Nationwide Mutual Insurance v. Wickett
Nationwide Mutual Insurance v. Wickett
Dissenting Opinion
dissenting.
In this appeal, the majority adopts a reasonable, plain-meaning construction of Pennsylvania Rule of Appellate Procedure 341(b)(2) as it relates to the Declaratory Judgments Act, and its reasoning appears to follow from the Court’s prior decision in General Accident Ins. Co. of Am. v. Allen, 547 Pa. 693, 706-07, 692 A.2d 1089, 1095 (1997). Nevertheless, since the opinion ultimately rests upon an interpretation of the intention of the General Assembly, I am troubled by the absence of any express indication within the Declaratory Judgments Act to the effect that the Legislature wished to alter the usual rules of appealability in the context of declaratory judgment proceedings, as has been included within other enactments when the purpose is as such. See, e.g., 42 Pa.C.S. § 7320 (providing explicitly that appeals may be taken from various interlocutory orders, such as an order denying an application to compel arbitration). Moreover, the primary and direct purpose of the Declaratory Judgments Act, a version of the Uniform Declaratory Judgments Act, was to authorize courts to grant declaratory relief in the face of objections that such relief represented the giving of advisory opinions rather than the adjudication of controversies. See generally Petition of Ranker, 284 Pa. 455, 463, 131 A. 265, 268 (1925). As the language of Section 7532 pertaining to the finality of “the declaration” is essential to this central purpose, I would read such language as aligning declaratory judgment jurisprudence with that which applies to civil actions generally, rather than as creating a separate and unique scheme for the appeal of otherwise interlocutory orders in declaratory judgment proceedings.
Opinion of the Court
OPINION
We granted allowance of appeal in order to consider whether the Superior Court erred in finding that the trial court’s orders sustaining preliminary objections in the nature of demurrers in actions brought pursuant to the Declaratory Judgment Act
Walter Hollobaugh and the two surviving children of the decedent
On December 11, 1996, Nationwide Insurance Company (Nationwide), the decedent’s individual automobile insurance carrier, filed a declaratory judgment action seeking a declaration, inter alia, that the coverage available to the decedent under the Huron policy and under the Workers’ Compensation Act precluded the decedent’s estate from recovering uninsured or underinsured benefits under the decedent’s Nationwide policy. On January 7, 1997, the decedent’s estate filed an answer and counterclaim. Three days later, on January 10, 1997, the- decedent’s estate filed a complaint to join Huron as an additional defendant in the Nationwide action based on the Superior Court’s then newly-issued decision in Warner v. Continental/CNA Ins. Cos., 455 Pa.Super. 295, 688 A.2d 177 (1996), in which the court held that the exclusivity provisions of the Workers’ Compensation Act did not preclude an injured employee from recovering underinsured benefits under his employer’s liability insurance policy.
Huron filed three separate Petitions for Permission to Appeal to the Superior Court from the trial court’s October 29, 1997 orders, as amended on November 13, 1997. The Superi- or Court granted all three Petitions on January 16, 1998, and later consolidated the appeals. Thereafter, on December 22, 1998, the Superior Court entered an order and memorandum opinion affirming all three of the trial court’s October 29, 1997 orders as amended on November 13,1997.
On appeal to this Court, Huron argues that the Superi- or Court erred in affirming the trial court’s October 29, 1997 orders because the trial court had no jurisdiction to enter them. Specifically, Huron contends that the trial court’s September 9, 1996 orders sustaining Huron’s preliminary objections in the nature of a demurrer constituted immediately appealable final orders pursuant to Pa.R.A.P. 341(b)(2) and 42 Pa.C.S. § 7532. Thus, Huron posits that the trial court was without jurisdiction to reconsider them more than thirty days after their entry. See 42 Pa.C.S. § 5505. We agree, and therefore reverse the Superior Court.
Pursuant to Pa.R.A.P. 341(b)(2), an order is final if it is expressly so defined by a statute.
Courts of record, within their respective jurisdictions, shall have the power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. No action or proceeding shall be open to objection on the ground that a declaratory judgment or decree is prayed for. The declaration may be either affirmative or negative in form and effect, and such declarations shall have the force and effect of a final judgment or decree.
42 Pa.C.S. § 7532. There can be no disputing that Section 7532 defines any order in a declaratory judgment action that either affirmatively or negatively declares “rights, status, and other legal relations” as a final order. Thus, we must determine whether the trial court’s September 9, 1996 orders granting Huron’s preliminary objections in the nature of a demurrer either affirmatively or negatively declared the rights of the parties. If the orders at issue did in fact affirmatively or negatively declare the rights of the parties, then they constituted immediately appealable final orders pursuant to Pa.R.A.P. 341(b)(2). If no such declarations were made, then the orders were merely interlocutory, and the trial court retained jurisdiction to reconsider them.
As a general matter, preliminary objections in the nature of a demurrer allege that a pleading is, quite simply, legally insufficient. Pa.R.C.P. 1028(a)(4). Huron’s preliminary objections in the underlying declaratory judgment ac
The Superior Court read the statutory language from Section 7532 that “[t]he declaration may be either affirmative or negative in form and effect” as requiring the courts to make explicit in their declaratory judgment orders that they are entering a declaratory judgment in favor of or against the requesting party. The Superior Court noted that by reading such a requirement into the above-quoted statutory language, possible confusion over the appealability of such orders would be avoided because declaratory judgment orders not identifying themselves as such would not be considered
Section 7532 simply states that an order in a declaratory judgment action that either affirmatively or negatively declares the rights and duties of the parties constitutes a final order. As the above discussion explains, that is exactly what the trial court’s September 9, 1996 orders did. Therefore, the trial court’s orders constituted final orders pursuant to Pa. R.A.P. 341(b)(2), and the trial court was without jurisdiction to reconsider them more than thirty days after their entry. See 42 Pa.C.S. § 5505. Accordingly, we reverse the orders of the Superior Court affirming the trial court’s October 29, 1997 orders as amended on November 13,1997.
. 42 Pa.C.S. §§ 7531 etseq.
. The decedent’s children filed the action as co-administrators of his estate and in their own right as his surviving natural children.
. 77 P.S. §§ 1 et seq.
. 75 Pa.C.S. §§ 1701 et seq.
. The complaint to join filed by the decedent’s estate also included a request that the trial court reverse its September 9, 1996 order granting Huron's preliminary objections based on the Superior Court’s holding in Warner.
. In their brief to this Court, Appellees argue that for an order to be considered final pursuant to Pa.R.A.P. 341(b)(2), it must dispose of all claims and of all parties. Appellees' argument is misplaced, as it ignores the plain language of Pa.R.A.P. 341(b). Pa.R.A.P. 341(b) provides as follows:
(b) Definition of Final Order. A final order is any order that:
(1) disposes of all claims and of all parties; or
(2) any order that is expressly defined as a final order by statute; or
*602 (3) any order entered as a final order pursuant to subdivision (c) of this rule.
Pa.R.A.P. 341(b) (emphasis added). As this Court previously stated in General Accident Ins. Co. of Am. v. Allen, 547 Pa. 693, 692 A.2d 1089 (1997), the plain language of Pa.R.A.P. 341(b) provides that "an order is final and appealable if it disposes of all claims or if a statute expressly defines it as final.” Id. at 705, 692 A.2d at 1095 (emphasis in original). Thus, Appellees’ contention that the trial court’s September 9, 1996 orders cannot be considered final orders pursuant to Pa.R.A.P. 341(b)(2) because they did not dispose of all parties and all claims is without merit.
. In its opinion accompanying its September 9, 1996 orders, the trial court stated that: “In substance, plaintiff[s] are asking this Court to determine that the exclusivity provisions of the Worker’s [sic] Compensation Act do not extend to automobile insurers of an employer where death or injury occurs in a work-related automobile accident.” (Trial Ct. Op., 9/9/96, at 7; R.R. at 43.) Analyzing the merits of Huron’s demurrers, the trial court concluded that Hollobaugh and the decedent’s estate were not legally entitled to the determination they sought, because the exclusivity provisions of the Workers’ Compensation Act, in conjunction with relevant portions of the Motor Vehicle Financial Responsibility Law, precluded them from recovering underinsured motorist benefits from Huron. Accordingly, the trial court granted Huron’s preliminary objections in the nature of demurrers and dismissed it from the complaints.
Reference
- Full Case Name
- NATIONWIDE MUTUAL INSURANCE COMPANY v. Deborah L. WICKETT and James Pesce, Co-Administrators of the Estate of John Richard Pesce and Deborah L. Wickett and James A. Pesce, Individually and in Their Own Right as the Surviving Natural Children and Next of Kin of John Richard Pesce, Deceased v. Huron Insurance Company. Appeal of Huron Insurance Company; Walter Robert Hollobaugh and Ruth A. Hollobaugh v. Louis Pesce, Pesce Metal Fabricating Inc., Wilbert McMillen, Jr., State Farm Mutual Automobile Insurance and Huron Insurance Company. Appeal of Huron Insurance Company; Deborah L. Wickett and James A. Pesce, Co Administrators of the Estate of John Richard Pesce and Deborah L. Wickett and James A. Pesce, Individually and in Their Own Right as the Surviving Natural Children and Next of Kin of John Richard Pesce, Deceased v. Louis Pesce Individually and as Agent, Servant and Employee of Pesce Metal Fabricating Inc., Pesce Metal Fabricating Inc., a Business Corporation, Wilbert McMillen, Nationwide Mutual Insurance Company and Huron Insurance Company. Appeal of Huron Insurance Company
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- Status
- Published