Appeal, No. 426, Oct. T., 1962, from order of County Court of Philadelphia, June T., 1961, No. 15677-B, in case of Anthony Carrozza v. Lawn Mutual Insurance Co. et al. Order affirmed; reargument refused May 18, 1963.
A. Martin Herring, with him Miller, Pincus & Greenberg, for appellant.
Rames J. Bucci, with him Bucci & Bucci, for appellee.
Before Rhodes, P.j., Ervin, Wright, Woodside, Watkins, Montgomery, and Flood, JJ.
[ 200 Pa. Super. Page 503]
OPINION BY MONTGOMERY, J.
This is an appeal by the Girard Chevrolet Company from an order discharging a rule to open a default judgment obtained by the appellee against the Girard Chevrolet Company for failure to file an answer in an assumpsit action.
On September 22, 1961, the appellant was served with a copy of a complaint in assumpsit alleging a promise on the part of the appellant to arrange insurance coverage for the automobile the appellee was purchasing from the appellant. After this purchase in October, 1960, appellee avers that he made inquiries from time to time of the appellant and the other two corporate defendants in the case as to whether or not his newly purchased automobile was covered by insurance and in each instance he was assured that it was.
About eight weeks after the purchase appellee's new automobile was burglarized and wrecked. When appellant attempted to recoup his loss, he discovered that there was no insurance coverage on his car and brought suit against the three defendants for the amount of the G.M.A.C. loan, by which appellant financed the purchase, less the salvage value. His alleged damages were in the sum of $3,873.00.
Appellee alleges that the Girard Company agreed to have the vehicle insured and financed through G.M.A.C.
[ 200 Pa. Super. Page 504]
but rather placed the insurance with Safeguard, which was subsequently cancelled. Appellant did notify Lawn Mutual Insurance Company, but before an endorsement was mailed to G.M.A.C. the Girard Company had cancelled the Safeguard policy. After the automobile was burglarized, Lawn denied knowledge of an order.
Upon being served with the copy of the complaint, the Girard Company called the law offices of its attorney and was informed that he was abroad and would remain so for approximately the succeeding two months. However, the appellant was advised to forward the complaint and an associate of the appellant's attorney would take the necessary defense procedures. The following week the law offices of the appellant's counsel were moved to a new location and the appellant alleges that during the process of the said removal, the preliminary objections which had been prepared for filing, together with the ...