Roycroft v. Nationwide Mutual Fire Insurance

20 Pa. D. & C.4th 224, 1993 Pa. Dist. & Cnty. Dec. LEXIS 118
CourtPennsylvania Court of Common Pleas, York County
DecidedSeptember 20, 1993
Docketno. 92-SU-05623-01
StatusPublished

This text of 20 Pa. D. & C.4th 224 (Roycroft v. Nationwide Mutual Fire Insurance) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roycroft v. Nationwide Mutual Fire Insurance, 20 Pa. D. & C.4th 224, 1993 Pa. Dist. & Cnty. Dec. LEXIS 118 (Pa. Super. Ct. 1993).

Opinion

HORN, J.,

This is the second of a series of complaints based on the same cause of action. Presently before the court are the defendant’s numerous preliminary objections to plaintiff’s amended complaint.

Fire damaged or destroyed plaintiff’s home and personal property on December 25, 1990. Plaintiff submitted a claim for benefits under her homeowner’s policy issued by defendant on September 14,1990. Plaintiff’s policy insured her real and personal property against loss or damage caused by fire. (Amended complaint, exhibit A.)

On August 6, 1991, defendant notified plaintiff that her claim had been denied. Defendant concluded, upon the basis of their investigation that the fire was the result of an intentional act by or at the direction of the insured.

Plaintiff’s first complaint was docketed to no. 91-SU-03675-01 and was filed on July 30, 1991; and subsequently amended on August 22, 1991. (First, amended complaint.) Plaintiff alleges in her first, amended complaint two counts: breach of contract and bad faith/tortious conduct.

Plaintiff with the aid of new counsel originally filed this, her second, action on December 17,1992. Plaintiff amended her second complaint on January 29, 1993. (Second, amended complaint.) The second, amended complaint contains six counts, labeled breach of contract; bad faith; bad faith; bad faith; breach of Arson Reporting Immunity Act; and breach of contract. On motion of the plaintiff, both cases were consolidated [226]*226for discovery and trial by the Honorable John C. Uhler on February 19, 1993.

Defendant filed preliminary objections to the second, amended complaint on February 22, 1993 in the nature of a demurrer, a motion to strike, or a motion for more specific pleading. Defendant’s first objection is a demurrer to the complaint. Defendant maintains that the policy limitation of actions clause bars plaintiff’s second, amended complaint. Plaintiff’s policy provides under conditions to coverage:

“No action can be brought unless there has been compliance with the policy provisions and the action is started within one year after the date of loss or damage. ” (Amended complaint, exhibit A, p.9.) (emphasis added)

Plaintiff argues that the commencement of the first action within a year of the fire satisfies the limitation period as to the second complaint and distinguishes cases cited by defendant wherein similar provisions barred the first and only complaint filed. Plaintiff reasons that notice of her original claim fulfills the purpose for a limitation of time and eliminates any prejudice or surprise issuing from an otherwise untimely complaint. In that regard, plaintiff states that the second complaint only clarifies issues raised in the original action. We believe this to be a greatly overworked statement.

The original action was sufficiently pled to permit the evidence stated in the rambling allegations of the second complaint.

The standard for a demurrer asks whether the allegations are sufficient to support a cause of action upon which relief may be granted. Satchell v. Insurance Placement Facility of Pennsylvania, 241 Pa. Super. 287, 361 A.2d 375 (1976). The demurrer should fail unless [227]*227it is abundantly clear that on the facts alleged plaintiff cannot recover under any theory of law. Eckell v. Wilson, 409 Pa. Super. 132, 597 A.2d 696 (1991).

A statute of limitations may not be asserted as the basis for a demurrer under Pa.R.C.P. Rule 1030, unless the opposing party does not object. Ranker v. Skyline Corp., 342 Pa. Super. 510, 513, 493 A.2d 706, 707 (1985). In which case the procedural objection is waived. Id.

Pennsylvania honors the right of parties to a contract to modify the applicable statute of limitations provided the period of time is reasonable. See Lyons v. Nationwide Insurance Co., 390 Pa. Super. 25, 567 A.2d 1100 (1989). Moreover, a one year limitation of action clause is required for all fire insurance contracts under the terms of the Insurance Company Law of 1921, 40 P.S. §362 et seq. Prejudice to the insurer is not a factor to consider in determining whether to apply the policy limitations clause. See Schreiberv. Pa. Lumberman’s Mutual Ins., 498 Pa. 21, 23, 444 A.2d 647, 649 (1982) (distinguishing Brakeman v. Potomac Insurance Co., 472 Pa. 66, 371 A.2d 193 (1977)).

Accordingly, we find that the limitation of suit provision applies. Implicit in plaintiff’s brief, however, is the assertion that the first complaint tolls the limitations period and that the second action relates back to the commencement of the first.

In considering this issue we have discovered a line of common pleas decisions which hold that “[w]here a plaintiff has another case, based upon the same facts, pending in the same court or another court, it tolls the statute of limitations and the statute does not begin to run until final adjudication of the pending case.” Vaughn v. Roulin, 54 Sch. L.R. 8 (1957); Caimaichelo v. Pinkston, 41 D.&C. 2d 111 (1966); Menefee v. Co[228]*228lumbia Broadcasting System, Inc., 54 D.&C. 2d 341 (1972). The rule derives from Sattler v. Opperman, 14 Pa. Super. 32 (1900). However, Sattler has not been cited by any higher authority for that principle.

In Sattler, the Superior Court held that the statute of limitations did not bar an action for conversion by plaintiff-lessee. Sattler, supra. The Superior Court concluded that the conversion of lessee’s property occurred after the ejectment action. The United States Bankruptcy Court of the Eastern District of Pennsylvania considered Sattler in relation to the rule. “We believe the court’s decision can be understood as holding that the statute of limitations was tolled by the ejectment action or that the cause of action did not arise until the termination of the ejectment suit.” In re Fidelity American Financial Corporation, 35 B.R. 310, 312 (Bankr. 1983). The Bankruptcy Court followed the latter interpretation and rejected die rule tolling the statute of limitations.

We agree that the authority for the rule is misplaced. However, to the extent plaintiff is not permitted to allege a new claim or theory of recovery, the rule in Vaughn, supra, is consistent with Pennsylvania’s procedures granting leave on a liberal basis to amend. Further, the rule does not offend the policy reasons for which a statute of limitations is imposed.

Plaintiff does not raise additional theories of recovery in her second complaint different from those issues raised in the first action. The only arguably new claim is Count V, breach of the Arson Reporting Immunity Act. The court finds however that defendant injected that issue into the first case in answer and new matter to the first complaint.

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Related

Eckell v. Wilson
597 A.2d 696 (Superior Court of Pennsylvania, 1991)
Lyons v. Nationwide Insurance
567 A.2d 1100 (Supreme Court of Pennsylvania, 1989)
Ranker v. Skyline Corp.
493 A.2d 706 (Supreme Court of Pennsylvania, 1985)
Satchell v. Insurance Placement Facility
361 A.2d 375 (Superior Court of Pennsylvania, 1976)
Brakeman v. Potomac Insurance Co.
371 A.2d 193 (Supreme Court of Pennsylvania, 1977)
Bertha v. Pennsylvania Lumberman's Mutual Insurance
444 A.2d 647 (Supreme Court of Pennsylvania, 1982)
Sattler v. Opperman
14 Pa. Super. 32 (Superior Court of Pennsylvania, 1900)

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Bluebook (online)
20 Pa. D. & C.4th 224, 1993 Pa. Dist. & Cnty. Dec. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roycroft-v-nationwide-mutual-fire-insurance-pactcomplyork-1993.