Cruz v. Princeton Insurance

925 A.2d 853, 2007 Pa. Super. 152, 2007 Pa. Super. LEXIS 1544
CourtSuperior Court of Pennsylvania
DecidedMay 30, 2007
StatusPublished
Cited by14 cases

This text of 925 A.2d 853 (Cruz v. Princeton Insurance) 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
Cruz v. Princeton Insurance, 925 A.2d 853, 2007 Pa. Super. 152, 2007 Pa. Super. LEXIS 1544 (Pa. Ct. App. 2007).

Opinions

OPINION BY

BENDER, J.:

¶ 1 In this abuse of process action, Jacqueline Nieves Cruz and Oscar Cruz (“Appellants”) appeal the October 18, 2004 orders granting summary judgment in favor of Princeton Insurance Company (“Princeton”), and Princeton’s counsel, Alan S. Gold, Esquire and Gold, Butkovitz and Robins, P.C. (“GBR”) (collectively, “Appel-lees”). After en banc argument and review of the briefs, the record, and the relevant law, we affirm.

¶ 2 In 1994, Appellants, individually and on behalf of their son, Adam, filed a medical malpractice action against Northeastern Hospital, Dr. Myung Hyo Shin, and Dr. Robert Cogan, seeking damages for permanent and debilitating injuries Adam sustained when he was born on August 14, 1992. Appellants dropped their individual claims and, in August 2000, a jury returned a verdict in favor of Adam and against the hospital in the amount of $10,811,431.27.1 Following Appellants’ motion for delay damages, the verdict was molded to over $15,000,000. The hospital and Appellants cross-appealed.

¶ 3 Princeton, the hospital’s insurer, retained Attorney Gold of GBR to handle the appeal and related settlement negotiations. While the appeal was pending before this Court,2 the parties began settlement negotiations before a mediator selected by Princeton. This mediator suggested a settlement in the range of $8 to $10 million. Settlement discussions continued through February 2002, but Appellants rejected [855]*855Princeton’s offer to settle the case for $7,000,000.

¶ 4 On February 27, 2002, on behalf of his client, Attorney Gold petitioned the court to appoint a guardian ad litem for Adam. The petition alleged in pertinent part:

6. Princeton and the Cruzes have engaged in excessive settlement negotiations with the aid of Abraham Gafni, former judge of the Court of Common Pleas of Philadelphia County as a mediator. The parties have reached an impasse in those negotiations. Princeton Insurance Co. has offered $7,000,000 to the Cruzes. This constitutes sufficient money to support [Adam] for the rest of his life. This money has been turned down.
7. Princeton Insurance Co. believes that a substantial possibility exists that Northeastern Hospital will prevail on the appeal and that the Cruzes may receive no money for [Adam].
8. [Adam’s] medical expenses would then become a burden on the taxpayers of this Commonwealth.
9. [Adam] would not have the opportunity to have the full services that he would if his parents accepted the $7,000,000.
10. Princeton Insurance Co. respectfully requests that this Court appoint a guardian ad litem to evaluate the settlement demand and to represent the interest of [Adam] in this litigation.
11. Princeton believes that the parents have had a substantial disagreement among themselves concerning how to handle this litigation and whether to accept the settlement offer of Princeton Insurance Co. made on behalf of Northeastern Hospital.
12. Further, a potential conflict of interest exists between plaintiffs’ counsel and the interests of her minor client, [Adam], particularly in light of disagreement among his parents with respect to the settlement offer.
13. The appointment of a guardian ad litem will insure that the interest of the child will be protected. The guardian ad litem would pursue the litigation on behalf of [Adam] and evaluate settlement offers.

Petition for Appointment of Guardian Ad Litem For Adam Cruz (Exhibit J to Motion of Defendants Alan S. Gold, Esquire And Gold, Butkovitz & Robins, P.C. for Summary Judgment (“Petition”), 2/27/02, at 2-3 (R.R. 658a-59a)). The trial court denied the petition on March 7, 2002, and, shortly thereafter, Appellants accepted in principle Princeton’s settlement offer of $7,100,000. This offer was ultimately approved by the trial court on September 5, 2002.

¶ 5 On May 22, 2003, Appellants filed a complaint in the instant action for abuse of process against Appellees alleging that, by improperly filing the petition for appointment of a guardian ad litem, Appellees caused them “extreme emotional distress, fear, upset and anxiety that their parental rights could be terminated” and that they “became so fearful of subsequent assaults on their parental rights that they agreed to the settlement offer of $7,000,000 rather than to continue with negotiations.” Complaint, 5/22/03, at 5 (R.R. 18a). On this latter contention, Appellants have since dropped any damages claim that, as a result of the filing of the guardianship petition, they were coerced into prematurely settling the case.3

[856]*856¶ 6 Appellees filed separate motions for summary judgment, which the trial court granted in separate orders on October 18, 2004. Appellants’ motion for reconsideration was denied, and this timely appeal followed. Initially, a three-judge panel of this Court reversed and remanded, but reargument was granted, and the matter is now before this Court en banc.

¶ 7 Our standard of review of an order granting or denying a motion for summary judgment is well established:

We view the record in the light most favorable to the nonmoving party, and all doubts as to the existence of a genuine issue of material fact must be resolved against the moving party. Only where there is no genuine issue as to any material fact and it is clear that the moving party is entitled to a judgment as a matter of law will summary judgment be entered. Our scope of review of a trial court’s order granting or denying summary judgment is plenary, and our standard of review is clear: the trial court’s order will be reversed only where it is established that the court committed an error of law or abused its discretion.

Pappas v. Asbel, 564 Pa. 407, 418, 768 A.2d 1089, 1095 (2001) (citations omitted).

¶ 8 This Court has previously discussed and defined the tort of abuse of process as follows:

“Abuse of process” is defined as “the use of legal process against another primarily to accomplish a purpose for which it is not designed.” Shiner [v. Moriarty], 706 A.2d [1228,] 1236 [ (Pa.Super.1998) ] (quoting Rosen v. American Bank of Rolla, 426 Pa.Super. 376, 627 A.2d 190, 192 (1993)).
To establish a claim for abuse of process it must be shown that the defendant (1) used a legal process against the plaintiff, (2) primarily to accomplish a purpose for which the process was not designed; and (3) harm has been caused to the plaintiff.

Id. Abuse of process is, in essence, the use of legal process as a tactical weapon to coerce a desired result that is not the legitimate object of the process. McGee v. Feege, 517 Pa. 247, 259, 535 A.2d 1020, 1026 (1987). Thus, the gravamen of this tort is the perversion of legal process to benefit someone in achieving a purpose which is not an authorized goal of the procedure in question. Rosen, 627 A.2d at 192.

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Bluebook (online)
925 A.2d 853, 2007 Pa. Super. 152, 2007 Pa. Super. LEXIS 1544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-princeton-insurance-pasuperct-2007.