerical error, directly from a claimant via a personal check, money order, or payroll deduction. Furthermore, relator has cited no law providing it with the legal authority to recoup an overpayment in the manner in which it attempted. In the absence of that authority, we find that it was not an abuse of discretion for SIEEB to determine that relator acted unlawfully and improperly. Therefore, relator has failed to demonstrate that it is entitled to a writ of mandamus ordering the board to vacate its order finding the complaint valid.

{¶ 10} Accordingly, we overrule relator's first objection to the magistrate's decision.

{¶ 11} Under its second objection, relator argues that the magistrate erred in finding that relator has an adequate remedy at law pursuant to the declaratory judgment provisions of R.C. Chapter 2721. Considering relator has failed to demonstrate a clear legal right to the relief requested, we need not address whether there exists an adequate remedy at law. Therefore, relator's objection as to that issue is moot.

{¶ 12}

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2006 Ohio 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daimlerchrysler-corp-v-self-insuring-unpublished-decision-2-2-2006-ohioctapp-2006.