Racicot v. Erie Ins. Exchange

• Court: Superior Court of Pennsylvania
• Writing for the Court: ORIE MELVIN, BENDER and BECK, JJ.
• Citation: 881 A.2d 871
• Parties: Garcia G. RACICOT, Appellant, v. ERIE INSURANCE EXCHANGE, Appellee.
• Decision Date: 09 August 2005

881 A.2d 871

Garcia G. RACICOT, Appellant,
v.
ERIE INSURANCE EXCHANGE, Appellee

Superior Court of Pennsylvania.

Argued April 19, 2005.

Filed August 9, 2005.

881 A.2d 872

Anthony N. Gemma, Youngstown, OH, for appellant

Jason Medure, New Castle, for appellee.

BEFORE: ORIE MELVIN, BENDER and BECK, JJ.

OPINION BY BENDER, J.:

¶ 1 This is an appeal from an order dated September 10, 2004, which granted in part and denied in part Erie Insurance Exchange's (Erie) petition to modify, correct or vacate an award of arbitrators. After oral argument and review of the briefs and record, we affirm.

¶ 2 On June 2, 1993, Appellant, Garcia G. Racicot, was involved in an automobile accident with Philip J. Miranda (Miranda) in the state of Ohio. Appellant, who was a resident of Pennsylvania, was insured by Erie. Miranda, who resided in Ohio, was insured by Coronet Insurance Company of Ohio (Coronet). Appellant was paid first party benefits by Erie in the amounts of $19,228.11 for medical expenses and $25,000.00 for wage loss. Appellant was also paid the bodily injury limits of Miranda's Coronet policy of $12,500.00. After receiving those payments, Appellant looked to the underinsured motorist coverage contained in his Erie policy.

¶ 3 An underinsured motorist arbitration hearing was held which resulted in an award of $181,728.12. The arbitrators applied Ohio law in reaching the award. Erie filed a petition to modify, correct, or vacate the award. The Honorable Ralph D. Pratt vacated the award and remanded the case to a new panel to apply Pennsylvania law in the adjudication of the matter. Appellant attempted to appeal to this court from the remand order; however, the appeal was quashed as interlocutory. Racicot v. Erie Ins. Exchange, 748 A.2d 1260 (Pa.Super.1999) (unpublished memorandum).

¶ 4 On September 13, 2002, the new panel of arbitrators entered an award for Appellant, which was confirmed by the court and Appellant appealed to this

881 A.2d 873

Court. We held that it had been error to dismiss the original panel of arbitrators and remanded to the trial court with instructions to address Erie's original petition to modify, correct or vacate the award of arbitrators. Racicot v. Erie Ins. Exchange, 837 A.2d 496 (Pa.Super.2003)

¶ 5 The Honorable J. Craig Cox, President Judge of Lawrence County, accepted the case on remand in light of Judge Pratt's imminent retirement from the bench. Judge Cox first addressed the conflict of laws question and applied the "most significant relationship" approach set forth in Griffith v. United Air Lines, Inc. 416 Pa. 1, 203 A.2d 796 (1964). Concluding that Pennsylvania law should apply, he then corrected and modified the first underinsured motorist arbitration award as follows:

In conclusion, the award of the arbitrators is corrected and modified as follows: (1) the $ 19,228.12 for "medicals" is eliminated; (2) the $ 92,500 for "wage loss" is reduced by $25,000 to reflect payments already made under first-party benefits; and (3) the $70,000 for "pain and suffering" remains unchanged. The award for under-insured motorist coverage due to plaintiff is therefore corrected and modified to total $137,500. Defendant shall receive credit to this total for all additional payments made by defendant to plaintiff with regard to this underinsured motorist claim not specifically addressed by this opinion.

Racicot v. Erie Ins. Exchange, 70 Pa. D. & C.4th 560, 568 (Lawrence County, 2004). The effect of Judge Cox's order was to deduct from Appellant's underinsured motorist arbitration recovery amounts paid by Erie pursuant to first party coverage. This modification applied the Pennsylvania Motor Vehicle Financial Responsibility Law, 75 Pa.C.S. §§ 1701-1799.7. Under Ohio law there would have been no such offset.

¶ 6 Appellant now appeals to this Court raising the sole issue of whether Judge Cox erred in his...