High Court Puts Brakes on Delay Damages for UM Claims

In Marlette v. State Farm Mutual Automobile Insurance, 57 A.3d 1224, 2012 Pa. LEXIS 3009 (Pa. Dec. 28, 2012), the Pennsylvania Supreme Court squarely addressed the issue of whether a plaintiff-insured in an uninsured motorist (UM) claim is entitled to delay damages for the full amount of the jury’s verdict or the legally recoverable molded verdict as reflected by the applicable UM insurance policy limits. Pursuant to Rule 238 of the Pennsylvania Rules of Civil Procedure governing delay damages, the Supreme Court held that the insured’s recovery of delay damages is limited to the amount of the legally recoverable molded verdict.

This UM dispute arose from a 2002 motor vehicle accident wherein an uninsured driver crossed the center line of the roadway in Pittsburgh and sideswiped the vehicle operated by Richard Marlette. As a result of the accident, Marlette sustained serious injuries and sought the recovery of damages. Marlette and his wife, Marleen Marlette, had an insurance policy through State Farm that provided stacked UM coverage limits totaling $250,000.