ZUZEL v. SEPTA

CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 29, 2023
Docket2:19-cv-00268-CFK
StatusUnknown

This text of ZUZEL v. SEPTA (ZUZEL v. SEPTA) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ZUZEL v. SEPTA, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

: BELLA ZUZEL, : CIVIL ACTION Plaintiff, : : v. : No. 19-268 : : CARDINAL HEALTH, INC., and : RGH ENTERPRISES, INC., : Defendants. : : and : : CARDINAL HEALTH, INC., and : RGH ENTERPRISES, INC., : Third-Party Plaintiffs : : v. : : AIKIN HOLDING CORP., : Third-Party Defendant. :

MEMORANDUM KENNEY, J. December 29, 2023 Plaintiff Bella Zuzel was injured when her Cardinal Health, Inc. (“Cardinal Health”) rollator collapsed underneath her while she was exiting a Broad Street Line subway car. Plaintiff sued Cardinal Health and its indirect subsidiary, RGH Enterprises, Inc. (“RGH”), which in turn filed a Third-Party Complaint against the manufacturer of the rollator, Aikin Holding Corp. (“Aikin”). On October 5, 2021, the Court1 granted in part Third-Party Plaintiffs Cardinal Health and RGH’s Motion for Summary Judgment (ECF No. 94) and entered an order holding, inter alia, that Aikin breached its duty to defend RGH and Cardinal Health as an affiliate of RGH. ECF No.

1 The Honorable Berle M. Schiller presided over this case until it was reassigned on August 3, 2023 to the Honorable Chad F. Kenney. ECF No. 171. 138. Presently before the Court is Defendant RGH’s Renewed Motion to Assess Defense Fees and Costs (ECF Nos. 183 (redacted version), 184 (sealed version)). The Motion was filed on October 30, 2023 and there has been no response from Aikin. For the reasons set forth below, the Court will enter default judgment against Third-Party Defendant Aikin, will grant RGH’s Renewed

Motion to Assess Fees and Costs, and will order Aikin to pay RGH and its affiliate, Cardinal Health, for defense fees and costs incurred in this matter and the settlement amount, totaling , plus interest through the date of entry of judgment. An appropriate Order will follow. I. BACKGROUND AND PROCEDURAL HISTORY Plaintiff Zuzel filed this suit against Cardinal Health and its indirect subsidiary RGH after she was injured when her Cardinal Health rollator collapsed underneath her. ECF No. 20. In response, Cardinal Health and RGH filed a Third-Party Complaint against Aikin, the manufacturer of Plaintiff Zuzel’s rollator asserting claims for: (1) breach of contract; (2) a declaratory judgment that the Agreement between RGH and Aikin encompassed Plaintiff’s claims; and (3) common law

indemnity, or in the alternative, contribution. ECF No. 44. Aikin moved to dismiss and moved to strike or sever the Third-Party Complaint; however, the Court denied these motions. ECF No. 90. Thereafter, Third-Party Plaintiffs Cardinal Health and RGH and Third-Party Defendant Aikin filed cross-motions for summary judgment on the Third-Party Complaint. ECF Nos. 94, 118. On October 5, 2021, this Court: (1) denied Cardinal Health’s motion for summary judgment without prejudice to renew its request for common law indemnification; (2) granted RGH’s motion for summary judgment with respect to the breach of contract claim for the duty to defend and with respect to its request for a declaratory judgment that Plaintiff’s underlying claims fall within the indemnification provision of the contract between RGH and Aikin; and (3) granted summary judgment in favor of Aikin only with respect to its breach of contract and declaratory judgment claim as to Cardinal Health, and the common law indemnification claim as to RGH. ECF Nos. 137, 138. As this Court held that Aikin breached its duty to defend RGH and Cardinal Health, as an affiliate of RGH, RGH and Cardinal Health promptly requested that Aikin: (1) immediately take

over their defense; and (2) reimburse their defense fees and costs incurred in defending the case and pursuing defense and indemnification. ECF No. 183-2. At that time, RGH and Cardinal Health estimated that their attorneys’ fees and costs to date—incurred over the span of two and a half years for both defending the underlying litigation and pursuing defense and indemnification from Aikin—totaled approximately $860,000 in fees and $31,000 in costs. Id. Even with this Court’s Order holding Aikin breached its duty to defend and RGH and Cardinal Health’s request to Aikin, Aikin still refused to defend RGH and Cardinal Health, pay their defense costs, or agree to indemnify them. Accordingly, on November 29, 2021, RGH moved for the Court to assess damages against Aikin (ECF No. 142), to which Aikin filed an opposition on December 6, 2021. ECF No. 143.

Thereafter, on December 10, 2021, Aikin filed a Motion for Certification of the Court’s October 5, 2021 Summary Judgment Order for Interlocutory Appeal (ECF No. 144), to which RGH filed an opposition on December 27, 2021. ECF No. 148. The Court denied Aikin’s Motion for Certification (ECF No. 152) and denied without prejudice RGH’s Motion to Assess Defense Fees and Costs to refile by September 13, 2022 with unredacted copies of its attached exhibits, so the Court would be able to assess the reasonableness of the fee. ECF No. 153. Around this point in the litigation, Aikin seemed to stop participating. To begin, on September 1, 2022, Aikin’s lead counsel, Matthew L. McBride III, moved to withdraw as counsel of record for Aikin, indicating that he obtained new employment which prevented him from continuing to represent Aikin and that he was attempting to obtain additional, substitute counsel. ECF No. 154. On that same day, Aikin’s local counsel moved to withdrawal, representing that all communications and direction to and from the client were filtered through Attorney McBride, and accordingly, local counsel had been unable to communicate with Aikin and would likely be unable

to communicate with Aikin in the absence of Attorney McBride. ECF No. 155. On September 12, 2022, the Court denied without prejudice the two motions to withdraw, subject to renewal upon confirmation that Aikin retained substitute counsel in the case, and further ordered substitute counsel for Aikin to enter an appearance on or before October 4, 2022. ECF No. 157. On the same day that the Court entered this Order, RGH refiled their Motion to Assess Defense Fees and Costs. ECF No. 156. In response, local counsel for Aikin filed a Motion for an Extension of Time to File Response, wherein they indicated that the relationship between local counsel and lead counsel for Aikin had broken down and local counsel could not reach Aikin to determine whether it had retained new counsel or be given any guidance concerning a response to the pending Motion for Attorneys’ Fees and Costs. ECF No. 158. The Court granted this extension

request. ECF No. 161. On September 23, 2022, local counsel filed a renewed motion to withdraw as local counsel for Aikin, again indicating that lead counsel had been the sole source of communication with Aikin and local counsel was without instruction as to how to proceed. ECF. No. 159. Also on September 23, 2022, lead counsel for Aikin, Attorney McBride, filed a Motion to Reconsider Denial of Withdrawal of Counsel for Third Party Defendant Aikin Holding Corporation. ECF No. 160. Therein, lead counsel indicated that upon his new employment, he was ethically prohibited from further representing Aikin due to a conflict, that Aikin consented to his withdrawal, and that Aikin was continuing to search for other counsel. Id. Subsequently, on October 5, 2022, lead counsel filed a Declaration indicating that he had made continuous efforts to assist Aikin in locating counsel but he had been unsuccessful. ECF No. 162. The Declaration further provided lead counsel’s contact for Aikin Healthcare, Allen Fan, and indicated that lead counsel believed Mr. Fan was still involved in the proceedings, was actively seeking substitute counsel, and was aware

of the possible outcomes for the pending Motion for Fees and Costs. Id. No new counsel for Aikin entered an appearance prior to the October 4, 2022 deadline set by this Court by its September 12, 2022 Order.

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Bluebook (online)
ZUZEL v. SEPTA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zuzel-v-septa-paed-2023.