Everhardt v. Everhardt

602 N.E.2d 701, 77 Ohio App. 3d 396, 1991 Ohio App. LEXIS 4590
CourtOhio Court of Appeals
DecidedSeptember 30, 1991
DocketNo. L-90-177.
StatusPublished
Cited by8 cases

This text of 602 N.E.2d 701 (Everhardt v. Everhardt) 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
Everhardt v. Everhardt, 602 N.E.2d 701, 77 Ohio App. 3d 396, 1991 Ohio App. LEXIS 4590 (Ohio Ct. App. 1991).

Opinion

Abood, Judge.

This is an appeal from a judgment of the Lucas County Court of Common Pleas, Domestic Relations Division, which awarded appellant $3,300.70 as her share of the proceeds of a personal injury settlement which had been received by appellee while the parties were still married. Appellant sets forth three assignments of error:

“1. The court erred in its order in allocating (between appellant and appellee) the amount of appellant’s personal injury award (as directed by this court on remand) by allocating to appellant only the amount of $3,300.70 (as her part of the overall personal injury award)[.]
“2. The court erred in ruling that of the personal injury award (valued at approximately $600,000.00) only the amount of $6,601.49 comprised martial [sic] assets to be divided in the divorce between plaintiff and defendant herein, and that ruling only unreimbursed medical bills and wages as marital property is error and not consistent with the mandate of this court[.]
*398 “3. The court erred in rejecting the expert witness testimony of appellant’s expert on valuation of aspects of the personal injury paid of appellant[.]”

The undisputed facts that are relevant to the issues raised on appeal are as follows. The parties were married in July 1966, divorced in January 1973, and remarried in July 1973. Appellee was employed by Conrail and in 1978 and again in 1982 he was injured while on the job. In 1984, appellant again filed for divorce. Appellee’s injuries ultimately led to litigation with his employer and on March 19, 1985, appellee and Conrail entered into a settlement agreement which provided appellee with a $68,000 lump sum payment and monthly payments of $1,200 for thirty years. (The total payout was to be $605,000.) On January 30, 1986, the trial court entered its judgment which granted appellant a divorce, ordered a division of marital assets and debts and awarded appellant sustenance alimony of $125 a week for three years and $75 a week for two additional years. In its consideration, the trial court did not find appellee’s settlement award to be marital property. Appellant appealed that judgment of the trial court, asserting the following assignments of error:

“ ‘[1.] The Court Erred in the Order Dividing the Marital Property of Plaintiff and Defendant, in that Plaintiff was Granted a Disproportionately Small Percentage of the Marital Property in View of the Evidence, and Such Constituted an Abuse of Discretion.’
“ ‘[2.] The Court Erred in Awarding Plaintiff (Appellant) Only the Amount of $125.00 Per Week As Alimony for a Period of Three Years and $75.00 Per Week for an Additional Two Years.’
“ ‘[3.] The Court Erred in Not Permitting Appellant to Change Counsel Prior to the Final Hearing.’ ”

In that appeal, this court found appellant’s third assignment of error not well taken and, after an analysis of the first two assignments of error, on its own initiative raised the issue of whether appellee’s settlement award should have been considered as marital property. This court stated in its opinion:

“The classification of the settlement award, as either marital or non-marital property, clearly affects the division of property and defendant’s ability to make payments of alimony.” Everhardt v. Everhardt (Feb. 6, 1987), Lucas App. No. L-86-060, unreported, 1987 WL 6197.

Because Ohio courts had not previously discussed this issue in detail, this court looked to other jurisdictions to see how they had analyzed this question and found that they had formulated three different methods of handling personal injury settlement awards. The first method recognizes a personal injury settlement as marital property in its entirety. Heilman v. Heilman (1982), 95 Mich.App. 728, 291 N.W.2d 183; Trapani v. Trapani (Mo.App.1984), *399 684 S.W.2d 500; Landwehr v. Landwehr (1985), 200 N.J.Super. 56, 490 A.2d 342. The second method recognizes such a settlement award as non-marital property not subject to division. Unkle v. Unkle (1986), 305 Md. 587, 505 A.2d 849. The third approach recognizes a personal injury settlement as marital property only to the extent that it compensates the injured party for lost wages and medical expenses which have diminished the marital estate. This approach classifies any settlement money which compensates for pain and suffering and future medical expenses or future lost wages as personal to the injured party and therefore non-marital property. Amato v. Amato (1981), 180 N.J.Super. 210, 434 A.2d 639, and Liles v. Liles (1986), 289 Ark. 159, 711 S.W.2d 447. This court adopted the third approach as being the most fair, stating:

“ * * * a personal injury settlement is marital property only to the extent lost earnings and medical expenses have adversely impacted upon the marital estate.” Everhardt, supra, at 8.

This court further explained:

“The figure * * * is ascertainable and permits the trial court, vested with broad discretion, to value the settlement, determine what figure should be considered marital property, and then make a final and equitable distribution of the marital property.” Everhardt, supra, at 11.

This court reversed the trial court’s judgment and remanded the case to the trial court, instructing it to “take evidence concerning the personal injury settlement, so that an appropriate division as marital and non-marital property may be made.”

On remand, the trial court heard evidence on the question of the division of the personal injury settlement award. The parties stipulated to the admission of a letter received by appellee’s counsel from an attorney for Conrail which summarized the details of the settlement agreement. The letter provided information on appellee’s lost wages for both injuries and stated that all of appellee’s medical bills were paid by either Conrail or its insurance company. Appellant testified that she and appellee were married during the two time periods that appellee was unable to work due to his injuries (May 4, 1981-September 21, 1982 and July 21, 1983-January 9, 1984) and stated that appellee’s medical expenses had been covered by insurance. The court also heard the testimony of attorney Michael Jilek, who testified for appellant as an expert in personal injury litigation. Jilek stated that it was his opinion that the portion of the settlement money that appellee received for medical expenses and lost wages should be considered a marital asset because the settlement had occurred prior to the time of the parties’ divorce.

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602 N.E.2d 701, 77 Ohio App. 3d 396, 1991 Ohio App. LEXIS 4590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/everhardt-v-everhardt-ohioctapp-1991.