Marlette v. State Farm Mutual Automobile Insurance
57 A.3d 1224
Pa.2012Background
- Marlettes sued State Farm for uninsured motorist coverage after a collision with an uninsured driver; liability was uncontested.
- Jury awarded $550,000 to Mr. Marlette for bodily injuries and lost wages, and $150,000 to Mrs. Marlette for loss of consortium.
- Trial court molded the verdict to reflect State Farm's $250,000 UM policy limit, resulting in a molded verdict of $238,306.98 after credit for an earlier $16,693.02 payment.
- Marlette moved for delay damages under Pa.R.Civ.P. 238 on the $550,000 verdict; the court awarded delay damages based on the molded verdict.
- Superior Court remanded to recalculate delay damages based on the jury verdict; the court ultimately held delay damages must be based on the molded verdict, aligning with Allen v. Mellinger.
- This Court granted review to decide whether delay damages may be recovered on the full jury verdict or only on the legally-recoverable molded verdict under Rule 238.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Basis for delaying damages under Rule 238 in UM action | Marlette should recover on full verdict | Damages limited to molded amount per Allen and policy cap | Delay damages limited to molded verdict amount |
| Application of Allen to private parties vs. Commonwealth | Allen applies to private UM case; full verdict permissible | Allen distinguishes Commonwealth cap from private policy limits | Allen's cap-based approach extends to private parties in UM actions |
| Role of policy limits in delay damages calculation | Policy limits should not reduce jury verdict for delay damages | Delay damages must reflect policy-limited recoverable amount | Delay damages limited to legally-recoverable molded verdict under policy limits |
Key Cases Cited
- Allen v. Mellinger, 567 Pa. 1, 784 A.2d 762 (2001) (Pa. 2001) (delay damages for private parties limited to statutory cap; overruled Woods)
- Woods v. Dept. of Transportation, 531 Pa. 295, 612 A.2d 970 (1992) (Pa. 1992) (initial view that delay damages tied to verdict; later overruled by Allen)
- LaRue v. McGuire, 885 A.2d 549 (Pa.Super.2005) (Pa. Super. 2005) (slip-and-fall; delay damages based on stipulated damages cap)
- Laudenberger v. Port Authority of Allegheny County, 496 Pa. 52, 436 A.2d 147 (1981) (Pa. 1981) (Rule 238 promulgation proper despite impact on substantive rights)
- Thompson v. T.J. Whipple Co., 985 A.2d 221 (Pa.Super.2009) (Pa. Super. 2009) (cited for comparison in policy considerations)
- Anchorstar v. Mack Trucks, Inc., 533 Pa. 177, 620 A.2d 1120 (1993) (Pa. 1993) (delay damages not available for loss of consortium)