Catalfano v. Higgins

182 A.2d 637, 54 Del. 548, 4 Storey 548, 1962 Del. Super. LEXIS 87
CourtSuperior Court of Delaware
DecidedMay 4, 1962
Docket1465
StatusPublished
Cited by3 cases

This text of 182 A.2d 637 (Catalfano v. Higgins) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catalfano v. Higgins, 182 A.2d 637, 54 Del. 548, 4 Storey 548, 1962 Del. Super. LEXIS 87 (Del. Ct. App. 1962).

Opinion

Lynch, J.:

Plaintiff’s Chevrolet Sedan was stolen on July 20, 1959, while it was in the possession of the defendants, who conduct a “Valet Parking Lot” at the Delaware Park Race Track, Stanton, Delaware. Plaintiff had fire and theft insurance and his insurance carrier paid him his loss, in the amount as claimed.

In the settlement papers it was provided that upon payment of the claim to plaintiff, he, as

“* * * the undersigned hereby assigns and transfers to the said company each and all claims and demands against any other party, person, persons, property or corporation, arising from or connected with such loss and damage and the said Company is hereby subrogated in the place of and to the extent of the amount above named, and the said Company is hereby authorized and empowered to sue, compromise or settle in my name or otherwise to the extent of the money paid as aforesaid.”

The sum of $1,940.00 was paid by the carrier to the plaintiff and the settlement papers recited that this amount was the “agreed sound value of the car”.

*550 At the trial plaintiff proved the bailment of his car with the defendants and then showed that as of the date the car was stolen it had a market value of about $2,000.00.

At the conclusion of the plaintiff’s case defendants moved to dismiss because it appeared from the testimony that plaintiff was not the real party in interest, as required by Rule 17, Rules of the Superior Court, Del. C. Ann. That Rule, so far as is pertinent, provides:

“(a) Real Party in Interest. Every action shall be prosecuted in the name of the real party in interest; * *

Judge Stiftel, in the case of Cohee v. Ritchey, 1 Storey 597, 599-600, 150 A. 2d 830, 831, said — “* * * This Rule has the force and effect of a legislative enactment. Associated Transport v. Pusey, 10 Terry 413, 118 A. 2d 362, 365. The promulgation of the Rule was tantamount to the legislature itself passing a statute covering the subject. See 10 Del. Code Ann. Sec. 561.”

In Cammile, Sr. v. Sanderson, 9 Terry 225, 101 A. 2d 316 (Super. Ct. 1954) Judge Carey held, 9 Terry at 229, 101 A. 2d at 318, that under this Rule “the real party in interest is the one who, by the substantive law, has the right sought to be enforced.” At a later point in the same paragraph of his opinion, Judge Carey took occasion to point out that in an action involving damages to personal property, “this right is in the true owner of that property”.

When the plaintiff was testifying, he stated that the police called him when his car was recovered by the police. On cross-examination he testified:

“Q You said that the police called you because they thought that you were the owner of the car?

“A That is right, sir.

“Q Were you, in fact, the owner of the car?

*551 “A No, I wasn’t.

“Me. Geeenstein: I object

“Me. Beady: Your Honor, this is preliminary.

“Q time? Were you, in fact, the owner of the car at that

“A At the time they found it, no.

“Q When did you transfer ownership of that car?

“A Upon settlement with the adjuster.

“Q You conveyed title to them?

“A Yes, sir.

“Q In return for what?

“A I was compensated for the car.

“Q How much?

“A I don’t know the exact amount. It was 1900 and some dollars.

“Q Was it $1,940?

“A Something like that. It was close to $2,000.

“Q And that was the claim for damages which made against them? you

“A That is right.”

Furthermore, it was brought out in testimony that the plaintiff had executed and delivered the title to the automobile at the time of settlement and it was held by the insurance company.

Rule 17(a) is, in substance, the same as Rule 17(a), Federal Rules of Civil Procedure, 28 U.S.C.A. In their consideration of this Rule, in their work on Federal Practice and *552 Procedure, Barron and Holtzoff, in Volume 2, § 482, state at page 19:

“Cases involving subrogation constitute another field in which the real party in interest provision is applied, giving the subrogee a right to sue in his own name. Thus an insurer who has paid the entire loss to the insured is the real party in interest entitled to sue a third person who is liable for the loss and must bring the action in its own name. An insured who has no interest in the recovery cannot sue. * * (Emphasis supplied)

See also Volume 3, Moore’s Federal Practice, ¶¶17.02, 17.08 and 17.09; Couch, Cyclopedia of Insurance Law, Vol. 8, § 2049 where at page 6706 it is stated:

“* * * it has been held, under a statute requiring an action to be brought in the name of the real party in interest, that the insurer, and not the insured, is the real party in interest in an action against the wrongdoer for the destruction of the insured property, at least where the insured has settled * * * by accepting a sum amounting to its damage * *

A like statement is to be found in an annotation appearing in 157 A. L. R. at page 1247. The Supreme Court of Kansas held in Ellis Canning Co. v. International Harvester Co., 174 Kan. 357, 255 P. 2d 658, 659, (1953), under a real party in interest statute:

“* * * an insured who has been fully paid for his loss is not the real party in interest, within the meaning of that term as used [in this statute] and hence cannot maintain an action to recover the amount of such loss in his own name for the use and benefit of the insurer. Conversely stated, the rule now recognized and applied is, that under the confronting conditions and circumstances the right of action against the alleged wrongdoer vests wholly in the insurer who, * * *, may, and indeed must, bring the action as the real and only party in interest if one is to be maintained.”

*553 In light of the facts brought out in the course of plaintiff’s case and the aforecited authorities, I have no alternative but to grant defendants’ motion to dismiss.

For what it may be worth, I make the observation that when my attention was first called to the fact that plaintiff had been reimbursed for his loss and the case was before the Court on a subrogation asserted by an insurance company,— this in the course of the pre-trial stage of this case — I made inquiry of plaintiff’s attorney as to what his position was on this specific point.

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Cite This Page — Counsel Stack

Bluebook (online)
182 A.2d 637, 54 Del. 548, 4 Storey 548, 1962 Del. Super. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catalfano-v-higgins-delsuperct-1962.