A state judge has ruled against an insurance company seeking to sever claims against it in an underinsured motorist lawsuit over an accident caused by an allegedly intoxicated driver.

Lackawanna County Common Pleas Judge Terrence Nealon denied LM General Insurance company's motion to bifurcate the compensatory and punitive damages claims and stay UIM claims against it while claims against the tortfeasor can be litigated.

Plaintiffs Sari and Michael Martin were injured in an automobile accident with third party driver Jeffrey Ochenduszko, who according to Nealon's opinion, admitted liability in the case. However, after the defendant's insurer tendered the policy limits in settlement, the plaintiffs argued the amount was not sufficient to cover economic and non-economic damages. The plaintiffs sued for punitive damages for Ochenduszko's alleged intoxication.

“Although bifurcation of the compensatory damages and punitive damages claims appears warranted, that decision is to be made by the assigned trial judge after discover has been completed and this matter has been certified for trial,” Nealon said. “In the interim, no legitimate basis exists for severing the the tort and UIM claims for discovery and pre-trial purposes or for staying litigation progress of the UIM claims.”

LM argued that it would be prejudiced by evidence of Ochenduszko's alleged intoxication and reckless actions while driving. The company said such evidence would be irrelevant in terms of compensatory damages, according to Nealon.

Nealon agreed that in general bifurcation is useful for such purposes, but that decision could only be made by the judge assigned to handle the trial.

“Therefore, although LM General has articulated legitimate reasons for bifurcating the trial into a first phase in which Ochenduszko has admitted liability and the jury will determine the amount of compensatory damages, followed by a second phase in which the Martins' punitive damages claim against Ochenduszko will be litigated, that determination should be made by the presiding trial judge,” Nealon said. “Accordingly, any ruling on LM General's motion to sever for purposes of trial will be deferred to the assigned trial judge.”

Matthew Perry of O'Malley, Harris, Durkin & Perry in Scranton represents the plaintiffs and did not respond to a request for comment.

Michael Connolly of Marshall Dennehey Warner Coleman & Goggin in Scranton represents LM and did not respond to a request for comment.

(Copies of the 18-page opinion in Martin v. Ochenduszko, PICS No. 19-0107, are available at http://at.law.com/PICS.)