Nationwide Mutual Insurance v. Collins

491 N.E.2d 407, 23 Ohio Misc. 2d 22, 23 Ohio B. 187, 1985 Ohio Misc. LEXIS 93
CourtCity of Cleveland Municipal Court
DecidedMarch 8, 1985
DocketNo. 84 CV E 18986
StatusPublished
Cited by4 cases

This text of 491 N.E.2d 407 (Nationwide Mutual Insurance v. Collins) is published on Counsel Stack Legal Research, covering City of Cleveland Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Mutual Insurance v. Collins, 491 N.E.2d 407, 23 Ohio Misc. 2d 22, 23 Ohio B. 187, 1985 Ohio Misc. LEXIS 93 (Ohio Super. Ct. 1985).

Opinion

Adrine, J.

This matter came on for decision on plaintiffs motion for reconsideration of this court’s order dated January 29, 1985. The portion of the order which plaintiff wishes this court to reconsider reads as follows:

“It is further ordered and adjudged that plaintiff shall join its insured, Barbara McWilliams, as a co-plaintiff herein or, if she refuses to join as a co-plaintiff, as a defendant herein, all as provided in Civ. R. 19(A). After said Barbara McWilliams has been joined as a party herein, defendant may assert his claim against her by way of counterclaim (if she is joined as a co-plaintiff) or by way of cross-claim (if she is joined as a defendant). Plaintiff shall filed [sic] its amended complaint joining the said Barbara McWilliams as a party herein within 28 days of the date of this order.”

Plaintiff, Nationwide Mutual Insurance Company, requests reconsideration on three grounds.

First, plaintiff argues that:

“A subrogated auto insurer is an exception to Civil Rule 19(A)(3) as a cause of action can be split in such a limited circumstance, as the Supreme Court has consistently held.”

This conclusion is premised on paragraph two of the syllabus of Nationwide Ins. Co. v. Steigerwalt (1970), 21 Ohio St.2d 87 [50 O.O.2d 200], which reads as follows:

“For the limited purpose of prosecution of a claim under a policy of automobile insurance, a single cause of action may be divided to the extent that the insurer, subrogated to a part of a claim assigned by the insured, may prosecute its claim in a separate action against the tortfeasor. (Hoosier Casualty Co. v. Davis, 172 Ohio St. 5 [15 O.O.2d 45], approved and followed.)” (Emphasis sic.)

But plaintiff is mistaken in the conclusion which it draws from this syllabus. The cited case, as well as the case which it approves and follows, is a pre-rule decision, and the principles enunciated in that case have been superseded by the enactment of Civ. R. 19(A)(3), which rule was designed to prevent the division of a single cause of action between a subrogor and a subrogee, or an assignor and an assignee. As it is noted in the 1970 Rules Advisory Committee Staff Note to Rule 19(A):

“Rule 19(A) describes those persons who should be joined in the action, assuming that service of process upon an absent party may be effected and assuming that defendant has not waived join-der. Rule 19(A) contains several provisions not to be found in Federal Rule 19(a). Thus, Rule 19(A)(3) lists as a person who should be joined, an assignor, assignee, subrogor, or subrogee who has an interest in the subject of the action. In addition, Rule 19(A) provides that a failure to join a party who should be joined is waived if not timely asserted. Finally, the rule provides for transfer of an action to the court of common pleas (the action having been filed in a municipal or county court), if the joinder of a party who should be joined causes the action to exceed the monetary limit of the municipal court. The provisions in Rule 19 which cover these matters were added to the rule to eliminate some of the problems caused by the splitting out of independent rights of enforcement which flowed from one wrongful act. This splitting caused difficult problems of estoppel by judgment and res ad-judicata. See, Nationwide Ins. Co. v. Steigerwalt, 21 Ohio St.2d 87 [50 O.O.2d 200] (1970), the cases cited therein, and Staff Note to Rule 19(A) for examples of the problems caused by splitting out rights of enforcement. The operation of Rule 19(A) may best be illustrated by example.
“Defendant drives through a red light, injures plaintiff, and damages plaintiffs car. The car damage is $2,000. Before trial, plaintiffs own insurance company pays plaintiff $1,900 in accor[24]*24dance with plaintiff’s $100 deductible policy. Plaintiff then files suit against defendant for personal injury. Defendant knows that injury to person and property from one accident is one cause of action. Rush v. City of Maple Heights, 167 Ohio St. 221 [4 O.O.2d 279] (1958). Plaintiffs insurance company is a real party in interest (Rule 17(A)) because insurance company owns part of the cause of action by virtue of subrogation and therefore is a party who should be joined (Rule 19(A)(3)). Under Rule 12(B)(7) defendant serves a motion to dismiss for failure to join a party under Rule 19. Assuming service may be had, the court orders the joinder of the insurance company. In contrast, if defendant fails to raise the matter of joinder under Rule 12(B)(7) and Rule 19(A), he waives the possible joinder under Rule 12(G) and Rule 12(H). [But with respect to waiver under Rule 12(H), see Browne, The New Civil Rule 12(H) (1983), 54 Clev. B. J. 222.] If defendant waives the issue of joinder, he is subject to two suits, one by plaintiff and one by plaintiffs insurance company. The results may be inconsistent. See, Nationwide Ins. Co. v. Steigerwalt, 21 Ohio St.2d 87 [50 O.O.2d 200] (1970).” (Bracketed material added in part.)

From this passage it is quite clear that Civ. R. 19(A)(3) was designed to compel a subrogated auto insurer to bring its suit against the defendant as a co-plaintiff with its insured in the same action; a subrogated auto insurer is not an exception to Civ. R. 19(A)(3). For the correct application of Civ. R. 19(A)(3) to cases such as the one at bar, see Browne, Counterclaiming Against the Subrogated Insurer as Plaintiff (1985), 56 Clev. B. J. 134.

Accordingly, plaintiffs first ground for reconsideration is rejected.

Plaintiff next argues as follows:

“* * * Defendant did not avail himself of the defense of failure to join a necessary party at the first opportunity as the Supreme Court has consistently required, thus waiving his right to invoke that defense.”

This argument is rejected for three reasons:

First, since plaintiff did not comply with the requirements of Civ. R. 19(C) it is estopped from asserting waiver of the Civ. R. 12(B)(7) defense.

Second, the defense of failure to join a necessary party has not been irrevocably waived. As it is noted in Browne, The New Rule 12(H) (1983), 54 Clev. B. J. 222, at 224-225:

“How would this question [of waiver] be answered under the new rule? Here we have something of a mystery because the new rule makes absolutely no mention whatsoever of the defense of failure to join a necessary party. Thus, in a situation such as the one described in this example, there is no express rule of waiver applicable to the defense of failure to join a necessary party, although in the new Rule 12(H)(2) there is an express rule of waiver applicable to the defense of failure to join an indispensable party.
“But Civil Rule 12(B) states:
“ ‘Every defense, in law or fact, to a claim for relief in any pleading * * * shall be asserted in the responsive pleading thereto if one is required, except that the following defenses may at the option of the pleader be made by motion: * * * (7) failure to join a party under Rule 19 or Rule 19.1.’
“From this we may conclude that the defense of failure to join a necessary party is waived if it is not raised by motion or responsive pleading. The question then becomes: Can the waiver be cured, and if so, how?

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Cite This Page — Counsel Stack

Bluebook (online)
491 N.E.2d 407, 23 Ohio Misc. 2d 22, 23 Ohio B. 187, 1985 Ohio Misc. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-mutual-insurance-v-collins-ohmunictclevela-1985.