Gundel v. Whalen Lawn & Landscaping, L.L.C.

2022 Ohio 1908
Procedural entryThis page is a short order in Gundel v. Whalen Lawn & Landscaping, L.L.C.. Read the opinion of the Court — 2022 Ohio 2763
Ohio Court of Appeals·Decided June 6, 2022·No. 2021CA00128·Published

Opinion

[Cite as Gundel v. Whalen Lawn & Landscaping, L.L.C., 2022-Ohio-1908.]

COURT OF APPEALS

STARK COUNTY, OHIO

FIFTH APPELLATE DISTRICT

CHRISTOPHER GUNDEL, : JUDGES:

: Hon. John W. Wise, P.J.

Plaintiff - Appellant : Hon. Patricia A. Delaney, J.

: Hon. Craig R. Baldwin, J.

-vs- :

:

WHALEN LAWN & LANDSCAPING, : Case No. 2021CA00128 LLC, et al., :

:

Defendant - Appellees : OPINION

CHARACTER OF PROCEEDING: Appeal from the Stark County Court of Common Pleas, Case No. 2020 CV 00694

JUDGMENT: Affirmed

DATE OF JUDGMENT: June 6, 2022

APPEARANCES: For Plaintiff-Appellant For Defendant-Appellee Pekin Ins.

CHRISTOPHER J. VAN BLARGAN JOHN G. FARNAN Kisling, Nestico & Redick, LLC PATRICK M. CANNELL 3412 Market Street Weston Hurd LL{ Akron, Ohio 43333 The Tower at Erieview 1301 9th Street, Suite 1900 And Cleveland, Ohio 44114-1862

MICHAEL J. MAILLIS For Appellee Nicholas Whalen 22 Eat McKinley Way, Suite A Poland, Ohio 44514 KYLE A. JOHNSON JUSTIN M. LOVEDAHL

EDWARD T. SAADI BRENNAN MANNA DIAMOND Ohio Bureau of Workers Comp. 4518 Fulton Road, Suite 202 970 Windham Ct. Suite 7 Canton, Ohio 44718 Boardman, Ohio 44512

Baldwin, J.

{¶1} Christopher Gundel, appellant, appeals the decision of the Stark County Court of Common Pleas granting summary judgment in favor of appellees Pekin Insurance Company, Nicholas Whalen and Grange Insurance Company.

STATEMENT OF FACTS AND THE CASE

{¶2} Nicholas Whalen (Whalen) created a limited liability company, Whalen Lawn and Landscaping (WLL) and is the sole member of that company. As the name implies, his company offers lawn and landscaping services to the public. The number of people employed by WLL varies according to the demand for services. The employees provide lawn and landscaping services and all administrative and business related duties were completed by Whalen. Whalen mowed lawns when necessary and performed minor maintenance on the company equipment, including the mowers. When Whalen encountered a mechanical problem beyond his ability, he retained outside services to complete the repair.

{¶3} Christopher Gundel was an employee of WLL operating a riding lawnmower on May 11, 2019 at an assigned job site. The mower became stuck in mud and Gundel dismounted to free the mower when his foot slipped and went under the mower. He suffered severe lacerations of his leg and a subsequent below the knee amputation. He applied for benefits through the Bureau of Workers’ Compensation (BWC) and his application was approved. Gundel continues to receive payments from the BWC.

{¶4} Gundel elected to pursue litigation against those people and entities he held responsible for his injury. He filed his first complaint on April 16, 2020 and amended his

complaint several times, concluding with the Fifth Amended Complaint filed March 2, 2021. Subsequently, Gundel dismissed all defendants except for Whalen, John Doe and the BWC.

{¶5} Within his complaint, Gundel alleged that “Whalen was not an employee of WLL, and could not legally qualify as an employee as the sole member of a limited liability company.” (Fifth Amended Complaint, ¶ 3). He claimed that the safety switch that was designed to cut power to the lawnmower blade if the operator left the seat was not working and that this “non-operation was a direct and proximate cause of this injury.” (Fifth Amended Complaint, ¶ 16). He concluded that “[t]he kill switch was not operational because it was either defective and/or or intentionally disabled, thereby establishing the intentional removal of a safety guard and thus, the causes of action asserted in this Complaint are plead in the alternative.” (Fifth Amended Complaint, ¶ 17). Gundel alleged that Whalen either negligently failed to properly maintain the kill switch or intentionally disabled the kill switch.

{¶6} While the Gundel Complaint was pending, Pekin Insurance and Grange Insurance filed separate declaratory judgment actions asserting that they did not owe Whalen or WLL a defense or indemnification. Pekin provided coverage for WLL and Grange provided coverage to Whalen individually. The trial court consolidated the declaratory judgment actions with the underlying tort action.

{¶7} Pekin moved for summary judgment on its declaratory judgment action contending that it had no obligation to defend or indemnify Whalen. Pekin presented several arguments in support of its position, the most relevant of which in the context of this appeal is the claim that Whalen is immune from liability for this injury pursuant to R.C.

1705.48(B) as a member of the LLC. In the alternative, Pekin argued that Whalen is immune because he was either the employer or a co-employee. (R.C. 4123.74 and 4123.741).

{¶8} Gundel responded by arguing that WLL was the employer and though Whalen was its sole member, he did not qualify as employer on the facts of this case. He further argued that Whalen was not an employee because he did not provide services under a contract of hire or was not bound by any contract of hire. Whalen did not work for wages, Gundel further asserted, but instead Whalen “voluntarily contributed sweat equity to the company to reduce expenditures and increase earnings available for distribution rather than working for direct compensation in the form of wages or salary.” (Gundel Memorandum, Aug. 19, 2021 p. 13). He concluded by pointing out that Whalen stated that he did not consider himself an employee, did not believe he would be an employee and did not “take Workers’ Comp and stuff like that out of my pay.” Id. at p. 14.

{¶9} The trial court granted Pekin’s motion for summary judgment, holding that Pekin was not required to defend or indemnify Whalen and finding that Gundel’s argument was an attempt to persuade the trial court to ignore the statutory immunities provided to employers in the context of this case and create insurance coverage where none exists. The trial court rejected Gundel’s arguments and concluded that Gundel ignored “the critical fact that Whalen was Gundel's employer at the time of the accident” and that “Whalen's conduct on behalf of Whalen Lawn, which allegedly caused Gundel's injuries, cannot expose Whalen to personal liability under R.C. 1705.48(B).” (Judgment Entry, Sept. 17, 2021, p.5). The trial court also found no duty to defend Whalen or indemnify

him for the intentional tort claim as the Pekin policy did not provide coverage for intentional acts.

{¶10} Whalen moved for summary judgment on October 7, 2021 alleging that the trial court’s finding that Whalen was Gundel’s employer served as a bar to any recovery from Whalen and limited Gundel to recovering the workers’ compensation benefits that he had been receiving. Whalen further contended that, because the trial court found that he was Gundel’s employer and because the record contained no evidence of an intention to cause an injury or that Whalen knew that an injury was substantially certain, Whalen could not be held liable.

{¶11} Gundel reaffirmed his position regarding the liability of Whalen, but filed a stipulation in which all parties agreed that the trial court’s rational underlying its decision to grant Pekin’s motion, if applied without amendment to the Whalen motion, would warrant a decision in favor of Whalen and Grange and thus terminate the case. The trial court confirmed that it would not alter its decision and that “[t]he Court notes Gundel's reassertion of his arguments against immunity and exception to the Court's September 17, 2021 ruling, but adopts its prior ruling and finds Whalen is entitled to immunity under these statutory provisions. Thus, Whalen and Grange are entitled to summary judgment on Gundel's personal injury claims and the Bureau of Workers' Compensation's claim for subrogation, and Grange is entitled to summary judgment on coverage claims that are mooted by the Court's ruling on Gundel's claims.” (Judgment Entry, Oct. 22, 2021, p. 2). The trial court dismissed the matter in its entirety and Gundel filed a notice of appeal with three assignments of error:

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