### J - A23040 - 17

NON - PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37 ROBERT J. CAVOTO, JR., INTERNATIONAL HEALTH ALLIANCE, INC., CAVOTO CHIROPRACTORS, P.C. Appellants

v. STATE FARM MUTUAL AUTOMOBILE INSURANCE CO., DION ROSENAU SMITH MENZAK & AARON, AND LEE H. ROSENAU : : : : : : : : : : : : : : IN THE SUPERIOR COURT OF

PENNSYLVANIA

No. 1085 EDA 2017 Appeal from the Judgment Entered May 24, 2017 In the Court of Common Pleas of Philadelphia County

Civil Division at No(s): 050601630 BEFORE: PANELLA, DUBOW, and FITZGERALD, * 

### JJ. MEMORANDUM BY FITZGERALD, J.: FILED DECEMBER 18, 2017 Appellants, Robert J. Cavoto, Jr. ( “ Cavoto ” ), International Health Alliance, Inc., and Cavoto Chiropractors, P.C., appe al from the judgment entered in favor of Appellees, State Farm Mutual Automobile Insurance Co., Dion Rosenau Smith Menzak & Aaron, and Lee H. Rosenau. 1 

### Appellants

____________________________________________ * 

### Former Justice specially assigned to the Superior Court. 1 

### We note that the trial court, in its initial order dated January 30, 2006, erroneously responded to “ Defendants’ preliminary objections,” when preliminary objections were actually only filed by State Farm while the remainder of Appellees filed a joint “answer with new matter.” However, all Appellees contended that Appellants failed to set forth a legally cognizable claim for “abuse of process” and the court agreed by dismissing the claim.

### J - A23040 - 17

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present numerous arguments regarding their claims for defama tion, abuse of process, tortious interference, and conspiracy. We affirm. We adopt the facts and procedural history set forth by the trial court’s comprehensive opinion. See Trial Ct. Op., 3/3/17, at 1 - 3. In this timely appeal, Appellant raises the following nineteen issues for review:

A. Whether the trial court e rred in p ermitting [] Rosenau to t estify r egarding the Dickman l etter b ecause the document w as n ot a uthenticated? B. Whether the trial c ourt e rre d in p ermitting [] Rosenau to t estify r egarding the Dickman l etter b ecause the document constitutes i nadmissible, d ouble h earsay ? C. Whether the trial court e rred in p ermitting the l etter to b e i ntroduced “ as to the d ate ” because s uch i nformation is al so inadmissible h earsay, a s w ell a s extremely p rejudicial to [Appellants] ? D. Whether the t rial c ourt e rred in p ermitting m isleading characterization(s) r egarding the March l etter d uring c losing, a s w ell a s f urther m ention of the d ate? E. Whether the t rial court er red in r esponding to the j ury ’ s r equest to s ee the March 2004 Letter and the r equest to h ear t estimony r egarding the d ocument? F. Whether the t rial c ourt e rred in p ermitting, and t hen r efusing to strike, [] Rosenau ’ s t estimony r egarding h is a lleged 2004 b illing r ecords? G. Whether the t rial c ourt e rred in r efusing to c harge t he j ury with Pennsylvania Standard Jury Instruction § 5.30 for

____________________________________________ 

### Moreover, A ppellees did not seek clarification in the trial court and do not raise this error on appeal . T herefore , the issue is waived. Moranko v. Downs Racing LP , 118 A.3d 11 11, 1117 n.3 . (Pa. Super. 2015) ( en banc ), appeal denied , 132 A.3d 459 (Pa. 2016)

### J - A23040 - 17

- 3 - a dverse i nference, d ue to [] Rosenau ’ s f ailure to p roduce the 2004 b illing r ecords? [ 2 ] 

### H. Whether the tria l c ourt e rred in d ismissing [Appellants ’ ] a buse of process c laims? I. Whether the t rial c ourt e rred in excluding a mple and significant e vidence on the b asis of j udicial p rivilege? J. Whether the t rial court e rred in excluding s tatements n ot specifically p led in the amended complaint w hen s uch statements c onstitute a cts of t ortious i nterference and c onspiracy? K. Whether the t rial c ourt e rred in e xcluding State Farm ’ s Midtown m emo and the t estimony of Mr. John Smith? L. Whether the t rial c ourt e rred in e xcluding the t estimony of Ms. J ’ Amy Kluender? M. Whether the t rial c ourt e rred in excluding the t estimony of Mr. Gary Heslin r egarding Mr. Fred Smith ’ s c omments about State Farm ’ s $1,000,000 t hreshold and “ h ardball ” t actics? N. Whether the t rial c ourt e rred in excluding the t estimony of Mr. Robert Datner? O . Whether, b ased s olely on t he admitted e vidence, the [t] rial [c] ourt e rred by g ranting non - s uit in f avor of State Farm on the c ount of Defamation w hen State Farm ’ s defamation w as e stablished through the p rinciples of a gency? P. Whether, b ased s olely on t he admitted evidence, the t rial c ourt e rred by g ranting non - s uit in f avor of a ll [Appellees] on the c ount of c onspiracy?

____________________________________________ 2 

### Appellants have abandoned their claim that the trial court erred in refusing an adverse inference jury instruction by failing to develop the claim in their brief.

### J - A23040 - 17

- 4 - Q. Whether, b ased s olely on the admitted evidence, the t rial c ourt e rred by g ranting non - s uit in f avor of Mr. Rosenau on the c ount of t ortious i nterference w hen an a ct of d efamation a lso constitutes t ortious i nterference? R. Whether the t rial c ourt e rred as a m atter of l aw by g ranting non - suit w hen i mproperly e x cluded evidence wou ld h ave e stablished a p rima facie cause of a ction on a ll Counts? S. Whether, b ased on the above - l isted e rrors, th[is] Court s hould r emove non - s uit and g rant [Appellants] a n ew t rial on a ll c ounts? Appellant s ’ Brief at 3. 3 

### A ppellants’ first five issues concern the admission of a letter ( “ Dickman letter ” ) which was purportedly written by Appellants’ former attorney detailing an alleged defamatory conversation. Appellants claim the letter was not properly authenticated, contained statements constituting h earsay, and was unduly prejudicial. Id. at 22 - 26 . Appellants also assert that Appellees improperly discussed the letter and mischaracterized the letter’s contents during closing argument . I d. at 26. Appellant further claims that the trial court improperly refused the jury’s request to see a copy of the letter during deliberations or to have testimony r egarding the letter reread during deliberations . Id. at 27.

____________________________________________ 3 

### We note that Appellant s ’ brief violates several rules of appellate procedure . Appellant s ’ brief exceeds thirty pages and does not contain a certification of compliance with the 14,000 word count limit. See Pa .R.A.P . 2135(a). Nevertheless, we decline t o quash. See PHH Mortg. Corp. v. Powell , 100 A.3d 611, 615 (Pa. Super. 2014) (refusing to quash appeal despite numerous violations of appellate briefing rules).

### J - A23040 - 17

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Appellants’ next issue focus es on the trial court’s admission of billing records. They argue that the tr ial court improperly permitted Appellee Rosenau to testify regarding his billing records when those records were not introduced into evidence . Id. at 27 - 28 . Appellants , in their eighth issue , assert that the trial court erred b y dismissing, pre - trial, their count for abuse of process for fail ure to state a leg ally cognizable cause of action . They argue that they sufficiently pleaded allegations that Appellees utilized discovery and depositions, in other unrelated cases, in an attempt to harm Appellants . Id. at 29 - 32. In their ninth issue, Appellants contend that the trial court abused its discretion by excluding testimony based on judicial privilege. Specifically, t he y assert that the statements in question were ma de outside the scope of the privilege during depositions unrelated to the instant case. Id. at 32 - 34. In their tenth issue, Appellants argue that the trial court erred by refusing to consider alleged defamatory statemen ts not specifically ple d in their amended complaint. Id. at 44 - 47. Appellants allege they adequately asserted their claims for tortious interference with an existing and prospective business relationship and civil conspiracy, and that defamatory statements uncovered during discovery shou ld have been admitted at trial. Id. at 46 - 47. Appellants’ eleventh issue challenges the trial court ’ s ruling that excluded evidence arising after the date of Appellants’ complaint in August 2015. They argue that a m emo , which purportedly detailed State Farm’s use

### J - A23040 - 17

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of “ shadow discovery , ” was admissible as evidence of a bad act under Pa.R.E. 404(b). Id. at 48. Additionally, Appellants assert that testimony from an individual who stopped patients referring to Appellant Cavoto should have been admitted to show causation and damages . Id. at 49 - 50. Appellants next three issues generally object to the trial court’s decision to decline to admit testimony fro m former employees of State Farm and other individuals who purportedly had knowledge of State Farm’s tactics. See id. at 50 - 56. Finally, in their last five issues, Appellants contend that the trial court erred by granting non - suit regarding their claims for defamation as to Appellee State Farm , and for conspiracy and tortious interference against all Appellees . Id. at 56 - 65. Appellants argue that trial evidence did not support the trial court’s ruling, and that the excluded evidence would have been suf ficient to suppo rt the above causes of action . Id. at 56 - 65. After a thorough review of the record, the briefs of the parties, the applic able law, and the forty - page opinion o f the Honorable Judge Gary Glazer , we con clude the trial court’s opinion comprehensively discuss es and properly dispose s of the issues presented. See Trial Ct. Op. at 3 - 40 (finding that (1) Appellants failed to preserve any challenge to the authenticity of the Dickman letter ; (2 ) the Dickman letter was properly admitted as an admission of a party opponent for the limited purpose of establishing the date of an alleged conversation for purposes of the statute of limitations ; (3) the Dickman letter

### J - A23040 - 17

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was probative for purposes of the statute of limitations ; (4 ) the jury was properl y prohibited from viewing the entire contents of the Dickman letter when it was admitted for only a limited purpose ; (5 ) the court acted within its purview when allowing the jury to rehear portions of testimony regarding the Dickman letter during deliberat ions ; (6 ) Appellee Rosenau properly refreshed his recollection by reviewing his b illing records prior to trial ; (7 ) Appellants failed to sustain an abuse of process claim because they could not establish that Appellees attempted to use “shadow discovery ta ctics” for the sole purpose of causing harm to Appellants ; (8 ) the judicial privilege precluded all testimony which concerned statements made during the course of judicial proceedings , such as depositions ; (9 ) Appellants failed to plead each defamatory sta tement ultimately alleged with sufficient particularity ; (10 ) evidence occurring after the commission of the lawsuit was properly excluded as unduly prejudicial with minimal probative value ; (11 ) testimony from former employees of State Farm was too atten uated and prejudicial to be properly admitted ; (12 ) Appellants’ tortious interference claim failed because Appellants could not prove that either a contractual relationship existed or that the one possible incidence of defamation which was not barred by ju dicial privilege was not within the one - year statute of limitations ; (13 ) insufficient evidence supported Appellants’ claims for tortious interference, defamation, and conspiracy and , therefore , nonsuit was proper). Accordingly, we affirm on the basis of the trial court’s opinion.

### J - A23040 - 17

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Judgment affirmed. 4 

### Judgment Entered. Joseph D. Seletyn, Esq. Prothonotary Date: 12/18/2017

____________________________________________ 4 

### On October 23, 2017, Appellants filed a post - submission communication , after this Court had conducted oral argument. As noted in Appellees’ motion to quash Appellants’ submission, Appellants violated Pa.R.A.P. 2501(a) which mandates that “[a]fter the argument of a case had been submitted, no brief, memorandum or letter rela ting to the case shall be presented or submitted, either directly or indirectly, to the court or any judge thereof, except upon application or when expressly allowed at bar at the time of the argument.” Pa.R.A.P. 2501(a). Accordi ngly, we quash Appellants’ post - submission communication but note that, in any event, the communication merely reiterates arguments Appellants already set forth both during argument and within their appellate brief. However , we do not find the communication to be “dilatory, obdura te or vex atious,” as urged by Appellees. See Pa.R.A.P. 2744 Thus, we do not conclude that the award of counsel fees is appropriate in this case. See id. ( stating an appellate court may award a reasonable counsel fee where “it determines that an appeal i s frivolous or taken solely for delay or that the conduct of the participant against whom costs are to be imposed is dilatory, obdurate or vexatious ” ) . Additionally, Appellees have filed a motion to seal an exhibit contained in Appellants’ answer to Appellees’ motion to quas h. We grant the motion to seal and direct the Prothonotary of this Court to seal Appellant’s “Brief in Opposition to Appelle’s Motion to Strike.”Circulated 12/08/2017 03:24 PM



### IN T H E C O U R T O F C O M M O N P L E A S O F 

### P BI ! L A D E L P H E A C O U N T V Fl R S T JU D I C I A L D IS T RI C T O F P ENN S Y L V A N I A C I V K L T RI A L D I V IS I O N R O B E R T 

### J . C A V O T O , 

### JR . , IN T E RN A T I O N A L H E A L T H A L L I A N C E , IN C . C A V O T O 

### C H I R O P RA C T O R S , P . C. , T I P R O F , IN C . , an d P ENN C EN T E R P A I N M A N A G E M EN T , IN C . ,

P l a i nt i ff s 

### v . S T A T E 

### F A RM M U T U A L A U T O M O B I L E IN S . C O . , e t a l.

D e fe n d ant s G L A Z E R , J . O P I NI O N JU N E T E RM , 2 0 0 5 N O . 0 1 6 3 0 C O M M E R C E P R O G RA M

M ar c h } ) 2 0 1 7 T h i s l aw s u i t s p ann e d o v e r a d e c a d e an d c u l m i n at e d w i th a j ur y v e r d i c t th at fo un d th e l aw s u i t w a s fil e d unt i m e l y . O n Jun e 1 7 , 2 0 0 5 , D r . R o b e rt C av o t o , Jr. ( " C av o t o " ) , I nt e rn at i o n a l H e a lth A ll i an c e , 

### I n c . , C av o t o C h i ro p ra c t o rs ) P . C . , T i p r o f , I n c . , an d P e IU1 C e nt e r P a i n M an a g e m e nt , In c . ( c o ll e c t i v e l y " p l a i nt i ff s " ) fi l e d a l aw s u i t a g a i n s t S t at e F arm M utu a l I n s ur an c e C o mp any ( " S t at e F arm " ) , an d L e e 

### H. R o s e n au ( " R o s e n au " ) an d h i s l aw fi rm , D i o n , R o s e n au , 

### S m i th , M e n s z ak & 

### A aro n ( c o ll e c t i v e l y " d e fe n d an t s " ) , 

### fo r d e fam at i o n , a b u s e o f p r o c e s s , 

### t o rt i o u s i nt e r fe r e n c e , 

### an d c o n s p i ra c y . P R O C E D U RAL H I S T O R Y A N D F A C T S C av o t o i s a P h i l a d e l p h i a ar e a c h i ro p r a c t o r an d o w n e r o f th e p l a i nt i ff b u s i n e s s e s . Hi s b u s i n e s s r e l i e s u

p o n t e l e m ark e t i n g an d p e r s o n a l i n j ur y att o rn e y r e f

e rra l s i n o r d e r t o 

### g e n e rat e c l i e n t e l e , 

### H e a ll e g e s 

### S t at e F arm s o u g h t t o p ut h i m o ut o fb u s i n e s s 

### b y t arn i s h i n g 

### h i s r e p ut at i o n 

### i nth e l e g a l c o mmun i ty an d u s i n g " h ar d b a ll " li t i g at i o n t a c t i c s i n l aw s u i t s th at i nv o l v e d h i s o ffi c e s . 1 R o s e n au , a s a fr e qu e n t c o un s e l fo r S t at e F ann i n s ur e d s o v e r th e p a s t fo ur d e c a d e s , w a s a ll e g e d l y th e o n e w h o c arr i e d o ut th i s p l an thr o u g h d e p o s i t i o n s an d h i s c o n t a c t s w i th ar e a att o rn e y s . 2 A t th e t i m e c o mp l a i n e d o f , S t at e F arm w a s i nv e s t i g at i n g C av o t o fo r fr au d . T h e c at a l y s t fo r th e i nv e s t i g at i o n w a s c o mp l a i n t s fr o m S t at e F arm i n s ur e d s w h o w e r e r e c e n t l y i nv o l v e d i n c ar a c c i d e nt s . T h e i n s ur e d s c o mp l a i n e d th e y w e r e g e tt i n g t e l e m ark e t i n g c a ll s fr o m an i n d i v i d u a l p o s i n g a s a S t at e F arm r e p r e s e nt at i v e - s u g g e s t i n g th e y s e e k m e d i c a l tr e atm e nt. S t at e F ann e v e nt u a ll y tr a c e d th e s e c a l l s t o M ar g e F i s h e r ( " F i s h e r " ) an d C av o t o . P r i o r t o tr i a l , th e p art i e s s u b m i tt e d f o rty - fi v e m o t i o n s i n l i m i n e t o e x c l u d e e v i d e n c e o r t e s t i m o ny . A ft e r ru l i n g o n th o s e m o t i o n s an d fo ur d ay s o ftr i a l , p l a i nt i ff s w e r e ab l e t o p ro d

u c e o n e c o nv e r s at i o n fr o m w h i c h th e j ur y c o u l d c o n cl u d e R o s e n au h a d d e f am e d C av o t o - a t e l e p h o n e c o nv e r s at i o n b e tw e e n R o s e n au an d M ar c B e n d o , E s qu i r e ( " B e n d o 1 ' ) . A t th e c l o s e o f th e e v i d e n c e , d e fe n d ant s m o v e d fo r a n o n s u i t o n a ll c l a i m s , w h i c h th i s c o urt g r ant e d a l m o s t i n i t s e n t i r e ty -d e ny i n g o n l y th e m o t i o n fo r n o n s u i t o n th e d e fam at i o n c l a i m a g a i n s t R o s e n au d u e t o h i s t e l e p h o n e c o nv e r s at i o n t o B e n d o _. B e c au s e d e fe n d ant s ra i s e d th e s t at ut e o f li m i t at i o n s a s a d e fe n s e , w h e n th at c o nv e r s at i o n t o o k p l a c e w a s a r e l e v ant qu e s t i o n . A c c o r d i n g l y , th e p art i e s s u b m i tt e d a j ur

y v e r d i c t s h e e t th at a s k e d w h e n th e c o nv e r s at i o n t o o k p l a c e . C av o t o a ll e g e d th e c o nv e r s at i o n t o o k p l a c e " w ith i n ( a ] y e ar " o f Jun e 1 7 , 2 0 0 5 . 3 B e n d o fe l t i t t o o k p l a c e aro un d C hr i s tm a s - t i m e o f 2 0 0 4 . 4 D e f e n d ant s

1 C o m p l. 'll � 1 , 1 4 - 1 5 . 2 C o m p l. 'll � 3 1 - 5 7 . 3 C o m p !. 'I] 6 6 . 4 R e c o r d , 1 0 / 3 1 / 2 0 1 6 , "' 1 2 3 , 1 0 - 1 1 . (" "' " d e s i g n a t e s p a g e n u m b e r )
. 2ar g u e d 

### i t t o o k p l a c e i n M ar c h 2 0 0 4 b a s e d o n R o s e n au ' s b i ll i n g r e c o r d s an d a l e tt e r w r i tt e n b y

C av o t o ' s att o rn e y p ur

p o rt i n g t o s umm ari z e th e c o nv e r s at i o n . 5 T h e j ur y r e t urn e d a v e r d i c t fi n d i n g th e c o nv e r s at i o n t o o k p l a c e p r i o r t o Jun e 1 7 , 2 0 0 4 . 6 A s a r e s u lt , p l a i n t i ff

s ' s u i t w a s b an e d b y th e s t at ut e o f l i m i t at i o n s . 

### D I S C U S S I O N B e fo r e th e c o urt i s p l a i n t i ff s ' p o s t - tr i a l m o t i o n , i n w h i c h p l a i n t i ff s c l a i m s e v e r a l e n- o r s w i th r e s p e c t t o th i s c o urt ' s e v i d e n t i ar y ru l i n g s p r i o r t o an d d

ur i n g tri a l. P l a i n t i ff

s ar g u e th e 

### e rr o r s p r e j u d i c e d th e i r a

b i li ty t o p r e s e n t th e i r c a s e an d w arr ant th i s c o urt g rant i n g a n e w tr i a l. T h i s c o urt fi n d s a ll e rr o r s c o mp l a i n e d o f J a c k m e r i t o r w e r e h arm l e s s . T h e r e fo r e , p l a i n t i ff s ' m o t i o n fo r a n e w tr i a l i s d e n i e d . 

### I . S t an d ar d o f R e v i e w T h e a dm i s s i o n o r e x c l u s i o n o fe v i d e n c e i s w i th i n th e s o un d d i s c r e t i o n o fth e tr i a l c o urt an d i s r e v e r s e d o n l y u

p o n fi n d i n g a c l e ar a

b u s e o f d i s c r e t i o n o r m i s a p p li c at i o n o fth e J aw . 7 A n ab u s e o f d i s c r e t i o n mu s t b e s h o wn 

### b y cl e ar an d c o nv i n c i n g e v i d e n c e . 8 F urth e rm o r e , " t o c o n s t i t ut e r e v e r s i b l e e rr o r , an e v i d e nt i ary ru li n g mu s t n o t o n l y b e e rr o n e o u s , b ut a l s o h arm fu l o r p r e j u d i c i a l t o th e c o mp l a i n i n g p arty . " 9 T o ra i s e a c l a i m o f e rr o r i n p o s t - tr i a l p ro c e e d i n g s , th e e rr o r mu s t h av e b e e n ra i s e d p r e tri a l o r at th e t i m e o f 

### tr i a l . ' ? T h e p arty ' s p o s t - tri a l m o t i o n mu s t s p e ci fy h o w th at r e qu i r e m e n t w a s c o mp li e d w i th , an d any e rr o r w i th o ut s u c h s p e c i fi c at i o n i s d e e m e d w a i v e d . 1 1

5 R e c o r d , 1 1 / 8 / 2 0 1 6 , " 6 7 , 1 4 - 2 2 ; I d . at * 6 5 , 1 8 - 2 5 . 6 i d . at 1 2 7 , 10 - 1 3 . 7 G a s t o n v . M i n h a s , 9 3 8 A . 2 d 4 5 3 , 4 5 5 ( P a . S u p e r . C t. 2 0 0 7 ) . 8 P o u / o n e v . Pa u l o n e , 6 4 9 A . 2 d 6 9 1 , 6 9 2 ( P a . S u p e r C t. 1 9 9 4 ) . 9 A m . F tu r

e S y s . , ta c . v . 8 8 8, 8 72 A . 2 d 1 2 0 2 , 1 2 1 2 ( P a . S u p e r C t . 20 0 5 ) . 1 0 S e e P a . R . C . P . 2 2 7 . l ( b ){ l ) 11 S e e I d . (b )( 2 ) . 3T h e r e fo r e , any e r ro r n o t e xp l a i n e d w i th i n p l a i n t i f f' s m e m o ran d

um o f l aw i s w a i v e d an d w i ll n o t b e a d dr e s s e d i n th i s o p i n i o n . 1 2 U . P l a i n t i ff F a il e d t o E s t a b li s h th e B a s ic E l e m e n t s o f an Ab u s e o f P r o c e s s C l a i m . 

### In J anu ar y 2 0 0 6 , th i s c o urt s u s t a i n e d d e fe n d an t s ' p r e li m i n ary o b j e c t i o n t o p l a i n t i ff

s ' c l a i m fo r ab u s e o fp r o c e s s . 

### In th e ir c o mp l a i n t , p l a i n t i ff s a ll e g e d th at d e f

e n d an t s u s e d d e p o s i t i o n s i n p e r s o n a l i n

j ur y l aw s u i t s f

o ran i mp ro p e r p urp o s e - n am e l y , t o i nv e s ti g at e C av o t o . ' ? Ab u s e o f

p ro c e s s i s th e u s e o f l e g a l p ro c e s s a s a t a c t i c a l w e a p o n t o c o e r c e a d e s i r e d r e s u l t th at i s n o t th e l e g i t i m at e o b j e c t o fth e p r o c e s s . " ! " I n o r d e r t o e s t ab li s h a p ri m a fa c i e c a s e fo r a b u s e o f p r o c e s s , th e p l a i n t i ff mu s t e s t a

b li s h th at th e " d e fe n d an t ( 

### 1 ) u s e d a l e g a l p ro c e s s a g a i n s t th e p l a i n t i ff

, ( 2 ) p r i m ar i l y t o a c c o mp l i s h a p ur p o s e fo r w h ic h th e p ro c e s s w a s n o t d e s i g n e d , an d ( 3 ) h arm h a s b e e n c au s e d t o th e p l a i n t i ff . " 1 5

· P l a i n t i ff

s b e li e v e th e y e s t a

b li s h e d 

### a c a s e fo r a

b u s e o fp ro c e s s b y a ll e g i n g " th at D e fe n d an t s ut il i z e d d i s c o v e r y t a c t i c s 

### ( i n c a s e s w h e r e P l a i nt i ff s w e r e n o t e v e n p art i e s ) 

### i n o r d e r .

. [ t o ] d i s s u a d e o th e r s fr o m a s s o c i at i n g o r d o i n g b u s i n e s s w i th P l a i n t i ff . " 1 6 H o w e v e r , i t i s b e c au s e

" p l a i n t i ff

s w e r e n o t e v e n 

### p art i e s ' ' i n th o s e a c t i o n s th at an a b u s e o fp ro c e s s c l a i m 

### w a s n o t e s t a b li s h e d . D e fe n d an t s ' d i s c o v e r y t a c t i c s w e r e u s e d a g a i n s t th e p e r s o n a l i n j ur y p l a i n t i ff

s , n o t C av o t o . S i n c e C av o t o w a s n o t a p arty i n th o s e a c t i o n s , i t w a s i mp o s s i b l e fo r d e fe n d an t s t o c o e r c e any d e s i r e d r e s u l t fr o m h i m . T h e r e fo r e , p l a i n t i ff s ' ab u s e o f p ro c e s s 

### . c l a i m w a s p ro p e r l y d i s m i s s e d .

12 P l a i n t i ff r a i s e d s e v e ra l e rr o rs I n i t s p o s t - t r l a l m o t i o n t h a t a r e n o t I n cl u d e d i n I t s p o s t - t r i a l m e m o r a n d u m o f l a w . B e c a u s e t h e f

a ll u r e t o a d d r e s s t h e m I n t h e m e m o r a n d u m r e s u l t s i n n o n - c o m p li a n c e w i t h P a . R . C. P . 2 2 7 . 1 , t h e cl a i m s o f e r

ro r a r e d e e m e d w a i v e d . 1 3 C o m p l. 'll ,J 13 4 - 3 6 . 1 4 Mc G e e v

. Fe e q e , 5 3 5 A . 2 d 1 0 2 0 ( P a . 1 9 8 7 )
. 1 5 W e rn e r v . Pl a t e r- Z y b e r k , 7 9 9 A . 2 d 77 6 ( P a . S u p e r . C t. 2 0 0 2 )
. 1 6 P l . P o s t - T r i a l M e m o , *' 3 3 . 4H li. P l a i n t iff s F a i l e d t o E s t a

b l i s h D e f

e n d an t s ' C o n d

u c t I n t e r f

e r e d ' N i e h A L 1 y C o n tra c tu al o r P r o s p e c t i v e C o n tra c t

u a l R e l ati o n s h i p 

### P l a i nt i ff s c o nt e n d th i s c o urt e r

r e d o n ru li n g s w i th r e s p e c t t o th e ir c l a i m fo r t o rt i o u s i nt e r fe r e n c e w i th c o ntra c t

u a l r e l at i o n s i n tw o w ay s . F i r s t , p l a i nt i ff s ar g u e th i s c o urt ' s g rant o f n o n s u i t w a s e rr o r b e c au s e a d e fam at o r y s t at e m e nt c o n s t i t

ut e s t o rt i o u s i nt e r fe r e n c e , an d th e d e fam at i o n cl a i m a g a i n s t R o s e n au s urv i v e d d e fe n d ant s ' m o t i o n . 1 7 

### S e c o n d , th e y ar g u e th i s c o urt 

### e rr e d i n e x c l u d i n g d e f

am at o r y s t at e m e nt s th at w e r e n o t s p e c i fi c a ll y p l e d i n th e c o mp l a i nt b e c au s e th e y c o u l d h av e b e e n u s e d t o e s t ab l i s h a c l a i m fo r t o rt i o u s i nt e r fe r e n c e . 1 8 

### I n o r d e r t o s t at e a cl a i m fo r i nt e nt i o n a l i nt e r fe r e n c e w i th p ro s p e c t i v e o r e x i s t i n g c o ntra c t u a l r e l at i o n s , th e p l a i nt i ff mu s t s h o w :

· · " (1 ) 

### t h e e x i s te n c e o f a c o n tra c tu a l

, o r p ro s p e c ti v e c o n t

ra c tu a l re l a ti o n 

### b e tw e e n th e c o mp l a i n ant an d a th i r d p arty ; ( 2 ) p urp o s e fu l a c t i o n o n th e p art o f th e d e fe n d ant," s p e c i fi c a ll y i nt e n d e d t o h arm th e e x i s t i n g r e l at i o n> o r t o p r e v e nt a p ro s p e c t i v e r e l at i o n fr o m o c c urr i n g ; ( 3 ) th e ab s e n c e o fp r i v il e g e o r j u s t i fi c at i o n o n th e p art o f th e d e fe n d ant ; an d ( 4 ) th e o c c a s i o n i ng o f a c tu a l le g a l d a m age a s a res u lt o

f t h e d e f e n d a n t ' s c o n d u c t. " ? 

### P l a i nt i ff s ar g u e d e fe n d ant s > c o n d

u c t i n j ur e d th e i r c o ntra c t

u a l r e l at i o n s w i th p e r s o n a l i n j ur y att o rn e y s an d e mp l o y e e s . H o w e v e r . C av o t o e xp l i c i t l y d e n i e d h av i n g any r e fe rr a l o r c o ntra c tu a l r e l at i o n s h i p w i th p e r s o n a l i n j ur y att o rn e y s . r '' A s s u c h , th e r e w a s n o c o ntra c tu a l r e l at i o n s h i p th at c o u l d b e i nt e r fe r e d w i th .

1 7 P l. P o s t - T r i a l M e m o , 

### * 5 9 , 1 8 P l. P o s t - T r i a l M e m o , * 4 5 . 1 9 M a v e r i c k S t e e l C o . , LL C v

. D i c k C o r p / B a r t o n M a / o w , 5 4 A . 3 d 3 5 2 , 3 5 5 ( P a . S u p e r C t . 2 0 1 2 ) ( e m p h a s i s a d d e d )
. 2 0 R e c o r d , 11 /4 /2 0 1 6 , 

### * 2 5 , 1 4 - • 2 6 , 1 6 . 5W i th r e s p e c t t o e mp l o y e e r e l at i o n s h i p s a ff e c t e d , p l a i n t i ff

s p r e s e n t e d D r . A n i c e L e B e o u f ( " L e B e o u f

' ) - a c h i ro p ra c t o r w h o fo rm e rl y w o rk e d fo r C av o t o . 2 1 L e B e o u f t e s t i fi e d s h e r e s i g n e d fr o m C av o t o ' s e mp l o ym e n t p art l y b e c au s e o f S t at e F arm ' s i nv e s t i g at i o n i n t o C av o t o . 2 2 H o w e v e r , w h i l e d e f

e n d an t s ' c o n d

u c t m ay h av e b e e n th e c au s e o f h e r r e s i g n at i o n , d e fe n d ant s c ann o t , a s a m att e r o f l aw , b e h e l d li ab l e fo r c o n d u c t i n g i nv e s t i g at i o n s i n t o p o s s i b l e i n s uran c e fr au d . P e nn s y l v an i a c o urt s h av e g ran t e d a c o n d i t i o n a l p r i v il e g e t o i n s uran c e c o mp an i e s fo r c o n d

u c t i n g th e s e typ e s o f i nv e s t i g at i o n s b e c au s e o f th e b e li e f th at i t i s i n s o c i e ty ' s b e s t i n t e r e s t t o e xp o s e fab r i c at e d i n s uran c e c l a i m s . 2 3 M o r e o v e r , th e m e r e e x i s t e n c e o f li t i g at i o n c ann o t b e th e b a s i s fo r a t o rt i o u s i n t e r fe r e n c e c l a i m . 2 4 T hi s c o urt a l i gn s w i th th o s e c o urt s an d d e c li n e s t o c h ill th e i mp o rt an t i nv e s t i g at i v e fun c t i o n o f i n s ur an c e c o mp an i e s . T h e r e fo r e , th i s c o urt fi n d s th e g ran t o f n o n - s u i t o n th e cl a i m o f t o rt i o u s _ i nt e r fe r e n c e a g a i n s t a ll d e fe n d ant s w a s p ro p e r . 

### I V . P l a i n t i ff

s > C l a i m o f D e fa m a t i o n . S i n c e p l a i nt i ff

s fa i l e d t o p l e a d th e n e c e s s ary e l e m e nt s o f a t o rt i o u s i n t e r fe r e n c e o r a b u s e o f p ro c e s s c l a i m , d e fe n d ant s ' c o n d u c t an d s t at e m e n t s c o u l d o n l y b e u s e d t o e s t ab li s h a c l a i m fo r d e fam at i o n . T o e s t ab li s h a c l a i m fo r d e fam at i o n , a mu s t p r i v at e fi g ur e p l a i n t i ff mu s t p ro v e : 

### H (I ) T h e d e fam at o r

y c h ara c t e r o f th e c o mmun i c at i o n ; ( 2 ) i t s p u b li c at i o n b y th e d e fe n d ant ; ( 3 ) i t s a p p l i c at i o n t o th e p l a i n t i ff ; ( 4 ) th e un d e r s t an d i n g b y th e r e c i p i e n t o f i t s d e fam at o r y m e an i n g ; ( 5 ) th e un d e r s t an d i n g b y th e r e c i p i e n t o f i t a s i n t e n d e d t o b e a

p p li e d t o 2 1 R e c o r d , 1 1 / 1 / 2 0 1 6 , * 4 7 , 1 3 - 1 5 . 2 2 R e c o r d , 1 1 / 1 / 2 0 1 6 , * 5 1 , 2 0 · 2 5 . 2 3 S e e C h i

c a r e J/ a v . Pa s s o n t , 4 9 4 A . 2 d 1 10 9 , 11 13 ( P a . S u p e r. C t. 1 9 8 5 ) ; S e e a l s o F o r s t e r v . Ma n c h e s t

e r , 1 8 9 A . 2 d 1 4 7 1 1 5 0 ( P a . 1 9 6 3 ) ( fi n d i n g c o n d i t i o n a l p r i v il e g e e x i s t e d I m m u n i z i n g I n s u r a n c e co m p a n y fr o m i n v a s i o n o f p r i v a c y li a b i l i t y fo r fo ll o w i n g a n d d o c u m e n t i n g m o v e m e n t s o f a n i nj u r e d cl a i m a n t b e c a u s e " i t i s i n t h e b e s t i n t e r e s t s o f s o c i e t y t h a t v a li d cl a i m s b e a s c e rt a i n e d a n d f a b r ic a t e d cl a i m s b e e x p o s e d . " ) 2 4 S e e P e l

o g o ttl v . C o h e n , 5 3 6 A. 2 d 13 3 7 , 1 3 4 3 ( P a . S u p e r C t. 1 9 8 7 ) { u p h o l d i n g t r i a l c o u rt s u s t a i n i n g p r e li m i n a r y o b j e c t i o n s b e c a u s e t h e e x i s t e n c e o f a n e a r li e r l a w s u i t fil e d b y t h e d e f e n d a n t a g a i n s t t h e p l a i n ti ff c a n n o t b e t h e b a s i s o f d e fa m a t i o n o r t o rt i o u s i n t e rf e r e n c e cl a i m s s i n c e a l a w s u i t l s a b s o l u t e l y j u d i ci a ll y p r i v il e g e d )
.

6

### th e p l a i nt i ff ; ( 6 ) s p e ci a l h arm r e s u l t i n g t o th e p l a i nt i ff fr o m i t s p u b l i c at i o n ; and ( 7 ) 

### a

b u s e o f a c o n d i t i o n a ll y p r i v i l e g e d o c c a s i o n . " 2 5 

### U n d e r c e rt a i n 

### c ir c um s t an c e s , att o rn e y s , w i tn e s s e s , j u d g e s , an d v i c t i m s ar e a c c o r d e d a b s o l ut e i mmun i ty fr o m l i ab il i ty fo r d e fam at i o n - o th e rw i s e kn o w n a s th e j u d i c i a l p ri v il e g e . T h e p r i v i l e g e p ro h i b it s any o f th e i r s t at e m e nt s - wh i c h ar e m a d e i n th e c o ur s e o f a j u d i c i a l p ro c e e d i n g , an d . wh i c h ar e e v e n m i n i m a ll y p e rt i n e n t an d m at e r i a l t o th e r e dr e s s s o u g h t i n th at p ro c e e d i n g - fr o m b e i n g i ntro d u c e d i n t o e v i d e n c e i n a l at e r s u i t fo r d e fam at i o n . 2 6 

### H e r e , th e j u d i c i a l p r i v i l e g e a p p l i e d t o b ar th e t e s t i m o ny o f m any o fp l a i n t i ff

s ' w i tn e s s e s . P l a i n t i ff s w e r e a b l e t o p r e s e nt o n e w i tn e s s - B e n d a - wh o c o u l d e s t ab li s h d e fam at o r y s t at e m e nt s m a d e b y R o s e n au . N e v e rth e l e s s , th e 

### j ur y d e t e rm i n e d th e s t at e m e nt s o c c urr e d p r i o r t o Jun e 1 7 , 2 0 0 4 , an d , th e r e fo r e , w e r e b e y o n d th e o n e - y e ar s t at ut e o f li m i t at i o n s fo r a d e fam at i o n cl a i m . A s s u c h , p l a i nt i ff

s ' c l a i m fo r d e fam at i o n s i m i l arl y fa i l e d . A . D e fam at o r

y S t at e m e n t s M u s t B e P l e d i n th e C o mp l a i nt. I n i t i a ll y , th i s c o urt n o t e s p l a i nt i ff s ' c o mp l a i n t fo r d e fam at i o n fa i l e d t o a d e qu at e l y c o mp l y w i th P e nn s y l v an i a c a s e l aw an d p r o c e d ur e . E a c h d e f am at o r y s t at e m e n t 

### i

s a s e p arat e c au s e o f a c t i o n , whi c h mu s t b e p i e d w i th p art i c u l ar i ty . 2 7 

### T h at m e an s , th e fa c e o f th e c o mp l a i n t mu s t s t at e , s p e c i fi c a ll y , " Wh at a ll e g e d l y d e fam at o r

y s t at e m e n t s w e r e m a d e , an d t o wh o m th e y w e r e m a d e . " 2 8

2 5 K e ll e y v . Pi tt m o n , 1 5 0 A. 3 d 5 9 , 6 7 ( P a . 2 0 1 6 ) ( q u o t i n g 4 2 P a . C
. S
. A . § 8 3 4 3 )
. 2 6 R i c h m o n d v

. Mc Ha l e , 3 5 A . 3 d 77 9 , 7 8 4 ( P a . S u p e r . C t. 2 0 1 2 ) ; s e e o l s o F r e u n d l i c h & Lit t m a n , L L C v

. F e i e r s t e i n , 2 0 1 7 W l 71 2 9 11 a t * 3 ( P a . S u p e r . Ct . 2 0 1 7 ) ( " C o u rt s h a v e c o n t i n u a ll y p r o t e c t e d 

### a v a r i e t y o f c o m m u n i c a ti o n s m a d e a t v a r i o u s p r o c e e d i n g s a s w e ll a s s t a t e m e n t s w it h o n l y m i n o r r e l a ti o n to t h e u n d e r l y i n g ca s e . "

) ( e m p h a s i s a d d e d )
. 2 7 S e e G r

a h a m v . T o d a y ' s S p i r i t , 4 6 8 A . 2 d 4 5 4 , 4 5 7 { P a . 1 9 8 3 )
. 2 8 Mo s e s v

. Mc W ili a m s , 5 4 9 A . 2 d 9 5 0 , 9 6 0 ( P a . S u p e r . C t. 1 9 8 8 )
. 7H e r e , p l a i n t i ff s ' am e n d e d c o mp l a i n t fa il e d t o i d e nt i f y t o w h o m th e d e fam at o r y s t at e m e nt s w e r e m a d e . 2 9 H o w e v e r , i t d i d i d e n t i fy fo ur a ll e g e d l y d e fam at o ry s t at e m e nt s m a d e b y d e fe n d an t s . 3 0 S e tt i n g a s i d e th at th e fa il ur e t o i d e nt if y t o w h o m th o s e s t at e m e n t s w e r e m a d e s h o u l d b e fat a l t o p l a i nt i ff

s ' d e fam at i o n cl a i m , th i s c o urt w i ll , at th e l e a s t , l i m i t p l a i n t i ff s ' r e c o v e ry t o th o s e fo ur s t at e m e nt s . A s s u c h , th e e x c l u s i o n o f any o th e r w i tn e s s - w h o s e p urp o s e w a s t o p r e s e nt e v i d e n c e o f a s t at e m e n t n o t p i e d i n th e c o mp l a i n t - w a s h arm l e s s e rr o r. B . T h i s C o urt P ro p e rl y Ap p li e d th e Ju d i c i a l P ri v i l e g e t o P r e c l u d e Li ab i l i ty fo r S t at e m e n t s M a d e D uri n g th e C o ur s e o f Ju d i c i a l P r o c e e d i n g s D uri n g th e c o ur s e o fth e i nv e s t i g at i o n i nt o C av o t o , R o s e n au a ll e g e d l y m a d e d e fam at o r y s t at e m e nt s . a

b o ut C av o t o t o p e r s o n a l i n j ury att o rn e y s w h o h a d cl i e nt s b e i n g tr e at e d b y C av o t o . H o w e v e r , b e c au s e th e s t at e m e n t s t o o k p l a c e d uri n g th e c o ur s e o f

j u d i c i a l p ro c e e d i n g s a

b o ut m att e r s p e rt i n e n t an d m at e r i a l t o th o s e p ro c e e d i n g s , th e j u d i c i a l p ri v i l e g e b ar s th e m . f r o m b e i n g a dm i tt e d t o s u

p p o rt a c l a i m fo r d e fam at i o n . T h e j u d i c i a l p r i v il e g e p ro h i b i t s th e s t at e m e n t o f any v i c t i m , w itn e s s , j u d g e , o r att o rn e y w hi c h i s i s s u e d i n th e c o ur s e o f a j u d i c i a l p ro c e e d i n g , an d w h i c h ' i s e v e n m i n i m a ll y p e rt i n e nt an d m at e r i a l t o th e r e dr e s s s o u g h t i n th at p ro c e e d i n g - fr o m b e i n g i n tro d u c e d i n t o e v i d e n c e i n a l at e r s u i t fo r d e f

am at i o n . 3 1

2 9 C o m p t. ,i 6 6 . 3 0 I d . ( T h e a ll e g e d d e fa m a t o r y s t a t e m e n t s w e r e t h a t : 1 ) p l a i n t i ff i s " d i rt y " a n d " u n d e r i n v e s t i g a t i o n " ; 2 ) " S t a t e F a r m i s b r i n g i n g a R I C O a c t i o n " a g a i n s t p l a l n t l ff ; 3 ) P l a i n t i ff l s " r e a l b a d n e w s " ; a n d 4 ) o t h e rs s h o u l d " s t a y a w a y fr o m ( p l a i n t i ff !" } , 3 1 R i c h m o n d

, 3 5 A .3 d 77 9 , 7 8 4 ( P a . S u p e r . C t. 2 0 1 2 ) ; s e e a l s o F e i re r s te i n , 2 0 1 7 W L 71 2 9 1 1 a t * 3 ( " C o u rt s h a v e c o n ti n u a ll y p ro t e c t e d a v a r i e t y o f c o m m u n i c a t i o n s m a d e a t v a r i o u s p r o c e e d i n g s a s w e ll a s s t a te m e n t s w i th o n l y m i n o r r e l a ti o n to t h e u n d e rl y i ng c a s e . "

} ( e m p h a s i s a d d e d )
.

8

### T h e p r i v i l e g e e x i s t s i n o r d e r t o p ro m o t e fr e e d o m o f a c c e s s t o th e c o m 1 s . 3 2 

### A s s u c h , th e

s c o p e o f th e p r i v i l e g e i s v e ry b ro a d an d e n c o mp a s s e s a ll 

### c o mmun i c at i o n s m a d e d ur i n g th e c o ur s e o f a n y 

### s t a g e o f a j u d i c i a l p ro c e e d i n g . 3 3 

### T h i s i n cl u d e s " e v e n l e s s fo rm a l c o mmun i c at i o n s s u c h a s p r e l i m i n ar

y c o n fe r e n c e s an d c o rr e s p o n d e n c e b e tw e e n c o un s e l i n furth e ran c e o fth e c l i e n t' s i nt e r e s t . a 3 4 

### F urth e rm o r e , th e p r i v il e g e c ann o t b e d e s tro y e d b y a b u s e , an d th e r e i s a p r e s ump t i o n th at i t a p p l i e s . A s n o t e d b y th e P e nn s y l v an i a S u p e r i o r C o urt , " th e e x i s t e n c e o f th e p ri v il e g e d o e s n o t d e p e n d u p o n th e m o t i v e o f

th e d e cl ar ant i n m ak i n g th e a ll e g e d d e f am at o r y s t at e m e nt. T h e p r i v il e g e i s a

b s o l ut e an d c ann o t b e d e s tro y e d b y a b u s e . " 3 5 

### A d d i t i o n a ll y , " A ll d o ub t a s t o w h e th e r th e a ll e g e d d e f

am at o r y c o mmun i c at i o n w a s i n d e e d p e rt i n e nt an d m at e ri a l t o th e r e l i e f o r r e dr e s s s o u g h t i s t o b e r e s o l v e d i n fav o r o f p e rt i n e n c y an d m at e ri a li ty . " 3 6 

### T h e r e fo r e , any c o mmun i c at i o n , i s s u e d i n th e c o ur s e o fa j u d i c i a l p r o c e e d i n g , th at i s e v e n m i n i m a ll y p e rt i n e nt an d m at e r i a l t o th at p r o c e e d i n g , i s a ff o r d e d i mmun i ty - n o m att e r th e d e c l ar ant ' s m o t i v e . 3 7 

### T h i s d o e s n o t> h o w e v e r , l e av e a d e fam e d p arty w i th o ut p ro t e c t i o n . A c o urt o fl aw i s s t ill a b l e t o i s s u e d i s c i p l i n e fo r d e fam at o r y s t at e m e nt s - s u c h a s i s s u i n g s an c t i o n s o r h o l d i n g th e d e c l arant i n c o nt e mp t. 3 8 

### P l a i nt i ff s p r e s e nt thr e e r e a s o n s w hy th i s c o urt e rr e d i n a p p l y i n g th e j u d i ci a l p r i v i l e g e . F i r s t , p l a i nt i ff

s c l a i m th i s c o urt fa i l e d t o t ak e i nt o c o n s i d e rat i o n th e i nt e nt o f th e d e c l aran t i n a s s e s s i n g w h e th e r th e s t at e m e n t w a s p e rt i n e nt an d m at e ri a l t o li ti g at i o n . 3 9 

### S e c o n d , p l a i nt i ff s

3 2 R i c m o n d , 3 5 A. 3 d at 7 8 4 . 3 3 t d . 3 4 I d . at 7 8 5 . 3 5 I d . at 7 8 4 - 8 5 . 3 6 i d . a t 7 8 5 . 3 7 td. at 7 8 4 - 8 5 . 3 8 / d . a t 7 8 4 . 3 � P l. P o s t - T r i a l M e m o , ** 3 6 - 3 7 . 9c l a i m th i s c o urt i n c o rr e c t l y d e t e rm i n e d th at th e e x cl u d e d s t at e m e nt s w e r e p e rt i n e n t an d m at e r i a l

t o l i t i g at i o n . " T h i r d , th at th i s c o urt a p p li e d th e p r i v i l e g e i n c i r c um s t an c e s w h e r e th e s a fe g u ar d s o f th e j u d i c i a l p ro c e s s w e r e n o t p r e s e nt. 4 1 T h i s c o urt fi n d s : (] ) th e i n t e nt o f th e d e c l ar ant i s n o t r e l e v ant i f p r o c e e d i n g s h av e c o mm e n c e d ; ( 2 ) a ll th e s t at e m e nt s c o mp l a i n e d o f w e r e p e rt i n e nt an d m at e r i a l t o th e ir un d e r l y i n g li t i g at i o n ; an d ( 3 ) th e j u d i c i a l s a fe g u ar d s w e r e p r e s e nt. T h e r e fo r e , th e j u d i c i a l p r i v i l e g e w a s p ro p e r l y a

p p li e d t o b ar m any o fp l a i nt i ff s ' w i tn e s s e s . 1 . T h e i n t e n t o fth e d e c l aran t i s n o t a s s e s s e d w h e n th e s t at e m e n t i s m a d e d ur i n g th e c o ur s e o f o n g o i n g j u d i c i a l p r o c e e d i n g s P l a i nt i ff s ' c l a i m , w h e n l o o k i n g at th e t o t a li ty o f th e ci r c um s t an c e s , i s th at S t at e F arm ' s tru e i n t e nt w a s t o p ut C av o t o o ut o fb u s i n e s s r ath e r th an t o p ur s u e any r e dr e s s s o u g h t i n li t i g at i o n . 4 2 T o s u

p p o rt th at p o s i t i o n , th e y ar g u e th at th e r e w a s a p att e rn o f a c t s an d " h ar d b a ll li t i g at i o n " t a c t i c s , t ak e n o v e r th e c o ur s e o f s e v e ra l d i ff e r e n t l aw s u i ts , s h o w i n g S t at e F arm ' s tru e i n t e n t w a s t o p ut hi m o ut o fb u s i n e s s . 4 3 N e v e rth e l e s s , th e " tru e i n t e n t " o f th e d e c l aran t i s n o t r e l e v an t 

### i f li t i g ati o n h a s b e e n 

### c o mm e n c e d . " A ft e r a l aw s u i t h a s b e e n fil e d , th e p r i v il e g e i s d e fe at e d o n l y u p o n a d e t e rm i n at i o n th at: ( 1 ) th e att o rn e y ' s c o mmuni c at i o n w a s n o t p e rt i n e n t o r m at e r i a l t o th e r e dr e s s s o u g h t i n th e l i t i g at i o n ; o r ( 2 ) th e n o rm a l s a fe gu ar d s o fth e j u d i c i a l p ro c e s s ar e n o t p r e s e nt. 4 5

4 0 P l . P o s t - T r i a l M e m o , ** 3 8 - 4 0 . 4 1 P l . P o s t - T r i a l M e m o , ** 4 0 - 4 4 . 4 2 P l. P o s t - T r i a l M e m o , * 3 7 . 4 3 / d . 44 S e e R i c h m o n d

, 3 5 A . 3 d a t 7 8 4 - 8 5 ( " T h e e x i s t e n c e o f t h e p r i v i l e g e d o es n o t d e p e n d o n t h e m o ti v e o

f t h e d e f e n d a n t i n m a k i n g t h e a ll e g e d l y d e f a m a t o ry s tat e m e n t . T h e p r i v i l e g e I s a b s o l u t e a n d c a n n o t b e d es t ro y e d b y a b u s e . " ) ( e m p h a s i s a d d e d )
. 4 5 S e e P o s t , 5 0 7 A . 2 d 3 5 1 ( f

i n d i n g l e t t e r a c c u s i n g o p p o s i n g c o u n s e l o f m i s c o n d u c t w a s n o t p r i v il e g e d b e c a u s e i t w a s s e n t t o p e rs o n s u n r e l a t e d t o t h e p e n d i n g li t i g a t i o n , i n cl u d i n g t h e D i s ci p li n a r y B o a r d , a n d w a s t h e r e fo r e n o t p e rt i n e n t t o t h e r e l i e f s o u g h t i n t h e li t i g a t i o n ) ; S e e P te i s e r v. R o s e n z w e i

g , 6 4 6 A. 2 d 11 6 6 1 11 6 8 { P a . 1 9 9 4 ) ( h o l d i n g s t a t e m e n t s b e fo r e a p r i v a t e " f e e d i s p u t e " p a n e l w e r e n o t p r i v i l e g e d d u e t o p a n e l ' s l a c k o f a b i li t y t o p u n i s h d e fa m a t o ry s t a t e m e n t s )
. 10

### E v e n th e m o s t e g r e g i o u s an d i n s u l t i n g c o mm e n t s m a d e 

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### th e p r i v i l e g e a p p li e d b e c au s e th e s t at e m e n t w a s p e rt i n e n t an d m at e r i a l t o th e un d e r l y i n g li t i g at i o n , an d s p e c i fi c a ll y ? o t e d

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f t h e d e f e n d a n t i n m ak i n g th e a ll e g e d d e fam at o r y s t at e m e nt. T h e p r i v i l e g e i s a

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### a b u s eJ' '" T h e i n t e n t o fth e d e cl aran t i s o n l y r e l e v an t wh e n th e s t at e m e n t i s m a d e p r i o r t o l i t i g at i o n . I n th at s i tu at i o n , c o urt s d e t e rm i n e w h e th e r th e d e cl arant i n t e n d e d th at li t i g at i o n w o u l d fo ll o w th e s t at e m e nt. 

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### an d th e s t at e m e n t i s p e rt i n e nt an d m at e r i a l t o th at c o nt e mp l at e d li t i g at i o n , th e n th e s t at e m e nt i s p ro t e c t e d 

### b y th e j u d i ci a l p r i v i l e g e . 5 0 

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d i s , a t e a c h e r s u e d a fo rm e r s t u d e n t o v e r th e s tu d e nt ' s c l a i m th at th e t e a c h e r h a d a s s au l t e d h e r. 5 1 

### T h e s t u d e n t m a d e th e c l a i m t o a fr i e n d at T h ank s g i v i n g - s e v e n y e ar s a ft e r th e a ll e g e d a s s au l t. 5 2 

### T h e P e nn s y l v ani a S u p r e m e C o urt fo un d th e p r i v i l e g e d i d n o t a p p l y b e c au s e n o j u d i c i a l p ro c e e d i n g s h a d c o mm e n c e d , an d th e s t

u d e n t h a d n o t m a d e th e s t at e m e n t w i th th e i nt e nt i o n th at l i t i g at i o n w o u l d

4 5 S e e R i c h m o n d , 3 5 A . 3 d 77 9 ; a l

s o F e i e r s t e i n , 2 0 1 7 W L 7 1 2 9 11 at * 3 . 4 7 I d . at 7 8 1. 4 8 I d . 4 9 td . at 7 8 4 - 8 5 ( e mp h a s i s a d d e d ) . s o S e e S c h o n n e v

. A dd i s , 1 2 1 A . 3 d 9 4 2 ( P a . 2 0 1 5 ) . 5 1 I d . at 9 4 4 . 5 1 I d . a t 9 4 3 . 1 1fo ll o w . 5 3 I n s t e a d , th e s t u d e n t b e l i e v e d s h e w a s c o n fi d i n g i n a " fr i e n d " , an d s h e " d i d n o t i n t e n d " fo r th e fri e n d t o r e p o rt i t t o any o n e e l s e . 5 4 H e r e , o n l y o n e w i tn e s s , B e n d o , s p o k e w i th R o s e n au p r i o r t o th e c o mm e n c e m e nt o f li t i g at i o n , an d i n a s s e s s i n g w h e th e r th e p r i v i l e g e a p p li e d , th i s c o urt an a l y z e d R o s e n au ' s i n t e n t at th e t i m e h e m a d e th e s t at e m e nt. 5 5 I n o r aro un d 2 0 0 4 , R o s e n au an d B e n d a w e r e o p p o s i n g c o un s e l i n a c ar a c c i d e n t l aw s u i t i nv o l v i n g a S t at e F arm i n s ur e d , S h ann o n O ' N e i ll ( " O ' N e i ll " ) . 5 6 O ' N e ill h a d c o l li d e d w i th a v e h i cl e th at w a s c arry i n g tw o p a s s e n g e rs - J e ro m e B ak e r ( " B ak e r " ) an d R o b e rt Jo n e s ( " Jo n e s " ) - w h o w e r e b e i n g r e p r e s e n t e d b y B e n d os J awfi rm . 5 7 I n i t i a ll y , B e n d o fil e d a l aw s u i t a g a i n s t O ' N e ill o n b e h a l f o f Jo n e s , b ut n o t B ak e r . 5 8 P ri o r t o fi li n g th e B ak e r l aw s u i t , b ut a ft e r c o mm e n c e m e n t o f th e Jo n e s s u i t , R o s e n au an d B e n d o e n g a g e d i n tw o p h o n e c a ll s i n w h i c h R o s e n au m a d e c o mm e nt s a b o ut C av o t o - th e tr e at i n g c h i r o p ra c t o r o fb o th Jo n e s an d B ak e r . 5 9

5 3 i d. at 9 5 2 . 5 4 I d . at 9 4 3 - 4 4 . s s W i t h i n t h i s s e c t i o n , p l a i n ti ff i d e n t ifi e s d e fe n d a n t s ' s t a t e m e n t s t o C l a r k P e a s e , E s q u i r e , R o b e rt D a t n e r , E s q u i r e , L a w r e n c e D e M a r c o , E s q u i r e , Fr e d H o rn , E s q u i r e , a n d W a r r e n S i e g e l , E s q u i r e , a s s i t u a ti o n s t h a t , w h e n t a k e n t o g e t h e r , d e m o n s t ra t e d e f e n d a n t s ' I n t e n t w a s t o i nj u re C a v o t o ' s r e p u t a t i o n . H o w e v e r , a ll o f t h o s e s t a t e m e n t s t o o k p l a c e d u r i n g t h e c o u rs e o f o n g o i n g ll t i g a t l o n . S e e D e f
. P o s t · T ri a l , E x . Q, * 3 9 ( P e a s e c o n v e rs a t i o n w a s w i t h i n a d e p o s i t i o n ) ; I d

. E X . R , u 7 . g ( D a t n e r c o n v e rs a t i o n w a s w i t h i n a d e p o s i t i o n ) ; I d . E x . U , • 77 ( D e M a r c o c o n v e rs a t i o n w a s w i t h i n a s e t t l e m e n t d i s c u s s i o n ) ; I d . E x . V , ** 3 4 · 5 ( H o rn c o n v e rs a t i o n o c c u rre d a ft e r a n I n s u r a n c e cl a i m h a d b e e n fil e d } ; I d

. E x . X ( S i e g e l c o u l d n o t r e c a ll w h e n o r w h o m a d e t h e s t a t e m e n t s , b u t b e li e v e d t h e y w e r e m a d e a t a n a r b i t r a t i o n h e a r i n g }
. F u rt h e r m o r e , a s i d e fr o m t h e t e s t i m o n y o f t h e s e w i t n e s s e s b e i n g e x cl u d e d b a s e d o n t h e j u d i ci a l p ri v il e g e , t h i s c o u rt a l s o fo u n d t h e i r r e c o ll e c t i o n s t o b e e x t r e m e l y i m p r e ci s e a n d w o u l d h a v e e x cl u d e d t h e i r t e s t i m o n y b a s e d o n l a c k o f p e rs o n a l k n o w l e d g e . 5 6 R e c o r d , 1 1 /2 /2 0 1 6 , • 21 6 , 4 - 1 7 . � 7 I d . a t * 2 1 8 , 2 1 · * 2 1 9 , 5 . 5 8 td . a t * 2 1 7 , 2 2 - * 2 1 8 , 6 . 5 9 R e c o r d , 1 0 / 3 1 / 2 0 1 6 , * 1 0 8 , 4 . 

### 1 2T h e fi r s t c o nv e r s at i o n w a s c o mm e n c e d b y 

### R o s e n au . t '' an d w a s fo r th e p ur p o s e o f s p e ak i n g a

b o ut th e B ak e r 

### l aw s u i t , " ! w h i c h h a d n o t y e t b e e n fil e d . 6 2 D ur i n g th e c o nv e r s at i o n , B e n d o a s k e d 

### i f R o s e n au w o u l d a c c e p t s e rv i c e o fp ro c e s s , 6 3 an d R o s e n au i n fo rm e d B e n d o th at th e r e w o u l d b e n o s e tt l e m e n t o ff e r s i n th e c a s e . 6 4 Wh e n B e n d o a s k e d w hy , R o s e n au r e p li e d ,
" y o u m ay h av e a p ro b l e m w i th y o ur d o c t o r " - r e fe rr i n g t o C av o t o . 6 5 R o s e n au a ll e g e d l y w e nt o n t o c a ll C av o t o " b a d n e w s " an d a " d i rty d o c t o r " , an d s t at e d th at h e w a s un d e r i nv e s ti g at i o n . 6 6 H e furth e r li k e n e d C av o t o t o D r . M atura - a d o c t o r w h o h a d b e e n i n d i c t e d fo r fr au d . 6 7 B e n d o fe l t th e s e c o mm e nt s w e r e unu s u a l an d i n a p p r o p r i at e . P " H e t e s ti fi e d th at i t i s n at ura l fo r a d e fe n s e att o rn e y t o a s k qu e s t i o n s a b o ut th e tr e at i n g d o c t o r an d t o m ak e s t at e m e nt s a b o ut th e d o c t o r ' s l a c k o fqu a li fi c at i o n s , b ut th at e qu at i n g a d o c t o r w i th s o m e o n e w h o h a d b e e n . i n d i c t e d fo r f

rau d i s " s o m e th i n g d i ff

e r e nt. " 6 9 N e v e rth e l e s s , d e s p i t e B e n d o ' s b e l i e f th at th e s t at e m e nt s w e r e i n a p p ro p r i at e , th e y w e r e p e rt i n e n t an d m at e r i a l t o th e B ak e r li t i g at i o n th at R o s e n au i n t e n d e d w o u l d fo ll o w . R o s e n au i n i t i at e d th e c o nv e r s at i o n w i th th e i nt e n t o f d i s c u s s i n g li t i g at i o n th at d i d o c c ur . A ft e r a ll , th e 

### J o n es c a s e - w hi c h aro s e fr o m th e s am e a c c i d e n t - w a s a l r e a dy i n l i t i g at i o n , B e n d o w a s s e e k i n g t o . h av e R o s e n au a c c e p t s e rv i c e o f th e B ak e r c o mp l a i n t , an d R o s e n au h a d t ak e n th e s t an c e th at n o s e tt l e m e n t o ff

e r s w o u l d b e m a d e . T h e r e fo r e , a b s e n t B ak e r d e c i d i n g n o t t o fil e th e l aw s u i t o r l at e r c h o o s i n g n o t to p ur s u e it , li t i g at i o n w a s b o un d t o e n s u e .

6 0 I d . at * 1 0 9 , 1 0 - 1 2 . 6 1 I d . at * 1 1 2 , 1 8 - 1 9 . 6 2 I d . at • 11 1 , 1 4 - 1 6 . 6 3 I d . at * 11 2 , 1 9 - 2 2 . 6 4 I d . at * 11 3 , 1 9 - 2 1 . s s I d . at * 1 13 , 2 1 - 2 4 . 6 6 ld. at * 11 4 , 1 2 - 2 1 . <> 1 I d . 6 8 I d . at 11 5 , 4 - 10 . 6 9 I d . at * 11 5 , 11 - 

### * 1 1 6 , 8 . 13

### T h e s t at e m e nt s w e r e a l s o p e rt i n e nt an d m at e ri a l t o th e r e dr e s s th at R o s e n au w o u l d b e

s e e k i n g i n th e 

### B a k

e r l aw s u i t. A tr e at i n g d o c t o r ' s c r e d i b il i ty i s at i s s u e i n a p e r s o n a l i n j ur y l aw s u i t. E v e n i n 

### R i c h m o n d

- w h e re th e s t at e m e nt w a s a p e r s o n a l att a c k o n o p p o s i n g c o un s e l an d ar g u ab l y m i n i m a ll y r e l at e d t o th e li t i g at i o n - th e p r i v i l e g e a p p li e d . T hu s , R o s e n au ' s s t at e m e nt s a b o ut C av o t o w e r e p e rt i n e nt an d m at e r i a l t o c o n t e mp l at e d li t i g at i o n an d p ro p e rl y e x cl u d e d b a s e d o n th e j u d i ci a l p r i v i l e g e . C o nv e r s e l y , i n th e s e c o n d c o nv e r s at i o n , R o s e n au ' s s t at e m e nt s w e r e n o t p e rt i n e nt an d m at e ri a l t o any li t i g at i o n h e i nt e n d e d w o u l d fo ll o w . In s t e a d , R o s e n au i nt e n d e d t o g i v e B e n d o a dv i c e o n h o w t o h an d l e fut ur e c l i e nt s r e fe rr e d b y 

### C av o t o - wh o m ay n o t h av e a c l a i m a g a i n s t a S t at e F arm i n s ur e d . 7 0 

### T h e s e c o n d c o nv e r s at i o n w a s i n i t i at e d b y B e n d o an d w a s fo r th e p urp o s e o f a s k i n g R o s e n au fo r 

### a dv i c e . " S p e c ifi c a ll y , B e n d o a s k e d ,

· " [ L ] o o k , wh at y o u t o l d m e h a s u p s e t m e b e c au s e I h av e c a s e s w i th [ C av o t o ]. A d e c e nt am o unt o f my c li e nt s ar e tr e at i n g at h i s o ffi c e s . T h i s a ff e c t s m e . Wh at ' s g o i n g o n ? . . . G i v e m e th e a dv i c e I n e e d a s t o wh at ' s g o i n g o n s o I c an m ak e th e ri g h t d e c i s i o n . ? " I n r e s p o n s e , R o s e n au a dv i s e d B e n d a n o t t o s e n d any futur e cl i e nt s t o C av o t o fo r tr e atm e nt o r a c c e p t c li e nt r e fe r ra l s fr o m h i m . 7 3 

### B y g i v i n g a dv i c e o n h o w t o h an d l e fut ur e c a s e s , wh i c h m ay n e v e r ar i s e , R o s e n au w a s n o t s p e ak i n g a

b o ut m att e r s p e rt i n e nt t o c o nt e mp l at e d li t i g at i o n . F urth e r , i t i s li k e l y th at , fr o m th at p o i nt fo rw ar d , at l e a s t o n e c a s e r e fe rr e d b y C av o t o w o u l d n o t h av e i nv o l v e d a c l a i m a g a i n s t a S t at e F arm i n s ur e d ; thu s , R o s e n au w a s n o t e v e n r e p r e s e nt i n g a c li e nt ' s i nt e r e s t. T h e r e fo r e , th e

7 0 I d . at * 11 9 , 6 - 1 3 . 11 ! d . a t * 11 8 , 2 1 - 2 5 . 72 I d . at * 11 8 , 6 - 1 4 . 73 I d . at * 11 9 , 6 - 13 . 1 4j u d i c i a l p r i v i l e g e d i d n o t 

### a p p l y t o s h i e l d R o s e n au fr o m li ab i li ty fo r th e s t at e m e n t s h e m a d e i n th at s e c o n d c o nv e r s at i o n . T h i s c o urt w ill n o t e x t e n d th e " i n t e nt " i n qu i r y t o s t at e m e nt s m a d e d

uri n g th e c o ur s e o f l i t i g at i o n . T h e l aw i s c l e ar th at th e p r i v i l e g e i s a b s o l ut e an d c ann o t b e d e s tro y e d b y a b u s e . R o s e n au ' s m o t i v e o r i n t e nt i n m ak i n g a s t at e m e nt i s i r r e l e v ant w h e n i t i s m a d e d ur i n g th e c o ur s e o f li t i g at i o n . A s i d e fr o m th e B e n d o c o nv e r s at i o n s , a ll o f R o s e n au ' s a ll e g e d d e fam at o ry s t at e m e nt s t o o k p l a c e d

ur i n g th e c o ur s e o f

l i t i g at i o n . 7 4 T h e r e fo r e , a s l o n g a s th e y w e r e p e rt i n e n t an d m at e r i a l t o th e o n g o i n g l i t i g at i o n , th e y w e r e p ro p e r l y b arr e d b y th e j u d i c i a l p r i v i l e g e . 2 . T h e e x cl u d e d s t at e m e nt s w e r e p e rt i n e nt an d m at e ri a l t o th e r e li e f s o u g h t i n th e un d e rl y i n g l aw s u i t. C o n s e qu e n t l y , p l a i n t i ff

s ' s e c o n d ar g um e n t i s th at th i s c o urt e rr e d i n d e t e rm i n i n g th at d e fe n d an t s ' s t at e m e n t s w e r e p e rt i n e n t an d m at e r i a l t o o n g o i n g li t i g at i o n . U n d e r th i s th e o r y , p l a i n t i ff s c o nt e n d th e s t at e m e nt s m a d e t o B e n d o an d 

### L arr y D e M ar c o , E s qu i r e ( " D e M ar c o " ) , a s w e ll a s e v i d e n c e o f S t at e F arm ' s " s h a d o w d i s c o v e ry " m e th o d s w e r e i mp r o p e r l y e x c l u d e d . 7 5 H e r e , a ll o f d e fe n d ant s ' a ll e g e d d e fam at o r y c o n d u c t an d s t at e m e nt s o c c urr e d d ur i n g l i t i g at i o n i nv o l v i n g a p l a i n t i ff b e i n g tr e at e d at o n e o f C av o t os o ffi c e s . A s s u c h , qu e s t i o n s an d s t at e m e n t s a

b o ut C av o t o w o u l d l i k e l y b e p e rt i n e n t an d m at e r i a l t o th e l i t i g at i o n . H av i n g a lr e a dy d i s c u s s e d th e p e rt i n e n c e o f R o s e n au ' s s t at e m e n t s t o B e n d a , th i s s e c t i o n w ill a d dr e s s p l a i n t i f

f s ' ar g um e nt s r e g ar d i n g D e M ar c o an d S t at e F arm ' s " s h a d o w d i s c o v e r y " t a c t i c s .

7 4 S e e i n f ra F N 5 5 . 7 5 P l. P o s t - T ri a l M e m o , ** 3 8 - 9 . 1 5

### a . A s ta te m e n t s ug ges t i ng a t

r e a t i ng d o c to r ' s l a c k o f c r e d i b i l i ty i n a p e r

s o n a l i n j u r y la w s u i t i s p e r t i ne n t a n d m a te r i a l to t h e l i t i g a t io n. P r i o r t o tr i a l , th i s c o u rt e x cl u d e d th e t e s t i m o ny o f D e M ar c o o n th e fil i n g o f a j o i n t m o t i o n b y d e fe n d an t s . 7 6 F ro m a r e v i e w o f D e M ar c o ' s d e p o s i t i o n , th i s c o urtc o n c l u d e d h i s t e s t i m o ny w a s unr e li ab l e an d b arr e d b y th e j u d i c i a l p r i v il e g e . P l a i nt i ff s s o u g h t t o h av e D e M ar c o t e s t i f y a b o ut a s e tt l e m e n t c o nv e r s at i o n h e h a d w i th D o u g B ab i n ( " B a

b i n " ) - an S I U i nv e s t i g at o r fo r S t at e 

### F arm . " D e M ar c o , h o w e v e r , c o u l d n o t r e c a ll any s p e c i fi c s t at e m e nt s m a d e b y B ab i n . In s t e a d , h e c o u l d o n l y s t at e h e g o t th e i mp r e s s i o n B ab i n fo un d C av o t o l a c k e d c r e d i b i l i ty an d th at S t at e F arm w o u l d n o t 

### " p ay a d i m e " t o any c l a i m th at c am e o ut o f C av o t o ' s o f fi c e . 7 8 A l th o u g h D e M ar c o c o u l d n o t r e c a ll B ab i n ' s s t at e m e nt s , h e d i d r e c a ll th at i t o c c ur r e d w h i l e th e y " w e r e n e g o t i at i n g a cl a i m . ,, 7 9 

### In th at c l a i m , D e M ar c o ' s i n j ur e d c li e n t h a d b e e n tr e at e d at o n e o f C av o t o ' s o ffi c e s . 8 0 A t th e t i m e , d e fe n d ant s w e r e s u s p i c i o u s o f th e v e ra c i ty o f any i n

j ur y b e i n g tr e at e d b y p l a i nt i ff s b e c au s e th e y w e r e s u s p i c i o u s o f p l a i nt i ff s ' s o li c i t at i o n p ra c t i c e s . 

### A s a r e s u l t , S t at e F arm a p p ar e nt l y t o o k a s t an c e th at th e y w o u l d n o t n e g o t i at e 

### any c l a i m i nv o l v i n g C av o t o a s th e tr e at i n g c h i r o p ra c t o r.

7 6 S e e O c t o b e r 1 7 , 2 0 1 6 O r d e r , C n t l. # 1 6 0 9 3 5 3 4 . 77 P l. P o s t - T r i a l M e m o , * 3 9 . 1 8 D e M ar c o , D e f
. E x . U , a t " 8 9 , 1 2 - 2 0 . 7 9 I d . . a t * 77 , 8 - 1 4 . s o I d . a t 

### * 8 9 , 13 . 1 6

### A s s um i n g , a rgu e n do , 

### th at S t at e F ann h a d th at p o l i c y , th e r e i s n o th i n g i mp r o p e r a b o ut 

### i t. P art i e s 

### c ann o t b e c o mp e l l e d 

### t o c o n s i d e r s e tt l e m e nt o r 

### e v e n m ak e a 

### r e a s o n a b l e s e tt l e m e nt o ff

e r. F urth e rm o r e , p u

b l i c p o li c y e n c o ura g e s i n s uran c e c o mp an i e s t o i nv e s t i g at e i n s uran c e fr au d . 8 1 N e v e r th e l e s s , B ab i n ' s a ll e g e d s t at e m e nt - th at S t at e F arm w o u l d n o t n e g o t i at e a c l a i m i nv o l v i n g C av o t o -s- o c c urr e d d ur i n g l i t i g at i o n i nv o l v i n g C av o t o ; th e r e fo r e , i t w a s p e rt i n e nt an d m at e r i a l t o th at li t i g at i o n .



### b . W h e t h e r a n 

### i nj u re d

p la i n t iff s o ug h t tre a t m e n t o r w

a s 

### s o li c ite d

f o r tr e a t m e n t i s 

### p e r t i n e n t i n 

### a p e r

s o n a l i n j u r y la w s u i t T hr o u g h o ut th i s l i t i g at i o n , p l a i n t i ff s h av e ar g u e d th at S t at e F arm an d R o s e n au u s e d d e p o s i t i o n s i n li t i g at i o n unr e l at e d t o C av o t o t o g a i n i n fo rm at i o n o n h i m an d h i s b u s i n e s s p r a c t i c e s =-c o n d

u c t th e y r e fe r t o a s " s h a d o w d i s c o v e r y " . I n th e i r p o s t - tri a l m e m o ran d um , p l a i n t i ff s ar g u e th i s c o urt e rr e d b y n o t an a l y z i n g e a c h i n s t an c e o f " s h a d o w d i s c o v e r y " s e p arat e l y , y e t o n l y c i t e th e d e p o s i t i o n o f D r. S t e p h e n V e rn i ll e ( " V e m iJl e » ) - a c h i ro p ra c t o r i n o n e o f th e p l a i n t i ff o ffi c e s - i n th e c a s e o f 

### W a d e v . H o llo w a y a s an e x amp l e o f S t at e F arm ' s " s h a d o w d i s c o v e r y " t a c t i c s . 8 2 T hr o u g h an e x t e n s i v e r e v i e w o f th at d e p o s i t i o n , th i s c o urt fo un d th at R o s e n au n e v e r m e n t i o n e d C av o t o ' s n am e . I n s t e a d , th e o n l y ar g u ab l e r e l at i o n t o C av o t o w a s R o s e n au ' s qu e s t i o n s a

b o ut F i s h e r an d F i s hb o n e A dv e rt i s i n g ( " F i s hb o n e " ) - th e t e l e m ark e t i n g/ a dv e rt i s i n g a g e n c y c r e at e d an d u s e d b y C av o t o t o s o li c i t c li e n t e l e . 8 3

8 1 S e e Fo r

s t e r , 1 8 9 A . 2 d at 1 5 0 ( fi n d i n g c o n d i t i o n a l p r i v i l e g e e x i s t e d i m m u n i z i n g i n s u ra n c e c o m p a n y fr o m I n v a s i o n o f p r i v a c y li a b ili t y fo r fo ll o w l n g a n d d o c u m e n t i n g m o v e m e n t s o f a n i n j u r e d c l a i m a n t b e c a u s e " i t i s i n t h e b e s t i n t e r e s t s o f s o ci e t y t h a t v a li d cl a i m s b e a s c e rt a i n e d a n d f a b r i c a t e d c l a i m s b e e x p o s e d . " ) 8 2 P f. P o s t - T r i a l M e m o , * 3 9 - 4 0 . 8 3 D e f
. P o s t - T r i a l M e m o , E x . A A , • 4 9 , 5 - 9 . 1 7I n h i s d e p o s i t i o n , V e rn ill e s t at e d h e u s e d a v ar i e ty o f m ark e t i n g t o o l s t o g a i n c l i e n t e l e ,

i n cl u d e d t e l e m ark e t i n g . 8 4 I n s e e k i n g i n fo rm at i o n ab o ut th e t e l e m ark e t i n g a g e n c i e s h e u s e d , R o s e n au a s k e d V e rn ill e 

### i f h e k n e w o fF i s h e r o r F i s hb o n e - t o wh i c h V e rn i l l e i n d i c at e d h e d i d 

### n o t. s s T h e r e i s n o th i n g i mp ro p e r a b o ut th o s e tw o qu e s t i o n s , an d furth e r , th e i r li nk t o C av o t o i s att e nu at e d at b e s t. 8 6 A t th at t i m e , R o s e n au h a d kn o w l e d g e ( o r at l e a s t s u s p i c i o n s ) th at F i s h b o n e s o l i c i t e d a c c i d e nt v i c t i m s v i a p o li c e r e c o r d s , an d R o s e n au s o u g h t t o d e t e rm i n e i fth at w a s h o w th e p l a i n t i ff c am e t o b e tr e at e d b y V e rn ill e . T h i s i s r e l e v an t b e c au s e a p l a i n t i ff w h o i s s o li c it e d fo r tr e atm e n t i s li k e l y l e s s i n j ur e d th an a p l a i n t i ff w h o s e e k s tr e atm e n t o n h e r o w n . It i s a l s o w o rth n o t i n g th at R o s e n au a l s o a s k e d i f V e rn ill e kn e w o fM e d i c a l C o nn e c t i o n +- a d i ff e r e n t t e l e m ark i n g c o mp any - an d i t s o w n e r G i n a B at a li nn i . 8 7 T hu s , t ak i n g th e d e p o s i t i o n a s a w h o l e , th i s c o urt fi n d s R o s e n au w a s s i mp l y r e p r e s e n t i n g h i s c l i e n t ' s i n t e r e s t s b y d e t e rmi n i n g h o w th e p l a i n t i ff s o u g h t tr e atm e nt - a fa c t p e rt i n e n t an d m at e ri a l t o th e 

### W a d e v . H o llo w a y li t i g at i o n . T h e r e fo r e , th e " s h a d o w d i s c o v e r y " t a c t i c s w e r e p ro p e rl y e x c l u d e d . 3 . T h e S a fe gu ar d s o f

th e Ju d i c i a l P ro c e s s W e r e P r e s e n t L a s t l y , p l a i n t i ff

s ar g u e th i s 

### c o urt s h o u l d n o t h av e e x cl u d e d any w i tn e s s b a s e d o n th e j u d i c i a l p r i v i l e g e b e c au s e j u d i c i a l s a fe g u ar d s t o p ro t e c t a g a i n s t m i s c o n d u c t w e r e n o t p r e s e nt. 8 8

8 4 I d . at • 4 6 , 2 2 - 2 3 . 8 5 I d . at • 4 9 , 5 - 9 . 8 6 I t s h o u l d b e n o t e d t h a t b e c a u s e D r . V e rn l ll e w a s u n a w a r e w h o M a rg e F i s h e r w a s , h e w a s u n a b l e t o li n k t h e q u e s t i o n a b o u t h e r t o C a v o t o . T h e r e fo r e , D r . V e rn i ll e ' s t e s t i m o n y c o u l d n o t h a v e b e e n u s e d t o e s t a b li s h a cl a i m o f d e f a m a t i o n , s i n c e t h e r e c i p i e n t o f t h e s t a t e m e n t m u s t u n d e rs t a n d it s d e fa m a t o ry m e a n i n g a n d i t s a p p li c a ti o n t o t h e p l a i n t i ff
. 8 7 I d . a t * 7 8 , 8 - 1 2 . 8 8 P l. P o s t - T r i a l M e m o , * 4 0 . 1 8A s t at e m e nt d o e s n o t n e e d t o b e i s s u e d i n o p e n c o urt fo r th e j u d i c i a l p r i v i l e g e t o a p p l y . A s n o t e d i n R i c h m o n d

, th e p r i v i l e g e e n c o mp a s s e s l e s s fo rm a l c o mmun i c at i o n s s u c h a s

" c o rr e s p o n d e n c e b e tw e e n c o un s e l i n furth e ran c e o f th e c l i e n t ' s i n t e re s t " an d " s t at e m e nt s m a d e b y c o un s e l i n p r e l i m i n ar y n e g o t i at i o n s o n th e i r cl i e nt ' s b e h a l f . " 8 9 N e v e rth e l e s s , p art o f th e p o l i c y b e h i n d th e p r i v i l e g e i s th at a c o urt i s a b l e t o i s s u e i t s o w n d i s c i p l i n e fo r d e fam at o r y s t at e m e nt s w h e n th e y ar e i s s u e d d ur i n g th e c o ur s e o f l i t i g at i o n ." T h e r e fo r e , p l a i n t i ff

s c o rr e c t l y ar g u e th at j u d ic i a l s a f e g u ar d s mu s t b e p r e s e n t fo r th e p r i v il e g e t o a p p l y ; h o w e v e r , th e y i n c o rr e c t l y ar g u e th at th o s e s a fe g u ar d s w e r e n o t p r e s e nt i n th e c a s e s w h e r e R o s e n au a ll e g e d l y m a d e d e fam at o r y s t at e m e n t s . P l a i n t i ff s att e mp t t o l i k e n thi s c a s e t o 

### F re i s e r v . R o s e n w e i

gi " h o w e v e r , th e i r r e li an c e u p o n 

### Pre i s e r i s m i s p l a c e d . I n 

### Pre i

s e r , th e P e nn s y l v an i a S u

p r e m e C o urt h e l d a P e nn s y l v an i a att o rn e y ' s s t at e m e ri t s ab o ut an o ut o f s t at e att o r n e y =-c o n t a i n e d w i th i n a c o mp l a i n t s u b m i tt e d t o an A ll e g h e ny c o un ty fe e d i s p ut e c o mm i tt e e - w e r e n o t p ro t e c t e d b y th e j u d i ci a l 

### p r i v i l e g e . " T h e C o urt r e a s o n e d th e s t at e m e n t s w e r e n o t p r i v i l e g e d b e c au s e o fth e p r i v at e n at ur e o f th e fe e d e t e rm i n at i o n c o mm i tt e e . 9 3 A s a p ri v at e c o mm i tt e e , i t s d e c i s i o n s " c o u l d o n l y a ff e c t th o s e w h o c o n s e n t e d t o i t , " an d th e o ut o f s t at e att o rn e y h a d n o t c o n s e n t e d t o th e c o mm i tt e e ' s auth or i ty . 9 4 T h e r e fo r e , th e o ut o f s t at e att o rn e y d i d n o ! h av e th e a b ili ty t o i nv o k e th e c o mm i tt e e ' s p o w e r t o i s s u e d i s c i p li n e fo r th e P e nn s y l v ani a att o rn e y ' s d e fam at o r y s t at e m e nt s ; an d s o , b e c au s e j u d i ci a l s a fe g u ar d s w e r e n o t p r e s e n t , th e p ri v i l e g e d i d n o t a p p l y . 9 5

6 9 R i c h m o n d , 3 5 A . 3 d at 7 8 5 . 9 0 I d . at 7 8 4 . 9 1 P l. P o s t - T r i a l M e m o , • 4 1 . 9 2 S e e P te i s e t, 6 4 6 A . 2 d 1 1 6 6 ( P a . 1 9 9 4 )
. 9 i I d . at 11 6 9 . 9 4 I d . at 11 6 9 - 7 0 . 9 5 I d . a t 1 1 7 0 . 

### 1 9H e r e , th e s i t u at i o n i s un l i k e 

### Pre is e r. W i th th e e x c e p t i o n o f R o s e n au ' s s t at e m e n t s 

### t o B e n d o , w h i c h w e r e s u

b m i tt e d t o th e j ur

y , e a c h a ll e g e d d e fam at o r y s t at e m e n t o c c ur

r e d w i th i n th e c o n t e x t o f an o n g o i n g p u b l i c j u d i c i a l p ro c e e d i n g . 9 6 U n l i k e th e p r i v at e fe e d e t e rm i n at i o n · c o mm i tt e e , a c o urt o f l aw h a s th e a b i l i ty t o i mp o s e p un i s hm e n t fo r a d e fam at o r y s t at e m e nt r e g ar d l e s s o f w h e th e r th e p arty c o n s e n t e d t o i t s auth o r i ty . F urth e r , a s d e fe n d an t s n o t e d i n th e i r p o s t - tr i a l m e m o ran d um , p l a i n t i ff

s t o o k a dv an t a g e o f j u d i ci a l s a f

e g u ar d s i n th e c a s e o f 

### R a

y v . C a r te r. 9 1 I n th at c a s e , R o s e n au s ub p o e n a e d F i s h e r i n o r d e r t o d e t e rm i n e w h e th e r F i s hb o n e h a d s o li c i t e d th e p l a i nt i ff t o s e e k tr e atm e nt. 9 8 I n r e s p o n s e t o th e s ub p o e n a , C av o t os att o rn e y at th e t i m e , R o b e rt D i c km an , E s qu i r e ( " D i c km an " ) , p e t i t i o n e d th e c o urt fo r a p ro t e c t i v e o r d e r t o p r e v e n t F i s h e r fr o m b e i n g fo r c e d t o i d e nt i fy h e r r e l at i o n s h ip w i th C av o t o . 9 9 A l th o u g h th e p e t i t i o n w a s un s u c c e s s fu l , p l a i n t i ff s . w e r e a b l e t o ut i l i z e e x i s t i n g j u d i c i a l s a fe g u ar d s t o c h a ll e n g e d e fe n d an t s ' a c t i o n s i n fr o n t o f a l e arn e d j u d g e . Ju s t a s th e j u d i c i a l s a fe g u ar d s w e r e av a i l a b l e fo r p l a i n t i ff

s t o c h a ll e n g e d e fe n d an t s ' a c t i o n s 

### in th at c a s e , th e y w e r e a l s o p r e s e n t i n e a c h c a s e w h e r e an ar g u ab l y d e fam at o r y s t at e m e nt w a s m a d e . T h e r e fo r e , th e j u d i c i a l p r i v il e g e w a s p r o p e r l y a p p li e d . C . T h i s C o urt ' s R

u l i n g o n th e A dm i s s i b ili ty o fth e D i c km an L e tt e r W a s P ro p e r A t th e fo r e fr o n t o f

p l a i n t i ff s ' cl a i m s o f e rr o r i s th i s c o urt ' s ru li n g o n th e p art i a l a dm i s s i b ili ty o f

th e M ar c h 2 6 , 2 0 0 4 , l e tt e r auth o r e d b y D i c km an an d a d dr e s s e d t o P atr ic k M c C o y d ; E s qu ir e ( " M c C o y d " ) ( l e tt e r- h e r e i n a ft e r r e fe rr e d t o a s " th e D i c km an l e tt e r " o r

" l e tt e r " ) . 1 0 0 A t th e t i m e , D i c km an w a s r e p r e s e n t i n g C av o t o i n li t i g at i o n a g a i n s t d e fe n d an t s fo r

9 6 S e e i n f r a F N 5 5 . 9 7 S e e D e f

. P o s t - T r i a l M e m o , E x . B ; a l s o I d . at E x . 

### c c. 9 8 S e e I d . E x . B , * 3 , 1 9 - 2 4 . 9 9 td . a t 

### • s , 6 - 2 5 . 1 00 P l. P o s t - T ri a l M e m o , * 2 4 . 2 0a

b u s e o fp ro c e s s , 1 0 1 an d s o u g h t t o w arn M c C o y d th at h i s cl i e n t , R o s e n au , h a d m a d e i mp ro p e r s t at e m e n t s t o B e n d o a

b o ut C av o t o . l '" D e f e n d an t s i n tro d

u c e d th e D i c km an l e tt e r d ur i n g th e i r e x am i n at i o n o f R o s e n au , an d fo ll o w i n g p l a i nt i ff

s ' o b j e c t i o n , th i s c o urt a ll o w e d th e d at e o f th e l e tt e r t o b e l ntr o d u c e d . J '" B o th p art i e s w e r e a l s o p e rm i tt e d t o a s k R o s e n au qu e s t i o n s a b o ut w h at i n fo rm at i o n w a s ( an d w a s n o t) c o n t a i n e d i n th e l e tt e r i n o r d e r t o e s t a b l i s h i t s c o n t e x t fo r th e j ur y . P l a i n t i ff s ar g u e th at ru l i n g w a s e r ro r o n th e g r o un d s th at th e l e tt e r w a s n o t auth e n t i c at e d , w a s h e ar s ay , an d un d

u l y p r e j u d i ci a l t o p l a i n t i f

f s c a s e . F o r th e r e a s o n s th at fo ll o w , th i s c o urt fi n d s : (1 ) p l a i n t i ff

s w a i v e d an o b

j e c t i o n t o th e l e tt e r ' s auth e n t i c i ty ; ( 2 ) i t s ru l i n g d i d n o t v i o l at e th e ru l e s a g a i n s t h e ar s ay ; an d ( 3 ) th e l e tt e r w a s h i g h l y r e l e v an t i n p ro v i n g p l a i n t i ff s fa i l e d t o fil e th e i r l aw s u i t w i th i n th e s t atut e o f l i m i t at i o n s . I . P l a i n t i ff

s fa il e d t o p r e s e rv e an o b j e c t i o n t o th e D i c k.m an L e tt e r ' s auth e n t i c i ty I n th e i r p o s t - tr i a l m o t i o n , p l a i n t i ff s c o n t e n d th at a ll o w i n g t e s t i m o ny o f th e D i c km an l e tt e r w a s e rro r b e c au s e i t w a s n o t p ro p e r l y aur h e n t i c at e d . ! '" H o w e v e r , b e c au s e thi s i s s u e w a s n e v e r ra i s e d p r i o r t o p o s t - tri a l m o t i o n s , 

### i t i s d e e m e d w a i v e d , an d th i s c o urt c ann o t a d dr e s s i t s m e r i t s . A c o urt m ay n o t g ran t p o s t - tri a l r e l i e f fo r a c l a i m o f e rr o r un l e s s th e e rr o r w a s ra i s e d i n p r e - tr i a l p ro c e e d i n g s o r b y t i m e l y o b j e c t i o n at tr i a l. 1 0 5 U nl e s s i t i s a p p ar e n t fr o m th e c o n t e x t o f th e o b j e c t i o n , th e p arty mu s t s t at e th e gr o un d s fo r th e o b j e c t i o n . 1 0 � R e qu i ri n g a t i m e l y an d

1 0 1 R e c o r d , 11 / 2 / 2 0 1 6 , • 2 2 0 , 2 3 - 2 5 . 1 0 2 S e e D e f
. P o s t - T r i a l M e m o , E x . L. 1 0 3 R e c o r d , 11 /2 / 2 0 1 6 , • 2 2 3 , 2 - 2 5 . 1 04 P l. P o s t - T r i a l M e m o , ,.. 2 5 . 1 0 � P a . R . C . P . 2 2 7 . l ( b )( l ) { " . . p o s t - t r i a l r e li e f m ay n o t b e g r a n t e d u n l e s s t h e g ro u n d s t h e r e fo r , ( 1 ) i f t h e n a v a il a b l e , w e r e r a i s e d I n p r e - t r i a l p r o c e e d i n g s o r b y m o t i o n . . o f f e r o f p ro o f o r o t h e r a p p r o p r i a t e m e t h o d a t trl a l ; " )
. 1 0 6 P a . R . E . 1 0 3 ( a )( l )( B ) . 2 1

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j e c t i o n p e rm i t s th e tr i a l c o urt t o c o rr e c t e rr o r s at th e t i m e th e y o c c ur. l '" T h e r e fo r e , any e rr o r n o t t i m e l y an d s p e c i fi c a ll y ra i s e d i s d e e m e d w a i v e d . H e r e , i t w a s n o t c l e ar fr o m p l a i nt i ff s ' o b j e c t i o n th at i t w a s b a s e d o n auth e n t i c i ty . T h e s ub s e qu e nt s i d e b ar ar g um e nt w a s fo c u s e d o n h e ar s ay , 1 0 8 

### an d wh e n d e fe n s e c o un s e l l a i d fo un d at i o n fo r th e l e tt e r ' s auth e n t i c i ty , p l a i nt i ff s ' c o un s e l r e m a i n e d s i l e nt. 1 0 9 

### It 

### i s a l s o w o rth n o t i n g th at p l a i nt i ff s d i d n o t ra i s e an o b

j e c t i o n t o th e l e tt e r p ri o r t o tr i a l , d e s p i t e i t s a dm i s s i b i l i ty b e i n g r i p e fo r d e t e rm i n at i o n . A lth o u g h p r e - tr i a l m o t i o n s ar e n o t c o mp u l s or

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### o f wh i c h c o n c e rn e d th i s l e tt e r . A d d i t i o n a ll y , p l a i n t i ff s r e l i e d u p o n th i s e x a c t l e tt e r i n i t s m e m o ran d um o f l aw o p p o s i n g s umm ary j u d gm e nt , 1 1 0 

### an d r e fe r e n c e d o th e r l e tt e r s auth o r e d b y D i c km an i n i t s o p e n i n g s t at e m e nt w i th 

### n o a p p ar e n t c o n c e rn fo r th e i r auth e nt i c ity . 1 1 1 

### T h e r e fo r e , th i s 

### c o urt fi n d s p l a i nt i ff s fa i l e d t o 

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### p r e s e rv e an 

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### t o a d e qu at e l y a d dr e s s 

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1 0 7 D i lli p f a i n e v , L e h i g h V a ll e y T r u s t C o . , 3 2 2 A. 2 d 1 1 4 , 1 1 6 { P a . 1 9 7 4 ) . 1 0 8 T h e fo ll o w i n g i s an e x c e r p t o f th e tri a l tr an s c rip t at th e t i m e o f p l a i n t iff ' s o b j e c t i o n t o th e D i c km an l e tt e r . T h e l e tt e r w a s i n tro d

u c e d b y S t at e F arm c o un s e l d ur i n g i t s e x am i n at i o n o f R o s e n au . Q : An d d i d M r . D i c km an wri t e y o u an d y o ur att o rn e y l e tt e r s ? A : Y e s . Q : I ' m g o i n g t o h an d y o u wh at' s m ar k e d D · B B . M ay I a

p p ro a c h y o ur H o n o r ? M r . S e g l l a s : O b

j e c ti o n . ( S i d e b ar a s f

o l l o w s . ) M r . H o ll an d : T h i s h a s b e e n I n tr o d u c e d fo r th e p ur

p o s e o f th e ti m i n g o f th e l e tt e r , wh i c h i s p e rt i n e n t t o th e s t at

ut e o f li m i t at i o n s . T h i s i s a l s o fr o m D r . C av o t o ' s att o rn e y . I t ' s an a dm i s s i o n o f a p arty o p p o n e nt. M r . S e g ll a s : N o t a p arty . l e e R o s e n au , at * 2 2 1 , 3 · 1 8 . 1 0 9 M r . H o ll an d : T h i s l s a l e tt e r fr o m D r . C av o t o ' s att o rn e y , M r. D ic km an , s umm ari z i n g o r

p ur p o rt i n g t o s umm ari z e th e c o nv e r s ati o n y o u h a d w i th M r . B e n d o ? M r . R o s e n au : I t i s . I d . at * 2 2 3 , 7 · 1 1. 11 0 S e e P l. M e m o . O p p . S . J . , at * 2 6 · 2 7 . 1 11 R e c o r d , 10 / 3 1 / 2 0 1 6 , at * 4 2 , 9 - 1 1 ( " M r . D ic km an fo ll o w e d u p th at c o nv e r s at i o n w i th a f e tt e r th at s am e d ay t o M r . R o s e n au . . " ) ; I d

. at * 4 3 , 2 5 - * 4 4 , 4 ( " [ M r . D i c km an ) fo ll o w e d th at u p w i th an o th e r l e tt e r , Ap ri l 1 4 th , an d s a i d , w e m a d e an o ff

e r , h av e n ' t h e ar d fr o m y o u . Y o u ' r e w e fc o m e t o c o m e i n . " ) 2 22 . T h e l e tt e r ' s d at e w a s p ro p e r l y a dm i tt e d a s an o p p o s i n g p arty ' s s t at e m e n t .

Wh il e p l a i nt i ff

s fa i l e d t o p r e s e rv e an o b j e c t i o n t o th e l e tt e r ' s auth e nt i c i ty , th e o b j e c t i o n o f h e ar s ay w a s cl e ar l y ra i s e d at th e t i m e o f tr i a l. N e v e rth e l e s s , th e e x c e p t i o n t o th e ru l e a g a i n s t h e ar s ay fo r an o p p o s i n g 

### p arty ' s s t at e m e n t a p p li e d t o a ll o w th e e li ci t e d t e s t i m o ny . H e ar s ay i s an o ut o f c o urt s t at e m e nt , w h i c h i s b e i n g i n tro d u c e d t o p ro v e th e i n fo rm at i o n c o n t a i n e d w i th i n 

### it i s tru e . 

### 1 1 2 H e ar s ay i s i n a dm i s s i b l e at tr i a l un l e s s an e x c e p t i o n 

### a p p l i e s . U ? A s t at e m e n t m a d e b y a p arty o p p o n e nt i s o n e o f th e e x c e p t i o n s t o th e ru l e a g a i n s t h e ar s ay . 1 1 4 U n d e r th e e x c e p t i o n , a " p arty ' s s t at e m e n t " i n cl u d e s s t at e m e n t s m a d e " b y th e p arty ' s a g e nt o r e mp l o y e e o n a m att e r w i th i n th e s c o p e o f th at r e l at i o n s h i p . " 1 1 5 

### In o r d e r t o i mp ut e an a g e n t' s s t at e m e n t t o a p arty , th e p ro p o n e n t mu s t e s t ab l i s h : " ( I ) th e d e cl aran t w a s an a g e n t o r e mp l o y e e o f th e p arty o p p o n e n t ; ( 2 ) th e d e c l aran t m a d e th e s t at e m e n t w h i l e e mp l o y e d b y th e p r i n ci p a l ; an d ( 3 ) th e s t at e m e n t c o n c e rn e d a m att e r w i thi n th e s c o p e o f th e a g e n c y o fe mp l o y m e nt. " 1 1 6 W i th r e s p e c t t o th e th i r d r e qu i r e m e nt , s p e c i fi c auth o ri z at i o n t o s p e ak n e e d n o t b e s h o w n , b ut th e s t at e m e n t mu s t " c o n c e rn a s ub j e c t m att e r w i th i n th e d e cl aran t ' s s c o p e o fe mp l o y m e n t o r a g e n c y . t " ! " H e r e , at th e t i m e h e w ro t e th e l e tt e r , D i c km an w a s a c t i n g a s C av o t o ' s att o rn e y . P l a i n t i ff s r e c o gn i z e , an d i n fa c t ar g u e , th at an att o rn e y i s an a g e n t o f h i s o r h e r c l i e n t . 1 1 8 T hu s , a s l o n g a s D i c km an W a s s p e ak i n g o n a s ub j e c t m att e r w i th i n th e s c o p e o f h i s a g e n c y , th e l e tt e r w a s a dm i s s i b l e a s an o p p o s i n g p arty ' s s t at e m e nt.

i i z P a . R . E . 8 0 1 . i i s P a . R . E . 8 0 2 . m P a . R . E . 8 0 3 ( 2 5 ) . 115 P a . R . E . 8 0 3 ( 2 5 }{ 0 )
. 11 6 S e h l v

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n c . , 7 6 3 A . 2 d 8 5 8 , 8 6 2 { P a . S u p e r C t. 20 0 0 )
. u 1 I d . n a P l. P o s t - T r i a l M e m o , * 5 2 ; S e e a l s o W e i n e r v . L e e , 6 6 9 A . 2 d 4 2 4 ( P a . C o mmw . C t. 1 9 9 5 ) { fi n d i n g " a n a tt o rn e y s e r v e s a n a n a g e n t o f h i s o r h e r c li e n t a n d a n y a ct s p e r fo r m e d a n d s t a t e m e n t s m a d e b y t h e a tt o rn e y w i t h i n t h e s c o p e o f h i s o r h e r e m p l o y m e n t a n d a u t h o r i t y a r e b i n d i n g u p o n t h e cl i e n t. " )
. 2 3A t th e t i m e th e l e tt e r w a s w r i tt e n , D i c km an w a s r e p r e s e n t i n g C av o t o i n a l aw s u i t a g a i n s t

R o s e n au an d S t at e F ann fo r a b u s e o f p ro c e s s . T h e p ur

p o s e o f th e l e tt e r w a s t o w arn M c C o y d o f R o s e n au ' s a ll e g e d d e fam at o r y s t at e m e n t s , an d s p e c i fi c a ll y a s k e d , " D o e s y o ur cl i e n t r e a ll y w an t m o r e l aw s u i t s ? " 1 1 9 

### A s C av o t o ' s r e p r e s e n t at i v e i n o n g o i n g li t i g at i o n , D i c km an w a s at l e a s t i mp l i e d l y auth o r i z e d t o s p e ak o n th i s s ub j e c t m att e r s i n c e i t r e l at e d t o th e o n g o i n g l i t i g at i o n . N o n e th e l e s s , e v i d e n c e w a s e v e n p r e s e n t e d s u g g e s t i n g th at C av o t o e xp l i c i tl y d i r e c t e d D i c k. m an t o w ri t e th e l e tt e r . A t tr i a l , B e n d o c o n firm e d th at h e h a s n e v e r m e t o r s p o k e n w i th D i c km an 1 2 0

- w h i c h i n d i c at e s D i c km an c o u l d n o t h av e l e arn e d o f R o s e n au ' s s t at e m e n t s fr o m B e n d o . B e n d o d i d , h o w e v e r , 

### r e p o rt th e s t at e m e nt s t o C av o t o . 1 2 1 T hu s , th e l o g i c a l c o n c l u s i o n i s th at , C av o t o c o mp l a i n e d t o D i c km an a ft e r b e i n g t o l d o f R o s e n au ' s s t at e m e n t s , an d D i c km an s u b s e qu e nt l y w ro t e a l e tt e r t o R o s e n au ' s att o rn e y . T h e r e fo r e , th i s c o urt fi n d s D i c km an w a s a c t i n g w i th i n th e s c o p e o f h i s a g e n c y , an d th e e n t i r e l e tt e r , i n cl u d i n g i t s d at e , w a s a dm i s s i b l e t o p ro v e i t s truth . T h e tr uth o fth e m att e r a s s e rt e d i n th e l e tt e r i s th at D i c km an 

### w a s to l d R o s e n au h a d m a d e d i s p ar a g i n g s t at e m e nt s a b o ut C av o t o i n a c o nv e r s at i o n w i th B e n d o . H o w e v e r , th e l e tt e r a l s o c o n t a i n e d i n a dm i s s i b l e h e ar s ay . T h e l e tt e r c o n t a i n e d " qu o t e s " o f th e s t at e m e n t s a

p p ar e n t l y attr i b ut a

b l e t o R o s e n au - w h i c h w e r e h e ar s ay w i th o ut an e x c e p t i o n . A s s u c h , th e j ur

y w a s n o t p e rm i tt e d t o t ak e th o s e " qu o t e s " a s e v i d e n c e R o s e n au h a d a c tu a ll y d e l i v e r e d th o s e s t at e m e n t s . T h i s c o urt d e t e rm i n e d th e r i s k th e j ur y w o u l d t ak e th o s e qu o t e s a s tr u e w a s h i g h , s o th e c o urt a ll o w e d o n l y l i m i t e d t e s t i m o ny o f th e l e tt e r. T h e ru l i n g a ll o w e d th e d at e o f th e l e tt e r t o b e

11 9 S e e D e f

. P o s t - T ri a l M e m o , E x . L . 1 1 0 R e c o r d , 1 0 / 3 1 / 2 0 1 6 , a t * 1 5 4 , 1 8 - 1 9 . w I d . a t 

### • 1 s s , 1 7 - 2 4 . 2 4

### . a dm i tt e d i nt o e v i d e n c e an d g ran t e d b o th p art i e s l e e w ay i n th e ir qu e s t i o n s s o th at c o nt e x t fo r th e

l e tt e r ' s d at e c o u l d b e e s t a b l i s h e d . F o r e x amp l e , th e c o urt p e rm i tt e d d e fe n s e c o un s e l t o 

### a s k th e fo ll o w i n g qu e s t i o n :

' ' M R . H O L L A

N D : 

### T h i s i s a l e tt e r fr o m D r . C av o t o ' s att o rn e y , M r. Di c km an , s umm ar i z i n g o r p ur p o rt i n g t o s umm ar i z e th e c o nv e r s at i o n y o u h a d w i th 

### M r. B e n d o ? 

### M R . R O S EN A U : 

### I t i s . " 1 2 2 

### An d o n r e - d i r e c t , p l a i n t i ff s ' c o un s e l w a s p e rm i tt e d t o a s k w h e th e r th e l e tt e r c o nt a i n e d any i n fo rm at i o n a

b o ut D r. M at

ur a -e- a c e n tra l fo c u s o f th e d e fam at o r y c o nv e r s at i o n r e c o unt e d b y B e n d o - i n an a

p p ar e n t att e mp t t o ar g u e th e le tt e r d i d n o t d e s c r i b e th e s am e c o nv e r s at i o n . 1 2 3 

### P l a i nt i ff s ar g u e th at a ll o w i n g th i s c o n t e x t w a s i mp ro p e r , a s i t 

### w a s d e s c r i b i n g h e ar s ay . 1 2 4 

### C o nv e r s e l y , d e fe n d ant s ar g u e th e c o urt ' s ru l i n g w a s p r o p e r b e c au s e th e t e s t i m o ny w a s n o t b e i n g i ntr o d u c e d fo r i t s tr

uth , b ut rath e r , a s an " o p e rat i v e fa c t . " 1 2 5 

### H o w e v e r , a s d i s c u s s e d a

b o v e , th e J e tt e r w a s an o p p o s i n g p arty ' s s t at e m e n t , wh i c h c o u l d h av e b e e n a dm i tt e d i n i t s e nt i r e ty t o e s t ab li s h D i c km an h a d b e e n t o l d o f R o s e n au ' s s t at e m e nt s o r i n o th e r w o r d s , t o e s t ab li s h p l a i n t i ff s h a d kn o w l e d g e o f d e fe n d an t s ' d e fam at i o n m o r e th an o n e y e ar fr o m th e d at e th i s l aw s u i t w as fi l e d . T h e r e fo r e , th i s c o urt d e ci d e d th e b e s t w ay t o b a l an c e th e d an g e r th e j ur y w o u l d t ak e th e

" qu o t e s " o f R o s e n au i n th e l e tt e r a s tr u e , an d d e fe n d ant s ' s tro n g i nt e r e s t i n e s t ab l i s hi n g a s t at ut e o f li m it at i o n s d e fe n s e , w a s t o a ll o w th e p art i e s t o c h ara c t e r i z e wh at th e J e tt e r p urp o rt e d t o

112 R e c o r d , 11 / 2 / 2 0 1 6 , * 2 2 3 , 7 - 1 1 . 123 I d . a t ** 2 2 9 , 1 - 2 3 2 , 9 . 114 I n t e r e s t i n g l y , p l a l n t l ff s r e q u e s t e d t h e D ic k m a n l e tt e r b e p r o d u c e d t o t h e j u ry , a f t e r t h e j u r

y r e q u e s t e d t o i n s p e c t i t d u r i n g d e li b e r a t i o n s , w i t h n o a p p a r e n t c o n c e rn fo r i t s h e a rs a y o r t h a t i t h a d n ' t b e e n i n t r o d u c e d i n t o e v i d e n c e . 1 2 5 D e fe n d a n t s do n o t c i t e a n y a u t h o r i t y d i s c u s s i n g t h e d e fi n i ti o n o f a n " o p e ra t i v e fa c t. " 2 5d e s c r i b e thr o u g h l i m i t e d qu e s t i o n i n g , p e rm i t t e s t i m o ny ab o ut i t s d at e , an d d e ny th e r e qu e s t t o

a dm i t th e l e tt e r i n t o e v i d e n c e . 3 . T h e l e tt e r w a s h i g h l y r e l e v an t i n a s c e rt a i n i n g w h e th e r p l a i n t i ff s c o mp li e d w i th th e s t at ut e o f l i m i t at i o n s . S e e m i n g t o r e l y o n th e p ro p o s i t i o n th at c o un s e l ' s c h ara c t e r i z at i o n o f th e D i c km an l e tt e r ' s c o n t e n t s w a s i mp ro p e r , p l a i n t i ff s ar g u e th e l e tt e r s h o u l d h av e b e e n e x c l u d e d a s i rr e l e v ant. 1 2 6 F o r a d o c um e n t t o b e r e l e v an t , i t mu s t s i mp l y m ak e any e l e m e n t o f a c l a i m o r d e fe n s e m o r e o r l e s s p ro b ab l e . 1 2 7 H av i n g e s t a

b li s h e d th at c h ara c t e r i z i n g th e l e tt e r ' s c o n t e n t s w a s p ro p e r , th e r e le v an c e o f th e d o c um e nt i s e s t ab li s h e d . P l a i n t i ff s kn o w l e d g e o f

R o s e n au ' s a ll e g e d d e fam at o r y s t at e m e n t s a s e arl y a s M ar c h 2 0 0 4 , m a d e 

### i t m o r e p ro b ab l e th at C av o t o ' s l aw s u i t - w hi c h w a s fil e d i n Jun e 2 0 0 5 - w a s b arr e d b y th e o n e - y e ar s t at ut e o f li m i t at i o n s . T hu s , p l a i n t i ff s ' o b j e c t i o n t o th e D i c km an l e tt e r ' s r e l e v an c e s i m il arl y fa il s . 

### 4 . T h i s c o urt ' s r e s p o n s e s t o th e qu e s t i o n s s u b m itt e d 

### b y th e j ur

y d ur i n g i t s d e li b e rat i o n s w e r e p ro p e r . D ur i n g d e li b e rat i o n s , th e j ur y s u b m i tt e d a s e r i e s o f qu e s t i o n s t o th e c o urt . P l a i n t i ff s cl a i m th i s c o urt e rr e d i n i t s r e s p o n s e s t o tw o o f th e qu e s t i o n s , 1 2 8 F i r s t , th e j ury r e qu e s t e d t o s e e th e D i c km an l e tt e r - w h i c h th i s c o urt d e n i e d . 1 2 9 S e c o n d , th e j ur y a s k e d fo r th e fo ll o w i n g p o rt i o n o f R o s e n au ' s t e s t i m o ny t o b e r e a d b a c k - w h i c h th i s c o urt a ll o w e d .

" M R . H O L L A

N D : T h i s i s a l e tt e r fr o m D r . C av o t o ' s att o rn e y , M r . D i c km an , s umm ari z i n g o r p urp o rt i n g t o s umm ar i z e th e c o nv e r s at i o n y o u h a d w i th M r . B e n d o ? 

### M R . R O S EN A U : 

### I t i s . ' ' 1 3 0

1 2 6 P l. P o s t - T ri a l M e m o , * 2 7 . 127 P a . R . E . 4 0 2 . i z s P l . P o s t - T r i a l M e m o , * 2 9 . m R e c o r d , 11 / 8 / 2 0 1 6 , 

### * 1 2 2 , 3 - 9 . 1 3 0 R e c o r d , 11 /2 /2 0 1 6 , * 22 3 , 7 - 1 1. 2 6W i th o ut c i t i n g t o any auth o r i ty , p l a i n t i ff s ar g u e 

### i t w a s an a

b u s e o f d i s c r e t i o n t o d e ny th e j ur y ' s r e qu e s t t o s e e th e l e tt e r 1 3 1 an d t o a l l o w R o s e n au ' s t e s t i m o ny t o b e r e a d b a c k t o th e j ur y . 1 3 2 

### I t i s w i th i n th e d i s c r e t i o n o f a tr i a l j u d g e t o p e rm i t o r d e ny " s p e c i fi e d t e s t i m o ny t o b e r e a d b a c k t o th e j ury u

p o n th e j ur

y u p o n th e j ur

y ' s r e qu e s t " o r " m ak e e x h i b i t s av a i l a b l e t o th e j ur

y 

### d ur i n g i t s d e l i b e rat i o n s . " 1 3 3 F i r s t , a s e xp l a i n e d 

### i n

f r a , o n l y th e d at e o fth e D i c km an l e tt e r w a s i n tro d u c e d i n t o e v i d e n c e . T h e l e tt e r i t s e l fw a s n o t r e c e i v e d a s an e x h i b i t. T h e r e fo r e , th i s c o urt l a c k e d auth o ri ty t o h av e 

### i t p ro d

u c e d t o th e j ur

y p ur s u an t t o P a . R . C . P . 

### 2 2 3 . l ( d ) ( 3 ) . · P l a in t i ff s n e x t c l a i m th at a ll o w i n g t e s t i m o ny ab o ut w h at th e l e tt e r p urp o rt e d t o s umm ar i z e w a s i mp ro p e r l y m i s l e a d i n g b e c au s e th e r e w a s " n o e v i d e n c e th at th e d o c um e n t r e fl e c t e d th e c o nv e r s at i o n ( s ) i n qu e s t i o n . " 1 3 4 H o w e v e r , n o p arty s o u g h t t o ar g u e th e l e tt e r a c c urat e l y d e s c r i b e d th e c o nv e r s at i o n s B e n d a t e s t i fy i n g 

### t o h av i n g . D e fe n s e c o un s e l ' s qu e s t i o n w a s w h e th e r th e l e tt e r 

### " p urp o rt e d " t o s umm ar i z e th e c o nv e rs at i o n . l '" U s e o fth e w o r d " p urp o rt " i n d i c at e s d e fe n d an t s ' b e li e f th e l e tt e r w a s a p p e ar i n g t o - b ut d i d n o t a c t u a ll y - s umm ari z e a c o nv e r s at i o n b e tw e e n R o s e n au an d B e n d o . F urth e rm o r e , p l a i n t i ff s fa i l t o c i t e any auth o r i ty s u g g e s t i n g th at a ll o w i n g th e t e s t i m o ny t o b e r e a d b a c k t o th e j ury w a s an a b u s e o f d i s c r e t i o n . S i mp l y , 

### i t w a s 

### i n th i s c o urt ' s s o un d d i s c r e t i o n t o d e c i d e w h at t e s t i m o ny an d e v i d e n c e c o u l d b e p ro d

u c e d t o th e j ury d

ur i n g d e li b e rat i o n s , an d a b s e n t a s h o w i n g o f c l e ar an d c o nv i n c i n g e v i d e n c e th at i t a

b u s e d i t s d i s c r e t i o n , th i s c o urt fi n d s i t s an s w e r s t o th e j ur y ' s i n qu i r e s w e r e p ro p e r.

131 c u r i o u s l y , p l a i n t i ff

s w e r e n o l o n g e r co n c e rn e d w i t h t h e l e t t e r ' s h e a rs a y o r a u t h e n t i c i t y . i s z P l. P o s t - T r l a l M e m o , ** 2 9 - 3 0 . 133 P a . R . C. P . 2 2 3 . 1 ( d )( 1 )( 3 ) . 13 4 P l. P o s t - T ri a l M e m o , * 2 9 . 1 3 5 R e c o r d , 11 /2 /2 0 1 6 , * 2 2 3 , 7 - 10 . 2 7

### V

. 

### T e s t i m o nv Ab o ut R o s e n au , s 2 0 0 -4 B W i n g R e c o r d g w a s · P 1 · o p e r , 

### R o s e n au t e s t i fi e d h e b e l i e v e s th e c o nv e r s at i o n s w i th B e n d o t o o k p l a c e i n M ar c h 2 0 0 4 b e c au s e h e r e v i e w e d h i s 2 0 0 4 b i ll i n g r e c o r d s p r i o r t o tr i a l , an d th e y i n d i c at e d h e h a d a s e r i e s o f c o nv e r s at i o n s w i th B e n d o i n M ar c h 2 0 0 4 . 1 3 6 

### P l a i nt i ff s cl a i m i t w a s e rr o r t o a ll o w th i s t e s t i m o ny b e c au s e R o s e n au ' s b i lli n g r e c o r d s ar e h e ar s ay an d w e r e n e v e r p ro d u c e d i n d i s c o v e ry . P ? T h i s c o urt fi n d s th e t e s ti m o ny w a s - a p p ro p r i at e b e c au s e : 1 ) R o s e n au u s e d th e b i ll i n g r e c o r d s t o p ro p e r l y r e fr e s h h i s r e c o ll e c t i o n b e fo r e tr i a l ; an d 2 ) i n d i s c o v e ry , S t at e F arm o ff e r e d d o c um e nt at i o n wh i c h w o u l d h av e i n fo rm e d p l a i nt i ff s th at th e 

### R o s e n au - B e n d o c o nv e r s at i o n s t o o k p l a c e i n M ar c h 2 0 0 4 , an d p l a i nt i ff s r e fu s e d th e d o c um e nt s . A . R o s e n au p ro p e rl y r e fr e s h e d h i s r e c o ll e c t i o n w i th th e b ill i n g r e c o r d s b e fo r e tri a l. P ur s u ant t o P a . RE . 6 1 2 ( a ) , a w i tn e s s m ay , e i th e r p r i o r t o o r wh i l e t e s t i f y i n g , u s e any wri t i n g o r it e m t o r e fr e s h h i s o r h e r r e c o ll e c t i o n o f an e v e nt. 1 3 8 

### If 

### a p arty r e fr e s h e s h i s r e c o ll e c t i o n at th e t i m e o f tr i a l , th e a dv e r s e p arty i s " e nt i t l e d " t o h av e th e wr i t i n g p ro d u c e d ; h o w e v e r , 

### i f a w i tn e s s r e fr e s h e s h i s r e c o ll e c t i o n p r i o r t o t e s t i fy i n g , i t i s i n th e c o urt ' s d i s c r e t i o n t o d e t e rm i n e wh e th e r " i t i s n e c e s s ary i n th e i nt e r e s t s o f j u s t i c e " t o o r d e r p ro d

u c t i o n o f th e wri t i n g . 1 3 9 

### R o s e n au r e fr e s h e d h i s r e c o ll e c t i o n w i th h i s b i lli n g r e c o r d s p r i o r t o tr i a !. 14 0 

### T hu s , p r o d u c t i o n o f th e b ill i n g r e c o r d s w a s n o t m an d at o r y , an d th i s c o urt d e t e rm i n e d th at p ro d u c t i o n w a s n o t n e c e s s ar

y b e c au s e : 1 ) th e r e w a s n o i n d i c i a th at th e y w e r e unr e l i ab le ; 2 ) p l a i nt i ff s w e r e

1 3 6 R e c o r d , 11 /2 /2 0 1 6 , • 2 1 6 , 2 4 - * 2 1 7 , 3 . 13 7 P l. P o s t - T ri a l M e m o , * 3 0 - 3 1. 13 8 S e e P a . R. E . 6 1 2 ( a ) . 139 I d . ( b )( 1 ) · ( 2 ) . 1 4 0 R e c o r d , 11 /2 / 2 0 1 6 , * 2 0 - 2 3 . 2 8p e rm i tt e d t o c ro s s - e x am i n e R o s e n au o n h i s fa i l ur e t o p ro d u c e th e m ; an d 3 ) p l a i n t i ff s w e r e p e rm i tt e d t o ar g u e th at th e fa i l ur e t o p ro d u c e th e m s u g g e s t e d R o s e n au w a s l y i n g . 1 4 1 T h e r e fo r e , R o s e n au p ro p e r l y r e fr e s h e d 

### h i s r e c o ll e c t i o n 

### p r i o rt o tr i a l w i th h i s b i ll i n g r e c o r d s , an d th e t e s t i m o ny w a s a p p r o p r i at e . 

### B . A n a dv e r s e i n fe r e n c e i n s tru c t i o n w o u l d h av e b e e n i n a p p ro p r i at e b e c au s e d e fe n d an t s w e r e a b l e t o s at i s fa c t o r il y e xp l a i n th e i r fa i l ur e t o p ro d u c e th e b ill i n g r e c o r d s . · P l a i n t i ff s a l s o o b j e c t e d t o t e s t i m o ny o f th e 

### b i l l i n g r e c o r d s b e c au s e th e y w e r e n e v e r p r o d u c e d p ri or t o tr i a l. 1 4 2 P l a i n t i ff s ar g u e an a dv e r s e i n f

e re n c e j ur

y i n s tru c t i o n s h o u l d h av e b e e n g i v e n . 1 4 3 A n a dv e r s e i n fe r e n c e i n s tru c t i o n a ll o w s a fa c t - fi n d e r t o c o n cl u d e th at e v i d e n c e , w h i c h w a s i n a p arty ' s c o n tr o l an d th at w a s n o t p ro d u c e d p r i o r t o tr i a l , w a s d e tr i m e nt a l t o th at p atty ' s c a s e . An a dv e r s e i n fe r e n c e i n s tru c t i o n i s n o t m an d at o ry , b ut rath e r , i t i s p e rm i s s i v e . 1 4 4 I n o r d e r fo r th e i n s tru c t i o n t o b e aw ar d e d , thr e e r e qu i r e m e n t s mu s t b e m e t: 1 ) th e e v i d e n c e w a s w i th i n th e c o n tro l o f o n e p arty i n th e l aw s u i t , 2 ) th e e v i d e n c e w o u l d b e r e l e v an t an d h e l p fu l t o th at p arty , an d 3 ) th e p arty d o e s n o t s at i s fa c t o r i l y e xp l a i n w hy th e e v i d e n c e w a s n o t p ro d u c e d at tri a l. 14 5 H e r e , p l a i n t i ff

s ' cl a i m o f e rr o r fa i l s o n th e th i r d r e qu i r e m e nt. D uri n g a d i s c u s s i o n i n c h amb e r s , d e fe n d an t s e xp l a i n e d th at th e y o ff e r e d t o p r o d

u c e th e e nt ir e S t at e F arm 

### J e ro m e B a k

e r c a s e - fi l e . " ! " H o w e v e r , p l a i nt i ff s r e j e c t e d th at o ff

e r an d o b j e c t e d t oi n f

o rm at i o n fr o m th e fi l e b e i n g i n tro d

u c e d at tr i a l. 1 4 7 T h i s i s r e l e v an t b e c au s e , a s m e n t i o n e d ab o v e , th e 

### J e ro m e B a k

e r c a s e

1 4 1 R e c o r d , 11 / 8 / 2 0 1 6 , * 2 8 , 1 8 - * 2 9 , 1 5 . 1 4 2 R e c o r d , 11 / 2 / 2 0 1 6 , * 2 1 7 , 4 - 7 . 1 4 3 P l. P o s t - T r i a l M e m o , * 3 1 - 3 2 . 1 4 4 S e e K o v a c h v . S o l o m o n , 7 3 2 A . 2 d 1 , 8 ( P a . S u p e r C t. 1 9 9 9 ) ( fi n d i n g a fa c t f i n d e r m a y b e p e r m i t t e d t o d r a w a n a d v e rs e i n fe r e n c e d u e t o a p a rt y ' s fa il u r e t o p ro d u c e e v i d e n c e w i t h i n h i s o r h e r co n t r o l )
. 1 4 5 P A S t a n d a rd J u r

y I n s t r u c t i o n § 5 . 3 0 . 1 4 6 R e c o r d , 1 1 / 3 / 2 0 1 6 , * 9 , 1 4 - 2 5 ; s e e a l s o D e f. P o s t - T r i a l M e m o , E X H I B I T N ( co n t a i n i n g c o r r e s p o n d e n c e b e tw e e n c o u n s e l r e g a rd i n g t h e J e r o m e B a k e r c a s e - fil e . ) 1 4 7 I d . 2 9l e d t o th e R o s e n au - B e n d o c o nv e r s at i o n s . 1 4 8 I fp l a i n t i ff s h a d a c c e p t e d d e f

e n d an t s o ff

e r , p l a i n t i ff

s w o u l d h av e d i s c o v e r e d th e c o nv e r s at i o n s t o o k p l a c e p r i o r t o Jun e 2 0 0 4 , j u s t a s R o s e n au d i s c o v e r e d fr o m r e v i e w i n g h i s b i l l i n g r e c o r d s fr o m th e c a s e s . F urth e rm o r e , i t i s l i k e l y R o s e n au ' s b i ll i n g r e c o r d s c o n t a i n e d c o n fi d e n t i a l att o rn e y - cl i e n t i n fo rm at i o n . 1 4 9 T hu s , b e c au s e th e r e c o r d s m ay h av e b e e n p r i v il e g e d an d d e fe n d an t s p ro v i d e d p l a i n t i ff s w ith th e o p p o rt

un i ty t o d i s c o v e r th e s am e i n fo rm at i o n thro u g h d i ff e r e n t m e an s , th i s c o urt fi n d s d e f

e n d an t s s at i s fa c t o r il y e xp l a i n e d w hy th e e v i d e n c e w a s n o t p r o d u c e d at tri a l. T h e r e fo r e , i t w a s n o t 

### e rr o r t o a dm i t th e t e s t i m o ny o r d e ny p l a i n t i ff s ' r e qu e s t fo r an a dv e r s e i n fe r e n c e j ur

y i n s tru c t i o n . 

### V I. E x c l u d i n g E v i d e n c e o f D e fe n d an t s ' A c t i o n s T ak e n A f t e r th e F ili n g o f th i s L aw s u i t w a s P r o p e r . P l a i n t i ff s cl a i m th e y s h o u l d h av e b e e n p e rm i tt e d t o e nt e r e v i d e n c e o f a c t i o n s t ak e n b y d e fe � d an t s a ft e r th i s l aw s u i t w a s 

### fi l e d . l " M o r e s p e c i fi c a ll y , p l a i n t i ff s s o u g h t t o i n tro d

u c e th e t e s t i m o ny o f

Jo hn S m i th , E s qu i r e ( " S m i th " ) t o e s t ab li s h d am a g e s , 1 5 1 an d S t at e F arm ' s " M i dt o w n M e m o " . 1 5 2 T h i s c o urt e x c l u d e d s u c h e v i d e n c e b e c au s e S m ith ' s t e s t i m o ny w a s b arr e d b y th e j u d i c i a l p ri v i l e g e , an d i n tro d u c t i o n o f

th e " M i dt o w n M e m o " w o u l d h av e b e e n un d u l y p r e j u d i c i a l. 

### A. Li t i g at i o n , a l o n e , c ann o t b e th e b a s i s o f a 

### cl a i m fo r a d e fam at i o n o r t o rt i o u s i n t e r fe r e n c e c l a i m .

· · S m i th s t o p p e d r e fe rr i n g c li e n t s t o C av o t o i n o r aro un d 2 0 1 1 a ft e r h e b e c am e aw ar e o f l e g a l d i s p ut e s b e tw e e n C av o t o an d S t at e F ar m . 1 5 3 T h i s w a s b e c au s e S m i th h a d a p o li c y o f

1 � 8 R e c o r d , 11 /2 /2 0 1 6 , " 2 1 6 , 13 · 2 5 . 1 4 9 D e f . P o s t - T r i a l M e m o , * 2 2 . i s o P l. P o s � - T r i a l M e m o , * 4 7 . 1 5 1 I d . at " 4 8 . 152 I d . at * 4 7 . 1 5 3 D e f . P o s t - T r i a l M e m o , E x . J J , * 4 2 · 4 3 . 3 0

### av o i d i n g any d o c t o r wh o w a s i nv o l v e d i n l i t i g at i o n o r wh o w a s b e i n g i nv e s t i g at e d b y 

### an

i n s uran c e c o mp any .

" Wh e n th e d o c t o r i s un d e r i nv e s t i g at i o n o r un d e r f e d e ra l l i t i g at i o n o r li t i g at i o n b y an e nt i ty s u c h a s S t at e F arm , i t c a ll s i nt o c r e d i b i li ty , e s p e c i a ll y a s i t' s p e n d i n g , wh e th e r o r n o t th e r e ' s s o m e th i n g th e r e . T h e r e m ay b e s o m e th i n g th e r e . S o 

### i f i t w a s a n y 

### i n s uran c e c o mp any , I w o u l d n o t r e fe r a cl i e nt t o a d o c t o r wh o i s b e i n g i nv e s t i g at e d . " 1 5 4 

### S m i th s t o p p e d r e f

e r r i n g cl i e nt s t o C av o t o s i mp l y b e c au s e C av o t o w a s i n th e m i d s t o f l i t i g at i o n w ith " an e nt i ty s u c h a s S t at e F arm . " T h i s c o urt e x cl u d e d s u c h e v i d e n c e b e c au s e th e j u d i c i a l p r i v il e g e s e e k s t o p r o t e c t fr e e a c c e s s t o th e c o urt s , an d th e r e fo r e , th e m e r e e x i s t e n c e o f a l aw s u i t c ann o t b e th e b a s i s o f a d e fam at i o n o r t o rt i o u s int e r fe r e n c e c l a i m . 1 5 5 

### B . I ntro d u c t i o n o f th e " M i dt o w n M e m o " w o u l d h av e r e s u lt e d i n unf a i r p r e j u d i c e . P l a i nt i ff s s o u g h t t o i ntro d

u c e S t at e F arm ' s " M i dt o wn M e m o " t o d e m o n s trat e S t at e F arm ' s c o mm o n p l an o r s c h e m e i n t ar g e t i n g c h i ro p ra c t o r s . 1 5 6 

### T h e " M i dt o wn M e m o " w a s a d o c um e nt d

uri n g a wh o ll y unr e l at e d li t i g at i o n fil e d b y S t at e F arm i n fe d e ra l c o urt a ll e g in g fr au d a g a i n s t s e v e ra l m e d i c a l p ro v i d e r s . 1 5 7 

### Ap p ar e ntl y , th e m e m o d e t a il e d S t at e F arm ' s p l an t o u s e a d e p o s i t i o n t o g a i n i n fo rm at i o n o n a c h i ro p ra c t o r th at h a d b e e n r e l u c t ant t o s p e ak w i th B ab i n � 1 5 8 

### I n i t i a ll y , i t i s w o rth n o t i n g th at th i s c o urt n e v e r e xp l i ci t l y e x cl u d e d i n tr o d u c t i o n o f th e

" M i dt o wn M e m o " i n p r e - tr i a l m o t i o n s , an d p l a i nt i ff s n e v e r att e mp t e d i n tr o d

u c e th e m e m o at tri a l. P l a i nt i ff

s ar g u e th i s c o urt ' s e x c l u s i o n o f e v i d e n c e o f a c t s t ak e n a ft e r Au g u s t 3 1 , 2 0 0 5 , a s

1 5 4 i d . a t * 1 0 1 , 4 · 1 2 ( e m p h a s i s a d d e d )
. 1 5 5 S e e P e l

a g a tt i v . C o h e n , 5 3 6 A. 2 d 1 3 3 7 , 1 3 4 3 ( P a . S u p e r C t. 1 9 8 7 ) ( u p h o l d i n g t r i a l c o u rt s u s t a i n i n g p re l i m i n a r y o b j e c t i o ns b e c a u s e t h e e x i s t e n c e o f a n e a rl i e r l a w s u i t fife d b y t h e d e f e n d a n t a g a i n s t t h e p l a i n t i ff c a n n o t b e t h e b a s i s o f d e fa m a t i o n o r t o rt i o u s i n t e r fe r e n c e cl a i m s s i n c e a l a w s u i t i s a b s o l u t e l y j u d i ci a ll y p r i v il e g e d )
. 1 5 6 P l. P o s t - T r i a l M e m o , * 4 7 . 1 5 7 D e f
. P o s t - T r i a l M e m o , * 4 7 - 4 8 , F N 1 9 . 1 5 8 P l. P o s t - T r i a l M e m o , * 4 7 - 4 8 . 3 1

### th e r e a s o n 

### why th e m e m o w a s i n a dm i s s i b l e ; 1 5 9 

### h o w e v e r , 

### i t i s n o t cl e ar th e m e m o w a s wr i tt e n

a ft e r Au g u s t 3 1 , 2 0 0 5 . P l a i nt i ff s ' c o un s e l , Jo n ath an C a s s , wro t e d e fe n d ant s an e - m a i l p ri o r t o tr i a l a s k i n g fo r th e

" o r i g i n a l d at e " o f th e m e m o ran d um - wh ic h h e b e l i e v e d w a s " s o m e t i m e i n 2 0 0 0 . " 1 6 0 

### F urth e rm o r e , th i s c o urt 

### d e fe rr e d ru l i n g o n d e fe n d ant s ' m o t i o n i n l i m i n e t o e x cl u d e e v i d e n c e o f

" unr e l at e d l aw s u i t s " - i n w h i c h th e M i dt o w n l aw s u i t an d m e m o w e r e e xp li c i tl y r e fe r e n c e d . 1 6 1 

### C o n s e qu e nt l y , i t i s n o t cl e ar p l a i nt i ff s p r e s e rv e d th i s c l a i m o f e rr o r fo r p o s t - tr i a l m o t i o n s . N e v e rth e l e s s , a s s um i n g , a rgu e n do , 

### th at p l a i nt i ff s h a d att e mp t e d t o i ntro d

u c e th e

" M i dt o w n M e m o " at tr i a l , th i s c o urt w o u l d h av e e x c l u d e d i t a s un d u l y p r e j u d i ci a l p ur s u an t t o P a . R. E . 4 0 3 . U n d e r P a . RE . 4 0 3 , " T h e c o urt m ay e x cl u d e r e l e v ant e v i d e n c e i f i t s p ro b at i v e v a l u e i s o utw e i g h e d b y a d an g e r o f o n e o r m o r e o f th e fo ll o w i n g : un fa i r p r e j u d i c e , c o n fu s i n g th e i s s u e s , m i s l e a d i n g th e j ur

y , un d u e d e l ay , w a s t i n g t i m e , o r n e e d l e s s l y p r e s e n t i n g c umu l at i v e e v i d e n c e . " 1 6 2 

### In 

### th i s s i tu at i o n , a ll o w i n g i ntro d u c t i o n o f th e " M i dt o w n M e m o " w o u l d h av e l i k e l y r e s u l t e d i n un fa i r p r e

j u d i c e b y c o n fu s i n g th e i s s u e s an d m i s l e a d i n g th e j ur y ; w h e r e a s , i t s p r o b at i v e v a l u e w a s m i n i m a l. If 

### th e m e m o w e r e i ntr o d u c e d , d e fe n d ant s w o u l d h av e b e e n fo r c e d t o r e - l i t i g at e th e r e a s o n ab l e n e s s o fth e i r a c t i o n s i n th e M i dt o w n l aw s u i t - wh i c h r e s u l t e d i n a j ur y v e r d i c t i n fav o r o f S t at e F arm 1 6 3


### - an d a l s o d e fe n d th e a c t i o n s th e y t o o k wh il e i nv e s t i g at i n g C av o t o . T hi s c o u l d h av e e a s i l y r e s u l t e d i n c o n fu s i o n o f th e i s s u e s fo r th e j ur y . F urth e rm o r e , th e

1 5 9 I d . at 4 7 . 1 6 0 D e f
. P o s t - T r i a l M e m o , * 4 9 ; D e f
. P o s t - T r i a l E x . H H . 1 6 1 C a v o t o v . S t a te F a rm , e t a l . , 0 5 0 6 0 1 6 3 0 , M I L C n t l # 1 6 0 9 3 5 4 3 . 1 6 2 P a . R . E . 4 0 3 . 1 6 3 D e f
. P o s t - T r i a l M e m o , * 4 7 - 4 8 , F N 1 9 . 3 2a c t i o n s d e fe n d ant s t o o k d ur i n g a l aw s u i t , i n wh i c h 

### th e y w e r e s u c c e s s fu l o n th e m e r i t s an d w h i c h d i d n o t i nv o l v e C av o t o , w o u l d h av e p ro v i d e d m i n i m a l p ro b at i v e v a l u e t o p l a i n t i ff s ' c a s e . T h e r e fo r e , th e M i dt o w n M e m o an d t e s t i m o ny o f S m i th w e r e p ro p e rl y e x cl u d e d . 

### V H . T h e T e s t i m o ny o f 

### J ' A my 

### K l u e n d e r W a s U n fa i rl y 

### P r e j u d i c i a l . J ' 

### A my K l u e n d e r ( " K l u e n d e r " ) b e g an w o rk i n g fo r S t at e F arm ' s S I U e i g h t y e ar s a ft e r th i s l aw s u i t w a s fi l e d . S i m i l ar t o th e p ur p o s e fo r th e " M i dt o w n M e m o " , i t s e e m s th e p ur p o s e o f c a ll i n g K l u e n d e r w a s t o e l i c i t t e s t i m o ny ab o ut S t at e F arm ' s " h ab i t o r c o ur s e o f c o n d u c t i n i nv e s t i g at i n g o th e r m e d i c a l p ro v i d e r s . " 1 6 4 T h i s c o urt e x cl u d e d s u c h e v i d e n c e o n th e b a s i s o f l a c k o f p e r s o n a l kn o w l e d g e an d th at i t s i n tro d u c t i o n w o u l d h av e b e e n un fa i rl y p r e j u d i c i a l. U n d e r P a . R. E . 4 0 4 ( b ) , e v i d e n c e o f a p arty ' s c r i m e , w ro n g , o r o th e r a c t i s a dm i s s i b l e i f i t i s b e i n g i ntr o d

u c e d t o e s t ab l i s h " m o t i v e , o p p o rt un i ty , i n t e n t , p r e p arat i o n , p l an , kn o w l e d g e , i d e nt ity , a

b s e n c e o f m i s t ak e , o r l a c k o f a c c i d e nt. 1 6 5 U n d e r P a . R . E . 4 0 6 , e v i d e n c e o f a p e r s o n ' s h ab i t m ay b e i ntro d

u c e d t o p ro v e th e p e r s o n a c t e d i n a c c o r d an c e w i th th at h ab i t. 1 6 6 I n an unr e l at e d l aw s u i t fi l e d b y a c h i ro p ra c t o r a g a i n s t S t at e F arm , th e c h i ro p ra c t o r s ub m i tt e d an a ffi d av i t fr o m K l u e n d e r. 1 6 7 Ap p ar e n t l y , th e a ffi d av i t d e t a i l e d S t at e F arm ' s li t i g at i o n p ra c t i c e s an d p ro c e d ur e s fo ll o w e d b y th e C o n c o r dv ill e S IU , th e un i t i n w h i c h B ab i n w o rk e d . 1 6 8 D ur i n g th at l aw s u i t , S t at e F arm w a s a b l e t o s u c c e s s fu ll y p l a c e th e a f fi d av i t un d e r s e a l , w h e r e i t r e m a i n s . P ? T h i s c o urt fo un d K l u e n d e r ' s t e s t i m o ny w o u l d h av e b e e n t o o att e nu at e d t o b e a dm i s s i b l e un d e r e ith e r P a . R . E. 4 0 4 ( b ) o r 4 0 6 . F i r s t , K l u e n d e r d i d n o t b e g i n h e r e mp l o y m e n t w i th S t at e

1 5 4 P l. P o s t - T r i a l M e m o , * 4 9 . 1 6 5 P a . R . E . 4 0 4 ( b )( 2 )
. i s s S e e P a . R . E . 4 0 6 . 1 6 7 C a v o t o v . S t a t e F a r m , e t o l., 0 5 0 6 0 1 6 3 0 , M I L C n t l. If 1 6 0 9 3 5 3 3 , D e f
. M o t. 'l] 13 . 1 6 8 P l. P o s t - T r i a l M e m o , * 5 0 . 1 6 9 M I L C n t l. ti 1 6 0 9 3 5 3 3 , D e f
. M o t. '11 1 7 . 3 3F arm un t i l 2 0 1 3 - a l m o s t a d e c a d e a ft e r th e e v e n t s wh i c h l e d t o th i s 

### l aw s u i t . ! " ? A s s u c h , s h e h a d

n o kn o w l e d g e o f S t at e F arm ' s p ra c t i c e s an d p ro c e d ur e s d ur i n g th e p e r i o d i n qu e s t i o n . S e c o n d , a ll o w i n g e v i d e n c e o f S t at e F arm ' s p ra c t i c e s i n unre l at e d l aw s u i t s w o u l d c r e at e un fa i r p r e j u d i c e b y fo r c i n g S t at e F arm t o r e - l i t i g at e i t s a c t i o n s i n th o s e m att e r s . A n d th i r d , e v i d e n c e o f S t at e F arm ' s p o li c i e s i n 2 0 1 3 w o u l d h av e m i n i m a l p ro b at i v e v a l u e i n p r o v i n g w h at S t at e F arm ' s p o l i c i e s w e r e b e tw e e n 2 0 0 3 an d 2 0 0 5 , a s S t at e F arm c o u l d h av e d e v e l o p e d th o s e p o l i c i e s any t i m e b e tw e e n 2 0 0 5 an d 2 0 13 . T h e r e fo r e , th e t e s t i m o ny o f K l u e n d e r w a s p r o p e r l y e x c l u d e d d ur i n g p r e - tri a l m o t i o n s . 

### V II I. · T e s ti m o ny o f S t at e F ar m 1 

### s " H a 1 · d

b a ll " L i t i g ati o n T a c t i c s w a s H e ar s ay an d T o o A tt e nu at e d . · P l a i n t i ff s s o u g h t t o c a ll G ar

y H e s l i n , E s qu i r e ( " H e s li n " ) fo r th e p urp o s e t o r e c o unt i n g a c o nv e r s at i o n h e h a d w i th F r e d S m i th , E s qu i r e ( " F r e d S m i th " ) - a p artn e r at th e D i o n R o s e n au l aw fi rm . I n th at c o nv e r s at i o n , F r e d S m i th a ll e g e d l y i n fo rm e d H e s li n th at S t at e F arm w o u l d i nv e s t i g at e any m e d i c a l p ro v i d e r w h o h a s r e c o v e r e d o v e r $ 1 , 0 0 0 , 0 0 0 fr o m S t at e F arm i n s ur e d s , an d u s e " h ar d

b a ll " li t i g at i o n t a c t i c s i n l aw s u i t s i nv o l v i n g th e p ro v i d e r ' s o ffi c e . 1 7 1 A t tr i a l , th i s c o urt e x cl u d e d th e t e s t i m o ny o f H e s l i n b e c au s e 

### i t w a s t o o att e nu at e d an d h e ar s ay . P l a i n t i ff s ar g u e F r e d S m i th ' s s t at e m e n t i s a dm i s s i b l e a s a s t at e m e n t b y ap a rt y o p p o n e n t ' s a g e nt. 172 Y e t , F r e d S m ith w a s n o t an e mp l o y e e o r a g e n t o f S t at e F arm , an d d i d n o t h av e th e �

. s am e e x t e n s i v e r e l at i o n s h i p w i th S t at e F arm a s R o s e n au . F r e d S m i th d o e s n o t b e c o m e an a g e n t o f S t at e F arm s i mp l y 

### b y v i rtu e o f b e i n g R o s e n au ' s c o ll e a g u e . P l a i n t i ff s h a d s e v e ra l y e ar s t o l o c at e a S t at e F ann e mp l o y e e w h o c o u l d t e s t i f y t o th i s a ll e g e d c o mp any p o li c y w i th s u ffi c i e nt

1 7 0 M I L C n t l. # 1 6 0 9 3 5 3 3 , D e f . M o t. 'I] 1 4 . 171 M I L C n t l. II 1 6 0 9 3 4 9 5 , P l. O p p o . M e m o , E x . A , * 3 9 , 2 1 - * 4 0 , 1 0 . 172 P l. P o s t - T r i a l M e m o , * 5 6 - 5 7 . 3 4p e r s o n a l k n o w l e d g e , an d a

p p ar e n t l y c o u l d n o t fi n d o n e =- f urth e r s u p p o rt i n g th e t e s t i m o ny ' s 

### unre l i a b i l i ty . H o w e v e r , a s s um i n g , 

### a rgue n do , th i s c o urt e rr e d i n e x c l u d i n g th e t e s t i m o ny , th e e r ro r w a s h arm l e s s . A s d i s c u s s e d 

### i n fra , p l a i n t i ff

s fa i l e d t o e s t ab l i s h any p ro s p e c t i v e o r e x i s t i n g c o ntra c t u a l r e l at i o n s h i p th at S t at e F arm c o u l d h av e t o rt u o u s l y i n t e r fe r e d w i th . H e s l i n s t at e d h i s r e l at i o n s h i p w i th C av o t o w a s n o t a ff e c t e d . !" T h e r e fo r e , e v e n i f H e s l i n ' s t e s t i m o ny w e r e r e l i ab l e an d a dm i s s i b l e , p l a i n t i ff

s w o u l d h av e s t i ll fa i l e d t o p r e s e n t a cl a i m fo r t o rt i o u s i n t e r fe r e n c e . 

### I X . A s i d e F r o m H i s T e s t i m o n y B e i n g P r i v il e g e d , R o b e r t D a t n e r , E s q u ir e L a c k e d S u ffi c i e n t K n o w l e d g e t o T e s t i f

y . P l a i n t i ff s s o u g h t t o c a ll R o b e rt D atn e r , E s qu i r e (" D atn e r " ) t o t e s t i fy a b o ut " d i s p ara g i n g r e m ark s " R o s e n au h a d m a d e a b o ut C av o t o d

ur i n g a d e p o s i t i o n . T h i s c o urt e x c l u d e d D atri e r ' s t e s t i m o ny d

u e t o l a c k o fp e r s o n a l kn o w l e d g e an d th e j u d i c i a l p r i v i l e g e . D ur i n g h i s d e p o s i t i o n , D atn e r c o u l d n o t r e c a ll any s p e ci fi c r e m ark R o s e n au a ll e g e d l y m a d e a b o ut C av o t o .17 4 In s t e a d , h e s t at e d : " I d o n ' t r e c a ll th e s p e c i fi c s o fw h at R o s e n au s a i d , b ut I d o b e li e v e h e m a d e - I d o h av e a s p e c i fi c r e c o ll e c t i o n th at 

### it w a s a d i s p ara g i n g c o mm e nt a b o ut C av o t o . . " 175 L at e r o n , D atn e r att e mp t e d t o c o mmun i c at e th e g i s t o f R o s e n au ' s s t at e m e n t .

" I' m tr y i n g t o r e c r e at e th i s w i th o ut mu c h m e m o r y h e r e . I' m qu a li fy i n g th i s s t at e m e n t b y s ay i n g , 

### th i s i s p ro b a b l y n o t 

### w h a t M

r. R o s e n a u s a i d

, b ut my r e c o ll e c t i o n o f w h at h e s a i d w a s s o m e th i n g a l o n g th e li n e s o f

, ' C av o t c ' s tr o ub l e . B e c ar e fu l i n d e a l i n g w i th h i m ' s o m e th i n g li k e th at. " 176

173 M f l C n t l. # 1 6 0 9 3 4 9 5 , "' 2 9 , 9 - 1 1. 174 D e f
. P o s t - T r i a l M e m o , E x . R , a t 

### * 13 , l · S . 1 7 5 I d . a t 

### * 13 , 2 - 5 . i z s 1 d . a t >t 8 5 , 3 - 9 ( e m p h a s i s a d d e d ) . 3 5

### I n o r d e r t o e s t ab l i s h a c l a i m o f d e fam at i o n , th e p l a i n t i ff mu s t s p e c i fi c a ll y p l e a d an d p ro v e

th e d e fam at o r

y s t at e m e nt. 177 

### H e r e , D atn e r c o u l d n o t r e c a ll th e s t at e m e n t , an d e v e n a dm i tt e d h e i s

" w i th o ut mu c h m e m o ry h e r e . " A s s u c h , h e d i d n o t h av e s u ffi ci e n t p e r s o n a l kn o w l e d g e t o t e s t i f y . E v e n d i s r e g ar d i n g D arn e r ' s s p e c u l at i v e m e m o r y , R o s e n au ' s s t at e m e n t s w e r e p ro t e c t e d b y j u d i c i a l p r i v i l e g e . O n e th i n g D atn e r r e c a ll e d fo r c e rt a i n w a s th at R o s e n au ' s s t at e m e nt s o c c ur r e d d ur i n g a d e p o s i t i o n " i n th e c o ur s e o f h an d l i n g an a c c i d e n t c a s e i nv o l v i n g C av o t o a s tr e at i n g c h i ro p ra c t o r. " 1 7 8 

### T hu s ; th e s t at e m e n t s w e r e m a d e i n th e c o ur s e o f j u d i c i a l p ro c e e d i n g s ab o ut a m att e r m at e ri a l an d p e rt i n e n t t o th e p ro c e e d i n g , an d w e r e p r o p e rl y e x cl u d e d . X . B a s e d o n th e A dm i tt e d E v i d e n c e , G r an t o f N o n s u i t w a s P r o p e r . 

### A t th e c l o s e o f p l a i nt i ff

s ' c a s e i n c h i e f

, d e fe n d ant s m o v e d fo r 

### a n o n - s u i t o n a ll c o un t s . T h i s c o urt p art i a ll y g ran t e d th e m o t i o n , d i s m i s s i n g a ll o f th e cl a i m s e x c e p t th e d e fam at i o n c l a i m a g a i n s t R o s e n au . N o n s u i t m ay b e e n t e r e d o n l y u p o n a fi n d i n g th at a j ur

y , " v i e w i n g th e e v i d e n c e an d a ll r e a s o n ab l e 

### i n fe r e n c e s ari s i n g fr o m 

### i t i n th e l i g h t m o s t fav o rab l e t o th e p l a i nt i ff , c o u l d n o t r e a s o n a b l y c o n c l u d e th at th e e l e m e nt s o f th e c au s e o f a c t i o n h a d b e e n e s t a b li s h e d . " 1 7 9 

### A tri a l c o urt ' s g rant o f n o n s u i t i s r e v e r s e d o n l y u p o n fi n d i n g an a

b u s e o f d i s c r e t i o n o r an e rr o r o f l aw . 1 8 0 

### I n th e i r p o s t - tri a l m o t i o n , p l a i nt i ff s ar g u e i t w a s e rr o r fo r 

### th i s c o urt : 1 ) t o g r an t n o n - s u i t o n th e c l a i m o f t o rt i o u s i nt e r fe r e n c e b e c au s e an a c t o f d e fam at i o n c o n s t i t ut e s t o rt i o u s i n t e r f e r e n c e ! " : 

### 2 ) t o g rant S t at e F arm ' s m o t i o n fo r 

### n o n - s u it o n th e c l a i m o f d e fam at i o n b e c au s e

177 S e e G r

a h a m , 4 6 8 A . 2 d at 4 5 7 . 1 7 8 I d . at "' 8 , 2 · 6 . 1 7 9 B r i n i c h v . I

e n c ka , 7 5 7 A . 2 d 3 8 8 , 4 0 2 ( P a . S u p e r. C t . 2 0 0 0 ) . 1 8 0 S e e Ha rv

e y v . R o u s e C h a m b e r

l i n , Ltd . , 9 0 1 A . 2 d 5 2 3 , 5 2 6 ( P a . S u p e r . C t . 2 0 0 6 ) . 1 8 1 P f. P o s t - T r i a l M e m o , * 5 9 . 3 6R o s e n au ' s s t at e m e n t s ar e i mp ut e d t o S t at e F arm thro u g h th e p r i n c i p l e s o f a g e n c y ; 1 8 2 an d 3 ) t o

g ran t n o n - s u i t o n th e cl a i m o f c o n s p i ra c y b e c au s e , 

### i f n o a g e n c y r e l at i o n s h i p w a s e s t ab l i s h e d b e tw e e n R o s e n au an d S t at e F arm , th e r e w a s s u f fi c i e n t e v i d e n c e t o e s t ab l i s h an i mp l i c i t a g r e e m e nt b e tw e e n th e m t o i n j ur e C av o t o ' s r e p ut at i o n . 1 8 3 A ft e r r e v i e w i n g p l a i n t i ff s ' ar g um e nt s , th i s c o urt fi n d s : I ) any e r ro r w i th r e s p e c t t o p l a i n t i ff s ' c l a i m fo r t o rt i o u s i n t e r fe r e n c e w a s h arm l e s s ; 2 ) R o s e n au w a s n o t a c t i n g a s S t at e F arm ' s a g e n t d

uri n g h i s c o nv e r s at i o n w i th B e n d o ; an d 3 ) th e r e w a s i n s u ffi c i e n t e v i d e n c e o f S t at e F arm ' s p art i c i p at i o n o r i nv o l v e m e n t t o s u p p o rt a cl a i m fo r c o n s p i r a c y . A . P l a i n t i ff

s fa i l e d t o e s t ab li s h th e b a s i c e l e m e nt s o f a t o 1 i i o u s i n t e r fe r e n c e c l a i m . T o e s t ab li s h a c l a i m fo r t o rt i o u s i n t e r fe r e n c e w i th c o n tra c t u a l r e l at i o n s h i p s , a c o n tra c tu a l o r p ro s p e c t i v e c o n tra c tu a l r e l at i o n s h i p mu s t b e s h o w n . 

### B y th e cl o s e o f i t s c a s e - i n - c h i e f , p l a i n t i ff s h a d fa i l e d t o e s t ab li s h th at e s s e n t i a l e l e m e nt. I n fa c t , C av o t o e xp l i ci t l y d e n i e d 

### i t e x i s t e d . 1 8 4 A s s u c h , th e r e w a s i n s u ffi c i e n t e v i d e n c e fr o m w h i c h a r e a s o n ab l e j ur y c o u l d c o n c l u d e th at a c o n tra c t

u a l r e l at i o n s h i p h a d b e e n i n t e r fe r e d w i th . T h e r e fo r e , th e c o un t w a s p ro p e rl y d i s m i s s e d a s t o a ll d e f

e n d an t s , an d any h arm t o C av o t o ' s b u s i n e s s b a s e d o n s t at e m e n t s m a d e ab o ut C av o t o w o u l d h av e t o b e p ur s u e d un d e r a c l a i m fo r d e fam at i o n . B . T h e r e w a s i n s u ffi c i e n t e v i d e n c e s u g g e s t i n g S t at e F arm d i r e c t e d o r p art i ci p at e d i n th e d e fam at o r

y c o n d u c t. P l a i n t i ff s p r e s e n t e d o n e w itn e s s , B e n d o , t o s u p p o rt a c l a i m fo r d e fam at i o n a g a i n s t b o th d e fe n d ant s . B e n d o r e c o un t e d tw o p h o n e c o nv e r s at i o n s h e h a d w i th R o s e n au i n w h i c h R o s e n au

1 8 2 td , a t * 5 6 . 1 8 3 / d . at * 5 8 . i s 4 R e c o r d , 1 1 /4 / 2 0 1 6 , * 2 5 , 1 4 - * 2 6 , 1 6 . 3 7

### a ll e g e d l y m a d e d i s p ar a g i n g s t at e m e nt s a b o ut C av o t o . 1 8 5 

### T h i s c o urt h e l d th e fi r s t c o nv e r s at i o n w a s a b s o l ut e l y p r i v i l e g e d , b ut a ll o w e d th e s e c o n d c o nv e r s at i o n t o b e p r e s e n t e d t o th e j ury . P l a i nt i ff s c o nt e n d th at R o s e n au ' s s t at e m e nt s i n th at p h o n e c o nv e r s at i o n s h o u l d b e i mp ut e d t o S t at e F arm thro u g h th e p ri n ci p l e s o f a g e n c y . P l a i n t i ff s ar g u e an att o rn e y i s an a g e nt o f h i s c l i e nt , an d " any a c t s p e r fo rm e d an d s t at e m e nt s m a d e b y th e att o rn e y w i t h i n t h e s c o p e 

### o f h i s o r h e r o wn e mp l o ym e nt an d auth o r i ty ar e b i n d i n g u p o n th e c / i e n t . " 1 8 6 

### T h i s i s a c o r

r e c t p r i n c i p l e o f l aw , an d th i s c o urt e mp l o y e d i t t o i mp ut e D i c km an ' s s t at e m e nt s t o C av o t o ; h o w e v e r , th e c o nt e x t o f R o s e n au ' s c o nv e r s at i o n an d h i s r e l at i o n s h i p w ith S t at e F arm ar e d i s t i n g u i s h a b l e . F i r s t , th i s c o urt a ll o w e d th e s e c o n d c o nv e r s at i o n t o b e a dm i tt e d b e c au s e R o s e n au w a s n o t s p e ak in g o n a m att e r p e rt i n e nt an d m at e ri a l t o any li t i g at i o n i n wh i c h h e o r h i s c li e nt w a s i nv o l v e d . I n o th e r w o r d s , h e w a s a c t i n g o u t s i d e t h e s c o p e 

### o f h i s e mp l o ym e nt at th e t i m e . A s s u c h , th e p ri n ci p l e s o f a g e n c y w o u l d n o t i mp ut e h i s s t at e m e nt s t o S t at e F arm . S e c o n d , e v e n a s s um i n g h e w a s a c t i n g w i thi n th e s c o p e o f h i s e mp l o ym e nt , S t at e F arm i s n o t R o s e n au ' s c li e nt ; rath e r , R o s e n au ' s c li e nt i s th e i n s ur e d o f S t at e F arm . R o s e n au ' s r e l at i o n s h i p w i th S t at e F arm i s ak i n t o th e r e l at i o n s h i p p ar e nt s m ay h av e w i th th e i r c hi l d ' s att o rn e y . Wh i l e th e p ar e nt s typ i c a ll y r e t a i n an d p ay th e fe e s o fth e att o rn e y , th e att o rn e y ' s l o y a l ty i s t o th e c h il d i f th e r e i s e v e r a c o n fli c t b e tw e e n th e g o a l s o fth e c h i l d an d p ar e nt s . T h e s am e i s tru e h e r e . Wh i l e S t at e F arm i s th e o n e wh o r e t a i n s R o s e n au an d u l t i m at e l y p ay s h i s fe e s · thr o u g h th e i n s ur e d p o l i c yh o l d e r ' s c o v e ra g e p l an , th e cl i e nt an d d e ci s i o n - m ak e r i n th e l i t i g at i o n i s th e i n s ur e d . A s s u c h , S t at e F arm i s , at b e s t , an i nt e r e s t e d th i r d - p arty .

1 8 5 S e e R e c o r d , 1 1 /2 / 2 0 1 6 , * 1 0 9 - 11 4 . 1 6 6 P l. P o s t - T r i a l M e m o , * 5 7 ( c i t i n g W e i n e r v . /. e e , 6 6 9 A . 2 d 4 2 4 , 4 2 8 ( P a . C o mmw . C t . 1 9 9 5 ) ) ( e mp h a s i s a d d e d ) .

3 8T h e r e fo r e , i n o r d e r t o h o l d S t at e F arm l i ab l e , p l a i n t i ff s n e e d e d t o p ro v i d e e v i d e n c e th at S t at e F arm d i r e c t e d o r p art i c i p at e d i n th e p u b l i c at i o n o f th e d e fam at o r y s t at e m e nt . ! " P l a i n t i ff s fa i l e d t o d o s o . T h e o n l y d e fam at o r

y s t at e m e n t a dm i tt e d i n t o e v i d e n c e w a s o n e w h e r e R o s e n au g av e a dv i c e o n h o w B e n d o s h o u l d h an d l e a ll c a s e s i nv o l v i n g C av o t o - i n cl u d i n g fut ur e c a s e s th at w o u l d n o t i nv o l v e S t at e F arm . P l a i n t i ff s fa il e d t o p r e s e n t any e v i d e n c e e v e n s u g g e s t i n g S t at e F arm d i r e c t e d R o s e n au t o p ro v i d e a dv i c e t o B e n d o o n h o w t o m an a g e th o s e c a s e s . T h e r e fo r e , b e c au s e th e r e w a s n o e v i d e n c e e s t a b l i s h i n g e i th e r an a g e n c y r e l at i o n s h i p o r th at S t at e F arm p art i c i p at e d i n R o s e n au ' s s t at e m e n t s s t at e m e n t s , th i s c o urt c o rr e c t l y d e t e rm i n e d a c l a i m fo r d e fam at i o n w a s n o t e s t ab li s h e d a g a i n s t S t at e F arm . C . A cl a i m fo r c o n s p i ra c y c ann o t s t an d a g a i n s t o n e b a d a c t o r. A c l a i m fo r c o n s p i ra c y c ann o t li e w i th o ut an un d e rl y i n g t o rt , an d an i n d i v i d u a l c ann o t c o n s p i r e w i th h i m s e l f

. 1 8 8 T o s t at e a c l a i m fo r c o n s p i ra c y , a p l a i n t i ff mu s t s h o w : " th at tw o o r m o r e p e r s o n s c o mb i n e d o r a g r e e d w i th i n t e n t t o d o an un l awfu l a c t o r t o d o an o th e rw i s e l awfu l a c t b y un l awfu l 

### m e an s . " ! " A ft e r d e f e n d ant s ' m o t i o n fo r n o n s u i t , th e o n l y r e m a i n i n g cl a i m w a s d e fam a t i o n a g a i n s t R o s e n au . Ab s e n t e v i d e n c e o f S t at e f arm ' s i nv o l v e m e n t o r p art i c i p at i o n i n R o s e n au ' s d e fam at o r

y s t at e m e n t s , a c l a i m fo r c o n s p i ra c y c ann o t li e . A s d i s c u s s e d m o r e fu ll y i n th e p r e v i o u s s e c t i o n , R o s e n au a c t e d o n h i s o w n a c c o r d i n hi s s e c o n d c o nv e r s at i o n w i th B e n d o . T h e r e fo r e , b e c au s e p l a i n t i ff s fa i l e d t o p r e s e nt e v i d e n c e o f tw o a c t o r s c o n s p i r i n g t o a c h i e v e an i mp ro p e r g o a l , th e c o n s p i ra c y c l a i m w a s p ro p e rl y d i s m i s s e d .

1 8 7 Er t e l v . P a t r i o t - Ne w s 

### c o . , 6 7 4 A. 2 d 1 0 3 8 , 1 0 4 3 { P a . 1 9 9 6 ) . 1 8 8 S e e R o c k v

. R o n g o s , 6 1 A. 3 d 2 3 9 , 2 4 9 ( P a . S u p e r . C t . 2 0 13 ) . 1 8 9 T h o mp s o n C o a l C o . v

. Pi k e C o a l C o . , 4 1 2 A. 2 d 4 6 6 , 4 72 ( P a . 1 9 7 9 ) . 3 9C O N C L U S K O N



### Wh e r e fo r e , fo r th e r e a s o n s c o nt a i n e d a b o v e , p l a i nt i ff

s ' p o s t - tri a l m o t i o n fo r a n e w tr i a l i s d e n i e d .

B Y T H E 

### C O U R T :

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