Economy Bank v. Hickory Corral Enterprises, Inc.

55 Pa. D. & C.2d 370
CourtPennsylvania Court of Common Pleas, Beaver County
DecidedApril 6, 1972
Docketno. 279 of 1971
StatusPublished

This text of 55 Pa. D. & C.2d 370 (Economy Bank v. Hickory Corral Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Beaver County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Economy Bank v. Hickory Corral Enterprises, Inc., 55 Pa. D. & C.2d 370 (Pa. Super. Ct. 1972).

Opinion

KLEIN, J.,

In this action in assumpsit, plaintiff filed a complaint containing two causes of action. In the first count, defendants named are Hickory Corral Enterprises, Inc., Robert E. Cooper, Catherine J. Cooper, Frank Kocab, Elizabeth Kocab and Edward J. Kikla. In the second count, defendants named are Hickory Corral Enterprises, Inc., Robert E. Cooper, Catherine J. Cooper, Edward J. Kikla, Joseph Lanzaratta, Ronald G. Linaburg, Anthony P. Raso, Norma R. Raso, Patrick M. Capots, Ross Belcastro, Michelin R. Gasper, Emily A. Gasper, Louis S. Sepe, Maria J. Sepe, Joseph G. Heisler and Dolores A. Heisler.

Defendants Cooper, Kikla and Linaburg have never been served.

As to count 1, answers have been filed by defendants Frank Kocab and Elizabeth Kocab. No pleading has been filed by the other defendant named in said count, the corporate defendant.

As to the second count, a preliminary objection in the nature of a demurrer to the complaint has been filed on behalf of defendants, Joseph Lanzaratta, Anthony P. Raso, Norma R. Raso, Patrick M. Capots, Michelin R. Gasper, and Emily A. Gasper.1 On behalf of defendants, Louis S. Sepe and Maria J. Sepe, preliminary objections have been filed as follows: (a) in the nature of a petition raising a question of jurisdiction; (b) in the nature of a motion to strike off pleading because of lack of conformity to law or rule of court, [372]*372which includes what should have been separate preliminary objections in the nature of petitions raising the defenses of (1) nonjoinder of a necessary party, and (2) misjoinder of a cause of action; (c) in the nature of a petition for a more specific pleading; and (d) in the nature of a demurrer.

The first cause of action is based upon a promissory note allegedly executed on January 12, 1970, by all of defendants named in said count, a copy of the same being attached to the complaint as exhibit “A.”

The second cause of action is based upon a judgment note allegedly executed on June 10, 1970, by “Hickory Corral Enterprises” by Robert E. Cooper as president and Edward J. Kikla as secretary, exhibit “B” attached to the complaint, and a series of “guaranty and surety” agreements, copies of the same being attached to the complaints as exhibits “C” through “L,” inclusive, executed in May, 1970, by the respective individual defendants named in said count.

The complaint is silent as to when and who “delivered” the “agreements” to plaintiff, merely reciting that “The . . . agreements were filed with the plaintiff

A nonwaivable statute of frauds is applicable to a promise to answer for the debt of another (33 PS §3) and is demurrable: Pennsylvania Rule of Civil Procedure 1017(b) (4).

Six of said “agreements” have the name of the principal, the corporate defendant, inserted on the wrong line, being one line below the line where it should have been inserted. We regard such error as inconsequential as a reading of the instrument makes it clear that the name should have been typed on the line directly above and preceding the word “Debtor.”

However, all nine of said “agreements” are blank on the lines where the delineation of the indebtedness [373]*373of the principal debtor (the specific debt) is to be inserted. We regard that omission as fatal to the second cause of action averred as to the respective individual defendants and the preliminary objection in the nature of a demurrer must be sustained. Such omission is one which cannot be cured by amendment.

Plaintiff’s brief recites:

“But it could be argued that this is no longer a blank obligation. It is the same as though it was filled in and attached to the Complaint. The alligations [sic] of the Complaint must be read into the instrument now as though they had been copied thereinto.”

However, plaintiff cites no authority for such a sweeping proposition as to this type of written instrument and we do not understand it to be the law of any jurisdiction.

Plaintiff explains the failure to fill in the blanks as “conservative banking practice” while intimating that it had authority from the executing parties to fill them. In instruments involving three parties such as in a surety agreement, there is always a question as to who was granted authority to fill in blanks, the principal, the creditor, both or neither, and in all cases a question as to what was authorized for the blank spaces.

On the matter of filling blanks, plaintiff’s counsel submitted an excellent brief. However, the same deals with issues in a law suit which has yet to be filed. Although commercial paper is not involved, it is interesting to note what the Uniform Commercial Code provides on this point.2

[374]*374General contract law applies to surety agreements: Restatement of the Law, Security, §88. The Restatement of the Law, Contracts, §442 provides:

“(1) Where a written contract, or a writing apparently intended to be a written contract when completed, contains blank spaces, and words authorized by one party thereto are inserted by the other in the spaces, the writing as altered is operative.
“(2) In the absence of circumstances showing a contrary intention, authority is implied to fill spaces with words that are apparently appropriate.
“(3) A material, fraudulent, and unauthorized insertion in a blank space made by one party discharges any duty of the other party under the writing.” (Italics supplied.)

Further, it is clear that the law of Pennsylvania provides that:

“An uncompensated surety has a right to stand on the letter of his contract; if, without his knowledge or consent, any material alteration or change is made in the contract entered into by him, or in the contract or obligation as to which the performance thereof is secured, the surety is discharged”: 35 P. L. E. Surety-ship §88.

And it is hornbook law that filling in of blanks when and as authorized is not a material alteration. On the other hand, the filling in of blanks when there is no authority to do so or in a manner that varies from the authority granted, is a material alteration.

If plaintiff believes that it may make any change in the agreement and that the same would be with the [375]*375authority or consent of the respective sureties, it must proceed to do so if it is to enable itself to plead a litigable cause of action, discernible from within the four corners of the complaint.

In regard to the other preliminary objections raised by defendants Sepe, the following conclusions are reached.

1. The objection in the nature of a petition raising a question of jurisdiction is without merit. There is no question but that this court has jurisdiction over the subject matter. Venue exists, inter alia, in any county in which the cause of action arose or where a transaction or occurrence took place out of which the cause of action arose (Pa. R. C. P. § 1006(a)), and a right to deputized service in another county is available: Pa. R. C. P. 1009(c). Although plaintiff failed to aver the domicile of any of the parties, it is clear from the complaint, including its exhibits, that an occurrence took place at “Ambridge, Pa.” The court may take judicial notice that “Ambridge, Pa.” is in Beaver county: Henry, Pa. Evidence §506; Emert v.

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Related

Emert v. Larami Corp.
200 A.2d 901 (Supreme Court of Pennsylvania, 1964)

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Bluebook (online)
55 Pa. D. & C.2d 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/economy-bank-v-hickory-corral-enterprises-inc-pactcomplbeaver-1972.