Medical Protective Co. v. Pro Assurance, Unpublished Decision (9-10-2007)

2007 Ohio 4625
CourtOhio Court of Appeals
DecidedSeptember 10, 2007
DocketNos. 06CA008905, 06CA009041, 06CA009042.
StatusUnpublished

This text of 2007 Ohio 4625 (Medical Protective Co. v. Pro Assurance, Unpublished Decision (9-10-2007)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Medical Protective Co. v. Pro Assurance, Unpublished Decision (9-10-2007), 2007 Ohio 4625 (Ohio Ct. App. 2007).

Opinion

DECISION AND JOURNAL ENTRY
This cause was heard upon the record in the trial court. Each error assigned has been reviewed and the following disposition is made:

{¶ 1} Appellant, ProAssurance Corporation, appeals the directed verdict granted in favor of Appellees, The Medical Protective Company and Physician's Insurance Company of Ohio, by the Lorain County Court of Common Pleas. Appellant also appeals the submission of the apportionment of liability to the jury and the trial court's finding of frivolous conduct by Appellant and award of attorney fees to Appellees related thereto. We affirm in part and reverse in part.

{¶ 2} On November 6, 2003, Appellee, The Medical Protective Company ("Med Pro") filed a declaratory judgment action in the Lorain County Court of *Page 2 Common Pleas seeking a declaration that it had no coverage liability or duty to defend and indemnify Dr. Nangureddi Krishnan, M.D. and Nangureddi Krishnan, M.D., Inc. (collectively "Dr. Krishnan") after Dr. Krishnan was sued by Jeanne Meredith for failure to diagnose and treat her glaucoma during a 12 year time span. Med Pro, Appellee, Physician's Insurance Company of Ohio ("PICO"), and Appellant, ProAssurance Corporation ("ProAssurance") each had provided medical malpractice coverage to Dr. Krishnan during one of three successive time periods covering the twelve years Dr. Krishnan treated Ms. Meredith. Dr. Krishnan was insured by PICO from August 1988 until June 1996; by ProAssurance from June 1996 until June 1999; and by Med Pro from June 1999 through the date of Ms. Meredith's diagnosis (June 2000) and beyond. All three insurance carriers provided a defense to Dr. Krishnan in the medical malpractice action with each hiring their own attorney to represent the doctor.

{¶ 3} Prior to Med Pro's declaratory judgment action, the three insurers attempted to settle Ms. Meredith's claim, but problems arose because the three insurers could not agree upon their proportionate share of responsibility for the claim. Ms. Meredith's expert witness opined that Dr. Krishnan had been negligent in failing to diagnose Ms. Meredith's glaucoma during all three coverage periods and that the glaucoma had progressively worsened throughout each period. PICO believed that Dr. Krishnan was not negligent in failing to diagnose Ms. Meredith's glaucoma during its coverage period, the earliest of the three. Med Pro, who *Page 3 insured Dr. Krishnan during the last coverage period, believed that the malpractice had already occurred by the time it provided coverage and that no further harm had occurred. ProAssurance, however, who covered Dr. Krishnan in the middle time period, asserted that all three insurers were responsible and should pay equal portions of any settlement or award. When the insurers could not resolve their dispute, Med Pro filed its declaratory judgment action seeking a judgment from the court that it had no coverage liability for Ms. Meredith's claim.

{¶ 4} On November 24, 2003, the trial court held a settlement conference during which the judicial attorney met with each of the three insurers separately. The insurers finally agreed that each insurer would pay $100,000 to Ms. Meredith. It is this agreement that is at the heart of this appeal. Appellant ProAssurance asserts that this agreement was to fully and finally resolve the dispute between the insurers while Appellees MedPro and PICO assert that each insurer agreed to deposit $100,000 into a settlement fund to settle and dismiss the malpractice action, but that the parties intended to have respective responsibilities for the settlement determined in the declaratory judgment action. PICO asserts that its counsel sent a letter to all counsel memorializing the agreement. Med Pro received the letter, but ProAssurance states that it did not.

{¶ 5} The declaratory judgment action continued. ProAssurance filed its answer to MedPro's complaint and PICO asserted a counterclaim against MedPro *Page 4 and a cross-claim against ProAssurance for contribution asserting that it had paid more than its share at settlement.

{¶ 6} Prior to trial, ProAssurance filed a motion for summary judgment on the claims asserted by PICO and Med Pro arguing that PICO and Med Pro's voluntary payments to settle the malpractice action precluded them from seeking contribution as a matter of law. Attached to ProAssurance's motion were the affidavits of ProAssurance's vice president of claims and trial counsel that the insurers did not agree to reserve their rights to seek contribution. MedPro and PICO both opposed ProAssurance's motion, attaching affidavits that the parties had agreed that the pending action would proceed to apportion liability. The trial court denied ProAssurance's motion.

{¶ 7} Trial began and over objection, the trial court permitted MedPro to amend its complaint at trial to assert claims for contribution against ProAssurance and PICO and denied ProAssurance's motion to amend its Answer and assert a counterclaim and crossclaim against the other two insurers. At the end of opening statements, ProAssurance moved the trial court for directed verdict again asserting its "volunteer" defense, which the trial court denied. Instead, after hearing evidence on the issue of the agreement, the trial court directed a verdict in favor of PICO and MedPro finding that they had appropriately preserved their right to seek contribution. Appellant appeals the directed verdicts in favor of each Appellee. *Page 5

{¶ 8} The trial proceeded on the issue of apportionment and after hearing evidence from each insurer's expert witness, the jury found that liability should be apportioned as follows: ProAssurance — 60%; PICO — 24%; and MedPro — 16%. Appellant moved for judgment notwithstanding the verdict, which the trial court denied. Appellant appeals the trial court's instruction to the jury to apportion the liability asserting that such apportionment is a question of law. It also appeals the denial of its motion for judgment notwithstanding the verdict related thereto.

{¶ 9} Finally, PICO and MedPro filed motions for attorney fees related to their defense of ProAssurance's "volunteer" argument. The trial court granted the motion and awarded attorney fees to both Appellees finding that Appellant Pro Assurance's volunteer defense was frivolous. The fees awarded were based on MedPro's and PICO's submission of billing statements and affidavits as to the reasonableness of the fees claimed. Appellant appeals the trial court's finding that the volunteer argument was frivolous, the award of attorney fees, and the amount of the award.

{¶ 10} Appellant timely appealed the trial court's decisions as set forth above, raising four assignments of error.

First Assignment of Error
"The trial court erred in directing a verdict in favor of Appellee The Medical Protective Company."

Second Assignment of Error *Page 6
"The trial court erred in directing a verdict in favor of Appellee Physician's Insurance Company of Ohio."

{¶ 11}

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Bluebook (online)
2007 Ohio 4625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medical-protective-co-v-pro-assurance-unpublished-decision-9-10-2007-ohioctapp-2007.