Wilson v. State Farm Mutual Automobile Insurance

517 A.2d 944, 512 Pa. 486, 1986 Pa. LEXIS 911
CourtSupreme Court of Pennsylvania
DecidedNovember 17, 1986
Docket70 M.D. Appeal Docket 1985
StatusPublished
Cited by36 cases

This text of 517 A.2d 944 (Wilson v. State Farm Mutual Automobile 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
Wilson v. State Farm Mutual Automobile Insurance, 517 A.2d 944, 512 Pa. 486, 1986 Pa. LEXIS 911 (Pa. 1986).

Opinion

OPINION

McDERMOTT, Justice.

Appellant, State Farm Mutual Automobile Insurance Company (hereinafter “State Farm”), appeals the order of the Superior Court reversing the order of the Court of Common Pleas of Dauphin County which denied Richard A. Neyhard’s (hereinafter “Neyhard”) Petition to Intervene.

The relevant facts are as follows. On November 14, 1978, Cynthia Wilson, as administratrix of the estate of Keith Wilson, her deceased husband, [hereinafter “Wilson”] instituted an action against State Farm Mutual Insurance Company for recovery of post-mortem work loss benefits due from State Farm in the event of a motor vehicle accident. These benefits were sought pursuant to the *488 Pennsylvania No-Fault Motor Vehicle Insurance Act. 1 Thereafter, on November 3,1980, Wilson filed a class action complaint on behalf of herself and all previously employed Pennsylvania residents, insured by State Farm, who sustained fatal injuries in motor vehicle accidents within two (2) years before her husband’s death. On July 21, 1981, the trial court certified by order two (2) sub-classes defined as follows:

1) Where the decedent is survived solely by a spouse; a spouse and minors; or solely minors.
2) Where the decedent is not survived by a spouse or minors, but survived solely by other survivors as delineated in § 103 of the No-Fault Act. 2

Pursuant to request, State Farm provided Wilson with a list of individuals who may have fallen into the groups as established in the certification order. The list as provided by State Farm included fifty-three (53) individual cases that State Farm did not recognize as dependent nor fit into the two (2) certified groups. Nevertheless, all individuals, including the extra cases, received notice informing them of the pending class action.

Settlement negotiations took place and a Stipulation of Settlement was tentatively agreed to on May 17, 1982. The Superior Court summarized its relevant aspects as follows:

Under the terms of the stipulation of settlement, class one encompassed ninety-six (96) claims in which each class member was admittedly or presumptively dependent upon the decedent and no statute of limitations defense existed; class two encompassed one hundred and thirty-three (133) claims in which dependency was similarly admitted or presumed yet the statute of limitations may *489 not have been properly tolled; class three was comprised solely of the fifty-three (53) “nondependent” claims. It was agreed that class one members would receive in settlement the full value of the applicable policy limits plus two years of interest at the statutory rate of 18% per year, totaling an individual estimated payment of $20,-400.00. Class two members would receive one-half of their policy limits plus one and one-half years’ interest at the 18% rate, totaling an individual estimated payment of $9,525.00. Class three members would receive individual payments of $6,000.00.

Wilson v. State Farm Mutual Insurance Co., 339 Pa.Super. 576, 581, 489 A.2d 791, 793 (1985).

A Notice of Proposed Settlement was approved by the trial court on May 17, 1982, in accordance with Pa.R.Civ.P. 1714(c). 3 Notice was thereafter sent to every class member.

Prior to the aforementioned events Neyhard filed a separate class action against State Farm in Philadelphia County on March 4, 1981. Neyhard is the father and administrator of the estate of Christopher Neyhard, an employed man who, after a fatal automobile accident, left no dependent survivors. The Neyhard suit, similar to the instant proceedings, involved the “recovery of post-mortem work loss benefits for all estates and/or survivors of decedents killed in motor vehicle accidents and insured by State Farm.” 4 Id.

A public hearing on the proposed settlement in the Wilson case was conducted on June 9, 1982. At the hearing Neyhard presented a petition to intervene, as well as objec *490 tions to the proposed settlement of group three claims. The trial court denied the petition and dismissed the objections. On June 10, 1982, the court entered orders approving the overall settlement. The court then, however, severed group three from the others for separate disposition due to the possibility of Neyhard’s appeal on the intervention question. On appeal the Superior Court reversed, thereby ordering intervention. From that order State Farm sought allowance to appeal, which we granted. We now reverse.

The fundamental issue raised in this appeal is whether the trial court abused its discretion in refusing to allow Mr. Neyhard’s intervention. An answer to this issue is necessarily dependent upon the facts and circumstances underlying the trial court’s decision.

In denying Neyhard’s petition to intervene the trial court primarily focused on two factors: first, at the time of the hearing in the Wilson matter Neyard’s class action complaint had yet to be acted upon by the Court of Common Pleas of Philadelphia; and second, Neyhard’s class had not been certified as of that date. The court also emphasized that the adequacy of group three’s representation negated any need for Neyhard to intervene on its behalf. Furthermore, the court rejected Neyhard’s objections to the settlement, noting that since his name was not among the group three members for whom the court had approved settlement he had no standing.

In reversing the trial court’s decision the Superior Court agreed with Neyhard that “having commenced a separate action on behalf of himself and a class of individuals allegedly inclusive of class three members in the Wilson action, he, as their representative, possesses a legally enforceable interest compelling his intervention.” Wilson v. State Farm Mutual Insurance Co., 339 Pa.Super. 576, 583-84, 489 A.2d 791, 795 (1985). See, Pa.R.Civ.P. 2327(4) 5 More *491 over, in dismissing State Farm’s contention that group three’s interests were already adequately represented, the Superior Court cited the trial court’s original class certification hearing in 1981, 6 wherein the trial court refused to certify group three. 7

A sole dissenter to the Superior Court’s opinion agreed “that Neyhard’s class representative status would give him standing to petition for intervention in the instant action, [however he did] not believe that such status per se

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Bluebook (online)
517 A.2d 944, 512 Pa. 486, 1986 Pa. LEXIS 911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-state-farm-mutual-automobile-insurance-pa-1986.