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THOMAS E, HILSON.
PIa inti ff
#1f;
IN THE COURT OF COMMON PLEAS OF
CUMRFRLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAH
V,
BARBARA ANN SCOTT,
Defendant
No, 97-0251 CIVIL TERM
PRETRIAL ,CONFERENCE
At 0 pretrial conference held April 29, 1998. before
Edgar B, Bayley, judge. present for the plaintiff was David L,
Lutz. Esquire, and for defendant. Debra p, Fourlas, Esquire,
This is an automobile occident case in which liability
is contested, Estimoted time of trial. one and a half days,
Plaintiff is a resident of Texas, He maintains that
he has not received first party benefits. If that is true and
there is liability in the present case, that liability would
extend to all damages, If Plaintiff has received first party
benefits. there is an issue raised in defendant's motion in
limine to preclUde eVldence concerning such benefits, The issue
has apparently been addressed by a decision of Judge Hoffer,
supported by a written opinion dated January 16, 1998, in the
case of H.OgJJn....'L._,liaitin.s.,J1otoL~ine.s at 94-5098,
ui~___
Edgar B. Bayley, .
David L, Lutz, Esquire
For Plaintiff
Debra p, Fourlas, Esquire
For Defendant
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THOMAS E. WILSON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
BARBARA ANN SCOTT,
Defendant
NO, 97-251 Civil
JURY TRIAL DEMANDED
PLAINTIFF'S PRE-TRIAL MEMORANDUM
I. Brief narrative statement of the case
This litigation involves a motor vehicle accident. On May 3,
1995, Plaintiff, Thomas Wilson, was operating an F-150 Ford pick-
up, traveling northbound on North Bedford Street, Carlisle,
Cumberland County, Pennsylvania,
At the same time, Defendant,
Barbara Scott, operating a 1988 Cadillac Coupe DeVille southbound
on North Bedford Street, turned left directly in front of Mr.
Wilson's vehicle.
II. List all tvpes and amounts of all damaqes claimed
A. Non-economic damages. As a result of the accident, Mr.
Wilson sustained a left shoulder injury and a left knee
anterior cruciate ligament insufficiency.
B.
Economic damages.
Mr. Wilson's present medical bills
total $1,428.17, and the orthopedic surgeon has testified
that his professional fee for anticipated surgery would
be between $4,000 and $5,000. Mr. Wilson will also claim
work loss and a loss of earning capacity. Mr. Wilson has
earned a black belt in karate and had plans to continue
131S07/MTG
1
to teach karate, and he has found that he cannot continue
to teach, Therefore, he is losing income with regard to
his inability to teach karate in the past, as well as his
plans for the future.
III .
List of names and addresses
as witnesses. classifyinq
witnesses
of all persons who may be called
them as liability or damaqe
Attached as Exhibit A is Plaintiff's counsel's June 24, 1997,
letter listing the liability witnesses and damage witnesses.
IV. List of all exhibits which a party intends to use at trial
Attached as Exhibit A is Plaintiff's counsel's June 24, 1997,
letter listing the liability exhibits and damage exhibits.
V. COpy of the written report or answer to written
interroqatories consistent wi th Rule 4003.5 containinq opinion
of expert witnesses
A. Dr. John Ricks. Attached as Exhibit B is Dr. Ricks's
July 8, 1997, medical report.
B.
Dr. Robert Hunnicutt.
Attached as Exhibit C is Dr.
Hunnicutt's September 10, 1997, orthopedic report.
VI. Stipulation of the parties. if any
None anticipated.
2
CERTIFICATE OF SERVICE
I, Mary T. Geraets, an employee of the law firm of Angino &
,
Rovner, P.C., do hereby certify that I am this day serving a true
and correct copy of PLAINTIFF'S PRE-TRIAL MEMORANDUM upon all
counsel of record via postage prepaid first class United States
mail addressed as follows:
Harvey Freedenberg, Esquire
100 Pine Street
P.O. Box 1166
Harrisburg, PA 17108
Dated: L/ -if I-q~
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JOSEPH M, MELILLO
TCIU\ n. HYMAN
DAVIDL, urrz
MICHAEL E. KOSIK
PAMELA 0, SllUMAN
RICHARD A, SADLOCK
DAYlD S, WISNESKI
NUOLl! C. OLSON
ANGINO & ROVNER, P.C.
MICIIAn. J. NAVrrSKY
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".i.U'Dt'o!rr:: F v.pn"l:
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LISTCD IN
DAWN L. JENNINOS
SOLgf lorl ~, IlRf:v:ntV-
JOSEPH M. DORIA
DUANE S DARRICK
JAMES OtCINTI
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TIlE BEST LAWYERS
-IN-
A.\lERICA
RICHARD C. ANGINO
NEIL J, ROVNER
June 24, 1997
Harvey Freedenberg, Esquire
100 Pine Street
P.O. Box 1166
Harrisburg, PA 17108-1166
Re: Wilson v. Scott
Dear Harvey:
The liability witnesses we plan to call at trial are as
follows:
1. Plaintiff Tom Wilson
2. Defendant Scott, as if on cross-examination
3. Lesly Post
4. Police Officer Larry Kell
5. David Conrad
6. Karen Williams
The damage witnesses we plan to call at trial are as follows:
1. plaintiff Tom Wilson
2. Lesly Post
3. A physician from Apple-A-Day
4. Dr. Robert Hunnicutt
5. Daron E. Allen - Executive Director of "The Health &
Fitness Connection"
6. Lucy Hess - former employee at "The Health & Fitness
Connection"
7. Keith Tindell - Rental Manager at Clarklift
8. Gary Gleghorn - Executive Vice President/General Manager
at Clarklift
9. Tate Chesney - sparring partner
10. Mike Sherman - sparring partner
11. David Griffin - sparring partner
E-jJ1,h>1 (j
4503 NORTH FROflT STREET. HARRISBURG, PA 17110.1708
(717) 238.8791
FAX (717) 238.5810
Harvey Freedenberg, Esquire
Page 2
June 24, 1997
l
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The liability exhibits we plan to introduce at trial are as
follows:
1. Photographs of the accident scene
2. Diagram of the accident scene
3, Photographs depicting the damage to the Defendant's
Cadillac
The damage exhibits we plan to introduce at trial are as
follows:
1, Admissible medical bills
2. Photographs of Mr. Wilson's karate awards, certificates,
trophies, etc.
3, Knee brace
4. Relevant income tax returns
Should you require further information and/or documentation in
order to prepare your defense of this case, please contact me.
Thank you.
Very truly yours,
~
David L. Lutz
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t~ndern~s. and spasm of the left trapezeous muscle and the
left sUpt'aspinatus muscle, as well as left rhomboids (all
of these muscle gt'OUps are in th~ ll'ft uppe.' back and extend
to the left postet'ior neck), Left knee showed positive
tenderness and minimal sw~lling on examination. It however,
had good range of motion and th~ sw~lling was not~d to be
lateral to the pat~lla. There wer~ no interruptions of the
skin int~grity and the pati~nt was noted to have a positive
Lachman sign bilat~rally, This test looks for laxity of the
anterior cruciate ligam~nt and if unilateral and confined to
the injured kn~~, is a good indicatot' of a tot'n antet'ior
cruciate ligament. HO~j~vet', in this cas~, Dt'. Pat'Vlls noted
that it was bilaterally positiv~ which occasionally speaks to
congenital looseness of th~ kne~s and thus would not be
indicat ive of an acute in,ilwy, Dt', Pat'vus obtained xrays of
the cervical spine, the l~ft shoulder, the left knee, and a
chest xray, and obtained a urinalysis, I beli~ve you have
th~ reports of th~ xrays, which reveal~d no bony pathology
and only multiple foreign bodies in the right ant~rior chest
wall which were historically not relat~d to this accid~nt.
Dr. Parvus's impression was motor vehicl~ accid~nt with l~ft
neck and left shoulder sprain and a contusion of the left
kne~. H~ treated the pati~nt with a kne~ immobilizet' to
protect the knee if th~ ligaments had be~n injured and with
Motrin, an anti-inflammatory agent ~~ich also is an analgesic,
and also with Skelaxin, a muscle relaxant. H~ asked th~
patient to return in five to seven (5-7) days for a
r~-evaluation. The patient apparently had intended to
follow-up with another physician and he took the xray films
with him at th~ time of the patient's original visit, Mr.
Wilson never returned for follow-up here and never return~d
his Xt'ays to us.
This is all of the information I have on Mr. Wilson. If you
have any flwther questions, please don't hesitate to give me
a call.
Sincet'~ly yours,
d4,o ~~:~o:'
Ph. D.
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PAGE 1
Ltatlon
< INS Art, 5,06-3
I,A,T.S, Insurance
Database
TX-ST-ANN
Mode
Page
FOUND DOCUMENT
Code, Art, 5,06-3
VERNON'S TEXAS STATUTES AND CODES ANNOTATED
INSURANCE CODE
CHAPTER FlVE--RATING AND POLICY FORMS
SUBCHAPTER A, MOTOR VEHICLE OR AUTOMOBILE INSURANCE
Copr. (C) West 1996, All rights reserved,
Current through end of 1995 Reg, Sess,
\It. 5.06-3. Personal Injury Protection Coverage
(a) No automobile liability insurance policy, including insurance issued
Jursuant to an assigned risk plan established under authority of Section 35 of
:he Texas Motor Vehicle Safety-Responsibility Act, [FN1] covering liability
lrising out of the ownership, maintenance, or use of any motor vehicle shall be
ielivered or issued for delivery in this state unless personal injury
Jrotection coverage is provided therein or supplemental thereto, The coverage
required by this article shall not be applicable if any insured named in the
Jolicy shall reject the coverage in writing; provided, unless the named
Lnsured thereafter requests such coverage in writing, such coverage need not be
?rovided in or supplemental to a renewal policy if the named insured has
rejected the coverage in connection with a policy previously issued to him by
che same insurer or by an affiliated insurer,
(b) "Personal injury protection" consists of provisions of a motor vehicle
Liability policy which provide for payment to the named insured in the motor
Jehicle liability policy and members of the insured's household, any authorized
Jperator or passenger of the named insured's motor vehicle including a guest
Jccupant, up to an amount of $2,500 for each such person for payment of all
reasonable expenses arising from the accident and incurred within three years
from the date thereof for necessary medical, surgical, X-ray and dental
services, including prosthetic devices, and necessary ambulance, hospital,
?rofessional nursing and funeral services, and in the case of an income
?roducer, payment of benefits for loss of income as the result of the
lccident; and where the person injured in the accident was not an income or
Nage producer at the time of the accident, payments of benefits must be made in
reimbursement of necessary and reasonable expenses incurred for essential
services ordinarily performed by the injured person for care and maintenance of
the family or family household. The insurer providing loss of income benefits
nay require, as a condition of receiving such benefits, that the insured person'
furnish the insurer reasonable medical proof of his injury causing loss of ;
income. The personal injury protection in this paragraph specified shall riot
~xceed $2,500 for all benefits, in the aggregate, for each person.
(c) The benefits required by this Act shall be payable without regard to the
fault or non-fault of the named insured or the recipient in causing or ,
=ontributing to the accident, and without regard to any collateral source of
~edical, hospital, or wage continuation benefits. An insurer paying benefits
pursuant to this Act shall have no right of subrogation and no claim against
any other person or insurer to recover any such benefits by reason of the
alleged fault of such other person in causing or contributing to the accident.
(d) All payments of benefits prescribed under this Act shall be made
Copr. (C) West 1996 No claim to orig. U.S. govt. works
Ej-hi'bJ- E
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TX INS' Art. 5.06-3
TEXT
PAGE
2
periodically as the claims therefor arise and within thirty (30) days after
satisfactory proof thereof is received by the insurer subject to the following
limitations:
(1) The coverage described in this Act may prescribe a period of not less than
six months after the date of accident within which the original proof of loss
with respect to a claim for benefits must be presented to the insurer,
(2) The coverage described in this Act may provide that in any instance where
a lapse occurs in the period of total disability or in the medical treatment of
an injured person who has received benefits under such coverage and such person
subsequently claims additional benefits based upon an alleged recurrence of the
injury for which the original claim for benefits was made, the insurer may
require reasonable medical proof of such alleged recurrence; provided, that in
no event shall the aggregate benefits payable to any person exceed the maximum
limits prescribed in the policy,
(3) In the event the insurer fails to pay such benefits when due, the person
entitled to such benefits may bring an action in contract to recover the same;
and, in the event the insurer is required to pay such benefits, the person
entitled to such benefits shall be entitled to recover reasonable attorneys
fees plus 12% penalty, plus interest thereon at the legal rate from the date
such sums became overdue.
(e) An insurer shall exclude benefits to any insured, or his personal
representative, under a policy required by Section 1, when the insured's
conduct contributed to the injury he sustained in any of the following ways:
(1) Causing injury to himself intentionally,
(2) While in the commission of a felony, or while seeking to elude lawful
apprehension or arrest by a law enforcement official,
(f) This article applies only to motor vehicle insurance policies subject to
this subchapter and does not apply to other accident or health policies even
though they promise indemnity against automobile-connected injuries.
(g) Nothing contained in this Act shall affect the offering of medical
payments coverage, disability benefits, and accidental death benefits, as
presently prescribed by the State Board of Insurance; and nothing contained in
this Act shall be construed to prevent an insurer from providing broader
benefits than the minimum benefits enumerated in this Act subject to the rules
and forms prescribed by the State Board of Insurance,
(h) When any liability claim is made by any guest or passenger described in
paragraph (b) hereof against the owner or operator of the motor vehicle in
which he was riding or the owner's or operator's liability insurance carrier,
the owner or operator of such motor vehicle or his liability insurance carrier
shall be entitled to an offset, credit or deduction against any award made to ·
such guest or passenger in an amount of money equal to the amounts paid by the
owner, operator or his automobile liability insurance carrier under "personal
injury protection" as defined in this Act to such guests or passengers;
provided, however, that nothing herein shall be construed to authorize a direct
action against a liability insurance company if such right does not presently
exist at law.
Copr. (C) West 1996 No claim to orig. U.S. govt. works
L.
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(tS)
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168
Sf? FEDERAL REPORTER, 2d SERIES
61..
pursue the matter further, The agent
claimed that, In view of plaintiff's refusal
to obey proper orders, the company's ac.
tlon was entirely justltled,
On February 27, 1nG2, an examiner for
the UnllA!d Stllles Coast GUlll'd found
plaintiff aullty of negligence In steering
the 5.5, "Export Aide," and suspended
his seaman's documents on probation,
This ruling was reversed by the Acting
Commandant on December 16, 1963, on
the limited ground that plaintiff "could
not steer properly, at any time, even
after considerable practice" and there.
fore could not be charged with negll.
gence.
Meanwhile, plaintiff, because of the
company's failure to rehire him and the
union's failure to prosecute his grlev.
ance, had tiled Ii series of charKes with
the National Labor Relations Board
against the union and the company. In
each Instance the Regional Director and
the General Counsel of the Board, tlnd.
Ing no basis for plaintiff's claim that he
was the object of dlxcrlmlnatory treat.
ment, refused to issue a complaint.
On August 21,1964, plaintiff Instituted
the present suit. Defendant" moved to
dismiss the action under Fed.R.Civ.P.
12(b) (G) and for aummary judgment
under Fed.R.Clv.P. 56, Judge Bonsai
aranted the motion for summary judg.
ment, ruling that the papers which had
been submitted to him demonstrated that
"plaintiff was not discharged without
cause," that "the Union did not act in
bad faith in refusing to process his grlev.
ance for wrongful discharge,':' and that
"plaintiff's charges of conspiracy and
fraud are conclusory · . ."
We agree with the district judge that
the papers In this case demonstrate, pur-
suant to Fed.R.Clv.P. 5G(c), "that there
Is no genuine Issue as to any material
fact and that the [defendants are] en-
titled to a judgment as a matter of law."
We have also considered plaintiff's pro-
cedural objections and find them to be
without merit as grounds for reversing
the district court. The judgment below
,Is therefore affinned.
8. In.ur.n~.
Mexlca
surance co.
Mexican II
liability Cl
place In Me
4. Insurant
Prol'!:
Insurance
trolled by :
SEGUROS TEPEYAC, S. A" CmfPANIA
MEXICANA de SEGUROS GEN.
ERALES, Appellant,
v,
Maynard BOSTRO~I and Jam.. L.
JernlglU1, Appelleea.
No. 21187,
United States Court of Appeals
Fifth Circuit.
June 16, 1965,
G. Insuran.
Provl
with civil
ognlzed tI
benetlclar:
8. Insurar.
Polic:
to insuret
by Insure
See .
for at
~.ftnlll
7. Insural
Uridt
stating II
Insurer u
tlnal jud,
permit dl
ant agah
recoveree
IIshes the
than Ind
tlon aga;
ley or Ie'
against i-
8. InSUla)
Und,
law, poll
payable ,
suffered (
proved a'
Icy, 'rath,
plaintiff,
, against i.
thlrd.pal'
. polley.
9. AcUon
In d.
um appl'
elgn na'
should :
JUF
Action by Injured claimant against
automobile liability Insurer for damages
over polley limits for alleged breach of
duty to defend or settle. The United
States District Court for the Northern
District of Texas, Leo Brewster, J., 225
F.Supp. 222, rendered judgment for
plaintiff, and the defendant appealed.
The Court of Appeals, Wisdom, Circuit
Judge, held that under Texas law, in-
jured claimant had no standing to sue
liability Insurer for excess over policy
limits, for insurer's alleged breach of duo
ty to defend or .ettle, where insured had
not paid all or part of judgment for eX-
cess, and thus himself had no .tandlng
to sue.
Judgment affirmed as to face amount
of policy and reversed as to excess.
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1. Insurnnce 4=>514.2, 514.3
Under Texas law, Insurer must ex-
ercise ordinary care to protect insured
to amount of polley limits, and if it
breaches that duty, Insured has cause of
action against Insurer for total amount
of claimant's judgment against him, In.
cluding amount In excess or policy lim-
It.
f2;.Jnourance 4=>5114.3(1), 812.1(51
1..:1 Under Tex". law, llnblllty policy In-
ures to benefit of Injured persons, as
well as to benefit of insured, and injured
person who obtains tlnal judgment
aKulnst Insured may sue Insurer to en-
force pal'ment of judgment without caus. I
Ing execution to be Issued against In- F
sured. E'J-- h dJd
;
.
_~~~~>':':t ~. ' '< ""':,", :",:,-, '~~. :~~~~::?: ':.~' ":~"~,;,~~"~~'i-',ri::S:,::3;:=:S~~1~
, A" CO~rPAN1A
,ooos aEN,
lellan!,
and J&m.. L.
-ollce..
..
, 01 Appeals
.Ill,
1r.5.
doimont a~alnst
iI'cr for domalle.
,lIcged breach of
de. The United
'or the Northern
Brew.ter, J., 225
I judgment for
!ndant appealed.
Wisdom, Circuit
" Texa. law, in-
standing to sue
<cess over policy
~ed breach of du-
:here Insured had
judgment for ex-
had no standing
w\ to face amount
I" to excess.
l3
insurer must ex-
1 protect In.ured
limits. and if It
ured haa cause of
for tIltal amount
" against him, In-
:,'s of policy 11m.
. 612.1(5)
Ii,blllty policy In-
iured persons, as
<ured, and injured
final judgment
ue Insurer to en-
',cnt wllhout caus-
..ued Dllaln.t In-
SEGIJROS TEPEYAO, S, A" OOMl'ANlA MEXIOANA v, BOSTROM
elle AI 311 ....2d 168 (t~)
broad discretion In stale wllh civil law
background. '
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8, Insurance <:=>147(1)
Mexican law conlrols mennlnll of In-
surance contract execuled In Mexico wllh
Mexican Insurer, for anticipated public
liability coverage for accidents taking
place In Mexico.
4, Insurance ct:>1~2.1(1)
Provision of Mexican law llovernlnll
Insurance must be read Into policy con-
trolled by Mexican law.
G, Insurance e=>~94.3(1)
Provision of Mexican law, consl.lent
wilh civil law llenernlly, spcclfically rec-
ognized thallnjurcd pnrly I. Ihlrd,pnrty
beneficiary of insurance conlract.
169
I
O. IJUurance e=>812(2)
Polley which requires Ihal damages
to Insured must be fixed before payment
by Insurer Is "indemnllY policy'"
Su publlcotJoD "'orlll azu] Phr4lu
for other Julllclol cOMtructloDI aDd
definition..
7, Insurance e=>812(2), 612.1(2)
Under Texas law, "no action" clause,
staUnll Ihat no action should lie agaln.t
In.urer until damages are deter,lI'ined by
final judgment or agreemenl.ljoes not
permit direct nctlon by Ihlrd-party claim-
ant against iusurer before judgment Is
recovered against Insured, but estab-
IIshe. that policy Is lIabillly policy ralher
than Indemnity policy, and penn its ac.
tlon a~aln.t I""urer, for nmount of pol.
Icy or less, as soon as Ihere Is judgment
allalnstlnsured]
8. IJUurance e=>812(2), 8aU(1)
Under Texas law as well as Mexican
law, policy providing that indemnities
payable should be effected once damage
suffered or caused by vehicle has been
proved and adjusted was Iiabilily pol-
Icy, ralher than Indemnity policy, and
plaintiff, who had recovered judgment
against Insured, had standing to sue as
third-party beneficiary for amount of
policy.
9, Acllon e=>17
In delerminlng whether law of for-
um applies where applicable law of for-
eign nation i. not shown, trial judge
ahould have discretion, and upedally
J47 '-IlS-U \'t
o
10. Statutes e=>290
Texas law was properly applied to
determine Ilablllly under Mexican policy,
in Texas federal court case, to exlent
that con lent of Mexican law was appll-
cable lout not proved.
11, Torn C:>2
For purpo.e. or determlnlnlllort lIa-
blllly for personal Injuries, law of place
where Injury occurred usually governs,
12. In.urance <:=>814,3
For purpose. of delermlnlng Insur.
er's lIabllily to insured for negligence In
failing to sellle within policy IImlls,
place of accident Is Irrelevant and does
not delermlne whelher forehm law or
law or forum should control.
IS, Negligence e=>103V,
Torls e=>2
Texas courts usually look to law of
place where wrongful act or neglect took
place.
14. IJUurance <P814.3
Texas law applied to delermlne Mex-
Ican Insurer'a liability for failure 10 set-
tle within policy limits, where claimant's
offer to scltle was made to insured In
Texas, claimant's suit was filed In Texa.
against Texas defendant, Insurer'. ai-
le~ed ml.conduct In fRillng to inltlale
und brlnlC ubout .cWcment and failure
to defend suit look place in Texas, in-
surer was qualified to do business in
Texas, and Texas had Inlereslln prolect-
Ing Its citizens from breach of Insurer's
duty 10 Insured Texan.
18. Insurance <P814.2 I
In.urer'. duty to sellle I'Ul1S only
to In.ured,
10. aarnlshment e=>40, 42
Under Texas law, insured's claim
against Insurer for fallure to sellle is
continllent and unliquidated 'cho.e In ac-
tion as to excess of judgment over policy
limit, and not subject to garnishment.'
17. aamlshment <:=>37, 40 ....
Texas law will not permit garnish-
ment of unliquidated claim or of any
chose In action,' I c
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". . ,. .,
...~:~~!!~~~!~~t!!fri:~!~lt~r~~]!~~~?~t~~J;!~}tlWt;igz~~~f~it~t.~~:~~,,4i~tj
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6: I,
170
3(7 FEDERAL REPORTER, 2d BERIES
18, Credltol'l' Sult <1::>8(4)
Garnishment <1::>40
Under Texas law, action by victim,
who had recovered personal Injury judg.
ment against Insured, against In.urer ior
damages ior !allure to settle within pol.
Icy limits could not be maintained as
creditor's bill or garnishment, since un-
liquidated claim or cho.e In action Is not
lubject to gsrnlahment.
19. Insurance <l::>8U.ll(l)
Claimed privity between Insured and
victim, who had recovered personal In-
Jury judRment against Insured, did not,
under Texas law, give victim standing to
sue Insurer ior damages ior alleged
breach of duty to aettle within policy
limits.
20. Insurance <1::>89..3(2)
In absence of atatutory provisions
or required forum policies, Injured per-
son generally stands In shoes of Insured.
and his rl~ht, 1I~lIln.t In,urcr IIr. no
greater and no less than tho,e of In-
sured.
21. Insuranee """8lum
Under Texas low, Insured's right to
recovery from liability or Indemnity In-
surer for failure to settle Is treated as
right to reimbursement, and Insured may
not recover iram Insurer unless Insured
has first eatlafied Judgment against him-
leli.
22, Insurance """81Um, 81U3
Under Texas law, neither Insured
nor claimant has etanding to sue ior
breach oi Insurer's duty to defend and
lettle until Insured hns paid aome amount
on excess Judgment; Insurer Is then lia-
ble only to extent of Insure<j;s payments.
23, Insurance """812(3)
Indemnity policy would not meet ex-
press requirements of Texas financlal
responsibility law. Vernon's Ann.Tex.
Clv.St. art. 6701h.
1. O. A. Rto1"l!rI Furnlturo CO. Y. Amorlcan
Jn1lemalt)' Co., TOI.Comm.App.lO'l9. 15
S.W.2~ 1544: ChonCfY .. N... Am.t....
dim Caauolty Co., T..,CI..Ap~.I000. 830
8.\\'.2d 163. error ref. D. r. .,; 32 Tn.
Jur.2~ I (.I8. I 49B. S.. FI~.lIty '"
Cuualtr Co. of New '!or!l ,. RabbI C5
U. ht.urane. e-o~14.ll(I), 814.13
Under Texas law, Injured claimant
had no standing to aue liability Insurer
for excess over policy limits, for Insurer's
alleged breach of duty to defend or set-
tle, where Insured had not paid all or
part of Judgment for excess, and thus
hlm.elf had no standing to aue.
the In.ure"
the Insurel
claimant's
lng the nr
limit. II<
alleged I)',
tied for t
Jured clai
against It,
Insured i,
on the Je
Insurer.
Is ",heth
standing
the amou
the pollc:
lowed th,
the iull :
lng that t
ed JudgIT
$270,000.
the juds:
policy 1117
\
William M. Brown, Brown, Herman,
Scott &. Young, Fort Worth, Tex., for
appellant, Cantey, Hanger, Gooch, Cra-
ven. &. Scarborough, Fort Worth, Tex"
of counsel.
John Alan Appleman, Urbana, III., Al-
bert H. Manus, Jr" Freeport, III., Joe
Spurlock, Fort Worth, Tex., Stanley S.
Crook., Dallas, Tex'., Jean Appleman, Ur-
bana, 111., for appellees,
Jerome Sneed, Jr., Austin, Tex" for
Amerlcon Mut. Ins. Alliance, amicus cu-
rine.
Keith F. Kelly, Kelly, Morris, Walker
&. Maynard, Fort Worth, Tex" ior the
National As.oclatlon oi Independent In-
surers, amicus curiae.
Julietta Jarvis, Chlilon Br)'an, Hous-
ton, Tex" for Aseguradora Reforma, S.
A., Cia. General De Seguros, and others,
amici curiae, Bryan &. Patton, Houston,
Tex" of counsel.
Before BROWN and WISDOM, Cir-
cuit Judges, and ESTES, District Judge.
t
~
In No
Bostrom
and J er:
pleasu re
car. A:
Jernlga"
once wit
panla ~
(defend;
ration I'
The pol:
tomobllc
risks wi
The ma,
dolla.. f
thousan'
one 8cci
Mexican
with n I
Jernlgnr
aaleep Ir
talned 0
Bon caul
',' perman'
~. 227.
....,.
WISDOM, Circuit Judge:
[I] This ca~e presents a new twist
In the Texas Stowers doctrine, When an
Injured penon claims damages against an
insured tort.ieunr ior an Injury covered
under a liability policy, the Texas Stow-
ers doctrine requires the Insurer to ex-
ercise ordinary care to protect the In-
sured to the amount oi the policy lim-
Its.' If the Insu,rer breaches that duty,
Clr, 1n~n. 207 F ,2,1 413, R"o Ilnher' E.
noetun. Llllh11lt,. Inllunlllco nnl' UUllunMI.
hlllty tor Settlement. OT IInr..L.Re,'. 1130
(19~1: I\rODlt'f, The Prfunt StntuI of
th. Sto.'eu Doctrine ID TIIG., 1 80.
Tu:.W. 10i (1OM) I D)"o, In,ufo,', LI.-
~
. hlllt,.
IJmlt..
"
I.:,
BEOUROS TEPEYAO, S. A" OOMPANIA MEXIOANA v, BOSTROM 171
Clle II 367 }o',2d lUS (I~)
, MUS
njured claimant
liability Insurer
its, for Insurer'a
o defend or aet-
not paid all or
'x cess, and thus
~n sue.
the Insured has 0 COUse of action against
the Insurer for the total amount of the
claimant's Judgment against him, Includ.
Ing the amount In excess of the policy
limit. Here, the policy was for $5,000;
allegedly, the claim might have been set.
tied for that amount; Instead, the In-
Jured claimant recovered a Judgment
against the Insured for $270,000. The
Insured Is Insolvent, has paid nothing
on the judgment, and did not sue the
Insurer. The question this case presents
Is whether the Injured claimant has
atandlng to sue the liability insurer for
the amount of the Judgment In excess of
the policy limit. The dlstrfct court al-
lowed the claimant to sue the Insurer for
the full $270,000 and, aCter a jury find-
Ing that the Insurer WaR negligent. grant-
ed judgment In favur of the pllllntlff for
$270,000. 225 F,Supp. 222. We reverse
the judgment as to the excess over the
policy limit.
3rown, Herman,
Vorth, Tex" for
{er, Gooch, Cra-
Jrt Worth, Tex"
Urbana, III., AI-
rceport, III" Joe
Tex.. Stanley S.
Il Appleman, Ur-
lustin, Tex., for
;:1nce, amicus cu-
, Morris, Walker
:ll. Tex., for the
Independent In-
I.
In November 1958 three young men,
Bostrom (plaintiff - appellee), Sullivan,
and Jernigan (intervenor) went on a
pleasure trip to Mexico In Jernigan's
car. After they crossed Into Mexico,
Jernigan took out public liability Insur-
ance with Seguros Tepeyac. S,A., Com.
panla Mexicana de Seguros Generales
(defendant-nppellnnt), a Mexican corpo-
ration licensed to do business in Texas,
The policy was a three.day "Speclnl Au-
tomobile Policy for Tourists" covering
risks within the Republic of Mexico only.
The maximum coverage was five thousand
dollars for each person Injured, with ten
thousand dollars the total eoverage for
one accident. The aecond day of their
Mexican holiday. Jernlgnn's ear eolllded
with a bus. Sullivan was driving with
Jernigan's permission, and Bostrom was
asleep In the back aeat. Bostrom "sus-
tained about as serious Injuries as a per-
son eould endure and live": he fs now a
pennanent quadriplegic. 225 F.Supp. at
227.
on Bryan, Hous-
lora Reforma, S.
.U1'05, and others,
Patton, Houston,
WISDOM, Cir-
;, District Judge,
Jffe:
,'nts a new twist
.ctrlne. When an
:meges against an
nn Injury covered
ti:c Texas Stow-
II\.' inl'urer to ex.
) prou,ct the In.
f the policy 11m-
~nrhes that duty,
Reo Robe't E.
11"0 l'Intl RUflonll.
IInrv.L.R...1130
'rrlll'nt Slahll of
III TC'IOI, 1 So.
r... lnluror', lJ4.
bUhy tor JutJ,lmcntlt Rxceclllnlt Polle)'
LlmltJ, sa Tn.L.Rov. 233 (1000): Noto,
The Insured notified the Insurer of the
accident on the day It occurred. The fn-
surer made an Investigation and, within
eight days, settled with the bus company
for damages to the bus and with Jernigan
for damages to his automobile. At that
time the company had no knowledge thst
Bostrom Intended to assert a claim
agalllolt Jernigan, and no reason to nego-
tiate with Bostrom If, as the company
contend., the polley doe. not cover the
claim of a guest.passenger. Seguros
Tepeyac state. that no one was ever
aware that Bostrom had asserted a claim
until June of 1960, nineteen month. after
the accident, when Bostrom'. attorney In-
formed Jernigan that Bostrom was about
to file suit agaln.t Jernigan. August 26,
1959, Bostrom's f.ther wrote the Com-
pnny for. photo-copy of the "insurance
file" relating to Jernigan. He wrote
again September 20 and December 1
asking for a eopy of the In.urance pol-
ley. The Company replied to these Jet-
ters, wanting to know hi. Interest In
the matter, and sent copies of documents
from It. file but did not send 'a copy of
the policy until Bostrom's attorney wrote
June 30, 1960, askinII' for a copy.
The copy of the polley forwarded to
Bostrom's attorney Is the one-page polley
.ued on In this ease. The dl.trlct eourt
found that there Was no evidence to aub-
.tantlnte the Insurer's contention that the
policy delivered to Jernigan had an addi-
tional pnge excluding liability for In-
juries to third peraons riding as guest
passengers. ,
Short'y before flllng ault on July 12,
1960, Bostrom made an oral offer to Sulll-.
van and Jernigan to settle his elalm'
agaln.t them for $5.000. They r~jected
It for lack of fund., Both the fnsured
and the e!almant refrained from men-
tioning the offer of settlement to the In-
aurer, and the Company asserts that It
had no knowledge of the exlatence of the
offer until after Bostrom reeovered judll'-
ment for 64 tlmea the amount of the of-,
fered settlement.
" , . .,' .... 'l~":.~. .,
41 Tcx.r~ncv: M~ 11003);, Note, '18'.\'.' ',:
B.W.Wou,. 1~7 (1004).
'.
lMm. ~~;:'-.i=l;.o/' "''''m.'1i;;;:~~~FJ;t~''''--'W'''"'~ ,"'-'""=~,=<~ -'-~ --,
"" _~.d~_.'>""'''''''''$'''''', 'do""""''''.'_W''''"~ ,"_~,-..-,,_,,~~JI!i""""'~~ '\il\~'i""'~ ".rp"~" ,_<,,,,""_"'=",,-cr~,~,,,,_d__,'
!!.1~~[f~~~~~:;;~'":~~~:c;~1~'j~j~':':~~~;~~~~:t~~~~~f~~~,,:~;i:t=~;=-~i:~"o~' T~;::~ic\1T~~~':~r~;~~~'._ "',~:
II
172
sn FEDERAL REPORTER, 2d SERIES
August 2, 1960, Jernlgnn advised Se.
guros Tepeyac of Bostrom's suit and
called upon It to defend the action. A
number of letters passed between Jernl.
gan and Seguros Tepeyac before the suit
wae tried, the Insurer consistently deny.
Ing liability to a guest passenger and reo
fusing to defend the caee. . February 12,
1962, the plaintiff recovered a judgment
for $270,000 against Jernigan and Sulll.
van after a trial, without a jury, before
Judge Sarah T. Hughes In the Dallas
Division of the Northern District of
Texas.
Execution on the judgment was reo
turned tlu!la bona. Bostrom then brought
this action against Seguros Tepeyac.
On submission of special Issues, the jury
found that the insurer wus negligent "In
not Initiating and attempting to bring
about a settlement" of Bostrom'a claim
"within the $5,000 limit of the public
liability pallcy In question.... February
12, 1962, the district court granted judg.
ment for $270,000, and overruled the de-
fendant's motions for judgment and for
judgment n. o. v.
June 24, 1964, while this case was on
appeal, Jernigan assigned to Bostrom his
claim against Seguros Tepeyac. He then
filed with this Court a petition asking
that he be permlttcd to Intervene. We
allowed the petition preliminarily. The
Intervention asks that the Insurer dls.
charge Bostrom's judgment against Jer.
nlgan. Bostrom, however, does not rely
on the assignment. In the district court
he aued In his own right as Ii third party
beneficiary of the Insurance contract. On
appeal, his attarney now contends that
Bostrom, as a judgment creditor, is cn.
tilled to reach funds of the insurer to the
amount of his judgment. ..
II.
In a Stowers aituatlon the "petlllon
asserts, In effect, two causes of action,
onp. for the aums contracted to be paid
and one (jtl tort) for the excess of the
2. 10 Stower. the bc,lIcence conll,tet.! of
reJtctlDI DD offer to .~ttle within tho
pollcr limit.. In tho ID.t:lDt cuc, the
dl.trlet court relied on the Uyl.... thot
judgment nbove those sums," Illghway
In.. Undel'wrlter. v. Lufkin-Beaumont
Motor Coach e., Inc" Tex,Clv,App,1948,
215 S.W,2d 904. Here, for example,
Bostrom has a $5,000 suit, aoundlng In
contract as a third party beneficiary, and
a $265,000 au It, aounding In tort, based
on the defendant's negligence. We ahall
discuss, firat, the plaintlff'a atllnding to
aue In contract.
llArt.
grsnt,
direct
who ~
ary 0
ment
"In c
right
be tr:
unles
estab
tion
tam I'
whor
direc
proc.
In the
the rei
seems
that t~.
is IImi'
[6,7
the on'
panya
lions [,
lndem:
be elf'
..:aused
and ad
)Ie rib.,
clause
as soar
hide"
The a:
la estr
judgm
au red.
riot "'
causee
If the
age "t,
paymo
have;
pare l
Culbel"
727; ;
policy'
,.thlrd [-
Insure:'
, Icy In
'~:'No A
as lIa~
Such
[2J This Court held in Ohio Casualty
Ins. Co. v. Beckwith, 6 Clr. 1934,74 F.2d
76, that a liability Insurance policy la
a contract for the benefit of a third
person, entitling an Injured claimant to
sue the insurer to enforce payment of
his judgment. Slmllarly, in Seaton v.
Pickens, 1935, 126 Tex. 271, 87 S.W.2d
709, 711, 106 A.L.R. 612, the Texas Suo
preme Court declared that "[tJhe policy
. . . Inures to the benefit of such
Injured persons, as well a. to the benefit
of the assured"; accordingly, "the in.
jured person, after obtaining final judg.
ment against the insured, may sue the In.
surer to enforce payment of the judgment
without causing execullon to be Issued
against the in.ured." This strong dictum
In Seaton v. Pickens is supported by other
Texa. cases. See Womack v, Allstate
Ins. Co" 1956, 156 Tex. 467, 296 S.W.2d
233; Commercial Standard Ins. Co. v.
Ebner, 1950, 149 Tex, 28, 228 S.W.2d
507.
[3-5J Here the contract was executed
In Mexico; the insurer was a Mexican
company; the parties anticipated public
lIablllty coverage for accidents taking
pluce ill Mexico. In these circumstances,
the triul judge properly found that Mexi.
can luw controls the meaning of the con.
tract. Article 147 of the Mexican law
governing insurance therefore must be
read Into the policy. This article, consls.
tent with the clvlllaw generally, speclfi.
cally recognizes that the Injured party Is
8 third party beneficiary of the Insurance
contract.
~
.
the clut)' to IcttlO Imt,lIu tbe dut)" to
nCloUnte.1t Chnnce1 v. Xcw Amster.
~.m CM, Co" Tex.Clv.App,lOOO, 336 S.\\".
2d 'j(}3, 7G-1, error rd. n. r. e.
l
:'", . .'~ ~I." I
."' . .J' ~;:;~":".:'"~i~i~i;;'~t~~$,~~'~':'~'~:":: q ~~~:""~". .,~i\l;~~~
, ~ .."..->;: 0;:-./...",........,"'. '" I?;:.. ;;;g' ~~
SEOUROS TEPEYAO, S. A" OOMPANIA MEXIOANA v. BOSTROM 173
CIt.1lI3tl.'.2dll08(IO~)
lihway
lumont
p.1948,
cample,
Ifni In
ry. and
, baled
'e Ihlll
Ifni to
"Art. 147. Liability Insurance
iranls the right to the Indemnity
dlreclly to the dama~ed third person,
who Ihall be conlldel'ed al beneRcl.
ary at the Inlurance tr~m the mo.
ment at lhe lOIS,
"In case at death at the laller, his
rliht to the in.surance amount Ihall
be transmitted by way at luccesslon,
unless the law or lhe contract which
establish tor the assured the obllga.
tlon to indemnity, apeclRes the
tamlly members at the deceased to
whom the Indemnity must be paid
dlreclly without the need at estate
proceedings," (Empho.ls aupplled.)
In the second paragraph at A rlicle 147,
the reterence to "the Insurance amount"
seems to indicate, as well as It should,
that the quasi.contract with the claimant
Is limited to the policy limit.
[6,7J The only algnitlcant clause In
ilte one.page policy provides: "The Com.
pany airees that within the terms, excep.
tlons and Genernl Conditions hereot, the
Indemnities payable to the Insured shall
be effected once the damaoe suffered or
caused by the vehicle has becn proved
and adjusted." Although this clause de.
acribes the payment as "indemnllies", the
clause states that the Insurer must pay
as aoon as the "damage causcd bv the ve.
hicle" has been proved and adjusted,
The amount at damage to third persons
Is established at the very latest when a
Judgment Is rendered aialnst the In.
aured. Satlatactlon at the judgment Is
not necessary to establish the damages
caused by the vehicle to third peraons.
IC the policy had provided that the dam.
age "to the in.sured" must be tlxed betore
payment by the Insurer, the policy would
have been an Indemnity policy. Com.
pare Universal Automobl!e Ins. Co. v.
Culberson, 1935, 126 Tex. 282, 86 S.W.2d
727 j Seaton v. Pickens. Instead, the
policy provides that the "damage to the
third person" mU8t be tlxed betore the
insurer la liable. The dause In the pol.
Icy In this case /s aimllar to the typical
"No Action" clauses at policies construed
aa liability policies by the Texas coum.
Such clauses usually atate, "No action
asualty
14 F.2d
11Iey fa
I third
lant to
lent at
lton v,
S.W.2d
cas Suo
I policy
It auch
beneRt
lhe In.
I judi'
the In.
19ment
issued
dictum
yother
~lIstate
S.W.2d
Co. v.
S.W.2d
cecuted
lexican
public
taking
itanCe!,
I Mexi.
he con.
an law
lUSt be
consls.
apecltl.
'arty la
:urance
:7 10
ater.
S.1\'.
~
i
ahall lie agalnat the Company until the
amount at the damages tor Which the
assured ia liable by reason at any loss
covered by this policy Is deteMllincd
either by a Rnal judgment against the
Assured, or bV agreement between the
Assured and the plaintiff with the writ.
ten consent at the Company." These
clautes do not permit a direct action b)
a third party claimant against the In.
eurer before judiment II recovered
against the Insured, but they establish
that the policies are liability pollcle'
rather than Indemnity policies, and pel
mlt an action agalnat the Insurer, tor
the amount at the policy or less, as 800r
n. thore I. judKment nKllln.t the In.ured
See Lander v. Jordan, Tex.Clv.App,1933
59 S.W.2d 959; American Indemnity Co
v, Martin, Tex.Com,App.1935, 126 Tex.
73, 84 S.W.2d 697; Cuellar v, Moore,
Tex,Clv.App.1932, 55 S,W.2d 244; ct.
Gult Ins. Co. v. Vala, Tex.Clv.App.1962,
361 S.W.2d 904, 908; Langdeau v. Pill.
man, Tex.Civ.App.19GO. 337 S.W.2d 343.
Courts at other states have held that
similar policies are liability policies rath.
er than Indemnity policies, Rogers v.
Youngs, 1931, 256 Mich. 213, 239 N.W.
511 j Capelle v. United Statel Fidelity &
Guaranty Co" 1922, 80 N.H, 481. 120 A.
556; Trandum v. Trnndum, 1932, 187
Minn. 327, 245 N.W. 380.
/fsi The ditl'erence between the poll.
~nvolved in those cases and the pol.
Icy In thla case emphasizes that the Se.
guros Tepeyae policy Is a liability pol.
icy. The usual liability policy provides
that the damage must be tlxed "by a judg. t
ment". The Tepeyac polley merely says
that the dnma~e must be "provee( or ad.
Justed". "Adjustment" Implies bn ex.
trajudIclal means at establishing the dam.
age; damage may be "proved" Judicially
or extrajUdicially by Intonnal proot at
loss, '
,.
We hold theretore that the polley was
a liability polley and that under Texas
law as well as Mexican law the plalntltl'. ,
had atandlnS'. as the third party benetl:
clary to the contraet,', to aue tor the'
amountoflhe policy. ,:. .:.. "
, '
, -,
t
X. Spttlempnt,
Defendant has offel'ed $20,000 in full settlement of
all claims. Plaintiff has refused to reduce his demand below
$50,000.
Respectfully submitted,
McNEES, WALLACE & NURICK
(
BY ,
17108-1166
Attorneys for Defendant
April 23, 1998
- 3 -
t
r
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on this date a true
and correct copy of the foregoing document was served by first
Of Counsel for--Defendant
class mail, postage prepaid, upon the following:
David L. Lutz, Esquire
ANGINa & ROVNER, P,C,
4503 North Front Street
Harrisburg, PA 17110
April 23, 1998
, 4 -
11/07/~6 IZ:~7
U~7ZUJ566Z
THE ROY AGner
Ii!I DOl/DOl
TBX ROY A~~CY, INC,
701 E. Vlano Parkway
Suite 115
Plallo, TX 75074-6751
(972) 423-1010
(972) 423-5662 Fax.
....~~tMILB r.~ BIrR~
TO: ANGINa ~ ROVNBR, P,C,
ATTN: DAVID L. Ltn'Z
FAX NUMBER: 1-717-238-5610
TOTAL NUMBER OF PAGES (Including Cover): 1
DATE: November 7, 1996
FROM: C.J, ROY, CIC
SUBJEc:r: OUR INSURED: CLARKLIFT OF FORT WORTH, mc.
YOUR CLIENT: TOM WILSON
ACCIDENT OF: 5-3-95
IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (972) 423-1010,
COMMENTS: GOOD AFTERNOON HIt. LUTZ I
THIS FAX IS IN RESPONSE TO YOUR LETTER OF Oc:rOBER 9, 1996,
CLl\RXLIFT DID ELEc:r TO WAIVE COVERAGE FOR PERSONAL INJURY PROTECTION,
MEDICAL PAYMENTS AND UNINSURED/UNDERINSURED MOTORIST COVERAGE ON THEIR
BUSINllSS Al11'OMOBILE POLICY DURING TIlE TIME OF TIlE ABOVE REFE1UiNCED
ACCIDENT FOR THE COMMERCIAL VEHICLES mSURED THERE UNDER, THESE
COVERAGE'S J\RE NOT MANDATORY IN TllXAS.
I TROST THIS ANSWERS YOUR QUESTION AND WILL AI.LOW YOU TO PURSUE
PAYMENT OF YOUR CLIENT'S MEDICAL BI~ FROM THE PARTY nlAT WAS AT
FAULT IN THIS MATl'ER.
C.J. ROY, V.P., CIC
TIME SENT: 12:43 PM CST
J
applied New Jersey law, which precluded stacking and limited the recovery 10 SI5,OOO, finding
Ihat New Jersey had a policy interest in the isslle superior to Ihat of Pennsylvania.
Both Crawford and Capll/o involved circumstances where (JI/~I' (JI/C il/sl/rl'r wus involved
in the euse. Thus, there wus no need to balunee the competing interest of Pennsylvuniu policy
with the public policies of other states, because Pennsylvuniu hud no policy interest in either
case. Further, neither euse involved a subrogution claim.
The seminal case concerning conflict of luws analysis is Griffith 1'. United Airlil/I's, 416
.
I
,
Pa. 1,203 A.2d 796 (1964). See A~l'ers 1'. COII/II/I'rcia/ UI/iol/ Assl/r. Cas., 506 Pu. 492, 485 A.2d
<
!
I
i
'1
1113 (1984); Byard F. Brogal/. II/C. I'. WCAB. (Morrissey), 161 Pa. Cmwllh. 453, 637 A.2d
689 (1994); AI/toll/ohi/e Ul/dl'nI'ritl'rs, II/C. I'. Eric II/s. Grol/p, 30 Pa. D. & C.3d 152 (C.P. Eric
1983). Under Griffith and the other euses ciled above, a Pennsylvania court must apply the law
of the jurisdiction which has the most significant relationship with the parties and the occurrence.
Among the facts to be considcred ure the domiciles of the purties,2 the location of the occurrence,
and the location which is the cenler of the parties' relationship. AI/toll/ohi/I' Undl'nvritl'rs at 155
(citing Griffith). The state which hus the most interest in the problem, including government
interests, and which is most intimately concemed wilh the outcome, is the forum whose law
should apply. Byard F. Brogal/ at 459-60, 637 A.2d ut 692. Further, "[t]he Griffith test is not
one of merely 'counting contacts.' A decision on a choice of law must ulso be made with
reference to the policies underlying the differences in the law." Ail/Oil/obi/I' UI/dl'nvritl'rs at 155.
2 Notably, 40 P.S. * 1009.IIO(c)(2), a section of the No-Faull Luw which provided that
in a conflict of laws, the law of the victim's domicile would upply, hus been repealed and has not
been replaced by a comparable provision in the current Finaneiul Responsibility Law.
-4-
mude in their respective states. See /lolI/e II/s. C(J. ut 665. In weighing competing interests of
two states on subrogation issues, however, Pennsylvunia courts huve given preference to the
policies of Pennsylvunia luw over the competing policies of other states. Sec. e.g., A~l'I'rs at 498-
99,485 A.2d ut1116-17 (applying Pennsylvuniu ruther than Illinois law on subrogation issue);
Byard F. Brogi/I/ ut 459-60, 637 A.2d at 691-92 (applying Pennsylvania rather than West
Virginia luw on subrogution issue); Ail/oil/obi/I' UI/derwritl'rs at 155-56 (applying Pennsylvania
rather than New York law on subrogution issue): In fact, the preference given to Pennsylvaniu
policy concerns is general and not limited to subrogution issues. Cf /lOll/I' II/s. Co. at 665-66
(predicting that, allhough fucts of case were such that hypothetieully a court could choose to
apply the law of either state, "most Pennsylvunia stute courts would eonelude thut Pennsylvania
hus the more relevant und significant relutionships, contacts und interests, and therefore,
Pennsylvaniu substuntive luw should control").
Moreover, where the interests of a Pennsylvuniu insurer arc involved, the Pennbylvania
Supreme Court, in unulyzing a conflict oflaws under Griffith, hus stated: "In addition we view
4 Davish v. Gidley, 4 17 Pu. Super. 145, 611 A.2d 1307 (1992), in which the Superior
Court applied New Jersey luw ruther thun Pennsylvunia law in a subrogution case, is
distinguishuble. In Davish, the plaintiff could have chosen to receive workers' compensution
benefits in either stute, und the court found that by choosing to collect the greater benefits
available in New Jersey, he had made his own choice ofluw und was therefore precluded from
urguing thut Pennsylvuniu law ought to upply to deny subrogution rights to the insurer.
Moreover, it is notable thut Dlll'ish, like the cuses cited by Pluintifrs counsel in the instant case,
did not involve a subrogution cluim between two insurers. Rather, the plaintiff, after collecting
workers' compensation benefits in New Jersey, filed a tort uction uguinst a third-purty tort feasor
but resisted the workers' compensation insurer's cluim of subrogation rights aguinst his potential
recovery in the tort action. Thus, like the cuses cited by Plaintiffs counsel in the instant case,
DCl\'ish did not involve any Pennsylvaniu public policy interest competing with that of another
stute.
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CERTIFICATE OF SERVICE
The undersigned hereby certifies that on this dute a true and correct copy of the foregoing
pleading was served personully upon Duvid L. Lutz, Esquire, by hunding the copy to him at the
Pre-Trial Conference in the above action.
/
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Debra P. Fourlas
., ..
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Of Counsel for Defendant
Dated: April~, 1998
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GERALD W. HOGAN and
CHARLENE HOGAN,
Plaintiffs
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION. LAW
WATKINS MOTOR LINES,
INC., JACK JORDAN and
KENNETH ALLEN ROW,
Defendants
94-5098 CIVIL TERMS
IN RE: DEFENDANTS' MOTION FOR JUDGMENT N.O.V.
BEFORE HOFFER, P.J.
ORDER OF COURT
AND NOW, January 16,1998, pursuant to the opinion filed this date, and
after careful consideration of the parties' briefs, Defendants' Motion for Judgment
N.O.V. Is denied.
By the Court,
Delano M. Lantz, Esquire
McNees, Wallace & Nurick
100 Pine Street
P.O. Box 1166
Harrisburg, PA 17108.1166
For the Plaintiffs
Thomas J. Williams, Esquire
Martson, Deardorff, Williams & Otto
10 East High Street
Carlisle, PA 17013
For the Defendants
GERALD W. HOGAN and
CHARLENE HOGAN,
. Plaintiffs
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION. LAW
WATKINS MOTOR LINES,
INC., JACK JORDAN and
KENNETH ALLEN ROW,
Defendants
94.5098 CIVIL TERMS
IN RE: DEFENDANTS' MOTION FOR JUDGMENT N.O.V.
BEFORE HOFFER, P.J.
OPINION
HOFFER, P.J.:
This case Involves Defendants' Motion for Judgment N.O.V. The facts are
as follows: Plaintiffs and Defendants were Involved in an automobile accident In
Cumberland County on May 2, 1994. Defendants admitted liability and a Jury trial
was held to determine the extent of Defendants' liability. The jury returned a
verdict In favor of the Plaintiffs for $280,000. From this amount, $35,000 was
awarded to the Plaintiffs for past medical expenses.
. Defendants have filed a Motion for Judgment N.O.V. claiming that Plaintiffs
are precluded from past medical expenses by Pennsylvania's Motor Vehicle
Responsibility Law, 75 Pa. C.S.A. Section 1722. However, Plaintiff argues that
this section does not apply to hIm because Hogan was not a Pennsylvania
resident, his car was not registered in PennsylvanIa, and Hogan was not eligible
$
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94-5098 CIVIL TERM
to receive benefits under Pennsylvania law. We now deny Defendants' motion,
DISCUSSION
There are several relevant sections under the Pennsylvania Motor Vehicle
Code which apply to this case. 75 Pa. C.S.A. Secllon 1722 states:
In any action for damages against a tortfeasor...a person
who Is eligible to receive benefits under the coverages
set forth In this subchapter, or workers' compensation, or
any program, group contract or other arrangement for
payment of benefits as defined In secllon 1719 shall be
precluded from recovering the amount of benefits paid or
payable under this subchapter, or workers' compensation,
or any program, group contract or other arrangement for
payment of benefits as defined In secllon 1719.
75 Pa. C.S.A. Section 1722 (1996). Benefits set forth In this subchapter are found
In Section 1711: . An Insurer Issuing or delivering liability Insurance policies.
covering any motor vehicle of this type required to be registered under this
title...registered and operated In this Commonwealth, shall Include coverage
providing a medical benefit In the amount of $5000.' 75 Pa. C.S.A. .Sectlon 1711
(1996).
Plaintiff Is a resident of Texas. Texas law Is In direct conflict with
Pe'nnsylvanla law because Texas provides medical benefits of $2500 for personal
InJury protection coverage on a flrst.party basis without regard to fault. The insurer
paying such benefits has no right of subrogation. Beyond this provision there are
no other limitations under Texas law with regard to the recovery of medical
2
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94-5098 CIVIL TERM
benefits. Tex, Ins. Code Ann. Section 5.06.3. Based upon the above statutes and
the following case law, the Court finds that Pennsylvania law does not apply to this
case.
The Pennsylvania Superior Court has found that the benefits In Section 1711
apply only to those cars registered and operated In Pennsylvania. pugh v. Govt.
Employees Ins. Co., 552 A.2d 708 (1989). In Pugh, the plaintiff was Involved In
an auto~oblle accident In Pennsylvania; however, he was a resident of Maryland
and his motor vehicle was registered In Maryland. At the time of the accident,
Maryland law required minimum benefit coverage of $2500 for medical bills while
Section 1711 required minimum medical coverage of $10,000. Plaintiff claimed
that because the accident took place in Pennsylvania, the Pennsylvania Motor
Vehicle Financial Responsibility Law applied and he should receive $10,000.
Pugh, 552 A.2d 708-09. The Superior Court said that Section 1711 has 'two
requirements for determining an Insured's entitlement to recover first party benefits:
(1) the Insured vehicle must be a vehicle of the type required to be registered and
.
(2) the insured vehicle must actually be registered In the Commonwealth.' Pugh,
552 A.2d 709-10. See also Boone v. Stonewall Ins. Co., 382 Pa. Super. 104, 554
A.2d 968 (1989).
In the case at bar, Pennsylvania law Is not applicable. None of the vehicles
Involved In the accident were registered in Pennsylvania, therefore Section 1711
3
THOMAS E. WILSON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
NO. '1"7- .:H/ ~(i -rt;_
BARBARA ANN SCOTT,
Defendant
JURY TRIAL DEMANDED
COMPLAINT
1. Plaintiff Thomas Wilson, is adult individual who resides
in Fort Worth, Tarrant County, Texas.
2. Defendant Barbara Scott is an adult individual who
resides at 438 North West Street, P.O. Box 835, Carlisle,
Cumberland County, Pennsylvania.
3. The facts and occurrences hereinafter related took place
on or about May 3, 1995 at approximately 4: 30 p. m. where North
Bedford Street and North East Street merge, in Carlisle, Cumberland
County, Pennsylvania.
4. At that time and place, Plaintiff Tom Wilson was
operating a 1990 Ford F-150 pick-up truck in a northerly direction
on North East Street.
5. At that same time, Defendant Barbara Scott was operating
a 1988 Cadillac De Ville in a southerly direction on North Bedford
Street.
6. Defendant Scott attempted to make a left turn from North
Bedford Street directly in front of Mr. Wilson's vehicle, causing
a motor vehicle accident.
1
7. The foregoing accident and all of the injurif's and
damages set forth hereinafter sustained by Plaintiff Thomas Wilson
are the direct and proximate result of the negligent, careless,
wanton and reckless manner in which Defendant Barbara Scott
operated her motor vehicle as follows:
a. failure to yield the right-of-way to Mr. Wilson's
vehicle;
b. failure to keep alert and maintain a proper watch
for the presence of other motor vehicles on the
highway;
c. failure to travel at a safe speed;
d. failure to keep a proper watch for traffic on the
highway;
e. failure to keep proper and adequate control over
her vehicle; and
f. driving her vehicle upon the highway in a manner
endangering persons and property and in a reckless
manner with careless disregard to the rights and
safety of others and in violation of the Motor
Vehicle Code of the Commonwealth of Pennsylvania.
8. Plaintiff Thomas Wilson sustained painful and severe
injuries which include but are not limited to pain and associated
disability in the anterolateral and posterolateral aspects of the
left shoulder and anterior insufficiency of the left knee including
internal derangement, pain in the posterolateral hamstring area,
left hip joint, left elbow, fibular collateral ligament and medial
joint.
Plaintiff Thomas Wilson, he was forced to incur liability for
9. By reason of the aforesaid injuries sustained by
medical treatment, medications, and similar miscellaneous expenses
2
in an effort to restore himself to health, and claim is made
therefor.
10. Because of the nature of his injuries, Plaintiff Thomas
Wilson has been advised and, therefore, avers that he may be forced
to incur similar expenses in the future, and claim is made
therefor.
11. As a result of the aforementioned injuries, plaintiff
Thomas Wilson has undergone and in the future may undergo physical
and mental suffering, inconvenience in carrying out his daily
activities, loss of life's pleasures and enjoyment, and claim is
made therefor.
12. As a result of the aforesaid injuries, Plaintiff Thomas
Wilson has been and in the future may be subject to humiliation and
embarrassment, and claim is made therefor.
13. As a result of the aforementioned injuries, Plaintiff
Thomas Wilson has sustained work loss, loss of opportunity and a
permanent diminution of his earning power and capacity, and claim
is made therefor.
14. As a result of the aforesaid injuries, Plaintiff Thomas
Wilson has sustained uncompensated work loss, and claim is made
therefor.
15. Plaintiff Thomas Wilson continues to be plagued by
persistent pain and limitation and, therefore, avers that his
injuries may be of a permanent nature, causing residual problems
for the remainder of his lifetime, and claim is made therefor.
!,
3
WHEREFORE, Plaintiff Thomas Wilson demands judgment against
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Defendant Barbara Scot t in an amount in excess of Twenty- fi ve
Thousand Dollars ($25,000.00) exclusive of interest and costs and
"
in excess of any jurisdictional amount requiring compulsory
arbitration.
ANGINO & ROVNER, P.C.
Date: /-/~-q1
j:t~~
I.D. #35956
4503 N. Front Street
Harrisburg, PA 17110
(717) 238-6791
Counsel for Plaintiffs
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DECLARATION
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I, Thomas E, Wilson, Plaintiff, have read the foregoing
COMPLAINT and do hereby declare and affirm that the facts set forth
in the foregoing are true and correct to the best of my knowledge,
,
information and belief,
I understand that this Verification is
made subject to the penalties of 28 U,S,C. 51746, relating to
unsworn falsification to authorities.
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WITNESS:
Date:
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THOMAS E. WILSON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
NO. q '7 -0151 l\'VI. \
BARBARA ANN SCOTT,
Defendant
JURY TRIAL DEMANDED
ACCEPTANCE OF SERVICE
,
I, Harvey Freedenberg, Esquire, am authorized and do hereby
accept service of the enclosed Complaint on behalf of the
Defendant, Barbara Ann Scott.
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Date: 'III jet-;
l05290/MTG
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VERIFICATION
Subject to the penalties of 18 Pa. C.S.A. ~4904, relating to
unsworn falsification to authorities, I hereby certify that I am
the Defendant named in the foregoing Answer to Complaint. I
further certify that the admissions and denials set forth in the
foregoing Answer are true and correct to the best of my
information and belief.
. l (
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a a Ann Scott ..-
Dated:
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PRAECIPE FOR UST~C CASE FOR TRJ.-\L
(~lust be rypewrillCn ~nd submitted in duplicate)
TO THE PROTHONOTARY. OF CL'~IBERLA."'D COI':"'ITY
P!Ule ~t ~e (ollowlnl c:ue:
I.C~e~ one)
(X) for ll:RY 1,111 at I!le ne~l :e:m oj ::vU cour:.
( ) (or uUl WIthOut S jury.
C.-\PTlON OF CASE
(enU:e ~plion must ~e ll2led In ru)l)
(check one)
( ) .wumplll
Thanas E. Wilson
( Tmpeu
( X) T...peu (Mow Vehic!e)
( )
(olher)
(l'IIUltiIt')
.,.
The trial list will be called on
Aoril 21. 1998 and
Trials cOllllllence on May 18, 1998
Pretrials will be held on April 29, 1998
(Briefs are due 5 days before pre-
trials. )
(The party listing this case for trial
shall provide forthwith a copy of the
p'raecipe to all counsel, p~suan: to
Iocal Rule 214-1.)
Barbara Ann Scott
(Defendant)
VI.
~o. 97-251
CivU
19_
Indicate Ihe attorney ..ho ..ill tl)' .:ase for the psrty ..ho 111el this pmclpe:
David L. Lutz, Esquire
indicate uial counsel (or otber plrlles if known: Harvey Freedenberq, Esquire
This ~ iJ rndy rorlri:l1.
~
SIIr.ed: )-'.) ~j
P'lnt Same: David L. Lutz, Esquire
Dill: 3-12-98
Al:crnf~' rOf:
Plaintiff
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THOMAS E. WILSON,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
BARBARA ANN SCOTT,
Defendant
NO. 97-251 Civil
JURY TRIAL DEMANDED
PRAECIPE
To the Prothonotary:
Please mark the above-captioned action settled, satisfied, and
discontinued.
ANGINO & ROVNER, P.C.
Date: c; -Iy....qy
D~~~"
1.0. #35956
4503 N. Front Street
Harrisburg, PA 17110
(717) 238-6791
Counsel for Plaintiff
cc Harvey Freedenberg, Esquire
l05291/MTG