Schrock v. Albert Einstein Medical Center
Schrock v. Albert Einstein Medical Center
Opinion of the Court
OPINION OF THE COURT
The issues raised by this appeal are: 1) whether Superior Court erred in applying revised Rule 238 (Pa.R.Civ.Proc. Rule 238, Damages for Delay in an Action for Bodily Injury, Death or Property Damage, effective Nov. 7, 1988) to a case in which delay damages had been determined prior to the effective date of the revised Rule and pursuant to this Court’s holding in Craig v. Magee Memorial Rehabilitation Center, 512 Pa. 60, 515 A.2d 1350 (1986); and 2) whether it was error to assess delay damages against the appellant, Albert Einstein Medical Center, Daroff Division, where the trial court specifically found that appellant was not at fault for causing the delay of trial.
Appellee filed a petition for delay damages, pursuant to former Rule 238 and Craig v. Magee Memorial Rehabilitation Center, supra, and requested that the verdict be molded by the addition of $11,562 delay damages. The trial court determined that neither appellee nor appellant had been responsible for the delay of trial, and granted appellee’s petition, finding that former Rule 238 and Craig required that delay damages be assessed where the verdict exceeds the final settlement offer by 125% and where the
We granted appellant’s petition for allowance of appeal, and we now affirm.
Revised Rule 238 provides in relevant part as follows: (f) This rule shall apply to actions pending on or after the effective date of this rule in which damages for delay have not been determined.
Pa.R.Civ.Proc. Rule 238(f). The explanatory comment to the Rule states that “the rule applies to pending as well as future actions but not to pending actions in which the damages for delay have been determined under the provisions and procedures of the Craig case. Once damages for delay have been determined under Craig, those proceedings are final and are not to be reopened under this rule.”
In interpreting this provision of revised Rule 238, Superi- or Court has applied the Rule to all actions in which the issue of delay damages has been preserved and not finally determined and which are pending at the trial level or on appeal at the time of its effective date. See, e.g., Ceresini v. Valley View Trailer Park, 380 Pa.Super. 416, 552 A.2d 258 (1988). Commonwealth Court, on the other hand, has held that once delay damages have been determined under Craig, those proceedings are final and are not to be reopened under revised Rule 238. See, e.g., Knudsen v. Delaware County Regional Water, 121 Pa.Commw. 549, 551 A.2d 358 (1988).
With regard to appellant’s assertion that no delay damages can be assessed where the defendant is free from fault in the delay of trial, we must emphasize that the purpose of delay damages is to alleviate court congestion by promoting earlier settlement of claims. Laudenberger v. Port Authority of Allegheny County, 496 Pa. 52, 436 A.2d 147 (1981). The purpose in no way is to punish a defendant.
As cogently noted by the Honorable Lois G. Forer herein:
Obviously, any verdict speaks nunc pro tunc, that is, it awards damages at the time of trial for injuries that occurred many years before. If the court system was able to provide trials within a reasonable period of time, most successful plaintiffs would receive recoveries at least three to four years earlier than is now possible and would have the use of that money for that period of time. Correlatively, the defendants have had the use of money properly belonging to the plaintiffs for a period on the average of three to four years.
It is the opinion of this court that the mere fact that a defendant is not at fault in causing the delay in a case does not automatically relieve the defendant from being assessed delay damages under Rule 238. Equally as important to the analysis which must be made by the trial court is the responsibility of the plaintiff in causing delay. In a situation in which the plaintiff is partially or totally at fault, the assessment of delay damages may very well not be warranted. However, when both parties are blameless it would be unreasonable and unjust to deny delay damages. Fundamental fairness would require in the opinion of this Court, that the plaintiffs receive interest on what is essentially their money for the period that it is held by the defendants who, of course, have had the use of that money.
Opinion of the Court at 5-6 (May 15, 1987) (emphasis added).
The defendant who does not make an early and adequate settlement offer seriously impedes the objectives of our Rule on delay damages. Thus, it is irrelevant whether that defendant subsequently delays the progress of the litigation when the trial court assesses delay damages. The harm has already been done by the failure of the defendant to
For the foregoing reasons, the order of the Superior Court affirming the award of delay damages entered by the Court of Common Pleas of Philadelphia County is hereby affirmed.
. Appellant also challenges the constitutionality of revised Rule 238 and the trial court’s finding that appellee, Joseph R. Schrock, did not cause the delay of trial. Appellant has waived its constitutional challenge herein by not raising this issue at the time that the trial court conducted its hearing pursuant to the mandate of Craig, supra. Although the revised Rule had not yet been promulgated when delay damages were imposed herein, the holding in Craig interpreting former Rule 238 was viable and applicable to the case at that time. Revised Rule 238 was drafted in the spirit of Craig. Appellant elected
In addition, we find no merit to appellant’s argument that appellee was responsible for the delay of trial on the basis of his allegedly excessive and unreasonable settlement demands. The amount of a plaintiffs demand, no matter how excessive, is inconsequential to when trial dates are set. A plaintiffs excessive demands may slow the settlement process, but have little impact upon the speed of the litigation process. Thus, an assertion that the plaintiffs demand is unreasonable is simply not relevant to the question of whether he or she was at fault for the delay of trial.
. The jury empaneled in the within action returned a verdict in favor of Dr. Chapman. Accordingly, he is no longer involved in this litigation.
. Under former Rule 238, interest was calculated at 10% per annum, not compounded. Pa.R.Civ.Proc. Rule 238(a)(1) (now rescinded). Under revised Rule 238, interest is “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 damages are awarded, plus one percent, not compounded." Pa.R.Civ.Proc. Rule 238(a)(3).
. Cf. Commonwealth, Department of Environmental Resources v. Pennsylvania Power Co., 490 Pa. 399, 416 A.2d 995 (1980) (imposition of civil penalties was not a punishment; rather, penalties were intended to provide incentive for development of technology that would eliminate pollution).
Concurring Opinion
concurring.
I agree with the result reached by the majority and, for the most part, the analysis used. I write separately to reemphasize that the purpose of Rule 238 is to alleviate delay in the disposition of cases. The fact that successful plaintiffs will recover interest on “money properly belonging” to them is an undeniable byproduct of the Rule, but not its purpose. See Majority Opinion. To the extent the majority relies on the “[fundamental fairness” of paying interest on “money properly belonging to the plaintiffs” as a rationale in reaching the instant decision, I disagree. Id. Rule 238 is a procedural exercise of the rule-making powers of this Court, not an exercise of our substantive judicial powers.
Reference
- Full Case Name
- Joseph R. SCHROCK, Appellee, v. ALBERT EINSTEIN MEDICAL CENTER, DAROFF DIVISION and Joseph L. Chapman, M.D. Appeal of ALBERT EINSTEIN MEDICAL CENTER, DAROFF DIVISION
- Cited By
- 40 cases
- Status
- Published