Rellick-Smith, S., Aplt. v. Rellick, B.

CourtSupreme Court of Pennsylvania
DecidedOctober 20, 2021
Docket23 WAP 2020
StatusPublished

This text of Rellick-Smith, S., Aplt. v. Rellick, B. (Rellick-Smith, S., Aplt. v. Rellick, B.) 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
Rellick-Smith, S., Aplt. v. Rellick, B., (Pa. 2021).

Opinion

[J-25-2021] IN THE SUPREME COURT OF PENNSYLVANIA WESTERN DISTRICT

BAER, C.J., SAYLOR, TODD, DONOHUE, DOUGHERTY, WECHT, MUNDY, JJ.

SHARLEEN M. RELLICK-SMITH, : No. 23 WAP 2020 : Appellant : Appeal from the Order of the : Superior Court entered March 31, : 2020 at No. 919 WDA 2019, v. : affirming the Order of the Court of : Common Pleas of Indiana County : entered March 25, 2019 at No. 32- BETTY J. RELLICK AND KIMBERLY V. : 14-0490. VASIL, : : ARGUED: April 14, 2021 Appellees :

OPINION ANNOUNCING THE JUDGMENT OF THE COURT

JUSTICE TODD DECIDED: OCTOBER 20, 2021

In this appeal by allowance, we consider whether the Superior Court erred in

affirming an order of the trial court that permitted the appellees to file an amended answer

to include the affirmative defense of statute of limitations, which a different trial court judge

previously ruled was waived. As we conclude that the second trial judge’s order violated

the coordinate jurisdiction rule in this regard, we hold that the Superior Court erred in

affirming his order, and, accordingly, we reverse the Superior Court’s decision, vacate in

part the trial judge’s order, and remand the matter to the trial court for further proceedings

consistent with this opinion.

On August 6, 2006, Rose Rellick (hereinafter, “Decedent”),1 purchased two

Certificates of Deposit (“CDs”), listing as co-owners herself; her sister, Betty J. Rellick;

1 Decedent died on December 20, 2012. and the daughters of her deceased brother George − Kimberly Vasil and Sharleen M.

Rellick-Smith (hereinafter, “Appellant”). Prior to purchasing the CDs, Decedent executed

powers of attorney designating Betty and Kimberly (hereinafter, “Appellees”) as her

attorneys-in-fact. It purportedly was Decedent’s intention that, upon her death, the

proceeds of the CDs be divided equally among Appellant and Appellees. However, on

July 31, 2009, prior to Decedent’s death, Appellees removed Appellant’s name from the

CDs. In March 2013, subsequent to Decedent’s death, Appellees cashed the CDs, which

were worth approximately $370,000, and divided the money between the two of them.

On October 10, 2014, Appellant filed an action against Appellees, claiming they

breached their fiduciary duties to Decedent by removing Appellant’s name from the CDs

and refusing to pay her any of the proceeds. Appellees filed a timely response to the

complaint, but, relevant to the instant appeal, did not raise any affirmative defenses

therein. Four months later, on February 11, 2015, Appellees filed a “motion to dismiss,”

arguing that Appellant lacked standing and that her claim was barred by the statute of

limitations.2 The case was assigned to the Honorable Carol Hanna, who granted

Appellees’ motion on the basis that Appellant lacked standing. Notably, however, Judge

Hanna determined that Appellees waived the statute of limitations defense by failing to

raise it as a new matter in their answer, as required by Pa.R.C.P. 1030(a) (“[A]ll affirmative

defenses including . . . statute of limitations . . . shall be pleaded in a responsive pleading

under the heading ‘New Matter.’”).

Appellant appealed Judge Hanna’s order, and the Superior Court reversed and

remanded the case to the trial court, holding that Appellant, in fact, did have standing to

2 In their brief, Appellees recognize that the motion filed on their behalf was incorrectly

titled a “Motion to Dismiss,” and should have been designated as a “Motion for Judgment on the Pleadings.” See Appellees’ Brief at 3 n.2. We will utilize the proper designation of “motion for judgment on the pleadings” throughout this opinion.

[J-25-2021] - 2 pursue her claim. Rellick-Smith v. Rellick, 147 A.3d 897, 904 (Pa. Super. 2016). In its

opinion, the Superior Court observed that neither party challenged Judge Hanna’s finding

that Appellees waived the statute of limitations defense. Id. at 901 n.12 (“Neither party

addresses on appeal the statute of limitations issue raised in [Appellees’] Motion to

Dismiss.”).

On remand, the case initially was assigned to the Honorable William Martin, as

Judge Hanna had retired from the court on June 6, 2016. On May 16, 2017, Appellees

filed a motion for summary judgment wherein they made no mention of the statute of

limitations defense. Judge Martin denied the motion for summary judgment, finding there

were outstanding issues of material fact. Thereafter, the case was reassigned to the

Honorable Thomas M. Bianco, who presided over all remaining proceedings.

On July 30, 2018, Appellees filed a motion to amend their pleading to include

numerous affirmative defenses, including a statute of limitations defense. Acknowledging

Judge Hanna’s finding that Appellees waived the statute of limitations defense by failing

to raise it in their answer to Appellant’s complaint, Judge Bianco nevertheless granted

Appellees’ motion to amend based on the Superior Court’s decision in Horowitz v.

Universal Underwriters Insurance Co., 580 A.2d 395 (Pa. Super. 1990) (holding that trial

court should have allowed party to amend its answer to affirmatively plead statute of

limitations defense despite the fact that amendment was sought more than four years

after original answer was filed), which, in his view, supports the liberal amendment of

pleadings. Judge Bianco reasoned, inter alia, that Appellant would not be prejudiced if

Appellees were permitted to amend their pleading, as Appellees’ assertion of the statute

of limitations defense did not come as a surprise to Appellant, given that Appellees raised

it in their February 2015 motion for judgment on the pleadings before Judge Hanna.

[J-25-2021] - 3 Judge Bianco further determined that Appellant failed to establish that material evidence

was lost due to Appellees’ delay in raising the statute of limitations defense.

Following the grant of Appellees’ motion to amend, the case proceeded to a non-

jury trial, at which Appellant testified to the facts set forth above. Appellant stated that

she could not recall when she learned that Appellees removed her name from the CDs.

Appellant also presented the testimony of Ann Marcoaldi, Decedent’s secretary and tax

preparer. Marcoaldi testified that Decedent purchased the CDs for estate planning

purposes, and that Decedent intended that the proceeds of the CDs be divided equally

between Appellant and Appellees following her death. Marcoaldi stated that she and

Appellant learned in September 2009 that Appellees removed Appellant’s name from the

CDs, and that they began to “investigate the removal around that time.” Rellick-Smith v.

Rellick, No. 919 WDA 2019, at 3 (Pa. Super. filed March 31, 2020). Ultimately, Judge

Bianco determined that Appellant learned that Appellees removed her name from the

CDs in September 2009, at which point the two-year statute of limitations began to run.

As a result, he concluded that Appellant’s action, filed on October 10, 2014, was barred

by the statute of limitations, and he declined to address the underlying merits of her claim.

Appellant appealed Judge Bianco’s order to the Superior Court, arguing, inter alia,

that he erred in granting Appellees’ motion to amend their pleading to include a statute of

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Horowitz v. Universal Underwriters Insurance
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Ryan v. Berman
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Rellick-Smith, S. v. Rellick, B.
147 A.3d 897 (Superior Court of Pennsylvania, 2016)

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