Fireman's Fund Ins. Co. v. Hyster-Yale Group, Inc.

2019 Ohio 1522
CourtOhio Court of Appeals
DecidedApril 25, 2019
Docket106937
StatusPublished
Cited by2 cases

This text of 2019 Ohio 1522 (Fireman's Fund Ins. Co. v. Hyster-Yale Group, Inc.) 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
Fireman's Fund Ins. Co. v. Hyster-Yale Group, Inc., 2019 Ohio 1522 (Ohio Ct. App. 2019).

Opinion

[Cite as Fireman's Fund Ins. Co. v. Hyster-Yale Group, Inc., 2019-Ohio-1522.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 106937

FIREMAN’S FUND INSURANCE CO.

PLAINTIFF-APPELLEE

vs.

HYSTER-YALE GROUP, INC. ET AL.

DEFENDANTS-APPELLANTS

JUDGMENT: AFFIRMED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-17-875690

BEFORE: Blackmon, P.J., Sheehan, J.,* and Headen, J.*

RELEASED AND JOURNALIZED: April 25, 2019 * Editor’s Note: Judge Raymond C. Headen succeeded Judge Melody J. Stewart upon her resignation from the court, and Judge Michelle J. Sheehan succeeded Judge Tim McCormack upon his retirement from the court. -i-

ATTORNEYS FOR APPELLANTS

For Hyster-Yale Group, Inc., Yale Materials Handling Group, Hyster Corporation

Amanda M. Leffler Brouse McDowell, L.P.A. 388 South Main Street, Suite 500 Akron Ohio 44311

Alexandra V. Dattilo Brouse McDowell, L.P.A 600 Superior Avenue, East, Suite 1600 Cleveland, Ohio 44114

Gabrielle Le Chavallier Michael E. Farnell Parsons, Farnell & Grein, L.L.P 1030 Southwest Morrison Street Portland, Oregon 97205

ATTORNEYS FOR APPELLEES

For Fireman’s Fund Insurance Company

Laura M. Faust Moira H. Pietrowski Roetzel & Andress Co., L.P.A. 222 South Main Street, Suite 400 Akron, Ohio 44308

Richard M. Garner Collins, Roche, Utley and Garner, L.L.C. 655 Metro Place South, Suite 200 Dublin, Ohio 43017 -ii-

For Great American Insurance Company

Michael C. Brink Kevin M. Young Tucker Ellis, L.L.P 950 Main Avenue, Suite 1100 Cleveland, Ohio 44113

Katherine Hance Edward B. Parks, II Shipman & Goodwin L.L.P. 1875 K Street, Suite 600 Washington, DC 20006

For Travelers Indemnity Company

Michael E. Smith Franz Ward, L.L.P. 200 Public Square, Suite 3000 Cleveland, Ohio 44114 ON RECONSIDERATION1

PATRICIA ANN BLACKMON, P.J.:

{¶1} In this interlocutory appeal, defendants-appellants, Hyster-Yale Group, Inc., and

its parent company, Hyster-Yale Materials Handling Corporation, (collectively referred to as

“Hyster-Yale”), appeal from the order of the trial court determining that extrinsic evidence may

be considered to determine whether plaintiff-appellee, Fireman’s Fund Ins. Co. (“Fireman’s

Fund”), may withdraw its defense of Hyster-Yale in asbestos lawsuits where there is

indisputable, reliable evidence that the date of injury clearly occurred outside of the policy term

(i.e., 1957 to 1969). Hyster-Yale assigns the following three errors for our review:

I. The trial court erred in holding that Ohio law permits [Fireman’s Fund] to terminate its duty to defend based on information extrinsic to the operative complaints developed during the course of the underlying asbestos lawsuits.

II. The trial court erred in holding that Oregon law permits [Fireman’s Fund] to terminate its duty to defend based on information extrinsic to the operative complaints developed during the course of the underlying asbestos lawsuits.

1 The original announcement of decision, Fireman’s Fund Ins. Co. v. Hyster-Yale Group., Inc., 8th Dist. Cuyahoga No. 106937, 2018-Ohio-5236, released December 20, 2018, is hereby vacated. This opinion, issued upon reconsideration, is the court’s journalized decision in this appeal. See App.R. 22(C); see also S.Ct.Prac.R. 7.01. III. To the extent Oregon and Ohio law conflict with respect to the standard

governing an insurer’s duty to defend, Oregon law has the most significant

relationship to the policies and its law must therefore apply.

{¶2} Having reviewed the record and pertinent law, we affirm the judgment of the trial

court granting partial summary judgment to Fireman’s Fund and denying Hyster-Yale’s motion

for summary judgment. The apposite facts follow.

{¶3} Hyster-Yale Group is a national subsidiary of Hyster-Yale Materials Handling, a

Delaware company. At all relevant times, Hyster-Yale manufactured “powered industrial trucks,”

or forklifts. Fireman’s Fund is one of Hyster-Yale’s insurers, and it issued various general

liability policies with policy periods from February 1, 1957 through February 1, 1969. During

this time period, Hyster-Yale was headquartered in Oregon, and the policies were negotiated with

an Oregon broker.

{¶4} In relevant part, the Fireman’s Fund policies state:

I. Coverage Bodily Injury Liability Automobile:

***

Coverage Bodily Injury Liability Except Automobiles: to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury, sickness, or disease, including death at any time resulting therefrom, sustained by any person and caused by accident;[2]

2 Fireman’s Fund subsequently issued endorsements substituting the term “occurrence” for “accident,” but the parties agree that this change is not material to the instant dispute. II. Defense Settlement Supplementary Payments: with respect to such insurance as is afforded by this policy, the company shall:

a) Defend any suit against the insured alleging such injury, sickness, disease or destruction in seeking damages on account thereof, even if such suit is groundless, false or fraudulent; but the company may make such investigation, negotiation and settlement of any claim or suit as it deems expedient;

IV. Policy Period, Territory, Purposes of Use: this policy applies only to accidents which occurred during the policy period within the United States of America, its territories or possessions[.] (Emphasis added.)

{¶5} The policies were not limited to the Oregon area, and by 1990, Hyster-Yale moved

its headquarters to Ohio.

{¶6} Some of the component parts of Hyster-Yale’s products are alleged to contain

asbestos, and it is a defendant in various asbestos-injury actions. Hyster-Yale sought defense

and indemnity from Fireman’s Fund in connection with the policies in effect during the relevant

time periods. In 2005, Hyster-Yale and Fireman’s Fund subsequently entered into a “Claims

Handling Agreement” to pay a portion of the cost to defend against each Hyster-related asbestos

claim so long as the complaint potentially alleged exposure to asbestos before or during

Fireman’s Fund’s policy periods.

{¶7} After entering into the 2005 agreement, Fireman’s Fund gave notice that it was

withdrawing from the defense of certain claims, maintaining that it had learned through discovery that these claimants’ asbestos exposure with regard to Hyster products occurred after

the expiration of the last Fireman’s Fund policy.3

{¶8} Fireman’s Fund subsequently filed this declaratory judgment action against

Hyster-Yale and its other insurers, Great American Insurance Company, and Travelers Indemnity

Company. Fireman’s Fund sought declarations: (1) that it has no duty to defend Hyster-Yale in

asbestos lawsuits when there is “compelling evidence” that the plaintiff was not exposed to

Hyster-Yale’s products during the time periods of the Fireman’s Fund insurance policies; (2)

allocating defense costs in those asbestos lawsuits where the plaintiff’s asbestos exposure

occurred only during a portion of the duration of the Fireman’s Fund insurance policies; and (3)

allocating equitable contribution from other insurers. In its answer and counterclaim,

Hyster-Yale maintained that the defense obligation applies even if the allegations of the

plaintiff’s complaint are “groundless, false, or fraudulent.” Hyster-Yale sought a declaration

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
2019 Ohio 1522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/firemans-fund-ins-co-v-hyster-yale-group-inc-ohioctapp-2019.