Court Opinion

ID: 9731995
Source: CourtListenerOpinion
Date Created: 2023-08-26 16:04:05.089825+00
Date Added: 2024-06-11T18:26:22.444000
License: Public Domain

CAPPY, Justice,
concurring:
I join in the opinion of Mr. Chief Justice Nix and the rationale therefor, but only insofar as it applies to the facts of the case sub judice. I have no difficulty concluding on the facts presented in this case that, where X has intentionally defrauded the insurer with respect to facts material to the risk insured, any claims made by X against the insurer within the first 60 days must fail. Because of X’s fraud, the policy is void ab initio with respect to claims made by X.
*10I write separately to emphasize that, in this case, we do not reach any conclusion with respect to the claims of innocent, injured third parties, facts not present in the case sub judice. I believe that overwhelming public policy considerations would dictate a different result where such claims are involved. Through the Motor Vehicle Financial Responsibility Law (“MVFRL”),1 the legislature has mandated that all owners of motor vehicles in Pennsylvania obtain liability insurance. See 75 Pa.C.S. §§ 1702 (“financial responsibility” defined) and 1781-1787 (requiring owners of motor vehicles to provide proof of financial responsibility). This requirement is not intended to protect the interests of the policy holder or the insurance company. Rather, it is wholly intended to protect the innocent and injured third party public. Its specific purpose is to ensure that all owners of motor vehicles will be able to respond financially for their “liability on account of accidents arising out of their use of the motor vehicle.” 75 Pa.C.S. § 1702.
This overriding governmental interest, which is apparent from the very definition of “financial responsibility,” would dictate that common law concepts of the rights of third party beneficiaries,2 to-wit, the innocent and injured third party, be rendered inapplicable. In effect, the rights of third party beneficiaries would be considered to be original, rather than derived from the rights of the insured. I believe that this result would be consistent with the main concern of the legislature in enacting the MVFRL, that is, to protect the innocent and injured public.
Thus, I agree with the result reached by the majority as it is applied to the facts of this case. It is contrary to common sense and to the law to conclude that the legislature would intend to reward a policy holder who has de*11frauded his insurer and who makes a claim for personal loss against those whom he has defrauded.
Likewise, it would be preposterous to conclude that, with regard to innocent and injured third parties who participated in no way in the fraud perpetrated on the insurance company, the legislature would have intended that they be denied protection as a result of the policy holder’s fraud where the Act itself has been created for their protection and benefit. Thus, it is my view that, with regard to innocent and injured third parties, the insurance company would be bound to honor the liability provisions of the insurance contract and may cancel said provisions only pursuant to § 1008.5 of Act 78.

. Act 1984, Feb. 12, P.L. 26, No. 11, § 3, 75 Pa.C.S. § 1701, et seq., "Motor Vehicle Financial Responsibility Law.”

. Generally, at common law, the rights of the third party beneficiary can be no greater than those of the original parties to the contract. Therefore, if the contract is void ab initio as to a party, it would be void ab initio as to third party beneficiaries, [cite]