Pennsylvania Defense Institute

PDI Board approves 12 new members at June meeting

Tue, 29 Jun 2010 18:53:00 EDT

The Pennsylvania Defense Institute welcomed the following new members to the organizatio

Seth Black: Summers, McDonnell (Harrisburg)

Stacy Tees: German, Gallagher & Murtagh (Philadelphia)

James Nealon: Erie Insurance (Erie)

Gregory Page: Erie Insurance (Erie)

Bridgette Shoenig: Erie Insurance (Erie)

Michael Ksiaze: Goldfein & Joseph (Philadelphia)

Gary Dadamo: Lavery, Faherty, Young & Patterson (Harrisburg)

Joseph Patterson: Lavery, Faherty, Young & Patterson (Harrisburg)

Joseph Petka: Goldberg, Miller & Rubin (Philadelphia)

Chris Jennifer Carling: Taravelers Insurance (Scranton)

Theresa DiPaolo: Dickie, McCamey & Chilcote (Pittsburgh)

Katherine Gallagher: Dickie, McCamey & Chilcote (Pittsburgh

PDI Annual Meeting Dates Set

Tue, 29 Jun 2010 09:36:00 EDT

PDI's 42nd Annual Meeting is scheduled for September 29 - October 1, 2010 at Bedford Springs Resort & Spa in Bedford, PA. PDI returns to Bedford this year after the success of last year's program there. PDI's Board of Directors and Committee Chairs will meet the evening of September 29. PDI offers 6 substantive CLE credits for the educational program begining Thursday the 30th and concluding at noon on October 1. The theme for this year's program is "21st Century Lawsuits: The Electronic Revolution in the Courtroom". Distinguished experts and judges will speak on the modern courtroom. But it will not be all work and no play! There will be our annual Presidents Reception on Thursday evening. And, there is golf and swimming, hiking and shopping available. PDI has negositted great room and golf prices, so make your reservations soon.

Trio of Cases on Underinsured Motorist Recovery

Mon, 10 May 2010 11:58:00 EDT

Pennsylvania Defense Institute (PDI) was involved as an interested party in a trio of recent Pennsylvania Supreme Court decisions involving underinsured motorist coverage (UIM). Tannenbaum v. Nationwide Insurance Company involved the issue of the right of a UIM claimant to plead, prove and recover as damages in a UIM action items of income loss already paid by the claimant's disability insurer. A UIM arbitration panel held that Tannenbaum was barred from recovering these items under Section 1722 of Pennsylvania's motor vehicle law. The trial court reversed, and Pennsylvania's Superior Court affirmed the trial court. Pennsylvania's Supreme Court in an April 28, 2010 decision first held that Tannenbaum's disability policy plan was subject to Section 1722's coverage. The court then went on to hold that Section 1722 precludes a claimant from recovering in a UIM claim benefits already paid under a disability policy. Justice Saylor wrote the majority opinion and was joined by Chief Justice Castille and Justice Eakin.

In O'Hara v. Liberty Mutual Insurance, the claimant had sought to recover UIM benefits in an action in Philadelphia County. At the time of the 2007 accident, O'Hara was a resident of Delaware County. Pennsylvania's Superior Court upheld a "forum selection" clause in the Liberty Mutual auto policy requiring O'Hara to pursue UIM benefits in Delaware County. The court founmd that the clause was enforceable and did not violate the Pennsylvania Rules of Civil Procedure governing venue. Pennsylvania's Supreme Court on May 3, 2010 denied O'Hara's appeal of the Superior Court decision, leaving their holding intact.

Similiarly, in a March 23, 2010 decision, the Pennsylvania Supreme Court in Pusl v. Means left intact another Superior Court decision. Amanda Pusl was injured in an auto accident and brought suit against Means. Prior to trial, Pusl settled her UIM claim with State Farm Insurance for $75,000. Her case against Means proceeded to trial resulting in a $100,000 verdict for her. After trial, the court "molded" the verdict to set off the $75,000 UIM settlement, reducing the award to Pusl to $25,000. Pennsylvania's Superior Court upheld the award of $25,000 finding that the reduction of the award did not violate Pennsylvania's "collateral source rule." The court found that public policy frowns on any "double recoveray" of damages, and that Section 1722 of Pennsylvania's motor vehicle law was enacted to prevent such a result and ensure that an injured person is entitled to only "one satisfaction."

Malpractice suits drop in state

Wed, 28 Apr 2010 13:22:00 EDT

Tort reform, passed in 2003, credited for fewer filings, smaller awards in most areas.

The number of medical malpractice lawsuits is down significantly statewide, and hospitals are winning those that go to trial, the Administrative Office of Pennsylvania Courts said Tuesday.

The announcement -- which shows hospitals in the eight-county Lehigh Valley area successfully defended themselves in 29 of 32 trials last year -- comes as national attention has focused on health care and as Republicans have excoriated Democrats for failing to make malpractice reform part of the nation's overhaul.

Across Pennsylvania, there were 1,533 malpractice filings in 2009, a 43.9 percent drop compared to the average before Pennsylvania revamped procedural rules in 2003, the administrative office said. The changes eliminated ''venue shopping'' and tightened a filing requirement to weed out frivolous suits.

''In the recent health care debate nationally, there is an insistent call for reform of the handling of medical malpractice cases within the judicial system,'' state Supreme Court Chief Justice Ronald Castille said. ''By these two rule changes, Pennsylvania is far ahead of the nation and of individual states in this arena, and we stand as a model for reform.''

Tort reform continues to be a major demand by Republicans nationally, although the health care bill President Obama recently signed into law includes $50 million for tort reform demonstration projects.

In Lehigh County, there were 63 malpractice filings last year, compared with an average of 72 a year in 2000 to 2002. In Northampton, there were 18 filings, versus an average of 73 a year over the same three-year period.

In 2009, hospitals successfully defended themselves in eight of 10 malpractice suits that went before a jury in Lehigh County. The plaintiff lost the only case to go to trial in Northampton.

Statewide, juries sided with hospitals

85 percent of the time last year, the administrative office said, a high for the decade. No award exceeded $10 million.

The numbers add something for both sides of the malpractice debate. For the health care industry, they show that tort reform efforts have worked. For attorneys, they bolster claims that the medical profession overstates the impact the suits have on health costs.

''All the complaints and arguments by the medical system that the legal system is the problem, I think it's absolutely ridiculous,'' said Martin Cohen, a Bethlehem Township attorney whose firm has handled many high-profile Lehigh Valley malpractice cases.

The health care industry in Pennsylvania continues to push for limits on jury awards, including caps on damages for pain and suffering. The Hospital and Health Systems Association of Pennsylvania says despite the past reforms, the cost of medical liability insurance remains more than double what it was in 2000.

Roger Baumgarten, a spokesman for the association, said liability insurance costs continue to keep doctors from coming to Pennsylvania and have resulted in others leaving the state.

Dr. Raymond Singer, a past president of the Lehigh County Medical Society and associate director of Lehigh Valley Health Network's Regional Heart Center, said the medical industry doesn't exaggerate the impact malpractice suits have on costs. He said Lehigh County, where a majority of Lehigh Valley hospitals are located, still has a significant number of filings.

''That should not be interpreted as there no longer being a problem,'' Singer said.

Regardless of how the numbers are viewed, they are good news for county courts that are seeing lower caseloads, especially since malpractice suits are lengthy and heavily specialized.

Under the rule changes seven years ago, the state required that malpractice suits be heard in the county in which the alleged medical errors occurred. That restricted venue shopping, the practice of filing a case in a county known to be kind-hearted to plaintiffs.

The court also mandated lawyers get a ''certificate of merit'' from another physician that attests to the validity of their legal claims, a move aimed to halt lawsuits that lack substance.

''It's a positive,'' said Susan Schellenberg, Lehigh County court administrator. ''There are fewer filings and the juries, when they get them, know they are viable.''

In Northampton County, Court Administrator James Onembo said the sheer cost of going to trial, coupled with the rise of efforts to settle cases out of court, has also helped keep suits down.

''It's not cheap to try a case anymore,'' Onembo said. ''Experts on a case are very, very expensive, and those cases are settling or not being brought.''

There are exceptions to the downward trend. With the elimination of venue shopping, caseloads have leaped for some counties. In the region, that happened with Montgomery County, which had 102 malpractice cases last year, a 371 percent increase from the three-year average before the reform.

And that's not to say that plaintiffs never win their suits. In March, a Northampton County jury awarded $2 million to a Phillipsburg woman whose left leg had to be amputated after a knee replacement surgery at Easton Hospital.

Her attorney, Michael Perrucci, said Pennsylvania's malpractice reforms have been beneficial, since they filter out suits that are unnecessary. But he said he hopes hospitals do more to prevent medical errors, the reason successful suits get filed.

''If you are going to shrink the lawsuits that are in some ways deterrents, then the medical industry needs to step up,'' Perrucci said. ''Because it's unacceptable that medical errors are one of the leading causes of death in America.''

By Riley Yates and Veronica Torrej�n OF THE MORNING CALL

PDI welcomes Minnesota Lawyers Mutual and Network Deposition Services as Premiere Sponsors for 2010

Fri, 02 Apr 2010 10:00:00 EDT

The Pennsylvania Defense Institute welcomes Minnesota Lawyers Mutual and Network Deposition Services as Premiere Sponsors for 2010. PDI encourages its members to contact these companies when they are in need of services.

Founded in 1982, Minnesota Lawyers Mutual Insurance Company (MLM) provides professional liability insurance and risk management services for the legal community. MLM is committed to being an efficient, accountable and permanent practice management resource, exemplified by an AM Best rating of A-Excellent with stable outlook, and a consistent dividend return since 1988. For more information please contact Tom Auth at his email address tauth@mlmins.com or call him at 410-798-6229. Save 10% on your premium by applying online at www.mlmins.com.

Network Deposition Services is a full service court reporting firm operating throughout the State of Pennsylvania.We specialize in innovative cost containment solutions for law firms, insurance companies, corporations, and government agencies. Our Information Exchange Solution provides our clients with the tools necessary to streamline the claims administration process by offering instant access via our online repository to all litigation-related documents and scheduling. Our Court Reporters and Litigation Support Technicians are certified professionals that meet your legal support needs with high quality products and reliable service using the latest in technology. For more information call 866-565-1929. Visit us online at www.ndsreporting.com

PennCOST issues statement opposed to new state sales tax

Mon, 22 Mar 2010 16:06:00 EDT

The Pennsylvania Coalition Opposed to an expanded Sales Tax (PennCOST), a coalition of organizations representing a broad and diverse range of interests and constituents within Pennsylvania, strongly opposes the Governor’s proposal to expand Pennsylvania’s sales and use tax as part of the upcoming budget.

The sales tax is very regressive, and to offset its regressivity it has not been imposed on necessities. The Governor’s plan would gravely undermine this offset and place a greater tax burden on the financially most vulnerable. For example, heating a family home, dry-cleaning, buying a casket for a deceased family member, purchasing aspirin, buying college textbooks, paying for basic residential utility services, employing an accountant to complete tax returns, hiring a real estate broker to purchase a home, obtaining a loan or utilizing other banking and investment services and retaining a lawyer for an adoption will all be taxed under the Governor’s proposal. Given Pennsylvania’s critical assistance to many whom, for example, struggle to heat their homes (LIHEAP), pay for health care (CHIP and adultBasic) find employment (unemployment insurance and CareerLink), pay for college (student loans and aid), or deal with a mortgage foreclosure (civil legal service funding), it is counter-productive and unfair to reverse ongoing policy and tax these goods and services. Even the non-profits that assist those in need will be hurt by the Governor’s plan, as businesses will pass on the new sales taxes they must pay to operate to the non-profits with whom they contract.

In addition, broadening the sales tax is bad for Pennsylvania business. It will discourage out-of-state consumers from shopping in Pennsylvania, be a disincentive for businesses and professionals to move to Pennsylvania, and drive out existing in-state businesses. The result: an even greater loss of jobs, wages, and taxes than our Commonwealth has already experienced during this recession. For example, a study by Global Insight indicated in 2006 that six percent sales tax on advertising would cost the Commonwealth 64,000 jobs and decrease overall sales by $14.8 billion. While a four percent tax would yield somewhat lower numbers, the numbers would be large enough to undermine revenue gains from the expanded sales tax. Likewise, those living week-to-week on their paycheck with little or no disposable income who can manage to afford the new tax will by necessity spend less elsewhere, thereby hurting local businesses.

Finally, note the basic unfairness for all Pennsylvanians and Pennsylvania for-profit businesses should the tax expansion become law. Anytime a professional is needed to address or redress any issue—tax, legal, engineering, etc.,—with local or state government, Pennsylvanians and businesses will have to pay an additional four percent to the Commonwealth to use that professional, while the government in question can obtain the same services without paying that four percent tax. In other words, one has to pay the government to fight the government.

Despite our often distinct differences, the members of PennCOST share a common view: an expanded sales tax as envisioned by the Governor is economically harmful and ill-advised. This view is widely shared: a January 2009 nationwide poll found that 81% of voters agreed that “state sales tax should NOT be expanded to cover services like legal, medical, advertising, architectural, and accounting services.” Therefore, as you work towards a final budget, we urge you to reject any proposed expansions of Pennsylvania’s sales tax.

Marie Milie Jones Receives �Susan B. Anthony Award�

Tue, 09 Feb 2010 13:40:00 EST

PDI Congratulates Marie Milie Jones on Receiving the Women’s Bar Association of Western PA’s “Susan B. Anthony Award”

Marie Milie Jones, a former President of the Pennsylvania Defense Institute, has been awarded the Susan B. Anthony Award by the Women’s Bar Association of Western Pennsylvania for her efforts to promote equality within the legal profession.

“We are very proud of Marie’s accomplishments and congratulate her on this well-deserved award,” said current PDI President Stuart J. Setcavage. “Marie has worked tirelessly to improve PDI and promote the legal profession during her career.”

Jones is a partner at Meyer Darragh Buckler Bebenek & Eck in Pittsburgh. She was the youngest female managing attorney of a major law firm in Pittsburgh’s history. She served as the PDI president from 2002-2003.

The Susan B. Anthony award recognizes the individual who most exemplifies the objectives and goals of the Women’s Bar Association, by promoting equality within the legal profession. Jones will receive the award at a reception on Feb. 16 at the Omni William Penn in Pittsburgh.

PDI Pres. Stuart Setcavage featured in Catalyst

Wed, 27 Jan 2010 15:27:00 EST

PDI President Stuart Setcavage is featured in the winter edition of Catalyst, the magazine of the Pennsylvania Chamber of Business and Industry. Setcavage argues for a coordinated effort to bring fairness to the courtroom.

Read the article (PDF file)

Pennsylvania Law Weekly: Elected and Appointed

Wed, 21 Oct 2009 09:23:00 EDT

Stuart J. Setcavage, Litigation Team Manager at State Farm Insurance, was installed as president of the Pennsylvania Defense Institute during the organization's annual conference.

Setcavage said his goals for 2010 include encouraging the General Assembly to re-enact the Fair Share Act, which would ensure the amount of damages in a civil action is based on the level of responsibility and also encouraging changes in the state's Bad Faith Statute. He would like to preserve the current practice of having judges preside over bad faith cases. PDI will also create a Young Lawyers Committee, which will focus on associate development programs, membership recruitment and diversity plans, Setcavage said. In his role at State Farm, Setcavage is responsible for automobile-related litigation in 38 Pennsylvania counties. He has been a PDI board member for several years and most recently served as co-chair of the Amicus Curiae Committee. Others installed to officers positions include President-Elect Craig Murphey of MacDonald Illig Jones & Britton in Erie and Executive Vice President Charles Wasilefski of Peters & Wasilefski in Harrisburg.

2009 Conference photos posted

Tue, 06 Oct 2009 17:06:00 EDT

Photos of the 2009 PDI Conference, held at the beautiful Bedford Springs Resort, have been posted:

Visit the PDI partners webpage

Thu, 12 Mar 2009 13:41:00 EDT

Visit the new Partners page to view the Pennsylvania Defense Institute's partners.