Appeals Court Cuts $14M Award In Agent’s Suit Against Nationwide

Dec. 18--YOUNGSTOWN -- A three-judge panel of the 7th District Court of Appeals has reduced substantially the monetary award granted to a former Nationwide insurance agent after a jury trial of her lawsuit against Nationwide Mutual Insurance Co. of Columbus.

In a unanimous decision released Thursday, the panel cut Christine Lucarell's total award to $2,375,708.

It also sent the case back to visiting Judge Thomas J. Pokorny for a new trial on Lucarell's fraud claim and on punitive damages for her breach-of-contract claims.

The jury in the 2012 trial of Lucarell's lawsuit against Nationwide awarded her $42.8 million, but Judge Pokorny reduced that to $14,167,010 after the trial.

Lucarell, whose Nationwide agency was in Boardman Plaza, had sued the insurance giant, alleging it breached her contract as a Nationwide agent.

She also alleged that Nationwide recruited her and about 400 other agents with the intention of terminating their agencies once they generated a profitable book of business for Nationwide.

"It was a major victory for myself and for all of the other agents out there," Lucarell said of Thursday's ruling.

Lucarell said, and her lawyer, Caryn M. Groedel, confirmed, that there are no statutory caps on fraud claims.

Groedel said Nationwide fraudulently induced her client into various agreements as a Nationwide agent.

"We got a new trial on the two most-valuable claims of all," Groedel said, referring to the fraud claim and punitive damages on the breach-of-contract claims.

"Nationwide is pleased that the court ruled in our favor on several issues and further reduced the verdict by a significant amount," said Eric Hardgrove, a Nationwide spokesman.

"We'll be evaluating the decision as we determine next steps," he said, declining to be specific because he said the litigation is ongoing.

"Our objective at Nationwide is to recruit agents and position them for success, not failure," he added.

In its 41-page ruling on Nationwide's appeal of the award to Lucarell, the panel of judges reduced the dollar amounts in certain award categories for various reasons, including compliance with a statutory cap on an award and limiting an award to the level it said was supported by the evidence.

The appeals court upheld Lucarell's breach-of-contract awards and referred to her as a Nationwide employee, but it reversed the constructive-discharge verdict award.

The constructive-discharge claim pertains to the allegation that Nationwide forced her to quit as an agent July 7, 2009.

"Lucarell's claim for constructive discharge is equivalent to a claim for being fired, which is not a cause of action absent some type of alleged discrimination or violation of public policy," the judges ruled, striking down the $741,322 constructive-discharge portion of her award.

"Ohio is an at-will employment state," the judges observed.

The appeals court panel consisted of Judges Gene Donofrio, Cheryl Waite and Carol Ann Robb.

Lucarell, of Boardman, is running as a Republican challenger next year against Democratic Mahoning County Treasurer Daniel R. Yemma.

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