Greiner v. Erie Insurance Exchange

57 Pa. D. & C.4th 312, 2001 Pa. Dist. & Cnty. Dec. LEXIS 192
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJune 26, 2001
Docketno. 3053
StatusPublished

This text of 57 Pa. D. & C.4th 312 (Greiner v. Erie Insurance Exchange) 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
Greiner v. Erie Insurance Exchange, 57 Pa. D. & C.4th 312, 2001 Pa. Dist. & Cnty. Dec. LEXIS 192 (Pa. Super. Ct. 2001).

Opinion

HERRON, J.,

Additional defendants TYC Brother Industrial Co. Ltd. and Genera Corporation have filed preliminary objections to the joinder complaint of defendants Erie Insurance Exchange and Erie Insurance Company. In addition, plaintiff Brenda L. Foultz has filed a motion to dismiss the joinder complaint or to sever Erie’s claims against the additional defendants from this case. For the reasons set forth in this opinion, the court is ordering discovery on TYC’s objection to personal jurisdiction. All other objections are overruled, and the motion to dismiss or sever is denied.

BACKGROUND

On August 29, 1999, the plaintiff was involved in an automobile accident. At that time, the plaintiff’s vehicle was covered by an Erie insurance policy, which states that Erie:

“[Wjill pay the actual cash value for loss to stolen or damaged property, but no more than:

[314]*314“(1) What it would cost to repair or replace the property with other of like kind and quality; or

“(2) The stated amount that may be shown in the declarations.

“Actual cash value reflects fair market value, age and condition of the property at the time of the loss.” Policy a^8.

Erie inspected the plaintiff’s vehicle and prepared an estimate of repair costs based on the use of at least five parts that were not original equipment manufacturer parts. Ultimately, the repairs were made using the non-OEM parts, which the plaintiff’s first amended complaint alleges may be cheaper than, and inferior in quality to, OEM parts and may also be defective. The use of non-OEM parts allegedly is an undisclosed Erie policy that diminishes the value of the vehicle while failing to restore the insured vehicle to its pre-loss condition and fair market value.

The plaintiff brought a class action suit against Erie based on its alleged breach of the policy, violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law2 and bad faith.3 In response to Erie’s preliminary objections, the court struck the plaintiff’s demands for a jury trial but allowed her to proceed on her causes of action.

Erie subsequently joined Genera and TYC, the manufacturers of the non-OEM parts used to repair the [315]*315plaintiff’s vehicle, as additional defendants.4 According to the joinder complaint, the additional defendants represented that their parts were as good as OEM parts and that they were not defective, inferior or substandard. As a result, Erie contends, they are solely liable to the plaintiff, jointly and severally liable with Erie or liable over to Erie on the plaintiff’s claims.

In response to the joinder complaint, the additional defendants have filed the objections, in which they assert that they have been improperly joined. TYC has also asserted that the court does not have personal jurisdiction over it. In addition, the plaintiff has filed a motion to dismiss or sever, asking that the joinder complaint be dismissed or that Erie’s claims against the additional defendants be severed from the class action suit.

DISCUSSION

Because there are outstanding factual issues as to whether the court has personal jurisdiction over TYC, the court is ordering TYC and Erie to take depositions as to those issues and to file additional briefs. The joinder complaint’s allegations support joining the additional defendants, and the plaintiff has failed to establish that allowing the joinder complaint claims to proceed in tandem with the class action will be inconvenient or cause her prejudice. As such, the motion to dismiss or sever is denied, and the remaining objections are overruled.

[316]*316I. Erie’s Joinder of the Additional Defendants Is Valid

Pennsylvania Rule of Civil Procedure 1706.1 sets forth the conditions under which an additional defendant may be joined in a class action:

“Any defendant or additional defendant may only join as an additional defendant any person, whether or not a party to the action, who may be

“(1) solely liable on the plaintiff’s cause of action; or

“(2) liable over to the joining party on the plaintiff’s cause of action, or

“(3) jointly or severally liable with the joining party on the plaintiff’s cause of action.” Pa.R.C.P. 1706.1.

No Pennsylvania appellate court decisions address Rule 1706.1. However, as stated in the note accompanying Rule 1706.1, “[t]he three bases of joinder provided by this rule are identical to the bases of joinder provided by Pa.R.C.P. 2252(a)(1) through (3) governing the joinder of additional defendants generally.” 5 Accordingly, the court will look to cases addressing Rule 2252(a)(1), (2) and (3) for guidance.6

[317]*317A. The Complaint and the Joinder Complaint Are Based on the Same Cause of Action

When a party seeks to join a defendant on the basis of Rule 2252(a)(1), (2) or (3), “the only substantive limitation placed upon the right to join an additional defendant on any of these grounds is that liability must be premised upon the same cause of action alleged by the plaintiff in his or her complaint.” Gordon v. Sokolow, 434 Pa. Super. 208, 214, 642 A.2d 1096, 1099 (1994) (quoting Svetz for Svetz v. Land Tool Co., 355 Pa. Super. 230, 235, 513 A.2d 403, 405-406 (1986), alloc. denied, 515 Pa. 584, 527 A.2d 544 (1987). (quotation marks removed) Pennsylvania courts have defined “cause of action” broadly:

“‘Cause of action’ has been defined as

“[t]he fact or facts which give a person a right to judicial relief. The legal effect of an occurrence. A situation or state of facts which would entitle party to sustain action and give him right to seek a judicial remedy in his behalf.

“Black’s Law Dictionary (5th ed. 1979). The words ‘cause of action’ as used in the rule must be construed ‘to mean “damages or injuries.” ’ Staub v. Southwest Butler County School District, 263 Pa. Super. 413, 421, 398 A.2d 204, 207 (1979), aff’d, 489 Pa. 196, 413 A.2d 1082 (1980). See 8 Goodrich-Amram 2d §2252(a):6.” Svetz, [318]*318355 Pa. Super. at 235, 513 A.2d at 406.7 See also, Incollingo v. Ewing, 444 Pa. 263, 290, 282 A.2d 206, 221 (1971) (the term “cause of action” “may not be taken too literally. So long as the additional defendant’s alleged liability is related to the original claim which plaintiff asserts against the original defendant, the third party complaint is within bounds.”); Hileman v. Morelli, 413 Pa. Super. 316, 332, 605 A.2d 377, 385 (1992) (“the plaintiffs’ cause of action is to be defined as the harm of which the plaintiff complains”).

In the instant matter, the plaintiff’s cause of action, as the term is used in Rule 2252, includes the following injuries:

“Diminished vehicle value;

[319]*319“Reduced effectiveness of the manufacturer’s vehicle warranty;

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Bluebook (online)
57 Pa. D. & C.4th 312, 2001 Pa. Dist. & Cnty. Dec. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greiner-v-erie-insurance-exchange-pactcomplphilad-2001.