Harford Ins. Co. v. Lilly Cab Corp.
632 EDA 2016
| Pa. Super. Ct. | Nov 17, 2016Background
- Harford Insurance Company a/s/o Clean and Polish settled a dispute for $5,000 on December 17, 2014; Harford later filed a praecipe for writ of summons and a petition to enforce settlement on November 20, 2015.
- Trial court granted Harford’s petition on January 25, 2016, ordering IOA and Spectrum to pay $5,000 plus interest and attorneys’ fees.
- After the January 25 order, Pinelands Insurance Company (a named party/insurer) was placed in liquidation; an administrative order required matters involving Pinelands to be deferred.
- Appellants (Insurance Office of America and Spectrum) filed a timely notice of appeal and a motion for reconsideration; the trial court purported to grant reconsideration and vacate the January 25 order on March 17, 2016 — after the 30-day window and after appeal was filed.
- The Superior Court held that the trial court lacked jurisdiction to act after the appeal/30-day period, vacated the January 25 order, and remanded for the trial court to properly address appellants’ jurisdictional and deferred-status arguments and to enter an appropriate order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction / service of process | Harford: settlement enforcement was proper against appellants | IOA/Spectrum: never served; were not parties to original litigation; trial court lacked personal jurisdiction | The Superior Court vacated the enforcement order and remanded for the trial court to consider appellants’ jurisdictional arguments |
| Effect of Pinelands liquidation / deferred status | Harford: proceeded with enforcement despite liquidation | IOA/Spectrum: Administrative order required deferral of matters involving Pinelands; the writ and petition should have been deferred | Remanded for the trial court to consider the deferred-status issue given the liquidation order |
| Trial court’s authority to grant reconsideration after appeal / 30 days | Harford: original order should stand | IOA/Spectrum: trial court lost jurisdiction when appeal filed / after 30 days; any post-appeal vacatur is invalid | Trial court lacked jurisdiction to vacate the January 25 order after appeal/30 days; Superior Court vacated and remanded for proper disposition |
| Enforcement of settlement and sanctions | Harford: entitled to enforce settlement and recover fees/interest | IOA/Spectrum: challenged enforcement on process and deferral grounds | Superior Court did not affirm enforcement; remanded so trial court can address these defenses before any enforcement is reinstated |
Key Cases Cited
- PNC Bank, N.A. v. Unknown Heirs, 929 A.2d 219 (Pa. Super. 2007) (trial court’s post-entry modification power under statutory rule discussed)
- Stephens v. Messick, 799 A.2d 793 (Pa. Super. 2002) (Rule 1701(b)(3) reconciling trial-court reconsideration and appellate jurisdiction)
- Valley Forge Ctr. Assocs. v. Rib-It/K.P., Inc., 693 A.2d 242 (Pa. Super. 1997) (trial court must expressly grant reconsideration within appeal period to retain jurisdiction)
- In re Deed of Trust of McCargo, 652 A.2d 1330 (Pa. Super. 1994) (discusses effect of appeal and lapse of 30 days on trial-court power to act)