Erie Indemnity Co. v. Greene

14 Pa. D. & C.2d 301, 1957 Pa. Dist. & Cnty. Dec. LEXIS 448
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedAugust 5, 1957
Docketno. 54
StatusPublished
Cited by1 cases

This text of 14 Pa. D. & C.2d 301 (Erie Indemnity Co. v. Greene) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Erie Indemnity Co. v. Greene, 14 Pa. D. & C.2d 301, 1957 Pa. Dist. & Cnty. Dec. LEXIS 448 (Pa. Super. Ct. 1957).

Opinion

Royal, J.,

This case comes before us on defendant’s answer raising questions of law, in effect a demurrer, (section 5, Act of May 22, 1935, P. L. 228, 12 PS §851), to plaintiff’s petition for a declaratory judgment under the provisions of the Uniform Declaratory Judgments Act of June 18, 1923, P. L. 840, 12 PS §831, et seq., and its amendments and supplements.

The petition for the declaratory judgment filed by the Erie Indemnity Company, as attorney-in-fact for subscribers of Erie Insurance Exchange, recites an automobile accident near Steelton in this county on August 19, 1956, in which an Oldsmobile Sedan titled in the joint names of Gordon Josselyn and Charlotte E. Josselyn, his wife, and insured by plaintiff, was involved.

The accident resulted in the death of the said Gordon Josselyn, who was operating the car, and in alleged personal injuries to his minor son, Gordon Josselyn, Jr., a passenger.

The petition further recites renunciation by the deceased’s widow of her right to administer in her husband’s estate, and the appointment on October 13, 1956, of one Richard Greene, of Elizabeth, N. J., as administrator, and the subsequent institution of a suit on November 13, 1956, in the United States District Court for the Middle District of Pennsylvania by the said decedent’s widow, Charlotte E. Josselyn, in her own right and as guardian of the couple’s minor son, against the aforementioned Greene, as administrator, being an action for damages for injuries allegedly sustained by the minor.

It is then alleged that counsel for Greene made demand on plaintiff-petitioner in these' proceedings for defense in the Federal court süit and indemnification from liability pursuant to. terms of the aforementioned policy of insurance, and that at a conference [303]*303on March 9, 1957, attended by Greene and his counsel and by counsel representing plaintiff-petitioner, defendant stated he had no knowledge of the facts and circumstances giving rise to the civil suit filed in the United States District Court and on advice of counsel declined to answer questions relating to his appointment as administrator and refused to sign a non-waiver agreement submitted to him by plaintiff’s counsel.

The petition further avers that two days following this conference counsel for defendant informed plaintiff’s counsel that Greene was a brother-in-law of an attorney associated with the law firm representing plaintiff in the Federal court litigation, and that Greene had been secured to act as administrator solely at the request of one Franklin Brown, an associate of the aforementioned law firm.

A violation of section 16 of the aforesaid insurance policy, “Assistance and Cooperation of the Insured”, is also alleged, together with collusive conduct on the part of defendant herein with an adverse party.

It is contended plaintiff herein has a valid legal reason for refusing defense to defendant and indemnification as demanded, but adds that refusal of the request for defense and resultant obligation by Greene to pay counsel fees in defending the United States District Court suit and rendition therein of a judgment against Greene would result in a civil suit against the insurance company, plaintiff herein, for payment and indemnification.

The petition further alleges the existence of an actual controversy and imminent and inevitable litigation and declares there is no other method than by this declaratory judgment proceeding to determine in advance of such litigation the duties and obligations of the insurance company to Greene, administrator-defendant in the civil suit and defendant herein, and [304]*304that a declaratory judgment by this court will terminate the uncertainty and avoid any future litigation, said declaratory judgment to determine whether plaintiff insurance company in these proceedings has any duty to indemnify defendant against any liability arising by reason of the civil action in the United States District Court.

Section 6 of the Uniform Declaratory Judgments Act, 12 PS §836, reads as follows:

“Relief by declaratory judgment or decree may be granted in all civil cases where an actual controversy exists between contending parties, or where the court is satisfied that antagonistic claims are present between the parties involved which indicate imminent and inevitable litigation, or where in any such case the court is satisfied that a party asserts a legal relation, status, right, or privilege in which he has a concrete interest and that there is a challenge or denial of such asserted relation, status, right, or privilege by an adversary party who also has or asserts a concrete interest therein, and the court is satisfied also that a declaratory judgment or decree will serve to terminate the uncertainty or controversy giving rise to the proceeding. Where, however, a statute provides a special form of remedy for a specific type of case, that statutory remedy must be followed; but the mere fact that an actual or threatened controversy is susceptible of relief through a general common law remedy, or an equitable remedy, or an extraordinary legal remedy, whether such remedy is recognized or regulated by statute or not, shall not debar a party from the privilege of obtaining a declaratory judgment or decree in any case where the other essentials to such relief are present; but proceeding by declaratory judgment shall not be permitted in any case where a divorce or annulment of marriage is sought.”

[305]*305Under the foregoing, it is apparent that the questions involved here are first whether “antagonistic claims are present between the parties involved which indicate imminent and inevitable litigation” and second whether “a declaratory judgment or decree will serve to terminate the uncertainty or controversy giving rise to the proceeding”.

As hereinbefore stated, this petition alleges “imminent and inevitable litigation” and also avers that a declaratory judgment or decree of this court in the Instant proceedings will “terminate the uncertainty” and avoid any future litigation between plaintiff and ■defendant herein.

In order to answer those questions and to determine whether or not a decree or judgment will actually terminate the alleged uncertainty and avoid any future litigation between the parties, it becomes necessary to determine what controversy presently exists between them and why.

Plaintiff’s petition clearly indicates that “controversy” relates solely to the question of alleged noncooperation on the part of defendant herein with respect to the pending civil suit in the Federal court, as said alleged noncooperation is detailed in plaintiff’s petition for the declaratory judgment.

With respect to “Assistance and Cooperation of the Insured”, section 16 of the policy of insurance involved reads as follows:

“The Insured shall cooperate with Exchange, disclosing all pertinent facts known or available to him, and upon Exchange’s request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in conduct of suits. The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or Incur any expense except for first-aid to persons and animals.”

[306]

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240 A.2d 477 (Superior Court of Pennsylvania, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
14 Pa. D. & C.2d 301, 1957 Pa. Dist. & Cnty. Dec. LEXIS 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erie-indemnity-co-v-greene-pactcompldauphi-1957.