In the case of Erie Insurance Exchange v. United Services Auto, No. 19 WAP 2024 (Pa. Jan. 21, 2026) (Op. by Donohue, J.), the Pennsylvania Supreme Court addressed the issue of whether one carrier had a claim against another carrier under and allegation of promissory estoppel due to the failure to preserve evidence pertinent to the damages claims presented in a property damage subrogation claim.
According to the Opinion, this matter involved a fire that occurred at an auto repair shop, resulting in damages to the property and several vehicles.
The insurance company for the property paid out damages and then sought reimbursement from those parties allegedly responsible. The insurer who brought the lawsuit suspected that a specific vehicle, insured by another insurance company, was the source of the fire. As such, the Plaintiff insurance company requested that the vehicle in question be preserved for further investigation.
Despite assurances that the vehicle would be preserved, the vehicle was instead sold at a salvage auction, thereby eliminating the possibility of further examination of the vehicle and hindering the Plaintiff’s potential claims against the other parties. The Plaintiff insurance company filed suit based, in part, on the other insurance company's failure to preserve evidence as requested.
The trial court granted summary judgment in favor of the Defendant, concluding that the promissory estoppel claim was, in substance, a claim for negligence spoliation of evidence, which was a cause of action not recognized in Pennsylvania.
The trial court also noted that subrogation principles did not allow recovery because the Defendant had not caused the original property loss.
On appeal, the Superior Court, sitting en banc, reversed and found that the facts might support a promissory estoppel claim. The Superior Court also felt that the trial court erred in dismissing the Complaint on grounds of speculative damages and unrecognized causes of action.
Further up the appellate ladder, the Pennsylvania Supreme Court held that, as subrogee, the Plaintiff insurance company’s rights were limited to recovery from the party responsible for the original loss and, because that Defendant did not cause the fire, no right of recovery existed. As such, the Pennsylvania Supreme Court vacated the Superior Court’s erroneous decision, and reinstated the trial court’s Order in favor of the Defendant.
Anyone wishing to review a copy of the Majority's decision may click this LINK.
The trial court granted summary judgment in favor of the Defendant, concluding that the promissory estoppel claim was, in substance, a claim for negligence spoliation of evidence, which was a cause of action not recognized in Pennsylvania.
The trial court also noted that subrogation principles did not allow recovery because the Defendant had not caused the original property loss.
On appeal, the Superior Court, sitting en banc, reversed and found that the facts might support a promissory estoppel claim. The Superior Court also felt that the trial court erred in dismissing the Complaint on grounds of speculative damages and unrecognized causes of action.
Further up the appellate ladder, the Pennsylvania Supreme Court held that, as subrogee, the Plaintiff insurance company’s rights were limited to recovery from the party responsible for the original loss and, because that Defendant did not cause the fire, no right of recovery existed. As such, the Pennsylvania Supreme Court vacated the Superior Court’s erroneous decision, and reinstated the trial court’s Order in favor of the Defendant.
Anyone wishing to review a copy of the Majority's decision may click this LINK.
Justice Brobson's Concurring and Dissenting Opinion can be viewed HERE.
Justice Dougherty's Dissenting Opinion can be viewed HERE.
Source: Justia Daily Opinion Summaries, www.justia.com (Jan. 22, 2026).
Source: Justia Daily Opinion Summaries, www.justia.com (Jan. 22, 2026).
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