Kostelnik v. Helper

96 Ohio St. 3d 1
CourtOhio Supreme Court
DecidedJuly 3, 2002
DocketNo. 2000-2236
StatusPublished
Cited by408 cases

This text of 96 Ohio St. 3d 1 (Kostelnik v. Helper) 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
Kostelnik v. Helper, 96 Ohio St. 3d 1 (Ohio 2002).

Opinions

Lundberg Stratton, J.

{¶ 1} On June 9, 1995, appellant, Michael R. Kostelnik, Jr., as executor of the estate of Jacqueline M. Kostelnik, filed a wrongful-death action against appellee Steven D. Helper, M.D., and appellee Meridia Hillcrest Hospital. The complaint alleged that Jacqueline M. Kostelnik’s death was proximately caused by the negligence of Dr. Helper and Meridia Hillcrest Hospital. The trial was set for September 29, 1997. However, on that day, in the presence of the trial judge, Kostelnik agreed to settle the case against Dr. Helper and Hillcrest Hospital. Accordingly, the parties filed a “Stipulation for Dismissal and Judgment Entry,” which read, “Settled and Dismissed with prejudice at Defendant’s costs. No record.” The judge and all the parties signed the entry.

{¶ 2} On September 30, 1997, counsel for Hillcrest Hospital sent a letter to Kostelnik confirming that Hillcrest was to pay $100,000 to settle the case, along with a release to be executed in exchange for the payment. On October 8, 1997, counsel for Dr. Helper sent a release for Kostelnik to execute in contemplation of a $1,100,000 payment to Kostelnik from Dr. Helper’s insurer, P.I.E.

{¶ 3} On December 11, 1997, the probate court approved the settlement and distribution of the proceeds. On that same day, Kostelnik executed and returned the release to Dr. Helper and sought to collect the $1,100,000 from P.I.E. However, Kostelnik was unsuccessful in these collection efforts, and on December 15, 1997, by order of the Franklin County Court of Common Pleas, P.I.E. was placed under the control of the Superintendent of the Department of Insurance pursuant to the provisions of R.C. Chapter 3903 due to P.I.E.’s financial problems. The order also stayed all actions in which P.I.E. was obligated to defend a party.

{¶ 4} On December 23, 1997, Kostelnik filed a motion for relief from the September 29, 1997 settlement entry as to Dr. Helper only and for judgment nunc pro tunc against Dr. Helper only in the amount of $1,100,000. Dr. Helper [2]*2opposed the motion, arguing that the pending liquidation of P.I.E. required that the case be stayed. On January 13, 1998, the trial judge stayed consideration of Kostelnik’s motion for relief from judgment pursuant to the P.I.E. stay.

{¶ 5} On February 4, 1999, after the stay against P.I.E. was lifted, the trial court placed the case back on the active docket.

{¶ 6} On May 14, 1999, Kostelnik withdrew his motion for relief from judgment and moved the court to reduce the settlement to a judgment against Dr. Helper and Hillcrest Hospital jointly and severally in the amount of $1,200,000. Both Hillcrest Hospital and Dr. Helper opposed Kostelnik’s motion to enforce the judgment jointly and severally. Hillcrest Hospital also moved the court to enforce the settlement against it in the amount of $100,000 and against Dr. Helper in the amount of $1,100,000. Dr. Helper filed a brief in opposition, arguing that his settlement was predicated upon the understanding that he was covered by liability insurance that would pay the settlement. Thus, Dr. Helper requested that the court find that the settlement was null and void due to P.I.E .’s insolvency or alternatively that he may satisfy his settlement obligation by paying $300,000 available from the Ohio Insurance Guarantee Association.

{¶ 7} On July 27,1999, the trial court held an evidentiary hearing to consider the two motions to enforce the settlement agreement. Ml the parties attended and argued the positions set out in their briefs. On August 2, 1999, the trial court issued an entry that stated:

{¶ 8} “Plaintiffs motion to reduce settlement to judgment against defendants jointly and severally is denied. Defendant Meridia Hillcrest Hospital’s motion to enforce settlement is denied. This case is set for trial 11-17-99 at 9 a.m.”

{¶ 9} Kostelnik appealed, arguing that the total settlement should have been jointly and severally enforced against Hillcrest Hospital and Dr. Helper. Hill-crest Hospital cross-appealed, arguing that the judgment should have been enforced against Hillcrest Hospital in the amount of $100,000 only. Dr. Helper did not participate in the appeal. The appellate court affirmed the trial court’s judgment, finding that the parties never agreed to joint and several liability and finding that there was no meeting of the minds as to the terms of the settlement.

{¶ 10} This matter is before this court pursuant to the allowance of a discretionary appeal by Kostelnik.

{¶ 11} The issue before this court is whether an enforceable settlement agreement exists and, if so, what its terms are. Upon examination of the record, we find that there is an enforceable settlement agreement whereby Kostelnik settled with Hillcrest Hospital for $100,000 and separately with Dr. Helper for $1,100,000.

[3]*3{¶ 12} Initially we address the arguments of Dr. Helper before this court. Dr. Helper filed a brief with this court arguing that “[n]either the briefs of Appellant in the trial court and Court of Appeals nor the lower court opinions address the issue of whether Dr. Stephen Helper would be personally responsible if the settlement agreement entered into by the P.I.E. Mutual Insurance Company on behalf of Dr. Helper and the appellant was enforceable” and thus “it is waived and cannot be decided by this Court.” Dr. Helper goes on to argue that if the settlement agreement was enforceable, it can be enforced only against P.I.E.’s liquidator, and not against Dr. Helper personally.

{¶ 13} At the evidentiary hearing before the trial court to consider Kostelnik’s and Hillcrest Hospital’s motions to enforce the settlement agreement, Dr. Helper argued that his agreement to settle with Kostelnik was contingent upon P.I.E. paying the $1,100,000 on his behalf, and therefore, due to P.I.E.’s insolvency, the settlement could not be enforced against Dr. Helper personally. The trial court issued an entry that merely denied both motions to enforce the settlement agreement without comment and set the case for trial. The trial court did not address Dr. Helper’s issues. A motion not expressly decided by a trial court when the case is concluded is ordinarily presumed to have been overruled. State ex rel. V Cos. v. Marshall (1998), 81 Ohio St.3d 467, 469, 692 N.E.2d 198.

{¶ 14} Both Kostelnik’s appeal and Hillcrest Hospital’s cross-appeal included Dr. Helper as a party to the settlement agreement. However, Dr. Helper did not file a cross-appeal, and thus he failed to preserve his argument that his settlement was contingent upon P.I.E.’s paying the $1,100,000. By failing to appeal these issues to the appellate court, Dr. Helper failed to preserve for appeal the arguments that he now attempts to make in this court.

{¶ 15} It is preferable that a settlement be memorialized in writing. Pawlowski v. Pawlowski (1992), 83 Ohio App.3d 794, 798-799, 615 N.E.2d 1071. However, an oral settlement agreement may be enforceable if there is sufficient particularity to form a binding contract. Spercel v. Sterling Industries, Inc. (1972), 31 Ohio St.2d 36, 39, 60 O.O.2d 20, 285 N.E.2d 324. Terms of an oral contract may be determined from “words, deeds, acts, and silence of the parties.” Rutledge v. Hoffman (1947), 81 Ohio App. 85, 36 O.O.

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Bluebook (online)
96 Ohio St. 3d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kostelnik-v-helper-ohio-2002.