Sun Pipe Line Co. v. Tri-State Telecommunications, Inc.

655 A.2d 112, 440 Pa. Super. 47, 1994 Pa. Super. LEXIS 3775
CourtSuperior Court of Pennsylvania
DecidedDecember 28, 1994
StatusPublished
Cited by9 cases

This text of 655 A.2d 112 (Sun Pipe Line Co. v. Tri-State Telecommunications, Inc.) 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
Sun Pipe Line Co. v. Tri-State Telecommunications, Inc., 655 A.2d 112, 440 Pa. Super. 47, 1994 Pa. Super. LEXIS 3775 (Pa. Ct. App. 1994).

Opinion

HESTER, Judge:

Sun Pipe Line Company and Sun Company, Inc. (collectively “Sun”) appeal and E.A. Design, Ltd. (“Design”) cross-appeals from two judgment orders entered in these consolidated civil actions. The first order was entered on December 29, 1993; the second order was entered on January 25, 1994, and amended the first one. The four appeals were consolidated for our review. Neither appellant has raised any issues relating solely to the December 29, 1993 order; accordingly, we dismiss as moot the appeals from that order. We revise the January 25, 1994 order to provide for post-verdict interest on the total verdict at an annual rate of six percent and to impose joint and several liability as to the entire verdict, including delay damages. In all other respects, the judgment is affirmed.

This action arose as a result of a construction accident which occurred on November 12,1982, during excavation work performed to install cable for a cable television system. The company hired to perform the excavation work by the cable franchisee ruptured one of Sun’s pipelines, and 50,000 gallons of unleaded gasoline spilled into the area.

As a result, a class action was instituted by affected homeowners. The class action was instituted against Sun, and the defendants in that action either initially or eventually included the various entities and persons involved in the design, installation, and approval of the cable system which was being installed when the pipe was ruptured. In addition, Sun instituted a separate action to recover for its damages, including the costs of the gasoline, repairing the rupture, and cleaning *55 up the spill. The action instituted by Sun was consolidated with the class action. Finally, some affected homeowners opted out of the class action and instituted separate actions which never were consolidated with this action.

The trial court certified the homeowners as a class as to the issue of liability for the accident but determined that the damages of each home-owner would have to be established at separate trials. In September and October, 1986, the issue of liability for the accident was submitted to a jury. On October 20, 1986, the jury apportioned liability for the accident as follows: 1) forty percent to Tri-State Telecommunications Inc., which performed the underground cable installation; 2) eighteen percent to Sun, for failing to take appropriate actions to insure against rupture of its pipeline during utility excavation work; 3) fifteen percent to Jan Gouza and his firm, Pickering Corts & Summerson, Inc. (collectively “Gouza”), who was the township engineer responsible for approving the cable network installation plan; 4) fourteen percent to Design, which was hired to prepare the construction maps for the cable network; and 5) thirteen percent to Davis Enterprises, Inc., the owner of the cable franchise. We affirmed this liability determination in Cipriani v. Sun Pipe Line Co., 393 Pa.Super. 471, 574 A.2d 706 (1990).

During the liability phase, Tri-State and Davis settled with Sun for $4,500,000. Gouza has insurance coverage for the incident with limits of $1,000,000, and Design has insurance coverage for the incident with limits of $350,000. Gouza assigned to Sun his bad faith claim against his insurer for its failure to offer its policy limits in a timely fashion to settle the action against him, and in exchange, Sun has agreed not to execute its judgment in the action against him individually.

Design’s insurer offered its policy limits of $350,000, on September 28, 1988. Gouza’s insurer offered its policy limits of $1,000,000 on February 16, 1989. Sun rejected the tender of the policy limits. The class-action case was settled in 1991, and the final opt-out case was settled in October, 1992. The jury trial as to Sun’s damages against the two remaining tortfeasors, Gouza and Design, commenced on December 14, *56 1992, and on December 21, 1992, the jury awarded Sun $8,080,362.37 in damages, including the following:

1. What do you find to be the fair and reasonable amount of damages incurred by Sun Pipe Line Co. for project management, bioreclamation, air monitoring, laboratory analysis, geological and photography services, well drilling, installation and well closure, purchase, rental and maintenance of scientific equipment, office expenses, cleanup and site maintenance, homeowner damages, lost product, labor costs, long term monitoring and closure costs?
$7,679,500
3. What do you find to be the net fair and reasonable amount of damages incurred by Sun Pipe Line Company for its lost investment opportunity in connection with its purchase of seven homes, the maintenance on those properties, and later resale of those seven homes?
$382,853.

Sun then filed a motion to mold the verdict to reflect the joint and several liability of Design and Gouza for twenty-nine percent of the verdict, in accordance with the liability determination of the previous jury. Sun also filed a motion for delay damages under Pa.R.C.P. 238 and for reasonable expenses under Pa.R.C.P. 4019(d), the rule imposing .sanctions for discovery violations.

On December 29, 1993, the trial court molded the verdict and entered judgment as follows:

JUDGMENT AND ORDER
AND NOW, this 29th day of December, 1993, upon consideration of Sun Pipe Line Company’s Motion to Mold Verdict and Motion for Delay Damages Pursuant to Pa. R.Civ.P. 238, it is hereby ORDERED, ADJUDGED and DECREED as follows:
1. The damages awarded by the jury on December 21, 1992 are $8,080,362.37.
*57 2. Additional Defendant EA. Design, Inc., Jan Gouza and Pickering, Corts & Summerson, Inc. are jointly and severally liable for 29% of the $8,080,362.37 or $2,343,305.00.
3. Delay damages are awarded to Plaintiff pursuant to Pa.R.Civ.P. 238 from November 12,1983 (one year from the date of the accident) until September 28, 1988, (the date upon which Defendants offered policy limits) on 29% of $7,679,500.00 or $2,227,055.00.
4. Interest on the $2,227,055.00 shall be calculated as follows:
11-12-83 to 12-31-83 rate of 12.5% $ 37,375.55
1-1-84 to 12-31-84 rate of 12% 267,246.60
1-1-85 to 12-31-85 rate of 11.75% 261,678.96
1-1-86 to 12-31-86 rate of 10.5% 233,840.78
1-1-87 to 12-31-87 rate of 8.5% 189,299.68
1-1-88 to 9-28-88 rate of 9.75% 163,009.74
$1,152,447.00
5. Interest on the verdict shall accrue from the date of the verdict at the rate of 6% per annum.
6. Reasonable expenses to be awarded to Plaintiffs, pursuant to Pa.R.Civ.P. 4019(d), not including attorneys fees, are fixed at $74,415.14 pursuant to affidavit of Bruce J.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

SLT Holdings v. Mitch-Well
2019 Pa. Super. 259 (Superior Court of Pennsylvania, 2019)
Euceda v. Green
40 Pa. D. & C.5th 317 (Lackawanna County Court of Common Pleas, 2014)
Thattayathu v. Trikha
33 Pa. D. & C.5th 347 (Lackawanna County Court of Common Pleas, 2013)
Overdorf v. Fonner
748 A.2d 682 (Superior Court of Pennsylvania, 2000)
Waslow v. Grant Thornton LLP (In Re Jack Greenberg, Inc.)
240 B.R. 486 (E.D. Pennsylvania, 1999)
Auger v. Children's Hospital
42 Pa. D. & C.4th 372 (Philadelphia County Court of Common Pleas, 1999)
Taylor v. City of Philadelphia
692 A.2d 308 (Commonwealth Court of Pennsylvania, 1997)
Christian v. Pennsylvania Financial Responsibility Assigned Claims Plan
686 A.2d 1 (Superior Court of Pennsylvania, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
655 A.2d 112, 440 Pa. Super. 47, 1994 Pa. Super. LEXIS 3775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-pipe-line-co-v-tri-state-telecommunications-inc-pasuperct-1994.