Lewis v. School Dist. of Philadelphia

• Decision Date: 01 March 1988
• Parties: Jerry LEWIS, Appellant, v. SCHOOL DISTRICT OF PHILADELPHIA, Appellee. Thomas HOLTON, Appellant, v. CITY OF PHILADELPHIA, Appellee. Thomas COLLINS, Appellant, v. CITY OF PHILADELPHIA and General Accident Insurance Company. Appeal of GENERAL ACCIDENT INSURANCE COMPANY.
• Court: Pennsylvania Supreme Court

Page 862

538 A.2d 862

517 Pa. 461

Jerry LEWIS, Appellant, v. SCHOOL DISTRICT OF PHILADELPHIA, Appellee.

Thomas HOLTON, Appellant, v. CITY OF PHILADELPHIA, Appellee.

Thomas COLLINS, Appellant, v. CITY OF PHILADELPHIA and General Accident Insurance Company.

Appeal of GENERAL ACCIDENT INSURANCE COMPANY.

Supreme Court of Pennsylvania.

Argued Nov. 9, 1987.

Decided March 1, 1988.

[517 Pa. 463] Burton A. Rose, Theodore A. Schwartz, Robert T. Szostak, Philadelphia, for amicus--Pa. Trial Lawyers Assoc.

Paul Mark Perlstein, David M. McCormick, Philadelphia, for amicus--Pa. Assigned Claims Plan.

Charles W. Craven, Philadelphia, for other appellants.

Barbara Axelrod, Philadelphia, for City of Philadelphia (Nos. 119 & 35).

Martin Horowitz, Philadelphia, (No. 24) James P. McNally, Philadelphia, for Collins (No. 35).

Andrew M. Rosen, Philadelphia, for other appellees.

Before NIX, C.J., and LARSEN, FLAHERTY, McDERMOTT, ZAPPALA and PAPADAKOS, JJ.

OPINION

NIX, Chief Justice.

These appeals call upon us to decide which of two statutes, the "Uninsured Motorist Act" ¹ or The Pennsylvania Workmen's Compensation Act, ² controls whether an employee may recover uninsured motorist benefits from his employer for a work-related automobile accident. The "Uninsured Motorist Act" requires, subject to limitations not here pertinent, that automobile insurance policies covering personal-injury liability also provide protection against uninsured motorists. However, the availability of this protection to employees of the owner of the insured vehicle implicates section 303(a) of the Workmen's Compensation Act, 77 P.S. § 481(a), which states that the latter statute is the exclusive source of an employer's liability to an employee for work-related injury.

The instant appeals, which we consolidated for argument and decision, arose from three separate actions for damages based on the "Uninsured Motorist Act." In two of the actions, an employee sought to recover damages from his employer for pain and suffering resulting from personal injuries sustained in a work-related automobile accident with an uninsured driver. The third action was of the same nature, but included the injured employee's own insurance carrier as a co-defendant. In all three cases the courts below concluded that section 303(a) of the Workmen's Compensation Act immunized the employer from the employee's claim for uninsured motorist benefits. We granted review to consider the correctness of that conclusion.

JERRY LEWIS

Appellant Jerry Lewis was employed by the School District of Philadelphia ("School District") as a bus driver. The School District was self-insured as to motor vehicle liability and as to workmen's compensation claims. On May 26, 1982, Lewis, while driving a school bus in the course of his employment, was involved in an accident with another vehicle, owned and operated by an uninsured motorist. Because of injuries sustained by Lewis in the accident he received workmen's compensation benefits from his employer. Subsequently, Mr. Lewis demanded of the School District that it pay him additional moneys, pursuant to the "Uninsured Motorist Act," to compensate him for the non-economic detriment he suffered as a result of the 1982 accident. That claim was based on our decision in Modesta v. Southeastern Pennsylvania Transportation Authority, 503 Pa. 437, 469 A.2d 1019 (1983), in which we held that self-insureds have a legal duty to provide the coverage mandated by the "Uninsured Motorist Act."

In March of 1984, upon the School District's rejection of his uninsured motorist claim, Jerry Lewis petitioned the Court of Common Pleas of Philadelphia County for an order to compel his employer to arbitrate the matter. ³ The petition was denied by the trial court, on the ground that, as against an employer, benefits under the Workmen's Compensation Act are an employee's exclusive monetary remedy for injury suffered by him in the course of employment. That decision was affirmed by the Superior Court. Lewis v. School District of Philadelphia, 347 Pa.Super. 32, 500 A.2d 141 (1985). Mr. Lewis followed with a petition to this Court for an allowance of appeal, which we granted for the purpose of considering the issue set forth above.

THOMAS HOLTON

Appellant Thomas Holton was employed by the City of Philadelphia ("City") as a policeman. On October 15, 1981, Officer Holton was injured in the course of his employment, as a result of an automobile accident involving a City-owned police vehicle he was driving and another vehicle, owned and operated by a civilian motorist with no insurance. Holton's employer, the City, was self-insured as to automobile liability and workmen's compensation. Because Officer Holton's injuries were work-related, the City paid him workmen's compensation benefits.

Holton had automobile liability insurance of his own. Based on the uninsured motorist provision in his policy, he claimed against his own insurance carrier for the non-economic detriment he suffered as a result of the accident. When that claim proceeded to arbitration the arbitrators determined that, because of our decision in Modesta, supra, the City had the primary responsibility of providing uninsured motorist coverage for Holton. According to the arbitrators, the obligation of Holton's own insurance carrier was only secondary. When Holton demanded of the City that it provide him with uninsured motorist benefits, the claim was denied.

On October 19, 1984, Thomas Holton filed in the Court of Common Pleas of Philadelphia County an action for a declaratory judgment, seeking a judicial determination that the City was liable to him for uninsured motorist benefits. The City responded to the action with preliminary objections, asserting that the Workmen's Compensation Act immunized it from the claim in question. The trial court sustained the City's defense and dismissed Holton's suit. That decision was affirmed by the Superior Court in a memorandum opinion. Holton v. City of Philadelphia, 352 Pa.Super. 622, 505 A.2d 1038 (1985). Holton's petition to this Court for an allowance of appeal was granted.

GENERAL ACCIDENT INSURANCE COMPANY

The third appeal, though presenting the same issue as the other two, is by an appellant whose interest is in a different posture. The instant appellant, General Accident Insurance Company ("General"), was the liability insurer for the private automobile of a municipal employee who was injured in a work-related vehicle accident caused by an uninsured motorist. General seeks to reverse a trial-court decision which held that, because of section 303(a) of the Workmen's Compensation Act, the employee's claim for uninsured motorist benefits, made against both the employer and the claimant's insurer, would lie only against the latter.

In April of 1983, General issued to one Thomas Collins and his wife a liability insurance policy covering their automobiles. As mandated by the "Uninsured Motorist Act", the policy contained a provision for uninsured motorist coverage. Thomas Collins was employed by the City of Philadelphia as a policeman. On May 12, 1983, Officer Collins was injured in the course of his employment when an automobile, driven by an uninsured motorist, struck the rear of a City-owned police car in which the officer was seated.

Based on the injuries he sustained in the accident, Collins directed to his employer and to his own insurance carrier a claim for benefits under the "Uninsured Motorist Act." On April 8, 1985, he filed in the Court of Common Pleas of Philadelphia County a petition to compel arbitration of the claim, naming as respondents the City and General. The petitioner specifically alleged that the accident had occurred "in the course and scope of his employment with the City of Philadelphia." The City responded to the petition with preliminary objections, raising as an affirmative defense the exclusivity provision in section 303(a) of the Workmen's Compensation Act. The trial court agreed with the City's defense, sustained the preliminary objections, and entered an order dismissing Collins' petition insofar as the City was concerned. In the court's view, the City's obligation to Thomas Collins was limited to workmen's compensation. Thereafter, on June 11, 1985, the trial court issued another order: directing that Collins' uninsured motorist claim proceed to arbitration against the other respondent, General. The ensuing arbitration proceeding resulted in a decision in favor of Collins and against General in the amount of Eight Thousand Two Hundred and Fifty Dollars ($8,250.00).

General petitioned the Court of Common Pleas to vacate the arbitration award. In that regard, General asserted that the uninsured motorist coverage in Collins' automobile policy was merely excess to any other coverage he might have, and that the City had the primary obligation to pay him uninsured motorist benefits. The trial court denied General's petition, pointing out that it had already ruled upon the extent of the City's liability for Collins' injuries.

General appealed to the Superior Court, and there renewed its argument that the City was liable to its employee for uninsured motorist benefits. That argument was again rejected; and the Superior Court issued a memorandum opinion affirming the decision of the trial court. Collins v. City of Philadelphia (Appeal of General Accident Insurance Co.), 358 Pa.Super. 624, 514 A.2d 197 (1986). General petitioned this Court for an allowance of appeal. We granted review to determine whether the courts below correctly applied the exclusivity provision in the Workmen's Compensation Act.

Section 1(a) of the "Uninsured Motorist Act," in the part here involved, states as follows:

No motor vehicle liability policy of insurance insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall be delivered or...