Opinion
November 18, 1971.
December 29, 1971.
Contracts — Reformation — Reformation sought as an immediate prerequisite to obtaining a legal remedy — Action at law — Bill in equity seeking reformation of a fire insurance policy and a decree that upon the policy as reformed defendant is liable in the face amount of the policy — Propriety of form of action — Consideration by appellate court of its own motion.
1. Reformation can be secured in an action at law where it is sought as an immediate prerequisite to obtaining a legal remedy. [120]
2. Where it appeared that plaintiff filed a bill in equity seeking (1) reformation of a fire insurance policy, and (2) a decree that upon the policy as reformed, defendant was liable to plaintiff in the face amount of the policy, it was Held that plaintiff could have obtained full, complete, and adequate relief in an action of law, and, consequently, equity was not the proper form of action.
3. Although the appellant from a decree entered in an action in equity does not directly assert before the Supreme Court that equity was not the proper form of action, the Court may on its own motion consider the propriety of the form of action. [120]
Mr. Chief Justice BELL and Mr. Justice BARBIERI took no part in the consideration or decision of this case.
Argued November 18, 1971. Before JONES, EAGEN, O'BRIEN, ROBERTS and POMEROY, JJ.
Appeal, No. 413, Jan. T., 1971, from decree of Court of Common Pleas, Trial Division, of Philadelphia, Sept. T., 1969, No. 2340, in case of B. Axe Enterprises v. Northeastern Fire Insurance Company. Decree vacated and record remanded to law side of court.
Equity.
Decree nisi entered finding for plaintiff and against defendant, Northeastern Fire Insurance Company, and complaint dismissed as to defendant, Thomas M. Hoyle, Inc.; exceptions of defendant insurance company dismissed and final decree entered. Defendant Northeastern Fire Insurance Company, appealed.
Richard A. Kraemer, with him Duane, Morris Heckscher, for appellant.
Lawrence J. Richette, for appellee.
Appellee filed a bill in equity seeking (1) reformation of a fire insurance policy, and (2) a decree that upon the policy as reformed, appellant is liable to appellee in the face amount of the policy. On May 21, 1971, a final decree was entered, ordering appellant to pay appellee the face amount of the policy. This appeal followed.
Although appellant has not directly asserted before this Court that equity was not the proper form of action, we may on our own motion consider the propriety of the form of action, Barco, Inc. v. Steel Crest Homes, Inc., 420 Pa. 553, 558, 218 A.2d 221, 224 (1966); Harris-Walsh, Inc. v. Dickson City Borough, 420 Pa. 259, 263, 216 A.2d 329, 331 (1966), and we deem it appropriate to do so here.
A long series of decisions of this Court have established that reformation can be secured in an action at law where it is sought as an immediate prerequisite to obtaining a legal remedy. See, e.g., General Electric Credit Corp. v. Aetna Casualty Surety Co., 437 Pa. 463, 263 A.2d 448 (1970); Evans v. Marks, 421 Pa. 146, 218 A.2d 802 (1966); Easton v. Washington County Insurance Co., 391 Pa. 28, 37-40, 137 A.2d 332, 337-38 (1957); Presson v. Commonwealth Mutual Fire Insurance Co., 366 Pa. 436, 77 A.2d 353 (1951); Brandolini v. Grand Lodge, 358 Pa. 303, 305, 56 A.2d 662, 663 (1948); Broida v. Travelers Insurance Co., 316 Pa. 444, 175 A. 492 (1934); Gianni v. R. Russell Co., 281 Pa. 320, 325, 126 A. 791, 792 (1924); cf. Bugen v. New York Life Insurance Co., 408 Pa. 472, 184 A.2d 499 (1962); Restatement of Contracts § 507.
Here appellee sought reformation as an immediate prerequisite to obtaining a legal remedy — the awarding of money allegedly due on an insurance contract. Therefore, appellee could have obtained full, complete, and adequate relief in an action at law, and consequently equity was not the proper form of action. Trimble Services, Inc. v. Franchise Realty Interstate Corp., 445 Pa. 333, 340, 285 A.2d 113, 117 (1971); Stuyvesant Insurance Co. v. Keystate Insurance Agency, Inc., 420 Pa. 578, 580-81, 218 A.2d 294, 296 (1966); Barco, Inc. v. Steel Crest Homes, Inc., supra, 420 Pa. at 558, 218 A.2d at 224; Meehan v. Cheltenham Township, 410 Pa. 446, 449, 189 A.2d 593, 595 (1963).
Accordingly, the decree of the chancellor is vacated and the record is remanded for certification to the law side of the court. Appellee to bear costs.
If a good cause of action at law is pleaded in an action in equity, it is the practice in this Commonwealth to certify the action to the law side of the court, rather than enter an order of dismissal. See, e.g., Trimble Services, Inc. v. Franchise Realty Interstate Corp., supra; Siegel v. Engstrom, 427 Pa. 381, 386-87, 235 A.2d 365, 368 (1967); Sixsmith v. Martsolf, 413 Pa. 150, 153, 196 A.2d 662, 664 (1964); Hampsey v. Duerr, 401 Pa. 578, 166 A.2d 38 (1960); Pa. R. C. P. 1509(c).
Mr. Chief Justice BELL and Mr. Justice BARBIERI took no part in the consideration or decision of this case.