Burkholder v. Genway Corp.

637 A.2d 650, 432 Pa. Super. 36, 1994 Pa. Super. LEXIS 426
CourtSuperior Court of Pennsylvania
DecidedFebruary 22, 1994
Docket1925
StatusPublished
Cited by6 cases

This text of 637 A.2d 650 (Burkholder v. Genway Corp.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burkholder v. Genway Corp., 637 A.2d 650, 432 Pa. Super. 36, 1994 Pa. Super. LEXIS 426 (Pa. Ct. App. 1994).

Opinions

CIRILLO, Judge:

Pollow Chevrolet, Inc. (“Pollow”) appeals from an order of the Court of Common Pleas of Delaware County denying Follow’s post-trial motions and entering judgment for plaintiff, Ronda Burkholder, in the amount of $1,342,089.62 and against defendants James J. Scanlon, Jr. (Scanlon), Harvco, Inc. (Harvco), and Pollow, jointly and severally. We reverse.

The facts adduced at trial are as follows: On November 20, 1985, Pollow entered into a written agreement to lease a 1986 [39]*39Chevrolet El Camino (subject vehicle) to Harvco. The agreement was signed by Scanlon, as the President of Harvco, and was the third such lease entered into between Harvco and Pollow. At the time the first lease was entered into, Scanlon produced a valid Delaware driver’s license. At the time the third agreement was consummated, however, Pollow did not ask Scanlon to produce his license which, unbeknownst to Pollow, had been suspended.1

On August 20, 1988, Scanlon, while operating the subject vehicle, drove through a red light and struck a car in which Ronda Burkholder was a passenger. As result of this accident, Burkholder sustained serious injuries. Burkholder initiated suit against Scanlon, Harvco, and Pollow. Prior to trial, the parties stipulated that: 1) Scanlon and Harvco admit liability for the accident in question; 2) on November 20,1985, Pollow and Harvco entered into a written lease for the subject vehicle, which was signed by Scanlon on behalf of Harvco; 3) when the November 20,1985 lease was signed, Scanlon did not have a valid driver’s license; and 4) at the time of the accident, Scanlon’s Pennsylvania driver’s license had been revoked and his Delaware license suspended.

On June 16, 1992, a non-jury trial was held before the Honorable Joseph F. Battle. The only issues considered at trial were whether Pollow, as lessor of the subject vehicle, was liable for the injuries caused to Burkholder and the amount of damages. At the close of trial, Judge Battle entered judgment in favor of Burkholder and against all defendants for $1,500,000.00. Judge Battle so ruled primarily because he found that 75 Pa.C.S.A. § 1574 imposed vicarious liability on anyone who authorizes an unlicensed individual to drive a vehicle owned or controlled by the authorizing party, and that, necessarily, Pollow authorized Scanlon to drive the subject vehicle. Post-trial motions were filed by Pollow and denied. On May 24, 1993, Judge Battle amended his opinion and order [40]*40and entered judgment for Burkholder in the amount of the molded verdict, $1,342,089.62. This appeal followed.

Pollow raises the following issues for our review:

I. Whether 75 Pa.C.S.A. § 1574 requires that an owner “knowingly” allow an unlicensed driver to operate the owner’s motor vehicle in order to hold the owner vicariously liable for the torts of the unlicensed driver?
II. Whether it was erroneous for a franchisee of a leasing company to be held liable under 75 Pa.C.S.A. § 1574 when it had negotiated a lease with a corporation three years before the accident date and the lessee corporation thereafter permitted an employee whose license had been suspended to use the vehicle?
III. Whether the court sitting without a jury impermissibly received into evidence plaintiffs vocational rehabilitation expert’s report over the objection of appellant that the report was speculative and did not contain a proper factual predicate?
IV. Whether the application of 75 Pa.C.S.A. § 1574 to the franchisee of a lessor of a motor vehicle under a long term bailment lease is violative of the U.S. Constitution when there is no means by which lessor can verify the active status for an otherwise apparently valid driver’s license?

Pollow first argues that the trial court erred in concluding that 75 Pa.C.S.A. § 1574 holds a person, who permits a vehicle under his control to be driven by an unlicensed driver, vicariously liable for the negligent conduct of that driver. Specifically, Pollow claims that section 1574 requires that the authorizing party “know” or have “reason to know” that the other party is an unlicensed driver before the authorizing party can be held liable for the driver’s conduct. Our initial task, therefore, is to determine what culpability requirement, if any, the statute requires.

Section 1574 is silent as to its culpability requirement. The statute states:

(a) General rule: No person shall authorize or permit a vehicle owned by him or under his control to be driven upon [41]*41any highway by any person who is not authorized under this chapter or who is not licensed for the type or class of vehicle to be driven.
(b) Penalty: Any person violating the provisions of subsection (a) is guilty of a summary offense and shall be jointly and severally liable with the driver for any damages caused by the negligence of such driver in operating the vehicle.

75 Pa.C.S.A. § 1574.

When a statute does not prescribe the degree of culpability needed for a conviction under a summary offense, we will impose a culpability standard only if we determine “that [the standard’s] application is consistent with effective enforcement of the law defining the offense.” 18 Pa.C.S.A. § 305(a)(1). To facilitate such a determination in the case at hand, it is helpful to analyze case law reviewing section 1574 and its predecessors.

In In re Moyer, 359 Pa. 536, 59 A.2d 927 (1948), the Pennsylvania Supreme Court was asked to determine whether the Secretary of Revenue properly suspended Moyer’s motor vehicle license under Section 622 of Art. VI of the Vehicle Code of May 1, 1929, after Moyer had lent his vehicle to an unlicensed driver. This provision, the first version of section 1574 enacted in this Commonwealth, made it unlawful for one “to authorize or permit a motor vehicle owned by him or under his control to be operated by any person who has no legal right to do so.” Id.

In finding that the Secretary of Revenue did not properly suspend Moyer’s license, the Supreme Court imputed a “knowledge/reason to believe” requirement into the statute. Thus, the Supreme Court found that as Moyer “had no knowledge or reason to believe that the license [of the operator of his motor vehicle] had been revoked,” he did not violate any provision of the Vehicle Code. Id.

Similarly, in Jenks v. Commonwealth Dept. of Transp., Etc., 6 Pa.Commw. 546, 296 A.2d 526 (1972), the Commonwealth Court considered whether Joan Jenks properly had her license suspended under 75 P.S. § 626 (1959), after loaning her vehi[42]*42cle to an unlicensed driver. This provision, another predecessor of section 1574, provided: “No person shall authorize or permit a motor vehicle or tractor owned by him or under his control to be operated by any person who has no legal right to do so.... ” Id.

After discussing a split in authority regarding the “knowledge” requirement, the Commonwealth Court announced:

Certainly, a court must be willing to consider the element of knowledge when deciding a § 626 suspension case.

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Burkholder v. Genway Corp.
637 A.2d 650 (Superior Court of Pennsylvania, 1994)

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Bluebook (online)
637 A.2d 650, 432 Pa. Super. 36, 1994 Pa. Super. LEXIS 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burkholder-v-genway-corp-pasuperct-1994.