Renk v. Cordice

429 A.2d 639, 286 Pa. Super. 512, 1981 Pa. Super. LEXIS 2336
CourtSuperior Court of Pennsylvania
DecidedFebruary 27, 1981
DocketNo. 821
StatusPublished
Cited by2 cases

This text of 429 A.2d 639 (Renk v. Cordice) 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
Renk v. Cordice, 429 A.2d 639, 286 Pa. Super. 512, 1981 Pa. Super. LEXIS 2336 (Pa. Ct. App. 1981).

Opinion

HESTER, Judge:

This is an appeal by the City of Pittsburgh from the Order of the Court of Common Pleas of Allegheny County granting appellees’ petition to enforce settlement and strike the appellant’s lien.

Appellees Renk and Spratt are members of the police department of the appellant City of Pittsburgh. Appellees sustained injuries as the result of a vehicle accident which occurred while they were on active duty. The City was required to pay to appellees their full salary during their incapacity resulting from said injuries. This is mandated by the Act of June 28, 1935. P.L. 477 § 1, as amended, 53 P.S. § 327, which provides in part as follows: “Any policeman * * * of any * * * city * * *, who is injured in the performance of his duties * * *, and by reason thereof is temporarily incapacitated from performing his duties, shall be paid by the * * * municipality, by which he is employed, his full rate of salary, as fixed by ordinance or resolution, until the disability arising therefrom has ceased. All medical and hospital bills, incurred in connection with any such injury, shall be paid by such * * * municipality. During the time salary for temporary incapacity shall be paid by the * * * city * * *, any workmen’s compensation, received or collected by a policeman * * * for such period, shall be turned over to such * * * city * * *, and paid into the treasury thereof, and if such payment shall not be made by the policeman * *, the amount due the * * * city * * * shall be deducted from any salary then or thereafter becoming due and owing: *

It is to be noted that the above act contains no specific provision giving the City the right to recover against a third [515]*515party for payments made by it to injured policemen. However, in a well-structured opinion dealing with an exact situation, this Court stated that the City does have the right of subrogation based upon considerations of equity and good conscience; Furia v. City of Philadelphia, 180 Pa.Super. 50, 118 A.2d 236 (1955). See also Workmen’s Compensation Appeal Board v. Del Vecchio, 23 Pa.Cmwlth. 244, 351 A.2d 691 (1976); 74 A.L.R.3d 854, Sec. 7, Page 880, Sec. 34, Page 941.

Subsequently, appellees initiated an action in trespass against the driver of the other vehicle and his employer. Following five days of trial, the case was settled for $110,-000.00 ($105,000.00 to appellee Spratt and $5,000.00 to appel-lee Renk).

The City, in the interim, had paid appellee Spratt the sum of $85,000.00 and appellee Renk $1,456.00. The City filed a lien for said amounts against the proceeds of the settlement and thereafter refused to reduce or compromise its lien.

Appellant and appellees could not agree on the distribution of the proceeds of the settlement and the aforementioned petition was filed, bringing the issue before the court.

The court below by order of Judge Nickolas P. Papadakos dated March 28, 1978, distributed the proceeds of the settlement fund as follows:

"AS TO JAMES SPRATT
TOTAL AMOUNT OF SETTLEMENT-$105, 000. 00
TO: Conte, Courtney and Tarasí, the sum of $42,000.00 for their fee in representing James Spratt; based upon a 40% contingent fee agreement with their client, James Spratt; $42,000.00
TO: Conte, Courtney and Tarasí, the sum of $25, 200. 00 for their fee in protecting the subrogation rights of the City of Pittsburgh; $25,200. 00
TO: Conte, Courtney and Tarasí, the sum of $3,247.08 for reimbursement of expenses for the James Spratt action; $ 3.247.08
[516]*516TO: The City of Pittsburgh, the sum of $34, 552. 92 which represents the balance of the settlement fund; $34, 552. 92
TOTAL $105,000. 001
AS TO CHARLES RENK
TOTAL AMOUNT OF SETTLEMENT - $5, 000. 00
TO: Conte, Courtney and Tarasí, the sum of $2, 000. 00 for their fee in representing Charles Renk; based upon a 40% contingent fee agreement with their client, Charles Renk; $2, 000.00
TO: Conte, Courtney and Taras i, the sum of $582. 50 for their fee in protecting the subrogation rights and lien’ (in the amount of $1, 456. 25) of the City of Pittsburgh; $582. 50
TO: Conte, Courtney and Taras i, the sum of $742.07 for reimbursement of expenses for the Charles Renk Action (64% to be paid by Charles Renk and 36% to be paid by the City of Pittsburgh; $742.07
TO: The City of Pittsburgh, the sum of $606. 61 which represents their lien of $1, 456. 25 minus their pro-rata share of expenses and attorneys fees; $606. 61
TO: Charles Renk; the sum of $1, 068. 82 which represents his share of the settlement, minus attorneys fees, the City of Pittsburgh lien and his share of expenses; $1, 068. 82
TOTAL $5,000.00"

[517]*517The City then filed the within appeal, alleging that the settlement distribution, supra, was improper in that it awarded appellees’ attorneys a total fee of $69,782.00 for obtaining a $110,000.00 settlement. It is the position of the City that the attorneys fees should not exceed 40% of the $110,000.00 settlement or $44,000.00, and that they should be pro-rated, along with the costs, between that portion of the fund to be retained by the appellees (police officers) and that portion to which the City, appellant, was subrogated. We agree.

The appeal was filed April 10, 1978.

In an Opinion filed January 29, 1979, Judge Papadakos indicated his then awareness of the holding set forth in Furia v. Philadelphia, 180 Pa.Super. 50, 118 A.2d 236 (1955) to the effect that in situations such as we have before us it is mandatory to require the pro-ration of attorney’s fees and costs between the injured policeman (plaintiff) and the City (subrogee). On page 5 of his Opinion Judge Papadakos stated:

“Therefore, in view of the existing case law, the correct mechanics of the distribution in the instant case is as follows: Settlement less 40% attorney’s fees ($105,000.00 less $42,000.00). This leaves $63,000.00 to the City as subrogee. However, since the City must share pro rata in attorney’s fees, the CITY MUST REIMBURSE THE PLAINTIFF 40% of $63,000.00 or $25,200.00.
The Plaintiff, in actuality, pays $16,800.00 toward the $42,000.00 attorney’s fees and the City pays their pro rata share of $25,200.00 toward the $42,000.00 attorney’s fees. The end result is:
Plaintiff receives $25,200.00 via reimbursement; The City receives $37,800.00; and the attorney receives $42,-000.00.
However, there are $3,247.08 in costs involved in this case and they must be prorated. The Order of March 28, 1978, is amended insofar as the costs to be prorated as follows:
[518]

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Bluebook (online)
429 A.2d 639, 286 Pa. Super. 512, 1981 Pa. Super. LEXIS 2336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/renk-v-cordice-pasuperct-1981.