Goldwater v. Lederer

34 Pa. D. & C. 179, 1938 Pa. Dist. & Cnty. Dec. LEXIS 224
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedNovember 28, 1938
Docketno. 2040
StatusPublished

This text of 34 Pa. D. & C. 179 (Goldwater v. Lederer) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldwater v. Lederer, 34 Pa. D. & C. 179, 1938 Pa. Dist. & Cnty. Dec. LEXIS 224 (Pa. Super. Ct. 1938).

Opinion

Lewis, J.,

This is a petition to show cause why petitioners, R. S. Lederer and I. H. Lederer, should not be permitted to intervene as equitable plaintiffs. Plaintiff sued as endorsee on twelve promissory notes made by defendant as an accommodation endorser for the Belfield Laundry Corporation. Defendant in his affidavit of defense admits liability on the notes, but avers that petitioners and not plaintiff are the owners of the notes. The case was tried before Judge Sloane and a verdict entered for defendant, but a new trial was granted for the reason (not of record) that, in view of defendant’s admission of liability on the notes, the defense of the ownership thereof was not available to him. Petitioners now ask leave to intervene to protect their rights. Defendant filed an answer to the petition admitting all of its averments. Plaintiff, in his answer, denies the averments in the petition as to the acquisition of the notes, but admits that R. S. Lederer, one of the petitioners, owns a one-half interest therein, because, as the answer avers, plaintiff and R. S. Lederer each contributed one half the money to buy the notes.

[181]*181The right of intervention is recognized in Pennsylvania by a number of miscellaneous statutes of limited application, none of which covers this case. The right is also recognized by Pennsylvania Equity Rule 25:

“By leave of court, any person or persons claiming an interest in a pending suit, may be permitted to assert his, her or their right by intervention at any stage of the proceedings; but this shall be in subordination to and in recognition of the propriety of such suit.”

So also by Equity Rules 18 and 57. That such equitable rights will be protected in an action at law is well established in Pennsylvania.

Examination of the authorities reveals that a distinction is made between “intervention of right” and “permissive intervention.” This distinction is also made under the Federal Rules of Civil Procedure (1938), Rule 24. The rule seems to be that at any time during the pendency of any action, any person not a party thereto may intervene as of right:

(а) When such intervention will cure in whole or in part an existing defect of nonjoinder of parties in such action: Stevenson v. Matthews, 9 Pa. 316; Grant Township Water Co. v. Pennypacker et al., 6 Dauph. 89. (This rule is strictly limited to those cases where the action is defective because of failure to have joined the intervener. It does not include the case where such joinder is proper but nonjoinder is not erroneous, as where a partner is not sued in a suit against members of the firm.)

(б) When a statute of this Commonwealth confers an unconditional right to intervene.

(c) When the representation of the applicant’s interest by existing parties is or may be inadequate and the applicant is or may be bound by a judgment in the action.

(d) When the applicant is so situated as to be adversely affected by the distribution or other disposition of property in the custody of the court or of an officer thereof.

[182]*182Clauses (c) and (d) are supported by Northampton Trust Co., Trustee, v. Northampton Traction Co. et al., 270 Pa. 199, Frey’s Estate, 237 Pa. 269, and Mevey’s Appeal, 4 Pa. 80.

Within the sound discretion of the court any person not a party to an action may be permitted to intervene therein if:

(a) A statute of this Commonwealth confers a conditional right to intervene.

(b) The determination of such action may affect any legal interest of such persons. (This has been the traditional ground for allowing intervention in equity: Valmont Developing Co. v. Rosser et al., 297 Pa. 140; Real Estate Land Title & Trust Co. v. West Chester Street Ry. et al., 299 Pa. 76; Sailor Planing Mill & Lumber Co. v. Moyer, 35 Pa. Superior Ct. 503. The interest which an applicant for intervention must possess is generally required to be an enforcible or legally recognized interest as distinct from an economic desire or interest in seeing one litigant or another prevail in the proceedings: Andrews v. New Bethlehem Window Glass Co., 268 Pa. 565; Appeal of Philadelphia & Reading Coal & Iron Co. (No. 2), 22 D. & C. 475; Farmers Mutual Ins. Co. v. New Holland Turnpike Co., 122 Pa. 37; Hassinger v. Hassinger et al., 20 Pa. C. C. 485. This interest should be an actual or substantial legal interest, and an application should generally be refused where the applicant has nothing of any legal consequence to bring into the litigation: Bingaman v. Poor Directors, 10 Berks 43; Maneval v. Jackson Twp., 141 Pa. 426.)

(c) The entry of a judgment in such action or the satisfaction of such judgment will impose any liability upon such person to indemnify in whole or in part the party against whom the judgment would be entered. (This type of intervention is not generally allowed in Pennsylvania under the present practice. While a surety under a duty to indemnify the defendant in the original [183]*183action is permitted to appear and answer for the defendant, upon the latter’s request the surety is not allowed to become a party proper to the action. Where the suit is brought against one tortfeasor, the other tortfeasor cannot defend the action against the defendant, although he is exposed to the danger that the defendant upon losing the action may seek to hold him for contribution. It has also been held that a person bound by a covenant of title cannot intervene to defend a holder of the land even though a judgment in favor of the adverse party will create a liability of the applicant upon his covenant: Linderman v. Berg, 12 Pa. 301. But compare this with the right of a landlord to be substituted for his tenant as defendant in an ejectment action brought against the tenant: Acts of March 21, 1772, 1 Sm. L. 370, sec. 9, and April 13, 1807, 4 Sm. L. 476, sec. 1, 12 PS §§1513, 1514.)

(d) Where such person could have joined as an original plaintiff in the action or been joined as an original or additional party by any party to the action or could have been required to interplead in the action. (Right of person who could have joined as an original party to intervene sustained: Karcher et ux. v. Downes, 31 D. & C. 386, giving a person who could have joined as a coplaintiff under the permissive joinder of plaintiffs Act of June 25, 1937, P. L. 2072, permission to intervene: Harrison et al. v. St. Mark’s Church, 14 W. N. C. 387, permitting a neighboring property owner to intervene in an equity suit to enjoin a nuisance; see also Schaeffer v. Herman, 237 Pa. 86. Right of adverse claimant who could have been interpleaded to intervene is impliedly or expressly recognized in Stern v. Jones et al., 7 Luz. L. R. Rep. 19, Beaver Trust Co., Guardian, v. Kertis, etc., 298 Pa. 322, and Northampton County National Bank v. Hay et al., 5 Pa. C. C. 232. See also Slaymaker v. Snyder County State Bank, 308 Pa. 271, Miron v. Percheck et al., 279 Pa. 456, and Tonkonogy v. Levin et al., 106 Pa. Superior Ct. 448. The right to intervene is expressly conferred [184]*184upon adverse claimants by local rules in six counties.

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Related

Slaymaker v. Snyder County State Bank
162 A. 217 (Supreme Court of Pennsylvania, 1932)
Real Estate Land Title & Trust Co. v. West Chester Street Ry.
149 A. 84 (Supreme Court of Pennsylvania, 1930)
Beaver Trust Co. v. Kertis
148 A. 471 (Supreme Court of Pennsylvania, 1929)
Valmont Developing Co. v. Rosser
146 A. 557 (Supreme Court of Pennsylvania, 1929)
Com. Appeal (White Twp. School Dist.)
157 A. 621 (Supreme Court of Pennsylvania, 1931)
City of Philadelphia v. Leverington Cemetery Co.
159 A. 75 (Superior Court of Pennsylvania, 1931)
Tonkonogy v. Levin
162 A. 315 (Superior Court of Pennsylvania, 1932)
Mevey's Appeal
4 Pa. 80 (Supreme Court of Pennsylvania, 1846)
Stevenson v. Matthews
9 Pa. 316 (Supreme Court of Pennsylvania, 1848)
Linderman v. Berg
12 Pa. 301 (Supreme Court of Pennsylvania, 1849)
Farmers Mut. Insurance v. New Holland Turnpike Co.
15 A. 563 (Supreme Court of Pennsylvania, 1888)
Maneval v. Jackson Tp.
21 A. 672 (Supreme Court of Pennsylvania, 1891)
Streuber's Appeal
78 A. 106 (Supreme Court of Pennsylvania, 1910)
Schaeffer v. Herman
85 A. 94 (Supreme Court of Pennsylvania, 1912)
Frey's Estate
85 A. 147 (Supreme Court of Pennsylvania, 1912)
Andrews v. New Bethlehem Window Glass Co.
112 A. 90 (Supreme Court of Pennsylvania, 1920)
Northampton Trust Co. v. Northampton Traction Co.
112 A. 871 (Supreme Court of Pennsylvania, 1921)
Miron v. Percheck
124 A. 127 (Supreme Court of Pennsylvania, 1924)
Sailor Planing Mill & Lumber Co. v. Moyer
35 Pa. Super. 503 (Superior Court of Pennsylvania, 1908)

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Bluebook (online)
34 Pa. D. & C. 179, 1938 Pa. Dist. & Cnty. Dec. LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldwater-v-lederer-pactcomplphilad-1938.