The Pennsylvania Superior Court recently ruled in a child support case that settlement proceeds from a wrongful death lawsuit do not count as income for child support calculations. This decision affects Jennifer Zeppieri, who had been ordered to pay child support to Jeffrey Birkmire for their minor child, H.B. The ruling clarifies how such proceeds are treated in support cases, which is important for parents navigating similar financial obligations.
The case, Birkmire, J. v. Zeppieri, No. 802 WDA 2025, centers on a tragic event where Zeppieri's oldest child, A.H., was killed in an accident. Following this, she filed a wrongful death and survival action against the driver responsible for the accident and the school bus company. The lawsuit resulted in a settlement of $1,690,000, from which Zeppieri received $1,001,508.47 after legal fees and other expenses. The court's decision has significant implications for how settlement funds are viewed in relation to child support obligations.
In the original trial court ruling, Zeppieri was required to pay $2,305.15 per month in child support based on the assumption that the settlement proceeds constituted income. The court calculated her income by annualizing the settlement amount over four years, which they deemed appropriate given that H.B. would soon turn eighteen. However, Zeppieri contested this ruling, arguing that the settlement funds should not be classified as income since they were derived from her daughter's estate.
The Superior Court, led by Judge Stabile, examined the nature of the settlement proceeds and the underlying legal principles. The court highlighted that the funds were received as part of a survival action, which is intended to compensate the deceased for damages incurred before death. The court referenced a previous case, Humphreys v. DeRoss, which established that inheritance should not be considered income for child support purposes.
In its ruling, the court stated, "The trial court did not acknowledge the import of the settlement order... In concluding that the Settlement Proceeds were income, the trial court erred by overriding the applicable law." This statement underscores the court's position that the funds received from the settlement should not have been included in the income calculation for child support.
The ruling has broader implications for parents in similar situations. It establishes that settlement proceeds from wrongful death actions, particularly those classified as survival actions, do not count as income when determining child support obligations. This decision can provide relief for parents who may face financial strain from support payments based on large settlements that are not intended for their personal income.
As a result of the ruling, the Superior Court vacated the previous support order and remanded the case for further proceedings consistent with its opinion. This means that the trial court will need to reevaluate Zeppieri's financial situation without considering the settlement proceeds as income.
Looking ahead, the ruling may influence how courts handle similar cases involving wrongful death settlements and child support. It reinforces the need for careful consideration of the nature of funds when determining financial obligations in support cases. For parents like Zeppieri, this ruling could lead to a more manageable child support arrangement moving forward.
While the case has been remanded for further proceedings, it is not clear if there will be an appeal. The court filing did not mention any plans for an appeal or any related cases pending that could influence this decision. The outcome of this case may set a precedent for future child support determinations involving settlement funds, making it a significant ruling in Pennsylvania family law.