On December 28, 2012, the Pennsylvania Supreme Court ruled that delay damages are to be calculated on the molded verdict not the actual jury verdict.
As background, the Marlettes were involved in an automobile accident. They sued the driver, who was uninsured and their own insurer State Farm for uninsured motorist (“UM”) coverage. The policy limit for UM coverage was $250,000.
After the jury trial the jury awarded Mr. Marlette $550,000 for bodily injuries and lost wages and Mrs. Marlette $150,000 for loss of consortium. The Court molded the verdict to reflect the $250,000 State Farm policy limit and with a credit for an earlier payment it resulted in a verdict of $233,306.98.
The question was whether the Marlettes were entitled to delay damages on the jury verdict of $700,000 or the molded verdict of $233,306.98.
The Allegheny Court of Common Pleas ruled that the award of delay damages would be based on the molded verdict. On appeal, the Pa Superior Court in a divided opinion found that the award of delay damages would be based upon the jury verdict. The Pa Supreme Court reversed the Pa Superior Court and directed that the Court of Common Pleas award be reinstated.