Leber v. Buckeye Union Insurance

708 N.E.2d 726, 125 Ohio App. 3d 321
CourtOhio Court of Appeals
DecidedJuly 18, 1997
DocketNo. E-96-014.
StatusPublished
Cited by13 cases

This text of 708 N.E.2d 726 (Leber v. Buckeye Union Insurance) 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
Leber v. Buckeye Union Insurance, 708 N.E.2d 726, 125 Ohio App. 3d 321 (Ohio Ct. App. 1997).

Opinion

*324 Per Curiam.

This is a coda to protracted and voluminous litigation stemming from a 1979 accident in which Eugene A. Leber was shot and permanently disabled by Erie County Deputy Sheriff Steven A. Smith after a motor vehicle chase, when Smith, as he approached Leber’s vehicle, slipped on ice and his gun discharged. The tragedy spawned litigation in the federal court and the Erie County Court of Common Pleas, with appeals to this court and the Ohio Supreme Court.

In this appeal the two issues are (1) attorney fees ordered paid by the Erie County Court of Common Pleas, upon conclusion of the merit appeal to the Ohio Supreme Court on December 9,1994, and (2) the method of calculation of interest on judgments.

On June 27, 1995, appellees/cross-appellants, Leber and his parents, June and Richard Leber (collectively “appellees”), filed in the trial court a “Petition/Application/Motion For (1) Reasonable Attorney Fees and Litigation Expenses; and (2) Compound or Annual Interest” on the September 4, 1987 judgment. A hearing was held and the trial court thereupon entered a judgment, supported by separate findings of fact and conclusions of law. The trial court granted judgment in favor of appellees against appellant/cross-appellee, Buckeye Union Insurance Company (“Buckeye”), in “the sum of $10,478,139.68 as and for attorney fees” and taxed $66,819.39 in litigation expenses against Buckeye. The trial court denied appellees’ request for compound or annual interest.

Buckeye appeals from this judgment, setting forth the following three assignments of error:

“Assignment of Error No. 1:
“The trial court erred by awarding attorney fees after the parties exhausted all appeals from the trial court’s final judgment (11/9/95 Judgment).
“Assignment of Error No. 2:
“The trial court erred by awarding attorney fees against a nongovernmental defendant in a spurious taxpayer’s action (11/9/95 Judgment).
“Assignment of Error No. 3:
“The trial court erred and abused its discretion by awarding egregiously excessive attorney fees (11/9/95 Judgment).”

In their challenge to the overruling of the request for a different method of determining interest, appellees assign a single assignment of error:

“Having concluded: (1) that the unrebutted evidence supported plaintiffs’ entitlement to compound or, alternatively, annual interest on the September 4, 1987 judgment; and (2) that, equitably, plaintiffs should receive compound, or at *325 least annual, interest on that judgment — the trial court committed reversible error by not entering such an award on the sole basis that Moskovitz v. Mt. Sinai Med. Ctr. (1994), 69 Ohio St.3d 638 [635 N.E.2d 331], and Hogg v. Zanesville Canal & Mfg. Co. (1832), 5 Ohio 410 [1832 WL 26], do not hold that compound or, alternatively, annual interest should be allowed on unpaid judgments.”

PROCEDURAL HISTORY

At the time of the 1979 accident, the Board of Erie County Commissioners carried a comprehensive general liability insurance policy with Buckeye Union Insurance Company (“Buckeye”). The Erie County Sheriffs Department carried a liability insurance policy with American Home Assurance Company (“American Home”).

Four separate lawsuits resulted from the 1979 accident. 1 In June 1983, Eugene Leber and his parents, June and Richard Leber, filed a personal injury action in Erie County Court of Common Pleas case No. 45270, captioned Leber v. Smith (“Leber 1”), against Steven A. Smith, individually and as a deputy of the Erie County Sheriffs Department; John Magnuson, Erie County Sheriff as successor to Harold Gladwell, Erie County Sheriff; Wanda June Gladwell, administrator of the estate of Harold Gladwell; and the board and the Erie County Commissioners individually. The trial court held that the board was liable for the negligence of the sheriff or his deputies under the doctrine of respondeat superior. Settlement negotiations began, but no settlement resulted. The board’s position was that settlement could not be discussed until Buckeye offered to participate and contribute to a settlement. Buckeye made no settlement offer. A trial resulted in a jury verdict of $10,240,000 for the Lebers against all of the defendants. The jury found the following percentages of total negligence: Smith, thirty-five; Erie County Sheriff, sixty-five; and Leber, none. On August 7, 1984, the trial court entered judgment for the Lebers in the reduced amount of $10,150,000. The Lebers appealed that judgment to this court, arguing that the trial court erred in reducing the jury’s award.

Following the verdict in Leber 1, on August 20, 1984, the Lebers brought a taxpayer’s action in Erie County Court of Common Pleas, case No. 45896, captioned State ex rel. Leber v. Am. Home Assurance. 2 In that case, the Lebers *326 alleged that the insurance companies failed to provide an adequate defense and acted in bad faith in failing to negotiate a settlement in Leber 1.

On September 18, 1984, after the judgment in Leber 1 but before the appeal was decided, the Lebers filed a supplemental petition in that case, pursuant to R.C. 3929.06, 3 joining as defendants American Home, Buckeye, David M. Jones, John D. Wiley, Jr ., and Eastman & Smith. In the supplemental petition, the Lebers claimed that Buckeye acted in bad faith in failing to settle the action against the original defendants in Leber 1 and that the Buckeye policy limit exceeded $1,000,000. Similar claims were made against American Home. As to Jones, Wiley, and Eastman & Smith, the Lebers asserted claims of legal malpractice. Buckeye, in its answer, filed a third-party complaint against Raymond N. Watts, an attorney employed by Buckeye to defend the interests of the insureds in Leber I. The Lebers then asserted claims-of legal malpractice against Watts.

On October 10, 1984, the board filed a declaratory judgment action against Buckeye in Erie County Court of Common Pleas, case No. 46067, captioned Bd. of Erie Cty. Cmmrs. v. Buckeye Union. In that case, the board sought a determination of the parties’ rights and obligations under the Buckeye policy, in particular, a declaration whether Buckeye was legally obligated to defend the board in case No. 45270 and the amount of insurance coverage provided. The Lebers later intervened in this declaratory judgment action.

On March 19, 1986, while the Leber 1 appeal was pending in this court, the Lebers and all of the defendants in that case entered into a settlement agreement *327 (“Leber 1

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708 N.E.2d 726, 125 Ohio App. 3d 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leber-v-buckeye-union-insurance-ohioctapp-1997.