Appeal from judgment of Court of Common Pleas, Trial Division, of Philadelphia, March T., 1972, No. 5044, in case of Florence Reiver v. Safeguard Precision Products, Inc.
Raymond T. Cullen, Jr., with him Morgan, Lewis & Bockius, for appellant.
Richard J. Gordon, with him Dilworth, Paxson, Kalish & Levy, for appellee.
Watkins, P. J., Jacobs, Hoffman, Cercone, Price, Van der Voort, and Spaeth, JJ. Opinion by Jacobs, J. Hoffman, J., concurs in the result.
[ 240 Pa. Super. Page 573]
The facts in this case are not in dispute, and are summarized in the opinion of the lower court:
"The facts established that the plaintiff's decedent, Samuel Reiver, was issued Life Insurance Policy 31-B-001 by Postal Life Insurance Company, effective August 15, 1960. Said policy, as amended, was assumed by Bankers Security Life Insurance Society and designated Policy No. 329,024 on August 15, 1969.
"For several years prior to 1968, Samuel Reiver had been General Manager of Penn El Service Company. This company was acquired by Safeguard Precision Products, Inc. [Safeguard, defendant-appellant] in February 1968, and at that time Samuel Reiver was to be employed as General Manager of the Penn El Service Company, a division of Safeguard Precision Products, Inc., for a period of five (5) years. Accordingly, an employment agreement*fn1 was executed on February 16, 1968, between
[ 240 Pa. Super. Page 574]
Samuel Reiver and the defendant, in which the defendant undertook to employ Plaintiff's decedent as General Manager of its Penn El Service Company, for which he was to receive $50,000. compensation for the first year and $25,000. per annum for the next four years. Likewise, commencing on February 16, 1968, the Defendant undertook to pay the premiums on the decedent's insurance policy [ see note 1 supra]. Thus the Defendant paid the premiums on the decedent's life insurance policy for the years 1968, 1969 and 1970. The Defendant had the option of paying the premium upon Reiver's life insurance policy to pay the premiums semiannually, quarterly or yearly, and that the Defendant chose to pay said premiums on yearly basis, such amount approximating $12,000. per annum.
"Samuel Reiver died December 23, 1970, and thereafter the insurance company paid to the decedent's beneficiary the face amount of the policy, $249,700., less the amount due said insurance company by reason of a loan to decedent in the amount of $69,416.60, plus an interest refund of $2,144.97 and a return premium of $6,602.68. The return premium of $6,602.68 paid to the Plaintiff by the Bankers Security Life Insurance Society represents the portion of the premium for the policy year commencing on August 15, 1970, applicable to the period from December 23, 1970 to August 15, 1971, the entire amount of which had been prepaid by the defendant.*fn2
[ 240 Pa. Super. Page 575]
"Plaintiff retained the death benefit proceeds from the insurance policy plus interest and the return premium. Thereafter Defendant made claim to Plaintiff for the payment of the returned premium in the amount of $6,602.68. Plaintiff refused, whereupon Defendant, still owing the decedent's beneficiary $25,000., in accordance with the amended Employment Agreement, [ see note 1 supra], deducted $6,602.68, as the amount of set-off between the amount of the returned premium claimed by the Defendant and the $25,000. owed to Plaintiff as named beneficiary of Samuel Reiver, as per Samuel Reiver's notification of April ...