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OLD FORGE SCHOOL DIST. v. HIGHMARK, INC.

924 A.2d 1205 (2007)

OLD FORGE SCHOOL DISTRICT, Lawrence S. Herman, D.C., Nachas, Inc., Jason H. Herman, Robert Petty, R.G. Petty Masonry, On Behalf Of Themselves And All Others Similarly Situated, Appellants, v. HIGHMARK INC., d/b/a Highmark Blue Cross Blue Shield and Pennsylvania Blue Shield, a Non-Profit Pennsylvania Corporation, Hospital Service Association of Northeastern Pennsylvania, d/b/a Blue Cross of Northeastern Pennsylvania, Commonwealth of Pennsylvania, Insurance Department and Insurance Commissioner of the Commonwealth of Pennsylvania, Appellees.

Supreme Court of Pennsylvania.

Decided June 27, 2007.

Attorney(s) appearing for the Case

William E. Hoese, Esq., Joseph C. Kohn, Esq., Kohn, Swift & Graf, P.C., Jerome M. Marcus, Esq., Jonathan Auerbach, Esq., Berger & Montague, P.C., David Samuel Senoff, Esq., Billet & Connor, P.C., Peter David Winebrake, Esq., Winebrake Law Firm, L.L.C. (The), William R. Caroselli, Esq., Caroselli, Beachler, McTiernan & Conboy, L.L.C., Philadelphia, for Lawrence S. Herman, D.C., Nachas, Inc., Jason H. Herman, Robert Petty and R.G. Petty Mason.

Paul Kevin Brobson, Esq., Jack Mentzer Stover, Esq., Buchanan Ingersoll, Harrisburg, for Highmark Inc.

Sandra L. Ykema, Esq., PA Department of Insurance, York, for Insurance Department of the Commonwealth of Pennsylvania.

BEFORE: CAPPY, C.J., and CASTILLE, SAYLOR, EAKIN, BAER, BALDWIN and FITZGERALD, JJ.

OPINION

Justice SAYLOR

This case involves the issue of whether the Commonwealth Court abused its discretion in awarding attorneys' fees to Highmark, Inc. ("Highmark") on the ground that Appellants, who are subscribers and policyholders of Highmark, engaged in "vexatious" conduct by commencing several actions seeking to challenge Highmark's rates and reserves.

On August 3, 2002, the Pennsylvania Insurance Department (the "Department"), announced...

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