Ohio Casualty Ins. Co. v. Hanna, 07ca0016-M (6-30-2008)

2008 Ohio 3203
CourtOhio Court of Appeals
DecidedJune 30, 2008
DocketNos. 07CA0016-M, 07CA0017-M.
StatusUnpublished
Cited by1 cases

This text of 2008 Ohio 3203 (Ohio Casualty Ins. Co. v. Hanna, 07ca0016-M (6-30-2008)) 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
Ohio Casualty Ins. Co. v. Hanna, 07ca0016-M (6-30-2008), 2008 Ohio 3203 (Ohio Ct. App. 2008).

Opinion

DECISION AND JOURNAL ENTRY
INTRODUCTION
{¶ 1} While finishing framing and installing the roof rafters of Joseph and Vanessa Hanna's house, Quality Home Construction Inc. caused the frame to go out of plumb and out of square, leading to problems with the roof, doors, drywall, wood trim, and windows. A magistrate determined that Ohio Casualty Insurance Co. had to indemnify Quality for the damage to the drywall, wood trim, doors, and roof shingles, but not for damage to the frame, roof rafters, and windows. Ohio Casualty and the Hannas filed objections, but the trial court overruled them. This Court reverses because the responsibility to indemnify Quality must be apportioned between Ohio Casualty and Motorists Mutual Insurance Co. Those companies must also indemnify Quality for the damage to the Hannas' casement windows. *Page 2

FACTS
{¶ 2} The material facts of this case are not disputed. Mr. Hanna began constructing a house in Westfield Township in the summer of 2002. He hired Amish workers to frame the house, but a tornado leveled it a few months later. The Amish workers began framing the house again, but had to stop when the weather turned cold. Mr. Hanna hired Quality to complete the job. By the end of 2002, it had completed the interior and exterior framing of the house, had sheathed the house with plywood, had installed the roof rafters, and had installed the Hannas' prefabricated casement windows.

{¶ 3} The Hannas offered expert testimony that, at the time Quality took over construction, the house's walls were square and plumb. As it finished framing the house and installing the roof rafters, however, it prematurely removed some of the wall supports, causing the exterior walls to lean outward and become out of plumb and out of square. The out-of-plumb and out-of-square walls created several problems. At first, the only noticeable problem was a bow in the roof line. Mr. Hanna's drywall hanger later noticed that the entire house was crooked.

{¶ 4} Because of the crooked framing, the drywall is cracked in places, visibly crooked in the corners, and does not meet the ceiling properly. The roof is noticeably bowed. Although Mr. Hanna hired a skilled trim carpenter to install custom doors, they do not operate or seal properly. Because the windows were installed out of plumb, they do not open and close correctly and their gears are experiencing premature wear. The windows' manufacturer voided their warranty because they were installed out of plumb.

{¶ 5} When the Hannas sued Quality, Ohio Casualty filed a separate action, seeking a declaration that it does not have to indemnify Quality for its poor workmanship. Ohio Casualty *Page 3 had insured Quality during the time it worked on the Hannas' house. Motorists Mutual intervened in the action because it insured Quality when the doors, drywall, wood trim, and roof shingles were installed. The magistrate determined that, because all the work performed by Quality was completed while Ohio Casualty insured it, Ohio Casualty's policy applied. He also determined that any property damage directly caused by Quality's poor workmanship is excluded from coverage. Property damage that was collateral or consequential, however, is covered by the policy. Applying that rule to the facts of the case, he determined that Quality's framing work, roof rafter installation, and window installations were excluded from coverage. Problems with the house's drywall, wood trim, doors, and roof shingles were not excluded. The parties filed objections, but the trial court overruled them, affirming the magistrate's decision. The Hannas have appealed, assigning one error. Ohio Casualty has cross-appealed, assigning four errors.

STANDARD OF REVIEW
{¶ 6} "The interpretation of an insurance contract involves a question of law." Leber v. Smith, 70 Ohio St. 3d 548, 553 (1994). Its construction "is reviewed de novo on appeal, without any deference afforded to the result that was reached below." Malaski v. FraminghamLane Condo. Ass'n, 9th Dist. No. 20805, 2002-Ohio-2324, at ¶ 8. "Where provisions of a contract of insurance are reasonably susceptible of more than one interpretation, they will be construed strictly against the insurer and liberally in favor of the insured." King v. Nationwide Ins.Co., 35 Ohio St. 3d 208, syllabus (1988). "When the language of an insurance policy has a plain and ordinary meaning, it is unnecessary and impermissible for [a] court to resort to construction of that language."Karabin v. State Auto. Mut. Ins. Co., 10 Ohio St. 3d 163, 166-67 (1984). "A court must give undefined words used in an insurance contract their plain and ordinary meaning." Nationwide Mut. Fire Ins. Co. v. GumanBros. Farm, 73 Ohio St. 3d 107, 108 (1995). *Page 4

COMMERCIAL GENERAL LIABILITY POLICY
{¶ 7} Ohio Casualty's policy provides that it "will pay those sums that the insured becomes legally obligated to pay as damages because of `bodily injury' or `property damage' to which this insurance applies." The insurance applies "only if: (1) [t]he `bodily injury' or `property damage' is caused by an `occurrence' that takes place in the `coverage territory'; and (2) [t]he `bodily injury' or `property damage' occurs during the policy period." The policy defines "[p]roperty damage" as "[p]hysical injury to tangible property, including all resulting loss of use of that property" or "[l]oss of use of tangible property that is not physically injured." The policy defines "occurrence" as "an accident, including continuous or repeated exposure to substantially the same general harmful conditions."

{¶ 8} The policy also contains two relevant exclusions. There is no coverage for property damage to "[t]hat particular part of any property that must be restored, repaired, or replaced because `your work' was incorrectly performed on it." There is also no coverage for property damage "to `your work' arising out of it or any part of it and included in the `products-completed operations hazard.'" The policy defines "your work" as "[w]ork or operations performed by you or on your behalf," and "[m]aterials, parts, or equipment furnished in connection with such work or operations." It defines "products-completed operations hazard" in part as "all `bodily injury' and `property damage' occurring away from premises you own or rent and arising out of . . . `your work' except . . . [w]ork that has not yet been completed or abandoned."

PROPERTY DAMAGE
{¶ 9} Because Ohio Casualty has argued that Quality has no right to indemnification, this Court will consider its arguments first. Ohio Casualty's first assignment of error is that the *Page 5 trial court incorrectly concluded that the intentional alteration of fixtures constituted "property damage." It has argued that the house's drywall is not "damaged," but is merely cosmetically unattractive because it was knowingly and intentionally installed over a crooked frame.

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Bluebook (online)
2008 Ohio 3203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-casualty-ins-co-v-hanna-07ca0016-m-6-30-2008-ohioctapp-2008.