Stewart v. Bear's Tire

2019 Ohio 1832
CourtOhio Court of Appeals
DecidedMay 13, 2019
DocketCA2018-08-162
StatusPublished

This text of 2019 Ohio 1832 (Stewart v. Bear's Tire) 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
Stewart v. Bear's Tire, 2019 Ohio 1832 (Ohio Ct. App. 2019).

Opinion

[Cite as Stewart v. Bear's Tire, 2019-Ohio-1832.]

IN THE COURT OF APPEALS

TWELFTH APPELLATE DISTRICT OF OHIO

BUTLER COUNTY

LARRY R. STEWART, JR., : CASE NO. CA2018-08-162

Appellee, : OPINION 5/13/2019 : - vs - :

BEAR'S TIRE, :

Defendant, :

and :

SARAH D. MORRISON, : ADMINISTRATOR, OHIO BUREAU OF WORKERS' COMPENSATION, :

Appellant. :

CIVIL APPEAL FROM BUTLER COUNTY COURT OF COMMON PLEAS Case No. CV2017-02-0401

Honerlaw Law Office, LLC, Michael J. Honerlaw, 7770 West Chester Road, Suite 200, West Chester, Ohio 45069, for appellee

Dave Yost, Ohio Attorney General, Barbara L. Barber, Principal Assistant Attorney General, 1600 Carew Tower, 441 Vine Street, Cincinnati, Ohio 45202, for appellant

M. POWELL, J.

{¶ 1} Appellant, the Ohio Bureau of Workers' Compensation ("BWC"), appeals the Butler CA2018-08-162

decision of the Butler County Court of Common Pleas, which found appellee Larry R.

Stewart, Jr. entitled to participate in the workers' compensation fund. For the reasons

discussed below, this court affirms the trial court's decision.

{¶ 2} In 1979, Stewart founded the business that would eventually become Bear's

Tire, Inc. ("Bear's"). The business provided mobile commercial-vehicle tire changing

services in southwest Ohio. In 2009, Bear's had three employees: Stewart, Chuck King,

and John Dillon. Stewart was the company president and worked from his home office

managing the company's finances, billing, and customer relations. King and Dillon were

both commercial tire changers who worked in the field. King and Dillon drove Bear's service

trucks and responded to service calls. Contemporaneously, Stewart was also the sole

member of "Larry Stewart, LLC." Larry Stewart, LLC owned several multi-unit apartment

buildings in Cincinnati.

{¶ 3} On the morning of Wednesday, February 18, 2009, Stewart arranged for

Dillon to meet him at a Bob Evans restaurant. Stewart left his home and was driving

southbound on Interstate 75 towards the restaurant when a vehicle driving the opposite

direction crashed head-on into Stewart's vehicle.

{¶ 4} Stewart later submitted a claim for benefits to the BWC and asserted that he

was working for Bear's at the time of the accident. The BWC approved Stewart's claim for

a variety of medical conditions.

{¶ 5} Stewart sued the wrong-way driver. During his deposition in that case,

Stewart stated that he was driving to meet Dillon to take Dillon to work at the Larry Stewart,

LLC apartments because Bear's business had been slow. A BWC representative was

present at this deposition. Stewart's testimony apparently led BWC to conclude that Stewart

had defrauded the fund by applying for workers' compensation benefits because, while

-2- Butler CA2018-08-162

Bear's had workers' compensation coverage for its employees, Larry Stewart, LLC did not.1

{¶ 6} In 2014, BWC moved the Industrial Commission to vacate the approval of

Stewart's workers' compensation claim and declare an overpayment based on alleged civil

fraud. An Industrial Commission staff hearing officer agreed with the BWC, finding that the

accident was not related to Stewart's employment with Bear's and was only related to Larry

Stewart, LLC. The hearing officer concluded that Stewart's failure to inform the BWC that

he was driving to meet Dillon with the intention of taking Dillon to work at the Larry Stewart,

LLC apartments was civil fraud. Based upon this finding, the hearing officer declared an

overpayment for the workers' compensation benefits received by Stewart. Stewart

appealed to the Butler County Common Pleas Court.

{¶ 7} In August 2017, the parties held a bench trial limited to the determination of

whether Stewart's injuries were "received in the course of" and "arose out of" his Bear's

employment.2 Stewart testified as did Dillon, King, and other former Bear's employees.

The evidence revealed that Stewart was both an owner and a wage-earning employee of

Bear's. Stewart worked out of his home office mainly doing paperwork. Chuck King handled

dispatch and would also go on service calls as needed. John Dillon performed service calls.

{¶ 8} The company rented storage units located near Interstate 75 where the

company stored truck tires and other supplies. King or Dillon could stop by the storage unit

as necessary and pick up tires or other equipment for service calls.

{¶ 9} Bear's was generally busy in spring and summer and there was plenty of work

to ensure that Bear's employees worked a 40-hour week. However, during the winter

1. Evidence at trial indicated that Larry Stewart, LLC never had an employee prior to the date of Stewart's accident.

2. The trial was bifurcated; the first trial would determine if Stewart's injuries were received in the course of and arose from his Bear's employment and the second trial, if necessary, would determine the medical conditions causally related to the accident. -3- Butler CA2018-08-162

months business was slow because there were fewer tire blow-outs in the cold weather.

During these slow times, Stewart would occasionally direct his Bear's service employees,

like King and Dillon, to perform various tasks at the Larry Stewart, LLC apartments. These

tasks included shoveling snow, raking leaves, and turning over apartments for re-letting.

King, Dillon, and other former employees who testified all agreed that they were always

paid for their work at the apartments by Bear's and never received a paycheck from Larry

Stewart, LLC.

{¶ 10} On the morning of February 18, 2009, Bear's business was slow. Dillon was

on the road in his service truck headed to the storage unit when he received a call, either

from Stewart or King, directing him to meet Stewart at a Bob Evans restaurant. He

proceeded to the restaurant and waited in his truck for Stewart to arrive. Meanwhile,

Stewart left his home in his personal car, which had some maintenance tools in it for work

at the apartments.

{¶ 11} Dillon was unaware of the purpose for the meeting at Bob Evans but

understood he was going to meet both Stewart and King there. He anticipated that Stewart

would buy them breakfast. Stewart had previously taken him and King out to lunch before

and would ask them about their days.

{¶ 12} Stewart, in fact, intended to instruct Dillon to work at the apartments that day.

However, he hoped that he could "kill an hour" at breakfast during which there might be a

call for tire service. It was undisputed that tire service calls always received priority over

any work at the apartments. For instance, if a tire service call was received while an

employee was working at the apartments, the employee would cease working and respond

to the tire service call. Bear's had a reputation for its fast response to service calls.

{¶ 13} Stewart estimated it would take two to three years for a commercial tire

changer to become proficient and there were significant costs involved in training new

-4- Butler CA2018-08-162

employees for the job. Stewart also guaranteed those employees who worked for Bear's in

the winter that they would have full-time employment. Multiple former Bear's employees

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Maher v. Workers' Compensation Appeals Board
661 P.2d 1058 (California Supreme Court, 1983)
Bennett v. Admr., Ohio Bureau of Workers' Compensation
2012 Ohio 5639 (Ohio Supreme Court, 2012)
Eastley v. Volkman
2012 Ohio 2179 (Ohio Supreme Court, 2012)
Donaldson v. Northern Trading Co.
612 N.E.2d 754 (Ohio Court of Appeals, 1992)
Hornschemeier v. Buehrer
2017 Ohio 7021 (Ohio Court of Appeals, 2017)
Williams v. Parker Hannifin Corp.
936 N.E.2d 972 (Ohio Court of Appeals, 2010)
Lord v. Daugherty
423 N.E.2d 96 (Ohio Supreme Court, 1981)
Motorists Mutual Insurance v. Hamilton Township Trustees
502 N.E.2d 204 (Ohio Supreme Court, 1986)
Fisher v. Mayfield
551 N.E.2d 1271 (Ohio Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
2019 Ohio 1832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-bears-tire-ohioctapp-2019.