Pendleton v. Aguilar

827 N.E.2d 614, 2005 Ind. App. LEXIS 882, 2005 WL 1176204
CourtIndiana Court of Appeals
DecidedMay 19, 2005
Docket45A03-0404-CV-153
StatusPublished
Cited by26 cases

This text of 827 N.E.2d 614 (Pendleton v. Aguilar) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pendleton v. Aguilar, 827 N.E.2d 614, 2005 Ind. App. LEXIS 882, 2005 WL 1176204 (Ind. Ct. App. 2005).

Opinions

OPINION

RILEY, Judge.

STATEMENT OF THE CASE

Appellant-Plaintiff, Julian Pendleton (Pendleton), appeals the trial court's Order granting Appellees'-Defendants', Manuel Aguilar and National Transportation Corporation (collectively, Aguilar), Motion for Set-off for workers' compensation benefits. On cross-appeal, Aguilar appeals the trial court's Order denying his Motion to Correct Error.

We reverse, in part, and remand, in > part.

ISSUES

Pendleton raises three issues on appeal, which we consolidate and restate as the following two issues:

(1) Whether the trial court erred in entering a post-verdict set-off of collateral source reimbursement where evidence of the collateral source reimbursement was presented to a jury and the jury was instructed on non-duplication of recovery; and
(2) Whether the trial court violated the provision of the Illinois Guaranty Fund by entering a post-verdict set-off of collateral source reimburse ments.

On cross-appeal, Aguilar raises three issues, which we consolidate and restate as the following two issues:

(1) Whether the trial court erred in denying Aguilar's Motion to Correct Error requesting a new trial pursuant to Indiana Trial Rule 59(J); and
(2) Whether the trial court erred in denying the introduction of the collateral source reimbursement made to [617]*617Pendleton by his employer's uninsured motorist carrier.

FACTS AND PROCEDURAL HISTORY

On April 30, 1999, Pendleton, a Florida resident, was involved in a truck accident when the tractor trailer he was operating was struck from the rear on westbound I-80 near Hammond, Indiana, by Aguilar, an Illinois resident. At the time, Pendle-ton was employed by Timely Transport; Aguilar was working for National Transportation Corporation. As a result of this accident, Pendleton suffered a nerve-impinging dise herniation and has been unable to return to work.

On February 1, 2001, Pendleton filed a complaint for damages against Aguilar and National - Transportation - Corporation. During the pendency of the action, the Commonwealth Court of Pennsylvania declared National Transportation Corporation's insurance carrier, Reliance Insurance Company (Reliance), insolvent. The Pennsylvania Court ordered the appointed liquidator to make arrangements for payment of claims against the insolvent Reliance through the appropriate insurance guaranty funds.

On September 8, 2008, Aguilar filed his Motion to Enforce the Non-Duplication of Recovery Provisions of the Illinois Insurance Guaranty Act (Illinois Act), request, ing the trial court to determine the amount of the set-offs which would apply pursuant to the Illinois Act as well as to rule on the admissibility of evidence of collateral source payments made to Pendleton under the Indiana Collateral Source Rule. On October 9, 2008, after receiving Pendle-ton's Response, the trial court held a hearing on Aguilar's motion. Thereafter, on October 29, 2003, the trial court ordered, in pertinent part,

1. This case is against a trucking company and its driver, not a guaranty fund; consequently, issues of insurance priority and set-off are not now properly before this court.
2. Until a judgment is obtained, the issue of set-off is not ripe for decision by this court.
3. Any rulings on set-off will be issued by this court after a judgment is obtained and after a hearing is held post-judgment to address the set-off issue.
4. - The admissibility of collateral source payment evidence shall be decided by this court during the course of trial pursuant to the Collateral Source Rule which is codified in Indiana Code § 34-44-1-2,

(Appellant's App. p. 112).

On November 3 through November 5, 2003, a jury trial was held on the issue of damages only. During the trial, Pendleton introduced evidence of collateral source payments, i.e., his receipt of Florida worker's compensation payments in the amount of $122,877.34. In closing argument, Pen-dleton sought recovery for pain and suffering, future lost earnings, and all other non-reimbursed damage elements, for a total amount of $570,000. Prior to deliberation, the trial court instructed the jury that "the plaintiff may not recover more than once for any item of loss sustained." (Appellant's App. p. 111). At the close of the trial, the jury returned a damage award of $422,000 and assessed Aguilar to be 80% at fault. That same day, the trial court entered judgment against Aguilar in the amount of $387,600.

On December 5, 2008, Aguilar filed a post-trial Motion for Set-Off, asking the trial court to enter a post-judgment set-off of $122,877.34 in paid benefits. On the same date, Aguilar also filed his Motion to Correct Error, alleging an excessive verdict. After Pendleton filed a response to both motions, the trial court heard argu[618]*618ments on February 2, 2004. Subsequently, in its Order of March 2, 2004, the trial court denied Aguilar's Motion to Correct Error but granted his Motion for Set-off, reducing Pendleton's damage award to $164,722.66. This Order states in pertinent part that:

The court, having taken under advisement [Aguilar's] Motion to Correct Errors and Motion for Set-offs, now finds and orders as follows:
1. The jury verdict was within the scope of the evidence presented at trial and there is no basis for granting [Aguilar's] Motion to Correct Errors.
2. [Aguilar's] Motion to Correct Errors should be and is hereby DENIED.
3. [Aguilar] [was] insured by [Reliance]. .
4. On October 3, 2001, the Commonwealth Court of Pennsylvania entered an order declaring [Reliance] insolvent. The Pennsylvania court ordered the lig-uidator in that case to make arrangements for payment of claims by and through the appropriate guaranty associations.
5. Every state in the country has created an insurance guaranty fund in order to protect claimants and policyholders if insurance carriers become insolvent. The Indiana fund was created by Indiana Code § 27-6-8-1 et seq. The Ilinois fund was created in the Illinois Insurance Code Article XXXIV Illinois Guaranty Fund, 215 UKCS 5. Both acts contain very similar provisions.
6. Both the Indiana and Illinois Acts state that recovery in this case should be made from the guaranty association of the place of the residence of the insured.
7. National Transportation Corporation is an Illinois corporation and is the named insured under the Reliance policy. Therefore, the [Illinois Act] applies to this case and should be used to determine whether there is a non-duplication of recovery in this case.
8. -In order to make a claim against the Illinois Insurance Guaranty Fund (hereinafter "Fund"), a claimant must prove that he or she has a "covered claim" as it is defined in the state. " 'Covered claim' means an unpaid claim for a loss arising out of and within the coverage of an insurance policy to which this Article applies and which is in force at the time. of the occurrence giving rise to the unpaid claim, ..." 215 ILCS 5/534.3(a).
9.

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Bluebook (online)
827 N.E.2d 614, 2005 Ind. App. LEXIS 882, 2005 WL 1176204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pendleton-v-aguilar-indctapp-2005.