Opinion ID: 779726
Heading Depth: 2
Heading Rank: 2

Heading: Volunteer Status

Text: 46 Contrary to the foregoing, the district court determined that United National was a volunteer and could not recoup defense costs under Ohio law. 47 United National argues it was not a volunteer because it defended SST at SST's request and reserved its right to recoupment. 48 SST argues United National was a volunteer, and therefore not entitled to reimbursement, because United National made a payment of money with knowledge of the facts and without legal or contractual obligation. 49 A party is a volunteer if in making a payment, he has no right or interest of his own to protect, and acts without obligation, moral or legal, and without being requested by anyone liable on the obligation. Aetna Cas. & Sur. Co. v. Buckeye Union Cas. Co., 157 Ohio St. 385, 392-93, 105 N.E.2d 568 (1952) (citing 50 Am. Jur. § 22); see also Farm Bureau Mut. Auto. Ins. Co. v. Buckeye Union Cas. Co., 147 Ohio St. 79, 88, 67 N.E.2d 906 (1946) (one who, with knowledge of the facts and without legal liability, makes a payment of money, thereby becomes a volunteer) (citations omitted). 50 The volunteer defense applies if the paying party has not been asked for the payment. SST requested the defense costs from United National by tendering the underlying litigation to United National for defense in December, 1996. See J.A. at 114. United National cannot be a volunteer because SST asked United National to pay the defense costs. 51 SST relies on several cases for the proposition that United National was a volunteer and therefore not entitled to reimbursement: Farm Bureau, 147 Ohio St. 79, 67 N.E.2d 906; Insurance Co. of N. Am. v. Travelers Ins. Co., 118 Ohio App.3d 302, 692 N.E.2d 1028 (1997); Amerisure Cos. v. Statesman Ins. Co., 77 Ohio App.3d 239, 601 N.E.2d 577 (1991); Fireman's Fund Indem. Co. v. Mutual Cas. Co., 95 Ohio App. 88, 117 N.E.2d 477 (1953). These cases are not, however, authority because they easily are distinguished from this case. 52 SST correctly states the rule espoused in these cases that equity will not aid a volunteer. Farm Bureau, 147 Ohio St. at 88, 67 N.E.2d 906 (citations omitted); Insurance Co. of N. Am., 118 Ohio App.3d at 317, 692 N.E.2d 1028 (citation omitted); Amerisure, 77 Ohio App.3d at 241, 601 N.E.2d 577 (citation omitted); Fireman's Fund, 95 Ohio App. at 91, 117 N.E.2d 477 (citation omitted). United National however seeks reimbursement under contract, not contribution pursuant to principles of equity. United National's main argument is that the parties entered into an implied in fact contract and United National is, therefore, entitled to reimbursement pursuant to that contract. Unlike the plaintiffs in SST's cited cases, United National does not seek to recover as a matter of equity and contribution. See, e.g., Farm Bureau, 147 Ohio St. at 86, 67 N.E.2d 906 ([T]he contention of the plaintiff [was] that in equity and good conscience the defendant should be compelled to pay its proportionate share of the money paid by the plaintiff in full settlement of the claims arising out of the collision.); Insurance Co. of N. Am., 118 Ohio App.3d at 314-15, 692 N.E.2d 1028 ([T]he secondary insurer possesses an equitable right to recover from the primary insurer, as well as a right to recover by way of subrogation under the policy.... INA contends that it was a secondary insurer to Travelers, the primary insurer, and therefore entitled to recover from Travelers.) (citation omitted); Amerisure, 77 Ohio App.3d at 240, 601 N.E.2d 577 (Plaintiff-appellant, Amerisure Companies (`Amerisure'), filed a complaint for contribution against defendants-appellees, Safeco Insurance Company (`Safeco'), Statesman Insurance Company and State Automobile Insurance Company (jointly `Statesman'), for costs incurred in settling two cases filed against an insured.); Fireman's Fund, 95 Ohio App. at 88, 117 N.E.2d 477 (This is an action by one insurance company to compel another insurance company to contribute a share of a sum of money paid by one in proportion to the ratio their policies bear to one another.). 53 United National, furthermore, reserved its right to reimbursement, unlike the plaintiffs in the cases cited by SST. See, e.g., Farm Bureau, 147 Ohio St. at 89-90, 67 N.E.2d 906; Insurance Co. of N. Am., 118 Ohio App.3d at 314, 692 N.E.2d 1028; Amerisure, 77 Ohio App.3d at 241, 601 N.E.2d 577; Fireman's Fund, 95 Ohio App. at 91, 117 N.E.2d 477. At least one court has given controlling weight to the insurer's failure to reserve its right. In Insurance Co. of North America, 118 Ohio App.3d at 314, 692 N.E.2d 1028 (emphasis added), the court stated, At the point at which [plaintiff] assumed the defense, it did so as a volunteer ( having failed to reserve its rights ), not as a result of [defendant's] wrongful refusal to defend. Implicit in this language is the court's recognition that, if the plaintiff had reserved its rights, the plaintiff would not have been a volunteer. In this case, United National could not be a volunteer because it specifically reserved its right to recoupment. 54 One of the policy issues underlying the volunteer doctrine would, moreover, not be furthered by finding United National was a volunteer. The volunteer defense prevents sellers with no market for their goods from forcing those goods on unsuspecting customers and then seeking restitution, thereby creating a right of payment where one did not otherwise exist. See Robert H. Jerry, II, The Insurer's Right to Reimbursement of Defense Costs, 42 ARIZ. L.REV. 13, 56-57 (2000) (The principal rationale for denying restitution in these circumstances devolves from the concern that a party might foist benefits upon unsuspecting people, using the law of restitution to create a right to payment for goods or services where none would otherwise exist.). This policy would not be promoted by holding United National as a volunteer, however, because United National did not force defense costs on SST — SST requested the defense costs. Having received what it wanted, SST properly can be required to pay for what it thereby gained. 55 The district court therefore erred in finding United National qualified as a volunteer because SST requested United National's payment, United National asserted a claim in contract and not in equity, and United National reserved its right to recoupment.