Sanders v. Farm

47 Pa. D. & C.4th 129, 2000 Pa. Dist. & Cnty. Dec. LEXIS 158
CourtPennsylvania Court of Common Pleas, Delaware County
DecidedJuly 27, 2000
Docketnos. 95-4815, 97-16355
StatusPublished
Cited by3 cases

This text of 47 Pa. D. & C.4th 129 (Sanders v. Farm) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Delaware County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanders v. Farm, 47 Pa. D. & C.4th 129, 2000 Pa. Dist. & Cnty. Dec. LEXIS 158 (Pa. Super. Ct. 2000).

Opinion

BRADLEY, J.,

Plaintiff, Jerome Sanders, appeals from the entries of summary judgment in this consolidated action.

[130]*130Plaintiff-insured filed a bad faith and breach of contract action against defendant-insurer, State Farm Insurance Company, civil action no. 95-4815, alleging bad faith by defendant in the handling of plaintiff’s claim. Thereafter, plaintiff filed a second action for defamation, slander, and ongoing bad faith against defendant, civil action no. 97-16355, allegedly as the result of defendant’s actions throughout the litigation in the underlying action. These two cases were then consolidated.

On March 24,1999, defendant’s motion for summary judgment in civil action no. 97-16355 was granted. The Pennsylvania Superior Court by order dated August 25, 1999 quashed plaintiff’s notice of appeal of this order granting summary judgment reasoning that it was not a final order. On January 19,2000, defendant’s motion for summary judgment in civil action no. 95-4815 was granted as to Count II (bad faith) and Count III (punitive damages), leaving Count I (contract) the sole issue to be determined in civil action no. 95-4815. On May 12,2000, by order and stipulation, this remaining issue, Count I (contract) was severed from the consolidated case. Plaintiff’s appeal from the entries of summary judgment in both actions follows.

In civil action no. 95-4815 as well as its companion case, 97-16355, the court was inundated with what can only be described as a blitzkrieg of paper. To explain our decisions granting defendant’s motions for summary judgment in both actions, it is helpful to list chronologically the relevant and undisputed facts.

FACTS

(1) On January 11, 1994, plaintiff’s vehicle, a 1975 Chevrolet Corvette, was stolen from his home’s locked garage.

[131]*131(2) The Corvette was insured under a State Farm policy no. 385-1408-F31-381A.

(3) On January 11, 1994, Sanders contacted his State Farm agent, William Coleman, to report the theft of the Corvette and make a claim for the loss.

(4) On January 19, 1994, the Corvette was recovered by police in Newport News, Virginia.

(5) On January 19,1994, an affidavit was prepared by Sanders permitting Mullen’s T & A, (a repair shop chosen by Sanders) to tow the Corvette from Virginia to Pennsylvania.

(6) On January 24, 1994, State Farm informed Sanders that they intended to pay $500 for the vehicle to be towed from Virginia. Plaintiff’s response to summary judgment motion, no. 95-4815, para. 19.

(7) On February 1, 1994, a State Farm representative in Virginia took photographs of the vehicle and concluded there was no damage to it. State Farm claim activity log.

(8) On February 3,1994, Mr. Mullen from Mullen’s T & A agreed to accept State Farm’s offer of $500 to tow the vehicle from Virginia. Plaintiff’s response to summary judgment motion, no. 95-4815, para. 21.

(9) On February 5,1994, the Corvette was returned to Mullen’s T & A garage in Pennsylvania.

(10) The bill for towing in the amount of $682 was received by State Farm on March 14, 1994.

(11) State Farm issued a check on March 15, 1994 to Mullen’s T & A in the amount of $682 for the cost of towing the Corvette.

(12) On March 15,1994, Sanders notified State Farm that there were scratches to the exterior body of the Corvette.

[132]*132(13) A State Farm representative inspected the Corvette on March 22, 1994 at Mullen’s T & A in Pennsylvania.

(14) The claim log indicates that on March 29, 1994, State Farm was in the process of writing an estimate to repair the exterior damage, i.e., scratches to the hood. Claim log, entry no. 0035.

(15) On April 6,1994, before State Farm notified Sanders of the status of his claim for exterior damage, Sanders informed State Farm for the first time that there were engine noises and that Mullen’s T & A was seeking permission to tear down the engine to discover the nature of engine damage before the exterior scratches were repaired.

(16) On April 14, 1994, State Farm sent Sanders a letter giving him permission to have his mechanic, Mullen, tear down the engine to locate the damage, if any.

(17) Sanders agreed to accept State Farm’s proviso that if the engine damage was not directly related to the theft, then he would be responsible for the cost of the teardown and repairs.

(18) On April 14, 1994, State Farm sent Sanders an affidavit of theft requesting information surrounding the theft of the Corvette.

(19) Sanders had previously completed and forwarded to State Farm an initial questionnaire in February 1994.

(20) The affidavit of theft was signed by Sanders on April 18, 1994.

(21) On April 29, 1994, Mullen’s T & A contacted State Farm and reported that the engine was tom down and ready for inspection.

[133]*133(22) The engine was inspected by State Farm on May 2, 1994.

(23) On May 24, 1994, Sanders provided a phone-recorded statement to State Farm claims specialist, Stephanie Mulhem, concerning the theft of the Corvette.

(24) On May 25, 1994, State Farm requested a detailed estimate of repairs from Mullen’s T & A.

(25) On June 13, 1994, State Farm offered to pay for the engine repair less 75 percent betterment, to take into account depreciation on the 19-year-old engine that had over 113,000 miles on it.

(26) After State Farm’s June 13 offer, plaintiff informed State Farm specifically for the first time that the engine was rebuilt. Plaintiff’s deposition, pp. 141-42.

(27) In the affidavit of theft dated April 18,1994, plaintiff indicated that the Corvette was a “rebuilt wreck” and the name of the rebuilder was L & D Automotive.

(28) Plaintiff informed his independent State Farm agent in August 1994 that the engine was being rebuilt and requested reduced coverages as the vehicle was off the road.

(29) At the State Farm inspection on May 2,1994, the estimator noted that the engine had some new parts and looked like it had work done to it before.

(30) On June 18, 1994, plaintiff sent State Farm an original receipt from L & D Automotive (the repair shop that rebuilt the engine in August 1993) as evidence that the engine was rebuilt.

(31) The business name and address on the L & D Automotive invoice was handwritten and the town of Claymont was misspelled. The invoice indicated that Sanders paid $2,669.71 in cash for the repair.

[134]*134(32) When a State Farm employee, Ms. Stephanie Mulhem, attempted to locate L & D Automotive, she discovered that the repair shop was not located at the address on the invoice. Ultimately, defendant did locate the mechanic who rebuilt the engine.

(33) State Farm forwarded the claim file to Jill B. Clarke, Esquire of McKissock & Hoffman, who on July 1,1994, forwarded a letter to plaintiff requesting certain information and scheduling an examination under oath to take place on July 14,1994. This “reservation of rights” letter also explained that questions regarding the “accidental” nature of the loss had arisen.

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47 Pa. D. & C.4th 129, 2000 Pa. Dist. & Cnty. Dec. LEXIS 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanders-v-farm-pactcompldelawa-2000.