Elder v. Orluk

38 Pa. D. & C.3d 292, 1984 Pa. Dist. & Cnty. Dec. LEXIS 87
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedJune 4, 1984
Docketno. G.D. 78-20362
StatusPublished

This text of 38 Pa. D. & C.3d 292 (Elder v. Orluk) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elder v. Orluk, 38 Pa. D. & C.3d 292, 1984 Pa. Dist. & Cnty. Dec. LEXIS 87 (Pa. Super. Ct. 1984).

Opinion

. SCHWARTZ, J.,

On May 30, 1977, defendant, Adam Orluk was involved in an automobile accident with plaintiff George R. H. Elder. The accident occurred on Memorial Day in the Borough of Harrisville, which is additional defendant. Orluk had automobile liability insurance with Don-egal Mutual Insurance Company, the- garnishee, which provided $15,000 coverage per person for bodily injury, and $25,000 for property damage and payment of legal expenses, costs and interest.

[293]*293’ As a result of the accident, two law suits were filed by Elder, one for bodily injury and one for property damage. The two cases were consolidated for trial. A jury trial was held in May of 1981. The jury returned a verdict in Elder’s favor in the amount of $250,000. Negligence was apportioned as follows: Elder, 25 percent; Orluk, 60 percent; and the Borough of Harrisville, 15 percent. Orluk was liable for $112,500 and the Borough of Harrisville for $75,000.

On June 8, 1981, the trial judge entered an amended molded verdict to reflect the delay damages pursuant to Rule 238 of the Pennsylvania Rules of Civil Procedure. These delay damages were in the amount of $29,948.63. On September 8, 1982, judgment was entered against defendants for $234,356 .which reflected the original verdict of $187,500 plus the delay damages, plus $16,907.37 in. interest on the verdict from May 22, 1981 through September 7, 1982. In addition, plaintiff filed his bill of costs which produced a total record cost of $769.17.

On September 8, 1982, garnishee Donegal Mutual Insurance Company offered in writing to pay $15,000 to plaintiff in exchange for a joint tort-feasor release of both Orluk and Donegal. Plaintiff did not accept this offer. On April 22, 1983, plaintiff filed a motion for summary judgment. This motion was originally denied on October 18, 1983 because there were genuine issues of material fact to resolve. In order to have the issues resolved, plaintiff-Elder and garnishee Donegal filed a stipulation as to all relevant facts together with a motion to reconsider. The motion was granted and the summary judgment was reargued before this court.

The material issue before the court is what should the garnishee be liable for, considering that there [294]*294was a $15,000 policy limit for personal damage. Donegal paid the plaintiff $15,459.59 on March 26, 1984, *which represents the $15,000 'coverage for bodily injury provided in Orluk’s insurance policy; $384.59 toward Elder’s claim for record costs and $75 for representing the unsubrogated portion of Elder’s property damage claim. Should Donegal be liable for amounts in excess of their policy limits, liability for interest accrued on the verdict, delay damages pursuant to Rule 238 of the Pennsylvania Rules of Civil Procedure, record costs in connection with plaintiffs prosecution against Orluk and the Borough of Harrisville and the within garnishment proceedings, and reasonable attorney’s fees for the within garnishment proceedings?

Rule 238 of the Pennsylvania Rules of Civil Procedure provides that in actions for monetary relief for bodily injury, death or property damage, the court shall add compensatory damages:

“(e) if a defendant at any time prior to trial makes a written offer of settlement in a specified sum with prompt cash payment to the plaintiff, and continues that offer in effect until commencement of trial, but the offer is not accepted and the plaintiff does not recovei by award, verdict or decision, exclusive of, damages for delay,'more than 125 percent of the offer, the court or the arbitrators shall not award damages for delay for the period after the date the offer was made.”

In the case at hand, the portion of the award attributable to Orluk’s negligence exceeded 125 percent of the $15,000 offer by the garnishee. 42 Pa.C.S. §7102(b) provides:

“(b) Recovery against joint defendants; Contribution — Where recovery is allowed against more than one defendant, each defendant shall be liable for that portion of the total dollar amount awarded [295]*295as damages in a ratio of the amount of his causal negligence to the amount of causal negligence attributed to all defendants against him recovery is allowed. The plaintiff may recover the full amount of the allowed recovery from any defendant against him the plaintiff has not barred from recovery. Any defendant who is so compelled to pay more than his percentage share may seek contribution.”

Therefore, plaintiff is entitled to recover the full amount of delay damages from defendant Orluk.

What is at issue is whether or not Elder may recover these delay damages from Donegal even though Donegal made an offer of $15,000 in return for a joint tortfeasor- release of both Orluk and Donegal.

“By tolling the running of interest, this provision demonstrates the prominent goal of fostering early settlements. Undeniably, this rule serves to compensate plaintiff for the inability to utilize funds rightfully due him, but the basic aim of the rule is to alleviate delay in the disposition of cases, thereby lessening congestion in the courts.” Laundenberger v. Port Authority of Allegheny County, 496 Pa. 52 at 58, 59, 436 A.2d 147 at 151 (1981). Appeal dismissed, 456 U.S. 940, 102 Supreme Court 2002 (1982); Colodonato v. Consolidated Rail Corporation, 504 Pa. 71, 470 A.2d 475 (1983).

One must keep this purpose in mind when determining who should be held liable for the delay damages. Rule 238 is designed to encourage early settlement of cases. Therefore, we must look towards those responsible for negotiating a settlement when determining liability for the delay damages.

The case of Hill v. Letender, 131 P.L.J. 154 (C.P. Allegheny County 1982), directs itself to the question of whether or not an insurance company should [296]*296be liable for delay damages even when they offer their policy limits to plaintiffs.

“The insurance carrier for Frederika E. Stewart contends, by its settlement offer, that it should not be required to pay delay damages, Of course, that offer was surely predicated on plaintiffs releasing Frederika E. Stewart, undoubtedly by a joint tort-feasor release. The plaintiff cannot be barred from recovering delay damages by refusing that offer which certainly would have changed the conduct of the trial by the defendants.” See Hill v. Letender, supra, at page 156.

In the Hill case, as in the case at bar, the insurance company predicated its offer on receiving a joint tortfeasor release. Granting such a release could affect the conduct of the trial, the insurance company could have paid the full $15,000 policy limit to plaintiff without a joint tortfeasor release, or the amount could have been paid on account into the court. Therefore, Donegal’s offer in the present case cannot be viewed as being unqualified. As a result, the garnishee will be held liable for the payment of delay damages.

Through the insurance policy, Donegal contracted to defend lawsuits against Orluk which allege bodily injury or property damáge and:

“To pay, in addition to the applicable limits of liability:

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Related

Colodonato v. Consolidated Rail Corp.
470 A.2d 475 (Supreme Court of Pennsylvania, 1983)
Chirico v. BD. OF SUP'RS FOR NEWTON TP.
470 A.2d 470 (Supreme Court of Pennsylvania, 1983)
Incollingo v. Ewing
379 A.2d 79 (Supreme Court of Pennsylvania, 1977)
Laudenberger v. Port Auth. of Allegheny
436 A.2d 147 (Supreme Court of Pennsylvania, 1981)
Miami National Bank v. Willens
190 A.2d 438 (Supreme Court of Pennsylvania, 1963)
Cohen v. Jenkintown Cab Co.
446 A.2d 1284 (Superior Court of Pennsylvania, 1982)

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Bluebook (online)
38 Pa. D. & C.3d 292, 1984 Pa. Dist. & Cnty. Dec. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elder-v-orluk-pactcomplallegh-1984.