Opinion ID: 1443395
Heading Depth: 1
Heading Rank: 1

Heading: The claim based on suretyship.

Text: The cloud of confusion which for many years had enveloped the subject of when the defense of the Statute of Frauds was waivable and when not was lifted in Brown v. Hahn, 419 Pa. 42, 49, 213 A. 2d 342 (1965) wherein Mr. Justice (now Chief Justice) JONES, speaking for the Court, concisely summarized the distinction between the two: Bearing in mind that the provisions of the several Statutes of Frauds differ in that language and that provisions of some Statutes of Frauds make unenforceable or void oral agreements in violation thereof while provisions of other Statutes of Frauds constitute declarations of public policy, the appropriate rule is that, if the particular statute operates to bar or destroy the plaintiff's right of action, i.e., is a limitation on the power of the judiciary to afford a remedy, such statute constitutes a ground for demurrer and may be raised by preliminary objections: on the other hand, if the statute merely gives the defendant a waivable defense, such defense must be raised under Rule 1030 [New Matter] and not under Rule 1017(b) [Preliminary Objections]. [4] When previously confronted with the statute covering promises to answer for the debt or default of another, this Court held that the language in the Act of 1855 (see footnote 1) that no action shall be brought indicated a nonwaivable provision of the Statute of Frauds. Leonard v. Martling, 378 Pa. 339, 106 A. 2d 585 (1954). Failure by the defendant in the Leonard case to raise this defense either by preliminary objection or by answer did not prevent his requesting and obtaining judgment on the pleadings. If, as decided in Leonard, a nonwaivable Statute of Frauds defense can support a judgment on the pleadings where the defense is not raised until after the close of the pleadings (in the motion for judgment), it would be anomalous indeed not to allow the defense to prevail where the defendant raises it in his answer by way of new matter. Despite the appropriateness of the procedure followed by appellee as to the suretyship claim, the trial court improperly granted his requested relief. Judgment on the pleadings should be allowed only where a case is free from doubt and trial would be a fruitless exercise. As with a demurrer, all the opposing party's well-pleaded facts must be accepted as true. Goldman v. McShain, 432 Pa. 61, 247 A. 2d 455 (1968); Bata v. Central Penna. Nat. Bank of Phila., 423 Pa. 373, 378, 224 A. 2d 174, 178 (1966), cert. denied, 386 U.S. 1007, 87 S. Ct. 1348 (1967). The facts pleaded in the complaint are that in consideration of appellant's paying a commission to appellee, a realtor, and releasing appellant's then tenant, appellee procured a new tenant and promised to pay the rent should the new occupant default. It seems apparent to us that this arrangement, involving as it did a distinct benefit to the promisor (appellee) and detriment to the promisee (appellant) is at least consistent with an original and primary undertaking between those parties rather than merely a collateral suretyship promise within the statute. The situation presented by this pleading comes, we think, directly within the holding of the Superior Court in Goodling v. Simon, 54 Pa. Superior Ct. 125, 127 (1913), which this Court adopted in Eastern Wood Products Co. v. Metz, 370 Pa. 636, 641, 89 A. 2d 327 (1952): Whenever the main purpose and object of the promisor is, not to answer for another, but to subserve some pecuniary or business purpose of his own, involving either a benefit to himself, or damages to the other contracting party, his promise is not within the statute, although it may be in form a provision to pay the debt of another, although the result of it may incidentally have the effect of extinguishing that liability, is the rule laid down in many cases, and has been consistently followed by this court. It is possible, of course, that evidence adduced at trial might show the actual state of affairs to be quite different, and one to which the Statute of Frauds defense would be applicable; all we now hold is that the defense should not have been made the basis for a judgment on the pleadings.