Mangan, J. v. Safe Auto

Superior Court of Pennsylvania·Decided December 23, 2015·No. 1991 WDA 2014·Unpublished

Opinion

J-A29039-15 NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

JAMES MANGAN, : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellee :

:

v. :

:

SAFE AUTO INSURANCE COMPANY, :

:

Appellant : No. 1991 WDA 2014

Appeal from the Judgment November 26, 2014 in the Court of Common Pleas of Allegheny County, Civil Division, No. AR 14-002796

BEFORE: FORD ELLIOTT, P.J.E., BOWES and MUSMANNO, JJ. MEMORANDUM BY MUSMANNO, J.: FILED DECEMBER 23, 2015 Safe Auto Insurance Company (“Safe Auto”) appeals from the Judgment entered against it, and in favor of James Mangan (“Mangan”), for $35,000. We affirm, but modify the verdict to $25,000.

On May 29, 2014, Mangan’s vehicle was involved in a traffic accident, and incurred significant damage. At the time of the accident, Mangan had an existing auto insurance policy with Safe Auto, which included collision coverage. After informing Safe Auto of the accident, Mangan took the vehicle to the dealership from which he purchased it for repairs, which totaled $10,100.26. Safe Auto, however, refused to pay for the repairs. Because of this, Mangan’s repaired vehicle remained in the body shop for over two months, until Mangan’s mother used her personal funds to pay for the repairs.

J-A29039-15 In July 2014, Mangan filed a Complaint against Safe Auto, in the Arbitration Division of the Allegheny County Court of Common Pleas, alleging breach of contract, and bad faith refusal to pay Mangan’s claim. In August 2014, Safe Auto filed an Answer and New Matter, asserting that it was not required to cover the damage to the vehicle under the terms of Mangan’s policy with Safe Auto. Safe Auto was represented by Jeffrey C. Catanzarite, Esquire (hereinafter “defense counsel”).

On the day the Complaint was filed, an arbitration hearing was scheduled for September 29, 2014. Because neither defense counsel nor a representative for Safe Auto appeared at the scheduled hearing time, the trial court held an ex parte trial, on the same day, pursuant to its authority

J-A29039-15 under Pa.R.C.P. 1303,1 and Allegheny County Local Rule 1303(a)(2)(1).2 After hearing argument from Mangan’s counsel, and testimony from

1 Rule 1303 provides as follows:

(a)(1) The procedure for fixing the date, time and place of hearing before a board of arbitrators shall be prescribed by local rule, provided that not less than thirty days’ notice in writing shall be given to the parties or their attorneys of record.

(2) The local rule may provide that the written notice required by subdivision (a)(1) include the following statement:

“This matter will be heard by a board of arbitrators at the time, date and place specified but, if one or more of the parties is not present at the hearing, the matter may be heard at the same time and date before a judge of the court without the absent party or parties. There is no right to a trial de novo on appeal from a decision entered by a judge.”

(b) When the board is convened for hearing, if one or more parties is not ready the case shall proceed and the arbitrators shall make an award unless the court

(1) orders a continuance, or

(2) hears the matter if the notice of hearing contains the statement required by subdivision (a)(2) and all parties present consent.

Note: It is within the discretion of the court whether it should hear the matter or whether the matter should proceed in arbitration. …

Pa.R.C.P. 1303 (some notes omitted). In the instant case, Mangan’s Complaint contained the written notice required by subsection (a)(2). 2 See PA Allegheny Cty. LR 1303(A)(2)(1) (providing that “[i]f a party fails to appear for a scheduled arbitration hearing, the matter may, if all present parties agree, be transferred immediately to a Judge of the Court of Common Pleas for an ex parte hearing on the merits and entry of a non-jury verdict, from which there shall be no right to a trial de novo on appeal.”).

J-A29039-15 Mangan, the trial court entered a verdict against Safe Auto for $35,000, which included over $24,000 in bad faith damages.

A few days after the entry of the verdict, Safe Auto filed a Motion for post-trial relief. Safe Auto asserted that the trial court should vacate the verdict, and schedule the case for a new arbitration hearing, because there was no evidence presented that defense counsel’s failure to appear was intentional, and defense counsel was not adequately notified concerning the time of the arbitration hearing. Safe Auto additionally claimed that the trial court erred by failing to (1) consider any lesser sanctions than imposing an ex parte verdict; and (2) limit the non-jury award to $25,000, in violation of Allegheny County Local Rule 1303(a)(2).3 By an Order dated November 25, 2014, the trial court denied Safe Auto’s post-trial Motion, without a hearing, and directed the prothonotary to enter a judgment in favor of Mangan for $35,000. The prothonotary entered Judgment the next day. Safe Auto then filed a timely Notice of Appeal. The trial court ordered Safe Auto to file a Pa.R.A.P. 1925(b) concise statement of errors complained of on appeal, and it timely complied. The trial court issued a Pa.R.A.P. 1925(a) Opinion.

On appeal, Safe Auto presents the following questions for our review:

1. Whether the trial court erred in entering a non-jury verdict against [Safe Auto], where [defense] counsel

3 See PA Allegheny Cty. LR 1303(A)(2)(2) (providing that “[a] non-jury verdict entered at a hearing held pursuant to Local Rule 1303(a)(2)(1) shall not exceed $25,000 (exclusive of interest and costs) to any party.”).

J-A29039-15

failed to appear at an arbitration hearing, without considering[:] whether [defense] counsel’s failure to appear was part of a pattern of improper behavior, misconduct or abuse[;] whether the failure to appear was inadvertent[;] whether any prejudice was caused by the delay[;] and whether the [trial] court gave any consideration to lesser sanctions, even though defense counsel had entered an appearance, filed an Answer, and otherwise manifested his intent to defend the case[?]

2. Whether the [trial] court [] erred in failing to vacate the verdict and remand[] the case for a new hearing on the basis of fundamental fairness and to promote the interest of justice[?]

3. Whether the [trial] court [] erred in failing to vacate the verdict and remand the case for a new hearing[,] as the court had no basis for an award of damages under 42 Pa.C.S. § 8371[?]

Brief for Appellant at 4 (issues renumbered for ease of disposition) (some capitalization omitted).4 This Court’s standard and scope of review in an appeal from a non-jury verdict is as follows:

Our appellate role in cases arising from non-jury trial verdicts is to determine whether the findings of the trial court are supported by competent evidence and whether the trial court committed error in any application of the law. The findings of fact of the trial judge must be given the same weight and effect

4 Initially, we observe that at the end of its Argument section, Safe Auto appears to raise a fourth “issue,” asserting that one of the cases that Mangan relies upon in his appellate brief is inapplicable. See Brief for Appellant at 15. However, Safe Auto did not set forth this claim in either its Rule 1925(b) Concise Statement or in the Statement of Questions Presented section of its brief. Accordingly, it is waived. See Commonwealth v. Lord, 719 A.2d 306, 309 (Pa. 1998) (holding that “[a]ny issues not raised in a 1925(b) statement will be deemed waived.”); see also Pa.R.A.P. 2116(a) (stating that “[n]o question will be considered unless it is stated in the statement of questions involved or is fairly suggested thereby.”).

J-A29039-15

on appeal as the verdict of a jury. We consider the evidence in a light most favorable to the verdict winner. We will reverse the trial court only if its findings of fact are not supported by competent evidence in the record or if its findings are premised on an error of law.

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