199 A. 216 | Pa. | 1938
Johnston Harder, Inc., was appellant's general agent in Western Pennsylvania for its insurance business. Affiliated Insurance Agencies, Inc., was the collector of insurance premiums for Johnston Harder, *338 Inc. Appellant filed a bill for an accounting against both of these companies. The agent filed an answer containing, as ancillary to its principal defense, a complaint under "new matter" and a request for affirmative relief. Therein it set up a counterclaim for unliquidated damages for the unlawful cancellation of the agency contract by appellant and the fraudulent seizure of their business. The other defendant, Affiliated, admitted it had $15,531.72 in its possession which was claimed by both the other defendant and appellant. It took the position that it was a mere stakeholder between parties adversely claiming the fund. This money was paid into court. Appellant filed preliminary objections challenging the right of defendants, appellees, to file separate answers, and attacking the answer of Johnston Harder, Inc., as unresponsive and improper because it set up a separate and distinct cause of action. The objections were dismissed and appellant was directed to file a reply to the "new matter."
Before discussing the question of whether the appeal is from an interlocutory decree, we will consider briefly appellant's preliminary objection that the "new matter" constituted a separate cause of action unresponsive to the bill.
Since the claim was for unliquidated damages, appellant insists appellee must pursue its appropriate legal remedy by separate suit. This conclusion entirely ignores the basis of appellant's bill of complaint. The subject-matter contained in detail under the heading "new matter" was not only responsive to the bill but germane to the cause of action therein. Appellant asked the aid of equity to obtain an accounting. The right grew out of an agency contract and its termination. The answer states that because appellant breached the contract and practiced fraud, its agent was entitled to withhold the funds until the damages could be assessed and compensation made for the unlawful cancellation of the contract and the seizure of the agent's business. The *339
broad controversy arising over the relationship between the parties as principal and agent was involved in the bill and answers. Equity having assumed jurisdiction over a cause of action will retain it for the purpose of effecting complete justice between the parties, even though there is included in such determination the settlement of unliquidated claims for damages. Equity, in these circumstances, is competent to dispose of the entire controversy to prevent unnecessary litigation: Wally et al. v. Wally et al.,
While it is true, as appellant contends, that a set-off cannot be pleaded against funds held in trust (Kelter, Trustee,v. American Bankers Finance Co.,
The objection to the separate answer filed by the Affiliated Insurance Agencies is without merit and needs no discussion.
This appeal is from the decree of the court below dismissing preliminary objections to the answers to appellant's bill in equity. Such an order is interlocutory and not appealable:Stone v. New Schiller B. L. Assn., supra;Fidelity-Philadelphia Trust Co. v. Berkin,
Appeal quashed.