HomeMy WebLinkAbout2009-2379 Civil
ECSM UTILITY CONTRACTORS, : IN THE COURT OF COMMON PLEAS OF
INC., : CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFF :
:
V. :
:
THOSE CERTAIN UNDERWRITERS AT:
LLOYD’S, LONDON; C.A. WEBER :
AGENCY, INC., AND : CONSOLIDATED
STEVE HARTLAUB, :
DEFENDANTS : 09-2379 CIVIL TERM
----------------------------------------------------------------------------------------
ECSM UTILITY CONTRACTORS, : IN THE COURT OF COMMON PLEAS OF
INC., : CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFF :
:
V. :
:
SELECTIVE INSURANCE GROUP, :
INC.; SELECTIVE INSURANCE :
COMPANY OF AMERICA; SELECTIVE :
WAY INSURANCE COMPANY; :
CINCINNATI FINANCIAL :
CORPORATION; THE CINCINNATI :
INSURANCE COMPANY; C.A. WEBER :
AGENCY, INC.; AND : CONSOLIDATED
STEVEN HARTLAUB :
DEFENDANTS : 10-2112 CIVIL TERM
IN RE: MEMORANDUMOPINION AND ORDER OF COURT
Masland, J., August 2, 2010:--
Before the court are consolidated Motions to Bifurcate and Stay Plaintiff's
Bad Faith Claims filed by defendants, Selective Insurance Group, Inc., Selective
Insurance Company of America, Selective Way Insurance Company, Cincinnati
Financial Corporation, the Cincinnati Insurance Company, and Those Certain
Underwriters at Lloyd's of London. Following briefing by the parties and oral
argument, defendants' motions are granted in part.
09-2379 CIVIL TERM
10-2112 CIVIL TERM
In this matter, plaintiff is suing the defendant insurers for, in relevant part,
breach of contract and bad faith denial of insurance coverage. Defendants'
argue the interests of judicial economy will be served by bifurcating or staying
plaintiff's pursuit of its bad faith claim. Under the circumstances, the court
agrees.
First, the court agrees that resolution of plaintiff's contract claim in
defendants' favor could eliminate the need for consideration of the bad faith
claims. Where an insurer has no duty to defend a claim, an insured cannot
maintain an action for bad faith denial of coverage. Frog, Switch & Mfg. Co. v.
Travelers Ins. Co., 193 F.3d 742, 751 n.9 (3d. Cir. 1999); but see March v.
Paradise Mut. Ins. Co., 646 A.2d 1254, 1256 (Pa. Super. 1994) (holding statutory
bad faith claims not dependent on success on merits of contract case where
defendant insurer defeated insured's contract claim by asserting the expiration of
the statute of limitations).
Second, defendants believe the contract claim is ripe for resolution via
summary judgment. Thus, if defendants are correct, the entire matter may be
resolved expeditiously without resort to a jury trial and onerous discovery
regarding the bad faith claims.
Accordingly, the court grants defendants' motion in part and stays
plaintiff's statutory bad faith claims pending the resolution of defendants' motions
for summary judgment. However, should the court deny these motions, the stay
will be lifted and plaintiff will be able to pursue its bad faith claims in anticipation
-2-
09-2379 CIVIL TERM
10-2112 CIVIL TERM
of a jury trial on the contract claims, which, if successful, will be immediately
followed by a non-jury trial of the bad faith claims.
Finally, in light of plaintiff's concerns regarding protracted litigation caused
by this stay, the court directs defendants to file their motions for summary
judgment within 30 days of the entry of this order. Accordingly, the court enters
the following order:
ORDER OF COURT
AND NOW, this day of August, 2010, upon consideration of
defendants’ motions to bifurcate and stay plaintiff’s bad faith claims, plaintiff’s response
thereto and argument thereon, the court directs that defendants file their respective
motions for summary judgment within 30 days of this order. Pending disposition of the
IS STAYED.
motions for summary judgment, action on plaintiff’s bad faith claims
By the Court,
Albert H. Masland, J.
Donald R. Reavey, Esquire
2933 North Front Street
Harrisburg, PA 17110
Adam M. Barnes, Esquire
707 Grant Street Suite 1400 Gulf Tower
Pittsburgh, PA 15219
Christian P. Labletta, Esquire
One West First Avenue, Suite 450
Conshohocken, PA 19428
-3-
09-2379 CIVIL TERM
10-2112 CIVIL TERM
Charles E. Haddick, Jr., Esquire
1200 Camp Hill Bypass, Suite 205
Camp Hill, PA 17011-3700
George E. Saba, Jr., Esquire
5100 Tilghman Street
Suite 230
Allentown, PA 18104
:sal
-4-
ECSM UTILITY CONTRACTORS, : IN THE COURT OF COMMON PLEAS OF
INC., : CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFF :
:
V. :
:
THOSE CERTAIN UNDERWRITERS AT:
LLOYD’S, LONDON; C.A. WEBER :
AGENCY, INC., AND : CONSOLIDATED
STEVE HARTLAUB, :
DEFENDANTS : 09-2379 CIVIL TERM
----------------------------------------------------------------------------------------
ECSM UTILITY CONTRACTORS, : IN THE COURT OF COMMON PLEAS OF
INC., : CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFF :
:
V. :
:
SELECTIVE INSURANCE GROUP, :
INC.; SELECTIVE INSURANCE :
COMPANY OF AMERICA; SELECTIVE :
WAY INSURANCE COMPANY; :
CINCINNATI FINANCIAL :
CORPORATION; THE CINCINNATI :
INSURANCE COMPANY; C.A. WEBER :
AGENCY, INC.; AND : CONSOLIDATED
STEVEN HARTLAUB :
DEFENDANTS : 10-2112 CIVIL TERM
ORDER OF COURT
AND NOW, this day of August, 2010, upon consideration of
defendants’ motions to bifurcate and stay plaintiff’s bad faith claims, plaintiff’s response
thereto and argument thereon, the court directs that defendants file their respective
09-2379 CIVIL TERM
10-2112 CIVIL TERM
motions for summary judgment within 30 days of this order. Pending disposition of the
IS STAYED.
motions for summary judgment, action on plaintiff’s bad faith claims
By the Court,
Albert H. Masland, J.
Donald R. Reavey, Esquire
2933 North Front Street
Harrisburg, PA 17110
Adam M. Barnes, Esquire
707 Grant Street Suite 1400 Gulf Tower
Pittsburgh, PA 15219
Christian P. Labletta, Esquire
One West First Avenue, Suite 450
Conshohocken, PA 19428
Charles E. Haddick, Jr., Esquire
1200 Camp Hill Bypass, Suite 205
Camp Hill, PA 17011-3700
George E. Saba, Jr., Esquire
5100 Tilghman Street
Suite 230
Allentown, PA 18104
:sal
-6-