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 Courtf Prudential Property &collateral to the main cause of action;
Casualty Ins. Co. v. Sartno, No. 163 MAP 20052. The right involved is too important to be denied
(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 Motoristclaim will be irreparably lost.
Arbitration Superior Courtf The Hartford Ins. Co.1.1.1. Trade Secrets
v. O'Mara, 2006 PA Super 236 (August 29, 2006)* Superior Courtf Crum v. Bridgestone, 2006 PA
Holding: Under the Uniform Arbitration Act ofSuper 230 (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.f Nationwide Insurance Co. v.1. The extent to which the information is known
Schneider, 2006 PA Super 219 (August 17, 2006)outside of the business;
Holding: Section 1733 of the MVFRL specifies the2. The extent to which the information is known
priority for recovery of underinsured motoristby employees and others involved in the business;
benefits, but neither mentions nor requiresand,
exhaustion of limits. When an insured settles a3. The extent of measures taken to guard the
claim in contravention of a policy'ssecrecy of the information. Order must be
consent-to-settle clause, an insurer must showseparable from and collateral to the main cause of
that its interests are prejudiced.action.
1.1.3. SubrogationFor a court to determine whether a protective
* Supreme Courtf Wirth v. Aetna U.S. Healthcare,order is appropriate under Pa.R.Civ.P. 4019(a)(9),
No. 28 EAP 2005 (August 22, 2006)the discovery standard should embrace both (1)
Holding: Pursuant to the Pennsylvania Healthrelevance and necessity, and (2) a balancing of
Maintenance Organization Act, 40 P.S. §need versus harm. Once a party establishes that
1560(a), a health maintenance organization isthe information sought is a trade secret, the
exempt from complying with the anti-subrogationburden shifts to the requesting party to
provision of the Pennsylvania Motor Financialdemonstrate by competent evidence that there is
Responsibility Law.a compelling need for that information and that
1.2. Medical Malpractice Claimsthe necessity outweighs the harm of the
1.2.1. MCARE Actdisclosure.
* Superior Courtf McManamon v. Washko, 20061.1. Judgment by Default
PA Super 245 (August 31, 2006)* Superior Courtf State Farm Insurance Co. v.
Holding: The Medical Care Availability and ReductionBarton, 2006 PA Super 210 (August 7, 2006)
of Error Act does not apply to injuries not causedHolding: After a responsive pleading is filed, even if
by medical negligence.untimely, a judgment by default cannot be
1.3. Sovereign Immunityentered because the responding party is no longer
1.3.1. Real Property & Sidewalks Exceptionsin default.
* Commonwealth Courtf Reid v. City of1.2. Settlement
Philadelphia, No. 1572 C.D. 2005 (August 3, 2006)* Commonwealth Courtf Brannam v. Reedy, No.
Holding: A street owned by a municipality that is2590 C.D. 2005 (August 14, 2006)
designated a Commonwealth highway continuesHolding: An evidentiary hearing is required when
to be owned by the municipality. If a person isone party disputes the existence of a settlement
injured on a municipal sidewalk that adjoins aagreement or its binding effect, and is the
designated highway, the municipality remains theappropriate procedure even when there is a
owner of the sidewalk and the sidewalk is,written agreement signed by counsel if it is alleged
therefore, within the "right of way" of a streetthat counsel lacked the authority to bind his client.
owned by the municipality for purposes ofThere must also be a hearing when a settlement
analyzing governmental immunity under theis vacated by court order or enforced by court
Political Subdivision Tort Claims Act.f LoFurno v.order. A hearing must be held even if the trial
Garnet Valley School District, No. 2082 C.D. 2005court has "intimate knowledge" of the facts as a
(May 3, 2006)result of a pre-hearing conference because a trial
Holding: A belt sander, designed to be bolted tocourt's recital of facts is not a substitute for a full
the floor, that is not hardwired or permanentlyrecord. A hearing must also be held, despite filing
attached to the floor or to a dust collectiona petition and answer, even if no party requests
system, is personalty, and not a fixture under theone.
real property exception to governmental1.3. Transfer From Federal Court to State Courtf
immunity under the Political Subdivision Tort ClaimsFalcone v. The Insurance Company of the State
Act.of Pennsylvania, 2006 PA Super 241 (August 30,
2. Civil Procedure2006)
2.1. AppealHolding: Pursuant to 42. Pa.C.S.A. § 5103, a
2.1.1. Conflict Between Federal & Pennsylvaniaparty may transfer a case from federal court to
Lawthe appropriate state court when the federal
* Superior Courtf Trombetta v. Raymond Jamescourt lacks diversity jurisdiction. The date of the
Financial Services, Inc., 2006 PA Super 229federal filing becomes the date of the state filing
(August 22, 2006)for purposes of the applicable statute of
Holdings: 1.The standards of review of anlimitations. To comply, a party must promptly file
arbitration award under the Pennsylvania Uniforma certified transcript of the final judgment of the
Arbitration Act are not preempted by the Federalfederal court and related pleadings in a
Arbitration Act (FAA).Pennsylvania court or magisterial district. A party
2. The standards of review under the FAA cannotdoes not comply with the statute by filing a new
preempt the Pennsylvania standards for reviewcomplaint in state court.
of arbitration awards unless the Pennsylvania2. Unemployment Compensation
standards of review frustrate the underlying2.1. Necessitous and Compelling Reason to Quit
objectives of the FAA because standards of* Commonwealth Courtf Brunswick Hotel &
review are an inherently procedural mechanismConference Center, LLC v. Unemployment
used to facilitate judicial resolution ofCompensation Board of Review), No. 464 C.D.
controversies after the underlying arbitration2006 (August 23, 2006)
agreement has been enforced in accordance withHolding: Elimination of health care benefits
the FAA.constitutes a substantial change in employment
3. Common law arbitration standards of review doterms and serves as a necessitous and compelling
not violate the core objective and principlesreason for a claimant to resign from employment,
underlying the FAA. Pennsylvania law governs thethus entitling the claimant to unemployment
question of whether parties can impose de novocompensation benefits.
review on trial courts by virtue of contractual3. Workers' Compensation
agreements.3.1. Appellate Review
4. De novo review clauses contained in arbitration* Supreme Courtf Trimmer v. Workers'
agreements are unenforceable as a matter of lawCompensation Appeal Board (Monaghan
in Pennsylvania.f Joseph v. Advest, Inc., 2006 PATownship), No. 58 MAL 2006 (August 3, 2006)
Super 213 (August 8, 2006)Holding: The Commonwealth Court (and
Holding: The provision of the Federal Arbitrationpresumably the Workers' Compensation Appeal
Act permitting a party three months to challengeBoard) may not substitute its determination of
an arbitration award is procedural. Pennsylvania'sthe facts and credibility of witnesses for the
30-day deadline (under either the UniformWorkers' Compensation Judge's proper
Arbitration Act or common law arbitration) forassessments. This per curiam Order summarily
contesting arbitration awards applies to suchreverses the Commonwealth Court's decision
appeals, and appeals filed more than 30 daysbecause determination of facts and credibility is
after the entry of the award are untimely.solely within the province of the Workers'
2.2. Capacity to SueCompensation Judge.
* Superior Courtf George Stash & Sons v.3.2. Hearing Loss/Employer Liability
New Holland Credit Co., LLC, 2006 PA Super 206* Commonwealth Courtf Hayduk v. Workers'
(August 2, 2006)Compensation Appeal Board (Bemis Co., Inc.), No.
Holding: The Fictitious Name Act provides that an230 C.D. 2006 (August 11, 2006)
entity that fails to register its fictitious name shallHolding 1: When an employer (Company A)
not be permitted to maintain any action in apurchases the assets, but not the liabilities, of
Pennsylvania tribunal. Where, as here, a person oranother company (Company B), including the plant
entity knows the identity of the persons withwhere the claimant worked, and the purchase
whom he or she is dealing, he cannot assert thespecifically excludes any of Company B's workers'
lack of capacity to sue under the Fictitious Namecompensation liabilities that arose prior to the
Act.purchase of the assets, Company A is not liable
2.3. Collateral Source Rulefor any work-related hearing loss that occurred
* Superior Courtf Simmons v. Cobb, 2006 PAprior to its purchase of Company B.
Super 222 (August 16, 2006)Holding 2: Under Section 306©(8)(iv) of the
Holding: The collateral source rule does notWorkers' Compensation Act,audiometric testing
preclude a plaintiff from introducing evidence offor a work-related hearing loss must conform to
the receipt of Social Security Disability benefits.applicable OSHA standards. It is the employer's
Rather, the collateral source rule, which is intendedburden, however, to establish that an occupational
to protect tort victims, provides that paymenthearing loss is attributable to a previous employer.
from a collateral source shall not diminish theWhen, as here, the employer fails to meet this
damages otherwise recoverable from theburden, it remains liable for all of a claimant's
wrongdoer. In this case, plaintiff sought tocompensable hearing loss.
introduce evidence of receipt of SSD benefits.3.3. Impairment Rating Examinations
2.4. Forum Non Conveniens* Supreme Courtf Dowhower v. Workers'
* Superior Courtf Wright v. Aventis Pasteur, Inc.,Compensation Appeal Board (Capco Contracting,
2006 PA Super 203 (August 2, 2006)Inc.), No. 542 MAL 2003 (August 11, 2006)
Holding: In determining whether to dismiss a caseHolding: The Supreme Court has granted
pursuant to 42 Pa.C.S.A. § 5322(e) based onclaimant's Petition for Allowance of Appeal and will,
forum non conveniens, the trial court mustpresumably, address the issue of whether an
consider two important factors: (1) a plaintiff'semployer may request an Impairment Rating
choice of the place of suit will not be disturbedExamination before the 104-week period in
except for weighty reasons, and (2) no action willSection 306(a.2)(1) of the Workers' Compensation
be dismissed unless there is an alternative forumAct.
available to the plaintiff. As Superior Court3.4. Physical Examinations
acknowledges - this decision diverges from "the* Commonwealth Courtf Knechtel v. Workers'
apparent trend in recent forum non conveniensCompensation Appeal Board (Marriott Corp.), No.
decisions … toward dismissing cases140 C.D. 2006 (August 24, 2006)
brought in Pennsylvania where another forum isHolding: Pursuant to Section 314(a) of the
available."Workers' Compensation Act, when an employee's
2.5. Interlocutory Appealsphysician attends an employer-requested physical
2.5.1. Generallyexamination, the employee is entitled, at
* Supreme Courtf Pridgen v. Parker Hannifinemployee's expense, to have a health care
Corp., Nos. 8 & 9 EAP 2005 (August 22,provider of his or her own selection participate in
2006)such examination. Participation is limited to
Holding: In order for a trial court Order to be aattendance and observation.