Nationwide Insurance v. Shenefield

620 N.E.2d 866, 85 Ohio App. 3d 563, 1992 Ohio App. LEXIS 6331
CourtOhio Court of Appeals
DecidedDecember 18, 1992
DocketNo. H-92-006.
StatusPublished
Cited by7 cases

This text of 620 N.E.2d 866 (Nationwide Insurance v. Shenefield) 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
Nationwide Insurance v. Shenefield, 620 N.E.2d 866, 85 Ohio App. 3d 563, 1992 Ohio App. LEXIS 6331 (Ohio Ct. App. 1992).

Opinion

Melvin L. Resnick, Judge.

This case is before the court on appeal from a judgment of the Huron County Court of Common Pleas which, after a jury trial, awarded substituted third-party plaintiff, Nationwide Insurance Company (“Nationwide”), $50,000 on its claim for contribution from appellants, Jason Shenefield and Billy Joy Shenefield.

On July 5, 1989, Paul A. Parker was injured as a result of an automobile accident. Parker’s automobile collided head-on with the vehicle of Jerry L. Moore. On May 7, 1990, Paul Parker and his wife, Arlene A. Parker, filed a complaint in which they named Jerry L. Moore and “John Doe, Owner of Sheep” as defendants. The complaint alleged that John Doe’s sheep were negligently allowed to wander into Jerry Moore’s lane of travel, that Moore operated his vehicle left of the center line (in order to avoid the sheep)' and was cited for a violation of R.C. 4511.26, and that the negligence of the defendants caused property damage and personal injury to the Parkers.

*565 After answering, Moore filed a third-party complaint raising a claim of contribution and/or indemnity against Billy Joy Shenefield, Jason Shenefield and Roger Voorhees. All three third-party defendants answered. The claim against Voorhees was later dismissed, without prejudice.

On December 18, 1991, the Parkers filed a motion to amend their complaint in order to name Billy Joy and Jason Shenefield as defendants in their negligence action. The Shenefields filed a memorandum in opposition in which they asserted that the Parkers failed to satisfy the requirements of Civ.R. 15(D) and that, pursuant to R.C. 2305.10, the two-year statute of limitations governing actions for bodily injury/personal property damage had expired.

On December 26,1991, the Parkers signed a release of all claims against Jerry L. Moore, Nationwide (Moore’s insurer), “certain John Does subsequently identified as Jason Shenefield and/or Billy Joy Shenefield” and “any and all other persons.” Nationwide paid the Parkers $100,000 to settle their claim. In addition, Moore assigned to the Parkers one-third of any monies he might receive as a result of his action for contribution against the Shenefields.

On January 13, 1992, the court below entered a judgment on the settlement agreement. The Parkers’ motion to amend their complaint and the complaint itself were dismissed. The case proceeded to trial on the third-party complaint; however, Nationwide and the Parkers were substituted as the real parties in interest for the third-party plaintiff, Jerry Moore. 1

In their trial brief, in a motion to dismiss made at the commencement of trial, and in a motion for a directed verdict at the close of third-party plaintiffs case, the Shenefields argued that the right to contribution was extinguished because the Parkers failed to name the Shenefields as defendants in the original complaint prior to the time that the applicable statute of limitations expired. That is, the Shenefields asserted that the release was executed after the running of the two-year statute of limitations and did not extinguish their liability to the Parkers because any cause of action against them ceased to exist as of July 5, 1991. Thus, the Shenefields contended that Nationwide failed to satisfy the requirements of R.C. 2307.31(B), that portion of the Ohio Contribution Among Joint Tortfeasors Act which governs settlement agreements. The trial court overruled the motions to dismiss and for a directed verdict.

After the jury reached a verdict finding that fifty percent of the negligence which caused injury to the Parkers was attributable to the Shenefields, the lower court entered judgment awarding $50,000 to Nationwide. In the same entry, the *566 Parkers were dismissed from the contribution action as not being the real parties in interest. This appeal followed. The Shenefields set forth a single assignment of error:

“The lower court erred in overruling third-party defendants’ motion to dismiss and motions for directed verdict at trial and in upholding a claim for contribution by a third-party plaintiff against a third-party defendant where a release, which was executed by plaintiffs pursuant to a prior settlement with the defendant third-party plaintiff, was ineffective to extinguish any claim possessed by plaintiffs’ against the third-party defendant due to the fact that any such claim had already been extinguished by the running of the statute of limitations.”

The Shenefields contend that Nationwide failed to satisfy the requirements of R.C. 2307.31(B) and therefore is barred from seeking contribution from them. Specifically, they argue that the release entered into by the Parkers could not have extinguished the Shenefields’ liability because that liability to the Parkers expired at the time the two-year statute of limitations governing actions for bodily injury/personal property damage expired.

R.C. 2307.31 provides, in pertinent part:

“(A) * * * If two or more persons are jointly and severally liable in tort for the same injury or loss to person or property or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them.”
u % *
“(B) A tortfeasor who enters into a settlement with a claimant is not entitled to recover contribution from another tortfeasor whose liability for the injury or loss to person or property or the -wrongful death is not extinguished by the settlement, or in respect to any amount paid in a settlement which is in excess of what is reasonable.”

The sole issue before this court is whether the requirements of R.C. 2307.31(B) were satisfied under Ohio law. The Shenefields assert that these requirements were not met because, due to the expiration of the statute of limitations on the Parkers’ claims against them, their liability was “extinguished” prior to the execution of the release. Nationwide argues that the assertion of the affirmative defense of the running of the relevant statute of limitations does not “extinguish” the common liability. Rather, it contends that the defense simply bars a plaintiffs recovery, that is, deprives the plaintiff of a remedy and that, therefore, the liability existed at the time of the release.

In Moler v. Quality Chevrolet, Inc. (1981), 2 Ohio App.3d 120, 121, 2 OBR 134, 135, 440 N.E.2d 1228, 1229, the Tenth District Court of Appeals discussed the phrase “where two or more persons are jointly or severally liable in tort” as *567 found in R.C. 2307.31(A) and held that “a person must be liable in tort to the person injured as a condition precedent to the existence of a right to contribution between the tortfeasors.” The Moler court concluded that the third-party plaintiff in that case had no right to contribution from the third-party defendant, who was the plaintiffs husband, due to the doctrine of interspousal immunity.

In a second case, Couch v. Thomas

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Bluebook (online)
620 N.E.2d 866, 85 Ohio App. 3d 563, 1992 Ohio App. LEXIS 6331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-insurance-v-shenefield-ohioctapp-1992.