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Price v. Pennsylvania Property

In medical malpractice suit where defendant malpractice insurer offset from settlement amount the amount plaintiffs had received from their medical care insurers, summary judgment in favor of defendant affirmed; to extent that injured child's parents had a claim for coverage of her medical expenses, defendant was entitled to an offset pursuant to Non Duplication of Recovery statute.

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�1 James (Father) and Deborah (Mother) Price, individually and as the parents of Megan (Daughter) Price (collectively “the Prices”), appeal from the trial court’s order granting the Pennsylvania Property and Casualty Insurance Guaranty Association’s (PPCIGA) motion seeking summary judgment. The Prices present several arguments supporting their allegation that the trial court erroneously permitted PPCIGA to deduct, from its payment of settlement proceeds to the Prices, money third-party insurers paid toward Daughter’s medical expenses. After review, we conclude that the trial court did not err as a matter of law. Accordingly, we affirm the trial court’s order.

�2 This appeal arises from a medical malpractice suit filed by the Prices against various physicians alleging that the physicians’ negligent prenatal care of Mother caused permanent injury to Daughter. Over time, the Prices’ medical insurance carriers reimbursed the Prices $545,924 of the near $800,000 for Daughter’s medical expenses. At the time of the alleged negligent conduct, PIC Insurance Group (PIC) provided the physicians’ malpractice insurance, with a policy limit of $200,000 for each of the three physicians. In 1998, the Commonwealth Court declared PIC insolvent compelling PPCIGA, to assume responsibility for PIC’s contractual obligations. PPCIGA is a statutory association of insurance companies created to protect policyholders and claimants from the consequences of an insurer’s insolvency by funding claims attributable to the insolvent insurer.

�3 During a trial, the parties reached a settlement agreement awarding the Prices $3.1 million. The Pennsylvania Medical Malpractice Fund (CAT) agreed to pay $2.5 million whereas PPCIGA assumed responsibility for $600,000.00 of the total award. In return, the Prices agreed to release the physicians from further litigation, reserving solely the right to litigate whether PPCIGA was entitled to an offset from medical expenses paid by Father’s medical insurance carrier. PPCIGA then paid the Prices $54,076 of the $600,000 settlement on the presumption that it was entitled to an offset pursuant to 40 P.S. Section 991.1817(a) (Non Duplication of Recovery).

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