Daubner v. Firemans' Fund Insurance Co.

31 Pa. D. & C.4th 449, 1996 Pa. Dist. & Cnty. Dec. LEXIS 291
CourtPennsylvania Court of Common Pleas, Butler County
DecidedJune 21, 1996
Docketno. 95-10401 A.D.
StatusPublished

This text of 31 Pa. D. & C.4th 449 (Daubner v. Firemans' Fund Insurance Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Butler County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daubner v. Firemans' Fund Insurance Co., 31 Pa. D. & C.4th 449, 1996 Pa. Dist. & Cnty. Dec. LEXIS 291 (Pa. Super. Ct. 1996).

Opinion

O’BRIEN, P.J.,

Before the court is defendant’s preliminary objection to plaintiff’s complaint. For the reasons set forth in the within memorandum opinion, defendant’s preliminary objection is sustained.

Plaintiff was injured in a work-related accident on October 30, 1991. As a result of the accident, plaintiff sought medical treatment from a chiropractor on a biweekly basis. This treatment continued for some time before defendant challenged its reasonableness and necessity, and requested a review by a Utilization Review Organization.1 The Utilization Review Organization determined that plaintiff’s chiropractic treatment was not reasonable and necessary. Plaintiff’s injury was also reviewed by a workers’ compensation administrative law judge. On or about August 29, 1994, the judge determined that plaintiff was entitled to disability compensation benefits and that the chiropractic treatment plaintiff received was reasonable and necessary.

[451]*451On or about October 6, 1995, plaintiff filed a four count complaint against the workers’ compensation insurer. Plaintiff is seeking damages for breach of contract, bad faith pursuant to 42 Pa.C.S. §8371 (Purdon Pocket Part 1995), violations of the Unfair Trade Practices and Consumer Protection Law, 73 P.S. §201-1 et seq. (Purdon 1993), and negligent infliction of emotional distress. Defendant filed a preliminary objection, in the nature of a demurrer, requesting that the court dismiss plaintiff’s complaint.

It is clear that a plaintiff cannot recover damages for breach of contract, violations of the UTPCPL, and negligent infliction of emotional distress outside of the provisions of the Pennsylvania Workers’ Compensation Act, 77 P.S. §1 et seq. (Purdon Pocket Part 1995). See Kuney v. PMA Insurance Company, 525 Pa. 171, 578 A.2d 1285 (1990) (exclusivity clause of Workers’ Compensation Act denied plaintiff recovery against insurer for alleged bad faith, fraud and deceit), Santiago v. Pennsylvania National Mutual Casualty Insurance Company, 418 Pa. Super. 178, 613 A.2d 1235 (1992) (exclusivity clause of Workers’ Compensation Act denied plaintiff recovery against insurer for alleged intentional infliction of emotional distress, bad faith, misrepresentation and loss of consortium), and Winterberg v. Transportation Insurance Company, 72 F.3d 318 (3rd Cir. 1995) (exclusivity clause of Workers’ Compensation Act denied plaintiff recovery against insurer for alleged breach of contract, intentional infliction of emotional distress, bad faith pursuant to 42 Pa.C.S. §8371 and violations of the UTPCPL). It is unclear, however, whether plaintiff’s claim for damages for bad faith pursuant to 42 Pa.C.S. §8371 (Purdon Pocket Part 1995) can be maintained as a cause of action outside of the Workers’ Compensation Act.

[452]*452The exclusivity clause of the Workers’ Compensation Act, 77 P.S. §481 (Purdon 1993), is a specific statutory provision which provides:

“(a) The liability of an employer under this Act shall be exclusive and in place of any and all other liability to such employes, his legal representative, husband or wife, parents, dependents, next of kin or anyone otherwise entitled to damages in any action at law or otherwise on account of any injury or death.”

Section 481, as amended, was enacted December 5, 1974, and was effective February 3, 1975. Section 481 of the Workers’ Compensation Act provides that all liability of an insurer for a work-related injury is governed by the Workers’ Compensation Act. Section 501 of the Workers’ Compensation Act extended to insurers all immunities and protections given to employers by the Act. See 77 P.S. §501 (Purdon 1993).

42 Pa.C.S. §8371 is a general statutory provision which provides:

“In an action arising under an insurance policy, if the court finds that the insurer acted in bad faith toward the insured, the court may take all of the following actions:

“(1) Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3 percent.

“(2) Award punitive damages against the insurer.

“(3) Assess court costs and attorney fees against the insurer.”

Section 8371 was enacted February 7, 1990, and was effective July 1, 1990. Section 8371 establishes a separate and independent cause of action against insurers for bad faith in handling insurance claims. The court finds that the specific provisions of section 481 [453]*453of the Workers’ Compensation Act are in conflict with the general provisions of 42 Pa.C.S. §8371, and that the two cannot be construed to give effect to both.

The Rules of Construction of the Pennsylvania Statutes provide:

“Whenever a general provision in a statute shall be in conflict with a special provision in the same or another statute, the two shall be construed if possible, so that effect may be given to both. If the conflict between the two positions is irreconcilable, the special provisions shall prevail and shall be construed as an exception to the general provision, unless the general provision shall be enacted later and it shall be the manifest intention of the General Assembly that such provision shall prevail.”! Pa.C.S. §1933 (Purdon 1995). (emphasis added)

Whereas the court finds that the specific provisions of section 481 of the Workers’ Compensation Act are in conflict with the general provisions of 42 Pa.C.S. §8371, and that the two cannot be construed to give effect to both, and whereas 42 Pa.C.S. §8371 was enacted after section 481 of the Workers’ Compensation Act, pursuant to the rules of statutory construction, section 481 shall prevail and be construed as an exception to the general provisions of 42 Pa.C.S. §8371 unless the court finds that it was the manifest intent of the legislature that 42 Pa.C.S. §8371 prevail over section 481 of the Workers’ Compensation Act.

As evidence of the legislature’s manifest intent that 42 Pa.C.S. §8371 prevail over section 481 of the Workers’ Compensation Act, plaintiff cites the court to section 31(c) of 1990 Pa. Laws 6 (Act 6 of February 7, 1990 P.L. 11), which Act established 42 Pa.C.S. §8371. Section 31(c) of 1990 Pa. Laws 6 provides that “all other [454]*454Acts or parts of Acts are repealed insofar as they are inconsistent with this Act.” The Superior Court relied on section 31(c) in Okkerse v. Prudential Property and Casualty Insurance Co., 425 Pa. Super. 396, 404, 625 A.2d 663, 667 (1993), holding that in a case of conflict between section 8371 and the No-Fault Act, section 8371 should prevail since “[it] was enacted later than the No-Fault Act and this repealer section indicates that the General Assembly intended it to prevail over any inconsistent statutes.”

Although the court agrees with the Superior Court’s holding in Okkerse, supra,

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Related

Lewis v. School Dist. of Philadelphia
538 A.2d 862 (Supreme Court of Pennsylvania, 1988)
Okkerse v. Prudential Property and Casualty Insurance Co.
625 A.2d 663 (Superior Court of Pennsylvania, 1993)
Kuney v. PMA Insurance
578 A.2d 1285 (Supreme Court of Pennsylvania, 1990)
Tp. of Moon v. POL. OFFICE. OF TP. OF MOON
498 A.2d 1305 (Supreme Court of Pennsylvania, 1985)
Santiago v. Pennsylvania National Mutual Casualty Insurance
613 A.2d 1235 (Superior Court of Pennsylvania, 1992)

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Bluebook (online)
31 Pa. D. & C.4th 449, 1996 Pa. Dist. & Cnty. Dec. LEXIS 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daubner-v-firemans-fund-insurance-co-pactcomplbutler-1996.