Hyde v. Reynoldsville Casket Co.

626 N.E.2d 75, 68 Ohio St. 3d 240
Ohio Supreme Court·Decided February 9, 1994·No. No. 92-1682·Published·Cited by 14 cases

Opinions

Pfeifer, J.

This court is asked to determine whether the United States Supreme Court decision in Bendix Autolite Corp. v. Midwesco Enterprises, Inc. (1988), 486 U.S. 888, 108 S.Ct. 2218, 100 L.Ed.2d 896, holding the Ohio tolling statute, R.C. 2305.15(A), to be unconstitutional, should be retroactively applied to Hyde’s complaint filed against RCC and Blosh. For the following reasons, we determine that Bendix may not be retroactively applied.

Unless Hyde may utilize the tolling provision in R.C. 2305.15(A), her claim is precluded by the applicable statute of limitations. In Ohio, the period of limitations for a personal injury negligence action is two years. R.C. 2305.10. Hyde filed her complaint seventeen months after this two-year period had expired. At the time of the accident, R.C. 2305.15, now 2305.15(A), tolled the limitations period for claims against out-of-state defendants by providing:

“When a cause of action accrues against a person, if he is out of the state, or has absconded, or conceals himself, the period of limitation for the commencement of the action as provided in sections 2305.04 to 2305.14 * * * of the Revised Code, does not begin to run until he comes into the state or while he is so absconded or concealed. After the cause of action accrues if he departs from the state, or absconds or conceals himself, the time of his absence or concealment shall not be computed as any part of a period within which the action must be brought.” 129 Ohio Laws 177.

It is not alleged that RCC re-entered the state of Ohio after the accident of March 5, 1984. Pursuant to R.C. 2305.15, the limitations period for Hyde to bring an action against RCC was tolled, and had not elapsed when Hyde filed her complaint. See Seeley v. Expert, Inc. (1971), 26 Ohio St.2d 61, 55 O.O.2d 120, 269 N.E.2d 121.

Nearly one year after Hyde filed her complaint, the United States Supreme Court determined that the tolling provision in R.C. 2305.15 violated the Commerce Clause of the United States Constitution when applied to out-of-state entities. Bendix, supra. In its opinion, the Bendix court specifically declined to determine whether its ruling should be applied prospectively only. Id., 486 U.S. at 895, 108 S.Ct. at 2222-2223, 100 L.Ed.2d at 905.

We are now confronted with the task of determining whether the Bendix decision is to be applied retroactively. Until recently, Chevron Oil Co. v. Huson (1971), 404 U.S. 97, 92 S.Ct. 349, 30 L.Ed.2d 296, provided the three-part test to determine whether courts should retroactively apply a decision of the United States Supreme Court when the result is to shorten limitations periods of cases accrued before the decision was announced. However, in Harper v. Virginia Dept. of Taxation (1993), 509 U.S. -, 113 S.Ct. 2510, 125 L.Ed.2d 74, the United States Supreme Court announced a new test concerning the retroactive [243]*243application of decisions. It is unclear whether Harper was intended to replace Chevron, or to supplement it.

I

If Chevron remains good law today, then that case — and not Harper — provides the proper test to apply to the present case. The present case is closer to Chevron than to Harper. Harper determined that a United States Supreme Court decision striking down a Michigan taxing practice as unconstitutional must be retroactively applied to Virginia taxpayers taxed under a similar statute. Chevron discusses whether a ruling which shortens a limitations period should be retroactively applied.

Chevron sets forth the following three-pronged test to determine when ■ a holding of the United States Supreme Court should not be retroactively applied:

“First, the decision to be applied nonretroactively must establish a new principle of law, either by overruling clear past precedent on which litigants may have relied, * * * or by deciding an issue of first impression whose resolution was not clearly foreshadowed * * *. Second, it has been stressed that ‘we must * * * weigh the merits and demerits in each case by looking to the prior history of the rule in question, its purpose and effect, and whether retrospective operation will further or retard its operation.’ * * * Finally, we have weighed the inequity imposed by retroactive application, for ‘[w]here a decision of this Court could produce substantial inequitable results if applied retroactively, there' is ample basis in our cases for avoiding the “injustice or hardship” by a holding of nonretroactivity.’ ” 404 U.S. at 106-107, 92 S.Ct. at 355, 30 L.Ed.2d at 306.

The facts in the present case pass the three-pronged Chevron test for nonretroactivity. The United States Supreme Court’s opinion in Bendix, supra, was the first time that any court of binding authority in Ohio’s state courts had ruled R.C. 2305.15 unconstitutional. When Hyde was injured, she could not have foreseen that R.C. 2305.15 would be struck down four years later. “The most [s]he could do was to rely on the law as it then was.” Chevron, 404 U.S. at 107, 92 S.Ct. at 356, 30 L.Ed.2d at 306.

Because of the factual similarities between the present case and Chevron, it is unnecessary to discuss the other two prongs of the Chevron test. The Chevron court held that the retroactive application of a rule shortening the limitations period in a tort case fulfilled the last two requirements of the test for nonretroactivity. Because all three requirements of the Chevron test are likewise fulfilled in this case, we determine that Bendix cannot be retroactively applied.

[244]*244II

Even if the Chevron test has been replaced by Harper, the retroactive application of Bendix remains impermissible.

In Harper, the United States Supreme Court determined that its prior decision in Davis v. Michigan Dept. of Treasury (1989), 489 U.S. 803, 109 S.Ct. 1500, 103 L.Ed.2d 891, should be retroactively applied. The Davis decision declared that it was unconstitutional for the state of Michigan to tax retirement benefits paid by the federal government when that state exempts retirement benefits paid by the state or its political subdivisions. The state of Virginia, in Harper, argued that Davis should not be retroactively applied.

The United States Supreme Court rejected Virginia’s argument, holding that Davis must be retroactively applied. However, the Supreme Court declined to enter judgment for the taxpayers “because federal law does not necessarily entitle them to a refund.” Harper, supra, 509 U.S. at-, 113 S.Ct. at 2519, 125 L.Ed.2d at 88. The Harper court went on to note that a state, when retroactively applying a Supreme Court decision, “ ‘retains flexibility* ” in fashioning appropriate relief. Id. at-, 113 S.Ct. at 2518, 125 L.Ed.2d at 89, quoting McKesson Corp. v. Div. of Alcoholic Beverages & Tobacco

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Hyde v. Reynoldsville Casket Co., 626 N.E.2d 75, 68 Ohio St. 3d 240 (Ohio 1994).

626 N.E.2d 75 (Hyde v. Reynoldsville Casket Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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