Fidelholtz v. Peller

1998 Ohio 462, 81 Ohio St. 3d 197
CourtOhio Supreme Court
DecidedMarch 10, 1998
Docket1996-1777
StatusPublished
Cited by3 cases

This text of 1998 Ohio 462 (Fidelholtz v. Peller) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelholtz v. Peller, 1998 Ohio 462, 81 Ohio St. 3d 197 (Ohio 1998).

Opinion

[This opinion has been published in Ohio Official Reports at 81 Ohio St.3d 197.]

FIDELHOLTZ ET AL., APPELLANTS, v. PELLER ET AL.; ONG ET AL., APPELLEES. [Cite as Fidelholtz v. Peller, 1998-Ohio-462.] Torts—Person “liable in tort,” when—Joint tortfeasors—Enforcement of right of contribution—Former R.C. 2307.32(F) (now R.C. 2307.33[F]), construed and applied. Former R.C. 2307.32(F) (now R.C. 2307.33[F]) entitles a defendant to set off from a judgment funds received by a plaintiff pursuant to a settlement agreement with a co-defendant where there is a determination that the settling co- defendant is a person “liable in tort.” A person is “liable in tort” when he or she acted tortiously and thereby caused damages. This determination may be a jury finding, a judicial adjudication, stipulations of the parties, or the release language itself. (Ziegler v. Wendel Poultry Serv., Inc. [1993], 67 Ohio St.3d 10, 615 N.E.2d 1022, overruled to the extent inconsistent herewith.) (No. 96-1777—Submitted October 22, 1997 at the Muskingum County Session— Decided March 11, 1998.) APPEAL from the Court of Appeals for Stark County, No. 1995CA00340. __________________ {¶ 1} Plaintiff-appellant, Bernice Fidelholtz, in her mid-sixties, had pain and discomfort in her right leg which prompted her to visit her family doctor in 1991. The family doctor referred her to a surgeon, who conducted a biopsy of a growth on her leg. The surgeon sent the tissue sample to defendant-appellee, Dr. Marino G. Ong, a pathologist, for diagnosis. {¶ 2} The sample was divided into four “blocks.” By cutting tissue from these blocks, twenty slides were generated. Upon examining the slides, Dr. Ong noticed several abnormal features, in particular, an abnormal mitotic figure on slide SUPREME COURT OF OHIO

number four. Dr. Ong was concerned with this finding because the presence of abnormal mitotic figures often indicates that a tumor is malignant. After consulting with his colleagues, and unable to make a definitive diagnosis, Dr. Ong ordered that “recuts” be made from block numbers one, three, and four, generating additional slides. Still uncertain, Dr. Ong decided to consult the Cleveland Clinic (“CC”). He sent three slides to CC. All were recuts, i.e., none were originals, including slide number four. {¶ 3} Dr. Bruce A. Sebek, a pathologist, examined the slides at CC. Based on these slides, Dr. Sebek concluded that the growth in Mrs. Fidelholtz’s leg was benign. At trial, Dr. Sebek testified that had he seen the original slide number four, instead of a recut, he would have diagnosed malignancy. He testified that the recut did not show the abnormal mitotic figure that caused concern to Dr. Ong. {¶ 4} Dr. Sebek forwarded his diagnosis to Dr. Ong. Dr. Ong adopted this diagnosis and notified Mrs. Fidelholtz’s surgeon of the findings, which he passed on to her. {¶ 5} Two years passed. Mrs. Fidelholtz’s pain continued. In March 1993, Mrs. Fidelholtz underwent outpatient surgery at Timken Mercy Medical Center. The growth in her leg was diagnosed as malignant. As a result of the untimely diagnosis, Mrs. Fidelholtz’s leg was amputated below the knee. If the cancer had been diagnosed in 1991, an amputation would have been unnecessary. {¶ 6} Mrs. Fidelholtz and her husband Irving, appellants, filed suit against Dr. Ong; his employer, Aultman Pathology Associates, Inc.; and Dr. Sebek and Cleveland Clinic Foundation (“CCF”),1 alleging negligent misdiagnosis of cancer. Approximately one month prior to trial, Dr. Sebek and CCF settled for $125,000. The case proceeded to trial against Dr. Ong and his employer, appellees.

1. Dr. Charles Peller (the surgeon) and his corporation, Charles H. Peller, M.D., Inc., were also named as defendants. Appellants voluntarily dismissed them from the suit prior to trial.

2 January Term, 1998

{¶ 7} At trial, appellees denied liability on the theory that Dr. Ong’s misdiagnosis did not constitute negligence, since this was an extremely difficult case to diagnose. Dr. Ong and his expert witness testified that neither Dr. Ong nor Dr. Sebek deviated from acceptable standards of care. Although appellants agreed that Dr. Sebek was not negligent, their expert witness (Dr. Sebek) testified that Dr. Ong deviated from the standard of care when he failed to send slide number four to him. {¶ 8} The jury returned a verdict in favor of appellants and awarded damages in the amount of $250,001. (The $1 was for Mr. Fidelholtz’s loss of consortium claim.) {¶ 9} Appellees filed a motion for judgment notwithstanding the verdict, claiming that pursuant to former R.C. 2307.32(F), the award should be offset by $125,000, the amount that appellants received in settlement from Dr. Sebek and CCF. The trial court granted the motion based upon Ziegler v. Wendel Poultry Serv., Inc. (1993), 67 Ohio St.3d 10, 615 N.E.2d 1022. {¶ 10} The court of appeals affirmed. In a separate concurrence, Judge Hoffman urged us to reconsider the Ziegler decision. {¶ 11} The cause is now before this court pursuant to the allowance of a discretionary appeal. __________________ Allen Schulman & Associates Co., L.P.A., and Allen Schulman, Jr., for appellants. Roetzel & Andress, Thomas A. Treadon and Sue Ellen Salsbury, for appellees. __________________ FRANCIS E. SWEENEY, SR., J.

3 SUPREME COURT OF OHIO

{¶ 12} We are asked to decide whether former R.C. 2307.32(F), now 2307.33(F),2 entitled a nonsettling defendant to set off funds received by a plaintiff pursuant to a settlement agreement with a co-defendant who was never determined to be a tortious party. Because we find that former R.C. 2307.32(F) required that the settling defendant must first be found to be “liable in tort” before a setoff is permitted, we reverse the judgment of the court of appeals and reinstate the jury verdict of $250,001 against appellees. {¶ 13} Former R.C. 2307.32(F) provided: “When a release or a covenant not to sue or not to enforce judgment is given in good faith to one of two or more persons liable in tort for the same injury or loss to person * * *, the following apply: “(1) The release or covenant does not discharge any of the other tortfeasors from liability for the injury * * * unless its terms otherwise provide, but it reduces the claim against the other tortfeasors to the extent of any amount stipulated by the release or the covenant, or in the amount of the consideration paid for it, whichever is the greater; “(2) The release or covenant discharges the tortfeasor to whom it is given from all liability for contribution to any other tortfeasor.” (Emphasis added.) 142 Ohio Laws, Part I, 1673. {¶ 14} This court had the opportunity to construe former R.C. 2307.32(F) in Ziegler v. Wendel Poultry Serv., Inc. (1993), 67 Ohio St.3d 10, 615 N.E.2d 1022. Appellees contend that Ziegler is supportive of their position that they are entitled to a setoff. {¶ 15} The facts in Ziegler reveal that on the first day of trial, two of the defendants, Wendel Poultry and its employee, Terry Hummel (collectively, “Wendel”), informed the court that they had entered into a “high-low” settlement

2. The statutes referred to in this opinion are the former versions that existed before the Am.Sub.H.B. No. 350 amendment effective January 27, 1997.

4 January Term, 1998

agreement with the plaintiff, agreeing to pay the plaintiff $325,000 regardless of the jury verdict and up to $425,000 if the jury found it (Wendel) liable. The fact of the settlement was not revealed to the jury, and Wendel remained in the lawsuit. The positions of Wendel and the other defendant were adversarial, and Wendel presented its case with vigor.

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1998 Ohio 462, 81 Ohio St. 3d 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelholtz-v-peller-ohio-1998.