188 Pa. Super. 359 | Pa. Super. Ct. | 1958
Opinion by
On June 26, 1954 the defendant, Firemen’s Insurance Company of Newark, New Jersey, hereinafter called “company,” issued a policy of insurance to one Emerson Mott insuring a certain 1947 Mercury four-door sedan bearing Serial No. 799A1632540, hereinafter called car “A”, against, inter alia, theft, to the extent of its actual cash value, for one year. The policy designated Emerson Mott as the named insured. It contained the following clause: “Loss Payee: Any loss under coverages D, E, F, G, H and I is payable as interest may appear to the Named Insured and Lawrence Ward, 1612 Fifth Avenue, Pittsburgh 19, Pa.” The address of Emerson Mott, as stated in the policy, was 1415 Fifth Avenue, Pittsburgh 19, Pa. Clause D included loss or damage caused by theft. The policy, by a rider attached thereto, further provided: “Loss or damage, if any, under the policy shall be payable as interest may appear to Lawrence Ward, 1612
Lienholder
Fifth Avenue, Pittsburgh 19, Pa. and this insurance as to the interest of the Bailment Lessor, Conditional
“Provided also, that the Lienholder shall notify the company of any change of ownership or increase of hazard which shall come to the knowledge of said Lienholder and, unless permitted by such policy, it shall be noted thereon and the Lienholder shall, on demand, pay the premium for such increased hazard for the term of the use thereof; otherwise such policy shall be null and void.”
Lawrence S. Ward, bailor, joining Emerson Mott, bailee, as a plaintiff, sued defendant company on the above mentioned policy after the automobile covered by the policy was stolen, the theft having taken place on or about October 6, 1954. At the trial Ward testified that he owned two cars, both 1947 Mercury sedans, and both almost identical except for color; that he sold car “A” to Mott on or about June 24, 1954 and had obtained the policy of insurance in question on June 26, 1954, insuring the vehicle sold with Emerson Mott as the owner and himself as the lienholder; that a day or two later Mott became dissatisfied with the vehicle he had purchased and had exchanged it for
One of the reasons assigned by the court below for its disposition of the case was that it had permitted Ward to testify as to the actual cash value of car “A”. It was not error to permit Ward to so testify, whether he be considered an owner or a lienholder of car “A”. The policy of insurance issued in this matter was undoubtedly intended to comply with the Pennsylvania law that “Such insurance shall be written for the dual protection of the buyer and of the seller, or subsequent holder, to the extent of his interest in the motor vehicle. Such insurance shall be for an amount, and period of time, and upon terms and conditions, which are reasonable and appropriate considering the type and condition of the motor vehicle, the amount of the time balance and the schedule of payments in the installment sale contract.” Act of June 28, 1947, P. L. 1110, §17, 69 PS §617.
This policy of insurance was issued to protect either the lessor or the lessee as their interest might appear. Any loss payable under clause D was expressly made payable to Lawrence Ward, who had a real interest in the car Avhether he be considered owner or lien-
The action of the court below was also based upon the failure of Ward to comply with the provision of the policy requiring notice to the company of the
The evidence in the present case reveals that on June 26, 1954 the company received a total premium of $127.00 to cover certain items of insurance for one year; that a day or two later the car was returned by the purchaser to the seller. There is no evidence that the company ever offered to return the whole or any part of the $127.00 premium although it now contends that its liability terminated after one or two days of coverage.
Order reversed and a new trial is granted.