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Defense Digest

On the Pulse…Recent Appellate Victories*

Defense Digest, Vol. 31, No. 4, December 2025

December 1, 2025

Carol VanderWoude (Philadelphia, PA) convinced the Commonwealth Court of Pennsylvania to reverse the trial court’s denial of motions for post-trial relief and to direct entry of judgment notwithstanding the verdict (jnov) in favor of Marshall Dennehey’s client. The plaintiff alleged he was injured while standing unsupported on a moving bus. He claimed that he lost his balance when the bus accelerated away from a bus stop and that he grabbed an overhead bar to keep from falling and injured his arm. The video showed only that the plaintiff lost his balance when the bus started moving. At trial, the defense moved for nonsuit and directed verdict, arguing that the evidence was insufficient, particularly in light of the video evidence, to overcome the jerk-and-jolt doctrine applicable to a passenger injured on a moving bus. Submission of a jerk-and-jolt case to a jury requires a sudden stop or jerk so unusual and extraordinary as to be beyond a passenger’s reasonable anticipation. The trial court denied our motions for nonsuit and directed verdict, as well as post-trial motions, having determined that the video evidence presented a jury question under the jerk-and-jolt doctrine. After independently reviewing the video evidence, the Commonwealth Court reversed and granted jnov to the defendant, pointing out that various of the trial court’s observations “were not supported by the video or testimony” adduced at trial. 

Carol and Aaron Moore (Wilmington, DE) obtained the Delaware Supreme Court’s affirmance of the trial court’s dismissal of a complex legal malpractice claim. The plaintiffs, seven affiliated companies and their owners in the business of developing property, had been sued by their bank for defaulting on multiple lines of credit. The bank filed multiple lawsuits against the property developers, claiming approximately $7 million in damages, plus attorneys’ fees, which were recoverable pursuant to the terms of the promissory notes. The property developers retained our client to defend the lawsuits, asserting that the amounts claimed to be owed to the bank were significantly overstated. Our client vigorously defended the bank’s underlying lawsuits. Ultimately, the property developers settled the bank’s lawsuits for the entire amount owed, plus interest, and the bank’s legal fees. The developers argued that its attorneys should have advised them to settle the bank’s claims after the lawsuits were commenced and that, if they had done so, they would not have had to pay the bank’s legal fees ($825,000), our client’s legal fees ($485,000), our expert witness fees ($335,000), or the additional interest on the loan. The property developers also claimed that not settling with the bank earlier caused them lost business opportunities valued at nearly $1 million. The plaintiffs’ legal malpractice claims were dismissed because their expert witness, a Maryland attorney with no business litigation experience, was not qualified to serve as an expert and because their damage claims were speculative.

Kimberly Berman and Matthew Wildner (both of Fort Lauderdale, FL) succeeded in obtaining an affirmance by the Fourth District Court of Appeal of a final order dismissing claims against Marshall Dennehey’s client, a professional engineer and his engineering firm, in a construction defect case in Florida. The appeal presented an issue of whether a non-supervisory engineer and his firm, who were retained by a third party to examine and inspect a contractor’s work, which third party then told the contractor to stop work, could be held liable for professional negligence. The trial court dismissed the professional negligence claims with prejudice, and without oral argument. The appellate court affirmed. 

Kimberly House (Philadelphia, PA) convinced the Pennsylvania Superior Court to dismiss the plaintiffs’ appeal of a judgment on a defense verdict for our client that was obtained by Allison Krupp (Harrisburg, PA). Our client issued a professional liability insurance policy to the plaintiffs, who were sued for legal malpractice. They notified our client of the suit and asked them to provide counsel to defend the matter. The plaintiffs never agreed to counsel proposed by our client. The plaintiffs then proceeded to mediation in the legal malpractice action and settled the matter without notifying our client. As a result, our client denied the plaintiffs’ request for indemnification. The plaintiffs brought suit for breach of contract and bad faith. In the trial handled by Allision, the jury returned a defense verdict, and the plaintiffs filed post-trial motions, which were denied. On appeal, the plaintiffs argued that the trial court erred in allowing the jury to see a copy of the insurance contract during their deliberations. The Superior Court dismissed the appeal, finding that the plaintiffs waived their argument by failing to cite to relevant legal authority in their appellate brief. The Superior Court also stated in a footnote that, should the court have reached the issue on appeal, it would have found it meritless because the insurance contract was a central piece of evidence to which the plaintiffs did not object during trial. 

Kimberly and Scott Gemberling (both of Philadelphia, PA) successfully defended the plaintiff’s appeal of a trial court decision sustaining a preliminary objection on the ground of improper venue. In the underlying case, the Philadelphia Court of Common Pleas found that venue was improper in Philadelphia County and ordered that the case be transferred to Centre County, and the plaintiff appealed. The Pennsylvania Superior Court, in a precedential decision, affirmed the trial court’s decision and found that there was no abuse of discretion. In support of its decision, the Superior Court found that the plaintiff’s arguments were unsupported by Pennsylvania law. The Superior Court, in finding waiver of an issue, quoted directly from the brief prepared by Kim. 

Audrey Copeland (King of Prussia, PA) obtained the Pennsylvania Commonwealth Court en banc’s affirmance of the grant of summary judgment on remand in favor of our client, which had been obtained by Patricia Monahan (Pittsburgh, PA). The court denied the plaintiff’s (a retiring police officer) claim for unjust enrichment and breach of contract regarding his pension benefits. It was the law of the case from the prior appeal that, although the plaintiff’s employment contract stated that he would be entitled to Act 600 pension benefits, he had an existing Act 15 pension pursuant to an ordinance under the Pennsylvania Municipal Retirement Law and the defendant Borough had never enacted an ordinance to establish an Act 600 pension. The Borough was not unjustly enriched by not providing the plaintiff with such a plan and, too, the Borough did not “fail” to contribute the plaintiff’s pension contributions to a pension plan. The court also upheld denial of the plaintiff’s breach of contract claim. 

Audrey also persuaded the Pennsylvania Superior Court to affirm the trial court’s transfer of venue from Philadelphia County to York County obtained by her and Edward McGinn (King of Prussia, PA) for our client. The court had found that our client had no Philadelphia presence, customers, or sales and was in the business of processing and packaging canned and frozen vegetables. The Superior Court found that importing raw vegetable material through the Port of Philadelphia and the use of third-party vendors to carry out the importation and transportation was analogous to the purchase of supplies and did not meet the standard of “regularly conducting business.” Venue was also not proper merely because the defendant’s products were offered for sale in Philadelphia stores. 

Audrey and Suzanne Utke (Philadelphia, PA) obtained the dismissal of the plaintiff’s appeal of judgment in favor of Marshall Dennehey’s client as the plaintiff and his attorney failed to file post-trial motions after the defense verdict. Therefore, they had waived all issues for appeal. 

John Hare and Shane Haselbarth (both of Philadelphia, PA) conduced a successful oral argument before the Supreme Court of Pennsylvania that resulted in the Court’s unanimous ruling to uphold statutory employer immunity on Pennsylvania construction sites. The six Justices who voted rejected the plaintiff’s arguments that such immunity should be overturned as antiquated and should be deemed waivable. Read more about this case in The Legal Intelligencer. 

*Results do not guarantee a similar result. 


Defense Digest, Vol. 31, No. 4, December 2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2025 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Mitigating Long-Tail Liability: Delaware Court Reaffirms Five-Year Workers’ Compensation Deadline

Williamson v. Donald F. Deaven, Inc., No. N25A-07-004 FWW, 2026 LX 252526 (Del. Super. Ct. June 2, 2026) Claimant was involved in a compensable industrial work accident on May 12, 1995, for a low back injury.  Following this, he received compensation for temporary total disability benefits from July 1996 to September 1996 and for sustaining a permanent impairment in 1997 and 1998. For the next 23 years, the claimant continued treatment and paid his own medical bills without submitting them to the employer’s insurer. In November 2021, the claimant filed a petition seeking payment for medical expenses, including prospective surgery and a resulting period of total disability. The employer moved to dismiss the petition, arguing it was barred by Delaware’s five-year statute of limitations (19 Del. C. § 2361(b)). Pursuant to 18 Del. C. § 3914, insurers must provide prompt written notice of the applicable statute of limitations to invoke the five-year deadline. Due to the age of the case, neither party had a comprehensive file of the claim and the Board had archived its file of the matter. The carrier’s computer system retained only bare information indicating that payments occurred and agreements and receipts were filed with the Board in 1997. While the claimant argued that the employer could not prove it provided the mandatory statutory notice, the Hearing Officer recovered the archived file, which contained two “Receipts for Compensation Paid” signed by the claimant. The receipts explicitly contained the required five-year limitation language, which the claimant testified to signing at the hearing. The claimant also attempted to introduce evidence of payments he claimed the employer made, which would have extended the statute of limitations. As a preliminary matter, the hearing officer excluded the testimony about the payments because the claimant did not produce them to the employer. The Board found in favor of the employer and dismissed the claimant’s petition as time-barred. The claimant appealed the Board’s decision, arguing that he never received adequate notice of the statute of limitations and that the hearing officer’s evidentiary ruling was an abuse of discretion. The Court held that the archived, signed receipts constituted substantial evidence that the insurer fulfilled its statutory notice requirements. Therefore, the claimant’s petition was time-barred under the statute of limitations provisions of 19 Del. C. § 2361(b). Furthermore, the Court reinforced strict procedural compliance: it rejected the claimant’s attempts to introduce evidence of payment on appeal, ruling the argument was waived for failure to preserve it while the matter was still before the Board. This recent ruling by the Court underscores the importance and necessity of robust data preservation and precise compliance with notice requirements. For risk managers, employers, and insurers, the decision highlights how tight administrative execution protects against catastrophic long-tail liability.

Thought Leadership

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.