Centennial Ins. Co. v. Liberty Mut. Ins. Co.
Decision Date | 20 January 1982 |
Docket Number | No. 81-60,81-60 |
Citation | 430 N.E.2d 925,69 Ohio St.2d 50 |
Parties | , 23 O.O.3d 88 CENTENNIAL INSURANCE CO., Appellant, v. LIBERTY MUTUAL INSURANCE CO., Appellee. |
Court | Ohio Supreme Court |
Syllabus by the Court
A court of appeals may not tax as a cost the premium paid by an insurance company for a supersedeas bond.
Appellee, Liberty Mutual Insurance Company ("Liberty"), successfully defended against the claim of appellant, Centennial Insurance Company ("Centennial"), for recovery, in the amount of $401,974, under an excess liability policy. See Centennial Ins. Co. v. Liberty Mut. Ins. Co. (1980), 62 Ohio St.2d 221, 404 N.E.2d 759. Liberty then filed a bill of costs in the Court of Appeals requesting that the court tax as costs the net premium for a supersedeas bond which Liberty secured during the appellate proceedings. Liberty ultimately asserted that the amount of the net premium was $13,985.10.
The Court of Appeals, in a split decision, granted this request.
The cause is now before this court pursuant to the allowance of a motion to certify the record.
Mansour, Gavin, Gerlack & Manos Co., L.P.A., and Richard J. McGraw, Cleveland, for appellant.
Baker & Hostetler, Albert J. Knopp, Paul S. Turner and Wendy J. Gibson, Cleveland, for appellee.
This cause presents one issue: whether a court of appeals may tax as a cost the premium paid for a supersedeas bond.
This court has consistently limited the categories of expenses which qualify as "costs." State, ex rel. Commrs. of Franklin County, v. Guilbert (1907), 77 Ohio St. 333, 338-339, 83 N.E. 80, quoted, in part, with approval in Benda v. Fana (1967), 10 Ohio St.2d 259, 262-263, 227 N.E.2d 197.
Today, we reaffirm the principle that "(t)he subject of costs is one entirely of statutory allowance and control." State, ex rel. Michaels, v. Morse (1956), 165 Ohio St. 599, 607, 138 N.E.2d 660, quoted with approval in Sorin v. Bd. of Edn. (1976), 46 Ohio St.2d 177, 179, 347 N.E.2d 527. It is undisputed that there is no statute which expressly permits a court to tax as a cost the expense of a premium paid for a supersedeas bond.
Liberty argues, however, that it was required to purchase the supersedeas bond or pay the judgment in order to eliminate the possibility of a public hearing to show cause for its failure to do either. 1 This hearing, Liberty argues, could be harmful to its business. Liberty's exposure, however, is comparable to that faced by an individual litigant who must provide a bond or risk attachment proceedings. Foreclosure or garnishment can be troublesome to one's personal and economic well-being. 2
Accordingly, the Court of Appeals erred in ordering that Centennial reimburse Liberty for the expense of a supersedeas bond.
The judgment of the Court of Appeals is reversed.
Judgment reversed.
1 R.C. 3903.03 provides, in pertinent part:
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