Jones v. Sparky's Motorcycle Sales & Service, Inc.

32 Pa. D. & C.3d 30, 1983 Pa. Dist. & Cnty. Dec. LEXIS 113
CourtPennsylvania Court of Common Pleas, Northampton County
DecidedMarch 16, 1983
Docketno. 1982-C-6644
StatusPublished

This text of 32 Pa. D. & C.3d 30 (Jones v. Sparky's Motorcycle Sales & Service, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Northampton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Sparky's Motorcycle Sales & Service, Inc., 32 Pa. D. & C.3d 30, 1983 Pa. Dist. & Cnty. Dec. LEXIS 113 (Pa. Super. Ct. 1983).

Opinion

FREEDBERG, J.,

This matter is before the court for disposition of various preliminary objections filed by defendants Eck, Kellow & Company, Inc. and Frederick C. Barr, Ann Marie Barr, and Barr’s Place to the complaint in trespass. The complaint contains allegations that plaintiff Helene Jones, a pedestrian, was struck by a motorcycle operated by one Douglas Albert Fenical, and that she sustained various injuries. It is averred that plaintiffs Helene Jones and her husband, “were unable to assert a claim against the operator of the motorcycle, Douglas Albert Fenical, in that there was no insurance available for such claims.” Plaintiffs then asserted claims: against Sparky’s Motorcycle Sales and Service, Inc. on the theory that it breached a statutory duty imposed upon inspection stations to determine that Fenical had motor vehicle insurance, against the Barrs on the theory that they served a visibly intoxicated Fenical at their tavern, against Public Service Mutual Insurance Company on the theory that it misled or erroneously informed Fenical that he was covered by a motor vehicle insurance policy by failing to notify the Department of Transportation that Fenical’s policy had been terminated prior to the accident, and against defendant Eck, Kellow & Company, Inc. on the theory that it had either misled or failed to communicate to Fenical the fact that the liability policy which it sold to Fenical lapsed after six months coverage rather than one year’s coverage. Interestingly, plaintiffs asserted no cause of action against Fenical who was joined as an additional defendant by the original defendants Frederick C. Barr, Ann Marie Barr, and Barr’s Place on the theory that Fenical’s negligence in operating his motorcycle caused the injuries.

[32]*32PRELIMINARY OBJECTIONS OF ECK, KELLOW & COMPANY

Defendant Eck, Kellow & Company has filed preliminary objections in the nature of a demurrer alleging that it owed no duty to plaintiff and therefore is not liable for injuries which she sustained by virtue of the negligence of the uninsured Fenical. The applicable standards for ruling upon a demurrer were set forth in Sinn v. Burd, 486 Pa. 146, 404 A.2d 672 (1979), as follows:

“It is axiomatic in the law of pleading that preliminary objections in the nature of a demurrer admit as true all well and clearly pleaded material, factual averments and all inferences fairly deducible therefrom. Yania v. Bigan, 397 Pa. 316, 155 A.2d 343 (Pa. 1959); Byers v. Ward, 361 Pa. 416, 84 A.2d 307 (1951). Conclusions of law and unjustified inferences are not admitted by the pleading. Lerman v. Rudolph, 413 Pa. 555, 198 A.2d 532 (1964). Starting from this point of reference, the complaint must be examined to determine whether it sets forth a cause of action which, if proved, would entitle the party to the relief sought. If such is the case, the demurrer may not be sustained. On the other hand, where the complaint fails to set forth a cause of action, a preliminary objection in the nature of a demurrer is properly sustained. ...”

The issue presented by the preliminary objections is whether an insurance agent is liable to a third party injured by the negligence of an individual who contracted with the agent for liability coverage but did not receive such coverage because of the negligence of the agent. Eck, Kellow & Company contends that it owes no duty to the injured third party and, thus, may not be held liable in a suit brought directly by the third party. Plaintiff, on the other [33]*33hand, relying on Lyngarkos v. Commonwealth of Pennsylvania, Department of Transportation, 57 Pa. Commw. 121, 426 A.2d 1195 (1981), argues that there is such a duty. Our analysis leads us to conclude that the demurrer must be sustained.

In Lyngarkos, the Commonwealth Court held that a guest passenger who was injured while traveling in a vehicle not covered by no-fault insurance coverage1 has a cause of action against a car dealer which issued temporary registration card and plates for the vehicle without first obtaining proof of no-fault insurance coverage. The court relied upon a section of the Vehicle Code, Act of June 17, 1976, P.L. 162, as amended, 75 Pa. C.S. § 1305(a) which requires that an application for registration of a motor vehicle be accompanied by proof of insurance, and regulations of the Department of Transportation requiring that auto dealers who act as agents of the department to issue temporary registration cards and plates inspect all documents necessary for the proper registration of a motor vehicle. The court noted:

“There is thus created a statutory duty on the part of the dealer to ascertain that the applicant for temporary registration cards and plates has the required No-fault insurance. This duty is meant to protect all motorists by insuring that they will have recourse to the comprehensive, expeditious and equitable No-fault insurance coverage required of all motorists.” 426 A.2d at 1198. Based thereon the court permitted Lyngarkos’ action against the dealer for the equivalent of the no-fault benefits that he would have been entitled to had the dealer performed his duty.

[34]*34We believe that the Lyngarkos decision is inapposite to the instant situation for Lyngarkos is premised upon the existence of a statutorily created duty. There is no equivalent statutory duty to protect third parties imposed upon independent agents such as Eck, Kellow & Company. The focus then becomes whether there is some other basis for imposing such a duty upon the insurance agent. We find none.

Plaintiffs’ contention appears to be that an injured person is a third party beneficiary of an agreement between the tort-feasor and an insurance agent to obtain insurance coverage. This contention has no support in applicable precedent. As noted in 44 Am Jur 2d, Insurance, Section 1445, the general rule is that there is no privity between an injured person and the tort-feasor’s liability insurer and the injured person has no right of action at law against the insurer.

To bestow the status of third party beneficiary entitled to recover on a contract, both parties to the contract must so intend and must indicate that intention in the contract.2 Silverman v. Food Fair Stores, Inc., 407 Pa. 507, 180 A.2d 894 (1962); Burke v. North Huntingdon Township, 390 Pa. 588, 136 A.2d 310 (1957). “The question whether a contract was intended for the benefit of a third person is one of construction. The intention of the parties in this respect is determined by the terms of the contract as a whole, construed in the light of circumstances under which it was made.” 12 Am Jur, Contracts, Section 20, page 832 Section 280, cited in [35]*35Mowrer v. Poirier & McClain Corporation, 382 Pa. 2, 114 A.2d 88 (1955).

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Related

Yania v. Bigan
155 A.2d 343 (Supreme Court of Pennsylvania, 1959)
Silverman v. Food Fair Stores, Inc.
180 A.2d 894 (Supreme Court of Pennsylvania, 1962)
Byers v. Ward
84 A.2d 307 (Supreme Court of Pennsylvania, 1951)
LERAMAN v. Rudolph
198 A.2d 532 (Supreme Court of Pennsylvania, 1964)
Burke v. North Huntingdon Township
136 A.2d 310 (Supreme Court of Pennsylvania, 1957)
Sinn v. Burd
404 A.2d 672 (Supreme Court of Pennsylvania, 1979)
Pennsylvania Liquor Control Board v. Rapistan, Inc.
371 A.2d 178 (Supreme Court of Pennsylvania, 1976)
Mowrer v. Poirier & McLane Corp.
114 A.2d 88 (Supreme Court of Pennsylvania, 1955)
Folmar v. Shaffer
332 A.2d 821 (Superior Court of Pennsylvania, 1974)
Lyngarkos v. Commonwealth
426 A.2d 1195 (Commonwealth Court of Pennsylvania, 1981)

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Bluebook (online)
32 Pa. D. & C.3d 30, 1983 Pa. Dist. & Cnty. Dec. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-sparkys-motorcycle-sales-service-inc-pactcomplnortha-1983.