Opinion ID: 2373573
Heading Depth: 1
Heading Rank: 10

Heading: proportional payments method

Text: Section VI of the Plan allows for interim partial payments made periodically on Class 4 Adjusted Claims (Policyholder Loss Claims and Guaranty Association Loss Claims) of $5,000.00 or less per Adjusted Claim as cash is available. After a thorough review of this provision, the Commonwealth Court approved the Plan with the following modifications: first, payments were required to be made pursuant to this provision by June 1, 1990 according to a payment schedule and schedule of distribution dates submitted for the Court's approval; second, the Court modified the Plan so that payments of these small claims to single persons or entities with more than one claim shall be taken into account in the proportional payment program. Grode, 132 Pa.Commw.Ct. at 219, 572 A.2d at 809. The Commonwealth Court agreed with the Policyholders Committee that this latter modification will minimize the preference otherwise given to policyholders with multiple claims. Id. The small payment provision will accelerate the disposition of numerous claims which would otherwise develop into greater expense to the estate. The payment of small claims whether adjusted or not by the date of the order approving the plan is likewise, legitimate and reasonable. As the Commonwealth Court properly reasoned, a distinction between adjusted claims or unadjusted claims which limited payment under this provision solely to unadjusted claims, would punish these claimants who have thus far cooperated with the estate by resolving disputes and settling claims during the pendency of these proceedings. Id.