Simpson v. Allstate Insurance

504 A.2d 335, 350 Pa. Super. 239, 1986 Pa. Super. LEXIS 9353
CourtSupreme Court of Pennsylvania
DecidedJanuary 24, 1986
Docket470 and 471
StatusPublished
Cited by64 cases

This text of 504 A.2d 335 (Simpson v. Allstate Insurance) 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
Simpson v. Allstate Insurance, 504 A.2d 335, 350 Pa. Super. 239, 1986 Pa. Super. LEXIS 9353 (Pa. 1986).

Opinions

WIEAND, Judge:

Rosemary Simpson commenced an action in assumpsit against Allstate Insurance Company (Allstate) to recover a fire loss of $35,468 for which Allstate allegedly had agreed to indemnify her pursuant to a policy of fire insurance. After Allstate had refused to respond to Simpson’s request for the production of certain statements of witnesses and other documents, Simpson obtained a court order, dated April 14, 1982, directing Allstate to produce the requested documents for examination within thirty days. Appellant’s counsel again failed to produce the required documents. Simpson’s threats to obtain a sanction order from the court also failed to produce action. Finally, by letter dated October 6, 1982, Simpson’s counsel notified Allstate’s attorney that a motion for the imposition of a sanction in the nature of a judgment on the claim would be presented to the trial court on October 11, 1982 unless Allstate complied with the court’s discovery order before that date; Allstate failed to comply, and its counsel failed to appear in opposition when the motion for sanctions was presented to the court. The motion, therefore, was granted. The trial court, pursuant to Pa.R.C.P. 4019(c)(3), directed the prothonotary to enter judgment against Allstate by order dated October 13, 1982. [242]*242The judgment was entered the following day, October 14, 1982.

Five days later, the discovery material having been deliv-. ered in the interim, Allstate filed a petition to open the judgment. Simpson filed an answer, and the petition to open was argued before the court. Thereafter, more than five months after the judgment had been entered, the trial court entered the following order:

AND NOW, this 22nd day of March, 1983, upon consideration of the motion to open default judgment by defendant, Allstate Insurance Co., and after hearing argument thereon, in accordance with Pa.R.C.P., No. 4019, the Court finds that defendant has willfully violated the Pennsylvania Rules of Civil Procedure for failure to produce discoverable materials, which justifies the entry of this ORDER, and therefore, ORDERS:
(1) that the petition to open default judgment is granted;
(2) that defense counsel, as a disobedient party, is hereby held in contempt of court pursuant to the Judiciary Act of 1976, July 9, P.L. 586, No. 142, § 2 (42 Pa.C.S.A. § 4131 et. seq.) and fined in the amount of $3,000 for failing to obey the Court’s Order dated April 14, 1982 for a period of approximately six months;
(3) that defense counsel shall be responsible for all reasonable attorney fees incurred by plaintiff’s counsel in his attempt to obtain discovery including the motion for sanctions and the motion to Open Default Judgment filed pursuant to the Pa.R.C.P. Rule No. 4010(g)(1); that amount is due upon presentment of a statement to defense counsel by counsel for the plaintiff;
(4) that interest due will be computed at the current prime rate from the date of the original default judgment in October of 1982, or the rate pursuant to Pa.R.C.P. No. 238, whichever is higher, for the amount of monetary damages if the plaintiff is later entitled to a judgment from defendant. Although damages for delay are compensatory and not punitive, this court does not consider [243]*243the interest portion of this Order as a penalty, but rather as compensation for the plaintiff because of the delay incurred by defense counsel. See Esmond v. Liscio, 209 Pa.Super. 200, 224 A.2d 793 (1966); see also Colodonafo v. Consolidated Rail Corp., 307 Pa.Super. 478, 453 A.2d 987 (1982).

Two appeals were filed from this order. One appeal was filed by Simpson, who contends that the trial court erred when it opened the judgment previously entered. The other appeal was filed by John A. Robb, Jr., Esquire, counsel for Allstate, who contends that the court erred when it held him in contempt of court without prior notice. We agree with the contentions made by both appellants. The trial court’s reconsidered order of March 22, 1983 was improper and will be set aside.

The Simpson appeal from the trial court’s order has been properly filed. Pa.R.App.P. 311(a) establishes that “an appeal may be taken as of right from: (1) [a]n order opening, vacating or striking off a judgment____” The trial court’s order, which purported to “open” and, in any event, vacated the prior judgment was appealable by Simpson as of right. Hunter v. Employers Insurance of Wausau, 347 Pa.Super. 227, 500 A.2d 490 (1985).

The judgment in this case was not entered by confession pursuant to warrant of attorney, nor was it entered by default upon praecipe. Instead, it was entered by the trial court in a contested civil action because of Allstate’s willful refusal to comply with the court’s discovery order. The judgment entered by the court was not a “default judgment” as that term is generally understood. It was not merely a judgment entered upon praecipe by the prothonotary. Rather, it was a judgment entered in a contested proceeding pursuant to court order. See: Miller Oral Surgery, Inc. v. Dinello, 342 Pa.Super. 577, 580, 493 A.2d 741, 743 (1985).

“Unlike a judgment entered by confession or by default, which remains within the control of the court indefinitely and may be opened or vacated at any time upon proper [244]*244cause shown, a judgment entered in an adverse proceeding ordinarily cannot be disturbed after [it has become final].” Klugman v. Gimbel Brothers, Inc., 198 Pa.Super. 268, 272, 182 A.2d 223, 225 (1962). A judgment entered in adverse proceedings becomes final if no appeal therefrom is filed within thirty days. See: 42 Pa.C.S. § 5505.1 Thereafter, the judgment cannot normally be modified, rescinded or vacated. Hunter v. Employers Insurance of Wausau, supra. Similarly, it cannot be “opened.” Livolsi v. Crosby, 344 Pa.Super. 34, 36, 495 A.2d 1384, 1385 (1985); Miller Oral Surgery, Inc. v. Dinello, supra, 342 Pa.Super. at 580, 493 A.2d at 743; Kappel v. Meth, 125 Pa.Super. 443, 448-450, 189 A. 795, 797-798 (1937).

“This doctrine, respecting judgments entered [in adverse proceedings], has a very definite function, namely, to establish a point at which litigants, counsel and courts ordinarily may regard contested lawsuits as being at an end.” Klugman v. Gimbel Brothers, Inc., supra, 198 Pa.Super. at 272, 182 A.2d at 225. See also: Kappel v. Meth, supra, 125 Pa.Super. at 450, 189 A. at 798. “A contested action yields a judgment in which the value of finality is greatest. There has been a decision following an examination of the critical issues through bilateral participation of the parties---For all the reasons that finality of judgments is important, such a judgment should be invulnerable except upon a showing of extraordinary miscarriage.” Restatement (Second) of Judgments, Introductory Note to Chapter 5, p. 152.

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Bluebook (online)
504 A.2d 335, 350 Pa. Super. 239, 1986 Pa. Super. LEXIS 9353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-allstate-insurance-pa-1986.