Allegheny Clarklift, Inc. v. Woodline Industries of Pennsylvania, Inc.

514 A.2d 606, 356 Pa. Super. 269, 1986 Pa. Super. LEXIS 12130
CourtSupreme Court of Pennsylvania
DecidedAugust 29, 1986
Docket01032
StatusPublished
Cited by12 cases

This text of 514 A.2d 606 (Allegheny Clarklift, Inc. v. Woodline Industries of Pennsylvania, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allegheny Clarklift, Inc. v. Woodline Industries of Pennsylvania, Inc., 514 A.2d 606, 356 Pa. Super. 269, 1986 Pa. Super. LEXIS 12130 (Pa. 1986).

Opinion

MONTEMURO, Judge:

This is an appeal from an Order granting appellee’s motion for summary judgment.

Woodline, the catalyst in this action, was the lessee of certain premises owned by appellant, Fuellgraf/Nonco, and of certain machinery, to wit a forklift, owned by appellee. The equipment was used and maintained on appellant’s property, and was seized by appellant under the provisions of the Landlord and Tenant Act, 68 Pa. C.S.A. § 250.302, et seq. 1 (hereinafter the Act), after Woodline defaulted on the ground rent. Seeking return of the forklift, appellee commenced a replevin action to which appellant counterclaimed. *271 Appellee then successfully moved for summary judgment on the basis that the statute under which appellant had distrained on the forklift was unconstitutional, having been adjudicated violative of the Fourteenth Amendment.

On appeal this court vacated the judgment and remanded so that the Attorney General might be apprised of the constitutional claim as required by Pa.R.C.P. 235(a). 2 The Commonwealth declined to intervene in defense of the statute and the lower court renewed its previous Order grounding its judgment on the conclusion that under the Uniform Commercial Code Woodline had no secured interest in the equipment which could be subject to the landlord’s distraint for rent. This appeal followed.

Appellant’s claim is that Woodline did in fact possess a sufficient interest under the terms of the Act to validate distraint. Specifically it is argued that because appellee did not give notice under § 250.403 3 to the effect that ownership of the machine was vested in Allegheny Clarklift *272 rather than in Woodline, the property automatically became available as compensation for Woodline’s rent arrearages.

Appellant further contends that the constitutionality of the statute is not before this court, and that even if it were, appellee was afforded adequate notice so as to satisfy due process notwithstanding any deficiencies of the Act in this regard.

We find at the outset that the constitutional question is properly before us. It was raised below, and does not, as appellant suggests, simply vanish because the trial court circumvented it. So long as we reach the same (correct) destination as did the court below, we need not arrive there by an identical mode of travel. Johnson v. Earl Scheib, Inc., 352 Pa.Super. 278, 507 A.2d 1228 (1986).

Examination of the constitutional salubrity of the Act, which has occurred solely within the confines of the federal courts, began with Santiago v. McElroy, 319 F.Supp. 284 (E.D.Pa.1970). In that case, the federal district court invalidated the sale provisions of the statute, § 250.309, 4 on grounds that it failed to provide notice and hearing to the *273 tenant prior to disposal of distrained property. Musselman v. Spies, 343 F.Supp. 528 (M.D.Pa.1972); see also Sellers v. Contino, 327 F.Supp. 230 (E.D.Pa.1971). The Act’s other provisions, however, were specifically upheld as posing no threat to 14th Amendment rights.

In the second of two Opinions in Gross v. Fox, 349 F.Supp. 1164 (E.D.Pa.1972), vacated, 496 F.2d 1153 (3d Cir.1974), the distraint provisions as a whole were declared facially invalid because under them a landlord was permitted “to levy on the property on a tenant’s premises without prior notice or hearing in violation of the Fourteenth Amendment’s due process clause.” Id. at 1168.

Gross thus provided a foundation upon which further extrapolation on the infirmity of the statue could be superstructed. See, e.g., Litton Business Systems, Inc. v. Paul L’Esperance, Inc., 387 F.Supp. 1265 (E.D.Pa.1975); Stots v. Media Real Estate Co., 355 F.Supp. 240 (E.D.Pa.1973). However, the validity of this line of cases was compromised by the Third Circuit’s vacation of Gross on appeal, and its refusal to address the constitutional issue because, inter alia, “Courts generally try to avoid reaching constitutional issues, especially where, as here, a federal court is asked to pass on a state statute, and the question is not free from doubt.” Id. at 1154.

In SMI Industries, Inc. v. Lanard & Axilbund, Inc., 481 F.Supp. 459 (E.D.Pa.1979), resolution of the constitutional question was again avoided, this time on the basis that since posting and seizure of the contested property were performed by a private person rather than a sheriff, there was no state action such as would offend due process. The court also noted that in addition to the vacuum created by the abandonment of Gross, the very definition of state action was in a state of flux given the then recent decision in Flagg Brothers, Inc. v. Brooks, 436 U.S. 149, 98 S.Ct. 1729, 56 L.Ed.2d 185 (1978). There, relief for deprivation of *274 civil rights was sought under 42 U.S.C.S. § 1983. The TJ.S. Supreme Court found that the acts of the city marshal, on behalf of a bailor in enforcing a warehouseman’s lien under the New York Commercial Code, were not subsumable under the sovereign-function doctrine so as to constitute state action violative of the Fourteenth Amendment.

This decision affected not only the already problematical Gross line of cases, but also Ragin v. Schwartz, 393 F.Supp. 152 (W.D.Pa.1975), another authority, parallel to Gross, for the constitutional frailty of the Act. In Ragin, the court held that the sheriff who had physically made levy on the property “had power to act only because he is an official and thus performs ‘under color of law.’ ” Id. at 156. The Ragin conclusion of unconstitutionality was adopted by the court in Luria Brothers & Co. v. Allen, 452 F.Supp. 732 (W.D.Pa.1978), rev’d in part, 672 F.2d 347 (3d Cir.1982), which found that summary seizure of property belonging, not to the tenant, but to a third party contravened the Fourteenth Amendment. The Flagg Brothers holding however, was applied to Luria on appeal, with the Third Circuit again avoiding the constitutional issue. Its conclusion again was that because posting and seizure were performed by a private party, no state action was present to activate due process safeguards.

The thrust of Flagg Brothers

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Bluebook (online)
514 A.2d 606, 356 Pa. Super. 269, 1986 Pa. Super. LEXIS 12130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allegheny-clarklift-inc-v-woodline-industries-of-pennsylvania-inc-pa-1986.