Nationwide Insurance v. Steigerwalt

242 N.E.2d 890, 16 Ohio App. 2d 133, 45 Ohio Op. 2d 423, 1968 Ohio App. LEXIS 330
CourtOhio Court of Appeals
DecidedDecember 18, 1968
Docket592
StatusPublished
Cited by1 cases

This text of 242 N.E.2d 890 (Nationwide Insurance v. Steigerwalt) 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. Steigerwalt, 242 N.E.2d 890, 16 Ohio App. 2d 133, 45 Ohio Op. 2d 423, 1968 Ohio App. LEXIS 330 (Ohio Ct. App. 1968).

Opinion

Brown, J.

This is an appeal on questions of law by the plaintiff, appellant herein, from a final judgment granted on the pleadings in favor of defendant, appellee herein, dismissing the petition of plaintiff, by the Common Pleas Court of Sandusky County.

The petition of plaintiff, Nationwide Insurance Com *134 pany, stated a subrogation claim for property damages arising out of a collision on February 20, 1964, between an automobile owned and operated by Raymond Zweily, its insured, and a truck operated by the defendant, Harold Steigerwalt. Zweily at that time had an insurance policy with plaintiff providing one hundred dollars deductible property damage coverage. Plaintiff then paid Zweily $1,705 for the property damage which exceeded $100.

Thereafter on September 22, 1965, Zweily, Nationwide’s insured, filed a petition in the Common Pleas Court of Sandusky County to recover for his personal injuries and the $100 deductible portion of his property damages growing out of the collision.

Next, on February 17, 1966, plaintiff, Nationwide Insurance Company, filed a petition in the Common Pleas Court of Sandusky County pursuant to its subrogation agreement with Zweily to recover the sum of $1,705 which it had paid to Zweily for the nondeductible portion of his property damages pursuant to his insurance coverage. Defendant was served with summons on February 23, 1966.

On March 2,1966, defendant filed an answer and cross-petition in the personal injury action and made no reference to the subrogation claim of plaintiff, Nationwide Insurance Company.

On May 9, 1966, Zweily’s personal injury action, the first of these two legal actions filed, was tried to a jury which returned a general verdict for the defendant.

Thereafter, defendant filed an amended answer in the present subrogation case of plaintiff, Nationwide Insurance Company, alleging the defense of res judicata based on the final judgment on the general verdict of the jury in favor of the defendant in the earlier and separate personal injury action of Zweily against this same defendant. Defendant also filed a motion for judgment on the pleadings based upon the defense of res judicata asserted in the amended answer. The Common Pleas Court thereupon granted judgment on the pleadings in favor of the defendant.

The legal question presented by the record may be stated as follows: Where one (an insured) suffered both *135 personal injuries and property damage by reason of a single negligent act and assigned his nondeductible property damage claim against the tort-feasor to a third person (the insurer), and then the insured prosecuted a negligence action for personal injuries and deductible property damage loss against the tort-feasor, will a judgment in such personal injury action in favor of such tort-feasor bar a subsequent action against the same tort-feasor brought by such third person (the insurer-subrogee-assignee) to recover damages for the nondeductible property damage loss as assignee-subrogee? A careful reading of this legal question demonstrates how it differs from the legal issue stated in the case of Vasu v. Kohlers, Inc., 145 Ohio St. 321, at pages 324, 325, 166 A. L. R. 855, a principal case upon which plaintiff relies in urging reversal. In Vasu, supra, the insurer’s subrogation claim, a derivative claim making the insurer as assignee a successor in interest to a part of the primary claim of the insured, a predecessor in interest, was tried first resulting in a verdict in favor of the tort-feasor. Thereafter, in Vasu, supra, the insured in his personal injury action was met by the defense of res judicata arising out of the final judgment in favor of the defendant tort-feasor in the earlier subrogation case. In Vasu, supra, the plaintiff in the second suit, a personal injury action, was not a successor in interest from his insurer which had lost its subrogation suit against the same alleged tort-feasor, and for that reason Yasu, the injured claimant, was not in privity with his insurer and was not bound by the earlier final judgment adverse to the insurer.

It should be remembered in the present Nationwide case that plaintiff, Nationwide Insurance Company, is not a predecessor in interest to its insured, Zweily, but rather Zweily is a predecessor in interest to his insurer, the plaintiff, Nationwide, and the latter is the successor in interest to Zweily as to the nondeductible portion of the property loss. Stating it another way, Zweily is the grantor, vendor, assignor or subrogor of the nondeductible property loss claim to which plaintiff, Nationwide, was subrogated, and plaintiff, Nationwide, was the grantee, vendee, assignee and subrogee of such claim. This relationship or status between *136 insurer and insured must be kept in view in determining the applicability of the principle of res judicata.

A party, such as Nationwide Insurance Company, which by the device of assignment and subrogation has succeeded to an estate or interest in part of an indivisible property damage claim of its insured, Zweily, is to that extent in privity with Zweily who is its predecessor in interest. Privity is dependent upon a succession in interest to the same thing whether created by deed, by contract, by other act or by operation of law. Litigation is not essential to the creation of privity. 30A American Jurisprudence 451, Section 399. Therefore, privity arises upon payment by the insurer to the insured of a loss, at which time the insurer acquires a legal or equitable interest in an indivisible cause of action. The insurer’s interest is derived from and in privity with the insured, and what he receives is not an interest in litigation so as to make him a technical privy to a pending action but a portion of a single claim which is no better than his predecessor possessed. Spargur v. Dayton Power & Light Co., 79 Ohio Law Abs. 206, 152 N. E. 2d 918 at page 924.

Because a successor in interest as to part of an indivisible cause of action is in privity with his predecessor in interest, a judgment adverse to the predecessor in interest does, therefore, estop the successor in interest and is, likewise, res judicata as to the claim of the successor in interest. Spargur v. Dayton Power & Light Co., 79 Ohio Law Abs. 206, 152 N. E. 2d 918, at pages 922, 923, 924, 926; 30A American Jurisprudence 454, Section 400; 50 Corpus Juris Secundum 289, 327, Sections 763 and 789; Bigelow on Estoppel (6 Ed.), 160; Restatement of the Law of Judgments 433, Section 89, Comment c, e and f.

In essence the doctrine of res judicata is that an existing final judgment or decree, rendered upon the merits, is conclusive of rights, questions and facts in issue, as to the parties or their privies in all other actions or suits in the same or any other judicial tribunal of concurrent jurisdiction, and cannot again be litigated. Conoid v. Stern, 138 Ohio St. 352, paragraph one of the syllabus; Schimke v. Early, 173 Ohio St. 521, the syllabus; Rabin v. Horst

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Bluebook (online)
242 N.E.2d 890, 16 Ohio App. 2d 133, 45 Ohio Op. 2d 423, 1968 Ohio App. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-insurance-v-steigerwalt-ohioctapp-1968.