State Auto Mut. v. Bd. of Trustees F.O.E., Unpublished Decision (2-4-2003)

CourtOhio Court of Appeals
DecidedFebruary 4, 2003
DocketCase Nos. 01CA728, 01CA729.
StatusUnpublished

This text of State Auto Mut. v. Bd. of Trustees F.O.E., Unpublished Decision (2-4-2003) (State Auto Mut. v. Bd. of Trustees F.O.E., Unpublished Decision (2-4-2003)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
State Auto Mut. v. Bd. of Trustees F.O.E., Unpublished Decision (2-4-2003), (Ohio Ct. App. 2003).

Opinion

DECISION AND JUDGMENT ENTRY
{¶ 1} Defendant-Appellant Fraternal Order of Eagles Aerie 2232, and Appellants Patricia, William, and Josh Shelton filed separate appeals from the judgment of the Adams County Court of Common Pleas which found in favor of Plaintiff-Appellee State Auto Mutual Insurance Company on its request for declaratory judgment.

{¶ 2} We dismiss the appeal of Appellants Patricia, William, and Josh Shelton because they lack standing. And, we disagree with the argument presented in the appeal of Defendant-Appellant Fraternal Order of Eagles Aerie 2232, because we find the judgment to be supported by the manifest weight of the evidence.

{¶ 3} Accordingly, we affirm the judgment of the lower court.

I. Proceedings Below
{¶ 4} This is the second time we have addressed issues involving these parties on appeal. In order to provide context for the present appeal, we will briefly revisit the facts that gave rise to the first appeal. See Shelton v. Eagles FOE Aerie 2232 (Feb. 15, 2000), Adams App. No. 99CA678.

A. The Initial Action and Appeal
{¶ 5} In May 1997, Appellants Patricia and William Shelton visited the establishment owned and operated by Defendant-Appellant Fraternal Order of Eagles Aerie 2232 (FOE), in Adams County, Ohio.

{¶ 6} Upon exiting the establishment, Ms. Shelton slipped and injured herself on unlighted stairs which provided the primary ingress and egress to the building.

{¶ 7} Almost two years later, in May 1999, the Sheltons filed a negligence complaint against FOE. FOE never answered the Sheltons' complaint and the Sheltons filed a request for default judgment.

{¶ 8} In June 1999, the trial court granted the Sheltons' request for default judgment, but did so solely on the issue of liability; the trial court reserved the determination of damages for a later hearing.

{¶ 9} Shortly thereafter, FOE appealed the trial court's decision to this Court. Since the trial court had never ruled on the issue of damages, we declined to address the merits of the appeal because there was not a final appealable order.

{¶ 10} Accordingly, the case was remanded to the trial court to hold a hearing, and issue a determination, on damages.

{¶ 11} However, as will be explained below, this hearing would never come to pass, and, consequently, a final appealable order would never be issued in this case.

B. The Declaratory-judgment Action
{¶ 12} In October 1999, the insurer of FOE, Plaintiff-Appellee State Auto Mutual Insurance Company (State Auto), filed a separate complaint seeking declaratory judgment that it should be excused from indemnifying FOE, because FOE had failed to provide State Auto notice of the Sheltons' lawsuit, as set forth in the insurance policy.

{¶ 13} Meanwhile, the Sheltons agreed to stay the damages hearing of their lawsuit, pending the outcome of the declaratory-judgment action.

{¶ 14} In November 2001, the trial court issued its judgment entry and found in favor of State Auto.

{¶ 15} Subsequently, FOE and the Sheltons filed separate appeals from that decision to this Court. We will address these appeals separately.

II.Sheltons' Appeal
{¶ 16} In their brief to this Court, the Sheltons assigned the following errors for our review.

{¶ 17} First Assignment of Error: "The trial court erred to the prejudice of the appellants in finding that the actions of State Auto Mutual Insurance Co. in the handling of this claim were proper and prudent and without neglect; the trial court failed to properly apply the doctrine of waiver."

{¶ 18} Second Assignment of Error: "The trial court erred to the prejudice of the appellants in refusing to allow appellants to call plaintiff's agents, Howard J. Wilson and Frederick E. Miller, as on cross-examination; further the trial court erred by refusing to review and consider the deposition transcripts of Howard J. Wilson and Fredrick E. Miller."

{¶ 19} Third Assignment of Error: "The trial court erred to the prejudice of the appellants in finding that the insurance policy is clear and consistent in spite of its inaccuracy and ambiguities."

{¶ 20} Fourth Assignment of Error: "The trial court erred to the prejudice of the appellants by finding that the insurance company did not have notice of the suit based on the facts and circumstances as proved at trial."

{¶ 21} We decline to address this appeal on the basis that the Sheltons do not have standing to appeal from this judgment.

{¶ 22} A prospective appellant must be able to demonstrate a present interest in the litigation and that he or she is directly prejudiced by the judgment appealed from. See, e.g., Ohio ContractCarriers Assn., Inc. v. Pub. Util. Comm. (1942), 140 Ohio St. 160,42 N.E.2d 758; Fortner v. Thomas (1970), 22 Ohio St.2d 13, 257 N.E.2d 371.

{¶ 23} Here, the case below was a declaratory-judgment action wherein the trial court held that State Auto should be excused from indemnifying FOE because FOE failed to comply with the terms of its policy with State Auto. All issues in this action concerned the contractual relationship between State Auto and FOE. While the yet-to-be-determined damages arise from the case brought by the Sheltons against FOE, the resolution of the declaratory-judgment action brought by State Auto in no way concerns issues litigated in the action brought by the Sheltons, i.e., liability for the injury Ms. Shelton sustained at FOE's establishment. Consequently, the Sheltons have no right to appeal from the decision of this case.

{¶ 24} Moreover, it is well-settled that, "before an injured person can maintain an action against a tortfeasor's insurer, the injured person must first obtain a judgment against the insured." D.H. OvermyerTelecasting Co. v. American Home Assurance Co. (1986), 29 Ohio App.3d 31,502 N.E.2d 694; accord Chitlik v. Allstate Ins. Co. (1973),34 Ohio App.2d 193, 299 N.E.2d 295. Here, not only was the declaratory action not brought by the Sheltons, but there was never a final appealable order in the initial action, because the Sheltons agreed to stay the remanded damages hearing.

{¶ 25}

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Bluebook (online)
State Auto Mut. v. Bd. of Trustees F.O.E., Unpublished Decision (2-4-2003), Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-auto-mut-v-bd-of-trustees-foe-unpublished-decision-2-4-2003-ohioctapp-2003.