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Home My WebLink About96-02562 . ~" ~ ~ ~ . """~ """..." lJ J ~ ~ l""I . " '" ,-- ()-, I', /I' , , , I 0: W Z W m ~ ~ 0 - ~ " ~ ~ . . ~ - " .. u 0 . - N _ c " " z E a . . ~ 0 <( . 0 . N c m . . . , ;; j 0: 0 . ~ a ~ - W . ~ .J ~ . c 0 X Z <( I , 4. On May 10, 19~JS, W'lynl7 K, Snader wall killed in 01 multi- vehicle collision on Rout., 322, 111';\1' Ih.' intersection with Bridge Road in Swatal'a Townnhip. IJ'"lphin Cuunty, PennfJylvania, 5. At the I'ime of Ih" .l(','idcnt, \1aync K, Snader wall an agent, sel'vant, and/ol' ,'mploy"" 01 !l)'t,niz" 'I'nlckinrl. Inc., also located in Cumberland ('ollnly, dnd Wi'"~ ,lCting in ;lIld upon the business of Brenize 'I'nlckin'l. Inc. ,Ind while in the course and scope of his employment with !3rcnize Tnlcking, Inc, 6. On May 10, 1995, Wayne K. Snader was an insured under Brenize Trucking, Inc,'s policy of insurance with American States Insurance Company, policy number lCC520403-6. This policy was in full force and effect on May 10, 1995, the date of the collision. The terms and conditions of the policy provided for underinsured motorist coverage benefits. 7. The negligence of Frederick E, Bonner and Sara E. Bonner, both of whom are deceased. allegedly caused the subject matter collision. The vehicles operated by these individuals were underinsured motor vehicles, as defined in 75 Pa, C,S,A. ~ 1702, 8. On November 30, 1995, Petitioner filed a petition for Appointment of Arbitrator before the Court of Common Pleas of Dauphin County in ol'der to det',l'1l1ine hel' rights to underinsurance benefits under the insurance policy iAsued by Respondent. 9. Also on November lO, 1995, Respondent filed a Declaratory ,Judgment action bef01'" tilt' CouUc of Common Plea8 of Adams Count.y in order to determi n" R',spondent'" r iqht n In.der the i nBurance policy, The reasoning behind the tiling in Adams County is due to Petitioner l'esiding in Ad<lmn County, 10. On December 1:1 j 1 ~) ~l ~} , (ll~t itioncr filed Pl'eliminary Objections to Respondent'/3 Adilm/3 county Complaint which alleged that this dispute should be rellol ved not through <lrbitration but by a judge via a decl<lratol'y judgment action, 11. On March 2fl, 19')6, the Adams County Court sustained Petitioner's Preliminal'y Obj"ctions, thereby dismissing Respondent's Complaint for 1l,'cl,lI'atol'Y ,Judqment, See copy of Judge Kuhn's Order and Opinion, attached aB Exhibit "A." 12. After obtainincj it copy of the insurance policy in question, Petitionel' is abandoning hel' Dauphin County petition and requesting an appointment of an arbitratol' in cumbel'land County due to the language in the policy, See pertinent provisions of Insurance Policy dealing with Arbitration, attached as Exhibit "B," 13. As dictated by sub,section b, arbitration is to take place in the county in which the "insUl'ed" lives, AB previously alleged, the insured in this mat\.(~l'S is 131'enize Tl'ucking, Inc" whose business address in located in cunilierland county, 14, Based upon the l'eallonin'I in ,Judge Kuhn' B decision, this matter should be submitted to i1J'bi tl'at ion, WHEREFORE. Pet i!. i lllWl' It'"!,,,,,,!. f IIll Y J't"Cjlll'lltll Tlli fl 1I0nol'able COII1't to Onlel' ll"lJIHJlld"1l1 I" llllbmi t 1,,,1' i t iOIJel" fJ llnderiIlBIIl'l'!d motol'iflt claim to alldtra!.i"Il, Ih>!JI"C'ctflllly llllbmitted, Dated:~ 1 t, HANDLER--&1'1IENER, ,// /' "_t~ By: I~~ic 11. Wit llUl", Esquire I,D, No, 1004(, By: J ('r-' .~ '.' / ';'James 11, CillTOll, Esquire 1.0, No, 75095 319 Market Street P , 0, Box 11'1'7 lIalTisblll'g, PA 1'1108-117" ('117)238-2000 Attorneys [01' Petitioner IN THE COURT OF COMMON PLEAS OF ADAMS COUNTY, PENNSYLVANIA CIVIL AMERICAN STATES INSURANCE COMPANIES. 95.5-1108 Plaintiff v. TRACY L. SNADER, Administratrix of the Estate 01 WAYNE K. SNADER, Deceased, Defendant OPINiON ON DEFENDANT'S PRELIMINARY OBJECTIONS On November 30, 1995, Plaintiff, American States Insurance Company, flied an action for declaratory judgment against Defendant, Tracy L. Snader, Administratrix of the Estate of Wayne K, Snader, Deceased, The background for this action occurred on May 10, 1995, when Wayne K. Snader was Involved in a fatal vehicular accident In Dauphin County, Pennsylvania, Atlhe time Mr. Snader was operating a dump truck for his employer, Brenlze's Trucking, The dump truck was Insured under an Insurance polley Issued by Plaintiff to Brenlze's Trucking, According to the Instant Complaint Defendant Is seeking underinsured motorist benefits undar the policy. Plaintiff argues that Defendant's recovery Is limited to Workmen's Compensation benefits or, In the alternative, to a maximum underinsured coverage of $35,000, Defendant flied preliminary objections seeking a stay of all proceedings and an order that the Issue of coverege be submil1ed to arbitration, The polley In question contains the following language: ARBITRATION a, If we and en 'Insured' disegree whether the 'Insured' Is legally entilfed to recover damages from the owner or driver of an 'underinsured motor vehicle' or do not agree as to the amount of damages that are recoverable by that 'insured,' then the mal1er may be arbitrated, However, disputes concerning coverage under this endorsement may not be arbitmted, , , Defe"Jtlnt ccntends that whether the estate Is 'legally entitled to recover damages from the owner' of the vehicle Is an issue which can be B1bltrated pursuant to this polley provision, Plaintiff holds the view that whether Workmen's Compensation benellts preclude coverage Is an Issue 'concemlng coverage' and Is not arbitrable, With the excepllon of the last sentence of the above quoted arbitrallon clause that language Is identical to the language found in Ihe policy In Brennan v. General Accident Fire and Ue Assurance Corp" Ltd" 324 Pa, 542, 574 A.2d 580 (1990), In Brennan our Supreme Court stated that, A ravlew of the language of the arbitrallon clause reveals that arbitrallon Is mandated whenever the insured and Ihe Insurer disagree as to when a party Is legally entitled to recover damages, There Is no limit to the jurisdicllon of the arbitrators over what Issues may be submllled and in fact the pOlicr declares that all disputes between the Insurance company and the Insured wll be arbitrated, The Instant dispute, In its broadest sense, involves a disagreement as to the amount of damages which Appellant would and could possibly receive under the policy, This court has held, since the Insurance policy was wrlllen by the Appellee, any ambiguity will be interpreted against the Appellee, , , Given the broad scope of authority given the arbitrators, we have Iitlle dlfflcully in concluding that the dispute herein Is a mailer specifically within the scope of the arbllrallon clause, 524 Pa, at 549, 574 A,2d at 583 (citallon omilled), Although Brennan and its progeny is helpful In defining the scope of arbitrallon clauses In underinsurance policies those cases are only partially helpful in resolving this case, In Brennan here the broad scope of authority for arbltrallon was without express excepllon while In this case there Is a specific exclusion set forth in the last sentence regarding 'coverage', At first glance the first and second sentence of the arbitrallon clause appear In conflict, Such ambiguity would suggest that arbitrallon Is available for the instant dispute because the contract language would be construed against the draller, There Is, however, a more cogent analysis that leads this Court to authorize arbitrallon of this dispute, II appears that the exclusionary language in the arbitrallon clause Is Included In this policy by authority of the Pennsylvania Insurance Department, In Pennsylvania Bullelln, Vol, 24, No, 16, Aprlf 16, 1994, the Insurance Department sel forth permissible arbllrallon provisions for automobile Insurance policies, Those provisions mirror the Brennan policy and the Instant policy, except for the exclusionary sentence, TIle Department currenlly also allows arbitrallon 2 ~ ~ \,., J ,~ ,!}. -.II .." 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