General Refractories Co. v. Fireman's Fund Insurance

45 Pa. D. & C.4th 159, 2000 Pa. Dist. & Cnty. Dec. LEXIS 319
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedApril 20, 2000
Docketno. 1499
StatusPublished
Cited by2 cases

This text of 45 Pa. D. & C.4th 159 (General Refractories Co. v. Fireman's Fund Insurance) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Refractories Co. v. Fireman's Fund Insurance, 45 Pa. D. & C.4th 159, 2000 Pa. Dist. & Cnty. Dec. LEXIS 319 (Pa. Super. Ct. 2000).

Opinion

BERNSTEIN, J.,

For five years, case management in Philadelphia County has been conducted pursuant to General Court Regulation 95-01. This coordinated progression of cases from filing to trial has eliminated a case backlog which had achieved epic proportions. Cases are now brought to trial in Philadelphia County within American Bar Association recommended standards for trial courts.

The clear and enforced deadlines for discovery and motion practice initially caused difficulty for many practicing members of the bar. Due to excellence in skill and cooperation in spirit, the trial bar adjusted. Philadelphia lawyers have devoted countless hours of pro bono work resolving cases as trial judges pro temp and settlement masters. The local bar has adjusted to a new and very different case management system, managing unanticipated problems with grace and cooperation, while treating opposing counsel with honesty, candor and civility. In stark contrast to the vast number of attorneys in our court, a few lawyers have seized upon enforced deadlines as an opportunity to take unfair advantage of the reasonableness and civility of opposing. Under the guise of negotiation and compromise those few who employ “slash and bum” litigation, delay legitimate discovery requests, pretend to be cooperative, dissuade recourse to discovery court, blame their client for failings and make repeated promises, all the while keeping one eye vigilantly on the clock, awaiting the moment when they can pounce upon unsuspecting prey to claim unjustified pro[162]*162tection by the passage of a deadline. Unfortunately, in the matter before the court, Fireman’s Fund Insurance Company through the action of their pro hac vice counsel has adopted this dysfunctional approach.1

This is a claim for breach of contract, breach of fiduciary duty and bad faith pursuant to 42 Pa.C.S. §8371, brought by an insured, General Refractories, against its insurance carrier, Fireman’s Fund, seeking declaratory relief and monetary damages. Plaintiffs are corporations which over many years manufactured heat resistant products used in the construction of high temperature facilities. Plaintiff is a defendant in thousands of cases seeking damages for bodily injuries resulting from exposure to asbestos contained in plaintiff’s products. Defendant, an insurance company, provided plaintiff with excess liability coverage applicable to these asbestos insurance claims.

Prior to suit, plaintiff made demand upon defendant for coverage pursuant to their policy of insurance, requesting indemnification and costs of defense. After providing defendant with all reasonably requested documentation to document their claim and after attempting to resolve these coverage questions amicably, plaintiff filed [163]*163suit. This suit seeks a judgment directing defendant to fulfill its obligations under the liability policy, requests compensatory damages for breach of contract, punitive damages, costs, and attorney’s fees pursuant to the bad faith statute.

This motion was brought by plaintiff seeking the ultimate sanction of judgment against defendant because Mr. West, the central representative of defendant before this lawsuit was filed, lied under oath at his deposition when he said documents did not exist. Plaintiff claims that pro hac vice litigation counsel for defendant knew that the testimony was perjurious when offered, did not correct the testimony, and actively concealed the documents. At his deposition, Mr. West testified that no notes of conversations with plaintiffs existed and nothing other than billing information was on his computer. In fact, computer notes of conversations and numerous computer generated e-mail messages existed. These records, which were then, and are now, on defendant’s computers, had been independently requested of defendant in discovery prior to the deposition and were also covered by the subpoena issued to Mr. West directing him to bring records to the deposition. These records were not produced.

Despite the denial at Mr. West’s deposition, defendant’s same litigation counsel used these hidden documents during a subsequent deposition of plaintiff’s principle, Barry Katz. Following Mr. Katz’ deposition, Mr. West’s deposition resumed. Mr. West then acknowledged the existence of notes. Defendant’s counsel, Mr. Butz, still alleged he did not know of their existence, and continued to refuse to produce them, claiming a need to review.

Initially presented along with a hundred other motions on other cases in discovery court, this court heard oral [164]*164argument over a four-day period, reviewed voluminous filings, memoranda, appendices and exhibits and has determined that the defendant’s conduct in concealing the West computer records and numerous other highly significant documents was intentional, inexcusable, and warrants severe sanctions.2 Indeed, defendant’s conduct throughout discovery and evidenced by disingenuous behavior during this very motion, calls into question the accuracy and completeness of all discovery to date. While actively hiding highly probative documents, defendant filed a motion for summary judgment which has providently been denied.

Unfortunately the case has a torturous discovery history. Numerous discovery orders have been entered against the defendant. On July 28, 1998, plaintiff submitted to the defendant a first set of documents requests. On June 14, 1999, 11 months later, the defendant was ordered by Administrative Judge Herron to provide full and complete answers within 20 days. After this court-ordered deadline had passed, Mr. Andrew Butz of the law firm of Gilberg and Kieman, inaccurately claimed “Fireman’s Fund has produced all relevant non-privileged documents and communications relating to this case, including all communications with plaintiffs and all non-privilege internal communications relating to plaintiffs’ coverage of insurance from Fireman’s Fund.” Six months later by letter dated December 3,1999, Mr. Butz inaccurately stated: “We can now report that we have checked the paper and electronic files kept by all persons at [165]*165Fireman’s Fund ... and have determined the following: Messrs. Preisman, Forsman, Pevey and Ibello have not retained any such electronic or paper documents outside the regular claims file for GRX.” Counsel repeatedly made other assurances of compliance.

Months later, during the several days of argument on this motion, it became clear that the discovery previously ordered by the court and overdue by 18 months had not yet been produced. On December 23, 1999, this court entered another discovery order. Following the court’s December 23, 1999 directive, hundreds of documents that should have been previously produced pursuant to Judge Herron’s order entered six months earlier, were “found.” Numerous additional documents were then “voluntarily” produced to plaintiff. Also following this court’s order, scores of documents were added to a previously submitted “privilege log.” The log of documents which defendant claims is privileged has continually expanded as new documents are “found.” Pursuant to this court’s order, a box of documents was produced for “in camera” review.3 So many new documents were produced, that defendant Fireman’s Fund filed a motion to appoint a special master claiming that actually reviewing the documents would place an undue burden on the court. That motion was denied. This court has reviewed the contents.

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Bluebook (online)
45 Pa. D. & C.4th 159, 2000 Pa. Dist. & Cnty. Dec. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-refractories-co-v-firemans-fund-insurance-pactcomplphilad-2000.