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HomeMy WebLinkAbout10-7327FILEO-OFFICE OF THE PROTHONOTARY McNEES WALLACE & NURICK LLC By: Guy H. Brooks Attorney ID No. 49672 100 Pine Street Harrisburg, PA 17108-1166 (717) 237-5384 (717) 237-5300 facsimile gbrooks _mwn.com 2010 NOV 23 PM 3: 28 CUMBERLANO COUNTY PENNSYLVANIA Attomeys for Plaintiff JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. Docket No. i d-? 3a JOSHUA A. PARRISH and AMANDA L. PARRISH, t?,y S Pi.W aPefendants '(?/tecnani csbu•-? P? 1 doss PRAECIPE FOR WRIT OF SUMMONS To: Prothonotary Please issue a writ of summons in Civil Action -- Law in the above-captioned action. Dated: November 22, 2010 McNEES WALLACE & NURICK LLC r By. / Guy . Brooks 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108 (717) 232-8000 Attomeys for Plaintiff 11, p„c ??as?sg3 McNEES WALLACE & NURICK LLC By: Guy H. Brooks Attorney ID No. 49672 100 Pine Street Harrisburg, PA 17108-1166 (717) 237-5384 (717) 237-5300 facsimile gbrooks(camwn.com Attomeys for Plaintiff JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. Docket No. 3 9L JOSHUA A. PARRISH and AMANDA L. PARRISH, : rnprW .Defendants I $0y S) Me?Jlan?csbur5 , PLi I-7bss WRIT OF SUMMONS To: Joshua A. Parrish and Amanda L. Parrish, Defendants YOU ARE NOTIFIED THAT THE ABOVE-NAMED PLAINTIFF HAS COMMENCED AN ACTION AGAINST YOU. --am Protho ary Deputy Date: November AS , 2010 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor Janet C. Miller vs. Joshua Parrish (et al.) THE ... PtQTI jq0 t,-, 2010 0FC 20 PM 2:'57 C'UMBERL40 rvUtili- / tiS YLVAr-) , Case Number 2010-7327 SHERIFF'S RETURN OF SERVICE 12/09/2010 05:00 PM - Dennis Fry, Deputy Sheriff, who being duly sworn according to law, states that on December 9 2010 at 1700 hours, he served a true copy of the within Writ of Summons, upon the within named defendant, to wit: Amanda Parrish, by making known unto herself personally, at 1804 S. Market Street, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of the same. DENNI FRY, D U 12/09/2010 05:00 PM - Dennis Fry, Deputy Sheriff, who being duly sworn according to law, states that on December 9 2010 at 1700 hours, he served a true copy of the within Writ of Summons, upon the within named defendant, to wit: Joshua Parrish, by making known unto Amanda Parrish, Wife of defendant at 1804 S. Market Street, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of the same. r- DENNI FRY, DE SHERIFF COST: $62.00 December 13, 2010 SO ANSWERS, f , RONNW R ANDERSON, SHERIFF McNEES WALLACE & NURICK LLC By: Guy H. Brooks Attorney ID No. 49672 100 Pine Street Harrisburg, PA 17108-1166 (717) 237-5384 (717) 237-5300 facsimile gbrooks _mwn.com r?r 1 ] `- i a?,,.rt ' l C06! F { f , rre??. Attomeys for Plaintiff JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. Docket No. Z t (? JOSHUA A. PARRISH, AMANDA L. PARRISH, ERIE INSURANCE EXCHANGE t/d/b/a ERIE INSURANCE and THE ERIE Defendants AFFIDAVIT PURSUANT TO RULE 229.1 - SETTLEMENT FUNDS. FAILURE TO DELIVER. SANCTIONS AND NOW, comes Plaintiff, by and through her attorneys, McNees Wallace & Nurick LLC, and files the following Affidavit Pursuant to Rule 229..1 - Settlement Funds. Failure to Deliver. Sanctions., and in support thereof, states as follows: 1. Attached hereto as ExhibitA is a copy of Pa. R.C.P. 229. 1, which controls the procedure by which a plaintiff may compel delivery of settlement funds if said funds have not been delivered within 20 calendar days from receipt of an executed release. (Pa. R.C.P. 229.1(c)) 2. Pursuant to Pa. R.C.P. 229.1(d)(2), Plaintiff seeks to impose sanctions on the Defendants as provided in subdivision (e) of this rule. 3. Pursuant to Pa. R.C.P. 229.1(e), Plaintiff, now attesting to the nonpayment of the settlement amount of $200,000, attaches the following documents as called for in Pa. R.C.P. 229.1(e)(1)-(5): (a) A copy of a release executed by Plaintiff Janet C. Miller on October 4, 2011 (Exhibit B); (b) A copy of a letter dated October 7, 2011, forwarding the executed release to Erie Insurance (Exhibit C); (c) A copy of a letter dated October 18, 2011, from Dan Peron at Erie Insurance acknowledging receipt of the release executed by Plaintiff and Erie's refusal to deliver the settlement funds (Exhibit D). (d) A certificate by Guy H. Brooks, Esquire, of the applicable interest rate (Exhibit E); (e) A certificate that we are serving a copy of this Affidavit on Dan Peron, Claims Adjuster, at Erie Insurance. Presently, there is no attorney involved on behalf of Defendants Joshua A. Parrish, Amanda L. Parrish or Erie Insurance. 4. There is neither statutory nor case authority supporting Erie Insurance's refusal to deliver the settlement proceeds. MINE WALLACCE?& NURICK LLC By l r l? Guy H. Brooks 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108 (717) 232-8000 Dated: November 2, 2011 Attomeys for Plaintiff 2 BUSINESS OF COURTS certificate of merit as to that defendant has not been filed. Note: Rule 1042.3 requires the filing of a certificate of merit as to a defendant against whom a professional liability claim is asserted. (c) The court, upon petition and after notice, may strike off a discontinuance in order to protect the rights of any party from unreasonable inconvenience, vexa- tion, harassment, expense, or prejudice. Note: Court approval of a discontinuance must be obtained in any action in which a minor is a party, Rule 2039(a), an action for wrongful death in which a minor is beneficially interested, Rule 2206(x), an action in which an incapacitated person is a party, Rule 2064, and a class action, Rule 1714. A plaintiff who asserts a cause of action ex contractu and joins as defendants persons liable to the plaintiff in different capacities may not discontinue as to a defendant primarily liable without discontinuing as to all defendants secondarily liable. Rule 2231(e). Adopted Sept. 30, 1949, effective April 1, 1950. Amended April 18, 1975, imd. effective; March 11, 1991, effective July 1, 1991; July 18, 1991, effective Jan. 1, 1992; April 12, 1999, effective July 1, 1999; Jan. 27, 2003, imd. effective. Explanatory Comment-1991 Prior to the present amendment, Rule 229(b) required leave of court to discontinue an action as to less than all parties. However, it had been suggested it was unnecessary to involve the court in a discontinuance where there is an agreement of all parties. The amendment adopts the suggestion so that the rule now permits such a discontinuance either upon agreement of all parties or with leave of court. Irrespective of the proposed amendment, there are several rules which would still require court approval of a discontinu- ance: Rule 2039(a) governing minors as parties, Rule 2206(x) governing wrongful death actions involving minors, Rule 2064 governing incompetents, Rule 1714 governing class actions and Rule 2231 governing joinder of parties. Rule 229.1. Settlement Funds. Failure to Deliv- er. Sanctions (a) As used in this rule, "defendant" means a party released from a claim of liability pursuant to an agreement of settlement; "plaintiff" means a party who, by execution of a release pursuant to an agreement of settlement, has agreed to forego a claim of liability against a defendant. The term includes a defendant who asserts a counter- claim; "settlement funds" means any form of monetary exchange to a plaintiff pursuant to an agreement of settlement, but not including the annuity or future installment portion of a structured settlement. (b) The parties may agree in writing to modify or waive any of the provisions of this rule. (c) If a plaintiff and a defendant have entered into an agreement of settlement, the defendant shall deliver the settlement funds to the attorney for the plaintiff, or to the plaintiff if unrepresented, within twenty calendar days from receipt of an executed release. 55 Rule 229.1 Note: If court approval of the settlement is required, Rule 229.1 is not operative until the settlement is so approved. Upon receipt of the settlement funds, the plaintiff shall file a discontinuance or deliver a discontinuance to the defendant. (d) If settlement funds are not delivered to the plaintiff within the time required by subdivision (c), the plaintiff may seek to (1) invalidate the agreement of settlement as permit- ted by law, or (2) impose sanctions on the defendant as provided in subdivision (e) of this rule. (e) A plaintiff seeking to impose sanctions on the defendant shall file an affidavit with the court attesting to non-payment. The affidavit shall be executed by the plaintiff's attorney and be accompanied by (1) a copy of any document evidencing the terms of the settlement agreement, (2) a copy of the executed release, (3) a copy of a receipt reflecting delivery of the executed release more than twenty days prior to the date of filing of the affidavit, (4) a certification by the attorney of the applicable interest rate, (5) the form of order prescribed by subdivision (h), and (6) a certification by the attorney that the affidavit and accompanying documents have been served on the attorneys for all interested parties. (f) Upon receipt of the affidavit and supporting documentation required by subdivision (e), the defen- dant shall have twenty days to file a response. (g) If the court finds that the defendant violated subdivision (c) of this rule and that there is no material dispute as to the terms of the settlement or the terms of the release, the court shall impose sanctions in the form of interest calculated at the rate equal to the prime rate as listed in the first edition of the Wall Street Journal published for each calendar year for which the interest is awarded, plus one percent, not compounded, running from the twenty-first day to the date of delivery of the settlement funds, together with reasonable attorneys' fees incurred in the preparation of the affidavit. (h) The affidavit shall be accompanied by an order in substantially the following form: (Caption) ORDER AND NOW, upon consideration of the affidavit of , attorney for (Plaintiff), and the exhibits thereto, and upon a finding that payment was not trade within twenty days of receipt of the executed release in the above captioned action, it is ORDERED that, in addition to the settlement funds of $ (Defendant) pay forthwith interest at the rate of % on the aforementioned settlement Rule 229.1 RULES OF CIVIL PROCEDURE funds from the twenty-first day to the date of delivery of the settlement funds, together with $ in attorneys' fees, Judge Note: The interest rate is determined in accordance with subdivision (g) of this rule. The defendant is the party who has failed to deliver settlement funds as required by this rule. The plaintiff is the party who is seeking to impose sanctions on the defendant for that failure. Adopted June 7, 2004, effective July 1, 2004. Explanatory Comment-2004 New Rule 229.1 governs sanctions for failure to deliver settlement funds. The new rule provides a straightforward procedure of an affidavit filed by the plaintiff, a response filed by the defendant and a decision entered by the court. Three points should be noted. First, while the rule estab- lishes a standard with respect to the delivery of settlement funds, the "parties may agree in writing to modify or waive any of the provisions of this rule." Thus, where the standard cannot be met because of the particular type of party involved, industry practice or custom, or other consideration, the parties may agree not to be bound by the rule. Second, subdivision (a) defines the terms "defendant", "plaintiff" and "settlement funds". The plaintiff is the party seeking the imposition of sanctions, whether that party is plaintiff or defendant in the action. Similarly, the defendant is the party against whom sanctions are sought, whether that party is plaintiff or defendant in the action. Finally, the sanction imposed includes an award of interest on the settlement funds for the period during which the defendant has failed to deliver the funds to the plaintiff as required by the rule. The calculation of the rate of interest is identical to the manner of calculating damages for delay pursuant to Rule 238. Rule 229.2. Petition to Transfer Structured Set- tlement Payment Rights (a) Words used in this rule, which are defined by the Structured Settlement Protection Act, shall have the meaning set forth in the Act. Note: See Section 2 of the Act, 40 P.S. § 4002, which defines numerous terms including "best interests", "dependents", "payee", "structured settlement obligor", and "structured settlement payment rights." (b) A petition to transfer structured settlement pay- ment rights shall be filed in the county in which the payee is domiciled. Note See Section 4 of the Act, 40 P.S. § 4004, providing that the court of common pleas of the judicial district in which the payee is domiciled shall have jurisdiction over the petition. (c) The parties to the petition shall be the payee and the transferee. (d) The petition shall be verified by the transferee and shall contain: (1) a statement setting forth the payment provisions of the structured settlement agreement and the payment rights that: the payee seeks to transfer, (2) separate paragraphs which in bold type set forth (i) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges, and (ii) the following statement setting forth the inter- est rate: "Based on the net amount that the payee will receive from this transaction ($ _ ) and the amounts and timing of the structured settlement payments that would be assigned, the payee is, in effect, paying interest at a rate of % per year." (3) four attachments: (i) a Payee's Affidavit in Support of Petition, in the form prescribed by subdivision (f) as Attachment 1, (ii) an initial order of court scheduling the hearing, in the form prescribed by subdivision (g), (iii) a certification by an attorney for the transferee representing to the best of his or her knowledge, information and belief, formed after reasonable in- quiry, that the transfer will comply with the require- ments of the Act and will not contravene any other applicable federal or state statute or regulation or the order of any court or administrative authority, and (iv) a final order of court granting the petition, in the form prescribed by subdivision (i). Note: These four attachments are in addition to any other documents which are required to support the findings set forth in Section 3 of the Act, 40 P.S. § 4003. Subdivision (d) requires that two documents be verified. As the two documents contain different information, each must be verified by a different person. The petition to transfer structured settlement payment rights must be verified by the transferee. The Payee's Affidavit in Support of Petition must be verified by the payee. The transferee is not required to verify the information set forth in the Payee's Affidavit. (e)(1) If the petition and Payee's Affidavit in Support of Petition meet the requirements of this rule and contain factual allegations which, if established, will support the findings set forth in Section 3 of the Act, the court shall promptly enter an order scheduling a hearing date. The transferee shall give notice of the hearing, in the form prescribed by subdivision (h), to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person who receives child support, alimony or alimony pendente life from the payee. (2) If the petition is denied without a hearing for failure to meet the requirements of this rule or to contain necessary factual allegations, which will support the findings set forth in Section 3 of the Act, the court shall state reasons for the denial and the payee may file an amended petition as of course. (f) The Payee's Affidavit in Support of Petition shall be substantially in the following form: 56 GENERAL RELEASE CLAIM # 010171007344 For the consideration of Two Hundred Thousand Dollars and No Cents ($200,000), receipt of which is hereby acknowledged, I release and discharge, and for myself and for my heirs, representatives, executors, administrators, successors and assigns, do hereby remise, release and forever discharge Joshua A. Parrish and Amanda L. Parrish, hereinafter referred to as the releasees, their heirs, executors, administrators, insurers, successors and assigns, and any and all other persons, firms, corporations, associations, of and from any and all causes of action, suits, rights, judgments, claims and demands of whatsoever kind, in law or in equity, known and unknown, which I now have or may hereafter have, especially the claimed legal liability of releasees arising from or by . reason of any and all bodily or personal injuries and/or property damage known and unknown, foreseen and unforeseen, which heretofore have been or which hereafter may be sustained by me arising out of the accident on or about November 28, 2008, at or near 145 Gettysburg Pike, Upper Allentown Township, Cumberland County, Pennsylvania, which liability releasees expressly deny. I agree that the consideration set forth above is specifically applicable to and paid to me with respect to any and all damage to any property, either real or personal, of mine and with respect to any and all personal or bodily injury of mine, whether presently known or unknown, foreseen or unforeseen or which may subsequently develop and the consequences thereof, all as arising out of the aforementioned accident. I further agree that the consideration set forth above is specifically applicable to and paid to me with respect to any right of contribution that I may have against the releasees, their heirs, executors, administrators, insurers, successors and assigns relative to claims of others that may be brought against me by reason of said accident. I further agree that the consideration set forth above is specifically applicable to my agreement that I will not join nor attempt to join the releasees, their heirs, executors, administrators, insurers, successors and assigns in any capacity, in any action that may be brought against me arising out of said accident. I warrant for myself and my heirs, representatives, executors, administrators, successors and assigns that have received no money or other valuable consideration from any other person or persons by reason of any causes of action, suits, covenants, agreements, judgments, claims and demands of whatsoever kind, which I now have or may hereafter have, for injuries to my person or property or for the other matters for which this release is given. I further understand and agree that this Release is inclusive of any and all present and future liens or claims for subrogation against the payments to be made in accordance with this Release. I understand and agree that I am responsible for the payment of any liens or charges against the payments to be made hereunder should any such liens, subrogation, claims or claims for expenses and charges be asserted. This includes, but is not limited to, medical expense liens, worker's compensation liens, ERISA liens, liens asserted by any federal, state or local governmental entity or agency or any medical expense claim. Should any person or entity make claim for payment of any liens or charges against The ERIE or their counsel, I agree to indemnify and hold harmless The ERIE and their counsel from any and all such liens, charges, fees, claims, attorney fees, costs, interests and any other sum. I understand that this settlement is the compromise of a disputed claim, and that the payment is not to be construed as an admission of liability on the part of the persons, firms and corporations hereby released by whom liability is expressly denied. Intending to be legally bound thereby, WITNESS my hand and seal this ,< day of October, 2011. NOTICE: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects the person to criminal and civil penalties. WITNESS ?vv?ue?.et ,B-?aru? -(Seal) Ja'et C. Miller (Seal) McNees Wallace & Nurick LLc 100 Pine Street • PO Box 1166 • Harrisburg, PA 17108-1166 Tel: 717,232,8000 • Fax: 717,237,5300 October 7, 2011 Daniel Peron, AIC Claims Adjuster Erie Insurance P.O. Box 90086 Mechanicsburg, PA 17019-0086 Re: Erie Claim No.: 010171007344 Erie Insured: Joshua A. Parrish & Amanda L. Parrish Our Client: Janet Miller Loss Date: 1112812008 Dear Dan: Guy H. Brooks Direct Dial: 717.237.5384 Direct Fax: 717.260.1764 gbrooks@mwn.com Please find enclosed with this correspondence a General Release in the amount of $200,000, the figure we agreed upon to settle this matter. I am using the standard Erie release that has been used in previous Erie settlements. Pursuant to our previous conversations, I recognize that Erie is declining to issue a check because of the Medicare lien. In previous correspondence, we have offered to satisfy this lien pursuant to the statute and relevant case law. Let me restate our position that it is up to the beneficiary to satisfy the Medicare lien and that it is impermissible for Erie to intervene on Medicare's behalf or otherwise inject itself into the relationship. between Ms. Miller and Medicare. To the contrary, Erie owes its settlement of this third-party case to Ms. Miller, at which time Ms. Miller is obliged to repay medical benefits to Medicare within 60 days after payment is made. Should the lien not be satisfied, Erie's recourse is against Ms. Miller pursuant to its own indemnification language in the release. Once again, I thank you for working with me on this case in resolving the third-party claim. I am sure we will be speaking in the future. Very truly yours, McNEES WALLACE & NURICK LLC r J/? By Guy tErooks GHB:jlp Enclosure / www.mwn.com ALL-STATP LEGAL 800-222-0510 ED11 RECYCLED Ac?cj? i bi. 4 -b MR Erie Insurancee Branch Office 4901 Louise Drive • Rossmoyne Business Center P.O. Box 2013 • Mechanicsburg, PA 17055-0710 717.795.8200 Toll Free 1.800.382.1304 • Fax 717.795.2315 www.erieinsurance.com October 18, 2011 Guy H. Brooks, Esq. 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Re: ERIE Claim ERIE Insured: Date of Loss: Your Client: Dear Mr. Brooks: Kerry J. Ritchey, CPCU, AIC Vice President & Claims Manager #010171007344 Joshua A. Parrish 11/28/08 Janet E. Miller We acknowledge receipt of your October 7, 2011 correspondence and the General Release signed by Ms. Miller. Erie Insurance Exchange is unable to issue the $200,000.00 settlement draft as you request. You have been previously been advised of our company procedures which require the need to satisfy the Medicare/MSPRC lien related to the claim. Our options to accomplish this are limited. Option one requires your collection of a final demand notice from MSPRC. Once produced, Erie Insurance Exchange would issue a payment direct to MSPRC and the remaining funds to you and your client, Ms. Miller. The second option allows Erie Insurance Exchange to issue a check for $200,000.00 payable to Ms. Miller, your law firm, as well as MSPRC. We will simply await your response to these procedures of settlement. If they are considered unacceptable, we would assume that you will be filing a petition with the court to enforce a settlement. Sincerely, f Z)an Per n, Claims Adjuster Harrisburg Branch Office 1-866-600-2585 1-800-545-0408 (Fax) DP:ds 21249131.130C The ERIE is Above All in SERVICE" ter: ;?-- L ? ?, b. JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. : Docket No. LOW-() JOSHUA A. PARRISH, AMANDA L. PARRISH, ERIE INSURANCE EXCHANGE t/d/b/a ERIE INSURANCE and THE ERIE Defendants CERTIFICATE OF APPLICABLE INTEREST RATE I, Guy H. Brooks, certify that the Wall Street Journal prime rate in January of 2011 was 3.25 percent. - i ; ? ?'-- ?/) Guy H. rooks Dated: November 2, 2011 CERTIFICATE OF SERVICE The undersigned hereby certifies that on the 2nd day of November 2011, a true and correct copy of the foregoing document was served by first-class mail, postage prepaid, upon the following: Dan Peron, AIC Claims Adjuster Erie Insurance P.O. Box 90086 Mechanicsburg, PA 17019-0086 -?>l )-?J Guy H. Brooks Of Counsel for Plaintiff J J i F- Johnson, Duffle, Stewart & Weidner By: John A. Lucy, Esquire ERLA h.D C0Uhj-j-,I.D. No. 203948 jE'iN,S '(_ s''d1F; 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 jas@jdsw.com Attorneys for Defendants John A. Parrish, Amanda L. Parrish, Erie Insurance Exchange t/d/b/a Erie Insurance and The Erie JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION - LAW JOSHUA A. PARRISH, AMANDA L. PARRISH, ERIE INSURANCE EXCHANGE t/d/b/a NO. 2010-07327 ERIE INSURANCE and THE ERIE, Defendants PRAECIPE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please enter the appearance of John A. Lucy, Esquire, of Johnson, Duffie, Stewart & Weidner, P.C. as counsel for Defendants Joshua A. Parrish, Amanda L. Parrish, Erie Insurance Exchange t/d/b/a Erie Insurance and The Erie in the p4aWned action. JOHNS By: DATE: ` ., 9b, 3o? 1 , STF- CRT & WEIDNER Lucy, Esquire or ey I. D. No. 203948 0 Market Street P . Box 109 emoyne, PA 17043-0109 Telephone (717) 761-4540 Attorneys for Defendants 468979 22740-2888 CERTIFICATE OF SERVICE I HEREBY CERTIFY that I served a true and correct copy of the foregoing document upon all parties or counsel of record by depositing a copy of same in the United States Mail at Lemoyne, Pennsylvania, with first-class postage prepaid on the day of Qv , 2011, addressed to the following: Guy H. Brooks, Esquire McNees Wallace & Nurick, LLC 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 JOHNSON,,ZfUFFIEASTEWART & WEIDNER By: John y, Esquire Attor ey .D. No. 203948 30eloyne, ket Street P. ox 109 Le PA 17043-0109 Telephone (717) 761-4540 Attorneys for Defendants I.I1-4cD-CFFII;. 01" THE PROTHON0,TAPY Johnson, Duffle, Stewart & Weidner By: John A. Lucy, Esquire I.D. No. 203948 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 jas@jdsw.com 2011 NOY 21 AM 8: 4 f CUMBERLAND COUNTY P E Nth S Y LVA N Ihorneys for Defendants John A. Parrish, Amanda L. Parrish, Erie insurance Exchange t/d/b/a Erie Insurance and The Erie JANET C. MILLER, V. JOSHUA A. PARRISH, AMANDA L. PARRISH, ERIE INSURANCE EXCHANGE t/d/b/a ERIE INSURANCE and THE ERIE, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2010-07327 DEFENDANTS' REPLY TO PLAINTIFF'S AFFIDAVIT PURSUANT TO RULE 229.1 - SETTLEMENT FUNDS. FAILURE TO DELIVER. SANCTIONS AND NOW, come the Defendants by and through their counsel, Johnson, Duffie, Stewart & Weidner, P.C., and file the following Reply to Plaintiffs Affidavit Pursuant to Rule 229.1 - Settlement Funds. Failure to Deliver. Sanctions, and in support thereof state as follows: 1. It is believed, and therefore averred, that Plaintiffs counsel has filed the foregoing Affidavit Pursuant to Rule 229.1 in regards to settlement negotiations which took place with Erie Insurance Exchange (hereinafter "Erie") and namely, Daniel Peron of Erie. 2. It is believed, and therefore averred, that the parties discussed, and agreed to a settlement amount of $200,000.00 to settle the underlying personal injury claim of Janet C. Miller. 3. This matter was never commenced by Writ or Complaint prior to the Plaintiffs filing of the foregoing Affidavit Pursuant to Rule 229.1. 4. It is believed, and therefore averred, that the parties discussed that, although the Plaintiff settlement amount was proper under the circumstances, the Plaintiff had an outstanding Medicare lien which needed to be properly compromised with the terms of the settlement. (See, Correspondence between the parties dated October 18, 2011 attached hereto as Exhibit "A") 5. On or about October 7, 2011, counsel for the Plaintiff sent Daniel Peron, Claims Adjuster, a General Release, unilaterally signed by his client which was not provided by Erie. (See, Correspondence between parties dated October 7, 2011, attached hereto as Exhibit "B"). 6. It is clear that prior to unilaterally having his client sign this General Release, counsel for the Plaintiff was acutely aware that Erie declined to issue a check because of the outstanding Medicare lien and believed that the parties needed to compromise the lien. This was discussed well in advance of the Plaintiff signing the General Release. (See Exhibit "B") 7. As with any contract, it is essential to the enforceability of a settlement agreement that the minds of the parties should meet upon all terms, as well as the subject matter, of the agreement. Mazzella v. Koken, 739 A.2d 531 (Pa. 1999). 8. Although the parties had agreed on the settlement amount, it is clear that Erie Insurance never sent a General Release to Plaintiff's counsel for execution by his client and such release was proffered by the Plaintiff and unilaterally sent to Erie. (See Exhibit "B") 9. In Plaintiff's Affidavit, averment number 4, the Plaintiff references that there is no statutory or case authority supporting Erie Insurance's refusal to deliver the settlement proceeds. 10. Under the Medicare Secondary Payer Act (hereinafter referred to as "MSPA"), the United States may seek to recover its payment from any entity, including a beneficiary, provider, supplier, physician, attorney, State agency or private insurer that has receive a primary payment. 42 C.F.R. § 411.24 (g). 11. As such, any entity which does not compromise an existing Medicare lien is subject to those provisions and penalties under the statute, to include not only the Plaintiff, but Plaintiff's counsel, Defendants' counsel and Defendants' Insurance carrier. 12. Defendants do not seek to assert the right of the United States government regarding their potential claim, but seeks to assure that this lien is properly compromised thereby assuring that the United States can not seek redress against Defendants. 9. It is believed, and therefore averred, that Plaintiffs counsel would refer to the recent case of Zaleppa v. Seiweill, 9 A.2d 632 (Pa. Super. 2010), to support the argument that Erie cannot request that the existing lien be compromised as the indemnification language in the release is sufficient and the Defendants' can not assert the rights of a governmental entity. The Zaleppa matter, however, is easily distinguishable from the matter at hand and is equably not applicable. 10. As noted above, any agreement must be a meeting of the minds between the parties, and any party can request certain restrictions to, or increased breadth of, any proposed agreement. In the case at hand, it is clear that Erie made an explicit request that the Medicare lien be compromised prior to the issuance of the check and clearly before the Plaintiff entered into the General Release. 11. Through the course of settlement negotiations the parties, among themselves, may decide whether an agency responsible for administering Medicare or enforcing the MSPA should be paid directly, or indirectly, from the proceeds of the settlement. 12. As noted above, the case of Zaleppa is in reference to a judgment in which the defendants requested that the proceeds be paid to Medicare. 13. As more fully outlined above, the parties, in this case, discussed settlement and agreed upon a settlement amount, but clearly the Defendants requested certain conditions in regard to the settlement which were not agreed to by the Plaintiff. 14. Plaintiff's Affidavit of Settlement, and request for delivering of funds, as well as sanctions to include attorney's fees and interest is unfounded and not warranted in this matter. 15. As such, Defendant would request that Plaintiff, as a part of settlement negotiations, agree to the options outlined by Erie in its letter of October 18, 2011. (See Exhibit WHEREFORE, Defendant respectfully requests this Honorable Court to deny Plaintiff's Affidavit Pursuant to Rule 229.1 - Settlement Funds. Failure to Deliver. Sanctions. Respectfully submitted, JOHNSON,ZUFFIE, $TEWART &,WEIDNER By: John y, Esquire tto or y .D. No. 203948 301 et Street P. ox 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Attorneys for Defendants DATE: N1 ,J, X% %,6-ati 469138 22740-2888 EXHIBIT A rz M, Erie insurance' ftnCh Office ' 4901 Louise Drive • Rossmoyne Business Center • P.O. Box 2013 • McGhanicsburg• PA 17055-0710 717.795, 6200 TOO Free 1.600.3132.1304 • Fax 717, 795.2315 • www.erieinswance.com October 18, 2011 Guy H. Brooks, Esq. 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Kerry J. Ritchey. CPCU, AIC ViCo President 8 Cbms MweW l? _Cq rr Re: ERIE Claim //010171007344 ERIE Insured: Joshua A. Parrish Date of Loss: 11/28/08 Your Client: Janet E. Miller Dear' Mr. Brooks: . We acknowledge receipt of your October 7, 2011 correspondence and the General Release signed by Ms. Miller. Erie Insurance Exchange is unable to issue the $200,000.00 settlement draft as you request. You have.been previously been advised of our company procedures which require the need to satisfy the Medicare/MSPRC lien related to the claim. Our options to accomplish this are limited. Option one requires your collection of a final demand notice from MSPRC. Once produced, Erie Insurance Exchange.would issue a payment direct to MSPRC and the remaining fundsv you and your client, Ms-, Miller. The second option allows Erie Insurance Exchange to issue a check for $200,000.00 payable to Ms. Miller, your law firm, as well as MSPRC. We will, simply await your response to these procedures of settlement. If they are considered unacceptable, we would assuiric that you will be filing a petition with the court to enforce a settlement. Sincerely, Za)n"r4V_'-- Claims Adjuster Harrisburg Branch Office 1-866-600-2585 1-800-545-0408 (Fax) DP:ds 2124913 I.DOC The ERIE is Above Ai in $ERVICEs EXHIBIT B lot McNees Wallace & Nurick LLc 100 Pine Street • PO Box 1166 • Harrisburg, PA 17108-1166 Tel:. 717,232.8000 • Fax: 717.237,5300 October 7, 2011 Daniel Peron, AIC C{aims Adjuster Erie Insurance P.O. Boz 90086 Mechanicsburg,' PA 17019-0086 Re: Erie Claim No.: '010171007344 . Erie insured: Joshua A.. Parrish & Amanda L. Parrish Our Client: Janet Miller Loss Date:.1112812008 Dear Dan: Guy H. Brooks Direct Dial: 717.237.5384 Direct Fax: 717280.1764 gbrooks@mwn.com Pletise find enclosed with this correspondence a General Release in the am6unt-of $200,000, the. figure we agreed upon to settle this matter. I amusing the standard Erie release that has been used in previous Erie settlements. Pursuant to our previous conversations, I recognize that Erie is declining to issue a check because of the Medicare lien. In previous correspondence,. we have offered to satisfy this lien pursuant to the statute and relevant case law. Let me restate our position that it is up to the beneficiary to satisfy the Medicare lien and that it is impermissible, for Erie to intervene on. Medicare's behalf or otherwise inject itself into the. relationship between Ms. Miller and Medicare. To the contrary, Erie owes its settlement of this third-party case to Ms. Miller, at.. which time. Ms. Miller is obliged to repay medical benefits to Medicare within 60 days after payment is'made. Should the lien. not be satisfied, Erie's recourse is against Ms. Miller pursuant to its own indemnification language in the release. Once again, i-thank you for working with me on this case in resolving the third-party claim. I am sure we will be speaking in the future. Very truly yours, McNEES WALLACE & NURICK LLC By GHB:jIp Guy t.EBrooks .. Enclosure r VAMM tt.com HARRISBURG, PA .s LANCASTER.. PA • STATE COLLEGE. PA 0 HAZLETON. PA 0 COLUMBUS. Olt 0 WASNMfrMN: D.C CERTIFICATE OF SERVICE I HEREBY CERTIFY that I served a true and correct copy of the foregoing document upon all parties or counsel of record by depositing a copy of same in the United States Mail at Lemoyne, Pennsylvania, with first-class postage prepaid on the ;? I day of t4oi PwN'k ? , 2011, addressed to the following: Guy H. Brooks, Esquire McNees Wallace & Nurick, LLC 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 JOHNSON,,,WFFIE, ST?WART & WEIDNER =yttornI.D. Esquire No. 203948 treet 17043-0109 Telephone (717) 761-4540 Attorneys for Defendants P N I: Li McNEES WALLACE & NURICK LLC By: Guy H. Brooks Attorney ID No. 49672 100 Pine Street Harrisburg, PA 17108-1166 (717) 237-5384 (717) 237-5300 facsimile gbrooks -mwn.com FiL_ 'KD C0Urif 'Ej'flP3Y1_VAt IA Attomeys for Plaintiff JANET C. MILLER, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. Docket No. 10-7327 JOSHUA A. PARRISH, AMANDA L. PARRISH, ERIE INSURANCE EXCHANGE t/d/b/a ERIE INSURANCE and THE ERIE Defendants PRAECIPE TO DISCONTINUE Please mark the above-captioned proceeding discontinued, settled and ended. McNEES WALLACE & NURICK LLC `---r J By Guy . Brooks 100 ine Street P.O. Box 1166 Harrisburg, PA 17108 (717) 232-8000 Attorneys for Plaintiff Date: May 16, 2012 CERTIFICATE OF SERVICE The undersigned hereby certifies that on the 16th day of May 2012, a true and correct copy of the foregoing document was served by hand delivery upon the following: John A. Lucy, Esq. Johnson, Duffle, Stewart & Weidner 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109