Latest 2 Cases: Gregg v. Ameriprise Financial, et al. (Civil Procedure), J.F. v. Department of Human Services (Family Law)

The Upside-Down Treatment of Religious Exceptions Cases in the Supreme Court

MICHAEL C. DORF

Cornell law professor Michael C. Dorf comments on the U.S. Supreme Court’s decision last week to reject an emergency application from the State of Alabama to lift a stay on the execution of Willie B. Smith III. Professor Dorf observes the Court’s unusual alignment of votes in the decision and argues that, particularly as reflected by the recent COVID-19 decisions, the liberal and conservative Justices have essentially swapped places from the seminal 1990 case Employment Division v. Smith, which established that the First Amendment does not guarantee a right to exceptions from neutral laws of general applicability.

Read More

Gregg v. Ameriprise Financial, et al.

Docket: 29 WAP 2019

Opinion Date: February 17, 2021

Judge: Wecht

Areas of Law: Civil Procedure, Consumer Law, Contracts

In 1999, Gary and Mary Gregg sought the expertise of Robert Kovalchik, a financial advisor and insurance salesperson for Ameriprise Financial, Inc. Engaging in what the trial court concluded was deceptive sales practices, Kovalchik made material misrepresentations to the Greggs to induce them to buy certain insurance policies. The Greggs ultimately sued Ameriprise Financial, Inc., Ameriprise Financial Services, Inc., Riversource Life Ins. Co., and Kovalchik (collectively, Ameriprise) under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (“CPL”). The Greggs’ complaint also asserted, inter alia, common law claims for negligent misrepresentation and fraudulent misrepresentation. The case proceeded to a jury trial on the common law claims, resulting in a defense verdict. The CPL claim proceeded to a bench trial. After the trial court ruled in favor of the Greggs on that CPL claim, Ameriprise filed a motion for post-trial relief arguing (among other points) that the Greggs failed to establish that Kovalchik’s misrepresentations were, at the very least, negligent, a finding that Ameriprise asserted was required to establish deceptive conduct under the CPL. The trial court denied relief, and the Superior Court affirmed. Like the trial court, the Superior Court concluded that the Greggs were not required to prevail on the common law claims of fraudulent misrepresentation or negligent misrepresentation in order to succeed on their CPL claim. The issue this case presented for the Pennsylvania Supreme Court's review centered on whether, as the Superior Court held, a strict liability standard applied to the Greggs’ CPL claim. The Court determined the relevant statutory provision lead it to conclude deceptive conduct under the CPL was not dependent in any respect upon proof of the actor’s state of mind. "The Superior Court’s holding is consistent not only with the plain language of the CPL, but also with our precedent holding that the CPL is a remedial statute that should be construed broadly in order to comport with the legislative will to eradicate unscrupulous business practices."

J.F. v. Department of Human Services

Docket: 72 MAP 2019

Opinion Date: February 17, 2021

Judge: Dougherty

Areas of Law: Family Law, Government & Administrative Law

Upon completion of an investigation of a report of child abuse, the Pennsylvania Department of Human Services (DHS) or its designated county children and youth agency (county agency) categorizes the investigated report as “indicated,” “founded,” or “unfounded.” When a report of child abuse was substantiated as either indicated or founded, or amended from indicated or founded, the named perpetrator is provided with notice of the status, including the effect of a substantiated report upon future employment opportunities involving children, and the individual’s name was added to the statewide child abuse database where it could remain indefinitely. On July 6, 2017, the county agency filed two identical indicated reports (CPS reports) identifying J.F. as a perpetrator of abuse of her fifteen-month-old twin children. While her administrative appeal of the CPS reports was pending, J.F. entered into an Accelerated Rehabilitative Disposition (ARD) for both criminal counts of endangering the welfare of children. As a result of J.F.’s entry into ARD, the county agency changed the status of the CPS reports from “indicated” to “founded,” then filed a motion to dismiss J.F.’s administrative appeal, attaching the criminal court docket, and averring the factual circumstances of the ARD were the same as the CPS reports which authorized the county agency to change the reports’ status to founded. The Pennsylvania Supreme Court granted discretionary review to determine whether J.F., seeking to challenge the founded report, was entitled an administrative hearing. The Court held that in the absence of another appropriate forum to challenge DHS’s adjudication of child abuse in a recorded evidentiary hearing, a named perpetrator in a report designated as “founded” based upon the perpetrator’s voluntary entry into an accelerated rehabilitative disposition was entitled to an administrative hearing.