Koken v. Precision Framing
Villanova Insurance Company provided workers compensation insurance to defendant and cross-complainant Precision Framing, Inc. from October 1999 to October 2001. Villanova was later placed into involuntary liquidation in California and Pennsylvania. Plaintiff and cross defendant M. Diane Koken, in her capacity as the insurance commissioner of Pennsylvania and liquidator of Villanova, filed a lawsuit to recover $150,190 from Precision in unpaid workers compensation insurance premiums. Precision alleged as an affirmative defense a setoff for the entire amount, which it explained at trial was based on Villanovas unclean hands that caused Precisions insurance costs to another insurance company to increase. The jury awarded Koken $18,190, and the trial court entered a judgment of $19,360.80 in her favor. Koken contends the judgment must be reversed because there was no right to a setoff, there was insufficient evidence Villanova had unclean hands, and the jury instruction on unclean hands was incorrect. Court agree with Koken and reverse the judgment.
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