Opinion ID: 2190354
Heading Depth: 1
Heading Rank: 3

Heading: the lapsed insurance policy proceeds

Text: The Essex Square partnership agreement, Article VI, § 2(b), (R. 687a), expressly required Essex Square Corporation, the corporate general partner, to maintain a $250,000.00 life insurance policy on Mr. Hall's life, with proceeds going to the partnership. The evidence, which is uncontradicted, shows that the corporate general partner failed to pay the premiums, which caused a lapse in the policy. The trial court found that the Essex Square Corporation breached its duty and hence had to account to the partnership for the $250,000.00 loss. The claim by the partnership against the corporate general partner was allowed. [8] On appeal to the Superior Court, Appellants argued that the claim should not have been allowed because it was not raised at any time prior to the hearings, and because the running of the applicable statute of limitations (or, in the alternative, the doctrine of laches) barred the claim. The Superior Court held that this particular attack upon Appellees' cause of action was waived. When the testimony regarding the insurance policy under which recovery was sought was introduced, Appellants did not object. Indeed, no objection was made until post-hearing exceptions were filed and, even then, the particular grounds upon which the introduction of such evidence was allegedly erroneous were not set forth. The Superior Court's conclusion on this point is correct and must be affirmed. Appellees' original complaint in equity in the Essex Square matter did not set forth the fact that the insurance policy had lapsed, or any facts related thereto, but did, inter alia, seek an accounting (R. 66a-73a). In a suit for an accounting, it is reasonable for the court to permit some latitude since often times it is not certain what claims a plaintiff may have until the accounting is completed. [9] Appellants' preliminary objections did not, of course, raise the insurance policy issue, and need not have done so. Those objections did, however, generally assert the defense of laches as to all claims being made. (R. 77a). The defense of laches had certainly occurred in a general way to Appellants' counsel by this time. At trial, Mr. Lipsitz testified as to the lapsed policy. (R. 233a-234a). The testimony was not introduced for the sake of idle conversation. Nevertheless, Appellants did not object or raise their statute of limitations or laches defenses at this time. Nor was any request made at any time to require Appellees to amend their complaint to conform to the proof under Pa.R.C.P. 1033. If Appellants' conduct up to this point was at least excusable, their subsequent conduct was not. Judge Ross's opinion and order allowing this claim was entered July 20, 1982. The corporate general partner's exceptions were, in fact, filed on January 7, 1983, almost six months later. [10] During this time, Appellants' counsel had ample opportunity to research and articulate their legal defenses, yet the exceptions filed did not expressly raise or even hint at a statute of limitations or laches defense on the insurance policy issue. In the Superior Court's words, they were mere boiler-plate. Such a lack of diligence cannot be excused. In Reilly by Reilly v. SEPTA, 507 Pa. 204, 489 A.2d 1291 (1985), in an opinion authored by this writer, this Court held that: We have often stated that as appellate tribunals, we are bound to resolve only those issues properly preserved for our review. In order to preserve an issue for appeal, a litigant must make a timely, specific objection at trial and must raise the issue on post-trial motions. Issues not preserved for appellate review cannot be considered by an appellate court even though the alleged error involves a basic or fundamental error.... 489 A.2d at 1296 (footnote omitted). Our holding was in turn based on a series of decisions by this Court beginning with Dilliplane v. Lehigh Valley Trust Co., 457 Pa. 255, 322 A.2d 114 (1974), and including Tagnani v. Lew, 493 Pa. 371, 426 A.2d 595 (1981). A similar rejection of boiler-plate motions has long been the standard in criminal cases. See, Commonwealth v. Waters, 477 Pa. 430, 384 A.2d 234 (1978). Pa.R.C.P. 227.1(b), although not adopted at the time of the trial in this case, merely codifies what this Court has required for some years. That Rule now provides: (b) Post-trial relief may not be granted unless the grounds therefor, (1) if then available, were raised in pre-trial proceedings or by motion, objection, point for charge, request for findings of fact or conclusions of law, offer of proof or other appropriate method at trial; and (2) are specified in the motion. The motion shall state how the grounds were asserted in pre-trial proceedings at trial. Grounds not specified are deemed waived unless leave is granted upon cause shown to specify additional grounds. Appellants' failure to file a specific post-trial motion raising their statute of limitations or laches defenses constitutes waiver. We will not review on the merits contentions that could and should have been raised at the trial level, particularly where no satisfactory reasons have been demonstrated that would justify the conclusion that a party at trial was misled despite his most diligent attempt to comply with the normal rules of practice and procedure. The allowance of the claim for the amount lost because of the lapse in insurance policy premiums must be, and the same is, hereby affirmed.