Webb v. Department of Transportation, Bureau of Motor Vehicles

In Webb v. Department of Transportation, Bureau of Motor Vehicles, 870 A.2d 968 (Pa. Cmwlth. 2005), the Court held that the petitioner's lack of notice in the cancellation of his auto insurance policy, which led to a suspension of his vehicle registration, required, in the interest of equity and justice, the opportunity for the petitioner to properly challenge the cancellation despite the passing of the date for a timely appeal. Id. at 975. In Webb, the petitioner first received notice of the cancellation of his auto insurance policy in a letter from the Department, which indicated that his vehicle registration was being suspended for lack of insurance. Id. at 971. The letter from the Department indicated that the petitioner could appeal his registration suspension within thirty days to the Court of Common Pleas in the county of petitioner's residence. Id. at 970. At the hearing, the petitioner, acting pro se, argued that he had always paid his full premium for auto insurance at the beginning of the policy term. Id. He contacted his insurance company because he had received a refund check from the insurance company one day prior to receiving the Department's letter. Id. at 970-71. He was surprised to learn that the insurance company cancelled his insurance a few months prior because his insurance agent had failed to raise his rates in conjunction with a speeding ticket that the petitioner had received, and thus, the petitioner had not "properly" paid his full premium, leading to cancellation. Id. at 971. The petitioner testified that he never received any notice of the cancellation or increase in rate. Id. After learning of the cancellation, the petitioner promptly secured valid insurance. Id. Before the trial court, the Department in Webb argued that the petitioner could only contest the suspension of his registration, not the underlying cancellation of his insurance policy. Id. The Department argued that challenges to the cancellation of his insurance policy had to be timely appealed to the Insurance Commissioner. Id. The trial court concluded that the petitioner had proven by clear and convincing evidence that he had been insured at all times. Id. The trial court reasoned that the underlying cancellation of his insurance was illegal because Section 2006 of the Insurance Company Law of 1921 required the insurance company to inform Petitioner of the cancelation. Id. Thus, the cancellation was void, rendering DOT's registration suspension likewise void. Id. The trial court further noted that, due to the lack of notice of cancellation, the petitioner never had an opportunity to appeal to the Insurance Commissioner. Id. On appeal the Court concluded that nothing in the pertinent laws "prevents a trial court from transferring an improvidently filed underlying challenge to an insurer's policy cancellation to the Insurance Commissioner, or from staying a registration suspension appeal pending the resolution of a properly pursued policy cancellation before the Insurance Commissioner if the merits of a case demand such review." Id. at 974.