Philadelphia Manufacturers Mutual Fire Insurance v. Rose

70 A.2d 316, 364 Pa. 15, 1950 Pa. LEXIS 312
CourtSupreme Court of Pennsylvania
DecidedJanuary 3, 1950
DocketAppeal, No. 190
StatusPublished
Cited by30 cases

This text of 70 A.2d 316 (Philadelphia Manufacturers Mutual Fire Insurance v. Rose) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Manufacturers Mutual Fire Insurance v. Rose, 70 A.2d 316, 364 Pa. 15, 1950 Pa. LEXIS 312 (Pa. 1950).

Opinion

Opinion by

Mr. Justice Linn,

This proceeding was brought under the Uniform Declaratory Judgments Act1 to ascertain the coverage or non-coverage of a fire insurance policy. The appellant-plaintiff, beginning in 1943, annually issued to defendant its policy insuring certain buildings, identified as numbers 18, 19 and 20, on defendant’s land devoted to industrial uses. The policy specified the amount of insurance on building number 20 as $100,000. In August, 1946, a fire damaged part of a building on this land; defendant contended that the building damaged was part of number 20 and claimed a loss of $66,627.45. Plaintiff rejected the claim, contending that the damaged property was not part of building number 20 but was part of buildings numbered 21 and 22.

Those rival contentions resulted in plaintiff’s petition asking the court to declare “the rights, status, and other legal relations between [plaintiff] and [defendant], for a decree that [defendant] carried no insurance with your petitioner . . . covering Buildings Nos. 21 and 22, more fully in this petition referred to.” The defendant, after filing and withdrawing preliminary objections to the petition, answered on the merits, concluding his answer as follows: “Wherefore, the defendant prays . . . for a declaratory judgment under the Uniform Declaratory Judgment Act to the effect that . . . [plaintiff] ... by its policy of insurance in effect at the time the building [number 20] hereinbefore described was destroyed by fire, did insure and protect said building by its policy of insurance which was in full [18]*18force and effect at the time thereof.” Defendant stated, in paragraph 4 of his answer, that “defendant joins in the petitioner’s request to have this Honorable Court determine the rights under the policy of fire insurance attached to the petition as Exhibit ‘A’. It is admitted that this policy was an annual policy effective March 1, 1946. Defendant further admits and joins in the averment in the plaintiff’s petition that ‘The policy being in writing, its construction is for your Honorable Court, as a matter of law’. In fact it is the defendant’s position that this — a question of law — is the only issue before tiiis Court because the policy by its terms clearly covered and protected the building which was destroyed by fire. . . .”

We recognize, of course, that jurisdiction cannot be conferred by the mere agreement of parties: Valley Railroad Co. v. Delaware, Lackawanna & Western R. Co., 346 Pa. 579, 582-3, 31 A. 2d 276 (1943) ; but we refer to the 4th paragraph and to defendant’s prayer in his answer as showing defendant’s agreement with plaintiff that, to the extent that actual controversy between contending parties is essential, such controversy, within the meaning of the statute, exists.

The case went to trial. The judge who heard the evidence filed what he called an “adjudication,” with “findings of fact” and “conclusions of law,” and ending with a “decree nisi,”2 sustaining plaintiff’s position, declaring that “. . . it is ordered, adjudged and decreed as follows: 1. That Building No. 20 was that part extending from Bleigh Street Northwardly 425 feet by a [19]*19width of 122 feet to a corrugated iron Avail. 2. That defendant’s policy of insurance with the Philadelphia Manufacturers Mutual Fire Insurance Company for the period from March 1, 1946, to March 1, 1947, and in force on August 8, 1946, did not cover the buildings or parts thereof damaged or destroyed by fire on August 8, 1946. 3. That the costs of each party to this proceeding be borne by plaintiff and defendant respectively. The Prothonotary aauII enter a decree nisi in the terms above set forth, and Avill notify counsel thereof, and of the filing of these findings and conclusions; and further, that if exceptions are not filed thereto within ten days from the receipt of said notice, a decree absolute in the sense of the decree nisi Avill be entered.”

Defendant then filed 31 exceptions to the “findings of fact, conclusions of law, rulings on evidence, disposition of requests for findings of fact and for conclusions of law, and the decree nisi.”

The exceptions came on for hearing before the court in banc, Avhich dismissed the proceeding without discussing the exceptions seriatim. This conclusion, as we understand the opinion of the court, was reached by reference to discretion,3 exercisable in granting relief by declaratory judgment, and by reference to the proposition that a declaratory judgment proceeding “is not an optional substitute for established and available remedies.” 4 In general, they thought that “Under the [20]*20circumstances, it is clear that the parties have an adequate remedy in the action of assumpsit for the final adjudication of their rights.”

The court in banc must have reached its conclusion without giving adequate effect to the amendment of May 26, 1943, P. L. 645, 12 PS 836, which, for the future, required essential modification of what this court had said, in cases arising before the amendment became effective. No one familiar with the history5 of the amendment should be in any doubt of the meaning intended and stated by the legislature. The amendment provides, “Section 6. Discretionary. — -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 sucb 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 [21]*21remedy, or an extraordinary legal remedy, whether snch 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: . . .”

The parties to this case brought themselves directly within the terms of the amendment: they agree (and the evidence shows the fact) that “an actual controversy exists.” The trial judge was “satisfied also that a declaratory judgment or decree will serve to terminate the uncertainty or controversy giving rise to the proceeding.”

We do not at this time discuss the findings of fact and conclusions of law made by the trial judge; that is first the duty of the court in banc; we now refer to the suggested decree because the court in banc, without discussing the exceptions, dismissed the proceeding on a misapprehension of the meaning of the amendment of 1943, to which, by the way, we find no reference in the court’s opinion.

The record shows, within the terms of the amendment, (1) both parties praying for relief in-their “actual controversy” and (2) the trial judge “satisfied” within the statute.

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Bluebook (online)
70 A.2d 316, 364 Pa. 15, 1950 Pa. LEXIS 312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-manufacturers-mutual-fire-insurance-v-rose-pa-1950.