Mowery v. Prudential Property & Cas. Ins. Co.

• Decision Date: 04 January 1988
• Citation: 535 A.2d 658,369 Pa.Super. 494
• Parties: Teresa J. MOWERY, Appellant, v. PRUDENTIAL PROPERTY & CASUALTY INS. CO., Appellee.
• Court: Pennsylvania Superior Court

Page 658

535 A.2d 658

369 Pa.Super. 494

Teresa J. MOWERY, Appellant, v. PRUDENTIAL PROPERTY & CASUALTY INS. CO., Appellee.

Superior Court of Pennsylvania.

Argued Sept. 21, 1987.

Filed Jan. 4, 1988.

Hubert X. Gilroy, Carlisle, for appellant.

Jeffrey B. Rettig, Harrisburg, for appellee.

Before CAVANAUGH, BROSKY and WATKINS, JJ.

CAVANAUGH, Judge:

The issue in this case is whether § 1714 of the Motor Vehicle Financial Responsibility Law, 75 Pa.C.S.A. § 1714, is constitutional. § 1714 provides:

§ 1714. Ineligible claimants

An owner of a currently registered motor vehicle who does not have financial responsibility or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor-driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits.

The factual situation is not complex and the parties have stipulated to the facts. Teresa J. Mowery, the appellant and plaintiff below, was the registered owner of a 1976 Chevrolet Malibu passenger car which was not insured. ¹ On March 23, 1986 the appellant was a passenger in a vehicle operated by John Calaman which was involved in an accident with a vehicle operated by Richard Scott. Mr. Scott died as a result of the accident and Mr. Calaman and the appellant were injured. The appellant incurred medical bills and lost wages as a result of the accident. She submitted a claim under 75 Pa.C.S.A. § 1713(a)(3) against the appellee, Prudential Property & Casualty Insurance Company, which insured Mr. Calaman. The claim was for first party benefits consisting of medical bills and work loss. ² The appellee denied benefits under 75 Pa. § 1714 on the grounds that the appellant was the owner of a registered vehicle who did not have financial responsibility as defined by the Act.

Mowery filed a complaint for declaratory judgment in the court below requesting that § 1714 of the Motor Vehicle Financial Responsibility Act be declared unconstitutional as applied to her. Prudential filed an Answer and New Matter. Subsequently, the appellant filed a motion for summary judgment which was denied and by order of January 13, 1987 the court below by Bayley, J. decided that § 1714 was constitutional. It further denied the appellant's Motion for Summary Judgment and entered summary judgment in favor of Prudential. In a proper case, summary judgment may be entered in favor of a non-moving party. Port Authority of Allegheny County v. Flaherty, 6 Pa.Cmwlth. 135, 293 A.2d 152 (1972); Nationwide Mutual Insurance Co. v. DiTomo, 330 Pa.Super. 117, 478 A.2d 1381 (1984). This appeal followed.

Lawfully enacted statutes are presumed to be constitutional. Patton v. Republic Steel Corp., 342 Pa.Super. 101, 492 A.2d 411 (1985). One who challenges the constitutionality of an act, must demonstrate that the statute clearly violates the Constitution. Cox Estate, 327 Pa.Super. 479, 476 A.2d 367 (1984); Daly v. Hemphill, 411 Pa. 263, 191 A.2d 835 (1963). All doubts are resolved in favor of sustaining legislation. Staino v. Commonwealth, Pennsylvania State Horse Racing Commission, 98 Pa.Cmwlth. 461, 512 A.2d 75 (1986). With these precepts in mind, we shall consider the challenge to § 1714 which was based on an alleged denial of equal protection of the laws under the Fourteenth Amendment of the United States Constitution. ³

The appellant claims that she was denied equal protection of the laws as the statute rendered her ineligible to collect first party benefits because she was the owner of a registered vehicle without financial responsibility, even though the vehicle was in no way involved in the accident. The concept of equal protection of the law requires that uniform treatment be given to persons who are similarly situated, and if there are classifications drawn, as in this case, as failure to have financial responsibility will exclude a person from benefits under the Act in certain circumstances, then the challenged provisions must be reasonably justified. Laudenberger v. Port Authority of Allegheny County, 496 Pa. 52, 436 A.2d 147, 155 (1981).

In challenging the classification as unconstitutional as violative of equal protection, our Supreme Court has ruled that there are three different types of classifications calling for three different standards of judicial review. James v. Southeastern Pennsylvania Transportation Authority, 505 Pa. 137, 477 A.2d 1302 (1984). The Supreme Court stated at 505 Pa. 145, 477 A.2d 1305-6:

The first type--classifications implicating neither suspect classes nor fundamental rights--will be sustained if it meets a "rational basis" test. Singer v. Sheppard [464 Pa. 387, 346 A.2d 897 (1975) ], Id. In the second type of cases, where a suspect classification has been made or a fundamental right has been burdened, another standard of review is applied: that of strict scrutiny. San Antonio School District v. Rodriguez, 411 U.S. 1, 93 S.Ct. 1278, 36 L.Ed.2d 16 (1973). Finally, in the third type of cases, if "important," though not fundamental rights are affected by the classification, or if "sensitive," though not fundamental rights are affected by the classification, or if "sensitive" classifications have been made, the United States Supreme Court has employed what may be called an intermediate standard of review, or a heightened standard of review. U.S. Dept. of Agriculture v. Murry, 413 U.S. 508, 93 S.Ct. 2832, 37 L.Ed.2d 767, 775 (1973) (concurring opinion of Mr. Justice Marshall), citing Stanley v. Illinois, 405 U.S. 645, 92 S.Ct. 1208, 31 L.Ed.2d 551 (1972). There are, in summary, three standards of review applicable to an equal protection case, and the applicability of one rather than another will depend upon the type of right which is affected by the classification.

At the outset, then, we must determine what type of right the present classification affects ("fundamental rights," "important rights," or rights which are neither "fundamental" nor "important"); whether the classification is suspect or involves a sensitive area; the state purpose in making the classification; and what type of relationship there is between the classification and the purpose of the classification.

In Smith v. City of Philadelphia, 512 Pa. 129, 516 A.2d 306 (1986) the Supreme Court summarized the three types of classifications as (1) classifications which implicate a suspect class or a fundamental right; (2) classifications implicating an "important", though not a fundamental right or a "sensitive" classification and (3) classifications which involve none of these. The court went on to state at 512 Pa. 138, 516 A.2d 311:

Should the statutory classification in question fall into the first category, the statute is strictly construed in light of a "compelling" governmental purpose; if the classification falls into the second category, a heightened standard of scrutiny is applied to an "important" governmental purpose; and if the statutory scheme falls into the third category, the statute is upheld if there is any rational basis for the classification.

In Smith v. City of Philadelphia, supra, the Supreme Court upheld the constitutionality of Section 8553 of the Political Subdivision Tort Claims Act, 42 Pa.C.S. § 8553, which limits recovery of damages against political subdivisions of the Commonwealth to $500,000 in the aggregate for legally cognizable tort injuries arising from the same transaction. The court held that the right to full recovery in cases brought against the Commonwealth is not a fundamental right and therefore strict scrutiny is not required. However, the right to full recovery is an important right requiring a heightened scrutiny of the validity of the classification statute. It was held that Section 8553 passes constitutional muster under the intermediate or heightened standard of review. The classifying statute was valid as the state has an important interest, the preservation of the public treasury against unusually large awards in tort. It was held that this important interest is very closely related to the classification established by the statutory scheme.

In James v. Southeastern Pennsylvania Transportation Authority, supra, the court applied the intermediate standard of review in upholding the constitutionality of Section 2036 of the Metropolitan Transportation Authorities Act, then in effect, which imposed a requirement of giving notice to a governmental unit within six months from the date of an injury or the date of the accrual of the cause of action. The Supreme Court held that the statute in question was subject to a heightened scrutiny as an important right was involved, access to the courts to sue the Commonwealth, where it has consented to be sued. The purpose of the notice requirement is to provide the government with the opportunity to make timely investigations and avoid stale and fraudulent claims. The court held that there was an important governmental purpose served by the notice requirement and that the classification was so narrowly drawn as to be closely fitted to the statutory purpose.

In the case before us, the appellant concedes that entitlement to first party benefits under the Motor Vehicle Financial Responsibility Law is not a fundamental right and therefore the statute need not be strictly construed in light of governmental purpose. ⁴ However, she contends that § 1714 is subject to a heightened standard of scrutiny, whereas the court below applied the lowest standard or "rational basis" test. We agree with the trial court that the "rational basis" test is appropriate. The Motor Vehicle Financial Responsibility Law is a statute which provides for entitlement to economic benefits relating to losses incurred as the result of motor vehicle usage. It does not limit access to the courts by requiring prompt notice of an accident as in Smith v. City of Philadelphia, supra, nor does it impose a cap on the amount of recovery in a tort...