Allen v. MellingerAllen v. Mellinger
Lead Opinion
In this аppeal, we re-examine the interplay between the procedural rule governing delay damages in civil actions (Pa. R.C.P.238) and the statutory provisions governing sovereign immunity (42 Pa.C.S. § 8521 et seq.) and joint and several liability (42 Pa.C.S. § 7102(b)).
On May 31,1989, Appellant Elizabeth A. Allen commenced a personal injury action against Appellees Kenneth E. Mellinger and. the Commonwealth of Pennsylvania,
The trial court denied the Deрartment’s motions for new trial and judgment notwithstanding the verdict, granted the Department’s motion to mold the general liability verdict to conform to the statutory cap of $250,000 imposed by 42 Pa.C.S. § 8528(b), and granted Allen’s motion for delay damages on a limited basis. The limitation imposed by the trial court resulted in assessment of delay damages against the Department calculated only upon its forty-percent share of the verdict, rather than on the entire $2.9 million verdict, yielding a delay damages award of $501,654.11. In imposing this limitation, the trial court acknowledged this Court’s holding in Woods v. Commonwealth, Dep’t of Transp.,
On appeal, the Commonwealth Court affirmed, also relying upon the rationale of
simply stands for the proposition that an award of delay damages against the Commonwealth be calculated on the entire verdict against the Commonwealth party and not just the amount of the statutory cap. Woods does not stand for the proposition that the Commonwealth shall be liable for the entire amount of delay damages against all defendants.
Memorandum Opinion at 7-8 (emphasis in original). The Commonwealth Court did not refer to the settlement agreement betweеn Allen and Mellinger in its analysis.
Allen argues that the Commonwealth Court’s holding in Royer Garden is inconsistent with the Superior Court’s holding in cases such as Reilly v. Southeastern Pennsylvania Transportation Authority,
In Tindal, Superior Court wrote:
Liability normally follows verdict. Therefore, appellants are jointly and severally responsible for the entire amount of delay damages because they are jointly and severally liable for the entire amount of the verdict. This result logically obtains from the new Rule [238] which, while labeled “delay damages,” is really in the nature of prejudgment interest to be added to compensatory damages awarded at verdict. Moreover, the express language of Rule 238 requires that damages for delay “become part of the verdict, decision or award.”
Tindal,
Royer Garden established that in accordance with the language of Rule 238, delay damages should be calculated for each defendant based on the compensatory damages assessed against that defendant according to the jury’s apportionment of negligence. Rule 238(a)(1) provides, in relevant part:
At the request of the plaintiff in a civil action seeking monetary relief for bodily injury, death or property damage, damages for delay shall be added to the amount of compensatory damages awarded against each defendant or additional defendant found to be liable to the plaintiff in the verdict of a jury ... and shall become part of the verdict, decision or award.
The Royer Garden opinion emphasized the phrase “damages for delay shall be added to the amоunt of compensatory damages awarded against each defendant or additional defendant.” See Royer Garden,
To this extent, Royer Garden does not conflict with Reilly, Tindal, et al. Apportionment of liability for damages among defendants in this fashion, whether compensatory damages or delay damages, does not in and of itself conflict with application of the rule of joint and several liability. Likewise, allowing a plaintiff to recover from any defendant more than that defendant’s pro rata share of damages, whether compensatory damages or delay damages,
It appears, however, that the Royer Garden opinion went beyond simply approving the calculation of each defendant’s share of liability for delay damages in accordance with the jury’s allocation of fault. The court dismissed the plaintiffs’ argument on appeal that the trial court’s apportionment of damages prevented them from recovering the full amount of damages from any defendant under the principle of joint and several liability. See
Thus, we hold that as a general precept Rule 238 damages awarded against all defendants in a negligence action are properly aggregated with the verdict such that the defendants are jointly and severally liable for the aggregated delay damages. The fact that delay damages under Rule 238 may be calculated in the first instance on an individualized basis before being aggregated with the general liability verdict does not alter thе analysis.
This, however, does not complete the inquiry in this case. The rule of joint and several liability is stated in 42 Pa.C.S. § 7102(b) as follows:
Where recovery is allowed against more than one defendant, each defendant shall be liable for that proportion of the total dollar amount awarded as damages in the ratio of the amount of his causal negligence to the amount of causal negligence attributed to all defendants against whom recovery is allowed. The plaintiff may recover the full amount of the allowed recovery from any defendant against whom the plaintiff is not barred from recovery. Any defendant who is so compelled to pay more than his percentage share may seek contribution.
(Emphasis added.) Pursuant to the Sovereign Immunity Act, 42 Pa.C.S. § 8521 et seq., sovereign immunity is “a bar to an action against Commonwealth parties” that has been waived in specified circumstances “to the extent set forth in [the] sub-chapter and within the limits set forth in section 8528 (relating to limitations on damages).” 42 Pa.C.S. § 8522(a) (emphasis added). Since with respect to amounts in excess of the statutory cap, the Commonwealth party is a defendant “against whom the plaintiff is barred from recovery,” under the terms of 42 Pa.C.S. § 7102(b) the plaintiff is not permitted to “recover the full amount of the allowed recovery from” the Commonwealth party. In other words, the Sovereign Immunity Act serves to limit the Commonwealth party’s exposure to joint and several liability. Where the limitation on compensatory damages has been reached, the plaintiff can recover from the Commonwealth party only those delay damages attributable to the Commonwealth.
This in turn implicates the parties’ discussion of the manner in which delay damages against a Commonwealth party are to be calculated, in particular the Department’s argument that we should overrule Woods. In that case, where the Department
The first part of the analysis focused on the language of Rule 238(a)(1). After setting out the text in its entirety, the Court stated: “Rule 238 provides that delay damages shall be added to the ‘verdict of the jury, ... the decision of the court in a nonjury trial or ... the award of arbitrators appointed under section 7361 of the Judicial Code, 42 Pa.C.S. § 7361, and shall become part of the verdict, decision or award.’ ” Woods,
Not only would there be no incentive for a Commonwealth agency to seek a settlement of a major suit, there would be a distinct disincentive since the delay damages would be based upon a predictable constant and there would be no unknown which would motivate the Commonwealth to discuss settlement. The same disincentive would encourage the prolonging of litigation as well as the filing of appeals. Additionally, the plaintiff who statutorily has already been denied the full compensation due him or her would once again be deprived of money to which he or she would be otherwise entitled, with only a minimum sanction being imposed on the defendant.
Id.
Given the opportunity presented by this case to reexamine the holding in Woods, we are compelled to acknowledge that this reasoning was fundamentally flawed and the decision must be overruled. First, the analysis of the language of the Rule proceeded from a misleading paraphrase of the text. The actual language of the rule states “damages for delay shall be added to the amount of compensatory damages awarded against each defendant or additional defendant found liable to the plaintiff in the verdict of a jury, in the decision of the court ... or in the award of arbitrators ... and shall become part of the verdict, decision or award.” (Emphasis added.) The Woods opinion, however, ignored the emphasized language and declared that the Rule “provides that delay damages shall be added to the ‘verdict of the jury ... decision of the court ... or award of arbitrators....’”
Further, in its treatment of the rule’s purpose of encouraging settlements, the Woods rationale suffers from a failure to give any consideration to other valid interests. When this Court first rejected the argument that Rule 238 exceeded our rulemaking authority because it enlarged the substantive rights of plaintiffs, Laudenberger v. Port Authority of Allegheny County,
Unfortunately, when presented with yet another set of facts in Woods, the Court failed to recognize the need to view the matter from another perspective, as it had in Craig v. Magee. Instеad of recognizing that the Sovereign Immunity Act creates a unique relationship of rights and duties between plaintiffs and Commonwealth parties, and then analyzing whether the application of Rule 238 in that setting still has only a collateral effect on substantive rights and duties, the Court simply treated the Commonwealth party the same as any other party. The Court reasoned that if delay damages were computed on the statutory cap “there would then be no unknown which would motivate the Commonwealth to discuss settlement,” Woods,
For the foregoing reasons, we overrule Woods v. Commonwealth, Dep’t of Transp.,
Notes
. Specifically, Allen alleged that, on December 13, 1987, her vehicle was struck by Mellinger’s on Route 501 in Lebanon County as she was turning across traffic into the parking lot of a shopping establishment. Allen alleged that Mellinger was traveling at an excessive rate of speed and that the Department had recently painted lines on the highway which directed her to turn at an unsafe location.
. The pertinent term of the agreement is as follows:
This agreement is not intended to be a pro rata or joint tortfeasor release of Mr. Mellinger’s liability for cither the verdict or delay damages, nor is it intended to affect in any way his liability to PennDot for contribution on either the amount of the verdict or delay damages, other than: (1) to reduce, by the amount of the $300,000 payment referred to above, the amount of the verdict for which Mellinger and PennDot are jointly and severally liable; and (2) to end, as of the date the payment of $300,000 is received by Ms. Allen’s attorney, the period for which delay damages may be sought on the amount of that payment ($300,000).
Concurrence Opinion
concurring.
I join the majority in holding that delay damages are properly aggregated with а verdict and validly within the scope of the liability borne jointly and severally by joint tortfeasors. I also join in overruling Woods v. Commonwealth, Dep’t of Transp.,
. This approach would seem particularly apрropriate, since Article V, Section 10(c) speaks explicitly in terms of effect and not purpose in providing that the Court’s rules shall "neither abridge, enlarge, nor modify the substantive rights of any litigant.” Pa. Const., art. V, § 10(c). Thus it can be posited that the framers of the Constitution limited the type of power afforded to the narrow area of true procedural rulemaking. Cf. Monessen Southwestern Ry. Co. v. Morgan,
Concurrence Opinion
concurring and dissenting:
I agree with the majority that the amount in Pa.R.Civ.P. 238 delay damages that a defendant owes a plaintiff in a negligence action is to be calculated in accordance with the fаctfinder’s allocation of fault and that Rule 238 damages awarded against all defendants are to be aggregated with the verdict. For all of the reasons that follow, however, I disagree with and respectfully dissent from the remainder of the majority opinion.
The majority resolves several questions relating to the collection or calculation of delay damages involving multiple defendants, who include a Commonwealth party. The majority does so by applying a statutory provision to each. First, the majority holds that under § 7102(b) of the Comparative Negligence Act, 42 Pa.C.S. § 7102 et seq., defendants are jointly and severally liable for the plaintiff’s aggregated delay damages award. Next, the majority holds that the interplay between § 7102(b) and § 8528 of the Sovereign Immunity Act, 42 Pa.C.S. § 8521 et seq., restricts the Commonwealth’s joint and several liability for dеlay damages to the Act’s $250,000 compensatory damages cap. And last, overruling this court’s decision in Woods v. Commonwealth, Dept. of Transp.,
My fundamental disagreement with the majority’s analysis of all of these issues centers on its resort to statutes to decide matters of judicial procedure.
Article V, § 10(c) of the Pennsylvania Constitution empowers this court to “prescribe general rules governing practice, procedure, and the conduct of all courts... if such rules are consistent with this Constitution and neither abridge, enlarge, nor modify the substantive rights of any litigant.... ” Pa. Const. art. V, § 10(c). We have held that this power is exclusive. In re 42 Pa.C.S. § 1703,
We have also held that delay damages are procedural, and that Pa.R.Civ.P. 238 represents a legitimate exercise of our Article V, § 10(c) rule-making authority. Laudenberger v. Port Auth. of Allegheny Cty.,
Thus, I believe that questions about delay damages are for this court alone to determine, and that Rule 238, not legislative authority, is dispositive. While I agree that we should consider relevant legislation when faced with issues relating to the assessment and recovery of delay damages, see Pa. R.Civ.P. 127(c)(5), I also believe that this court’s- intent in promulgating the Rule must be paramount in any decision we reach. Pa.R.Civ.P. 127(a).
In the past,, wé have zealously guarded our constitutionally-mandated rule-making power. For example, in In re 12 Pa.C.S. § 1703, without waiting for an adversarial challenge, we declared an express mandate
In my opinion, the first issue before us concerns what responsibility, if any, Rule 238 imposes upon a defendant to pay the delay damages assessed against his co-defendants. I would pose the issue as follows: Where delay damages are assessed under Rule 238 against multiple defendants, is a plaintiff allowed to recover the entire delay damages award from any one of those defendants or is a plaintiffs recovery from any one defendant limited to the delay damages attributable to him?
Pa.R.Civ.P. 127 governs the construction of our Rules of Civil Procedure. Rule 127 states:
Rule 127. Construction of Rules. Intent of Supreme Court Controls
(a) The object of all interpretation and construction of rules is to ascertain and effectuate the intention of the Supreme Court.
(b) Every rule shall be construed, if possible, to give effect to all its provisions. When the words of a rule are clear and free from ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit.
(c) When the words of a rule are not explicit, the intention of the Supreme Court may be ascertained by considering, among other matters (1) the occasion and necessity for the rule; (2) the circumstances under which it was promulgated; (3) the mischief to be remedied; (4) the object to be attained; (5) the prior practice, if any, including other rules and Acts of Assembly upon the same or similar subjects; (6) the consequences of a particular interpretation; (7) the contemporaneous history of the rule; and (8) the practice followed under the rule.
Pa.R.Civ.P. 127.
Turning first, as Rule 127 requires, to the language of Rule 238, the latter provides in pertinent part:
Rule 238. Damages For Delay In An Action For Bodily Injury, Death Or Property Damage
(a)(1) At the request of the plaintiff in a civil action seeking monetary relief for bodily injury, death or property damage, damages for delay shall be added to the amount of compensatory damages awаrded against each defendant or additional defendant found to be liable to the plaintiff in the verdict of a jury, in the decision of the court in a nonjury trial or in the award of arbitrators .... and shallbecome part of the verdict, decision or award.
(2) Damages for delay shall be awarded for the period of time
* * *
(ii) in an action commenced on or after August 1, 1989, from a date one year after the date original process was first served in the action up to the date of the award, verdict or decision.
ü; * *
(b) The period of time for which damages for delay shall be calculated under subdivision (a)(2) shall exclude the period of time, if any,
(1) after which the defendant has made a written offer of
(i) settlement in a specified sum with prompt cash payment to the plaintiff, or
(ii) a structured settlement underwritten by a financially responsible entity,
and continued that offer for at least ninety days or until commencement of triаl, whichever first occurs, which offer was not accepted and the plaintiff did not recover by award, verdict or decision, exclusive of damages for delay, more than 125 percent of either the specified sum of the actual cost of the structured settlement plus any cash payment to the plaintiff; or
(2) during which the plaintiff caused delay of the trial. Pa.R.Civ.P. 238.2
As written, Rule 238 does not explicitly answer whether a plaintiff may call upon any one of multiple defendants against whom delay damages are assessed to satisfy all of the delay damages he is awarded. In fact, I find the Rule ambiguous, as to this question. On the one hand, by requiring that delay damages become part of the verdict, decision or award, it vrould appear that the drafters intended that all defendants found liable to the plaintiff on the undеrlying claim bear responsibility for the plaintiffs full delay damages recovery. On the other, the drafters made it clear that a defendant can avoid the imposition of delay damages by making a timely and reasonable settlement offer. This protection, however, would in large measure disappear if a defendant who complied with the Rule remains responsible to the plaintiff for the noncomplying co-defendants’ share of delay damages.
Looking next to the reasons for and aims of Rule 238 for guidance, as Rule 127 allows in instances of rule ambiguity, I reiterate what this court has previously decided. Pa.R.Civ.P. 127(c)(1), (4). Rule 288 seeks to encourage settlement and achieve a prompt disposition of cases so as to unclutter the courts’ dockets. Laudenberger,
I also obseive, as permitted by Rule 127, that the General Assembly favors a plaintiffs full recovery of compensatory damages by making each joint tortfeasor liable for a plaintiff’s entire loss in § 7102(b) of the Comparative Negligence Act. Pa.R.Civ.P. 127(c)(5); 42 Pa.C.S. § 7102(b).
With these principles in mind, I conclude that generally-speaking, under Rule 238, a plaintiff in a multiple defendant lawsuit may recover all of the delay damages awarded him from any one defendant. This, in my view, increases the likelihood that a plaintiff will receive his entire award by shifting from him the financial risk of an insolvent or otherwise recovery-proof defendant. I also conclude, however, that Rule 238 restricts a plaintiffs ability to do so by distinguishing between defendants who comply with the Rule by tendering qualifying offers and defendants who do not. This is consistent with the Rule’s interest in advancing meaningful negotiation and settlement. Thus, I would hold that Rule 238 allows a plaintiff to collect his entire delay award from any noncomplying defendant; allows a non-complying defendant who pays to the plaintiff more than his assessed share of the total delay damages award to seek recoupment from those defendants whose delay damages assessment he is called upon to cover; and does not allow a plaintiff to collect from a complying defendant any delay damages attributable to other defendants from the date the offer which tolled Rule 238 was tendered.
As to the plaintiffs ability to pursue a Commonwealth party for the full amount of his delay damages award, I see no basis in either the words of the Rule or in its purposes to treat the Commonwealth in a different manner than I have just stated.
At this point, I turn briefly to the merits of the majority’s determination that since a plaintiff is limited in the amount he may recover in compensatory damages from a Commonwealth party under the Sovereign Immunity Act’s $250,000 cap, the rule of joint and several liability in 42 Pa.C.S. § 7102(b) of the Comparative Negligence Act does not apply to a plaintiffs recovery of delay damages from the Commonwealth once 42 Pa.C.S. § 8528(b)’s cap is reached.
Even if I agreed with the majority’s approach, I cannot agree with its conclusion. From my perspective, the majority violates the cardinal rule of statutory construction which is that the object of all statutory interpretation is to ascertain the General Assembly’s intent as expressed in the plain meaning of a statute’s language. 1 Pa.C.S. § 1921.
As I read it, the majority’s construction has merit only if one accepts the proposition that the Sovereign Immunity Act’s “limitations” on the “damages” a plaintiff is permitted to recover from the Commonwealth under 42 Pa.C.S. § 8528(b) means the same thing as [the Comparative Negligence Act’s provision that a plaintiff is unable collect his entire award from a
In Elder v. Orluck,
Lastly, the majority opinion provides three bases for abandoning our holding in Woods to assess delay damages against the Commonwealth based on the actual verdict, as opposed to the Sovereign Immunity Act’s cap. For me, not one of them is persuasive.
The majority begins by taking issue with this court’s prior interpretation of Rule 238’s language. In Woods, we focused on the phrase which provides that “delay damages shall be added to the ‘verdict of the jury, ... the decision of the court in a nonjury trial or ... the award of arbitrators ... and shall become part of the verdict, decision or award....’”, Pa. R.Civ.P. 238(a)(1), and determined that the Rule “is indicative of the intent to have damages apply to the verdict or award itself, which represents the actual factfinder’s assessment of the plaintiffs damagе, as opposed to the amount the plaintiff is legally entitled to recover.” Woods,
Next, the majority determines that Woods was inadequate in its analysis of the Rule’s compensatory purpose. According
Finally, the majority concludes that we failed in Woods to view this matter from “another perspective”, as we had in Craig, and recognize that by virtue of the cap in the Sovereign Immunity Act, 42 Pa.C.S. § 8528(b), the application of Rule 238 has more than a collateral effect on substantive rights and duties. (Majority Opinion at 768). According to the majority, we impermissibly affected substantive rights by “creat[ing] an uncertainty of outcome to motivate settlement where no uncertainty of outcome otherwise exists”, (Majority Opinion at 768) (emphasis in original), when we reasoned that if delay damages were computed on the statutory cap “ ‘there would be no unknown which would motivate the Commonwealth to discuss settlement.’ ” (Majority Opinion at 768) (quoting Woods,
For me, our analysis in Woods regarding the language, history and operation of Rule 238 is not only correct, but is as compelling today as it was in 1992, when we decided the case. The salutary purposes of the Rule — to encourage settlements, to unclutter the courts, and to compensate the plaintiff for the delay in receiving his recovery — remain worthwhile and must continue to be actively promoted., I would, therefore, uphold our decision in Woods,' in keeping with the doctrine of stare decisis, which we have repeatedly termed a “wise course of judicial action”, Fadgen v. Lenker,
Accordingly, I would affirm the order of the Commonwealth Court, affirming the trial court’s order, but for different reasons.
. I find discussion of this issue in terms of joint and several liability unproductive. Joint and several liability is a principle of tort law that is premised on the theory that the tortious conduct of two or more wrongdoers combined or concurred to cause an indivisible harm that cannot be apportioned, such that the injured parly may seek satisfaction of an entire judgment against all of them jointly or against any one of them individually. Glomb by Salopek v. Glomb,
. My agreement with the majority that the delay damages that any particular defendant owes the plaintiff should be calculated in light of the defendant’s apportioned fault is based on the words in Rule 238 which provide that "damages for delay shall be added to the compensatory damages awarded against each defendant or additional defendant found to be liable to the plaintiff in the verdict of a jury, in the decision of the court in a nonjury trial or in the award of arbitrators ....” Pa.R.Civ.P. 238(a)(1), and on our interpretation of the Rule in Woods that delay damages are to apply to the "actual factfinder’s assessment of the plaintiff’s damage.”
. I would refer Pa.R.Civ.P. 238 to the Civil Procedural Rules Committee to propose any amendments it deemed necessary to be certain that the terms of the Rule are clear in these regards and accomplish these results.
. Section 7102(b) of the Comparative Negligence Act provides in part that a "plaintiff may recover the full amount of the allowed recovery from any defendant against whom the plaintiff is not barred from recovery.” 42 Pa.C.S. § 7102(b). Section § 8522(a) of the Sovereign Immunity Act waives sovereign immunity “as a bar to an action against Commonwealth parties” in certain instances and "within the limits set forth in section 8528 (relating to limitations on damages)....” 42 Pa.C.S. § 8522(a).