Gallagher v. Pennsylvania Liquor Control Board

883 A.2d 550, 584 Pa. 362, 2005 Pa. LEXIS 2138
CourtSupreme Court of Pennsylvania
DecidedSeptember 28, 2005
Docket49 EAP 2004
StatusPublished
Cited by29 cases

This text of 883 A.2d 550 (Gallagher v. Pennsylvania Liquor Control Board) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gallagher v. Pennsylvania Liquor Control Board, 883 A.2d 550, 584 Pa. 362, 2005 Pa. LEXIS 2138 (Pa. 2005).

Opinions

OPINION

Justice SAYLOR.

Appeal was allowed to consider whether a trial court presiding over a civil negligence case erred in refusing to bifurcate trial to avoid exposing jurors to information from which it could be inferred that the plaintiff may have received some compensation for his injuries from a collateral source.

In November of 1999, while working as an inventory picker in a warehouse operated by the Pennsylvania Liquor Control Board (the “PLCB”), Appellee, John Gallagher, fell through an opening in an elevated walkway. He later commenced a negligence action against the PLCB; World Transportation, Inc., a logistical company that provided distribution and warehousing support to the PLCB; Appellant, Trans Freight Systems, Inc., which was also involved in the warehouse operations and which was World Transportation’s parent corporation; and others. Among other injuries, Appellee claimed to have suffered a disabling brain injury.

World Transportation and Appellant each asserted that it was Appellee’s employer, and therefore, was immune from civil suit in the courts of law under the employer-immunity provisions of the Pennsylvania Workers’ Compensation Act, 77 P.S. §§ 1-1041, 2501-2626. See 77 P.S. § 481. Appellee made a pre-trial request pursuant to Pennsylvania Rule of Civil Procedure 213(b), styled as a motion in limine, to have the question of which entity was his employer and the remaining trial issues bifurcated and otherwise to prohibit the mention of workers’ compensation during the proposed, separate [365]*365general liability and damages proceedings. Appellant acknowledged that the collateral source rule precludes references to other sources of recovery that are deemed irrelevant at trial, in order to avoid the possibility that an improper inference by jurors of a double recovery on the plaintiffs part might diminish due and proper damages which would otherwise be assessed against the tortfeasor. See, e.g., Lobalzo v. Varoli, 409 Pa. 15, 21, 185 A.2d 557, 561(1962). Appellant contended, however, that such collateral source information is admissible for limited purposes where it has specific relevance to a liability issue in a civil case. In this regard, Appellant posited that its payment of workers’ compensation premiums on Appellee’s behalf tended to show that it was, in fact, Appellee’s employer, and thus, not a proper party to the action. The trial court agreed with Appellant’s position on this point and denied relief on the motion, but with the proviso that the “parties may mention workers’ compensation only to show that premiums were paid on behalf of plaintiff.” See Reproduced Record (“R.R.”), at 286a; accord R.R., at 291a (reflecting the trial court’s admonishment to counsel that “any mention of a collateral source would be barred, any payments”).

Despite the trial court’s ruling, in his opening statement, Appellant’s counsel made specific reference to Appellee’s receipt of workers’ compensation benefits, as follows:

[H]ow will we show you that Trans Freight Systems was in fact the employer under the law of John Gallagher? ... Workers compensation benefits. How did Mr. Gallagher receive workers compensation benefits after this incident occurred? Trans Freight Systems paid the workers compensation benefits.

R.R., at 308a-309a. Appellee’s counsel did not assert a contemporaneous objection; however, after the jury retired for the day, the trial judge spoke with counsel and criticized the remark of Appellant’s counsel as a violation of his ruling, as follows:

The Court: ... [TJhere was a comment in [Appellant’s counsel’s] opening regarding workers’ comp benefits. My [366]*366ruling was only that your client or anybody could mention that they paid premiums on his behalf. It had nothing to do with him getting benefits. If you misunderstood—
[Appellant’s Counsel]: I did. I apologize, Your Honor.
The Court: He was carried on the books as an employee and they made payments for premiums. But that is it.
[Appellant’s Counsel]: Okay. I apologize, Your Honor, if I misunderstood your ruling.

See R.R., at 322a-323a.

Prior to the resumption of the trial the next day, Appellee’s counsel expressed continuing concern regarding the effect of the opening remarks, and the trial court indicated its own discomfort in light of the recent decision of the Superior Court in Nigra v. Walsh, 797 A.2d 353 (Pa.Super.2002) (awarding a new trial on the basis that a defendant/motorist violated the collateral source rule by suggesting to the jury that the plaintiff/passenger was receiving federal disability benefits, and because it was impossible to determine the effect of such violation on the verdict). For this reason, the court granted Appellee’s request to bar any and all references to workers’ compensation, including premium payments. See R.R., at 337a-338a (reflecting the trial court’s indication “I am very happy to just eliminate any issue with respect to the premiums, with respect to the benefits[;] [y]ou will have to prove employment another way”). The court subsequently stated to the jurors:

Folks, I forgot to mention before we started. In one of the opening statements yesterday, there was some mention of workers comp benefits. Please disregard that. That has no place in this case and should not in any way be considered by you in your deciding this case.

R.R., at 410a-411a.

Nonetheless, the subject of workers’ compensation resurfaced during the cross-examination of Appellee’s father, who was asked by Appellant’s counsel about his son having “had several prior workers’ compensation or work related injuries.” [367]*367R.R., at 425a. Appellee’s counsel objected and moved for a mistrial in an interchange that proceeded as follows:

[Appellee’s Counsel]: Motion for [a mistrial], Your Honor, reluctantly. Even if we didn’t have the issues in this case that we have related to employment, in the limited rulings you made about allowing information about workers compensation premiums.
The Court: That’s changed.
[Appellee’s Counsel]: I understand that. We’re still, I think, entitled to a [mistrial].
My recollection is on Monday after opening you once again said or you said, defense counsel not to mention workers compensation benefits. That was not the scope of your ruling. We now have workers compensation coming in again, and it was phrased as other or additional, I forgot which words preceded workers compensation claims. I reluctantly, believe me, very reluctantly, I move for a [mistrial].
[Appellant’s Counsel]: Your Honor, the question was, it was immediately rephrased. It was a prior work related injury. The Court: No. No. That’s not what you said. You used the term workers compensation.
[Appellant’s Counsel]: Your Honor, that was done—
The Court: Was this another mistake?
[Appellant’s Counsel]: Your Honor, that was done in error. I indicated immediately, I rephrased it to say work related injury.

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Bluebook (online)
883 A.2d 550, 584 Pa. 362, 2005 Pa. LEXIS 2138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gallagher-v-pennsylvania-liquor-control-board-pa-2005.