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Marlette v. State Farm Mutual Automobile Insurance
10 A.3d 347
Pa. Super. Ct.
2010
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*1 structure, separately or or but that it err in pied charge, dismissing secured did thereof, portion burglary charge against with intent occupied Jackson. Accord- therein, the premis- ingly, portions commit a crime unless we affirm the of the trial open public granting are at the time to the or the court’s order es his motion to dis- or enter.” privileged trespass charge actor is licensed miss the and denying 3502(a). Thus, § to convict Jackson’s motion to Pa.C.S.A. dismiss the assault burglary, charge, portion Jackson of the Commonwealth reverse the of the trial prove have to that Jackson entered court’s order granting would Jackson’s motion to in- burglary the former marital residence with the dismiss the charge, and remand tent to commit crime therein. See Com to the trial court for further proceedings.4 Alston, 202, 206, v. monwealth Order reversed in and affirmed (1994). 1092, 1094 The intent to com A.2d part. proceed- Case remanded for further mit a crime not a for a required is element ings. relinquished. Jurisdiction finding contempt, of indirect criminal and above, a finding as outlined of indirect contempt requires proof

criminal of multi- PFA

ple relating elements order.

Thus, unique because there are elements criminal contempt to both indirect and MARLETTE, Richard A. and Sr. burglary, comparison passes Marlette, Wife, Marleen his test, sq, Bloclcburger prosecution for bur- Appellants glary does not run afoul of the Double v. Jeopardy Clause. FARM STATE MUTUAL AUTOMO Finally, we consider assault BILE INSURANCE COMPANY and charge. charged Jackson was with as Jordan, Appellees. Herman L. 2701(a)(3) sault under Section Code, provides Crimes which that “[a] Marlette, Richard A. and Sr. Marleen if person guilty of assault he at [] Marlette, Wife, Appellees his tempts by physical put menace to another v. in fear bodily injury.” of imminent serious State Mutual Automobile 2701(a)(3). 18 Pa.C.S.A. As discussed Company Insurance above, the PFA violation giving rise to the Herman L. Jordan. finding contempt of indirect criminal con presence viction was Jackson’s mar Appeal of Farm Mutual ital residence. None elements of Automobile Insurance that offense are shared with the elements Company, Appellant. such, simple assault. As the criminal Superior Pennsylvania. Court of prosecution on this charge proceed as well. Argued Dec. 2009. Filed Dec.

Thus, we conclude that the trial court did not err in dismissing trespass

charge refusing to dismiss the assault 1925(b) regarding Accordingly, Jackson also raises issues eluded his statement. Constitution of the Commonwealth of Penn- they purposes appeal. are waived for See sylvania estop- and the doctrine collateral Nobles, Commonwealth 51-52 pel. Appellee/Cross-Appellant's See Brief at 1925(b)(4)(vii). (Pa.Super.2008), Pa.R.A.P. However, 15-16. these issues were not in- *3 Carmody,

Sean J. Pittsburgh, for Mar- leen Richard Marlette. Rivetti, L. Pittsburgh,

Daniel for State Farm. MUSMANNO,

BEFORE: BENDER BOWES, JJ. MUSMANNO, OPINION BY J.: (“Mr. Marlette, Richard A. Sr. Mar- lette”) wife, and his Marleen Marlette (“Mrs. Marlette”), (collectively, “the Mar- lettes”) appeal from the directing Order1 Farm Mutual State Automobile Insurance (“State Farm”) Company pay the Mar- lettes in the amount of $28,223.76in underlying mo- uninsured (“UM”) torist case. In its cross-appeal,2 Farm challenges obligation delay damages in excess of its lim- review, its. After careful we vacate the judgment and remand a recalculation delay damages. case from an instant arises automo- 2, 2002, July bile accident that occurred on Marlette, City Pittsburgh. Mr. resident, stopped Florida in traffic operated by when a vehicle Herman L. (“Jordan”), uninsured, Jordan who was sideswiped crossed centerline and Mr. Marlette’s vehicle. As result of the acci- dent, Mr. Marlette phys- sustained serious fore, appeal ap- 1. The Marlettes filed their Notice of as in "we will consider the 24, peal entry judgment.” from the trial court's March 2009 Order filed after the (citation omitted). granting, part, delay their Motion for dam- ages. generally Such an interlocu- order tory appealable and not appeals unless reduced to 2. State Farm also from die Order of McGuire, 549, 24, judgment. LaRue v. March 2009. We will consider State However, judg- (Pa.Super.2005). n. 1 appeal entry judg- filed Farm’s after 1, subsequently supra. ment was entered on the award See n. This Court ment. consolidat- 11, delay damages May appeals May 2009. There- ed the on contend that the trial wages and The Marlettes well as lost injuries as ical its discretion and erred as court abused earning capacity. of his impairment calculating matter of law auto insurance had Marlettes verdict Policy damages based molded (“the Farm. The with State Policy”) the actual verdict of rather than coverage totaling UM provided stacked $550,000 personal inju- Mr. Marlette’s argues that no ries. State filed the Marlettes On October damages can be awarded excess County, pursuant Allegheny action policy limits under either UM Jordan and State Policy, against *4 law, thus, Pennsylvania Florida or and They sought coverage. Farm for UM that, error to assess bodily injuries Mr. Marlette’s damages for verdict, resulted in a when added to out of the accident wages arising and lost As State judgment exceeding those limits. of consortium. Marlette’s loss and Mrs. implicating a choice of Farm raises issues uncontested; pro- the case Liability was all of the potentially impact law that could damages. on the issue of ceeded to trial appeal, we State Farm’s issues on address trial, two-day re- Following a cross-appeal first. State raises Marlettes, in favor of the turned a verdict following issues for our review: $550,000 Marlette and Mrs. awarding Mr. Whether the trial court erred award- $150,000. trial court molded Marlette involving in a lawsuit ing delay damages to reflect the Marlettes’ UM the verdict a claim for uninsured motorist benefits $250,000 and credited an policy limits of policy under an automobile insurance is- $16,693.02 payment of made earlier when: sued Florida Farm, resulting in a verdict of limits, paid policy 1. The insurer $233,306.98for the Marlettes. Pennsylvania law and Florida subsequently The Marlettes filed a that an not have provide insurer does pursuant Pennsylvania to Rule of Motion pay policy more than its limits ab- seeking delay dam Civil Procedure 2383 faith; finding sent a of bad ages on the verdict awarded to law, appli- 2. Florida which controls opposed Mr. Marlette.4 State Farm policy provi- cation of the insurance Motion, the Marlettes were arguing sions[,] of prohibits “pre- award legally damages. entitled to interest” in uninsured mo- judgment trial court awarded torist lawsuits[?] $28,223.76,which was calculated amount of Brief at 1. State Farm’s appropriate interest rates applying $233,306.98. Our standard of review is de This to the molded verdict followed. novo because contentions cross-appeal timely concerning appeal and nonjury provides, pertinent part, 3. as fol- in a trial or in the award of arbitra- appointed lows: tors under section 7361 of 7361, Code, Damages Delay in Actions for Judicial 42 Pa.C.S. and shall Bodily Injury, Property Damage Death or or become decision (a)(1) request At the in a award. monetary seeking civil action relief for bod- 238(a)(1). Pa.R.C.P. ily injury, property damage, death or dam- ages shall be added to the amount undisputed delay damages are not It is awarded for claims of loss of consortium. each defendant defendant or additional Trucks, Inc., 177, Anchorstar v. Mack 533 found to be liable to the in the 1120, (1993). 620 A.2d 1122 jury, of the court verdict of a in the decision

351 entitled, proce of the rules of civil were but which remained in the interpretation law. v. Riv questions dure raise Jones during litigation. hands of a defendant era, 1148, (Pa.Super.2005). 866 A.2d Pennsylvania Willet v. Catastrophe Med. of Pa. applicability At issue herein is Fund, 613, 850, 549 Pa. Loss 702 A.2d vehicle in 238 to a Florida motor R.C.P. (1997). protect n. Defendants can them policy with surance UM insurance exposure pre-judgment selves from in a ruling limits of We review by making terest a settlement offer in under Rule 238 for an abuse of discretion. writing that bears a substantial relation 1159, Friedman, Tindall v. 970 A.2d the actual ship by offering or 2009). (Pa.Super Laudenberger, limits. 436 A.2d at 151; Hellman, also Miller v. see preliminarily We note (1994) Pa.Super. 594-95 analysis only applicable choice-of-law (holding that where the conflicts of substantive law. Ferraro v. insurer of the at- McCarthy-Pascuzzo, 777 A.2d 1137 fault driver in the plaintiffs’ personal inju If an (Pa.Super.2001). procedural, issue is ry action offered to the full policy *5 Thus, Pennsylvania law will Id. govern. shortly after plaintiffs’ filing limits the of inquiry application our first is whether the complaint, their the insurer was not liable computation delay and of Rule 238 dam delay for damages). ages procedural. is substantive or Supreme in Court held Laudenber- 1968, Judiciary the Article of ger, and steadfastly has maintained since Pennsylvania

the Constitution was altered then, that Rule 238 a involves matter of grant Supreme power to the Court “the to procedure. Laudenberger, 436 A.2d at prescribe general rules governing practice, 155; 246, Pivirotto v. Pittsburgh, 515 Pa. procedure, the of and conduct all (1987) (same). 125, 528 A.2d 130 As Rule ” 10(c). V, § Pa. courts.... Const. Art. herein, 238 procedural is and 238, providing delay damages Rule in Pennsylvania Therefore, governs. law interest, the nature of pre-judgment is Florida case law has no bearing Committee, such a rule. The Civil Rules proper application of Rule 238. following study a in major cases Penn arbitration, that, sylvania subject argues Pennsyl- not to con State Farm under delay law, “emasculat[ing] may cluded was vania not be held liable for judicial system’s ability to hear cases. delay damages excess of policy its limits Rule 238 fulfills Supreme] [the Court’s ob finding absent a policy of bad faith or ligation legislature public to the and to the contrary. See State prompt, expeditious to effectuate trial and at Farm’s Brief 6-9. State Farm relies Laudenberger settlement of cases.” v. heavily upon this recent Court’s decision in Allegheny Port Auth. County, 496 Co., Thompson Whipple v. T.J. Constr. 985 (1981). 147, 152 436 A.2d 221 (Pa.Super.2009), A.2d in which the affirmed the trial court’s refusal to Rule primarily 238 is therefore intended impose delay damages “high” on the delay to alleviate our courts and encour- high/low settlement an agreement absent age defendants to settle meritorious claims among parties to that effect. See possible. as soon as See Civil Procedural State Farm’s Brief at 7-9. holding Our Explanatory Rules Committee Comment however, (1988). Thompson, unique high/low to secondary 238 Pa.R.C.P. Its agreements purpose compensate plaintiffs inapplicable is to for the and on the facts delay in receiving money they to which before us. range A of the is “a settle ment. verdict outside agreement high/low

A agreement triggered condi- agrees high/low a defendant in which ment tion, recovery high in return or low amount rendering a minimum accept supplanting agreement binding as a settlement and plaintiffs regardless of the out jury amount verdict.5 maximum at Thompson, A.2d on settlements because the trial.” are come of Dictionary, 8th encouragement of settlements is (quoting Law Black’s (2004)). parties Thompson Rule underlying ed. $1,000,000 high would be agreed the other Penn- We have also reviewed low, Delay Id. dam and that State Farm cites sylvania cases not discussed ages were claim and determine its support trial, negotiations. Following settlement misplaced. reliance these cases is returned verdict (citing Brief at Incol See State Farm’s 6-7 $1,071,041.67,which the trial court reduced 474 Pa. lingo Ewing, v. 379 A.2d $1,000,000, in accordance with the set (1977), Surety & Aetna Cas. Cowden Id. The agreement. tlement (1957), Co., 389 Pa. seeking Rule 238 petition filed a Nationwide, 713 Browne v. A.2d 663 denied, plain damages, which contrary, analo (Pa.Super.1998)). To tiff appealed. law a determination gous supports case affirmed the denial of This Court that State Farm be held liable for focusing purpose on the damages, in excess of the UM *6 the fact that the high/low agreement and 1, Mellinger, limits. See Allen 567 negotiated its parties terms. specifically (2001) (where 784 767-68 the A.2d 227-28, 230. We held that the Id. at liability was Commonwealth defendant’s a conditional settlement agreement was to a en- limited to due parties expressly say the and that “unless actment, holding that an additional award otherwise, prejudgment in- calculation delay damages against the Common- limits is not beyond terest chosen though delay wealth even proper was (cita- agreement.” Id. at 226 high/low li- damages increased Commonwealth’s omitted). tion ability beyond statutory cap); controlling herein. A Thompson is not (where supra parties underlying in the far in policy purchased form ad- insurance personal injury pre- action entered into giving liability,

vance the incident rise to stipulation any compensatory trial that case, analogous in this is not as occurred damage for the could not award agreement in Thompson, to the settlement $15,000, holding that an award of exceed the eve trial negotiated which on was though even delay damages proper had been Fur- damages after ascertained. damages those increased defendant’s ther, compensatory limit on dam- amount). liability beyond stipulated ages not the same as the settlement of claims, Thompson. Turning language all to the of the Pol as occurred Moreover, a limit on holding icy, imposes critical to our we note that bodily injury only. Pre- parties damages was the fact that for Thompson delay damages are not mutually negotiated a conditional award interest or settle- however, noted, there is no settlement. Thompson lion is not met and event, Thompson, at In that jury 985 A.2d where the renders a verdict within apply range high/low agreement, properly to the verdict. the condi- context; posed mentioned in the UM to the specifically molded verdict based however, Policy provides they are the net amount of insurance coverage in the context6 Un recoverable provided by ($233,- [State Farm] policy provisions regarding UM der 306.98)[?] coverage, agreed “dam The Marlettes’ Brief at 4. injury legally ages bodily for insured is trial court held that it properly entitled to collect from the owner or driver calculated on the net of an uninsured motor vehicle.” The Poli amount coverage of insurance as reflected cy at lan (emphasis original). This in the opining molded that Rule guage places damages UM recoverable delay contemplates damages are footing from State Farm on the same to be calculated based the amount of damages party liability, for third which generally delay damages includes recoverable Arguably, placing plaintiff. 7/6/09, costs. State Farm the Opinion, Trial Court footing party same as the third at 4. In holding, so the trial court con- tortfeasor, insured, Policy vis a vis the ceded that it the unpredictabil- “remov[ed] allows the poli excess of ity of delay damages on potentially the[] event, cy any limits. we discern no larger, verdiet[,]” much unmolded Policy in the that can be con effect of which was to “undermine the limiting liability strued as dam salutary effect of Rule encourage- 238’s ages pre-award or interest the UM con ment of degree. settlements[ ]” to some text. State specifically Farm’s failure to court, According 4-5. howev- mention or interest in the er, interpretation application Policy it ambiguous drafted renders it on Rule unduly “d[id] restrict and, therefore, point, it must be con (em- salutary purpose of Rule 238.” Id. strued the insurer. See Standard phasis in original). For the reasons that Venetian Blind v. Am. Empire Co. Ins. follow, we determine that the trial court Co., (1983). 503 Pa. *7 in erred its calculation of damages. Since there is no in Policy issue, In addressing this State Farm that an prohibits award of any that delay damages against asserts limits, in excess of the UM nor is must be upon calculated based the verdict law, precluded such an by award State as molded to reflect the Marlettes’ UM cross-appeal Farm’s fails. policy limits. State Farm’s Brief at 10-11. Having Farm concluded State is not support, Allen, In upon relies cross-appeal, entitled to relief in its we supra. We determine that State Farm’s question turn now to the by raised upon reliance regard Allen is mis- appeal: Marlettes on placed. Whether Pa.R.C.P. The in the Allen Court addressed the present interplay matter should be calculat- upon statutory ed between Rule 238 and the per- cap factfinders’ verdict for on recoverable, injuries damages by compensatory damages sonal and sustained im- ($550,000.00) 8528(b) Richard Marlette op- posed by section of the Sovereign Policy (providing, judgment 6. See the at 7 accruing!] relevant a ... before the part, that law, addition to the limits of liabili- "[i]n judgment, only where owed but ty, any we will insured costs listed judgment pay.” (emphasis of the we resulting below from such 2. In- accidentf:] original)). terest on owed the insured due to stated in Act,7 private litigant. As this Court a when Commonwealth Immunity Allen, supra, interplay A.2d at of the Thompson, “[t]he a defendant. party is injured in Immunity in Allen was Act with Pa.R.C.P. plaintiff Sovereign The 763. and thereafter vehicle accident unique a motor Allen created a scenario ] 238 [in both the against action negligence here, filed a parties where the Depart- Pennsylvania and the other driver lim- by statutorily-imposed were not bound Id. at 763-64. A Transportation. ment recovery.” 985 A.2d at Thompson, its on the other a verdict jury rendered coverage limit for UM Id. at 764. driver and Commonwealth. a equated cannot be with simply this case question relevant before Court liability statutorily-imposed cap on a was whether calculation Allen parties. Commonwealth jury entire applicable to the damages was however, ap- acknowledge, We that our or to against the Commonwealth verdict strictly pellate courts have not limited the statu- as molded to reflect the verdict only involv- holding of Allen to those cases cap of tory LaRue, In ing parties. Commonwealth $250,000. held that Id. at 767. The Court underlying in the supra, plaintiffllessee damages recoverable from Com- “delay into a negligence voluntarily action entered to those cal- parties monwealth are limited stipulation with the pre-trial defendant/les- statutory cap.” culated Id. based whereby parties agreed to limit the sor holding, the rea- at 768-69. In so Court pending jury in the defendant’s can- soned since Commonwealth compensatory damage trial to a maximum any beyond the statu- not be liable for sum $15,000.LaRue, award of 885 A.2d at 551- tory cap, plaintiff would have no reason return, permitted recovery delay damages on anticipate reports to enter his medical into evidence cap. in excess of that verdict rendered necessity authenticating without the explained Id. at 768. The further documents, pursuant to Pa.R.C.P. 1311.1.8 plain- which befall hardships that “the A.2d at 552. At the close of damages against tiffs who seek Common- trial, awarded a verdict for the parties wealth occur as a direct conse- in the amount of quence limitations ” re- The trial court molded the verdict to Id. The Allen Court also damages.... compensatory damage flect the maximum Sovereign Immunity noted that “the Act $15,000, parties to which the had award of relationship rights unique creates plaintiff subsequently Id. The stipulated. plaintiffs duties between and Common- *8 delay damages, filed a motion for Rule 238 “in parties” wealth that does not exist the which the trial court denied. Id. litigants subject not to limi- private case of liability.” tations on determining plaintiff After that the first Allen, here, in LaRue was entitled to an award of Unlike there was no statuto- Farm, that, ry cap liability damages, light the of State the Court held seq. 7. 42 Pa.C.S.A. 8521 et introduced into evidence at the trial de exchange cost-saving novo. In for this ben- explained, 8. As the LaRue Court efit, damages plaintiff agrees to limit to [a] 1311.1, addressing Rule introduction $15,000[, now under current appeal the award evidence on trators, from of arbi- rule], regardless jury’s of the verdict in his goal contributes to the overall or her favor. by reducing compulsory arbitration LaRue, 885 A.2d at 553. calling time and costs associated with wit- nesses to authenticate documents that are voluntary to limit plaintiffs decision the amount of compensatory damages re- the amount of each defendant or addi- coverable, the award of tional defendant found to be liable to upon jury’s not verdict should be based in the verdict of a ... reflecting the molded verdict but shall become deci- (em- Id. at In so stipulated 238(a)(1) sum. 557-58. sion or award.” Pa.R.C.P. stated, alia, holding, added). inter as Court Here, phasis the amount of com- follows: pensatory damages that the jury awarded Allen, recognize

We its verdict for Mr. Marlette was imposed enactment the limitation on the our rules of statutory “Under construction, liability, give Commonwealth’s whereas we must effect every to voluntarily case, plaintiff] statute, [the every provision word in agreed [the to the limitation on defen- may we not interpret statutory language in liability pursuant dant’s] Rule a manner that any provision renders 1311.1, gain in order to the benefit of superfluous or surplusage.” mere Gaudio Nonetheless, expenditures. reduced Co., v. Ford Motor 976 A.2d plaintiffs] voluntary the effect of 127(b) [the (Pa.Super.2009); (provid- Pa.R.C.P. “private choice is that he is not a liti- ing construed, that “[e]very rule shall be if gant!] subject not to limitations on lia- possible, give effect to all provisions. bility!,]” the distinction the Allen court When the words of a rule are clear and emphasized. free from all ambiguity, the letter of it is disregarded not to be pretext under the Allen, (quoting Here, pursuing its 768) added). spirit.”). we cannot (emphasis A.2d at ignore explicit reference in Rule 238 to case, In the instant unlike La- ” “compensatory damages awarded nor Rue, the Marlettes not enter an did into may we interpret language of the Rule agreement with State Farm to limit imply an by Supreme intention potential exchange insurer’s shall be calcu- some form of benefit at trial. The volun legally lated based the sum recovera- tary by decision in LaRue to Gaudio, by ble a plaintiff. See 976 A.2d at proceed under Pa.R.C.P. 1311.1 is not akin (stating that “[[listening attentively to to the inherent compen “limitation” of the say, what the statute does not we not satory damages by recoverable the Mar- interpret express a limita- action, lettes in a UM imposed which was contain.”). simply tion it does not by pre-trial stipulation and the Rules Procedure, solely by of Civil but the terms Finally, our disposition in this case is Policy issued State Farm. In supported by the policy considerations un- deed, in every coverage insurance dispute, derlying the Supreme Court’s enactment liability, insurer’s absent a claim of bad above, of Rule 238. As mentioned faith, is limited insurance primary Rule’s purpose encourage is to *9 policy limits. Laudenberger, settlements. 436 A.2d at Moreover, plain the language of Rule 152. In the presented circumstances here- in, supports 238 that the only determination de- Rule 238 can be effectuated lay damages against State Farm calculating delay damages should be upon based the upon calculated based the jury’s upon award verdict and not the verdict as jury. provides, in relevant part, policy molded to reflect the insurance lim- “damages that shall be added to its. If we apply were to the Rule as State

356 BOWES, OPINION BY be no “un- DISSENTING there would suggests,

Farm J.: an motivate that would known” insurer/de- a reasonable settlement make

fendant to re- Supreme our Court’s As I believe Indeed, actually provide an it could offer. the of Pa.R.C.P. interpretation of a mer- to settle with a disincentive insurer Pa. 784 Mellinger, 238 in Allen v. the hopes forcing plain- of claim in itorious (2001) gen- for the controlling A.2d 762 than the a claim for less tiff to settle delay damages that are to proposition eral liability exposure the insurer’s amount of compensatory be on the dam- calculated pro- Even if policy. the insurance under legally recoverable rather than ages dispute ensues and litigation tracted respectfully I dissent. trial, may only be the insurer

proceeds Depart- In v. Woods Commonwealth limits, even policy for the liable Transportation, ment of here, of the fact- the verdict though, as (overruled (1992) by Allen A.2d 970 lim- exceeds the significantly finder Supreme our Mellinger, supra), Court Further, Rule 238 as the trial apply its. of unpredictability that the de- concluded may provide in the instant case court did pro- lay damages powerful was a factor an economic disincentive insurers with moting of cases. The Court settlement claims in insui-ance cov- meritorious settle upon rejected the calculation of an Specifically, insurer erage disputes. statutory cap imposed as to verdicts where the finan- incentive to settle has no against finding defendants Commonwealth on the insurer’s investment cial returns to settle- to be “distinct disincentive” (ie., reflecting poli- the retained funds delay damages ment would be “since that remains the insur- cy limits at issue upon a constant.” Id. at predictable based during litigation) exceed possession er’s time, delay damages were 972. At delay damages ex- potential the maximum routinely compensatory on the calculated prevail at trial. posure should by jury against a de- in the above situations risks An insurer fendant. negative faces no conse-

nothing and Allen, revisited Supreme our Court application quences delay. Such interplay of Rule 238 and Woods and un- policies Rule 238 would eviscerate statutory on the liabili- cap Rule. derlying the ty imposed defendant Commonwealth 8528(b) Sovereign Immunity foregoing, we conclude upon the Based Act, §§ 8521-8553. One of the Pa.C.S. delay damages award issues in Allen was whether dam- be calculated based should ages were to be on a award calculated jury’s award against the Commonwealth defendant Accordingly, Mr. Marlette. damages for limit, statutory or whether exceeded the judgment we the trial court’s as to vacate delay damages were to be calculated remand the matter $250,000. There statutory limit of was re-calculate for the court to that the question no in Allen was Opinion. with this accordance even when the delay damages, entitled to vacated. remanded Judgment Case delay damage effect of the award was to jurisdic- Superior with instructions. increase the be- Commonwealth’s relinquished. tion cap yond because encourage settlement. of Rule *10 However, BOWES, J., Court overruled Dissenting Opinion. Allen files Woods, supra, majority attempts which to distinguish earlier decision Al be calculat- on the damages ground that would len that it involved held such Com subject rather than on the statu- monwealth defendants to ed on the verdict statutori However, tory cap. ly-imposed recovery. limits on ignored very this Court that distinction in holding, the Allen reexam- In so (Pa.Su McGuire, LaRue v. 885 A.2d 549 of Rule 238 conclud- language ined the per.2005), applied interpreta Allen’s improperly fo- ed that the Woods Court tion of Rule 238 in a case where private phrase delay cused on isolated parties stipulated to a limit on compensato to the damages shall be added “verdict Indeed, ry damages. re-interpretation ... ... decision of the court or rule imposing delay damages as on ... award of arbitrators and shall become the compensatory damages recoverable verdict, or part of the decision award.” supplied the for holding basis our in La Allen, Allen, According at 767. supra Rue. incorrectly the Woods Court concluded that this was “indicative of [our LaRue, we addressed the issue of to have Supreme damages intent Court’s] delay whether damages were to be calcu- itself, apply to verdict or award which $600,000jury lated on the verdict or on the actual represents factfinder’s assess- stipulated maximum award of ment plaintiffs damage, opposed We held that required Allen the calcula- plaintiff legally to the amount the is enti- tion of delay damages on the amount the Allen, supra tled to recover.” at recover, plaintiff legally entitled not Woods, Instead, quoting supra at 972. on the actual because where com- following Allen Court focused on the lan- pensatory damages capped, are there can guage: “damages delay for shall be added delay be no in receiving amounts in excess to the amount of cap. of that We appreciable found no each defendant or addi- Allen, difference between the facts in tional defendant.” The Court concluded: liability, where statute limited and the LaRue, plaintiff facts where the volun-

With respect purpose to the rule’s tarily stipulated to limitation on the oth- compensating for plaintiff party’s liability pursuant er to Rule 1311.1. receiving recovery, his or her it defies voluntary The effect of that choice was suggest reason to that the basis for cal- was not a “private litigant [ ] culating compensation such be could [,] subject limitations anything than other the amount emphasized.” distinction the Allen court party actually Commonwealth could be Allen, supra at (quoting supra responsible paying plaintiff. 768). at Recognizing plaintiffs compensa- Id.

tory case, damages could never exceed the stat- In the instant the Marlettes volun- utory cap, tarily Allen Court reasoned that elected and paid for UM claim, receiving there could be no coverage. Absent a bad faith I find cap. amounts in excess of that self-imposed compensato- Absent limitation on delay, ry that “the sufficiently analogous Court concluded stated to be justification compensating limitation in Allen and the illusory.” with stipulation in LaRue to warrant the same treatment under Rule 238.1 I can discern case, third-party plain- legal recovery capped In a insurance tiffs is not at the defen- *11 limiting Allen to situa- basis logical no RETIREMENT EMPLOYEES’ STATE statutory As the cap. involving

tions SYSTEM, Petitioner premised on a holding was Allen Court’s language of Rule of the re-interpretation every case where RECORDS, OF OPEN OFFICE appropriate. are delay damages Respondent. majority’s decision is that the I believe Pennsylvania. Commonwealth Court plain of the reinterpretation based on a Aug. on Briefs Submitted contrary to Rule 238 that is Decided Nov. Court, in The Allen LaRue. Allen and Woods, rejected specific overruling majority es- that the

policy considerations Allen, the Court was herein.

pouses policy consid- primary that the

dissuaded 238, the encour- underlying Rule

eration settlements, would suffer

agement of where

those situations limits

were calculated on uncertainty jury ver-

rather than Indeed, the cal- perceived the Court

dict. compen- delay damages on

culation of more

satory damages recoverable secondary un-

closely promoting 238, which is the com-

derlying Pa.R.C.P. for the loss of use of

pensation money throughout period

his

delay. trial

Accordingly, I believe that properly calculated

court compensatory damages legally re-

on the

coverable, rather than on the I with Allen and LaRue. As accord majority’s position reconcile the

cannot authority, compelled

with I am prevailing

to dissent. Thus, delay damages. the calculation of

dant's limits. the verdict would control for

Case Details

Case Name: Marlette v. State Farm Mutual Automobile Insurance
Court Name: Superior Court of Pennsylvania
Date Published: Dec 10, 2010
Citation: 10 A.3d 347
Court Abbreviation: Pa. Super. Ct.
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