Shearer v. Motorists Mut. Ins. Co., 77-3
Decision Date | 04 January 1978 |
Docket Number | No. 77-3,77-3 |
Citation | 53 Ohio St.2d 1,371 N.E.2d 210,7 O.O.3d 1 |
Parties | , 7 O.O.3d 1 SHEARER et al., Appellees, v. MOTORISTS MUTUAL INSURANCE CO., Appellant. |
Court | Ohio Supreme Court |
Syllabus by the Court
The uninsured motorist coverage required to be offered by R.C. 3937.18 in all automobile or vehicle liability policies issued in the state of Ohio cannot be diluted or diminished by payments made to the insured pursuant to the medical payment provision of the same contract of insurance. A contract condition providing for a deduction for medical payments paid under another portion of the insurance contract is in derogation of the public policy and purpose underlying R.C. 3937.18.
In each of the cases consolidated for appeal herein the plaintiff-appellee was involved in a collision with an uninsured motorist. Each plaintiff made a claim against the defendant, Motorists Mutual Insurance Company, under plaintiff's policy which contained an uninsured motorist protection clause pursuant to R.C. 3937.18. 1
All insurance policies in question included coverage for medical expenses. The uninsured motorist protection agreement contained the following condition:
There was no provision for subrogation under coverage C. Plaintiff Barbara Shearer incurred $500 in medical expenses, plaintiff Leslie Horne incurred $1,000 in medical expenses, and plaintiff James Bright incurred $560.15 in medical expenses.
Pursuant to arbitration, awards were made to the respective plaintiffs. Only in the case of Bright was the maximum amount available under the uninsured motorist provision awarded. The defendant deducted from the uninsured motorist arbitration awards the amounts paid under the medical payments coverage.
Suits were thereafter instituted in the Court of Common Pleas of Cuyahoga County by the various plaintiffs. Although different trial procedures were utilized, each case was submitted on motion for summary judgment. The trial court in each instance granted plaintiff's motion for summary judgment.
On appeal, the Court of Appeals affirmed the trial court in each case, and stated as follows:
"We hold that where an insurer provides uninsured motorist protection, as required by R.C. 3937.18, it may not avoid indemnification of its insured under that coverage by including in the insurance contract a provision which authorizes deduction for medical payments made under another portion of the insurance contract."
The cause as consolidated is before this court pursuant to the allowance of appellant's motion to certify the record.
Komito, Nurenberg, Plevin, Jacobson, Heller & McCarthy Co., L.P.A., Thomas Mester and Harlan M. Gordon, Cleveland, for appellee Shearer.
Guth & Sirvaitis and Milton J. Guth, Cleveland, for appellee Horne.
Dworken & Bernstein Co., L.P.A., and Melvyn E. Resnick, Cleveland, for appellee Bright.
Weston, Hurd, Fallon, Paisley & Howley, John M. Baker and Barbara J. Smith, Cleveland, for appellant.
The appellant's sole proposition of law is as follows:
The basic question presented by this appeal and as presented to the Court of Common Pleas and Court of Appeals is whether the uninsured motorist coverage afforded in the policy issued by the appellant to the respective appellees-policyholders met the requirements of R.C. 3937.18 or whether the proposed setoff for medical services is in derogation of the public policy and purpose underlying R.C. 3937.18. Both coverages, uninsured motorist and medical payments, were optional and a separate premium was paid for each.
For the reasons hereinafter set forth we hold appellant's proposition of law not well taken.
Decisions in other jurisdictions relative to the deduction of medical payments from uninsured motorist awards have not been consistent or uniform. 2 Appellant urges the reversal of the appellate court's judgment herein, and contends that the insurance clause in question contained in a voluntary contract is not contrary to the public policy of the state, and that the public policy of the state disapproves double recovery.
Appellees, in essence, maintain that appellant's proposal permits a double premium but only a single recovery. Each views the suggestion of the other with disfavor and as being contrary to law.
Although a tortfeasor may not benefit from insurance carried by the injured party, in the instant cause the collateral source doctrine is not relevant. The insurer is not in the position of a tortfeasor, the parties being in the contractual relationship of insured and insurer. See Pryor v. Webber (1970), 23 Ohio St.2d 104, 263 N.E.2d 235; Koeper v. Farmers Ins. Co. (E.D.Mo.1972), 354 F.Supp. 93. Governing this contractual relation is the public policy of the state of Ohio as established by the uninsured motorist statute, R.C. 3937.18. In delineating this public policy Justice Herbert in Bartlett v. Nationwide Mutl. Ins. Co. (1973), 33 Ohio St.2d 50, stated the following at pages 52 and 53, 294 N.E.2d 665, at page 666:
Bartlett, supra, dealt with the deduction of workmen's compensation payments from an uninsured motorist award; here, we are concerned with deductions for medical payments. Giving a liberal construction to effectuate the intent of the General Assembly that coverage be afforded to persons injured through the acts of uninsured motorists (see Curran v. State Automobile Mutl. Ins. Co. (1971), 25 Ohio St.2d 33, 38, 266 N.E.2d 566), we hold that the rationale of this court in Bartlett, supra, supplies to the proposed deduction of medical payments, and the policyholder may recover, subject to his policy limits, to the same extent he would be entitled to recover from his tortfeasor.
Similar holdings may be found in other states. See, e.g., Bacchus v. Farmers Ins. Group Exchange (1970), 106 Ariz. 280, 282-283, 475 P.2d 264, 266-267, which states as follows:
See, also, Tulley v. State Farm Mut. Auto. Ins. Co. (S.D.W.Va.1972), 345 F.Supp. 1123; Tuggle v. Government Employees Ins. Co. (Fla.1968), 207 So.2d 674.
The uninsured motorist coverage required to be offered by R.C. 3937.18 in all automobile or vehicle liability policies issued in the state of Ohio cannot be diluted or diminished by payments made to the insured pursuant to the medical payment provision of the same contract of insurance. Accordingly, the judgment of the Court of Appeals is affirmed.
Judgment affirmed.
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