C. Pachella and R. Pachella, w/h v. Archdiocese of Philadelphia and St. Patrick's Parish
C. Pachella and R. Pachella, w/h v. Archdiocese of Philadelphia and St. Patrick's Parish - 1609 C.D. 2016
| Pa. Commw. Ct. | Aug 14, 2017Background
- Mrs. Pachella slipped and fell on the sidewalk outside St. Patrick’s Parish on Election Day 2005; the County had leased the premises as a polling place and the Archdiocese owned the sidewalk.
- Two written documents are at issue: a Lease Agreement (generally requires County to “maintain liability insurance”) and a 1989 License Agreement (expressly required the County to obtain $1,000,000 liability insurance naming both County and Archdiocese and to defend/indemnify the Archdiocese).
- The Archdiocese joined the County in the underlying tort action, asserting negligence and breach of contract (alleging the County agreed to obtain insurance and to defend/indemnify).
- The County moved for summary judgment invoking governmental immunity under the Pennsylvania Political Subdivision Tort Claims Act; the trial court granted summary judgment and denied the Archdiocese’s cross-motion.
- A Joint Stipulation established the Harco insurance policy existed (limits $1M/$3M excess to $250,000 SIR) and listed the County as a named insured; the Archdiocese later argued the policy did not name the Archdiocese as an insured, constituting breach of the License Agreement.
- The trial courts (and this Court) held the Archdiocese never sufficiently pled a discrete breach-of-contract claim based on failure to procure insurance naming the Archdiocese, and affirmed summary judgment for the County.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Archdiocese sufficiently pleaded a breach-of-contract claim that the County failed to obtain $1,000,000 liability insurance naming the Archdiocese as insured | Archdiocese: Joinder Complaint and later filings put County on notice that County breached its contractual duties, including failure to procure required insurance under the License Agreement | County: Pleadings never alleged the specific insurance-procurement breach or essential contractual terms; claim was not separately pled and thus waived | Held: Not sufficiently pled. The Joinder Complaint alleged general duties to obtain insurance and to defend/indemnify but did not state that County breached the specific insurance-procurement obligation. |
| Whether the Tort Claims Act bars the Archdiocese’s contractual claims for indemnity/defense and for procuring insurance | Archdiocese: Tort Claims Act should not bar a properly pled breach-of-contract claim to enforce a contractual insurance requirement | County: Tort Claims Act bars recovery for tort damages and a local agency cannot contractually waive governmental immunity; indemnity/defense for tort damages is unenforceable | Held: Trial court correctly treated indemnity/defense claim as barred by Tort Claims Act; Court need not decide whether Tort Claims Act bars an unpled insurance-procurement claim because that claim was not pleaded. |
| Whether the indemnification/defense provision in the License Agreement is enforceable to shift tort liability | Archdiocese: County promised to defend/indemnify and repudiation/anticipatory breach supports relief | County: Governmental immunity and public policy prohibit contracting away immunity; indemnification for tort claims is unenforceable | Held: Indemnification/defense claim cannot be used to impose tort liability on the County; unenforceable as a means to evade governmental immunity. |
| Whether the trial court erred procedurally by not addressing the insurance-procurement claim in opinions and by granting summary judgment | Archdiocese: Trial court overlooked the License Agreement requirement and the Joint Stipulation evidence showing County didn’t name Archdiocese on the Harco policy | County: Archdiocese’s inconsistent pleadings and failure to amend/identify the specific claim relieved County and court of notice; summary judgment appropriate | Held: No error. The court reasonably concluded the complaint/cross-motion did not adequately plead the insurance-procurement breach; inconsistent labeling of documents contributed to confusion. |
Key Cases Cited
- McShea v. City of Philadelphia, 995 A.2d 334 (Pa. 2010) (pleading must set out material facts and essential terms of contract claim)
- Hart v. Arnold, 884 A.2d 316 (Pa. Super. 2005) (elements of breach of contract claim)
- Sims v. Silver Springs-Martin Luther Sch., 625 A.2d 1297 (Pa. Cmwlth. 1993) (governmental immunity cannot be circumvented by contract to impose tort liability)
- City of Philadelphia v. Gray, 633 A.2d 1090 (Pa. 1993) (governmental immunity is absolute unless an exception applies)
- Matarazzo v. Millers Mut. Group, Inc., 927 A.2d 689 (Pa. Cmwlth. 2007) (plaintiff may not avoid governmental immunity by characterizing tort damages as contractual recovery)
