First Energy/Pennsylvania Power Co. v. Waller

16 Pa. D. & C.5th 461
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedSeptember 7, 2010
Docketno. 11549 of 2008, C.A.
StatusPublished

This text of 16 Pa. D. & C.5th 461 (First Energy/Pennsylvania Power Co. v. Waller) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Energy/Pennsylvania Power Co. v. Waller, 16 Pa. D. & C.5th 461 (Pa. Super. Ct. 2010).

Opinion

PICCIONE, J,

Before this court for disposition is defendants’ petition to open and/or strike default judgment. The current action arises out of an incident that took place on September 24, 2007 in which a 1997 Ford Expedition Sports Utility Vehicle owned by defendant Orlando Waller and operated by defendant Kia M. Waller struck and severed a utility pole owned by First Energy/Pennsylvania Power Company (plaintiff). On September 16,2008, plaintiff filed a complaint alleging that defendants Orlando and Kia M. Waller were negligent and seeking $16,732.50 in damages plus 6 percent interest from the date of the accident. Service was attempted but unsuccessful at both defendants’ residences on September 16,2008 and October 8,2008.

During the following year, plaintiff was in communication with defendants’ insurance carrier, Ohio Casualty, regarding a potential agreement involving Ohio Casualty paying plaintiff $8,617.52 under defendants’ auto policy in exchange for a release of the claims. Under the potential agreement, the defendants were to pay the amount in excess of the policy limits in the amount of $8,115,00. After Ohio Casualty and plaintiff failed to enter into the agreement, plaintiff filed a praecipe to reinstate complaint on March 15,2010. Plaintiff successfully served both defendants on March 22, 2010. On April 12, 2010, plaintiff sent defendants notice of its intent to seek default judgment in this case if defendants did not take appropriate action within 10 days. Defendants took no action in response to the notice, and on May 7, 2010, plaintiff filed a praecipe for default judgment, requesting that judgment be entered against defendants for their failure to file an answer to plaintiff’s [463]*463complaint. On that same date, judgment was entered against defendants in the amount of $19,582.47.

On June 9, 2010, defendants filed the instant petition to open and/or strike default judgment. In the petition, defendants claim that Ohio Casualty did not learn of the default judgment until June 2,2010 and that defendants were not aware of the effect of the 10-day notice and filing of default judgment. Defendants request that the court open or strike the default judgment and allow the claim to proceed on the merits. Plaintiff filed an answer to defendants’ petition on June 30,2010. The court heard oral argument regarding defendants’ petition on August 30, 2010.

In considering a petition to open a default judgment, a court must determine whether equitable considerations exist which justify granting a defendant, against whom a default judgment has been entered, an opportunity to have the case decided on the merits. Atlantic Credit and Finance Inc. v. Giuliana, 829 A.2d 340, 343 (Pa. Super. 2003).

“Generally speaking, a default judgment may be opened if the moving party has (1) promptly filed a petition to open the default judgment, (2) provided a reasonable excuse or explanation for failing to file a responsive pleading, and (3) pleaded a meritorious defense to the allegations contained in the complaint.” Myers v. Wells Fargo Bank N.A., 986 A.2d 171, 175-76 (Pa. Super. 2009). (footnote omitted)

All three criteria must be met in order to open a default judgment. Id. at 176.

With respect to the first requirement:

[464]*464“The timeliness of a petition to open a judgment is measured from the date that notice of the entry of the default judgment is received. The law does not establish a specific time period within which a petition to open a judgment must be filed to qualify as timeliness. Instead, the court must consider the length of time between discovery of the entry of the default judgment and the reason for delay....
“In cases where the appellate courts have found a ‘prompt’ and timely filing of the petition to open a default judgment, the period of delay has normally been less than one month.” U.S. Bank N.A. v. Mallory, 982 A.2d 986, 995 (Pa. Super. 2009) (quoting Castings Condominium Association Inc. v. Klein, 444 Pa. Super. 68, 73, 663 A.2d 220, 223 (1995). (citations omitted)).

Whether the second requirement is met depends on the specific circumstances of the case. Myers, 986 A.2d at 176. Where the failure to file a responsive pleading “was due to an oversight, an unintentional omission to act, or a mistake of the rights and duties of the appellant, the default judgment may be opened.” Flynn v. American West Airlines, 742 A 2d 695, 699 (Pa. Super. 1999). However, “[ejxcusable negligence must establish an oversight rather than a deliberate decision not to defend.” Seeger v. First Union National Bank, 836 A.2d 163, 167 (Pa. Super. 2003). Finally, in order to satisfy the third requirement and state a meritorious defense, “a petitioner need only allege a defense that entitles him to a judgment in his favor, if proven at trial.” Boatin v. Miller, 955 A.2d 424, 429 (Pa. Super. 2008).

In the case sub judice, 33 days passed between the entry of default judgment on May 7, 2010 and the filing [465]*465of the instant petition on June 9,2010. However, timeliness of a petition is measured from the date that notice of the default judgment was received and not from the entry date. Mallory, 982 A.2d at 995. While it is not known when defendants received actual notice of the entry of the default judgment, it is clear that the time period between the receipt of notice and the filing of the petition is sufficiently close to the general month-long delay standard cited in Mallory to permit a finding that the petition was timely or a finding that it was untimely. Because the Superior Court has previously determined that a similar month-long delay did not render a petition untimely, this court also finds that defendants’ petition was promptly filed. Reid v. Boohar, 856 A.2d 156, 162 (Pa. Super. 2004).

Defendants claim that their failure to file a responsive pleading to plaintiff’s complaint was due to confusion and misinformation created by ongoing settlement negotiations between defendant and Ohio Casualty. The Superior Court has held that a layperson establishes “a legitimate excuse for not filing a timely response . . . where he entrusted his claim to his insurance carrier and reasonably relied on its representation, and the insurer mistakenly failed to file an answer. Id. at 157. In so holding, the court in Reid distinguished cases involving “a sophisticated insured with some procedure in place for monitoring claims” and indicated that it would not hold “a layperson, strictly liable for his failure to seek reassurance from his insurer after he received notice . . . intent to enter default judgment.” Id. at 160-61 (citing Duckson v. Wee Wheelers Inc., 423 Pa. Super. 251, 260, 620 A.2d 1206

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Related

Castings Condominium Ass'n, Inc. v. Klein
663 A.2d 220 (Superior Court of Pennsylvania, 1995)
Cintas Corp. v. Lee's Cleaning Services, Inc.
700 A.2d 915 (Supreme Court of Pennsylvania, 1997)
Duckson v. Wee Wheelers, Inc.
620 A.2d 1206 (Superior Court of Pennsylvania, 1993)
Myers v. Wells Fargo Bank, N.A.
986 A.2d 171 (Superior Court of Pennsylvania, 2009)
Attix v. Lehman
925 A.2d 864 (Superior Court of Pennsylvania, 2007)
US Bank N.A. v. Mallory
982 A.2d 986 (Superior Court of Pennsylvania, 2009)
Seeger v. First Union National Bank
836 A.2d 163 (Superior Court of Pennsylvania, 2003)
Resolution Trust Corp. v. Copley Qu-Wayne Associates
683 A.2d 269 (Supreme Court of Pennsylvania, 1996)
Atlantic Credit & Finance, Inc. v. Giuliana
829 A.2d 340 (Superior Court of Pennsylvania, 2003)
Reid v. Boohar
856 A.2d 156 (Superior Court of Pennsylvania, 2004)
Boatin v. Miller
955 A.2d 424 (Superior Court of Pennsylvania, 2008)

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Bluebook (online)
16 Pa. D. & C.5th 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-energypennsylvania-power-co-v-waller-pactcompllawren-2010.