Vaskie v. West American Insurance Co.

556 A.2d 436 (1989)

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Vaskie v. West American Insurance Co.

Pennsylvania Supreme Court
556 A.2d 436 (1989)

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Facts

On January 1, 1985, Anne Marie Vaskie (plaintiff) was in a car accident with a vehicle insured by West American Insurance Company (West) (defendant). Vaskie hired attorney Harold Murnane to seek damages for injuries she incurred. In late 1986, Murnane and West engaged in settlement negotiations. On December 1, 1986, West sent a letter to Murnane offering $25,000 in exchange for Vaskie’s relinquishment of her personal-injury claim. The letter did not specify when the offer terminated. Under Pennsylvania law, the statute of limitations on Vaskie’s claim expired on January 1, 1987. On January 9, 1987, Murnane accepted West’s offer on Vaskie’s behalf. West refused to pay, arguing that its offer expired as a matter of law when the statute of limitations ran and thus Murnane’s acceptance was not valid and there was no contract. Vaskie sued West, arguing that the parties had a contract and seeking damages for West’s breach. Both parties moved for summary judgment. The trial court held in Vaskie’s favor, concluding that there was an enforceable contract because, as a matter of law, West’s offer had not expired before being accepted. West appealed.

Rule of Law

Issue

Holding and Reasoning (Beck, J.)

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