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HomeMy WebLinkAbout2006-6544 MONTE SNAVELY, : IN THE COURT OF COMMON PLEAS OF PAMELA SNAVELY, : CUMBERLAND COUNTY, PENNSYLVANIA VICTORIA SNAVELY, : CHAD SNAVELY AND : ADAM SNAVELY, : PLAINTIFFS : : V. : : MICHAEL E. PANZA, : DEFENDANT : NO. 06-6544 CIVIL IN RE: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT BEFORE HESS, P.J., AND EBERT, J. ORDER OF COURT st AND NOW , this 31 day of January, 2011, upon consideration of Defendant Panza’s Motion for Summary Judgment, after argument and consideration of the briefs submitted by both parties, IT IS HEREBY ORDERED AND DIRECTED that Defendant’s Motion for DENIED. Summary Judgment is By the Court, M. L. Ebert, Jr., J. Dusan Bratic, Esquire Attorney for Plaintiffs Kevin D. Rauch, Esquire Attorney for Defendant MONTE SNAVELY, : IN THE COURT OF COMMON PLEAS OF PAMELA SNAVELY, : CUMBERLAND COUNTY, PENNSYLVANIA VICTORIA SNAVELY, : CHAD SNAVELY AND : ADAM SNAVELY, : PLAINTIFFS : : V. : : MICHAEL E. PANZA, : DEFENDANT : NO. 06-6544 CIVIL IN RE: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT BEFORE HESS, P. J., AND EBERT, J. OPINION AND ORDER OF COURT Ebert, J., January 31, 2011 - Procedural History Plaintiffs filed a Complaint on August 9, 2007, for claims related to a motor vehicle accident which occurred on or about November 10, 2004. On October 29, 2009, Defendant filed a Motion for Partial Summary Judgment to Preclude Monte, Pamela, Adam, and Chad Snavely from Recovering Non-Economic Damages because the Plaintiffs’ elected to have the limited tort option in their auto insurance. The Honorable Judge Guido granted Defendant’s Motion on February 23, 2010, and precluded Plaintiffs from receiving non-economic damages. On June 30, 2010, Defendant filed a Motion for Summary Judgment to dismiss Plaintiffs’ claims for punitive damages. Statement of Facts Plaintiffs Monte Snavely and Pamela Snavely are adult individuals residing at 164 Texaco Road, Mechanicsburg, Pennsylvania. They are the parents of Plaintiffs 1 Victoria Snavely, Chad Snavely, and Adam Snavely, who are all minor individuals 1 residing at the same address. Defendant is Michael Panza, an adult individual residing 2 at 4341 Carlisle Pike, Apartment C, Camp Hill, Pennsylvania. On or about November 10, 2004, at approximately 9:00 p.m., the parties were involved in an automobile accident in which Defendant ran into the back of Plaintiff’s car as they were driving on 3 Route 581 in Lemoyne Borough in Cumberland County, Pennsylvania. Plaintiff, Monte Snavely, was the driver of a 2004 Chevrolet Silverado, and Plaintiffs Pamela Snavely, Victoria Snavely, Chad Snavely, and Adam Snavely were all passengers. Defendant was driving a 1999 Cadillac Deville in the same lane of travel 4 as Plaintiffs and ran into the back of Plaintiffs’ car. Defendant left the scene of the accident before police arrived. The Defendant explained why he left the scene of the accident as follows: “… I was leaving because I am on the highway there, and to me it was dangerous and I wanted to get out of 5 there.” Defendant said that he did not answer the door when the police came to his residence on the night of the accident because he had the television on and did not know 6 someone was at the door. 7 On the day of the accident, Defendant left work at approximately 2:30 p.m. Between the time he left work and the time of the accident at approximately 9:00 p.m., Defendant visited the American Legion, the Dutch Club, and the Italian Club, all in 1 Plaintiff’s Complaint, filed Aug. 9, 2007, ¶ 1-2. 2 Plaintiff’s Complaint at ¶ 3. 3 Plaintiff’s Complaint at ¶ 4. 4 Plaintiff’s Complaint at ¶ 6. 5 Deposition of Defendant Michael E. Panza, Apr. 2, 2009, p. 8. 6 Dep. of Def., p. 9. 7 Dep. of Def., p. 5. 2 8 Steelton, Pennsylvania. Defendant admitted drinking at each of these clubs in the six hour period before the accident but said he could not remember the number of drinks or 9 the length of time over which he consumed them. Defendant was found guilty of violations of the Pennsylvania Motor Vehicle Code for Failing to Give Information and 10 Render Aid and for Failure to Drive Vehicle at a Safe Speed. Discussion I. Summary Judgment Standard Pursuant to Pa. C.S.A. 1035.2, after the relevant pleadings are closed, a party may move for summary judgment in two instances: (1) Whenever there is no genuine issue of any material fact as to a necessary element of the cause of action or defense which could be established by additional discovery or expert report, or (2) If, after the completion of discovery relevant to the motion, including the production of expert reports, an adverse party who will bear the burden of proof at trial has failed to produce evidence of facts essential to the cause of action or defense which in a jury trial would require the issues to be submitted to a jury. Pa. C.S.A. 1035.2. The Court may grant summary judgment only when the right to such judgment is clear and free from doubt. Sebast v. Kakouras, 915 A.2d 1147, 1153 (Pa. 2007). A Court shall enter judgment whenever there is no genuine issue of any material fact as to a necessary element of cause of action that could be established by additional discovery. Swords v. Harleysville Ins. Co., 883 A.2d 562, 566 (Pa. 2005). Summary judgment is meant to eliminate the waste of time and resources of both litigants and the 8 Dep. of Def., p. 12. 9 Dep. of Def., p. 13. 10 Dep. of Def., p. 15. 3 Courts in cases where a trial would simply be a useless formality. Liles v. Balmer, 567 A.2d 691, 692 (Pa. Super. 1989). In considering the merits of a motion for summary judgment, a Court views the record in the light most favorable to the non-moving party, and all doubts as to the existence of a genuine issue of material fact must be resolved against the moving party. Fine v. Checcio, 870 A.2d 850, 857 (Pa. 2005) (citing Jones v. SEPTA, 772 A.2d 435, 438 (Pa. 2001)). Considering the record in favor of the non-moving party, we cannot grant summary judgment because there are genuine issues of material fact involving the circumstances of the accident, as well as Defendant’s conduct before and after the accident upon which Plaintiffs base their claims for punitive damages. Specifically, Plaintiffs present statements from witness, Jason Shade, that 11 Defendant was driving erratically and weaving outside Defendant’s lane. Shade stated that he was “concerned about the way the driver of the Cadillac was driving” and 12 that he “thought he was going to run me off the road.” Defendant maintains that “there is no testimony that Mr. Panza was swerving or driving in an erratic, reckless or 13 outrageous manner at any point.” Plaintiffs allege that Defendant “reeked of alcohol, had slurring speech, was stumbling, and fled the scene of the accident when told police 14 were coming.” Defendant denies these allegations in his Answer to Plaintiffs’ complaint. There are questions of fact about Defendant’s activities prior to the accident, the manner of Defendant’s driving, and his conduct before and after the accident. For these reasons, we deny summary judgment and allow Plaintiffs to proceed to present 11 Affidavit of Jason Shade, Feb. 16, 2010, ¶ 5. 12 Affidavit of Jason Shade, Feb. 16, 2010, ¶ 5. 13 Defendant’s Motion for Summary Judgment, Jun. 30, 2010, ¶ 27. 14 Plaintiff’s Complaint, Aug. 9, 2007, ¶ 7. 4 their case for punitive damages. Equally important we cannot say that as a matter of law that the Plaintiffs are not entitled to pursue an action for punitive damages. II. Punitive Damages Pennsylvania has adopted the rule of punitive damages as set forth in the Restatement (Second) of Torts § 908 and the comments thereunder. See Feld v. Merriam, 485 A.2d 742 (1984). Section 908(1) provides that (1) Punitive damages are damages other than compensatory or nominal damages awarded against a person to punish him for his outrageous conduct and to deter him and others like him from similar conduct in the future. (2) Punitive damages may be awarded for conduct that is outrageous, because of the defendant’s evil motive or his reckless indifference to the rights of others. In assessing punitive damages, the trier of fact can properly consider the character of the defendant’s act, the nature and extent of the harm to the plaintiff that the defendant caused or intended to cause, and the wealth of the defendant. Restatement (Second) of Torts, Sec. 908. (Emphasis added) Comment c to that section states that “it is not essential to the recovery of punitive damages that the plaintiff should have suffered any harm, either pecuniary or physical.” Id. comment c. (Emphasis added) A. Punitive damages are not barred by Plaintiff’s option of Limited Tort Liability The Pennsylvania Vehicle Code requires that automobile insurers provide a full tort liability and a limited tort liability option for purchasers of automobile insurance. 74 Pa. C.S.A. § 1705. The limited tort option precludes the insured from seeking non- economic damages if they are involved in an accident except in certain circumstances. Insurance providers are required to inform customers of the following provision: 5 A. “Limited Tort” Option--The laws of the Commonwealth of Pennsylvania give you the right to choose a form of insurance that limits your right and the right of members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses, but not for pain and suffering or other nonmonetary damages unless the injuries suffered fall within the definition of “serious injury” as set forth in the policy or unless one of several other exceptions noted in the policy applies. 75 Pa.C.S.A. § 1705. When an individual chooses the limited tort option, that individual is limited to recovery of economic losses except in certain circumstances. The relevant portion of the statute provides that recovery is allowed as follows: (d) Limited tort alternative.-- Each person who elects the limited tort alternative remains eligible to seek compensation for economic loss sustained in a motor vehicle accident as the consequence of the fault of another person pursuant to applicable tort law. Unless the injury sustained is a serious injury, each person who is bound by the limited tort election shall be precluded from maintaining an action for any non-economic loss, except that: (1) An individual otherwise bound by the limited tort election who sustains damages in a motor vehicle accident as the consequence of the fault of another person may recover damages as if the individual damaged had elected the full tort alternative whenever the person at fault: (i) is convicted or accepts Accelerated Rehabilitative Disposition (ARD) for driving under the influence of alcohol or a controlled substance in that accident; 75 Pa.C.S.A. § 1705. (emphasis added). In this case it is clear that Plaintiffs may not proceed for non-economic damages 15 against Defendant. Plaintiffs have stated that no one sustained a serious injury. Defendant does not fall into the exception because he was not convicted of nor did he accept ARD for driving under the influence. 15 Plaintiffs’ Brief in Opposition to Defendant’s Motion for Partial Summary Judgment, Feb. 16, 2010, p. 3. 6 However, Plaintiff’s complaint also contained claims for punitive damages. Pennsylvania Supreme Court has noted that at least in medical malpractice cases, citing Pa.R.C.P. Rule 1042.72(a) that non-economic damages do not include amounts awarded for punitive damages. Vogelsberger v. Magee-Womens Hosp. of UPMC Health System, 903 A.2d 540 (Pa. Super. 2006). The court cited the rule which states: “A damage award for non-economic loss does not include amounts awarded for medical and other related expenses, loss of earnings or earning capacity, or punitive damages.” Id. at 554. Furthermore, the Pennsylvania Motor Vehicle Financial Responsibility Law defines a “non-economic” loss as “pain and suffering and other non-monetary detriment.” 75 Pa. C.S.A. § 1702. Punitive damages are not intended to compensate the victim for any non- economic loss such as pain and suffering, but instead are intended to punish the tortfeasor for outrageous conduct and to deter him or others from similar conduct. The purpose of civil damages awards is typically to compensate for injuries sustained. However, punitive damages are warranted when the conduct of the tortfeasor is so outrageous that it is necessary to impose punishment and deterrence through civil actions. The U.S. Court of Appeals, Third Circuit, has stated that “one function of punitive damages awards is to relieve the pressures on an overloaded system of criminal justice by providing a civil alternative to criminal prosecution of minor crimes.” Willow Inn Inc. v. Public Service Mutual Insurance Company, 399 F.3d 224, 236 (3d Cir. 2005). In this case Plaintiffs allege facts that Defendant’s conduct was outrageous and showed reckless indifference to others, but, by leaving the scene of the accident, 7 Defendant escaped any possibility of criminal charges being filed against him for driving under the influence because evidence of his intoxication had dissipated. Accordingly, he could not be convicted of Driving Under the Influence and the provisions of 75 Pa.C.S.A. §1705(d) now prevent Plaintiffs’ non-economic recovery. Plaintiffs argue that they did, in fact sustain “injury” and that Defendant only escaped DUI charges because 16 he left the scene of the accident when he was told police were on their way. Therefore, it is appropriate in this case for Plaintiffs to proceed in their claims for punitive damages based on Defendant’s conduct including his alleged Vehicle Code violations. B. Punitive damages may be awarded without an award of compensatory damages. Pennsylvania case law in general supports the position that punitive damages should not be awarded if the Plaintiff has not first proved actual damages. See Houston v. Texaco, Inc., 538 A.2d 502 (Pa.Super. 1988) (punitive damages cannot be recovered in the absence of a legally recognized injury); see also Sulecki v. Southeast National Bank, 516 A.2d 1217 (Pa. Super. 1986) (in order to recover punitive damages plaintiff must first prove compensatory damages). In a case which is now over 50 years old, the Pennsylvania Supreme Court has held that “it is well recognized that no award for punitive damages may be made where actual damage has not been suffered.” Hilbert v. Roth, 149 A.2d 648, 652 (Pa. 1959). These cases are factually different than the present case because Plaintiffs have presented evidence of actual damages. Unlike the cases above, Plaintiffs have 16 Plaintiff’s Answer in Opposition to Defendant’s Motion for Summary Judgment, Jul. 20, 2010, ¶ 8. 8 presented evidence of physical injuries and damage to property. In Houston, Plaintiffs had brought claims of negligently caused emotional distress but did not allege any physical injury as is required to recover on such a claim. As such, the facts did not support a cause of action. The Superior Court said that “plaintiff-appellees failed to show that defendant-appellant’s conduct was of such a nature that punitive damages were appropriate as punishment.” Houston, 538 A.2d at 505. Unlike Houston, where there was no physical injury, Plaintiffs in this case clearly 17 suffered injuries as a result of the accident. Plaintiff, Monte Snavely, missed two days 18 of work for which he was never compensated. In addition to physical injuries, Plaintiff Monte Snavely suffered damage to his new Chevrolet truck when Defendant’s car hit Plaintiff’s vehicle during the accident, ruining the bumper hitch and causing severe 19 damage to the frame. In this day and age, ordinary common sense establishes that at trial the Plaintiffs may introduce evidence of the inconvenience they suffered along with all of the other tribulations involved in settling an insurance claim such as obtaining estimates and completing forms. They attribute these “injuries” to the Defendant’s reckless indifference to their rights by driving while intoxicated. As noted in §908(1) of the Restatement (Second) of Torts, “the nature and extent of the harm to the Plaintiff that the Defendant caused” may be considered by the trier of fact in awarding punitive damages. The fact that compensation for some of these injuries was covered by first- party benefits has no bearing on whether Plaintiffs actually did sustain injury. 17 Plaintiff’s Complaint, ¶ 9. 18 Dep. of Monte Snavely, p. 45-46. 19 Deposition of Monte Snavely, Apr. 2, 2009, p. 42. 9 In Hilbert v. Roth, 149 A.2d 648 (Pa. 1959), the plaintiff had received a satisfaction of judgment from one of two defendant tortfeasors while the case was still pending against the second tortfeasor, which included claims of punitive damages. After judgment against the first tortfeasor, the plaintiff was barred from any further actions against the second tortfeasor. The Pennsylvania Supreme Court reasoned that the plaintiff is entitled to “but one satisfaction” and because the plaintiff had obtained an award of compensatory damages from the first tortfeasor, the second tortfeasor was discharged from liability. Because there was no longer the possibility of an award of compensatory damages from the second tortfeasor, and punitive damages were based upon such an award, the punitive damages claims were dismissed. It is important to note that Hilbert took place before the Uniform Contribution Among Tortfeasors Act, which allows a plaintiff to settle with one tortfeasor and still pursue damages against remaining tortfeasors. Baker v. AC&S, Inc., 729 A.2d 1140 (Pa.Super. 1999). The present case can be distinguished from Hilbert in a number of ways. First, it must be noted that the tortfeasor in Hilbert actually died in the accident, which was the basis of the litigation. Accordingly, the chief purpose of punitive damages; that is, to punish the living tortfeasor for his outrageous conduct, was absent in that case. Volume 4 of Restatement (Second) of Torts, which includes the damages section, was completed on May 19, 1978, some 18 years after Hilbert. It specifically states that “punitive damages are not awarded against the representatives of a deceased tortfeasor…” Restatement (Second) of Torts, Sec. 908(a) Comment a. Secondly, unlike Hilbert, Defendant has not in any way been discharged from liability. Here, Plaintiffs were precluded from seeking non-economic damages because of their election of the 10 limited tort liability option for insurance coverage. This has no bearing on Defendant’s actual liability and should not affect Plaintiffs’ rights to seek punitive damages based on Defendant’s conduct. Other Pennsylvania case law suggests that an award of compensatory damages is not necessary to support an award of punitive damages. In Kirkbride v. Lisbon Contractors, Inc., 555 A.2d 800 (Pa. 1989), the Pennsylvania Supreme Court discussed punitive damages at length and specifically addressed the relationship to compensatory damages. The Court stated “ . . . punitive damages must, by necessity, be related to the injury-producing cause of action. This does not mean, however, that specific compensatory damages must be awarded to sustain a punitive damage award.” Id. at 802. The Court stated that the uniqueness of its holding in Hilbert was due to the underlying action being dismissed, thereby extinguishing liability. The Court also acknowledged the Superior Court’s reasoning in Rhoads v. Heberling, 451 A.2d 1378 (Pa. Super. 1982) when the Superior Court distinguished between an independent and a derivative action for punitive damages in affirming a punitive damage award to two injured parties even though neither party received any compensatory damages. The Court noted that in Rhoads damages were not awarded; however, liability was determined on the facts and punitive damages were awarded predicated upon the finding of liability. Id. at 802. 11 The Court also discussed the Superior Court’s reasoning in Laniecki v. Polish Army Veterans Association: in Laniecki, the Superior Court affirmed a judgment of only punitive damages in a libel action when the jury believed that the plaintiff’s reputation had been satisfactorily reinstated, thereby negating any compensatory damages. In affirming the award, the Superior Court concluded that the plaintiff sustained a cause of action for compensatory damages even though he did not receive a monetary award for them. Id. at 802-803 Even though compensatory damages had not been awarded, punitive damages could be appropriate, the critical factor being the establishment of sufficient evidence to sustain the cause of action. Id. at 802-803. (referencing Lanieki v. Polish Army Veterans Association, 480 A.2d 1101 (Pa. Super. 1984). (emphasis added). Analyzing the reasoning of the above cases, we acknowledge that punitive damages are generally not appropriate if compensatory damages are not awarded. This is usually true because in most cases where compensatory damages are not awarded, the facts do not support an award of punitive damages. Most importantly, we note that in most of the cases where compensatory damages were not awarded, there was no physical harm to Plaintiffs. The present case is markedly different than the above cases because Plaintiffs sustained physical injuries and suffered damage to their vehicle. We also make the distinction between Plaintiffs receiving an award of compensatory damages and proving actual damages. Plaintiffs do not have a claim for compensatory damages simply because their pecuniary loss has been covered by insurance. It does not mean that they do not have other types of damages. The above case law supports our opinion that punitive damages may be appropriate without an award of compensatory damages if Plaintiffs prove the required conduct. The fact that 12 Plaintiffs are precluded from receiving compensatory damages from a jury award does not equate to not having actual damages or not being able to prove facts that support a cause of action. The underlying facts supporting punitive damages still exist and have not, as in other cases, been dismissed nor has Defendant in any way otherwise been excused from liability. He has merely, up to this point, escaped pecuniary liability because of Plaintiffs’ election of the limited tort liability option. The facts and circumstances of this case, including that Defendant was found guilty of two Vehicle Code violations in connection with the accident with Plaintiffs, that Defendant was allegedly drinking excessively during the six hours preceding the accident, that Defendant smashed into the rear of Plaintiffs’ vehicle, and that Defendant left the scene of the accident, still support a possible civil cause of action against Defendant. Defendant should not be permitted to escape all liability because of Plaintiff’s Limited Tort Liability coverage. It is a jury question whether Defendant’s actions rise to the level sufficient to support an award of punitive damages. Furthermore, the Pennsylvania Supreme Court has ruled that it is error to instruct the jury when a Plaintiff has chosen the limited tort option in exchange for lower insurance premiums because it unfairly prejudices the Plaintiff. The Court found that the fact that appellants paid lower insurance premiums in exchange for limited tort coverage was wholly irrelevant on the issue of the amount of damages required to compensate appellants if the jury determined that they had suffered non-economic damages. The severity of the non- economic injuries suffered by a Plaintiff and the corresponding level of damages simply bears no causal nexus whatsoever to the nature of the insurance option which that Plaintiff selected. Price v. Guy, 735 A.2d 668, 671 (Pa. 1999). The Court reasoned that 13 Just as a jury is more likely to attach liability to a Defendant covered by insurance who will not suffer financially from a Plaintiff’s verdict, so too is a jury less likely to award damages to a Plaintiff who it views as having bargained away its right to non-economic damages in exchange for having obtained less expensive insurance coverage. Id. at 672. We find the reasoning in Price supportive of our position that Plaintiffs’ selection of the limited tort option, and therefore their ability to seek non-economic damages, has no bearing on whether punitive damages are appropriate based on Defendant’s conduct. A jury may not award non-economic damages, but it may consider Defendant’s conduct and liability for Plaintiff’s actual damages suffered in its determination of punitive damages. Therefore, Plaintiffs have the right to proceed to trial by jury to determine Defendant’s liability and punitive damages. There is no Pennsylvania case law directly addressing the issue of whether a Plaintiff’s limited tort liability option prohibits a Plaintiff from pursuing only punitive damages. It is clear that Plaintiff may not pursue non-economic damages, but nowhere have punitive damages been classified as a subset of non-economic damages. Awards for punitive damages arise from the outrageous conduct of the tortfeasor and are not linked to compensation for physical or property damage. In this case, punitive damages may be derived from a jury’s consideration of Defendant’s conduct including alleged excessive alcohol consumption on the day of the accident, reckless driving which left him unable to control his vehicle, crashing into Plaintiffs’ vehicle causing them physical injuries and property damage, leaving the scene of the accident before police arrived, not answering his door when police came to his door, and his violation of two Vehicle Code violations. 14 Conclusion While Plaintiffs are precluded from recovery of non-economic damages by their choice of the limited tort option of insurance, they may still proceed to recover punitive damages. The statute barring non-economic damages is silent on the issue of punitive damages, and there is Pennsylvania case law supportive of our opinion that Plaintiffs may proceed for recovery of punitive damages in the absence of a compensatory damage award if Plaintiffs can prove that Defendant’s conduct meets the criteria for punitive damages. This case is not a simple fender-bender accident between two sober drivers. This Court fully recognizes, as does the Restatement (Second) of Torts, that “[P]unitive damages are not awarded for mere inadvertence, mistake, errors of judgment and the like, which constitute ordinary negligence.” Restatement (Second) of . Torts Sec. 908 Comment (b)There are significant questions of material fact concerning Defendant’s conduct which caused the accident and his conduct before and after the accident. Therefore, summary judgment is not appropriate in this case. Accordingly, the following Order shall be entered: st AND NOW , this 31 day of January, 2011, upon consideration of Defendant Panza’s Motion for Summary Judgment, after argument and consideration of the briefs submitted by both parties, IT IS HEREBY ORDERED AND DIRECTED that Defendant’s Motion for DENIED. Summary Judgment is By the Court, M. L. Ebert, Jr., J. 15 Dusan Bratic, Esquire Attorney for Plaintiffs Kevin D. Rauch, Esquire Attorney for Defendant 16