Graziani v. Randolph

856 A.2d 1212, 2004 Pa. Super. 319, 2004 Pa. Super. LEXIS 2684
CourtSuperior Court of Pennsylvania
DecidedAugust 16, 2004
StatusPublished
Cited by34 cases

This text of 856 A.2d 1212 (Graziani v. Randolph) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graziani v. Randolph, 856 A.2d 1212, 2004 Pa. Super. 319, 2004 Pa. Super. LEXIS 2684 (Pa. Ct. App. 2004).

Opinions

OPINION BY

JOHNSON, J.:

¶ 1 Eric L. Randolph and Burlington Motor Carriers, Inc., an Indiana Corporation (collectively, Burlington; individually, Randolph and BMC), appeal the trial court’s order dismissing their Motion to Strike Complaint and Strike or Open Default Judgment, their Motion for Demand for Jury Trial, and their Petition for Recu-sal or Hearing on Recusal. By the same order, the trial court also granted in part Burlington’s Motion for Reconsideration, thus permitting Burlington to undertake pre-trial discovery and present expert testimony “provided that their efforts to do so shall not further delay trial .... ” Order, 7/22/03. They argue that the default judgments are void ab initio because Burlington had filed for bankruptcy before Tina A. Graziani filed the complaint underlying this action, and that federal law therefore automatically stayed Graziani’s suit, notwithstanding the bankruptcy court’s order apparently permitting the continuation of that litigation. We find no merit in Burlington’s appeal, thus we affirm.

¶ 2 On November 25, 2000, a commercial tractor-trailer owned by BMC and driven by Randolph allegedly struck Graziani’s car in Beaver County, Pennsylvania, causing Graziani severe and permanent injuries. On December 15, 2000, Graziani’s counsel informed BMC by letter of Grazia-ni’s pending claim arising from the accident. On January 8, 2001, receipt of this letter was acknowledged by Corporate Claims Management, Inc. (CCM), which identified itself as “the third party administrator handling automobile liability claims for” BMC. By this letter, CCM requested that Graziani provide documentation pertaining to the accident in question.

¶ 3 On July 9, 2001, BMC filed a Bankruptcy Petition under Chapter 11 in United States Bankruptcy Court for the Southern District of Indiana, Indianapolis Division. Graziani received no notice of BMC’s bankruptcy filing.

¶ 4 On March 22, 2002, having no knowledge of BMC’s bankruptcy petition, Gra-ziani filed a complaint in the Court of Common Pleas of Beaver County, seeking relief against both BMC and Randolph. BMC and Randolph were served with copies of the Complaint. On June 10, 2002, after Randolph and BMC failed to appear or otherwise acknowledge Graziani’s complaint, Graziani was awarded default judgments against both parties.

¶ 5 On November 1, 2002, Graziani moved the trial court to schedule a non-jury trial to liquidate the default judgments entered in June 2002. That motion was denied, however, when counsel entered an appearance for both BMC and Randolph and produced a stay order issued by the Bankruptcy Court in connection with BMC’s bankruptcy petition.

¶ 6 Settlement-related discussions between the parties ensued, but when these failed to result in agreement, on January 23, 2003, Graziani secured an Agreed Order from the bankruptcy court modifying [1215]*1215the automatic stay effective in connection with BMC’s bankruptcy petition. Due to its importance to this litigation, we include below all material portions of that order.

AGREED ORDER MODIFYING AUTOMATIC STAY

Robert S. Koor, Trustee herein (the “Trustee”), and Tina A. Graziani, (“Plaintiff’) herewith agree that the automatic stay in this bankruptcy case arising pursuant to Section 362 of the Bankruptcy Code be modified as specified below, ask the Court to enter this Agreed Order, and in support thereof state as follows:

1. The above-captioned Debtors filed their voluntary Petitions for Relief under Chapter 11 of the Bankruptcy Code on July 9, 2001 (the “Petition Date”), and operated their businesses as Debtors-in-Possession until subsequent conversion of their cases.
2. Each of the Debtors’ cases was converted to a case under Chapter 7 of the Bankruptcy Code by Order of this Court May 17, 2002.
5. Plaintiff is an individual who has filed a currently pending suit against one or more of the Debtors in The Court of Common Pleas of Beaver County, Pennsylvania under Case No. 10501 of 2002 (the “Pending Action”).
6. The Plaintiffs claim in the Pending Action arises from events occurring prior to the Petition Date.
7. The Plaintiff wishes to continue litigation of the Pending Action.
8. The Trustee intends to exercise his discretion pursuant to F.R.P.B. 6009 not to appear or defend in the Pending Action.
9. The Trustee has no objection to the continued litigation of the Pending Action except to the extent that such continued litigation creates a financial burden upon the bankruptcy estates.
10. The Trustee and the Plaintiff hereby agree:
a. that the automatic stay in these cases arising pursuant to Section 362 of the Bankruptcy Code should be modified to permit continued litigation of the Pending Action against the Debtors;
b. that the Plaintiff shall bear all costs and expenses of any discovery demands and of any other demands or requests addressed to the Trustee or the bankruptcy estates; and
c. that the Plaintiff shall pay all such costs and expenses in advance of their incurrence by the bankruptcy estates.
d. That, unless further ordered by this Court, the Plaintiff may enforce any judgment or settlement obtained in the Pending Action or otherwise only, but without further order of court, to the extent of either (a) the Debtors’ insurance coverage (including any deposits or bonds securing deductibles) or (b) assets of non-debtors.

Agreed Order Modifying Automatic Stay (hereinafter, “Agreed Order”), filed January 16, 2003. The Honorable Anthony J. Metz, United States Bankruptcy Court, approved the Agreed Order on January 23, 2003.

¶ 7 On February 19,2003, Graziani again moved the trial court to schedule a non-jury trial to liquidate damages, this time affixing to her motion a copy of the Agreed Order. Burlington did not oppose the motion. The trial court granted Graziani’s [1216]*1216request, scheduling the requested non-jury trial for May 5, 2008.

¶ 8 On May 1, 2003, on the eve of the scheduled hearing, Burlington filed the motions that underlie this appeal. These included a Motion for Demand for Jury Trial, a Motion for Reconsideration, a Motion to Strike Complaint and to Strike and/or Open Default Judgments (hereinafter, “Motion to Strike or Open”), and a Petition for Recusal or Alternatively for Hearing on Recusal. By Opinion dated May 19, 2003, the trial court responded to Burlington’s petition and motions, granting in part Burlington’s Motion for Reconsideration, but denying the balance of Burlington’s motions and its petition concerning recusal. The trial court also found, where the language adopted by the bankruptcy court clearly identifies specific pending litigation, and uses language indicating an intent that the referenced litigation should proceed as originally filed, that the plaintiff need not file any new documents, but rather may stand on his or her previously filed complaint. Trial Court Opinion (T.C.O.), 5/19/03, at 5-8, 9.

¶ 9 From this order Randolph and BMC appeal, presenting the following questions for our review:

1.

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Cite This Page — Counsel Stack

Bluebook (online)
856 A.2d 1212, 2004 Pa. Super. 319, 2004 Pa. Super. LEXIS 2684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graziani-v-randolph-pasuperct-2004.