Pennsylvania Power & Light Co. v. Gulf Oil Corp.

411 A.2d 1203, 270 Pa. Super. 514, 10 A.L.R. 4th 1025, 1979 Pa. Super. LEXIS 3002
CourtSuperior Court of Pennsylvania
DecidedSeptember 28, 1979
Docket3051
StatusPublished
Cited by24 cases

This text of 411 A.2d 1203 (Pennsylvania Power & Light Co. v. Gulf Oil Corp.) 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
Pennsylvania Power & Light Co. v. Gulf Oil Corp., 411 A.2d 1203, 270 Pa. Super. 514, 10 A.L.R. 4th 1025, 1979 Pa. Super. LEXIS 3002 (Pa. Ct. App. 1979).

Opinion

SPAETH, Judge:

On November 6, 1974, Pennsylvania Power & Light Company (PP&L) started the present action in assumpsit against General Atomic Company (GAC) and GAC’s partners, Gulf Oil Corporation and Scallop Nuclear, Inc. The complaint was filed in Lehigh County and alleged that in the fall of 1973, PP&L had entered into a contract with Gulf United Nuclear Fuel Corporation, a predecessor of GAC, for the delivery of uranium and fuel fabrication devices, and for various services, to PP&L’s nuclear power plants, and that in 1974 GAC had repudiated this contract, causing damages in *521 excess of $10,000. PP&L requested a trial by jury. GAC filed an answer to the complaint, in which it denied the existence of any contract, raised other defenses, and pleaded various counterclaims. GAC also filed an application for change of venue, alleging, inter alia, 1 that it could not obtain a fair trial because a large number of the inhabitants of Lehigh county were customers of PP&L and therefore had an interest in the case adverse to GAC. On March 30, 1976, the lower court denied this application. PP&L subsequently answered interrogatories propounded by GAC, in which it estimated its damages to be from $88,642,525.60 to $114,471,-031.60 or more. 2 On December 15, 1977, GAC petitioned the lower court to reconsider its order of March 30, 1976, denying GAC’s application for change of venue. 3 On January 4, 1978, PP&L filed an answer to GAC’s petition for reconsideration, 4 and after depositions 5 and oral argument, the *522 lower court, by order of June 21, 1978, denied the petition for reconsideration. On October 4, 1978, at GAC’s request, the lower court certified its order of June 21 for interlocutory appeal, 6 and on December 27, 1978, this court permitted the appeal. 7

In support of its argument that it cannot obtain a fair trial in Lehigh County, GAC cites the deposition testimony *523 of George Vanderslice, PP&L’s Vice President and Comptroller, and William O’Hara, a former Commissioner of the Pennsylvania Public Utility Commission (PUC). Both men testified that the PUC would have to rule on how a recovery of damages as large as the one sought by PP&L should be treated. They testified that they did not know how the PUC would in fact rule. Mr. Vanderslice testified, however, that it was doubtful that the PUC would permit PP&L to distribute any of the damages to its shareholders, and he admitted that the tendency of any PUC ruling would be to reduce the electric bills to PP&L’s customers. Mr. O’Hara also testified that the damages would not go to the shareholders. He suggested three different ways in which the PUC might rule: either (1) reduce the rate base of PP&L’s Susquehanna nuclear plant; or (2) allow a reimbursement under the fuel adjustment clause; or (3) permit PP&L to retain the damages recovered for additional capital investments. All of these possible rulings would result in lower electric bills to PP&L customers, but this benefit, according to Mr. O’Hara, could be spread over a period of several years. 8 Based upon this testimony, and using population and *524 PP&L customer figures, GAC calculates that 98.5% of the residents of Lehigh County are customers of PP&L, and that eách could receive a benefit of as much as $289.86. 9

Citing the deposition testimony of Dr. Burton Cohen, a witness expert in psychiatry, GAC argues that the possibility of such a benefit would color the jurors’ perception of the evidence and prejudice them against GAC. 10

PP&L disputes GAC’s argument on several grounds. It disagrees with GAC’s calculation that 98.5% of the residents of Lehigh County are customers of PP&L. PP&L argues instead that only 44.9% of the residents are its customers. PP&L also argues that the possibility of any customer receiving any benefit is speculative, as no one can foresee the future actions of the PUC, and that even if the PUC were to rule in such a way that any recovery would benefit *525 the customers and not the shareholders of PP&L, the immediate impact upon any individual juror would be negligible, as any such benefit would likely be spread over a period of several years. PP&L also argues that the jury could not be prejudiced against GAC and in favor of PP&L as there is no evidence that the people of Lehigh County believe 11 that a recovery for PP&L would represent a benefit to PP&L’s customers. 12

*526 The issue may be framed in two arguments: (1) that Pennsylvania law entitles GAC to a change of venue; 13 and (2) that by forcing it to stand trial before a Lehigh County jury, the lower court has violated GAC’s right to due process of law as guaranteed by the fourteenth amendment of the United States Constitution.

The Pennsylvania Constitution provides that “[t]he power to change venue in civil and criminal cases shall be vested in the courts, to be exercised in such manner as shall be provided by law.” Pa.Const. art. 3, § 23. This provision did not affect the Supreme Court’s inherent power to grant a change of venue, but gave the legislature the right, by statute, to confer such power upon the trial courts. Apex Hosiery Co. v. Philadelphia County, 331 Pa. 177, 200 A. 598 (1938); Commonwealth v. Sacarakis, 196 Pa.Super. 455, 175 A.2d 127 (1961). 14 The statute by which the legislature conferred such power in a civil case 15 is the Act of March 30, 1875, P.L. 35, §§ 1-3, as amended, Act of March 18, 1909, *527 P.L. 37, § 1, 12 P.S. §§ 111-113 (1953). 16 Pertinent to GAC’s application for a change of venue in this case is the fifth subsection of section 1 and subsections I and III of section 3 of the Act. The fifth subsection of section 1 provides:

Changes of venue shall be made in any civil cause, in law or in equity, depending in any of the courts of this Commonwealth, in the cases following; namely— ******

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Bluebook (online)
411 A.2d 1203, 270 Pa. Super. 514, 10 A.L.R. 4th 1025, 1979 Pa. Super. LEXIS 3002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-power-light-co-v-gulf-oil-corp-pasuperct-1979.