Court Opinion

ID: 9862398
Source: CourtListenerOpinion
Date Created: 2023-09-25 01:09:09.873299+00
Date Added: 2024-06-11T11:25:17.431817
License: Public Domain

BURKE, J., dissents: The trial judge granted the motion to dismiss the amended complaint on the ground that the plaintiff (the insurer) was “out because of the statute of limitations.” On appeal the defendant (Administrator of the Estate of Veronica Varkalis, Deceased), argues for affirmance of the order of dismissal on the ground that the trial judge was right in ruling that the declaratory judgment complaint is barred by the five-year statute of limitations. The writer agrees with the position of the insurer that the action is not barred by the statute of limitations. A declaratory judgment action partakes of the nature of the litigation to which it pertains. The complaint asks the court to declare that the insurer is not obligated to pay any judgment that might be entered in favor of the administrator and against the insured, Kenneth Robinson. Any liability by the insurer to pay the administrator, who stands in the shoes of Robinson, arises from the insurance agreement between the insurer and the insured. Under all the pertinent decisions the declaratory judgment complaint is not barred by the ten-year or five-year limitation. All the terms of the contract, including the parties thereto, are clearly stated in the insurance policy. A cause of action on the insurance policy by the insured or someone standing in his shoes, (the administrator) against the insurer, could not arise until February 13, 1964, when the insurer was first notified of the pending lawsuit. The complaint was filed on October 28, 1966, well within the five-year, and of course, the ten-year limitation bar. The amended complaint averred ultimate facts entitling the insurer to a declaration that it was not obligated to defend the lawsuit or pay any part of a judgment which might be entered against Robinson. The administrator seeks a strange reverse application of the limitations act. The opinion also relies strongly on a point not argued in the briefs by either party and concludes that the insurer waived its right to assert in a declaratory judgment action that it “owed no obligation liability to Robinson.” The appellee, (administrator) apparently has no faith in this position. He supports the order for the reason given by the trial judge — that the action is barred by the statute of limitations. The insurer did not waive its right to insist that the language of the policy absolved it from payment of any part of the judgment against Robinson. The insurer, on notification by the administrator of the pendency for two years of the action by the administrator against Robinson caused attorneys selected by the insurer to file their appearance and answer for Robinson in the action by the administrator against Robinson. When the case came on for trial these attorneys moved to withdraw as counsel for Robinson. The judge granted this request and appointed an attorney to represent Robinson who was then in the penitentiary. The attorney so appointed, represented Robinson in the trial of the lawsuit by the administrator against Robinson which resulted in a finding and judgment (after a remittitur of $4,500) in the amount of $25,000 against Robinson. The record does not show any objection by the administrator or anyone else to the substitution. The validity of the order substituting attorneys has not been challenged to this day. The record does not show any breach of the insurance contract by the insurer. The attorney appointed for Robinson faithfully performed his duty as Robinson’s attorney. This record presents no evidence on which to base an estoppel against the insurer to assert its defense under the policy. The administrator must recover on the insurance policy on the basis of the coverage afforded to Robinson and is bound by all the provisions, one of which stipulates that the policy does not apply to bodily injuries caused intentionally by or at the direction of the insured. It is conceded that the insured threw Veronica Varkalis out of his car and then deliberately and maliciously killed her by running over her with the car. For this he was indicted for murder, pleaded guilty, was convicted and sentenced to the penitentiary where he is serving the sentence. Under these facts the insurance company has no obligation to pay the administrator anything. For these reasons the order should be reversed and the cause remanded with directions to enter a judgment in favor of the insurer and against the administrator declaring that the insurer has no obligation to pay anything to the administrator of the Estate of Veronica Varkalis, Deceased.