J-A03003-18
NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37
THOMAS WILLIAMS, : IN THE SUPERIOR COURT OF
ADMINISTRATOR OF THE ESTATE OF : PENNSYLVANIA
GARDENIA WILLIAMS, DECEASED :
:
Appellant :
:
v. :
:
PENN CENTER FOR REHABILITATION :
AND CARE; HOSPITAL OF THE :
UNIVERSITY OF PENNSYLVANIA; :
TRUSTEES OF THE UNIVERSITY OF :
PENNSYLVANIA; MANORCARE OF :
YEADON, LLC AND MANOR CARE :
INC. D/B/A MANOR CARE HEALTH :
SERVICES :
:
Appellees : No. 2259 EDA 2017
Appeal from the Order Entered June 23, 2017
In the Court of Common Pleas of Philadelphia County
Civil Division at No(s): May Term, 2011 No. 3790
BEFORE: GANTMAN, P.J., McLAUGHLIN, J., and PLATT*, J.
MEMORANDUM BY GANTMAN, P.J.: FILED JUNE 20, 2018
Appellant, Thomas Williams, Administrator of the Estate of Gardenia
Williams, deceased, appeals from the order entered in the Philadelphia
County Court of Common Pleas, which awarded record costs under 42
Pa.C.S.A. § 1726, in favor of Appellee, Penn Center for Rehabilitation and
Care in the amount of $794.02; and in favor of Appellee, Hospital of the
University of Pennsylvania; Trustees of the University of Pennsylvania, in the
amount of $563.30, following disposition of the underlying medical
malpractice case. We affirm.
____________________________________
* Retired Senior Judge assigned to the Superior Court.
J-A03003-18
The trial court opinion correctly set forth the relevant facts and
procedural history of this case. Therefore, we have no need to restate them.
We add that the court ordered Appellant, on July 6, 2017, to file a concise
statement of errors complained of on appeal, per Pa.R.A.P. 1925(b).
Appellant timely complied on July 26, 2017.
Appellant raises the following issue:
WHETHER THE TRIAL COURT ERRED IN GRANTING
APPELLEES’ BILLS OF COST?
(Appellant’s Brief at 3).
Following a thorough review of the record, the briefs of the parties, the
applicable law, and the well-reasoned opinion of the Honorable Daniel J.
Anders, we conclude Appellant’s issue merits no relief. The trial court
opinion comprehensively discusses and properly disposes of the question
presented. (See Trial Court Opinion, dated September 25, 2017, at 1-7)
(finding: recovery of record costs is established exception to American Rule;
Deputy Director of OJR adjudicated $794.02 of record costs and $0.00 of
non-record costs to Appellee Penn Center for Rehabilitation and Care, and
$563.30 of record costs and $0.00 of non-record costs to Appellee Hospital
of University of Pennsylvania; trial court had no discretion to deny record
costs; when court denied Appellant’s motions to strike Appellees’ bills of
costs, court merely enforced generally established exception to American
Rule; this case did not involve any exemption to award of standard taxable
costs under 42 Pa.C.S.A. § 1726; case was private, medical professional
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J-A03003-18
liability action, in which law is generally certain; bills of costs did not impose
on Appellant “actual costs or a multiple thereof as a penalty”; Deputy
Director of OJR found in favor of Appellees and awarded only those costs
reflected in record; Appellees submitted appropriate verifications with their
respective bills of costs; regarding hardship, Appellant failed to submit
anything to court to support his claim that limited awards of costs would
impose substantial hardship or injustice). Accordingly, we affirm based on
the trial court’s opinion.
Order affirmed.
Judgment Entered.
Joseph D. Seletyn, Esq.
Prothonotary
Date: 6/20/18
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Circulated 06/05/2018 01:57 PM
IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY
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TRIAL DIVISION-CIVIL
THOMAS WILLIAMS, ADMINISTRATOR OF THE 2259 EDA 2017
ESTATE OF GARDENIA WILLIAMS, DECEASED,
Plaintiff/Appellant, Trial Court Case No. 110503 790
v.
PENN CENTER FOR REHABILITATION AND CARE, :,
, ..
HOSPITAL OF THE UNIVERSITY OF " .. t
PENNSYLVANIA, TRUSTEES OF THE UNIVERSITY
OF PENNSYLVANIA, MANORCARE OF YEADON,
LLC, and MANOR CARE INC. D/B/ A MANOR CARE
HEALTH SERVICES,
Defendants/ Appellees.
.)
OPINION I )
Plaintiff Thomas Williams, Administrator of the Estate of Gardenia Williams, Deceased
appeals the trial court's denials of both Plaintiff's Motion to Strike Defendant Penn Center for
Rehabilitation and Care's Bill of Costs and Plaintiff's Motion to Strike Defendant Hospital of the
University of Pennsylvania and Trustees of the University of Pennsylvania's Bill of Costs; For
the reasons herein, the Superior Court should affirm the trial court's denials of Plaintiffs
Motions to Strike Defendants' Bills of Costs.
FACTUAL AND PROCEDURAL HISTORY
As the prevailing party in the underlying medical professional liability action, Defendants
filed Bills of Costs with Plaintiff. After Plaintiff filed exceptions and objections to both Defendants'
Bills of Costs, Deputy Director of the Office of Judicial Records (''Deputy Director of OJR") heard
oral argument on April 21, 2017. On April 26, 2017, the Deputy Director of OJR adjudicated
Defendants' Bills of Costs and found in favor of Defendants. See Adjudications Sur Bills of Costs
(adjudicating $794.02 ofrecord costs and $0.00 of non-record costs to Defendant Penn Center for
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Rehabilitation and Care, and $563.30 of record costs and $0.00 of non-record costs to Defendant
Hospital of the University of Pennsylvania and Trustee of the University of Pennsylvania).
On May 5, 2017, Plaintiff filed a Notice of Appeal from both Adjudications Sur Bills of
Costs with the Court of Common Pleas of Philadelphia County. On June 22, 2017, the trial court
denied Plaintiffs Motions to Strike Defendants' Bills of Costs. On June 30, 2017, Plaintiff filed
a timely Notice of Appeal with the Superior Court of Pennsylvania.
DISCUSSION
On appeal, Plaintiff claims the trial court erred as follows: 1 (1) the trial court created a
new taxable cost rule without having had the authority to do so under 42 Pa. C.S.A. § 1726(a)
and, through that rule, violated 42 Pa. C.S.A. § 1726(a)(2)(ii), 42 Pa. C.S.A. § 1726(a)(3), and
the "American Rule;" (2) Defendants miscategorized the costs Defendants listed as "record
costs" on their Bills of Costs; and (3) the trial court violated 42 Pa. C.S.A. § l 726(a)(2)(iii) and
worked "substantial injustice" by imposing record costs on Plaintiff, a single retiree on a fixed
income.
I Plaintiff also claims that when the trial court denied Plaintiffs motions, the trial court erred because Defendants'
Affidavits to the Bills of Costs were not sworn to. See Plaintiffs Statement of Matters Complained of on Appeal
Pursuant [to] Pa. R.A.P. 1925(b) at 3. This claim of error is without merit because Defendants' Bills of Costs did
contain the appropriate signed Verifications using the prescribed form. See Philadelphia Local Rule of Civil Procedure
§ 227.S(D); See Bill of Costs of Defendants, Hospital of the University of Pennsylvania and Trustees of the University
of Pennsylvania, to Plaintiff, at 5; See Bill of Costs of Defendant, Penn Center for Rehabilitation and Care, at 5.
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1. The Trial Court did not create a new taxable cost rule or violate the "American
Plaintiff claims that trial court erred because it created a new taxable cost rule under 42
Pa. C.S.A. § 1726( a) and, through that rule, violated 42 Pa. C.S .A. § 1726( a)(2)(ii)2, 42 Pa.
C.S.A. § 1726(a)(3)3, and the "American Rule."
"Section 1726 of the Judicial Code authorized the governing authority (the Pennsylvania
Supreme Court) to promulgate general rules governing the imposition of costs. This section also
set forth guidelines for the Supreme Court to consider in prescribing its rules." Arbuckle v. Com.,
Unemployment Comp. Bd. of Review, 478 A.2d 545, 546 (Pa. Commw. Ct. 1984). Plaintiff is
correct that "[s]ection l 726(a) does not purport to set forth governing substantive standards, but
instead is directed at [the Supreme Court of Pennsylvania] (or an entity within the Unified
Judicial System to which [the Supreme Court of Pennsylvania] delegate[s] the authority), as the
defined "governing authority," when prescribing "general rules" on the subject of assessing
costs. In re Farnese, 17 A.3d 357, 370 (Pa. 2011). Plaintiff is also correct that "the list of
considerations enumerated in Section 1726(a) does not create any substantive right in a
prevailing party to recover costs in Pennsylvania." Id.
However, there are more established rules than just 42 Pa. C.S.A. § 1726 that govern the
taxation of costs. There is also the "American Rule" and its generally established exceptions.
2
The trial court did not violate 42 Pa. C.S.A. § 1726(a)(2)(ii) because this case never involved "a public question"
nor was it a case "where the applicable law is uncertain and the purpose of the litigants is primarily to clarify the law."
This was a standard, private, medical professional liability action, the law is generally certain, and neither litigants'
primary purpose was to clarify the law. Therefore, this claim of error is without merit.
3
The trial court did not violate 42 Pa. C.S.A. § 1726(a)(3) because the trial court's denials of Plaintiffs motions did
not impose any "actual costs or a multiple thereof' on Plaintiff. The Deputy Director of the Office of Judicial Records
did not find in favor of Defendants for any of Defendants' actual costs or non-record costs. The Deputy Director of
OJR found in Defendants' favor only for Defendants' record costs. See Adjudication Sur Bill of Costs (adjudicating
$794.02 of record costs and $0.00 of non-record costs to Defendant Penn Center for Rehabilitation and Care, and
$563.30 of record costs and $0.00 of non-record costs to Defendant Hospital of the University of Pennsylvania and
Trustee of the University of Pennsylvania). Therefore, this claim of error is without merit.
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Plaintiff is correct that "[g]enerally, Pennsylvania adheres to the 'American Rule,' which states
that litigants are responsible for their own litigation costs and may not recover them from an
adverse party 'unless there is express statutory authorization, a clear agreement of the parties, or
some other established exception."' Id. at 3 70. But, in such a case as when there is "some other
established exception," "[i]t is a general rule in our judicial system ... that costs inherent in a law
suit are awarded to and should be recoverable by the prevailing party." Smith v. Rohrbaugh, 54
A.3d 892, 897 (Pa. Super. Ct. 2012).
It is important to note that the costs inherent in a lawsuit are different and distinct from
the costs associated with the preparation, consultation, and fees of a lawsuit generally. Id. Record
costs (such as filing fees) are "costs inherent in a law suit," "the costs of proceeding in court," or
"[a]ll costs of record appearing on the docket." Id.; Philadelphia Local Rule of Civil Procedure§
227.5(C)(l). On the other hand, actual costs or non-record costs (such as transcript costs and
witness fees) are the costs of ''preparation, consultation, and fees generally" or "[ c ]osts not
appearing of record." Smith, 54 A.3d at 897; Philadelphia Local Rule of Civil Procedure§
227.5(C)(2). The award and recovery of''record costs is one such [established] exception" to the
general "American Rule." Smith v. Rohrbaugh, 54 A.3d 892, 901 (Pa. Super. Ct. 2012) (Wecht,
J., concurring).
Furthermore, generally, the trial court has no discretion to award or deny proper costs like
record costs to the prevailing party as "[ a]t law the general rule is that [proper] costs follow as a
matter of course,'' not as a matter of the trial court's discretion. Id. at 897. Therefore, the trial
"court has no discretion to award or deny [proper costs]" like record costs to the prevailing party.
Id. at 897-8.
Here, the Deputy Director of OJR adjudicated $794.02 of record costs and $0.00 of non-
record costs to Defendant Penn Center for Rehabilitation and Care, and $563 .30 ofrecord costs
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and $0.00 of non-record costs to Defendant Hospital of the University of Pennsylvania and
Trustee of the University of Pennsylvania. See Adjudications Sur Bills of Costs. The trial court
denied Plaintiffs motions on the basis that those record costs "follow as a matter of course," not
as a matter of the trial court's discretion. Smith, 54 A.3d at 897. The trial court, therefore, had no
discretion to deny the record costs sought by Defendants.
Thus, when the trial court denied Plaintiff's motions, the trial court did not create a new
taxable cost rule under 42 Pa. C.S.A. § l 726(a) and did not violate 42 Pa. C.S.A. §
l 726(a)(2)(ii), 42 Pa. C.S.A. § l 726(a)(3), or the "American Rule." Rather, the trial court
enforced a generally "established exception" to the "American Rule." As a result, this claim of
error is without merit.
2. The Bills of Costs correctly categorized the costs as "Record Costs"
Plaintiff claims that trial court erred when it denied Plaintiffs motions because Defendants
incorrectly categorized the costs Defendants listed as "record costs" on their Bills of Costs.
As stated earlier, record costs (such as filing fees) are "costs inherent in a law suit," "the
costs of proceeding in court," or"[ a]ll costs ofrecord appearing on the docket." Id.; Philadelphia
Local Rule of Civil Procedure§ 227.S(C)(l). On the other hand, actual costs or non-record costs
(such as transcript costs and witness fees) are the costs of"preparation, consultation, and fees
generally" or"[ c ]osts not appearing of record," Smith, 54 A.3d at 897; Philadelphia Local Rule
of Civil Procedure§ 227.5(C)(2). Attorney's fees and costs related to the existence, possession,
or disposition of a fund are generally not an item ofrecoverable taxable costs. 42 Pa. C.S.A. §
1726(a)(l) - (2)(i).
But, here, all of the costs Defendants categorized as "record costs" (first filing fees and
motion fees) are ''costs ofrecord appearing on the docket." See Bill of Costs of Defendants,
Hospital of the University of Pennsylvania and Trustees of the University of Pennsylvania, to
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Plaintiff, at 5; See Bill of Costs of Defendant, Penn Center for Rehabilitation and Care, at 5. As
such, this claim of error is without merit.
3. The Trial Court did not err in finding no "substantial injustice" in imposing record
costs
Plaintiff claims that trial court erred when it found no "substantial injustice" in imposing
the record costs.
"[T]he decision that the imposition of costs would work substantial injustice is within the
discretion of the court, and should be based upon the facts and circumstances of the particular
case." Arbuckle v. Com., Unemployment Comp. Bd. of Review, 478 A.2d 545, 547 (Pa. Cornrow.
Ct. 1984). Generally, when a party seeks relief from court costs due to a financial inability to
pay, for example, to proceed in forma pauperis, the moving party must submit an affidavit
swearing under oath that the party is unable to pay such costs. See Pa. R.C.P. No. 240. The
affidavit serves as some evidence of the veracity of the party's claim.
Here, Plaintiff's counsel did not submit anything in support of her claim that imposition
of costs would work a substantial financial hardship on her client. Plaintiffs counsel did not
submit any financial statements or an affidavit by Plaintiff to substantiate the claim that Plaintiff
cannot pay Defendants' record costs. As a result, there was no absolutely no evidence from
which a trial court may reliably determine that Plaintiff cannot pay Defendants' record costs.
Instead, there was a mere assertion from Plaintiffs counsel that could not be investigated,
verified, or corroborated. Without any such evidence, the trial court properly exercised its
discretion in finding that Plaintiff did not meet his burden of demonstrating that imposition of
record costs on Plaintiff would work a "substantial injustice." As such, this claim of error is
without merit.
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CONCLUSION
Based on the foregoing, the Superior Court should affirm the trial court's denials of
Plaintiffs Motions to Strike Defendants' Bills of Costs.
S, JUDGE
Dated: September 25, 2017