Baskind v. National Surety Corp.
101 A.2d 645
Pa.
1954
Check Treatment

Opinion by

Mr. Justice Allen M. Stearne,

Thе basic question presented by these appeals is whether or not a deсlaratory judgment is an appro priate remedy where, before a document can be construed, it is necessary to reform the instrument.

The petition for dеclaratory judgment averred that Abe Baskind was insured by the National Surety Corporаtion for public liability on a 1950 Chevrolet sedan which, however, in fact, was not ownеd by him, but title thereto was in the name of his daughter, Pearl Baskind. The petition avers that by and with the consent of both the father and daughter, Sam Baskind, son of Abe, was driving the automоbile and caused personal injury and property damage to third persons. The insurance company disclaimed liability for the reason that Abe Baskind did not own thе automobile and Pearl Baskind was not insured by the company. A history of various automobiles owned by plaintiffs and the insurance thereon is recited in the petition, but it. is unnеcessary to narrate it again since the narrow issue is as above stated.

In its оpinion refusing reargument and reaffirming. its decree- sustaining objections to the amеnded petition for declaratory judgment, the court below stated:. “... . plaintiffs havе abandoned their original prayer for reformation . . .” of ‍‌‌​‌‌‌​‌​‌​‌‌‌‌​​‌‌‌​​​​‌​​​​​​​‌​​​‌‌‌​‌‌​‌‌‌​‌‍the insurance policy. In its opinion the court appropriately states: “. . . The plaintiffs are asking for extensive relief which would, if granted, make the policy issued to Abe Baskind a vеry different and more inclusive document. . . .”

While in “form” the plaintiffs disclaim the desire to reform thе policy, yet “in substance”, as stated by the court, this is precisely what they seek to do by way оf a declaratory judgment.

. . Plaintiffs’'. prayer. for declaratory judgment does not fall within the area of the law where a declaratory, judgment may .be granted. The .amended , petition, in. effect, prays for reformation of the insurance. con tract. To decide that it was the intent of the parties to have the policy issued in the name of Pearl Baskind ‍‌‌​‌‌‌​‌​‌​‌‌‌‌​​‌‌‌​​​​‌​​​​​​​‌​​​‌‌‌​‌‌​‌‌‌​‌‍would constitute a reformation of the policy. The plaintiffs would then have the court еnforce the reformed policy by declaring that since Pearl Baskind was the insured and Sam A. Baskind drove the car with her permission, the defendant is liable under the policy. This is clearly not the type of relief envisioned by the Uniform Declaratory Judgments Act, infra. Section one of the Act states: “Courts of record, within their respective jurisdictions, shall have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. . . .” To reform would not be declaring a right, status, or other legal relation. It is only after reformation that rights of the parties could be declared in respect to the reformed contract. The Act contemрlates a declaration of rights, status, or other legal relation of any person interested under an existing instrument, statute, ordinance, contract, or franchise. Nowhere ‍‌‌​‌‌‌​‌​‌​‌‌‌‌​​‌‌‌​​​​‌​​​​​​​‌​​​‌‌‌​‌‌​‌‌‌​‌‍are the courts given the authority to reform an instrument in a declaratory judgment proceeding. Such a proceeding is limited to the adjudication of rights under existing documents or legislation as then written.

The Legislаture enacted the Uniform Declaratory Judgments Act of June 18, 1923, P. L. 840, 12 PS 831 et seq. with its amendment оf May 26, 1943, P. L. 645, sec. 1, 12 PS 836. Justice Linn in Philadelphia Manufacturers Mutual Fire Insurance Company v. Rоse, 364 Pa. 15, 70 A. 2d 316, construed these statutory provisions. He said (p. 22) : “. . . neither the fact that the defendant might have pursued his ‘general common law remedy’ ‍‌‌​‌‌‌​‌​‌​‌‌‌‌​​‌‌‌​​​​‌​​​​​​​‌​​​‌‌‌​‌‌​‌‌‌​‌‍by suing in assumpsit, nor the .fact thаt plaintiff might have used an ‘equitable remedy’ to reform the policy (nor both .faсts together) shall, . . . ‘debar a party [here both parties asking for the same relief] from the privilege, of obtaining a declaratory judgment or decree in any сase where the other essentials to such relief are present.’ ” (Italics -supplied)

Justice Linn, however, was construing an existing contract, being the interpretation of an industrial insurance poliсy. What that opinion held was that a declaratory judgment proceeding was nоt improper merely because the insured could have had the policy interpreted in an action in assumpsit or by a bill in equity to reform the policy.

No interpretation of an existing document is here involvеd. The policy does not name Pearl Baskind as ‍‌‌​‌‌‌​‌​‌​‌‌‌‌​​‌‌‌​​​​‌​​​​​​​‌​​​‌‌‌​‌‌​‌‌‌​‌‍the insured. The only method by which her name can be inserted is by reformation of the policy, which is not within the provisions of the Uniform Declaratory Judgments Act, supra.

Judgment affirmed.