PECHNER, DORFMAN, ETC. v. Pa. Ins. Dept.

452 A.2d 230, 499 Pa. 139
CourtSupreme Court of Pennsylvania
DecidedNovember 10, 1982
StatusPublished
Cited by7 cases

This text of 452 A.2d 230 (PECHNER, DORFMAN, ETC. v. Pa. Ins. Dept.) 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
PECHNER, DORFMAN, ETC. v. Pa. Ins. Dept., 452 A.2d 230, 499 Pa. 139 (Pa. 1982).

Opinion

499 Pa. 139 (1982)
452 A.2d 230

PECHNER, DORFMAN, WOLFFE, ROUNICK AND CABOT, Appellants,
v.
PENNSYLVANIA INSURANCE DEPARTMENT, et al., Appellees.[*]
John NAGLE and Yonish Trucking, Inc., Appellants,
v.
PENNSYLVANIA INSURANCE DEPARTMENT, et al., Appellees.[*]

Supreme Court of Pennsylvania.

Argued April 13, 1982.
Decided November 10, 1982.

*140 *141 Leonard Schaeffer, Stanley A. Uhr, Philadelphia, for appellants.

Hannah Leavitt, Asst. Atty. Gen., Harrisburg, for Ins. Dept.

Thomas R. Balaban, William R. Balaban, Harrisburg, for Coal Mine Comp. Rating Bureau, et al.

Robert J. Demer, Harrisburg, for appellees.

Before O'BRIEN, C.J., and ROBERTS, NIX, LARSEN, FLAHERTY, McDERMOTT and HUTCHINSON, JJ.

OPINION

McDERMOTT, Justice.

These are consolidated appeals of Commonwealth Court orders disposing of numerous preliminary objections raised by appellees in opposition to petitions for review filed by *142 appellants.[1] Appellants are coal haulers,[2] who, under the Workmen's Compensation Act,[3] are required to purchase black lung disease insurance for protection of their employees. This coverage was mandated by a 1973 federal statute.[4] The initial rates of premiums for this insurance were set by the Coal Mine Compensation Rating Bureau ("Bureau"), which is authorized by the Insurance Company Law of 1921,[5] and is empowered to classify risks, establish underwriting rules and set premium rates under the supervision of the Insurance Commissioner ("Commissioner").

The premium rates, as originally promulgated, made no distinction between coal haulers, such as appellants, and tunnel mine operators. Appellants argued that a lower premium should have been set for their employees since coal haulers' activities are confined to the surface where risk of contracting black lung disease is less severe. To seek redress of this imbalance, appellants filed a petition for review in the nature of an action in equity in Commonwealth Court (No. 1805 C.D. 1976), which was dismissed with instructions that administrative procedures mandated in 40 P.S. § 814 should be followed.[6] Appellants then sought an administrative *143 hearing before the Commissioner. On February 7, 1977, the Commissioner ordered the Bureau to re-evaluate the premiums but declined to rule on appellants' request for a full refund of all overpaid premiums dating back to 1973 when they were first paid.

Pursuant to the Commissioner's February order (hereinafter "February order"), a new, lower premium rate was set by the Bureau. This new rate was implemented in April 1977 with the Commissioner's approval and without objection from appellants. The Commissioner entered a final order in August of 1977 (hereinafter "August order") which granted a refund to appellants dating back to the February order.

While administrative proceedings were still pending following the February order, appellants filed the instant petition for review seeking both legal and equitable relief. As grounds for equitable jurisdiction, appellants alleged class status (i.e., a class of one thousand or more similarly situated coal haulers), and challenged the adequacy of relief provided by the then available administrative procedures under 40 P.S. § 814.

Preliminary objections to this petition for review were filed by the Insurance Department, other Commonwealth agencies (collectively "Commonwealth appellees") and the Commissioner, as well as by the numerous insurance companies ("non-Commonwealth appellees"), which participated in *144 the challenged rate setting, provided the coverage in question and were named as co-defendants by appellants in the petition.

The Commonwealth Court, speaking through the late President Judge Bowman, denied appellants' request for equitable relief against the Commissioner, the Commonwealth and non-Commonwealth appellees and dismissed all legal claims against the Commonwealth appellees on the basis of sovereign immunity.[7] Concluding that it lacked jurisdiction over the remaining legal claims against the non-Commonwealth appellees, the lower court then remanded these claims to the appropriate courts of common pleas. See Nagle v. Pennsylvania Ins. Dept., 46 Pa.Cmwlth. 621, 406 A.2d 1229 (1979).

Appellants brought this direct appeal, presenting the following two issues for our review: (1) whether appellants are entitled to invoke the equity jurisdiction of the Commonwealth Court; (2) whether sovereign immunity bars appellants' trespass claims against the Commonwealth appellees. Because we conclude that the statute creating sovereign immunity cannot be retroactively applied to preclude the trespass claims against the Commonwealth appellees, we reverse in part.

I

We agree with the Commonwealth Court that its equitable jurisdiction does not extend to appellants' claims for equitable relief. It is well settled that equity will not intervene before all available legal remedies are exhausted.[8]*145 Robinson v. Abington Education Association, 492 Pa. 218, 423 A.2d 1014 (1980); Calabrese v. Collier Township Municipal Authority, 430 Pa. 289, 240 A.2d 544 (1968); Pennsylvania Life Insurance Co. v. Pennsylvania National Life Insurance Co., 417 Pa. 168, 208 A.2d 780 (1965); Herr Abstract Co. v. Vance, 284 Pa.Super. 111, 425 A.2d 444 (1980); Jostan Inc. v. Mt. Carmel Industrial Fund, 256 Pa.Super. 353, 389 A.2d 1160 (1978). In this case, appellants attempted to resort to equity without pursuing and exhausting the statutorily prescribed administrative remedies set forth under former Section 814.

The Commissioner's August order, which addressed the merits of this controversy and denied the refund sought by appellants, had not been issued at the time appellants attempted to invoke the Commonwealth Court's equitable jurisdiction.[9] Appellants' prayer for equitable jurisdiction was thus premature because appellants had not exhausted their administrative remedies before the Commissioner prior to seeking equity.[10] The Commonwealth Court was therefore *146 correct in declining to consider appellants' equitable claims.

II

Appellants' second contention is that the Commonwealth Court's retroactive application of 42 Pa.C.S.A. § 5110 ("Act 152")[11] to bar their cause of action in trespass against the Commonwealth appellees was unconstitutional under Article 1, Section 11 of the Pennsylvania Constitution.[12] On this question we are in agreement with appellants and, accordingly, reverse.

Appellants' petition for review, as pointed out by the able opinion of the late President Judge Bowman in the court below, contains both tortious and equitable prayers for relief.

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452 A.2d 230, 499 Pa. 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pechner-dorfman-etc-v-pa-ins-dept-pa-1982.