Murrell v. Williamsburg Local School District

634 N.E.2d 263, 92 Ohio App. 3d 92, 1993 Ohio App. LEXIS 6231
CourtOhio Court of Appeals
DecidedDecember 27, 1993
DocketNo. CA93-02-009.
StatusPublished
Cited by20 cases

This text of 634 N.E.2d 263 (Murrell v. Williamsburg Local School District) 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
Murrell v. Williamsburg Local School District, 634 N.E.2d 263, 92 Ohio App. 3d 92, 1993 Ohio App. LEXIS 6231 (Ohio Ct. App. 1993).

Opinion

Per Curiam.

Plaintiff-appellant, Carl A. Murrell, and appellant, Donald C. Mitchell II, appeal a decision of the Clermont County Court of Common Pleas granting the motion of defendant-appellee, Auto Owners Insurance Company (“Auto Owners”), for sanctions against them.

On August 21, 1991, Murrell, through his attorney, Mitchell, filed a complaint against Williamsburg Local School District, Donna L. Courts, and Auto Owners, alleging that Murrell’s car was damaged by Courts, a bus driver for Williams-burg. Auto Owners is Williamsburg’s insurance carrier. The complaint alleged that Auto Owners denied his claim for damages and that it was “liable * * * for the tort of bad faith.”

On September 18,1991, Auto Owners filed a motion to dismiss, claiming that an injured party has no cause of action for bad faith against the alleged tortfeasor’s insurer and that, pursuant to R.C. 3929.06, an injured party may file a supplemental petition against the tortfeasor’s insurer only after being awarded judgment against the tortfeasor. Subsequently, counsel for Auto Owners sent a letter to Mitchell requesting that he voluntarily dismiss the complaint against Auto *94 Owners on the basis that the claim was not justified under Ohio law. At a hearing on December 30, 1991, counsel for Auto Owners again, asked Mitchell to drop the claim against Auto Owners, which appellants refused to do. However, appellants never responded in any way to Auto Owners’ motion to dismiss. The trial court granted Auto Owners’ motion to dismiss on March 5, 1992.

On March 26, 1992, Auto Owners .filed a motion asking that sanctions of attorney fees and costs be assessed against appellants pursuant to R.C. 2323.51. Following a hearing, the trial court concluded that the claim against Auto Owners was frivolous. At a second hearing on attorney fees, Auto Owners presented itemized bills from its attorneys, while appellants presented no evidence. Subsequently, the trial court awarded Auto Owners judgment against appellants in the amount of $2,741.75. This appeal followed.

Appellants present two assignments of error for review. In their first assignment of error, appellants state that the trial court erred by ruling that they did not act in good faith by filing suit directly against Auto Owners. Appellants argue that they had a good faith argument for extension, modification, or reversal of existing law. We find this ■ assignment of error is not well taken.

R.C. 2323.51(B)(1) authorizes a court to award reasonable attorney fees to any party in a civil action adversely affected by frivolous conduct. Melvin Stone Co. v. Everman (Mar. 8, 1993), Clinton App. No. CA92-06-012, unreported, at 3, 1993 WL 61765. A claim is frivolous if it is “not warranted under existing law and cannot be supported by a good faith argument for an extension, modification, or reversal of existing law.” R.C. 2323.51(A)(2)(b). A trial court’s decision to impose sanctions under R.C. 2323.51 will not be reversed on appeal absent an abuse of discretion. Turowski v. Johnson (1991), 70 Ohio App.3d 118, 121, 590 N.E.2d 434, 436; Heller v. Bohecker’s Business College, Inc. (Dec. 21, 1992), Butler App. No. CA92-07-130, unreported, at 2, 1992 WL 379382.

R.C. 3929.06 authorizes an injured party to file a supplemental petition against the tortfeasor’s insurer after recovering a judgment against the tortfeasor which has not been satisfied within thirty days. Appellants rely on Krejci v. Prudential Prop. & Cas. Ins. Co. (1993), 66 Ohio St.3d 15, 607 N.E.2d 446, in which the Ohio Supreme Court answered in the negative a question certified by a federal district court that read: “Does Ohio Revised Code § 3929.06 preclude an injured person from bringing any action * * * against the tortfeasor’s insurer unless the injured person has first obtained a judgment against the insured?” Appellants argue that they are not the only attorney and client who have attempted to change this rule of law, and that they had a good faith basis for their claim against Auto Owners. We find no merit in this argument.

*95 First, Krejci was decided on February 24,1993, almost two years after the trial court granted Auto Owners’ motion to dismiss. Prior to that case, appellate courts had uniformly held that, under R.C. 3929.06, an injured party could not file suit directly against the tortfeasor’s insurer. See, e.g., Lawreszuk v. Nationwide Ins. Co. (1977), 59 Ohio App.2d 111, 13 O.O.3d 165, 392 N.E.2d 1094; Chitlik v. Allstate Ins. Co. (1973), 34 Ohio App.2d 193, 63 O.O.2d 364, 299 N.E.2d 295; Secrest Trucking Co., Inc. v. Szerzinski (Jan. 25, 1988), Stark App. No. CA-7298, unreported, 1988 WL 17839. Second, appellants’ assertion that they were seeking a reversal of the law is belied by their failure to file a response to Auto Owners’ motion to dismiss, an omission for which they provided no explanation. As the trial court pointed out, “if Plaintiff had been possessed of such an argument, he would have made it in opposition to the Motion to Dismiss.” Third, Krejci does not stand for the proposition that appellants could file a bad faith claim against Auto Owners. Ohio law is clear that an insurer’s duty to act in good faith runs only from the insurer to the insured and a third party has no cause of action for bad faith against the tortfeasor’s insurance company. Pasipanki v. Morton (1990), 61 Ohio App.3d 184, 185, 572 N.E.2d 234, 234; D.H. Overmyer Telecasting Co. v. Am. Home Assur. Co. (1986), 29 Ohio App.3d 31, 34, 29 OBR 32, 35, 502 N.E.2d 694, 697; Paroline v. Doling & Assoc. (Nov. 15, 1990), Montgomery App. Nos. 11571, 11789 and 11919, unreported, at 7, 1990 WL 177663.

We cannot conclude that the trial court’s decision that appellants’ claim against Auto Owners is frivolous is so arbitrary, unreasonable, or unconscionable as to connote an abuse of discretion. Turowski, supra, 70 Ohio App.3d at 119, 590 N.E.2d at 435; Everman, supra, at 8-9. Accordingly, appellants’ first assignment of error is overruled.

In their second assignment of error, appellants state that the trial court erred in assessing attorney fees against them. Under this assignment of error, appellants make two distinct arguments. First, appellants argue that Auto Owners failed to present proper evidence that they had engaged in frivolous conduct. Second, appellants argue that attorney fees could only be assessed for the expenses incurred in relation to the motion to dismiss. We find this assignment of error is not well taken.

R.C. 2323.51(B) sets forth the procedure to be followed in determining if an award of attorney fees is appropriate. It provides:

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Bluebook (online)
634 N.E.2d 263, 92 Ohio App. 3d 92, 1993 Ohio App. LEXIS 6231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murrell-v-williamsburg-local-school-district-ohioctapp-1993.