A Summary Of Recent Pennsylvania Appellate Decisions

Mutual Automobile Insurance Co. v. Foster No. 2007they need only show that (1) they are suffering
MAP 2003 (December 30, 2005)from an objectively verifiable physical injury, and (2)
Holding: An insurer may deny uninsured motoristthe injury arose in the course of employment and
benefits to an insured claimant who fails to reportwas related thereto. Justice Saylor filed a concurring
the accident to the police or other governmentalopinion, and Justice Newman filed a dissenting opinion.
authority as required by the policy and the Motor►Supersedeas Fund Reimbursement
Vehicle Financial Responsibility Law, 75 Pa.C.S.♦ Comm., Dept. of Labor & Industry v.
§§ 1701-1799.7. Justice Saylor filed aWorkers' Compensation Appeal Board (Exel Logistics)
concurring opinion, concluding that regardless of theNo. 37 WAP 2004 (December 28, 2005)
language of the MVFRL, a carrier may include a policeHolding: An employer is not entitled to Supersedeas
notification provision in the terms of an autoFund reimbursement for compensation and medical
insurance policy. Justice Baer filed a dissenting opinion,bills paid while a Petition for Forfeiture is pending
joined by Justice Castille, in which he characterizedbecause the petition for forfeiture was pursuant to
the provision at issue as a "technical escape hatch by§ 306(f.1)(8), and not § 413 or § 430
which to deny coverage in the absence of prejudice."of the Act. Justice Newman filed a dissenting opinion,
Justice Nigro did not participate in the decision of thein which Justices Castille and Baer joined.
case.1.4. NEW RULES OF CIVIL PROCEDURE
1.2. CIVIL PROCEDURE►Disclosure of Legal Malpractice Insurance
► Service of ProcessCoverage
♦ McCreesh v. City of Philadelphia No. 31 EAP♦ Rule of Professional Conduct 1.4(c)
2005 (December 28, 2005)Effective July 1, 2006, lawyers in private practice are
Holding: After an action has been commenced, arequired to notify their clients if they do not have
plaintiff must provide notice of the action to theprofessional liability insurance of at least $100,000 per
defendant in order for the purpose of the statute ofoccurrence and $300,000 in the aggregate per year,
limitation to be fulfilled. A complaint should, therefore,subject to commercially reasonable deductibles. The
only be dismissed in those cases in which the plaintiffRule also specifies the language of the required
has demonstrated an intent to stall the judicialdisclosures, and mandates that attorneys maintain a
machinery or when plaintiff's failure to comply withrecord of the disclosures for six years after
the Rules of Civil Procedure has prejudiced thetermination of the representation of a client.
defendant. Justice Newman filed a dissenting opinion.►Consumer Credit Transactions
Justice Eakin also filed a dissenting opinion, joined by♦ New Rules of Civil Procedure 1326 to 1331
Justice Nigro.Effective February 1, 2006, the Court has
The Supreme Court has yet again revisited itspromulgated Rules of Civil Procedure governing
decision in Lamp v. Heyman, 366 A.2d 882 (Pa. 1976).proceedings to compel arbitration and to confirm an
In McCreesh, the Court now holds that a plaintiffarbitration award in a claim arising from a consumer
need not strictly comply with the Rules bycredit transaction.
repeatedly reissuing a writ of summons; instead, the2. SUPERIOR COURT OF PENNSYLVANIA
Court looks to the good faith efforts of a plaintiff to2.1. ►Defamation - Conditional Privilege
effectuate service, including considering whether a♦ Moore v. Cobb-Nettleton
defendant has actual notice of the litigation and is not2005 PA Super 426 (December 21, 2005) Holding: A
prejudiced by the lack of strict compliance with thesocial worker, who makes professional disclosures
Rules of Civil Procedure. The facts here - in whichrequired by Pennsylvania law, is entitled to a
plaintiff attempted to serve the writ by certified mailconditional privilege in a defamation lawsuit.
in clear violation of the Rules - are certain to2.2. ►Learned Intermediary Doctrine
generate further litigation. The true food for thought♦ Lineberger v. Wyeth
- and further litigation - appears in Justice Eakin's2005 Westlaw 3547682 (Pa. Super., December 21,
dissent, in which he states:2005) Holding: In a pharmaceutical failure to warn
The "majority has developed a new rule holding a trialcase, the plaintiff must establish both a duty to warn
court may only dismiss a case where there isand a failure to warn. The plaintiff must also show
ineffective service in two distinct situations: (1) wherethat, had the defendant issued a proper warning to
the plaintiff's actions evidence an intent to stall thethe physician (the learned intermediary), the learned
judicial machinery, or (2) where the plaintiff's failure tointermediary would have altered his or her behavior,
comply with the Rules of Civil Procedure has actuallyi.e., would not have prescribed the drug, and the
prejudiced the defendant. . . .The majority goes soinjury would have been avoided.
far as to suggest that without prejudice, actualThis is an unpublished opinion, although counsel for
notice itself, much less proper service, may beWyeth has stated that he will request that the Court
unnecessary."publish the opinion.
1.3. WORKERS' COMPENSATION3. COMMONWEALTH COURT OF PENNSYLVANIA
►Impairment Rating Evaluations (IREs)3.1. ►Workers' Compensation - Hepatitis C
♦ Gardner v. Workers' Compensation Appeal♦ City of Philadelphia v. Workers'
Board No. 14 EAP 2004 (December 28, 2005)Compensation Appeal Board (Sites) No. 1410 C.D.
Holding: An employer/workers' compensation carrier2005 (December 21, 2005)
must request that a workers' compensation claimantHolding: Hepatitis C may be deemed an occupational
submit to an Impairment Rating Evaluation withindisease even if the condition was not specifically
sixty (60) days from the date that the claimantidentified as an occupational disease until after the
receives, or comes into possession of 104 weeks ofclaimant's diagnosis.
total disability benefits in order to obtain the3.2. ►Workers' Compensation - Suspension
automatic relief under 77 P.S. § 511.2(2). If anBad Faith
employer fails to request an IRE within this time♦ Virgo v. Workers' Compensation Appeal
period, it may still request an IRE at a later dateBoard (County of Lehigh-Cedarbrook) No. 1167 C.D.
pursuant to 77 P.S. § 511.2(6), but must utilize2005 (December 22, 2005)
the traditional administrative process in order toHolding: An employer is entitled to a suspension of
modify a claimant's disability status. Justice Nigro filedbenefits when an employee is discharged from
a concurring opinion, and Justice Newman filed aemployment because of "bad faith" in carrying out
dissenting opinion.her job responsibilities. This is a classic example of
Workers' compensation practitioners who had beenbad facts making bad law (at least for workers'
awaiting the decision in Gardner now know that ancompensation claimants). One of the most common
employer/insurer can request an IRE up to two timesquestions raised by injured workers is what happens
within any twelve-month period. The only limitation onif they return to work at light duty and are then
an employer's right to an IRE is that the employerfired because of allegedly unsatisfactory job
cannot avail itself of the automatic relief under theperformance. This case answers the questions,
Act if the exam is not requested within 60 days ofholding that workers' compensation benefits may be
the employee's receipt of 104 weeks of benefits. Insuspended under those circumstances. Of course, in
reality, this means that a workers' compensationthis case, the employee did not have a "clean"
carrier is now able to reduce virtually every claimantrecord, and it was easy for the Court to uphold the
to partial disability status at any time after thesuspension. What happens, however, when the
claimant has received two years of benefits.unsatisfactory performance occurs only after the
Although a claimant can try to defend against aemployee is at light duty and, as employees
modification petition based upon an IRE, the fact thatfrequently claim, their firing is a pretext because the
literally no claimant can meet the statute'semployer only wants them to work at full duty?
requirement that he or she have a 50 percentTime will tell.
impairment means that any defenses will, at best,SUPERIOR COURT OF NEW JERSEY, APPELLATE
delay the inevitable.DIVISION OPINION
►Physical Versus Mental Injuries► Doe v. XYC Corp.
♦ Panyko v. Workers' Compensation AppealNo. A-2909-04T2 (December 27, 2005)
Board No. 37 WAP 2004 (December 28, 2005)Holding: An employer on notice that one of its
Holding: A claimant who suffers a purely physicalemployees is using a workplace computer to access
injury, such as a heart attack, because of a psychicpornography, possibly child pornography, has a duty
reaction to a working condition, is not required toto investigate the employee's activities and to take
establish that the working condition was abnormal.prompt and effective action to stop the unauthorized
Thus, claimants allegedly suffering from physicalactivity, lest it result in harm to innocent third parties.
injuries are not required to show that their injuriesNo privacy interest of the employee stands in the
are the result of abnormal working conditions. Rather,way of the duty on the part of the employer.