Correction appended
The Pennsylvania Superior Court ruled in favor of the All-American Rathskeller's insurance company last week, deciding the bar must pay the settlement reached with the family of a Penn State student who died outside the establishment in 2003.
Regis Insurance Co., the 108 S. Pugh St. bar's insurer, sued its client after the two disagreed on a clause in the contract that excludes coverage for acts of assault or battery. The bar's attorney, Robert C. Rayman, declined to comment.
Regis Insurance Co. attorney Miles Kirshner said Thursday he did not know the exact amount of the disputed settlement, but was pleased with the court's decision.
"It is what we think is the appropriate outcome," he said. "It's never a happy thing in cases when people die ... but we thought the Superior Court made the correct decision."
The situation stems from an Oct. 26, 2003, incident when Salvador Peter Serrano died outside the bar after being restrained by employees. Police said Serrano's friend Timothy Padalino was urinating outside the bar when Rathskeller employees and Serrano's friends began arguing. The altercation led employees Christopher and Joseph Rosengrant to hold Serrano down by placing a knee on his back while they waited for authorities to arrive, according to court documents.
When officers arrived on scene, Serrano was dead. The 21-year-old student had choked on his own vomit, according to court documents. The Rosengrant's were charged with involuntary manslaughter but the two were later acquitted, according to court documents.
This led Serrano's mother, Grace Jiminez, and his fiancée, Brooke Morgan, to file suit against the Rathskeller for wrongful death on Aug. 25, 2004.
The bar asked the insurance company to pay the settlement, which was reached outside of court. The company then sued the Rathskeller, saying it did not have to pay because of the assault exclusion in the contract.
After Centre County Judge Charles C. Brown Jr. ruled in the bar's favor in 2007, Regis Insurance Co. appealed to the state Superior Court and won.
The Superior Court reversed the decision last week, declaring the bar liable to pay the settlement with Serrano's family.
This article "Court rules against Rathskeller in settlement payout dispute" posted online on June 4, 2009 incorrectly identified an employee identified in the story. The correct name is Jason Rosengrant.
