Rudolph v. Allstate Insurance Company

District Court, S.D. Ohio·Decided November 23, 2020·No. 2:18-cv-01743·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION : MATTHEW C. RUDOLPH, : : Case No. 2:18-cv-1743 Plaintiff, :

:

v. : Judge Sarah D. Morrison :

ALLSTATE INSURANCE COMPANY, : Chief Magistrate Preston Deavers : Defendant. : :

OPINION & ORDER

This matter is before the Court pursuant to several motions in limine. Each is described and addressed seriatim. I. Standard of Review

A motion in limine is a pre-trial mechanism by which the Court can give the parties advance notice of the evidence upon which they may or may not rely to prove their theories of the case at trial. Although the Federal Rules of Evidence do not explicitly authorize a court to rule on an evidentiary motion in limine, the United States Supreme Court has noted that the practice of ruling on such motions “has developed pursuant to the district court’s inherent authority to manage the course of trials.” Luce v. United States, 469 U.S. 38, 41 n.4 (1984). The motions therefore serve “to narrow the issues remaining for trial and to minimize disruptions at trial.” United States v. Brawner, 173 F.3d 966, 970 (6th Cir. 1999). To obtain the in limine exclusion of evidence, a party must prove that the evidence is clearly inadmissible on all potential grounds. Luce, 469 U.S. at 41 n.4. Any ruling on a motion in limine, however, is “no more than a preliminary, or advisory, opinion that falls entirely within the discretion of the district court, and the district court may change its ruling where sufficient facts have developed that

warrant the change.” United States v. Yannott, 42 F.3d 999, 1007 (6th Cir. 1994). The Court will therefore entertain objections on individual proffers of evidence as they arise at trial, even though the proffered evidence falls within the scope of a denied motion in limine. United States v. Kistner, No. 2:11-cr-00283, 2013 U.S. Dist. LEXIS 2129, at *4-5 (S.D. Ohio Jan. 7, 2013). II. Analysis

A. ECF No. 78: Rudolph’s Motion to Bar Allstate From Arguing in the Alternative That it Would Have Fired Rudolph Without Cause.

Allstate’s May 10, 2018 termination letter (“Letter”) provides Rudolph is being fired “for reasons that include but are not limited to [his] agency providing false information to [Allstate].” (ECF No. 78-1.) Because the Letter indicates Rudolph’s termination is for cause, this motion seeks to bar Allstate from arguing in the alternative at trial that it fired Rudolph without cause. (ECF No. 78.) Allstate responds that it will not present that alternative ground for Rudolph’s termination at trial. (ECF No. 96.) The motion is therefore MOOT. (ECF No. 78.) Because the motion asks only that Allstate be barred from arguing it did not need to have cause to terminate Rudolph, and that issue is moot, the Court need not examine Allstate’s contentions regarding the effect of this ruling on damage calculations. (ECF No. 96 at 3.) The parties are reminded that the pre-trial motion deadline has passed; as such, no more motions will be entertained. B. ECF No. 79: Rudolph’s Motion as to Burden of Proof.

This motion focuses on the breach element of Rudolph’s breach of contract claim. Rudolph, as the party seeking to enforce a contract, has the burden to prove, by a preponderance of the evidence, all of the elements for this claim. Cooper & Pachell v. Haslage (2001), 142 Ohio App. 3d 704, 707. The elements are the existence of a contract, performance by the plaintiff, breach by the defendant, and damage or loss to the plaintiff. Doner v. Snapp (1994), 98 Ohio App.3d 597, 600.

Even if a valid contract is proven to exist, the defendant may raise an affirmative defense; the burden of proving that affirmative defense is on the defendant. MatchMaker Internatl., Inc. v. Long (1995), 100 Ohio App.3d 406, 408. The Ohio Supreme Court defines affirmative defense as: a new matter which, assuming the complaint to be true, constitutes a defense to it. An affirmative defense is any defensive matter in the nature of a confession and avoidance. It admits that the plaintiff has a claim (the ‘confession’) but asserts some legal reason why the plaintiff cannot have any recovery on that claim (the ‘avoidance’).

State ex rel. Plain Dealer Publ’g Co. v. City of Cleveland, 1996-Ohio-379, 75 Ohio St. 3d 31, 33, 661 N.E.2d 187, 189-90 (internal quotations and citations omitted). Rudolph’s present motion argues that he need only establish that Allstate “issued the termination letter” to satisfy the breach element of his breach of contract claim. (ECF No. 79 at 2.) In support, Rudolph cites to Allstate’s Answer, wherein it relevantly raises two affirmative defenses. First, Allstate avers Rudolph’s breach count is “barred in whole or in part because [Rudolph] breached his EA Agreement.” (ECF No. 79 at 1)(quoting ECF No. 4 at 25.) Second, Allstate

pleads that the same claim is “barred in whole or in part because Allstate had a valid legal and business justification for it[s] conduct.” (ECF No. 79 at 2)(quoting ECF No. 4 at 26.) So, Rudolph seeks an order stating that Allstate has the burden of proving it did have cause to terminate him. (ECF No. 79.) Allstate disagrees, noting that Rudolph’s Complaint avers “Allstate committed a material breach of the Agreements by its May 10, 2018 notice of

termination because Rudolph’s conduct did not provide a ‘for cause’ basis to terminate the EA Agreements.” (ECF No. 97 citing ECF No. 1-1 ¶ 34.) As such, Allstate maintains that the burden of establishing cause is not an affirmative defense but rather an element of Rudolph’s case that he must prove. (ECF No. 97.) Allstate is correct for two reasons. First, Rudolph’s Complaint clearly alleges that it was the issuance of the Letter without cause, not just the issuance of the Letter, that constitutes the breach. Allstate may not now change the basis for its

breach claim after discovery has ended and dispositive motions have been decided. Second, the EA Agreement (“Agreement”) explicitly allows for termination with and without cause. Hence, merely issuing the Letter does not amount to a breach. Rather, because Allstate is proceeding under the Agreements’ cause provision, breach only occurs in this instance if Allstate lacked cause. This conclusion is buttressed by the Supreme Court of Ohio’s decision in Hamilton Ins. Servs. v. Nationwide Ins. Cos., 1999-Ohio-162, 86 Ohio St. 3d 270, 273. Therein, the governing agreement between an insurance agency and insurance

company stated it could be terminated “at any time with or without cause.” Id. After the insurance company terminated its relationship with the agency, the agency sued, arguing the agreement only allowed termination with cause. After the agency received favorable results at the trial and appellate level, the Supreme Court of Ohio reversed. The court found that the agency’s contention that the Agreement only allowed termination for cause was improper given the plain language of the

agreement allowing for termination without cause. Id. 274. Thus, the court held that the insurance company did not breach the contract simply by terminating the agreement with the agency. Id. Consequently, Rudolph’s Pretrial Motion as to the Burden of Proof asking the Court to hold that Allstate has the burden of proof on the cause issue is DENIED. (ECF No.

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