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Harris v. Conrad6/17/2002
Defendant-appellant, the Ohio Bureau of Workers' Compensation ("BWC"), appeals a decision of the Warren County Court of Common Pleas, granting default judgment in favor of appellees, Benjamin Harris and the Meridian Insurance Group, Inc.
Harris was injured in a motor vehicle accident while acting in the course and scope of his employment and subsequently filed a claim with the BWC. BWC paid a total of $70,921.81 in medical bills in connection with the claim. Pursuant to R.C. 4123.931, BWC asserted a right of subrogation against any settlements Harris might make with his own insurer or the tortfeasor. BWC claimed it had a right to $70,921.81, the amount previously disbursed, plus an additional $100,000, which it alleged it would disburse in future benefits to Harris.
Harris did in fact make claims against the tortfeasor at fault in the accident, and against Meridian Insurance Group, his own insurer. Harris settled his claim against the tortfeasor for $100,000, the tortfeasor's automobile liability insurance policy limit. Pursuant to BWC's demand for partial satisfaction of its subrogation claim, the tortfeasor's automobile insurer paid $25,000 of the $100,000 settlement directly to BWC.
In June 2001, the Ohio Supreme Court declared R.C. 4123.931 unconstitutional in its entirety. See Holeton v. Crouse Cartage Co., 92 Ohio St.3d 115, 2001-Ohio-109.
Harris settled his claim with Meridian in September 2001. $145,921.82 was deposited into an escrow account to satisfy BWC's subrogation claim. BWC asserted that it was owed $45,921.82 in unreimbursed medical benefits and continued to claim that it would incur future benefit costs of $100,000 related to Harris's claim. It was agreed by the parties that the money would remain in the escrow account pending a judicial determination of BWC's right to subrogation.
Harris and Meridian Insurance filed a complaint for declaratory judgment and injunctive relief which named BWC as defendant. Appellees' complaint requested that the trial court grant the following relief "(1) [to enjoin BWC] from asserting any right of subrogation against Harris or Meridian in relation to [the claim]; (2) to refund to Harris the $25,000 BWC collected when Harris settled with the thirdparty tortfeasor, with interest at the statutory rate from the date BWC received said sum; and (3) to pay Plaintiff's attorney fees incurred in connection with this action."
BWC failed to respond to the complaint, and appellees filed a motion for default judgment. The motion, accompanied by a supporting affidavit, requested that the trial court order BWC to refund the sums withheld in connection with its subrogation claim, and a declaration that BWC had no right to the funds held in escrow. The trial court granted the motion. BWC was ordered to release the funds held in escrow and to refund to Harris the previously collected $25,000, with interest at the statutory rate. However, the trial court made no ruling with respect to the request for attorney fees contained in appellees' complaint. BWC appeals.
A threshold issue for this court to determine is whether the trial court's decision is a final, appealable order which vests this court with jurisdiction. Although not an issue raised by either party, this court must address, sua sponte, whether there is a final appealable order ripe for review. State ex rel. White v. Cuyahoga Metro. Hous. Auth., 79 Ohio St.3d 543, 544, 1997-Ohio-366.
Appellate courts have jurisdiction to review the final orders or judgments of lower courts within their appellate districts. Section 3(B)(2), Article IV, Ohio Constitution. If a lower court's order is not final, t
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