Opinion ID: 2973461
Heading Depth: 3
Heading Rank: 3

Heading: Definition of “Loss”

Text: 1 CPL’s attorney objected to the use of the August 8 date and stated that the actual date was sometime in late August, suggesting that the instruction contain the statement that “the loss was initiated in August of 1994.” The district judge suggested changing the wording to say “the Library first observed damage to its property in August, 1994,” which the court viewed as consistent with what CPL wanted. CPL’s attorney did object, saying “that kind of makes it worse, from our standpoint,” but he did not base his objections on the argument that the inclusion of the August date in the instruction was prejudicial or on the argument that the instruction improperly defined “loss.” Furthermore, CPL never objected to the definition of “loss” used by the district court in the instruction, nor did it provide an alternative definition or instruction. Finally, when the district court provided the precise language that would be used in the instruction, CPL made no objection. 10 We review jury instructions to determine whether they adequately informed the jury of the considerations it was to make and provided a legal basis for the jury’s decision. Donald v. Wilson, 847 F.2d 1191, 1199 (6th Cir. 1988). The instructions given must fairly and adequately cover the issues material to the jury’s deliberations. Jones v. Consol. Rail Corp., 800 F.2d 590, 592 (6th Cir. 1986). The term “loss” was not defined in the insurance policies. In ruling on the pre-trial motions, the district court originally found that the term “loss” was an ambiguous term and that the court must therefore adopt the interpretation that was most favorable to the insured; at the close of the evidence, however, the court found that the only possible meaning of “loss” was “damage observed by the insured.” CPL argues on appeal that the district court should have adopted the dictionary definition, which it claims is “the insured’s financial detriment by death or damage that the insurer becomes liable for.”2 CPL advocates this particular definition because its main argument throughout this appeal has been that it suffered no “loss” until the damage to its property exceeded the amount it would have to pay as a deductible. Alternatively, CPL argues that “loss” should mean the “amount to be paid according to the insurance contract.” While ambiguous terms are construed against the insurer because the insurer creates the policy forms and can make them more clear and precise if it chooses, see Copelin-Mohn, Inc. v. Buckeye Union Cas. Co., 20 N.E.2d 713, 714 (Ohio 1939), courts will attempt to discern the everyday meaning of the word or term as understood by the ordinary person and will construe it against the insurer only if there is no such everyday meaning. See Olmstead v. Lumbermens Mut. Ins. Co., 259 N.E.2d 123, 126 (Ohio 1970); Toms v. Hartford Fire Ins. Co. of Hartford, Conn., 63 2 Again, CPL did not offer this definition as an alternative instruction in the district court. 11 N.E.2d 909, 911 (Ohio 1945); City of Sharonsville v. Am. Employers Ins. Co., 818 N.E.2d 295, 303 (Ohio Ct. App. 2004). The definition of “loss” that the district court adopted was not plainly erroneous; in fact, this is probably the closest the court could come in finding a definition that comports with the ordinary meaning of the term. See Podnar v. Northeast Adjusting Servs., Inc., 739 N.E.2d 878, 881 (Ohio Ct. App. 2000), Olmstead, 259 N.E.2d at 126; Polk v. Landings of Walden Condo. Ass’n, 2005 WL 1862126,  (Ohio Ct. App. 2005); First Nat’l Bank of Dillonvale v. Progressive Cas. Ins. Co., 640 N.E.2d 1147, 1148 (Ohio Ct. App. 1993). CPL’s contortion of the alternative definition – offered for the first time on appeal – to support the idea that it had no duty to report any losses that amounted to less than its deductible is simply not tenable. Furthermore, the policy language at issue here requires CPL to give “immediate written notice to [Hartford] of any loss.” The ordinary meaning of “any loss” is certainly not “any loss above and beyond the amount an insured would have to pay as a deductible.” See Olmstead, 259 N.E.2d at 126.