Articles Posted in Supreme Court of Pennsylvania

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Appellees Steven and Mary Szabo, owned real property where they operate a hair salon and skin care business. The property abutted Route 19 and Old Washington Road, was improved with a parking lot and commercial structure. Appellant, the Pennsylvania Department of Transportation (PennDOT or Department) developed a road expansion plan to connect Route 19 with Old Washington Road by means of an exit ramp that would run across a section of the Szabos land, identified in the declaration of taking as Parcel 5. The Department attempted to purchase the property from the Szabos; however, the parties could not come to an agreement. The issue this case presented for the Pennsylvania Supreme Court's review was whether a failure to file preliminary objections to a declaration of taking resulted in waiver under Section 306 of the Eminent Domain Code, 26 Pa.C.S. sections 101-1106 (Code). After careful review, the Court held that the declaration did not establish the extent or effect of the taking. Accordingly, the failure to file preliminary objections within thirty days of service did not result in waiver of the right to assert ownership and seek just compensation, and therefore the Court affirmed the decision of the Commonwealth Court to remand the matter for an evidentiary hearing. View "Szabo v. PennDOT" on Justia Law

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Kenneth Taggart appealed a superior court order affirming a trial court’s verdict on mortgage foreclosure in favor of Great Ajax Operating Partnership (“Great Ajax”). The Pennsylvania Supreme Court concluded Great Ajax or its predecessors failed to provide pre-foreclosure notice before initiating a second mortgage foreclosure action as required by the Loan Interest and Protection Law, 41 P.S. sections 101-605 (“Act 6”). In reaching this conclusion, the Court held the purposes of Act 6 were served by requiring each action in mortgage foreclosure to be preceded by a separate pre-foreclosure notice. A lender may not recycle a stale pre-foreclosure notice that it issued in connection with a prior complaint in mortgage foreclosure. Because Great Ajax failed to provide a separate pre-foreclosure notice before initiating the second action, the superior court's judgment was reversed. View "JP Morgan Chase Bank v. Taggart" on Justia Law

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This appeal required the Pennsylvania Supreme Court to determine whether a “household vehicle exclusion” contained in a motor vehicle insurance policy violated Section 1738 of the Motor Vehicle Financial Responsibility Law (“MVFRL”), 75 Pa.C.S. 1738, because the exclusion impermissibly acted as a de facto waiver of stacked uninsured and underinsured motorist (“UM” and “UIM,” respectively) coverages. In 2012, Appellant Brian Gallagher was riding his motorcycle when William Stouffer ran a stop sign in his pickup truck, colliding with Gallagher’s motorcycle, causing Gallagher to suffer severe injuries. At the time of the accident, Gallagher had two insurance policies with GEICO; one included $50,000 of UIM coverage, insured only Gallagher’s motorcycle; the second insured Gallagher’s two automobiles and provided for $100,000 of UIM coverage for each vehicle. Gallagher opted and paid for stacked UM and UIM coverage when purchasing both policies. Stouffer’s insurance coverage was insufficient to compensate Gallagher in full. Consequently, Gallagher filed claims with GEICO seeking stacked UIM benefits under both of his GEICO policies. GEICO paid Gallagher the $50,000 policy limits of UIM coverage available under the Motorcycle Policy, it denied his claim for stacked UIM benefits under the Automobile Policy. GEICO based its decision on a household vehicle exclusion found in an amendment to the Automobile Policy. The exclusion states as follows: “This coverage does not apply to bodily injury while occupying or from being struck by a vehicle owned or leased by you or a relative that is not insured for Underinsured Motorists Coverage under this policy.” According to Gallagher, by denying him stacked UIM coverage based upon the household vehicle exclusion, GEICO was depriving him of the stacked UIM coverage for which he paid. The Pennsylvania Supreme Court held the household vehicle exclusion violated the MVFRL, and vacated the Superior Court’s judgment, reversed the trial court’s order granting summary judgment in favor of GEICO, and remanded to the trial court for further proceedings. View "Gallagher v. GEICO" on Justia Law

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This case involved questions of how the attorney-client privilege should apply in the context of derivative litigation. The nonprofit corporations involved in this matter were the Pittsburgh History and Landmarks Foundation (“the Foundation”) and its subsidiary, the Landmarks Financial Corporation (“the Corporation”), which managed the Foundation’s endowment. Plaintiffs were five former members of the Boards of Trustees of the Foundation and the Corporation who alleged they were improperly and ineffectively removed from the Boards in an attempt to thwart their oversight of the Foundation’s president, whom they believed was engaging in actions that were improper and not in accord with the Foundation’s mission. The Foundation’s Board created a Governance Task Force to review various practices of the Foundation; the Task Force recommended that both Boards be reduced substantially in number. The Foundation Board approved this recommendation and removed all trustees then serving from both Boards; significantly smaller boards were elected and as a result of these consolidations, and Derivative Plaintiffs lost their seats on the Boards. In accord with standard procedures for bringing a derivative action adopted by the Pennsylvania Supreme Court in Cuker v. Mikalauskas, 692 A.2d 1042 (Pa. 1997). The Supreme Court rejected the Commonwealth Court’s adoption of a qualified attorney-client privilege as set forth in Garner v. Wolfinbarger, 430 F.2d 1093 (5th Cir. 1970), which the Supreme Court viewed as inconsistent with prior Pennsylvania caselaw emphasizing predictability in the application of the attorney-client privilege. However, the Commonwealth Court’s decision not to apply the fiduciary or co-client exceptions to the attorney-client privilege under the facts of this case was affirmed. The matter was remanded for further al court and the Commonwealth Court and remanded the matter to the trial court for further proceedings. View "Pgh History v. Ziegler" on Justia Law

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In this appeal, the issue presented to the Pennsylvania Supreme Court was whether an exception to the Political Subdivision Tort Claims Act applied ― the real property exception to governmental immunity ― and, in particular, whether the absence of padding on a gym wall, into which a student ran during gym class, causing injury, fell within the exception. In 2012, then-nine-year-old Jarrett Brewington ran in a relay race during gym class at Walter G. Smith Elementary School in Philadelphia. While Jarrett was running, he tripped and fell, causing him to propel into the wall at the end of the gym, hit and cut his head, and lose consciousness. No padding covered the gym wall, which was made of concrete. Jarrett was later diagnosed with a concussion, was absent from school for one to two months after the incident, and continued experiencing headaches and memory problems years later. In 2013, Jarrett’s mother, Syeta Brewington, brought an action against Walter G. Smith Elementary School and the School District of Philadelphia (collectively, the “School”), alleging Jarrett’s injuries occurred because of a defective and dangerous condition of the premises, namely, the concrete gym wall, and that the School was negligent in failing to install padded safety mats to cushion the wall. In response, the School filed, inter alia, a motion for summary judgment, raising the defense of governmental immunity, and claiming that the real property exception to governmental immunity under the Act did not apply. The Pennsylvania Supreme Court found the lack of padding of a gym wall could constitute negligence in the care, custody, and control of real property, and, thus, fell within the Act’s real estate exception. View "Brewington v. Phila. Sch. Dist." on Justia Law

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This appeal presented an issue of whether a workers’ compensation insurance carrier could bring a third-party action against an alleged tortfeasor on behalf of an injured employee to recoup the amount paid in workers’ compensation benefits where the employee did not independently sue the tortfeasor, did not join in the insurer’s action, and did not assign her cause of action to the insurer. In 2013, Chunli Chen was standing in the parking lot of Thrifty Rental Car when she was struck by a rental vehicle operated by Kafumba Kamara. When the accident occurred, Chen was in the course of her employment with Reliance Sourcing, Inc., which maintained workers’ compensation coverage through The Hartford Insurance Group (“Appellee” or “Insurer”). Insurer had paid $59,424.71 in medical and wage benefits to Chen pursuant to her employer’s workers’ compensation insurance policy. Chen did not seek to recover damages for her injuries by filing an action against Kamara and/or Thrifty Rental Car (collectively referred to herein as “Appellants” or “Tortfeasors”) and did not assign her cause of action against Tortfeasors to Insurer. In 2015, when the two-year statute of limitations was about to expire on Chen’s cause of action, Insurer sought to effectuate its subrogation right under Section 319 of the Workers’ Compensation Act (“WCA”) by filing a praecipe for a writ of summons against Tortfeasors. “Reaffirming the well-settled proposition that the right of action against the tortfeasor remains in the injured employee,” the Pennsylvania Supreme Court held that, unless the injured employee assigns her cause of action or voluntarily joins the litigation as a party plaintiff, the insurer may not enforce its statutory right to subrogation by filing an action directly against the tortfeasor. Accordingly, the Supreme Court vacated the Superior Court’s judgment and reinstated that of the trial court, which sustained the preliminary objections filed by the tortfeasor and dismissed the insurer’s complaint with prejudice. View "Hartford Ins. Grp. v. Kamara" on Justia Law

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The Pennsylvania Supreme Court granted discretionary review in this matter to determine whether an employer has a legal duty to use reasonable care to safeguard its employees’ sensitive personal information that the employer stores on an internet-accessible computer system. Barbara Dittman, individually and on behalf of all others similarly situated (collectively, Employees), filed the operative class action complaint in this matter against UPMC d/b/a the University of Pittsburgh Medical Center and UPMC McKeesport (collectively, UPMC), alleging that a data breach had occurred through which the personal and financial information, including names, birth dates, social security numbers, addresses, tax forms, and bank account information of all 62,000 UPMC employees and former employees was accessed and stolen from UPMC’s computer systems. Employees further alleged that the stolen data, which consisted of information UPMC required Employees to provide as a condition of their employment, was used to file fraudulent tax returns on behalf of the victimized Employees, resulting in actual damages. Employees asserted a negligence claim and breach of implied contract claim against UPMC. The Supreme Court held an employer has a legal duty to exercise reasonable care to safeguard its employees’ sensitive personal information stored by the employer on an internet- accessible computer system. Furthermore, the Court held that, under Pennsylvania’s economic loss doctrine, recovery for purely pecuniary damages is permissible under a negligence theory provided that the plaintiff can establish the defendant’s breach of a legal duty arising under common law that is independent of any duty assumed pursuant to contract. As the Superior Court came to the opposite conclusions, the Supreme Court vacated its judgment. View "Dittman v. UPMC" on Justia Law

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In this premises liability case, John Stapas sued Giant Eagle and related entities (collectively Giant Eagle) for injuries he sustained at a GetGo convenience store. At the time of the incident, Stapas was 17 years old and worked full-time as a busboy and dishwasher at a restaurant, earning $8.25 per hour plus $14.00-$20.00 per shift in tips. In 2007, Stapas went to GetGo after his restaurant shift. At GetGo, he was talking to his friend, Crystal Stogden, who worked the night shift there. Minutes after Stapas arrived, a customer exiting the store held the door open for Brandon McCallister to enter. McCallister had been banned from patronizing that GetGo location. McCallister, who appeared intoxicated, started arguing with Stogden about his ban. Stapas was not initially involved in the argument. After about one minute, Stapas intervened to attempt to diffuse the argument and protect Stogden and another female employee, LaToya Stevens. Eventually, Stapas, McCallister, Stogden, and Stevens exited the store into the parking lot area. Outside the store, McCallister’s friend was waiting for him. Stapas told Stogden to get back inside the store, and Stevens remained outside. McCallister continued screaming at the employees as Stapas followed him to his vehicle, insisting that he leave. As they approached McCallister’s car, McCallister initiated a physical fight with Stapas. During the fight, McCallister pulled out a gun, which he had concealed on his person, and shot Stapas four times. Stapas missed six weeks of work while recovering from the injuries, and he continued to have daily stomach pain from the shooting. In this appeal by allowance, we consider whether Giant Eagle was required to object to the jury’s verdict awarding future lost wages to preserve its challenge to the verdict, which Giant Eagle labeled as a weight of the evidence challenge in its post-trial motion. The Pennsylvania Supreme Court concluded that an objection to a jury’s verdict premised on trial errors, correctable before the jury is discharged, must be raised before the jury is discharged. Accordingly, the Court reversed the Superior Court’s order awarding Giant Eagle a new trial on damages. View "Stapas. v. Giant Eagle" on Justia Law

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The Pennsylvania Supreme Court granted discretionary review to address two issues associated with workers’ compensation claims by firefighters suffering from cancer. First, the Court had to determine the evidentiary requirements for a claimant to demonstrate that he or she has an “occupational disease,” as that term is defined in Section 108(r) of the Workers’ Compensation Act (the “Act”). Second, the Court had to decide whether epidemiological evidence may be used by an employer to rebut the evidentiary presumption that the claimant’s cancer is compensable as set forth in Section 301(f) of the Act. With respect to the first issue, the Supreme Court concluded that pursuant to Section 108(r), the claimant has an initial burden to establish that his or her cancer is a type of cancer that is capable of being caused by exposure to a known IARC Group 1 carcinogen. With respect to the second, the Court concluded that epidemiological evidence was not sufficient to rebut the evidentiary presumption under Section 301(f). View "City of Phila. FD v. WCAB; Appeal of: Sladek, S." on Justia Law

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Sometime in 2001, Nancy Nicolaou was bitten by a tick on her left ankle, after which she developed a rash and experienced numbness and tingling in her left toe, fatigue, and lower back pain. This appeal presented the issue of whether Appellants Nancy and Nicholas Nicolaou satisfied the discovery rule so as to toll the running of the statute of limitations on their medical malpractice action filed against Appellee health care providers for failing to diagnose and treat Mrs. Nicolaou’s Lyme disease. The trial court granted summary judgment in favor of appellees, deeming appellants’ action time-barred. The Superior Court affirmed, holding that the discovery rule did not toll the statute of limitations because, as a matter of law, appellants failed to establish that they pursued their action with reasonable diligence. The Pennsylvania Supreme Court held summary judgment was granted improperly because the determination of whether appellants acted with due diligence under the circumstances presented was one of fact for a jury to decide. View "Nicolaou v. Martin" on Justia Law