Wood v. Shepard

526 N.E.2d 1089, 38 Ohio St. 3d 86, 1988 Ohio LEXIS 246
CourtOhio Supreme Court
DecidedAugust 3, 1988
DocketNo. 87-265
StatusPublished
Cited by93 cases

This text of 526 N.E.2d 1089 (Wood v. Shepard) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Shepard, 526 N.E.2d 1089, 38 Ohio St. 3d 86, 1988 Ohio LEXIS 246 (Ohio 1988).

Opinions

Douglas, J.

The case before this court presents three issues. The first two involve the enforceability of setoff and anti-stacking provisions under the underinsured motorist coverage. For these provisions to be enforced, they must be clear, conspicuous and unambiguous. See Karabin v. State Automobile Mut. Ins. Co. (1984), 10 Ohio St. 3d 163, 10 OBR 497, 462 N.E. 2d 403. While reasonable minds might differ on whether the setoff and anti-stacking language in the Woods’ policy is clear and unambiguous,2 we never[88]*88theless affirm, without further comment, the judgments of the court of appeals and trial court on these questions.

The additional difficult issue before this court is whether the survivors of an insured decedent have one collective claim for wrongful death or whether each such survivor has a separate claim. We hold that each survivor has a separate claim and that all the separate claims may not be combined and limited to the single person limit of liability in the insured’s underinsured motorist provision.

Any discussion of whether survivors of an insured have separate claims against the decedent’s insurer for wrongful death must refer to R.C. 2125.01 and 2125.02, as well as R.C. 3937.18.

R.C. 2125.01 provides in pertinent' part: “When the death of a person is caused by wrongful act, neglect, or default which would have entitled the party injured to maintain an action and [89]*89recover damages if death had not ensued, the person who would have been liable if death had not ensued * * * shall be liable to an action for damages, notwithstanding the death of the person injured * *

R.C. 2125.02(A)(1) mandates that “[a]n action for wrongful death shall be brought in the name of the personal representative of the decedent for the exclusive benefit of the surviving spouse, the children, and the parents of the decedent, all of whom are rebuttably presumed to have suffered damages by reason of the wrongful death, and for the exclusive benefit of the other next of kin of the decedent.”

R.C. 3937.18 provides in relevant part:

“(A) No automobile liability or motor vehicle liability policy of insurance insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless both of the following are provided:
“(1) Uninsured motorist coverage, which shall be in an amount of coverage equivalent to the automobile liability or motor vehicle liability coverage and shall provide protection for bodily injury or death under provisions approved by the superintendent of insurance, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom;
“(2) Underinsured motorist coverage, which shall be in an amount of coverage equivalent to the automobile liability or motor vehicle liability coverage and shall provide protection for an insured against loss for bodily injury, sickness, or disease, including death, where the limits of coverage available for payment to the insured under all bodily injury liability bonds and insurance policies covering persons liable to the insured are less than the limits for the insured’s uninsured motorist coverage at the time of the accident. The limits of liability for an insurer providing underinsured motorist coverage shall be the limits of such coverage, less those amounts actually recovered under all applicable bodily injury liability bonds and insurance policies covering persons liable to the insured.
“(B) Coverages offered under division (A) of this section shall be written for the same limits of liability. No change shall be made in the limits of one of these coverages without an equivalent change in the limits of the other coverage.”

It is clear from the provisions of R.C. 2125.02, quoted supra, that in a wrongful death action, the surviving spouse and the children of the decedent have the right to recover damages suffered by reason of the wrongful death, even though the action must be brought in the name of the personal representative of the decedent. This court, through Justice Wright writing for the majority, has held that “[ajccording to the language of the uninsured motorist statute, this mandated coverage is * * for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom.’ R.C. 3937.18(A)(1). (Emphasis added.) Therefore, it is clear that it was the intention of the General Assembly in requiring insurance companies to pro[90]*90vide uninsured coverage that recovery be had for wrongful death.” In re Estate of Reeck (1986), 21 Ohio St. 3d 126, 128, 21 OBR 429, 431, 488 N.E. 2d 195, 197. Of course, this same reasoning also applies to underinsured motorist coverage.

In holding that the surviving spouse and children herein each has a separate claim for damages suffered by reason of the wrongful death, we find support in our recent decision in Reeck, supra. In Reeck, the surviving spouse, as executrix of the decedent’s estate, executed a settlement with the decedent’s insurer under the uninsured motorist provision wherein she would receive the proceeds of the settlement. This court held that the decedent’s daughter had a claim to the proceeds of the settlement pursuant to R.C. 2125.02. This claim was considered to be separate and distinct from the claim of the estate.

Our conclusion that the persons mentioned in R.C. 2125.02 have separate claims for damages emanates from the language of the statute itself. R.C. 2125.02 states that the surviving spouse, the children, and the parents of the decedent are “all * * * rebuttably presumed to have suffered damages by reason of the wrongful death * * Since each of these persons is presumed to have suffered damages resulting from the death, it logically follows that each such person has a compensable claim. Therefore, absent authorization allowing these separate claims to be treated as a single combined claim for purposes of underinsured motorist coverage, the persons entitled to recover under R.C. 2125.02 have separate and distinct claims.

Appellee argues that the policy language permits appellee to restrict recovery for the wrongful death of Gina Wood to the per-person limitation of $100,000 regardless of the number of statutory beneficiaries who are also covered persons under the policy. Appellants contend that each of the survivors has a separate claim for wrongful death and that each claim has a maximum coverage of $100,000 up to a total limitation of $300,000.

We find that the claims cannot be limited in the manner proposed by appellee because doing so would significantly frustrate the purposes of R.C. 3937.18. “Any contractual restriction on the coverage mandated by R.C. 3937.18 must comply with the purpose of this statute. * * *” Ady v. West American Ins. Co. (1982), 69 Ohio St. 2d 593, 23 O.O. 3d 495, 433 N.E. 2d 547, syllabus. As indicated supra, R.C. 3937.18 mandates coverage for wrongful death.

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Cite This Page — Counsel Stack

Bluebook (online)
526 N.E.2d 1089, 38 Ohio St. 3d 86, 1988 Ohio LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-shepard-ohio-1988.