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MARTIN MARGOLIS v. FRANK W. JACKSON (04/05/88)

submitted: April 5, 1988.

MARTIN MARGOLIS, JOHN BLACK, AND MILTON LOPUS, T/D/B/A FINANCIAL MANAGEMENT SERVICES, A PARTNERSHIP, APPELLANTS,
v.
FRANK W. JACKSON, JACKSON GASTROENTEROLOGY LTD., AND POLYCLINIC MEDICAL CENTER



Appeal from the Order of the Court of Common Pleas, Dauphin County, Civil Division, at No. 2855 S 1986.

COUNSEL

Spero T. Lappas, Harrisburg, for appellants.

Wayne R. Spivey, Philadelphia, for appellees.

Brosky, Montemuro and Johnson, JJ. Montemuro, J., concurs in the result.

Author: Brosky

[ 375 Pa. Super. Page 183]

This is an appeal from an order dismissing appellants' cause of action.

Martin Margolis, John Black and Milton Lopus together make up a partnership known as Financial Management Services. Milton Lopus and the partnership sued appellees alleging an economic loss suffered as a result of tortious acts committed upon Milton Lopus. Upon demurrer the appellant partnership was dismissed. Appellant argues that a partnership has or should have a cause of action against a defendant whose negligence has caused the partnership

[ 375 Pa. Super. Page 184]

    to suffer lost income. We disagree and affirm the order appealed from.

Appellees provided certain medical services to Milton Lopus who subsequently suffered a serious illness. Lopus sued appellees alleging personal injury; Financial Management Services was an additional party and alleged economic loss due to the inability of Lopus to perform his functions in the partnership. Appellant argues its cause of action is not precluded by Pennsylvania law. We must conclude otherwise.

All parties involved here have argued the applicability of our Supreme Court's holding in Philadelphia v. Philadelphia Rapid Transit Company, 337 Pa. 1, 10 A.2d 434 (1940). There, the City of Philadelphia attempted to recover damages in the form of wages and expenses paid to three firemen as a result of injuries they received when a trolley operated by the appellee struck a fire truck. The Court stated that whatever right the city had to recover such damages must be based upon the equitable doctrine of subrogation, and, in so doing, implicitly indicated that the city had no cause of action in its own right.

In Whirley Industries, Inc. v. Segel, 316 Pa. Super. 75, 462 A.2d 800 (1983), a panel of this court concluded that an employer's cause of action against a third party could not be maintained where the employer sought recovery for increased workers compensation premiums resulting from a motor vehicle accident involving the third party and the employer's employee. We made this conclusion even after acknowledging that, under ...


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