A limitation of liability clause found in PECO Energy’s “public utility tariff” does not disclaim it from a subrogation claim lodged by an insurance company, the state Superior Court has ruled.
The majority of the three-judge panel decided that Rule 12.1 of the tariff was not in violation of public policy because it did not amount to a fully exculpatory clause, which would absolve the energy giant of all liability. (The Superior Court has held exculpatory clauses within a tariff as void against public policy.) Instead, the rule only blocked liability for damages attributable to “accidents” or causes outside of the company’s control, under the majority’s analysis.
