Evans v. Dayton Power Light Co., Unpublished Decision (1-25-2006)

2006 Ohio 319
CourtOhio Court of Appeals
DecidedJanuary 25, 2006
DocketNo. 05CA800.
StatusUnpublished
Cited by5 cases

This text of 2006 Ohio 319 (Evans v. Dayton Power Light Co., Unpublished Decision (1-25-2006)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Evans v. Dayton Power Light Co., Unpublished Decision (1-25-2006), 2006 Ohio 319 (Ohio Ct. App. 2006).

Opinion

DECISION AND JUDGMENT ENTRY
{¶ 1} This case involves a judgment rendered in favor of an injured worker who filed a negligence action against the owner of the construction project. Alan B. Evans appeals the trial court's decision to apply the amended version of R.C. 1343.03, the prejudgment interest statute, rather than the version that was in effect at the time he filed his complaint. The Dayton Power and Light Company ("DPL") cross-appeals the court's award of prejudgment interest, arguing that the court abused its discretion by making the award because Evans did not prove that DPL failed to make a good faith effort to settle the case and that he did not fail to make a good faith effort to settle the case.

{¶ 2} We conclude the court's finding that DPL did not make a good faith effort to settle, on the purported basis that it failed to fully cooperate in discovery proceedings, is unreasonable. The record reveals that Evans filed status reports with the court indicating that DPL was fully complying with discovery. And, Evans failed to demonstrate that two documents that DPL allegedly failed to provide him had any bearing on his ability to settle his claims. The court's determination that DPL failed to rationally evaluate its risks and potential liability is also unreasonable. In reaching its decision that it had no liability, DPL clearly considered: (1) the relevant statutory/case law, and (2) documented facts, which it identified through discovery and its own investigation. Thus, it conducted a rational evaluation of its risk and potential liability. The court failed to consider these factors and instead relied on the fact that DPL's analysis ultimately proved to be incorrect. The proper inquiry was whether DPL had an objectively reasonable basis to believe it had no liability. Because DPL had such a belief, it was not required to respond to Evans' settlement offers.

{¶ 3} Since the award of prejudgment interest was unreasonable, we reverse the judgment. Evans' assignment of error is moot based on our disposition of DPL's cross-assignment of error.

I. CASE HISTORY
{¶ 4} In March 1995, Evans suffered serious injuries when he fell from a catwalk while working at a power plant operated by DPL. Evans, a pipefitter, worked for Enerfab Corporation ("Enerfab"), an independent contractor hired by DPL to perform maintenance work at the plant. In March 1997, Evans filed suit against DPL, alleging its negligence caused his injuries. Evans voluntarily dismissed this action in June 2000 but refiled the suit a year later.

{¶ 5} In June 2002, the case went to a jury trial. The jury returned a verdict in Evans' favor, awarded damages totaling $1,104,215.44, and found that Evans was 27% at fault. Thus, the court entered judgment in the amount of $806,077.27 in Evans' favor. Evans filed a motion for prejudgment interest, which the trial court granted.

{¶ 6} DPL appealed the trial court's denial of various motions that are not relevant here and the court's award of prejudgment interest to Evans. We reversed solely on the award of prejudgment interest after finding that the court applied the wrong legal standard in making the award. We remanded the issue of prejudgment interest to the trial court for reconsideration.Evans v. Dayton Power and Light Co., Adams App. No. 03CA763, 2004-Ohio-2183 ("Evans I").1

{¶ 7} On remand, the court again awarded prejudgment interest to Evans after determining that a revised version of the prejudgment interest statute applied. This significantly reduced the amount of interest Evans can collect. Therefore, both parties appealed the court's judgment.

{¶ 8} Evans assigns the following error:

The Common Pleas Court erred in applying the amended version of Ohio's prejudgment interest statute, R.C. § 1343.03(C) effective June 2, 2004, retrospectively to this case, which was pending on appeal as of the effective date, to limit the period of time and the portion of the underlying judgment for which Plaintiff has a right to recover prejudgment interest.

{¶ 9} DPL assigns this error on cross-appeal:

The trial court erred when it granted Evans' motion for prejudgment interest.

Because we find it to be dispositive, we consider DPL's cross-appeal first.

II. PREJUDGMENT INTEREST
A. Principles And Standards
{¶ 10} R.C. 1343.03(C) controls the award of prejudgment interest in tort cases. The legislature enacted R.C. 1343.03(C) to prevent parties who have engaged in tortious conduct from frivolously delaying the ultimate resolution of cases and to encourage good faith efforts to settle controversies outside a trial setting. Kalain v. Smith (1986), 25 Ohio St.3d 157, 159,495 N.E.2d 572, 574. The statute also serves the additional purpose of compensating a plaintiff for the defendant's use of money that rightfully belonged to the plaintiff. Musisca v.Massillon Community Hosp., 69 Ohio St.3d 673, 676, 1994-Ohio-451, 635 N.E.2d 358, 360.

{¶ 11} A plaintiff is entitled to prejudgment interest under R.C. 1343.03(C) when four conditions exist.2 First, the party seeking interest must petition the court by a motion filed after judgment and no later than fourteen days after entry of judgment. Second, the court must hold a hearing. Third, the court must find that the party required to pay the judgment failed to make a good faith effort to settle. And finally, the court must find that the party to whom the judgment is to be paid did not fail to make a good faith effort to settle the case. Moskovitzv. Mt. Sinai Med. Ctr., 69 Ohio St.3d 638, 658, 1994-Ohio-324,635 N.E.2d 331; R.C. 1343.03(C). If a party meets the four statutory requirements, the decision to allow prejudgment interest is not discretionary. Moskovitz at 658.

{¶ 12} The party seeking prejudgment interest bears the burden of proof. Moskovitz at 658. Although the court must award prejudgment interest if the moving party establishes the four requirements of R.C. 1343.03(C), the decision as to whether a party's settlement efforts indicate good faith is generally within the sound discretion of the trial court. Moskovitz at 658; Kalain at 159, 495 N.E.2d 572. Absent a clear abuse of discretion, we will not reverse the trial court's finding on the issue. Kalain at 159,

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Bluebook (online)
2006 Ohio 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-dayton-power-light-co-unpublished-decision-1-25-2006-ohioctapp-2006.