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HomeMy WebLinkAbout00-05506 Plaintiffs : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 0(::)- S'S'Ot. ClU~l~€.R..fV) BRUCE J. BISHOFF and BETTY J BISHOFF, v. : CIVIL ACTION LAW PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY : ACTION FOR DECLARATORY JUDGMENT ASSOCIATION, Defendants : JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint for Declaratory Judgment is served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 (800)-990-9108 ':" . --:~ -':: "'J:","'l':i~,~j';:::d{Ar::~j~:Zt~':;:~i:~;;i,':r~~:~~;<.~;.';~~:,; :;.io=;-,::+:i5:"~~;_:-, Leo; ,~""~' ",- -, ,- "-, c: x<::~_.~t~_~; ~_,~"'-)_(C~ ;:-"~-w,~,,;~~;-- _, 0 " H ,-- , '<- ',- -~" -, ~ ~---.' ., NOTICIA Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notificacion y por cualquier quaja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE P AGAR TAL SERVICIO, V AYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUY A DIRECCION SE ENCUENTRA ESCRlT A ABAJO PARA A VERlGUAR DONDE SE PUEDE CONSEGUlR ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, P A 17013 (717) 249-3166 (800)-990-9108 .> . '-',", -"-~"-"<"" ".,.,., J~ >' ",- 'C', '-'-','-'''\ ,._-.,_.,; -'~-" -,' "i.' "_~" Plaintiffs : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA ; NO. (I-Q- 550C ~ t.u- BRUCE 1. BISHOFF and BETTY J BISHOFF, v. : CIVIL ACTION LAW PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY : ACTION FOR DECLARATORY JUDGMENT ASSOCIATION, Defendants : JURY TRIAL DEMANDED COMPLAINT FOR DECLARATORY JUDGMENT 1. Plaintiffs are BRUCE J. BISHOFF and BETTY J. BISHOFF, who are adult individuals, husband and wife, and who are residents of Cumberland County, Pennsylvania. 2. Defendant PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION (hereinafter PPCIGA) is an unincorporated association organized, existing, and created under the laws of the CornmonwealthofPennsylvania, and specifically existing pursuant to the provisions of 40 PS Section 991.180 1 et seq., with offices located at One Penn Center Suburban Station, Suite 1620, 1617 JFK Boulevard, Philadelphia, Pennsylvania 19103. 3. This is an action for Declaratory Judgment pursuant to PA C.S.A. Section 7513 et seq., for the purpose of determining a question of actual controversy between the parties as hereinafter more fully appears. 3 ~n, > - . _,' o^~, '0- ,"e,'",,',_" ;'"," " ~ -~ , "','-,.?' __r___ "f-',- 4. All parties with an interest in this matter have been joined as parties in this Complaint. 5. On November 23, 1994, Plaintiffs filed a medical malpractice action against Physicians Unlimited, P.C. t/d/b/a Apple-A-Day and Hugh T. Knight, M.D., in the Court of Common Pleas of Cumberland County, Pennsylvania, at Number 94-6662 Civil Term. 6. The Defendants were insured by the PIC Insurance Group, Inc. (hereinafter PIC), which undertook to defend their interests in that litigation. 7. On January 21, 1998, the Commonwealth Court issued an Order of Liquidation against PIC finding that company insolvent and staying all proceedings pending in any Court of the Commonwealth in which PIC was obligated to defend a party for a period of ninety (90) days. 8. Under the application provisions of Pennsylvania law, PPCIGA assumed the handling of all covered claims on behalf of PIC pursuant to the provisions of 40 PS Section 991.1801 et seq.. 9. At the conclusion of the discovery in the case, the matter was listed for trial by the Plaintiffs for the trial term commencing July 10, 2000. 10. Prior to the commencement of the trial, the parties entered into a settlement of the dispute for the nominal amount of One Hundred Ninety Five Thousand Dollars ($195,000.00). 11. PPCIGA has asserted the right to an offset for the medical expenses that were paid on behalf of the Plaintiff Bruce J. Bishoff in the amount of One Hundred Thirty Eight Thousand Three Hundred Six Dollars ($138,306.00). That offset is asserted under the provisions of 40 PS Section 991.18l7(a). 12. The parties entered into a Full and Final Release of their claims, which Release specifically preserved the right of Plaintiffs to contest the offset claim by PPCIGA. A true copy of that Release is attached hereto as Exhibit "A". 4 ','j;, "-"'-"- -, " ).- ,', -,~, .,c,;,'; :;-,," -'-..--,,^-,.:-,-- -. ..,-,. ,0 __~ ~"~"!"-':- __ :.:"_"c_'_',,L"-,'f-"_'- ""-'-"'-,--" >C;;:,'_"_,-_,;_,- "'-'. -", - , .~_: ,. " 13. Plaintiffs believe that PPCIGA is not entitled to claim the offset which it has asserted in this case for the following reasons: (A) PPCIGA cannot claim a credit for the medical expenses paid by the Central Susquehanna Region School Employees' Health and Welfare Trust, since that entity is not an insurance company, and the payments made by that entity were not insurance payments paid under an insurance policy as contemplated by 40 PS Section 991.1817(a); and (B) The statutory provisions of Section 991.18l7(a) were added to the statute on December 12, 1994, two (2) years after the occurrence of the incidents which gave rise to the cause of action on behalf of Plaintiffs, and application of that credit to the claims presented by the Plaintiffs are in the nature of an ex post facto taking without due process oflaw; and (C) The provisions of the enabling statute, 40 PS Section 991.1801 et seq., extend only to property and casualty insurance companies, which insurers do not include the Central Susquehanna Region Employees' Health and Welfare Trust; and (D) The provisions of Section 991.1817(a) constitute a denial of Plaintiffs constitutional rights to access to the Court; and (E) The provisions of Section 991.18l7(a) constitute a denial of Plaintiffs constitutional rights to equal protection under the laws; and (F) The offset provision of Section 991.18l7(a) is otherwise invalid as may be revealed through continuing investigation and discovery WHEREFORE, Plaintiffs request that: (A) The Court enter a Declaratory Judgment holding the PPCIGA has no right to claim a credit pursuant to the provisions of 40 PS Section 991.181 7 ( a) for the medical expense benefits paid by the Central Susquehanna Region School Employees' Health and Welfare Trust; and (B) The Court enter a Declaratory Judgment that the Defendant PPCIGA is obligated to remit to Plaintiffs the sum of One Hundred Thirty Eight Thousand Three Hundred Six Dollars ($138,306.00), representing the amount of the offset claimed by PPCIGA; and 5 , ".', ,. . --.','--" ,~' .- . ,,~ - - ",' ,,-, - - '- ""'<;>:,1:';_c~I<', ,'.>:",:~-"",.;;>"-:_-",, c_ " - '" -.~ ,'-' . -', ,; - y- - ~. , .. -"'-'~" - - ,- :~>:L-_,'---, ,_ ".'_ DATE: (C) The Court grant such other further relief as may be just and proper. THONY ST !.D. #25497 407 North F nt Street P.O. Box 12027 Harrisburg, P A 17108-2027 (717) 232-0511 A- 7-00 6 " FULL AND FINAL RELEASE FOR AND IN CONSIDERATION of the sum of One Hundred Ninety-Five Thousand Dollars ($195,000.00) to be paid to the undersigned upon receipt of this signed Release; the undersigned does fully release and discharge Hugh T. Knight, M.D. and Physicians Unlimited, P.C., the Pennsylvania Property and Casualty Insurance Guaranty Association and all other persons, associations and corporations whether or not named herein, their heirs, executors, administrators, successors, assigns and insurers, and their respective agents, servants and employees, from any and all causes of action, claims and demand of whatsoever kind on account of all known, and unknown injuries, losses and damages allegedly sustained by the undersigned and, specifically, from any claims, or joinders, for sole liability, contribution, indenmity or otherwise as a result of, arising from, ,or in any way connected with all medical professional health care services rendered by the above Health Care Provider(s), and on account of which legal action was instituted by the undersigned in the Court of Common Pleas of Cumberland County, Docket No. 94-6662. The undersigned do upderstand, and agree, that the acceptance of said sum is in full accord and satisfaction of a disputed claim and that the payment of said sum is not an admission of liability by any party named herein. It is expressly understood and agreed that this Release and settlement is intended to cover and does cover not only all now known injuries, losses, damages, but any further injuries, losses or damages which arise from, or are related to the occurrence set forth in the legal action noted above. It is understood and agreed that the primary insurer for Hugh T. Knight, M.D. and Physicians Unlimited, P.C. was PIC Insurance Group, Inc., which has been declared insolvent by the Commonwealth Court of Pennsylvania, and tha't the Pennsylvania Property and Casualty Insurance Guaranty Association has assumed responsibility for covered claims pursuant to 40 P.S. ~991.1801 et. seq. The amount paid by the Pennsylvania Property and Casualty Insurance Guaranty Association on any covered claim is subject to 40 P.S. ~ 991.1817(a) Non-duplication of recoverv which states: Any person having a claim under an insurance policy shall be required to exhaust first his right under such policy. For purposes of this section, a claim under an insurance policy shall include a claim under any kind of insurance, whether it is a first-party or third-party claim, and shall include, without limitation, accident and. health insurance, worker I s COmpensation, Blue cross and Blue Shield and all other coverage except for policies of an insolvent insurer. Any amount payable on a. covered claim under this Act shall be reduced by the amount of any recovery under other insurance. If it should be finally determined by the Court that the offset provision of 40 P.S. ~ 991.1817 is invalid, the undersigned reserves the right to seek full recovery $138,306.00, which was taken as a set off, exclusively from the Pennsylvania Property and Casualty Insurance Guaranty Association or from the Estate of PIC Insurance Group, Inc. through the Statutory Liquidator of the insolvent PIC Insurance Group, Inc.,. i.e., the Pennsylvania Insurance Oepartment, Bureau of Liquidation Claims. The undersigned hereby agree, on their behalf and on behalf of 2 I, ~, - their heirs, executors, successors' and/or assigns, to ind~mnify and save forever harmless the releasee named in this document from and against any and all claims, demands or actions, known or unknown, made against the Releases by any person or entity on account of, or in any manner related to or arising from the legal action noted above. It is further understood and agreed, that this is the complete release agreement, and that there are no written or oral understandings, or agreements, directly, or indirectly connected with this Release and settlement that are not incorporated herein. This agreement shall be binding upon and inure to the successors, assigns, heirs, executors, administrators, and legal representatives of the respective parties hereto. It is further understood and agreed and made part hereof, that neither the undersigned nor our attorneys or other representatives, will in any way publicize, in any news or communications media, including but not limited to newspapers, magazines, radio or television, the facts or terms and conditions of this settlement. All parties to this agreement expressly agree to decline comment on any aspect of this settlement to any me~er of the news media. This paragraph is intended to become part of the consideration for settlement of this claim. In the event court approval is required for the settlement, compromise or resolution of this claim, this settlement is conditioned upon plaintiff undertaking any and all necessary action to obtain same. 3 -- -., If this settlement is ever determined by any court to' be without effect because some necessary court approval was not obtained, or if the released parties are subjected to further legal action or claim which could not have been instituted or presented had proper court approval been obtained'by plaintiff, then plaintiff will indemnify the released parties for any future loss, cost, or expense including but not limited to reasonable attorney's fees for defending, litigating and settling any such claims or action, and for any judgment resulting from any such action or claim. It is further understood that the undersigned releasing parties will payor otherwise discharge, or reach an agreement to discharge, and will be fully and completely responsible for any and all liens, charges, fees, costs, interest and other sums which may exist against the settlement under common law, statute or otherwise, including but not limited to any liens, subrogation liens or claims by any insurance carrier or governmental agency which may have paid any bills, costs or expenses on behalf of the undersigned, and the undersigned further agrees to defend and indemnify the released parties, the pennsyl vania Property and Casualty Insurance Guaranty Association, and defense counsel for any claims, legal actions or administrative actions brought against any released party, the Pennsylvania Property and Casualty Insurance Guaranty Association and defense counsel for payment or discharge. 4 ~ , . - THE UNDERSIGNED HEREBY' DECLARES that the terms .of this settlement have been completely read; and that they either have discussed the terms of this settlement with legal counsel of their choice, or voluntarily chose not to seek the advice of legal counsel and said terms are fully understood and voluntarily accepted for the purpose of making a full and final compromise adjustment and settlement of any and all claims on account of the injuries and damages above-mentioned, and for the express purpose of precluding forever any further or additional suits arising out of the aforesaid claims. IN WITNESS WHEREOF, and intending to be legally bound, I have hereunto set my hand and seal this 19 day of J V c. <.( ,2000. CAUTION - READ BEFORE SIGNING ~ :).3 G WII~"}\.c.1 ~~,-.c.... 0",. /Vlec.-O...vn.clU""f p~ 1705~ Address J ~()6 -~~-019J.j Social Security Number ,--> +-I- II /) Ii II ~:t (tL/- 'i--. ,...,: (--..:..,.\ I .~ Betty J /," Btshoff r ;' _'7.] :5' (Jj-,-.{~#,~,/ --rit'\{t~/,{)\ /!1.rCt.L"tM(/J lU"7 f/! /7.(J ~-<.- Address / i" - ~_(; 7~1~ / .::; Social Security Number 5 .Y.'" ~ , ~ }" Federal Tax ID Form Due to Section 604(t) of the Federal TilXpayer Relief Act of 1997 the Fund is required to obtain a Federal Tax ill Number for the plaintiff counsel who is to be named on the Fund's settlement check. Please fill in the correct blanks below: Plaintiff counsel to be na~ed on check: A N ?-t+ON '( ;;71; F II No rJ Plaintiff counsel Federal Tax ID #: 1..5 - loSv 79Z21 Or Firm name to be named on check: Firm Federal Tax ID #: If the firm ID is used, then the Fund's settlement check can only be made out to the Firm, while if the plaintiff counsel name is used, then the Fund's settlement check can only be made out to the individual attorney. Please complete this form and return with the executed release by August 31, 1999 . We must have this information to process the invoice for payment. If you have any questions, please do not hesitate to contact Joyce E. Helfrich or Jacqueline Haynes at (215) 560-5160. Thank you for your cooperation. 'fu ,~ ..- " VERIFICATION The undersigned hereby verifies that the facts averred in the foregoing Complaint For Declaratory Judgment are true and correct to the best of his knowledge, information and belief. This Yerification is made subject to the penalties of 18 Pa C.S.A. Section 4904 relating to unsworn falsification to authorities. ~~ DATE, ~,9r;).'1) ;).000 7 !'<, ~ ".' '''''0_<-0,,'._',", C",F-" . - -.' "___~' -..-. .,'-r", ..',"c_ '_ ," ~, _ __,'. ~_ " -e'", r ,'no"~ '",_"_?;:,"~ _.'_ ; ,. _,~ ".. ~ ~'"' .r VERIFICATION The undersigned hereby verifies that the facts averred in the foregoing Complaint for Declaratory Judgment are true and correct to the best of her knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa C.S.A. Section 4904 relating to unsworn falsification to authorities. ~"~ 0... ~ BETTY J. If!HOFF DATE: r~ :19) 2(Jdd 8 'if: of,.?!:..'" \_,',_,_':" lA'~>-' .', ~- -'-",n, '_\~_____'~ _,.'",._ ,._~', "'_"'_~~'" - , '>'i{:<,';-,,;:::-'--,; --,----,,~ - ~ - - , ,d . ~ ~C' C 'n""_ ,', """'''' ~-l'j O~ __, ~~-' AJ Ii- ~ 6' ~ 0- -.--,< 1>0, ~ ~ ll. (j "- ...... 6' ......0 rrtr ~ . ~" -~ - ~-, ~_~,rr"="1,~, '\ 'M- ~ ~ VtC> 8 C1 ~~~-c-- , -- '~-' ',Y.- """"""~<:,m_ [!J --1"- ,._-~- . ",_,jl"lr~q:,,,,:, o C 5:: -0'0:1 rnr-:l Z::v zr; w" ~~ ~o --0 )>c: Z =< --- " ~ ,"-'~'. ~ o o 3>0 ~ G5 I co ::;:l~ f'f1:D : [ij :r:, OrS :::-':!':rl j? o=Q - ,:;;;,.c '" om ~ -I .=:> S (..u -< ~ C>3 Q-u ~ ~_c ~ Jgf" " ~ ~ ~ ~~ 17 ~.ul lilt. .~_ < .' BRUCE 1. BISHOFF and BETTY J BISHOFF, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs : NO. 00-5506 Civil Term v. : CIVIL ACTION LAW PENNSYL VANIA PROPERTY AND CASUALTY INSURANCE GUARANTY : ACTION FOR DECLARATORY JUDGMENT ASSOCIATION, Defendants : JURY TRIAL DEMANDED PRAECIPE TO REINSTATE COMPLAINT TO THE PROTHONOTARY: Mark the Complaint in the above captioned matter reiinstated, and deliver a copy of that Complaint to the Sherifffor service. II !.'.I ! !I 'I II I, I' " ~! 1:1 [: I' [I [I ti I fI--' DATE: _i/rt'tw ,'-~'--_'";. -';">...;.,,,,_h,o<.__ .- '. "'''c.", " ,-.- ~1':-,-'(- _, ~~-f. ~_, ,t ^_. _'"' _A",':""'_':':'" -. "'_. ____,_,--_"__.,__ 0",-- .' ~ " . .. ~ , . ., ~ ,_. ",,,, - ~,~ _b ~,~ . ,~" . - -, '",,";~- ..' ""'~"'- --", ,-" ""'~'2'1i",-,'i- ..,-" f <:) c:: :?"~ ~~1'i Z;-'" (n -- ;:s; ~.:::: J';c', ::::"'-::r'_ _-:.~~!m!~~~ '--, "~' ~ c_~ => ':"") --, i") C'I ~."';,.. ,,<=,- ,','" =.~ ('.' ~',- JlfilIft'D_","",,",'l'1 , "t' ~... SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2000-05506 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND BISHOFF BRUCE J ET AL VS PA PROPERTY AND CASUALTY INS R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of PHILADELPHIA County, Pennsylvania, to serve the within COMPLAINT & NOTICE On December 14th, 2000 , this office was in receipt of the attached return from PHILADELPHIA Sheriff's Costs: Docketing Out of County Surcharge DEP. PHILA CO 18.00 9.00 10.00 116.00 .00 153.00 12/14/2000 ANTHONY STEFANON S~~_~ ~O;;;-afKline Sheriff of Cumberland County Sworn and subscribed to before me this l,f~ day of l11.en~.L. / :JtnJ-O A.D. ~(}!h.t~#~'-' A~ Prothondta ,:4l'J4.ll_.~. " .~ ~ " .-~,~..~ ~. ~,--~... >--""''''''' .!\"'-....p . N ._ - .... r d9"79~/C7C/ SHERIFF'S RETURN - SUMMONS/COMPLAINT . L3~ COMMON PLEAS NO. ~nll"ITV "-Q\J-RT VERSUS ~t/ TERM, ~ ~ NO. ";;0 -60276' o Defendant SERVED AND MADE KNOWN TO 4- ~? r'-~ ~ndant Company by handing a true and attested copy of the within Summons/Complaint, issued in the above captioned matter on //- /7 :rg-20100 ,at j()f D~lock, ft M~.S.T. ,/? /7 at c/"F ~ _ 0/HlVA/te , in the County of Philadelphia, State of Pennsylvania, to /JJU~*7 o (1) the aforesaid defendant, personally; o (2) an adult member of the family of said defendant, with whom said defendant resides, who stated that his/her relationship to said defendant is that of o (3) an adult person in charge of defendant's residence.; the said adult person having refused, upon re- quest, to give his/her name and relationship to said defendant; o (4) the manager/clerk of the place of lodging in which said defendant resides; ~ agent or person for the time being in charge of defendant's office or usual place of business. o (6) the and officer of said defendant Company; So Answers, .JOHN D. GREEN, Sheriff By: !J~~~ ~ 6eputy Sheriff 12-38 (Rev. 12Al7) '-( - .[ '" - . l'h Tbe Court of Common Pleas of Cumberland County, Pennsylvania Bruce J. Bishoff, et. al. VS. FA Property & Casualty Insurance Guaranty Association No. 20-5506 Civil .,/" 10/23/00 \ l . , 2() 0 I/) , I, SHERIFF OF CillvlBERLAND COUNTY, P A, do ---". Now, . hereby deputize the Sheriff of PhiJ,loelPhia County to execute this Writ, this d'epU1li!ion being madf;atther~~uest and risk of the Plaintiff. _'uuu_'U . rPt?A#l"'~~# Sheriff of Cumberland County, P A Affidavit of Service Now , ,20_,at o'clock M. served the within upon at by handing to copy of the original a and made Imown to the contents thereof So answers, Sheriff of County, PA Sworn and subscribed before me this_day of ,20_ COSTS SERVICE MILEAGE AFFIDA VIT $ $ ~~ . ." -~ --~ ! I , ..~ ~.. "'~, -'" .~, -. , ~~ ~ -~" , ,.'..... ~ -{..: ~ ~ 'et 6 G ,~..~ _ .!IiflW_~~'!!'jI!~~~","_~ _ ~,~, ." .m_~ ~<"_,".,~,~I~ BRUCE BISHOFF and BETTY J. BISHOFF COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL VANIA v. No. 00-5506 PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION Civil Action Law ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter our appearance on behalf of defendant, the Pennsylvania Property and Casualty Insurance Guaranty Association, in the above-captioned matter. BRITT, HANKINS, SCHAIBLE & MOUGHAN BY: X-d~ Lise Lu~orsky, Esquire Attorney LD. No. 22099 Two Penn Center Plaza, Suite 515 1500 John F. Kennedy Boulevard Philadelphia, PA 19102-1888 (215) 569-6918 Attorneys for Defendant Dated:December 19. 2000 JURY TRIAL DEMANDED '~~ : ,~ " ~J " I I; i,~ , qr~~~,,~, ~~T'" JltJqll , ~ ^: -~- () C- ?' "1:J- nl,fp ~:ri -"_C"c g~~;' :> :?o -':::::CJ ::s:~ "-- :::;;! "....... <::J C'; t::1 ['"'1 '"J ,"> <::) r~ ~:~ =:'1 , - , .-~ '_ .~I f~j '.', ; --Ci -c -- ,..f_... ~;:~~' =1:'1 " r.- '-' ~, '~', ,~!iiI(~~.l1~!~~~l~i~"W!~'!'Sir.~~_'~, _~_'Ii!~~. $I.P ._1 ~ , ",.,,!"Jr BRUCE BISHOFF and BETTY J. BISHOFF : COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL VANIA v. No. 00-5506 PENNSYL VANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION Civil Action Law CERTIFICATE OF SERVICE I certify that a copy of Defendant, the Pennsylvania Property and <rasualty Insurance Guaranty Association's, Entry of Appearance was mailed this day to the below- listed counsel: Anthony Stefanon, Esquire 407 North Front Street P.O. Box 12027 Harrisburg, P A 17108-2027 (717) 232-0511 Attorney for Plaintiffs Y~L~ Lise Lubarsky, Esquire ! Attorney LD. No.: 22099 . BRITT, HANKINS, SCHAIBLE & MOUGHAN Two Penn Center Plaza, Suite 515 1500 John F. Kennedy Boulevard Philadelphia, PA 19102-1888 (215) 569-6918 Dated: December 19.2000 '~~ . ~-.~ ~"=, . , ~ "' ""'!.'""~~r~J _11 PIT~~,," flI!,,'ji!!ljll!l~I~~Vf~n~j'.{K,~, _"""~M!I!lB:Il ~. 0 (,=} ~; C c.::) ;::-.0- 0 vC;:j ,,'1 nir":' ~,.-' z:+' zt-'-' {'-' ~:~~ (:=J <C~ ,> .. ~q -" _-c:~ )>CO ,'~~ c: ~.. '-' z ..~ :}:::, -J .-J :"0 -<c -< Jll!1-~7,~! ~~- ,._~._=~'~~~'t'~;:"'1";""'>'l,JW;;W"li,,_.~r11W#iI!~~.Mt'4-iI'P!~''!&WU'i!~~ffi-Jlrm~~~ BRUCE BISHOFF and BETTY 1. BISHOFF COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. No. 00-5506 PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION Civil Action Law CERTIFICATE OF SERVICE I certify that a copy of the Answer and New Matter of the Pennsylvania Property and Casualty Insurance Guaranty Association was mailed, this date, by fIrst class mail, as follows: Anthony Stefanon, Esquire 407 North Front Street P.O. Box 12027 Harrisburg, P A 17108-2027 (717) 232-0511 Attorney for Plaintiffs ;/~ ~__v[~~ Lise Luborsky, Esquire Attorney LD. No.: 22099 BRITT, HANKINS, SCHAIBLE & MOUGHAN Two Penn Center Plaza, Suite 515 1500 John F. Kennedy Boulevard Philadelphia, PA 19102-1888 (215) 569-6918 Attomeys for Defendant, The Pennsylvania Property and Casualty Insurance Guaranty Association Dated:December 19.2000 ".--,~ '_0 _ ~. 0 ,., . w ~_ ",,,I..~-, ",,",.,,_"~':'''IIf~L 0' "-- ,-< - 'U -, .-~ '. ~- () 0 (~) C C) -n 5:. a e -v: 0:; "~'~f ;j ffl-fT: C'o'} ...- Z::<:::, 1'0 '~;:=J 2C ~~~: c; '~j~~ ~\::) --c ~o t) :2..-\ -' ,--'j (=C',: r- C) ,--;-'\ ;;>c:': ::::;1 2 N 55 =< -< !,~,_:".Ilt:~~-,*m!J;~~'~it'!.,,!;wI~I!"\$!Il'~~~~mIl~liI~ '. , . NOTICE TO PLEAD To: Plaintiffs You are hereby noticed to plead to the within New Matter within twenty (20) days of service hereof or a judgment may be entered against you. &/~!rei ~t-e~ Attorneys for De endant BRUCE BISHOFF and BETTY J. BISHOFF COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. No. 00-5506 PENNSYL VANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION Civil Action Law ANSWER AND NEW MATTER OF THE PENNSYL VANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION 1. After reasonable investigation, the Pennsylvania Property and Casualty Insurance Guaranty Association (the "Association") is without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 1. The averments are therefore deemed denied. 2 - 7. Admitted. 8. The averments of paragraph 8 are conclusions oflaw to which no answer is required. Further, the Association assumed the handling of covered claims pursuant to the provisions ofthe Pennsylvania Property and Casualty Insurance Guaranty Association Act, 40 P.S. SS 991.1801 et seq. (the "Act"), as required by the Act, not "on behalf of PIC." 9. The Association admits only that at the conclusion of discovery, the matter ;.;!"!". J' -,.., -, , ."', , was listed for trial during the week of July 10, 2000. After reasonable investigation, the Association is without knowledge or information sufficient to form a belief as to the truth of the remaining avennents of paragraph 9. The averments are therefore deemed denied. 10. Admitted in part; denied in part. The Association admits only that the parties settled the case before trial for the gross amount of $195,000, subject to the offset provision of the Act, 40 P.S. ~ 991.l8l7(a), under the terms ofa release, a copy of which is attached as Exhibit "A" to the Complaint. The Association denies that the settlement was for a nominal sum. On the contrary, the settlement was for the amount agreed by the parties to conclude all claims. 11. Denied as stated. On the contrary, the Association asserted that the gross amount payable on the covered claim, $195,000, must be reduced by the amount of any recovery under other insurance, including payment of medical expenses, pursuant to the offset provision of the Act, 40 P.S. ~ 991.l817(a). 12. Admitted in part; denied in part. The Association admits only that plaintiffs executed the Release, a copy of which is attached as Exhibit "A" to the Complaint. The remaining averments of paragraph 12 are denied, in that the Release speaks for itself. 13. Denied. On the contrary, the Association is not obligated to pay more than the $56,693.22 it has already paid, because the $195,000 gross settlement amount is offset by the recovery of $138,306.78 under other insurance, pursuant to the offset provision of the Act, 40 P.S. ~ 991.l8l7(a). 2 :;""'..,.",._.111 ---'-' ., -" - (a) Denied as stated. On the contrary, the Association incorporates by reference paragraph 11 ofthis answer. As further answer, plaintiffs have not shown that the $138,306.78 was paid by the Central Susquehanna Region School Employees' Health and Welfare Trust and not through insurance. After reasonable investigation, the Association is without knowledge or information sufficient to form a belief as to the truth of those averments of subparagraph l3(A). The averments are therefore deemed denied. (b) Denied. On the contrary, the entire Pennsylvania Property and Casualty Insurance Guaranty Association Act was enacted as a whole on December 12, 1994, was effective February 10, 1995, and is expressly applicable to all insurer insolvencies occurring after its effective date, including the PIC insolvency which occurred three years after its effective date. The former statute was repealed in its entirety effective February 10, 1995, three years before the PIC insolvency. Further, plaintiffs had no claim against the Association until after the PIC insolvency, and the Association did not take anything from plaintiffs. The remaining averments of subparagraph 13(B) are conclusions oflaw to which no answer is required. (c) The averments of subparagraph 13(e) are conclusions oflaw to which no answer is required. Further, recoveries under health insurance are expressly made an offset under the Act, at 40 P.S. II 991.l817(a). (d)-(f) The averments of subparagraphs 13 (D) through 13(F) are conclusions of law to which no answer is required. 3 )B~ < ',= . . ~~ WHEREFORE, the Association demands judgment in its favor, together with costs of suit and attorney's fees, and a judgment declaring that the Association is not obligated to pay the more than the $56,693.22 it has already paid, because the $195,000 gross settlement lllIlount is offset by the recovery of $138,306.78 under other insurance, pursuant to the offset provision of the Act, 40 P.S. S 991.18l7(a). NEW MATTER 14. The Association is an unincorporated association created under the Act. 15. The Association obtains its funds for payment of covered claims by assessing its members, which are the licensed insurance carriers writing property and casualty insurance in Pennsylvania. 40 P.S. S 991.1802,40 P.S. S 991.1803(b)(3), 40 P.S. S 991.1808. 16. The present Pennsylvania policyholders of solvent Pennsylvania insurers bear costs of assessments under the Act, which provides: The rates and premiums charged by a member insurer for policies to which this article applies shall appropriately reflect assessments paid to the association by the member insurer less any amounts returned to the member insurer by the association. 40 P.S. S 991.1810. 17. Assessments are divided into two accounts, (1) automobile and (2) all other insurance to which the Article applies. 40 P.S. S 991.1808(a). 18. Pennsylvania policyholders under homeowners' policies and all other non- 4 ,;:'01,,*,__. ", ~, ~ ~ - ~.1 automobile property and casualty insurance policies ultimately bear costs of assessments the Association makes as a result of the PIC insolvency. 19. The Act limits the amount the Association may assess in any year to 2% of the net direct written premiums in Pennsylvania for the preceding calendar year on the kinds of insurance in an account, in this case, the "other" account, which includes all non- automobile property and casualty insurance policies. 40 P.S. ~ 991.1808(d), 40 P.S. ~ 991.1802 (definition of "net direct written premiums"). 20. To handle and pay covered claims under PIC policies, policies issued by another insolvent medical malpractice insurer, P.LE. Mutual Insurance Company ("P.LE.), and other insolvent insurers, the Association has assessed the maximum amount it is entitled to assess for the "other" account in 1998, 1999 and 2000. 21. The statutory limitations on the Association's obligations are mandatory, and are essential to conserve the Association's limited funds. 22. The Act provides, at 40 P.S. ~ 991.1817(a): Any person having a claim under an insurance policy shall be required to exhaust first his right under such policy. For purposes of this section, a claim under an insurance policy shall include a claim under any kind of insurance, whether it is a first-party or third-party claim, and shall include, without limitation, accident and health insurance, worker's compensation, Blue Cross and Blue Shield and all other coverages except for policies of an insolvent insurer. Any amount payable on a covered claim under this act shall be reduced by the amount of any recovery under other insurance. (emphasis supplied). 5 ;i~~"""iW ~~ 23. Under the above offset provision of the Act, the amount of recovery under other insurance offsets the $195,000 gross settlement amount. 24. In the medical malpractice action, plaintiffs had recovered $138,306.78 for medical expenses. 25. Plaintiffs' claim for medical expenses in the underlying medical malpractice case was covered under the PIC policy providing medical malpractice coverage to Hugh T. Knight, M.D. 26. Plaintiffs' medical malpractice action against Dr. Knight was settled more than two years after the PIC insolvency. 27. A copy of the Order of the Commonwealth Court of Pennsylvania of January 21, 1998, declaring PIC insolvent and placing it in liquidation, is attached as Exhibit "A." 28. At the time of the settlement of the medical malpractice case against Dr. Knight, in July, 2000, PIC was in liquidation and did not participate in the settlement. 29. The Pennsylvania Property and Casualty Insurance Guaranty Association Act does not preclude plaintiffs from making a claim in the PIC liquidation for the $138,306.78 amount of the offset. See Exhibit "A." 30. On July 31, 2000, the Association paid plaintiffs $56,693.22, as a result of reducing the $195,000 gross settlement amount by $138,306.78. 31. The entity that paid the $138,306.78 in medical expenses had contractual 6 'N~W'I .~,~ _.~ _, , -". ,. - obligations to plaintiffs. 32. Plaintiffs have not shown compliance with the requirement to exhaust other insurance, by failing to show how the $138,306.78 was paid. WHEREFORE, the Association demands judgment in its favor, together with costs of suit and attorney's fees, and a judgment declaring that the Association is not obligated to pay the more than the $56,693.22 it has already paid, because the $195,000 gross settlement amount is offset by the recovery of$138,306.78 under other insurance, pursuant to the offset provision of the Act, 40 P.S. S 991.l8l7(a). BRITT, HANKINS, SCHAIBLE & MaUGHAN BY: ~ .-2tJ/W~k ------- Lise Luborsky {:l Attorney LD. No. 22099 Two Penn Center Plaza, Suite 515 1500 John F. Kennedy Boulevard Philadelphia, PA 19102-1888 (215) 569-6918 Attorneys for Defendant Dated:_~.I'1 / :ZOO 0 7 "B'lII'~~,~ ~ .~. VERIFICATION Stephen F. Perrone hereby states that he is the Claims Manager of Defendant in this action and verifies that the statements made in the foregoing Answer and New Matter of the Pennsylvania Property and Casualty Insurance Guaranty Association are true and correct to the best of his knowledge, information and belief. The undersigned understands that the statements therein are made subject to the penalties of 18 Pa. C.S. S 4904 relating to unsworn falsification to authorities. rf'g ~("L ..._J! L . d....."'V~. . Jvv....\...'>.___~ Stephen F. Perrone Claims Manager, Pennsylvania Property and Casualty Insurance Guaranty Association Dated: ,'4- It 'i J 0 D "$j~~,~- " . ~ .', IN THE COMMONWEALTH COURT OF PENNSYLV ANlA M. Diane Koken, Insurance Commissioner of the Commonwealth of Pennsylvania : . . Plaintiff . . . . v. . . 'l'lC Insurance Group, Inc. Defendant . . Docket NO.L\L\-!-O 1998 ORDER OF LIQUIDATION Plaintiff, the Insurance Commissioner of the Commonwealth of Pennsylvania, having filed a Petition for Review (In the Nature of a Petition For Liquidation) ("Petition") in accordance with the Insurance Department Act of/921, Act of May 17, 1921, P.L. 789, l!li amended, 40 P.S. ~S221.1-221.63, the Court hereby fmds that it is in the best interest of Defend~t, its policyholders and creditors, and of the public, that Defendant be placed into Liquidation in accordance with the provisions of Article V of the Insurance Department Act, ID.!IIDl; and that sufficient grounds exist for the entry ofan Order of Liquidation including, without limitation, the fact that Defendant is insolvent and that on January IS, 1998, Defendant consented to the entry of an Order of Liquidation. . NOW, THEREFORE, it is ordered, adjudged and decreed: 1. The Petition of the Insurance Commissioner of the Commonwealth of 1 '~''''_iil_~,_ "~ ~ ~, "",,1m Pennsylvania ("Commis'sioner") for the entry of an Order of Liquidation, fmdings ofinsolvency and agreement to liquidation is granted. 2. M. Diane Koken, Insurance Commissioner of the. Commonwealth of Pennsylvania is, and her successors in office are, hereby appointed Liquidator of Defendant and are directed immediately to take possession of its property, ,business. and affairs as Hquidator, to liquidate the business and affairs of the company pursuant to the provisions of Article V of the Insurance Department Act (40 P.S. ~~221.1-221.63), and to take such action as the nature of this cause and the interest of the policyholders, creditors,. stockholders, or the public may;require. ASSETS OF THE ESTATE 3. The Insurance Commissioner is vested as Liquidator with title to all property, assets, contracts and rights of action of Defendant, wherever located, as of the date of the filing of the Petition for Liquidation. , 4. All banks, brokerage houses, or other companies or persons having in their possession assets which are, or may be the property of Defendant, be and are hereby ordered to deliver the possession of the same immediately to the Liquidator, and are further ordered not to disburse the same without the written consent of or unless directed in writing by the LiqUidator, and such persons and entities, and all other persons and entities, are enjoined from disposing of or destroying any records pertaining to any business transactions between Defendant and banks, -2- 1 .'-'".-~" ~~ ~ , brokerage houses or other persons or companies having done business with Defendant or having in their possession assets which are or were the property of Defendant. . 5. All agents, brokers or other persons having sold policies of insurance and/or -' collected premiums on behalf of the Defendant shall account for' and pay all premiums and c:JITunissions unearned due to policies canceled by this Order, orin the nonnal course of business, owed to Defendant directly to the Liquidator within 30 days of demand by the Liquidator or appear before this Court to show good cause, if any they may have, as to why they should not be required to account to the Liquidator or be held in contempt ofCourtfor:violation:oftheprovisions of this Order. No agent, broker, or other person shall use premium moneys owed to Defendant for refund of unearned premium or any purpose other than payment to the Liquidator. The Liquidator shall serve this Order on all agents, brokers or others in accordaru:e with 40 P .S. . S22l.24 which shall constitute notice of its injunctive provisions. 6. All attorneys employed or retained by Defendant as of this date shall, within thirty (30) days notice of this Order, report to the Liquidator on the name, company claim number and status of each file they are handling on behalf of the Defendant. Said report shall also include an accounting of any funds received from or on behalf of the Defendant. 7. Any premium tinance company which has entered into a contract to finance for a policy which has been issued by the Defendant shall pay the premium owed to the Defendant directly to the Liquidator. -3- ~ "'""',"'""''''''''''_., ._~ : . '. 8. Upon request by' the Liquidator, any company providing telephone services to the Defendant shall provide a reference of calls from the. number presently assigned to the Defendant to any such. number designed by the Liquidator or perform any other changes necessary to the conduct of the receivership. 9. Any entity furnishing water, electric; sewage;,garbage'or,.trash.removal services to the Defendant shall maintain such service and transfer any such accounts to the Liquidator as of the date of this Order unless instructed to the contrary by the Liquidator. 10. Any data processing service whichhas.custody,or controLof;any data processing information and records including but not limited to source documents, data processing cards, input tapes, all types o~ storage information, master tapes or any other recorded information relating to Defendant, shall transfer custody and control of such records to the Liquidator and continue to provide necessary data processing services to the Liquidator unless instructed to the contrary by the Liquidator. 11. The United States Postal Service is requested to provide any information sought regarding Defendant and to handle future deliveries of PIC's mail as directed by the Liquidator. . 12. The Defendant, its directors, officers, trustees, employees, attorneys, brokers, agents, policyholders, creditors, and any and all other persons are enjoined from: (1) the -4- 1 ""_~_W'''''''~ ~, ""..,.11 '-,,*'1;I/,~ ..' " transaction of further'busiii"ess, (2) the transfer of property, (3) any interference with Plaintiff in liquidating the Defendant's business and affairs, (4) any waste of the Defendant's assets or property, (5) the dissipation and transferof bank accounts and negotiable instruments, (6) the institution or further prosecution of any actions in law or equity, (7),the.;obtainingofpreferences, judgments, attachments, garnishments, or liens against the Defendant and its assets; property and policyholders, (8) the levy of execution process against Defendant andits assets;prop.erty;.andpolicyholders,.(9) the negotiation or execution of any agreement of sale or deed conveying personal or real property for nonpayment of taxes or assessments or for any other purpose, (10) Withholding from Plaintiff or removing, concealing, or destroying books, accounts,documents,'or,other,'records,relating to Defendant's business, and (II) the taking of any other action which might lessen the value of Defendant's assets or property, prejudice the rights and interests of policyholders and creditors, or interfere in the administration of the proceeding. 13. Defendant, its officers, directors, trustees, employees, consultants, contractors, agents and attorneys are hereby ordered and enjoined to surrender peacefully the premises where Defendant conducts its business, and to deliver all keys thereto, and to any safe deposit boxes, and to advise the Liquidator, her agents and attorneys, of the combinations of any safe or safekeeping devices of Defendant or any password or authorization code or access code required for access to data processing equipment. . 14. Defendant, its officers, directors, trustees, employees, consultants, contractors, agents and attorneys are hereby ordered and enjoined to deliver peacefully and surrender -5- 1 ,- ~..~ ,.. to the Plaintiff, her agents and attorneys, all and. singular, all of the assets, bookS, records; files, credit cards, or other property of the Defendant in its possession or control and to otherwise advise and cooperate with the Plaintiff in identifying and locating. any of the Defendan~'s assets. . IS. The rights and liabilities of Defendant and ofits creditors, policyholders, trustees, shareholders, members and all other persons interested'jn,'.this..estate are:determined in accordance with Article V of the Insurance Department Act of 1921,Act of May 19, 1921, P.L. 789, ~ amended, 40 P.S. ~~221.l-221.63, as of the date of the filing of this Order of Liquidation. . 16. Except for contracts of insurance or reinsurance;'all executory contracts to which Defendant was a party are hereby canceled and will stand canceled unless specifically adopted by the Liquidator within thirty (30) days of the date of this Order. Any cancellation under this provision shall not be treated as an anticipatory breach of such contracts. NOTICE AND PROCEDURE FOR FILING CLAIMS 17. The Liquidator shall give notice by first-class mail to all persons (including but not limited to individuals, aggregations ofindividuals, partnerships, corporations, associations, estates, trusts, and governmental units, to include all other entities not named), which may have claims against Defend.imt, contingent or otherwise, as revealed by its books and records, and shall advise such persons to present and file with the Liquidator, proper proofs of claim, in the form hereafter set forth. Said notice by the Liquidator to claimants shall specify -6- ". ');''q''''''''''''~''''If'~ that one year from the liquidation order's date at 5:00 PM EST to be the last day for the filing of such proofs of claim with the Liquidator at the offices designed in such notice. 18. The Liquidator shall notify all other persons who have, or may have a claim or claims against Defendant, by causing a notice to<<bepublishedina'newspaper of general ci:rculationwhere t4e Defendant has its principal place ofbusiness,'such,notice shall: (a) specify the last day for the filing of claims; (b) shall advise all persons ofthe procedure by which all such persons may present their claims to the Liquidator; (c) shall advise all such persons of the Liquidator's office wherein they may present their claim; and (d) shalladvise,all,sucltpersons of their right to present their claim or claims to the Liquidator. 19. Any and all persons, firms; corporations otherwise having or claiming to have any accounts, debts, claims or demands against Defendant, contingent or otherwise, or '. claiming any right, title or interest in any funds or property in the possession of the Liquidator be, and they hereby are, ordered and required to file with the Liquidator at her offices designated in the above-described notice, or on or before 5 :00 PM EST one year from the liquidation order's date a properly completed proof of claim, subject to the late filing provisions of the Insurance Department Act, ~ 40 P.S. ~221.37, or be thereafter barred as claimants against any assets in the hands of the Liquidator. . . . 20. No person having or claiming to have any claim or claims against Defendant shall participate in any distribution of the assets of Defendant unless such claims are -7- 1 ''''~ft-,.'''''''''''''''~'"'. ~ . , .. ~~ A; filed or presented in accordance with and within the time limits established by this Order, subject to the provisions for the late filing of claims contained in the Insurance Department Act, ~ 40 P.S. ~221.37. . 21. ,Noaction at law or equity shall be, brought against the Defendant or . Liquidator; whethedn.this Commonwealth orelsewhere,'nor$halLany such:existing action be . maintained or further presented after issuance of this Order. 'AU-actions.currently;pending against the Defendant in the.courts of the Commonwealth of Pennsylvania or elsewhere are hereby stayed. ,AU actions against the Defendant or Liquidator shall be submitted and considered as claims in this liquidation proceeding. 22" All actions or proceedings pending in the courts of this Commonwealth . or elsewhere in which theDefendant is obligated to defend a party are hereby, stayed for a period of ninety (90) days under Section 1819 of the Pennsylvania Property and Casualty Insurance Guaranty Association Act, Article XVIII of the Insurance Company Law, added 1994, Dec 12, P.L. 1005, No. 137 (40 P.S. ~991.l819). 23. No judgment or order against an insured or the insurer entered after the date of filing of the Petition for Liquidation, and no judgment or order against an insured or Defendant entered at any time by default or by collusion need be considered as evidence of liability or quantum of damages, by th~ Liquidator. -8- 1 i~'''~"'',_,,,,,. "0 ". . ~~ ,'. ':\'fW_'~ " 24. No action or proceeding in the nature of an attachment, garnishment, or execution shall be commenced'or .maintained in this Commonwealth or.elsewhere.against the Defendant, Liquidator, or their assets. 25. Any action in which the Defendant is obligated to defend a party, which is on trial before a jury as of the date of this order, shall be allowed:to proceedtothejssuance ofa verdict. Following the issuance of said verdict, all further proceedings are stayed. ~. P.I. DATED: Ianuary21,1998 . .~ I 11'1 ED fROOR~~~~~t~U~~ I\NO u JAM 21 1~~fl ell!. ~~,~.. oeputy protnnllOt,n' t "'" "I ~i'~"'"""*IlIJII!lft ~ '< " 0 a ~ c C) 'j " $: C:J n_.' -n F~~ fTl ,-'1 ?; ,""J - "'~ C N -.,1 u~ :2:. (=> Cl r" , u C) 3> -0 - !-~ (j :J'; z C) ,:') > ,~ r:- " ,-'j "'? ......" "'. ~.) o.e :2 :.:0 -< "ItIF~,,"I"' _._ __~!f~""__,,~~.$~~ ~ ~_ _~.!VJ( ~iffi!M[IfI;.'li'l@,f<iJiiYIl'-l%t.'~j;-;F"'_i'l'rw,ilji..-.f~~I"Mii~\m~"~!iilmW!IIl!fi.)l!W(!;;!H~,%"",I~W'j~'iU~~ BRUCE J. BISHOFF and BETTY 1. BISHOFF, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs : No. 00-5506 Civil Term v. : CIVIL ACTION - LAW PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY : ACTION FOR DECLARATORY JUDGMENT ASSOCIATION Defendants : JURY TRIAL DEMANDED PLAINTIFFS' REPLY TO NEW MATTER OF DEFENDANT 14. - 22. Denied. The averments of these paragraphs are conclusions oflaw not requiring answer by Plaintiffs. To the extent that the averments may be construed as averments offact, after reasonable investigation, Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of these averments, and proof thereof is demanded if relevant. To the extent that the averments recite the provisions ofPeru'1sylvania Statutes, those statutes are a matter of public record, and speak for themselves. 23. Denied. To the contrary PPCIGA is not entitled to a "offset" under the circumstances of the present case for the reasons set forth in Plaintiffs' Complaint. 24. Denied. To the contrary, Plaintiffs have only recovered the sum of$56,693.22 on their medical malpractice claim. They have yet to recover the sum of $138,306.78, which is the amount in dispute in this matter. I !,,"~. ""-"""-- ':'"" ',-,,- -, --""~-" " .-" ,c"._.". 25. Denied. To the contrary, Plaintiff cl,aimed illedical expenses as an element of damage in the medical malpractice case against Hugh T. Knight, M.D. Dr. Knight was insured under a PIC policy, and the Defendant PPCIGA has assumed responsibility for the claims against PIC pursuant to the provisions of 40 PS Section 991.1801 et seq. 26. Admitted. 27. Admitted. 28. Denied. To the contrary, pursuantto the provisions of 40 PS. Section 991.1801 et. seq., PPCIGA is obligated to pay the covered claims existing prior to the determination of the insolvency of PIC, and PPCIGA has the power and duty to be deemed the insurer to the extent ofits obligation on the covered claims, and has all the rights, duties, and obligations of the insolvent insurer with regard to those claims. 29. Denied. The averments of this paragraph are conclusions of law not requiring answer by Plaintiff. To the extent that an answer is required, under the provisions of PS Section 991.180 I et. seq., it is the obligation ofPPCIGA to pay the $138,306.78, as a covered claim for the insolvent insurer. 30. Denied. To the contrary, PPCIGA paid the sum of $56,693.22, leaving a balance due and owing to Plaintiff in the sum of $138,306.78. 31. Admitted. 32. Denied. To the contrary, Plaintiffs have provided documentation to PPCIGA establishing that the medical expenses were paid not by insurance, but by the Central Susquehanna Region School Employees Health & Welfare Trust, which is not an insurance company. i;:'7~ ~ < ,,"-'-," 'f. __,,_,' -To'" - -, '<>'<,O'."",;,ry':\'-, .'_. :"""",, ~"'h""'_'~ ;>;'-~'-'''''"'''-' _.~"_<-,~,_,' '.. -," . ,-. ,. . ',~__ , .,,",,~. ~, -', '" ~."- - ,.,,- WHEREFORE, Plaintiffs demand judgment in accordance with the prayer for release set forth in their Complaint. DATE:-12- 2-7 -?>O ':'~, ~- - -', "-",-~~-, ~"",-~-,-+,;",,_,,<,,_'~,,:':;,~. ,'- _^,,_"'_' ,_ - ~,~ "~"'_""__""_c'_ ,,'< ,_'''e,'__ :, ~,,_ _.< _ '" -~-." ,_ , '. VERIFICATION The undersigned hereby verifies that the facts averred in the foregoing PLAINTIFFS' ANSWER TO NEW MATTER OF DEFENDANT are true and correct to the best of his knowledge, information and belief. This Verification is made subject tot he penalties of 18 Pa. C.S.A. Section 4904 relating to unsworn falsification to authorities. ~ DATE: I '1";J3 J[j:) ^'--~';'-:---,--,"",._-"",--~--'- -'--,y,_-,~,___,~-,,__F~_J'<t._r_"'~"i''''~_~"'__=''_ -'-'h_',,<> '''',,_ .,,,,,, ,"'. < ,~~ "'._,,_~ '-"._2' ,. ~_ '. VERIFICATION The lLtldersignt'.d hereby verifies that the-facts averred in the foregoing PLAINTIFFS' REPLY TO NEW MATTER OF DEFENDANT are true and correct to the best of her knowledge, information, and belief. This Verification is made subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to unsworn falsification to authorities. -&~ Q. -S~ BET Y 1. BISHOFF DATE: jQ,~., .1 g 2tJtJiJ . ;clilt"., -" ',<,-~~- ,-"'-~,- ~,,,"'i ,_--~_~~_,~'~"~~',."i>''-N,","",q'_, _~_~~,,~ ., ~-_,'" ,~.,~,____ _.< . .-, -, ,- ~~ ,- - -^~ .i II , . .Ii ,I j Ji :1 I I I Ii il 'l :1 1! i~ ':-'~ll""l1!7 -. CERTIFICATE OF SERVICE The undersigned hereby. certifies that, on the date below he served a true copy of PLAINTIFFS' REPLY TO NEW MATTER OF DEFENDANT, on each of the persons listed below, at the addresses set forth, by First Class United States Mail: LISE LUBORSKY BRITT, HANKINS, SCHAIBLE & MOUGHAN SUITE 515 TWO PENN CENTER PLAZA 1500 JFK BLVD PHILADELPHIA, PA 19102-1888 By: DATE: tz..-Z-"1 -aD .'- ->-,-,~,~_,_,_-_,,""~"_~_',".__ -,"" ,. ^o'v,,., _ _ ,-,><T, .c'_, '. ,_-!!;.~_,. , -"" -,,, Ill! ~'e ~,. W.'~-'"h',~ .- o c '" -0r~; m;l'i ~.ir -<.-.-: c;:c );Cl j;~~: "7 =J -:.. ~..,. ~m'_r,,:Rl~rf'<;J"""~_"" ~~,~,"'" ".,~ LiB. T c-:-) C) r:::J i"q CO) ;'-.) 0:' C) .'1'1 ::!'; r'1 (r/ S) ,j 1"\.) -;.-l:~ ~5P; ~.};; ~ -;.,. '0 '1>'11__ ~ .~ . , , ] ji 'I ;1 'j ,I "i J :1~_ , , ... ORIGINAL BRUCE J. BISHOFF and BETTY 1. BISHOFF, Plaintiffs : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA VS. : No. 00-5506 Civil Term PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION, : CIVIL ACTION - LAW Defendants : ACTION FOR DECLARATORY JUDGMENT : JURY TRIAL DEMANDED PRAECIPE FOR SETTLEMENT AND DISCONTINUANCE TO THE PROTHONOTARY: Mark the above-captioned matter settled, discontinued, and ended. By: DATE: Z ~ 'l7 -0/ :.', ,>"'r~- ,-" '",'- ^" ~ "1~" . ,~ -,' "",_,/,~_c-'[: ,_e _~ - ~,-, , - - ! "-.". ' "i I,.... ,~_....,..' ~ i .~''':''='f-.c-- :) ,r ." . -.he "1 ~, ;' t -'{ /-.~ i ){ ~ l J ; :~ t,.} -,-" ."'- '",-~ ,~ ,; ",<'" rtrW, 'V_'" ""., ,-^'.;",.,.,~~_,_~ ,-_~'h','_u .' , ,- - - ",-" ""'0, ''::i ' .;,~ "- -^ <.. ,-,..,,- r'X;--:,'. ~~~~; ~.. ~~~~;' ";'---'::... -..."'" ~ ",.,.- Q r:..;.. 1''-,) t>-: ,".,-' .,:::] tD -~- ~ -~ .~ ""', ',' '--'-"""''''''"i'_'