Block v. Mylish

351 Pa. 611, 41 A.2d 731 (1945)

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Block v. Mylish

Pennsylvania Supreme Court
351 Pa. 611, 41 A.2d 731 (1945)

KS

Facts

Alfred Mann and two others—Isaac D. Mylish and Jerome J. Drucker (defendants)—were partners in the firm Mylish, Mann and Drucker. The partnership took out a pair of life-insurance policies on each partner for an aggregate amount of $60,000 per partner. The partnership was the named beneficiary of all the policies. Mann died in 1943, naming Gordan A. Block (plaintiff) as his executor. The partnership agreement in place at the time of Mann’s death allowed the surviving partners an option to purchase Mann’s interest. The agreement also called for any life-insurance proceeds to belong to the surviving co-partnership. Mylish and Drucker contended that the proceeds from the life insurance should be exempted from the valuation of the partnership for purposes of buying Mann’s portion from his estate. Block contended that the proceeds from the life insurance became an asset of the partnership and had to be included in a determination of its value. Block argued the valuation, including the life-insurance proceeds, was essential to determining the amount due the Mann estate in exchange for the partnership share. Block filed for a declaratory judgment, and the trial court found in favor of Block and the estate. Mylish and Drucker appealed.

Rule of Law

Issue

Holding and Reasoning (Jones, J.)

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