Northland Insurance v. Poulos, 06 Ma 160 (12-21-2007)

2007 Ohio 7208
CourtOhio Court of Appeals
DecidedDecember 21, 2007
DocketNo. 06 MA 160.
StatusPublished
Cited by5 cases

This text of 2007 Ohio 7208 (Northland Insurance v. Poulos, 06 Ma 160 (12-21-2007)) 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
Northland Insurance v. Poulos, 06 Ma 160 (12-21-2007), 2007 Ohio 7208 (Ohio Ct. App. 2007).

Opinion

OPINION *Page 2
{¶ 1} Plaintiff-appellant Northland Insurance Company appeals the decision of the Mahoning County Common Pleas Court which denied its motion to vacate a dismissal order entered more than three years before. Appellant presents two alternative issues. First, appellant contends that relief should have been granted under the catch-all provision of Civ.R. 60(B)(5). Then, appellant states that compliance with Civ.R. 60(B) is unnecessary because the court's dismissal order was not merely voidable, but was void. He notes that the trial court sua sponte dismissed the complaint without providing appellant with notice or an opportunity to be heard and urges that due process violations result in void orders. For the following reasons, the trial court was not required to grant relief under Civ.R. 60(B)(5) because the court could properly exercise its discretion to find that the motion was not filed within a reasonable time. Moreover, although the trial court's dismissal entry was arguably voidable, it is not subject to attack at any time as a void judgment. Accordingly, the judgment of the trial court is affirmed.

STATEMENT OF THE CASE
{¶ 2} On November 29, 2002, appellant Northland Insurance Company filed a complaint against its insureds, defendants-appellees Mark and Rosemarie Poulos dba JNP Transportation. This complaint resulted in case number 02CV3778. The complaint stated that on May 15, 1998, appellant, as appellees' insurer, paid appellees $21,000 for property damage due to an automobile accident that occurred on April 8, 1998. The complaint then stated that on June 12, 1998, the negligent driver's insurer paid appellees $21,744. The complaint concluded that appellees' insurance policy provided appellant the right to recover the damages from the negligent driver's insurer and obligated appellees to protect that right. Appellant thus asked for its contractual right to reimbursement. The complaint also noted that this action had been previously filed under case number 00CV578.

{¶ 3} On January 8, 2003, appellees filed their answer alleging that appellant did not make full payments under the policy and that appellant failed to negotiate in good faith. Appellees set forth various defenses such as failure to join all parties, *Page 3 ratification, waiver, estoppel and statute of limitations. The answer concluded with a prayer for dismissal of the complaint.

{¶ 4} On April 18, 2003, the trial court dismissed the complaint for "failure to refile within the one year statute of limitations."1 Appellant did not appeal from the April 18, 2003 dismissal entry.

{¶ 5} On August 4, 2006, appellant filed a motion to vacate the court's April 18, 2003 judgment of dismissal. Appellant first claimed entitlement to relief under the catch-all provision in Civ.R. 60(B)(5). Appellant alternatively asked the court to use its inherent power to vacate a void judgment alleging that the court had no authority to enter a sua sponte dismissal without providing appellant notice and an opportunity to be heard.

{¶ 6} Appellees filed a memorandum in opposition. They disclosed that appellant had filed yet a third action on the matter in case number 05CV1830. Appellees also noted that it was not until six months after appellees filed a motion for summary judgment in that third case based upon res judicata of the final order in 02CV3778 that appellant decided to seek vacation of the dismissal order in 02CV3778.2

{¶ 7} On September 15, 2006, the trial court denied appellant's motion to vacate the court's April 18, 2003 dismissal. Appellant filed timely notice of appeal on October 13, 2006. Appellant sets forth two alternative assignments of error on appeal.

ASSIGNMENT OF ERROR NUMBER ONE
{¶ 8} Appellant's first assignment of error contends:

{¶ 9} "THE TRIAL COURT ERRED IN DENYING APPELLANT'S MOTION TO VACATE PURSUANT TO CIVIL RULE 60(B)"

{¶ 10} Civ.R. 60(B) provides in pertinent part: *Page 4

{¶ 11} "On motion and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment, order or proceeding for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(B); (3) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation or other misconduct of an adverse party; (4) the judgment has been satisfied, released or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or (5) any other reason justifying relief from the judgment. The motion shall be made within a reasonable time, and for reasons (1), (2) and (3) not more than one year after the judgment, order or proceeding was entered or taken."

{¶ 12} There is a three-prong test for determining entitlement to relief under Civ.R. 60(B). The movant must provide operative facts demonstrating: (1) a meritorious claim or defense; (2) entitlement to relief under one of the five grounds listed in the rule; and (3) the timeliness of the motion. GTE Automatic Elec, Inc. v. ARC Indus.,Inc. (1976), 47 Ohio St.2d 146, 150-151. The decision to grant or deny relief is within the trial court's sound discretion, and thus, we can only reverse such decision if it was unreasonable, arbitrary or unconscionable. See Rose Chevrolet, Inc. v. Adams (1988),36 Ohio St.3d 17, 20; Griffey v. Rajan (1987), 33 Ohio St.3d 75, 77.

{¶ 13} As to the first prong, appellant's motion for relief stated that its insurance contract carries a fifteen-year statute of limitations. See R.C. 2306.06. Appellant noted that they did not invoke or need the savings statute. See R.C. 2305.19(A) (can refile within one year after the date the plaintiff's claim failed otherwise than upon the merits or within the period of the original applicable statute of limitations, whichever occurs later). In support, appellant's motion pointed to case law holding that the one-year provided in the savings statute is irrelevant if the statute of limitations has not expired.Triplett v. Beachwood Village, Inc., 158 Ohio App.3d 465,2004-Ohio-4905, ¶ 13. This statement of the law is correct.

{¶ 14} Yet, these arguments are more akin to appellate arguments or at most to GTE's second prong, entitlement to relief, than they are to the meritorious claim prong. *Page 5 That is, meritorious claim refers to whether the plaintiff has a good argument against the defendant in its case in chief.

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Cite This Page — Counsel Stack

Bluebook (online)
2007 Ohio 7208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northland-insurance-v-poulos-06-ma-160-12-21-2007-ohioctapp-2007.