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Davis v. Government Employees Insurance Co.

Affirmed: Judgment that release agreement, based in part on insurance policy's household limitation provision, was valid; ruling in a subsequent case that such a provision was invalid as against public policy could not be applied retroactively to the instant case because the instant case was no longer pending, and plaintiffs failed to show any mutual mistake of law or fact, misrepresentation or fraud that would invalidate the release.

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J.A08021/01

� 1 In this appeal we must determine whether Lambert v. McClure, 595 A.2d 629 (Pa.Super. 1991), decided four months after the parties executed a valid release agreement, should be applied retroactively to invalidate that agreement. We hold that the rule in Lambert does not affect the instant release, because under applicable Pennsylvania law, cases given “retroactive effect” apply only to future cases and pending cases in which the issue has been properly preserved. We further hold that Appellants failed to show the existence of any mutual mistake of law or fact, misrepresentation, or fraud that would invalidate the release. Therefore, we affirm.

� 2 The relevant facts and procedural history of this appeal are as follows. On December 12, 1989, Appellants’ parents, Rollin and Maxine Davis, were killed in a car accident. Rollin Davis held an insurance policy with Appellee, Government Employees Insurance Company (GEICO). The policy provided Mr. Davis with $300,000.00 in coverage, but “excluded coverage for bodily injury to any family member of insured [Rollin Davis] residing in the insured’s household in excess of the minimum financial responsibility limit required by Pennsylvania Law.” (Appellants’ Brief at 5). The minimum amount required by Pennsylvania law was $15,000.00. Thus, Appellants accepted that amount in full settlement of their claim with Appellee based on the family member limitation provision in their father’s insurance contract. On April 4, 1991, Appellants sent Appellee an executed release to that effect.

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