A Summary Of Recent Appellate Decisions From Pennsylvania (September 2006)

Pennsylvania State Court Decisions"collateral order" under Pa.R.A.P. 313 - and
1. Civil Litigationappealable as a matter of right - the following
1.1. Automobile Insurancethree factors must be present:
1.1.1. "Cars for Hire"1. The Order must be separable from and
*Supreme Courtcollateral to the main cause of action;
♦ Prudential Property & Casualty Ins. Co.2. The right involved is too important to be denied
v. Sartno, No. 163 MAP 2005 (August 21, 2006)review and must involve rights deeply rooted in
Holding: An insured's use of his private vehicle topublic policy going beyond the particular litigation at
deliver pizza does not render the automobile ahand; and,
"car for hire" and does not trigger the3. The question presented is such that if review is
exclusionary provision of the insurance policy.postponed until final judgment in the case, the
1.1.2. Uninsured & Underinsured Motorist Arbitrationclaim will be irreparably lost.
* Superior Court1.1.1. Trade Secrets
♦ The Hartford Ins. Co. v. O'Mara, 2006* Superior Court
PA Super 236 (August 29, 2006)♦ Crum v. Bridgestone, 2006 PA Super
Holding: Under the Uniform Arbitration Act of230 (August 23, 2006)
1980, when the application or construction of anHolding 1: This decision contains the same holding
insurance policy provision is at issue, the dispute isrelating to collateral orders as Pridgen (above).
within the exclusive jurisdiction of the arbitrators.Holding 2: Pursuant to Section 757(b) of the
A court will take jurisdiction only when theRestatement (2d) of Torts and Pennsylvania law,
claimant attacks a particular provision as: (1)in order to determine whether particular
contrary to a constitutional, legislative orinformation is to be given trade secret status, a
administrative mandate; (2) against public policy;court should consider the following factors:
or, (3) unconscionable.1. The extent to which the information is known
♦ Nationwide Insurance Co. v. Schneider,outside of the business;
2006 PA Super 219 (August 17, 2006)2. The extent to which the information is known
Holding: Section 1733 of the MVFRL specifies theby employees and others involved in the business;
priority for recovery of underinsured motoristand,
benefits, but neither mentions nor requires3. The extent of measures taken to guard the
exhaustion of limits. When an insured settles asecrecy of the information. Order must be
claim in contravention of a policy'sseparable from and collateral to the main cause of
consent-to-settle clause, an insurer must showaction.
that its interests are prejudiced.For a court to determine whether a protective
1.1.3. Subrogationorder is appropriate under Pa.R.Civ.P. 4019(a)(9),
* Supreme Courtthe discovery standard should embrace both (1)
♦ Wirth v. Aetna U.S. Healthcare, No. 28relevance and necessity, and (2) a balancing of
EAP 2005 (August 22, 2006)need versus harm. Once a party establishes that
Holding: Pursuant to the Pennsylvania Healththe information sought is a trade secret, the
Maintenance Organization Act, 40 P.S. §burden shifts to the requesting party to
1560(a), a health maintenance organization isdemonstrate by competent evidence that there is
exempt from complying with the anti-subrogationa compelling need for that information and that
provision of the Pennsylvania Motor Financialthe necessity outweighs the harm of the
Responsibility Law.disclosure.
1.2. Medical Malpractice Claims1.1. Judgment by Default
1.2.1. MCARE Act* Superior Court
* Superior Court♦ State Farm Insurance Co. v. Barton,
♦ McManamon v. Washko, 2006 PA Super2006 PA Super 210 (August 7, 2006)
245 (August 31, 2006)Holding: After a responsive pleading is filed, even if
Holding: The Medical Care Availability and Reductionuntimely, a judgment by default cannot be
of Error Act does not apply to injuries not causedentered because the responding party is no longer
by medical negligence.in default.
1.3. Sovereign Immunity1.2. Settlement
1.3.1. Real Property & Sidewalks Exceptions* Commonwealth Court
* Commonwealth Court♦ Brannam v. Reedy, No. 2590 C.D. 2005
♦ Reid v. City of Philadelphia, No. 1572 C.D.(August 14, 2006)
2005 (August 3, 2006)Holding: An evidentiary hearing is required when
Holding: A street owned by a municipality that isone party disputes the existence of a settlement
designated a Commonwealth highway continuesagreement or its binding effect, and is the
to be owned by the municipality. If a person isappropriate procedure even when there is a
injured on a municipal sidewalk that adjoins awritten agreement signed by counsel if it is alleged
designated highway, the municipality remains thethat counsel lacked the authority to bind his client.
owner of the sidewalk and the sidewalk is,There must also be a hearing when a settlement
therefore, within the "right of way" of a streetis vacated by court order or enforced by court
owned by the municipality for purposes oforder. A hearing must be held even if the trial
analyzing governmental immunity under thecourt has "intimate knowledge" of the facts as a
Political Subdivision Tort Claims Act.result of a pre-hearing conference because a trial
♦ LoFurno v. Garnet Valley School District,court's recital of facts is not a substitute for a full
No. 2082 C.D. 2005 (May 3, 2006)record. A hearing must also be held, despite filing
Holding: A belt sander, designed to be bolted toa petition and answer, even if no party requests
the floor, that is not hardwired or permanentlyone.
attached to the floor or to a dust collection1.3. Transfer From Federal Court to State Court
system, is personalty, and not a fixture under the♦ Falcone v. The Insurance Company of
real property exception to governmentalthe State of Pennsylvania, 2006 PA Super 241
immunity under the Political Subdivision Tort Claims(August 30, 2006)
Act.Holding: Pursuant to 42. Pa.C.S.A. § 5103, a
2. Civil Procedureparty may transfer a case from federal court to
2.1. Appealthe appropriate state court when the federal
2.1.1. Conflict Between Federal & Pennsylvania Lawcourt lacks diversity jurisdiction. The date of the
* Superior Courtfederal filing becomes the date of the state filing
♦ Trombetta v. Raymond James Financialfor purposes of the applicable statute of
Services, Inc., 2006 PA Super 229 (August 22,limitations. To comply, a party must promptly file
2006)a certified transcript of the final judgment of the
Holdings: 1.The standards of review of anfederal court and related pleadings in a
arbitration award under the Pennsylvania UniformPennsylvania court or magisterial district. A party
Arbitration Act are not preempted by the Federaldoes not comply with the statute by filing a new
Arbitration Act (FAA).complaint in state court.
2. The standards of review under the FAA cannot2. Unemployment Compensation
preempt the Pennsylvania standards for review2.1. Necessitous and Compelling Reason to Quit
of arbitration awards unless the Pennsylvania* Commonwealth Court
standards of review frustrate the underlying♦ Brunswick Hotel & Conference Center,
objectives of the FAA because standards ofLLC v. Unemployment Compensation Board of
review are an inherently procedural mechanismReview), No. 464 C.D. 2006 (August 23, 2006)
used to facilitate judicial resolution ofHolding: Elimination of health care benefits
controversies after the underlying arbitrationconstitutes a substantial change in employment
agreement has been enforced in accordance withterms and serves as a necessitous and compelling
the FAA.reason for a claimant to resign from employment,
3. Common law arbitration standards of review dothus entitling the claimant to unemployment
not violate the core objective and principlescompensation benefits.
underlying the FAA. Pennsylvania law governs the3. Workers' Compensation
question of whether parties can impose de novo3.1. Appellate Review
review on trial courts by virtue of contractual* Supreme Court
agreements.♦ Trimmer v. Workers' Compensation
4. De novo review clauses contained in arbitrationAppeal Board (Monaghan Township), No. 58 MAL
agreements are unenforceable as a matter of law2006 (August 3, 2006)
in Pennsylvania.Holding: The Commonwealth Court (and
♦ Joseph v. Advest, Inc., 2006 PA Superpresumably the Workers' Compensation Appeal
213 (August 8, 2006)Board) may not substitute its determination of
Holding: The provision of the Federal Arbitrationthe facts and credibility of witnesses for the
Act permitting a party three months to challengeWorkers' Compensation Judge's proper
an arbitration award is procedural. Pennsylvania'sassessments. This per curiam Order summarily
30-day deadline (under either the Uniformreverses the Commonwealth Court's decision
Arbitration Act or common law arbitration) forbecause determination of facts and credibility is
contesting arbitration awards applies to suchsolely within the province of the Workers'
appeals, and appeals filed more than 30 daysCompensation Judge.
after the entry of the award are untimely.3.2. Hearing Loss/Employer Liability
2.2. Capacity to Sue* Commonwealth Court
* Superior Court♦ Hayduk v. Workers' Compensation
♦ George Stash & Sons v. New HollandAppeal Board (Bemis Co., Inc.), No. 230 C.D. 2006
Credit Co., LLC, 2006 PA Super 206 (August 2,(August 11, 2006)
2006)Holding 1: When an employer (Company A)
Holding: The Fictitious Name Act provides that anpurchases the assets, but not the liabilities, of
entity that fails to register its fictitious name shallanother company (Company B), including the plant
not be permitted to maintain any action in awhere the claimant worked, and the purchase
Pennsylvania tribunal. Where, as here, a person orspecifically excludes any of Company B's workers'
entity knows the identity of the persons withcompensation liabilities that arose prior to the
whom he or she is dealing, he cannot assert thepurchase of the assets, Company A is not liable
lack of capacity to sue under the Fictitious Namefor any work-related hearing loss that occurred
Act.prior to its purchase of Company B.
2.3. Collateral Source RuleHolding 2: Under Section 306(c)(8)(iv) of the
* Superior CourtWorkers' Compensation Act,audiometric testing
♦ Simmons v. Cobb, 2006 PA Super 222for a work-related hearing loss must conform to
(August 16, 2006)applicable OSHA standards. It is the employer's
Holding: The collateral source rule does notburden, however, to establish that an occupational
preclude a plaintiff from introducing evidence ofhearing loss is attributable to a previous employer.
the receipt of Social Security Disability benefits.When, as here, the employer fails to meet this
Rather, the collateral source rule, which is intendedburden, it remains liable for all of a claimant's
to protect tort victims, provides that paymentcompensable hearing loss.
from a collateral source shall not diminish the3.3. Impairment Rating Examinations
damages otherwise recoverable from the* Supreme Court
wrongdoer. In this case, plaintiff sought to♦ Dowhower v. Workers' Compensation
introduce evidence of receipt of SSD benefits.Appeal Board (Capco Contracting, Inc.), No. 542
2.4. Forum Non ConveniensMAL 2003 (August 11, 2006)
* Superior CourtHolding: The Supreme Court has granted
♦ Wright v. Aventis Pasteur, Inc., 2006 PAclaimant's Petition for Allowance of Appeal and will,
Super 203 (August 2, 2006)presumably, address the issue of whether an
Holding: In determining whether to dismiss a caseemployer may request an Impairment Rating
pursuant to 42 Pa.C.S.A. § 5322(e) based onExamination before the 104-week period in
forum non conveniens, the trial court mustSection 306(a.2)(1) of the Workers' Compensation
consider two important factors: (1) a plaintiff'sAct.
choice of the place of suit will not be disturbed3.4. Physical Examinations
except for weighty reasons, and (2) no action will* Commonwealth Court
be dismissed unless there is an alternative forum♦ Knechtel v. Workers' Compensation
available to the plaintiff. As Superior CourtAppeal Board (Marriott Corp.), No. 140 C.D. 2006
acknowledges - this decision diverges from "the(August 24, 2006)
apparent trend in recent forum non conveniensHolding: Pursuant to Section 314(a) of the
decisions ... toward dismissing cases brought inWorkers' Compensation Act, when an employee's
Pennsylvania where another forum is available."physician attends an employer-requested physical
2.5. Interlocutory Appealsexamination, the employee is entitled, at
2.5.1. Generallyemployee's expense, to have a health care
* Supreme Courtprovider of his or her own selection participate in
♦ Pridgen v. Parker Hannifin Corp., Nos. 8such examination. Participation is limited to
& 9 EAP 2005 (August 22, 2006)attendance and observation.
Holding: In order for a trial court Order to be a