Opinion ID: 2077623
Heading Depth: 1
Heading Rank: 2

Heading: Kmonk-Sullivan v. State Farm Mutual Automobile Insurance Company

Text: In Kmonk-Sullivan, approximately fifty passengers on a Port Authority of Allegheny County (hereinafter PAT) bus sustained injuries when it collided head-on with another PAT bus. PAT is a Commonwealth agency and is therefore subject to the statutory provisions for sovereign immunity and exceptions to sovereign immunity pursuant to the Judicial Code. The Judicial Code provides that, in an action against the Commonwealth arising from the same cause of action or transaction or occurrence, the damages the Commonwealth must pay are limited to no more than $250,000.00 for any one person or a total of $1,000,000.00. 42 Pa.C.S. § 8528(b). PAT filed an interpleader action in the Court of Common Pleas of Allegheny County and paid the injured individuals $1,000,000.00. Unfortunately, once the money was distributed among the injured individuals, it only satisfied approximately one-third of their damages. Thereafter, thirty-four of the injured individuals filed UIM claims with their own automobile insurance carriers (Appellant-insurers) to recover the remaining portion of their damages. Based on the exclusions in each policy, which explicitly excluded governmental vehicles from the definition of an underinsured vehicle, the insurers denied the claims. The injured individuals filed an application for declaratory judgment in the Court of Common Pleas of Allegheny County. The trial court entered an Adjudication and Decree Nisi on stipulated facts in favor of the insureds finding that a statutory damage cap on the amount of damages does not preclude a claimant from being legally entitled to recover damages. Kmonk-Sullivan v. State Farm Mutual Automotive Ins. Co., GD 97-01115, slip. op. at 5 (Allegheny Co. Ct. of Commom Pleas, Oct. 10, 1997). On December 10, 1997, the trial court then denied the insurers' post-trial motions and entered a final judgment. The insurance companies filed an appeal with the Superior Court. On September 3, 1998, a three-judge panel reversed the trial court. However, on April 1, 1999, the Superior Court granted the insureds' Application for Reargument. The Superior Court en banc affirmed the decision of the trial court in favor of the insureds and concluded that the government vehicle exclusions impermissibly conflicted with the provisions of the MVFRL and violated public policy. Kmonk-Sullivan v. State Farm Mutual Automobile Insurance Co., 746 A.2d 1118 (Pa.Super.1999).