Phil. Cnty. Pa. *2206

As amended through December 18, 2021
Rule *2206 - Petitions for Approval of Settlements and Distribution in Wrongful Death/Survival Actions. See also Pa.R.C.P. No. 2206 and Phila.Civ.R. *2039 and *2064
(A)When Required.
(1)Survival Action. Court approval of settlements in Survival Actions brought for the benefit of the estate is always required.
(2)Wrongful Death. If a Wrongful Death claim, brought for the benefit of the appropriate intestate heirs, is raised, Court approval of settlements shall be required only where a minor or incapacitated person has an interest.
(3)Combined Wrongful Death and Survival Actions. If both Wrongful Death and Survival Action claims are raised, Court approval is required.
(B)Situs of the Filing of the Petition.
(1) Petitions for Approval of Settlements in Wrongful Death or Survival Actions shall be electronically filed with the Office of Judicial Records, Civil (formerly the ''Prothonotary'') if suit was commenced in the Trial Division. Upon expiration of the Response period, thePetition shall be assigned to the Administrative Judge of the Orphans' Court Division for disposition and the entry of an appropriate final appealable Order. The Order shall be docketed and served on all interested parties by the Office of Judicial Records.
(2) If Settlement is reached prior to the commencement of a lawsuit and no Civil Docket number has been assigned, the Petition for Approval shall be electronically filed with the Clerk of the Orphans' Court Division. Upon expiration of the Response period, the Petition shall be assigned to the Administrative Judge of the Orphans' Court Division for disposition and the entry of an appropriate final appealable Order. The Order shall be docketed and served on all interested parties by the Clerk of the Orphans' Court Division.
(C)Notice to Government Agencies. Notice of the settlement must be given to the Pennsylvania Department of Revenue and the Pennsylvania Department of Human Services.
(D)Contents of Petition. The Petition shall be substantially in the form set forth hereunder, and shall:
(1) Set forth the date of death of the decedent, the name of the personal representative of the estate and the county of appointment. A copy of the Decree of the Register of Wills granting Letters and a copy of the Will, if any, must be attached;
(2) State the terms of the settlement, including the specific allocation as between Wrongful Death and Survival Action, name the Wrongful Death beneficiaries and the amount each is to receive, name the intestate heirs of decedent as of the date the cause of action arose, state reasons why the settlement and allocation are reasonable, and otherwise comply with Pa.R.C.P. No. 2206.
(3) In the event a portion of the settlement is payable through the purchase of an annuity, set forth the credit rating of the entity assuming responsibility for future payment, the present cost of the annuity, as well as the schedule and amount of periodic and lump sum payments;
(4) Show compliance with Pa.R.C.P. Nos. 2205 and 2207, and set forth the name, date of birth, relationship and address of decedent's intestate heirs (as set forth in 20 Pa.C.S. §§ 2201 et seq.), and the name, date of birth and address of all beneficiaries under the Will, who must be served with a copy of the Petition;
(5) State whether a lien or claim has been raised on behalf of any medical care provider or payer, including the Department of Human Services and Medicare; and
(6) Contain or be accompanied by the following:
(a) Statement of the final lien amount from the Department of Human Services;
(b)
(1) Statement of the amount paid by Medicare for medical costs as reflected on the relevant Explanations of Benefits received from the Medicare payers and Conditional Payment letters received from the Medicare Secondary Payer Recovery Contractor. This amount should constitute the maximum Medicare reimbursement exposure to the plaintiff for which funds from the settlement amount should be reserved. Should the actual reimbursement to Medicare be less than the reserved amount as a result of allowances by Medicare for the fees, costs or other factors, the balance shall be distributed in accordance with the Court Order, and shall be reflected in the Affidavit of Compliance filed with the Court.
(2) In the event that compliance with the Court's Order is not fully accomplished, the attorney shall describe the extent of compliance and any reasons for delay in an Affidavitfiled within 60 days of the entry of the Order. A subsequent Affidavit shall be filed upon complete satisfaction of the terms of the Order.
(c) Approval of the allocation from the Pennsylvania Department of Revenue;
(d) A statement of the professional opinion of counsel as to the reasonableness of the proposed settlement and the basis for such opinion.
(e) A statement setting forth the following:
(i) the time between the injury and death;
(ii) whether or not the decedent was conscious, and the circumstances prior to his or her death;
(iii) the amount of the medical and funeral bills;
(iv) the amount of the decedent's wage loss;
(v) the age, employment and any other circumstances of any potential beneficiaries under the Wrongful Death Act.
(f) Proof of service of the initiation of the wrongful death action as required under Pa.R.C.P. No. 2205.
(g) Identification of any other parties who may have a possible interest in the decedent's estate, and list unpaid claims raised, or which are outstanding, in the decedent's estate; and
(h) A proposed Order, approving the settlement and allocation between wrongful death and survival, substantially in the form set forth in (H) below.
(E)Service. Notice. Proof of Service. Petitions filed pursuant to Section (B)(1) above shall be served as provided in Phila.Civ.R. *205.4(f)(7) and Pa.R.C.P. No. 205.4(g). Petitions filed pursuant to Section (B)(2) above shall be noticed as provided in Pa.O.C. Rule 3.5. Service to all parties in interest not effectuated through the Electronic Filing System shall be effectuated by mailing Notice of the filing of the Petition and a copy of the Petition by first-class United States mail, postage prepaid. Proof of Service and a copy of the notice shall be appended to the Petition or filed after service, as appropriate.
(F)Compliance with Court Order and Proof of Deposit. Within sixty (60) days of the entry of a final Order of Distribution, counsel shall electronically file an Affidavit of Compliance with the Court maintaining the docket of the matter, either with Office of Judicial Records or with the Clerk of the Orphans' Court Division. The Affidavit of Compliance shall certify compliance with the Order, attach a copy of the said Order and shall submit proof of deposit in the restricted account, annuity, structured settlement or trust as ordered. The Affidavit of Compliance shall be substantially in the form set forth in (H) below.
(G)Release of Defendant. After Court approval of the gross amount of the settlement, but before Court approval of the distribution, the plaintiffs may sign a release to discharge the settling defendant and the Court may issue an Order to Settle, Discontinue and End to the settling parties. If plaintiff releases and discharges a defendant pursuant to this subsection, defendant's draft or check is to be made payable to all plaintiff(s) and to counsel for plaintiff(s), to be deposited into a separate insured interest-bearing escrow account or the attorney's Interest on Lawyers Trust Account (IOLTA), pending an Order of Distribution from the Court. This subsection is intended to allow prompt tender of settlement proceeds independent of issues involving distribution.
(H)Forms. See Appendix.

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11 In the event the Petition is filed in the Orphans' Court Division, the caption must comply with Pa.O.C. 3.2.

12 In the event any court has appointed a guardian for a minor heir or incapacitated person, set forth the name of the guardian, the Court date and manner of appointment.

13Petitioner must indicate whether the Department of Human Services has a claim or a lien against Petitioners, the Estate or any wrongful death beneficiaries.

14 In the event a portion of the settlement is payable through the purchase of an annuity, set forth the credit rating of the entity which assumes responsibility for future payments, the present cost of the annuity, as well as the periodic and lump sum payments sought

15 Counsel is cautioned to specifically provide the requested distribution. Requests that distribution be "as per attached Order" are not acceptable.

16 Unless waived by all beneficiaries or interested parties, the response period shall be thirty (30) days.

17 In the event the beneficiary is an incapacitated person, appropriate changes are to be made.

18 In the event part of the settlement proceeds are payable through the purchase of an annuity, the terms of the annuity shall be set forth in the Order.

Phil. Cnty. Pa. *2206

Adopted May 19, 2016, effective 7/11/2016.