Hopkins v. Dyer

820 N.E.2d 329, 104 Ohio St. 3d 461
Ohio Supreme Court·Decided December 17, 2004·No. No. 2003-2167·Published·Cited by 130 cases

Opinion

Lundberg Stratton, J.

{¶ 1} The single proposition of law before us states that an “intervening decision” by the Ohio Supreme Court “applies as an exception to the law of the case theory of practice and inferior courts are mandated to follow the Supreme Court’s decision.” This is, however, a longstanding statement of law. We have previously held that “[ajbsent extraordinary circumstances, such as an intervening decision by the Supreme Court, an inferior court has no discretion to disregard the mandate of a superior court in a prior appeal in the same case.” Nolan v. Nolan (1984), 11 Ohio St.3d 1, 11 OBR 1, 462 N.E.2d 410, syllabus.

{¶ 2} The parties do not contest this statement of law. The real dispute between the parties involves whether the decision of this court in Westfield Ins. Co. v. Galatis, 100 Ohio St.3d 216, 2003-Ohio-5849, 797 N.E.2d 1256, is an “intervening decision” that created an exception to the applicability of the law-of-the-case doctrine in this case.

{¶ 3} Galatis created a change in the law that was inconsistent with the legal conclusion reached by the appellate court in this case. The appellate court below issued its decision in this matter two weeks after we issued Galatis but refused to reconsider its decision, stating that the law of the case precluded application of Galatis.1

{¶ 4} Appellant, Lumbermens Mutual Casualty Company, contends that the appellate court was required to follow Galatis because it created an exception to [462]*462the law-of-the-case doctrine. Appellee, Jennifer Hopkins, however, argues that the underlying issue of insurance coverage was reduced to final judgment and that res judicata bars relitigation. Even if the issue could be reopened, she argues, Galatis is distinguishable and does not apply to change the result in this case.

{¶ 5} For the reasons more fully explained below, we hold that Galatis is an intervening decision that created an exception to the law-of-the-case doctrine and that the court of appeals was obligated to follow Galatis in the case below. Therefore, we reverse the judgment of the court of appeals and remand the cause to the appellate court with instructions to apply Galatis and enter judgment in favor of appellant.

{¶ 6} In 1988, appellee, Jennifer Hopkins, then age 16, was injured when the bicycle she was riding was struck by a vehicle driven by Douglas Dyer. Nancy Hopkins, as mother and guardian of Jennifer Hopkins, settled with Dyer’s insurer for the $15,000 policy limits of his liability policy. She executed a release of claims against Dyer.

{¶ 7} On the date of the accident, Hopkins was a part-time employee at a fast food restaurant but was not acting within the course and scope of employment when she was injured. The restaurant had a comprehensive general liability insurance policy and a comprehensive catastrophic liability insurance policy issued by appellant, Lumbermens.

{¶ 8} In 2000, Jennifer Hopkins filed an action, Tuscarawas Common Pleas No. 2000 CV 07 0353, against Dyer and various insurance companies, not including Lumbermens, that asserted claims for underinsured motorist coverage pursuant to Scott-Pontzer v. Liberty Mut. Fire Ins. Co. (1999), 85 Ohio St.3d 660, 710 N.E.2d 1116. Lumbermens filed a declaratory judgment action with respect to coverage issues. The cases were consolidated.

{¶ 9} The trial court awarded summary judgment to Lumbermens.2 The court concluded that Jennifer Hopkins was not entitled to uninsured or underinsured motorist (“UM/UIM”) coverage because she was not an insured under the Lumbermens policies. Hopkins appealed.

{¶ 10} The court of appeals reversed the judgment as to Lumbermens and remanded the cause to the trial court (“Hopkins /”). The appellate court concluded that Lumbermens had been obligated to offer UM7UIM coverage but failed to do so. Therefore, coverage arose by operation of law under former R.C. [463]*4633937.18. The court further held that pursuant to Scott-Pontzer, Hopkins was an insured for purposes of UWUIM coverage under both Lumbermens policies.

{¶ 11} The court in Hopkins I remanded the cause for the trial court to decide issues of stacking, pro rata coverage, exposure, and other potential affirmative defenses that the trial court had not considered. The appellate court further stated that it would be premature to rule on whether Lumbermens suffered prejudice from the 11-year delay in notice of Hopkins’s claim, but instructed the lower court to follow Myers v. Safeco Ins. Co. (Feb. 18, 2000), Licking App. No. 99CA00083, 2000 WL 329800, which held that exclusionary provisions do not apply to UWUIM coverage that is implied by law.3

{¶ 12} Upon remand, the trial court concluded as a matter of law that Hopkins was insured under the Lumbermens policies and that both policies provided coverage by operation of law pursuant to Scott-Pontzer, 85 Ohio St.3d 660, 710 N.E.2d 1116. The court relied on the conclusions by the court of appeals as constituting the law of the case. The trial court also concluded that because UIM coverage was imposed by operation of law, none of the terms, conditions, or exclusions in the Lumbermens liability coverage applied. However, the trial court allowed a setoff for the $15,000 previously recovered from Dyer’s insurer.

{¶ 13} The case was appealed for a second time. On November 17, 2003, the appellate court affirmed (“Hopkins II").4 Lumbermens moved for reconsideration based upon Galatis, 100 Ohio St.3d 216, 2003-Ohio-5849, 797 N.E.2d 1256, which had been decided on November 5, 2003. The appellate court denied reconsideration. The court explained that it could not change its ruling because the law-of-the-ease doctrine precluded the application of Galatis.

{¶ 14} The cause is before this court upon the acceptance of a discretionary appeal.

{¶ 15} The law of the case is a longstanding doctrine in Ohio jurisprudence. “[T]he doctrine provides that the decision of a reviewing court in a case remains the law of that case on the legal questions involved for all subsequent proceedings in the case at both the trial and reviewing levels.” Nolan v. Nolan, 11 Ohio St.3d at 3, 11 OBR 1, 462 N.E.2d 410. The doctrine is necessary to ensure consistency of results in a case, to avoid endless litigation by settling the issues, and to preserve the structure of superior and inferior courts as designed by the Ohio Constitution. State ex rel. Potain v. Mathews (1979), 59 Ohio St.2d 29, 32, 13 [464]*464O.O.3d 17, 391 N.E .2d 343. It is considered a rule of practice, not a binding rule of substantive law. Hubbard ex rel. Creed v. Sauline (1996), 74 Ohio St.3d 402, 404, 659 N.E.2d 781.

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Hopkins v. Dyer, 820 N.E.2d 329, 104 Ohio St. 3d 461 (Ohio 2004).

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