Renner v. Lichtenwalner
Decision Date | 06 May 1981 |
Docket Number | Civ. A. No. 78-3219. |
Citation | 513 F. Supp. 271 |
Parties | Jennifer RENNER, a minor, by her parent and natural guardian, Patricia Renner and Patricia Renner in her own right v. Martin and Mary LICHTENWALNER. |
Court | U.S. District Court — Eastern District of Pennsylvania |
Hy Mayerson, Spring City, Pa., for plaintiff.
Joseph Bodell, Philadelphia, Pa., for defendant.
See also Fed.R.Civ.P. 59(e). Defendants resist the motion on the theory that the provisions of Rule 238 are "procedural guidelines" and therefore "inapplicable" in a federal court.
Pennsylvania's Rule 238 seeks to encourage the prompt and equitable settlement of claims for personal injuries by imposing upon the defendant the obligation to engage in good faith settlement negotiations. The rule enhances plaintiff's right to be compensated promptly without resort to the full spectrum of lengthy and costly litigation. Where a plaintiff's ultimate recovery exceeds one hundred twenty-five percent of a reasonable demand Rule 238 penalizes defendants with interest at ten percent, which accrues from the date of the refusal to settle. See Marrazzo v. Scranton Nehi Bottling Co., 438 Pa. 72, 76, 263 A.2d 336 (1970). Section (e) of the rule further delineates a number of conditions which must be satisfied prior to the award of additional damages for delay. The parties do not dispute that these prerequisites for recovery have been met.
See also Roesberg v. Johns-Manville Corp., 89 F.R.D. 63 (E.D.Pa.1981). Labeling Rule 238 as "procedural" or "substantive" fails to address Erie's policies and effect upon diversity litigation. Walker v. Armco Steel Corp., 446 U.S. 740, 100 S.Ct. 1978, 64 L.Ed.2d 659 (1980), Edelson v. Soricelli, 610 F.2d 131, 133 (3d Cir. 1979). Clearly, Erie provides diversity litigants with an impartial forum, not a different set of legal rules governing the merits of the dispute. Witherow v. Firestone Tire & Rubber Co., 530 F.2d 160, 164 (3d Cir. 1976). The twin aims of Erie, discouragement of forum shopping and minimizing the possibility of results varied by the mere fortuity of diversity, compels the conclusion that plaintiff may claim Rule 238 damages in a federal forum applying Pennsylvania law. See Hanna v. Plumer, 380 U.S. at 468, 85 S.Ct. at 1142, Erie Railroad Co. v. Tompkins, 304 U.S. at 74-76, 58 S.Ct. at 820-821. A contrary result would weaken Erie's first goal, discouragement of forum shopping, since state defendants, where diversity exists, could avoid the obligations and potential liabilities imposed by Pennsylvania law by removing the action to federal court. See 28 U.S.C. § 1441. Moreover, denying diversity plaintiffs damages for delay while their state counterparts may obtain them derogates from Erie's second goal, avoiding the harshness of...
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