Court Opinion

ID: 9696242
Source: CourtListenerOpinion
Date Created: 2023-08-25 18:41:54.37093+00
Date Added: 2024-06-11T12:17:34.868156
License: Public Domain

Montgomery, J.:
I cannot concur in the conclusion of the majority that the issue as to the status of the payment of the insurance proceeds received by appellees (mortgagees) cannot be decided in this case. That is the only issue to be resolved. Although the chancellor ordered the satisfaction of the mortgage, the only prayer of the amended bill was that the payment of the fire loss to the appellees be declared to have been in relief of the mortgage debt. It is therefore irrelevant that the mortgagees are not now in a position to satisfy the mortgage. At the time the payment was received by the appellees, they were the mortgage creditors and legal holders of the instruments evidencing it.
Furthermore, I do not agree that the provision of the policy cited in the majority opinion altered the situation. That provision provides that whenever the insurer pays a loss to a mortgagee but claims that no liability exists to the mortgagor, it shall “to the extent of such payment, be thereupon legally subrogated to all the rights of the party to whom such payment shall be made, under all securities held as collateral to the mortgage debt, . . .” However, it “may at its option, pay to the mortgagee (or trustee) the whole principal dub of to gro# dtte bn the mortgage with interest, ánd *269shall thereupon receive a full assignment and transfer of the mortgage and of all such other securities: . . .”
It is thus clearly stated that the insurer may elect to pay the fire loss and claim subrogation rights or buy the entire mortgage debt and interest without regard to the amount of or the legal obligation to pay the fire loss. It is equally clear that the insurer did not elect to exercise this option since it paid only the amount of the fire loss and permitted the mortgagees to continue to collect from the mortgagors the balance due on the indebtedness. The status of the insurer is, therefore, that of a subrogee to the extent of its payment of the fire loss.
As evidence of its subrogation rights, the insurer took an assignment of the mortgage and bond under a stipulation that the assignment was subject to the payment to the Seekingers of the balance of $752.98 still due them, and the Seekingers continued to collect from the mortgagors the established monthly payments of $43.85 plus one-half of the annual tax, or a total of $52.75 each month, until that balance was reduced to less than $175.53 at the time appellant made a tender of that entire balance together with satisfaction costs on June 25, 1959 (over two years after the fire loss had been paid to appellee). Thus appellees continued to be the legal owners of the mortgage and bond after they had received the proceeds of the policy, subject only to the rights of the insurer as subrogee; and the basic issue, viz., the balance due on the mortgage indebtedness, is still between the mortgagees and the mortgagor.
It must be recognized as established that the payment was made under the terms of the policy and the attached mortgagee clause because of the fire loss. What was the effect of that payment? Appellant contends that it was made for her benefit because of the loss of her property; appellees contend that it was for *270their benefit alone to replace their lost security, and that the balance on the mortgage debt remains unchanged and unaffected by it. This issue remains unresolved. The majority says it cannot be resolved since the insurance company is not a party. This can readily be remedied by vacating the decree, reinstating the bill, and remanding the case for further proceedings after the insurer is made a party. Under Pa. R. C. P. 2232-(c), the court may order its joinder.1 This should be done since the appellees are asserting equities of their subrogee as their defense; and further, since a subrogee stands in the place of his subrogor, it is imperative that it be joined herein and this entire matter concluded without additional litigation.
I would reverse and remand for further proceedings, and therefore dissent.
Watkins, J., joins in this dissent.

 Pa. R. C. P. 2232(c). At any stage of an action, the court may order the joinder of any additional person who could have joined or who could have been joined in the action and may stay all proceedings until such person has been joined. The court in its discretion may proceed in the action although such person has not been made a party if jurisdiction over him cannot be obtained and he is not an indispensable party to the action.