Allied Security, Inc. v. A & S Security Systems, Inc.

75 Pa. D. & C.2d 627, 1976 Pa. Dist. & Cnty. Dec. LEXIS 246
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedFebruary 18, 1976
Docketno. GD 75-26299
StatusPublished

This text of 75 Pa. D. & C.2d 627 (Allied Security, Inc. v. A & S Security Systems, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Security, Inc. v. A & S Security Systems, Inc., 75 Pa. D. & C.2d 627, 1976 Pa. Dist. & Cnty. Dec. LEXIS 246 (Pa. Super. Ct. 1976).

Opinion

HESTER,/.,

Presently before the court is plaintiffs action in equity which seeks a prehminary injunction enjoining and restraining defendant, Public Parking Authority of Pittsburgh (hereinafter referred to as “parking authority”) from entering into two contracts for the “collection of parking meter revenues and other related services within the City of Pittsburgh for the Public Parking Authority of Pittsburgh” with defendant, A & S Security Systems, Inc. (hereinafter referred to as “A & S”) for so long as one Harvey Adams remains in the employ of the City of Pittsburgh as a member of its police force and is president of said defendant, A & S.

The facts giving rise to the initiation of the within action in equity may be briefly summarized as follows:

1. On or about October 15, 1975, defendant, parking authority, published certain specifications [628]*628for the letting of two separate contracts for various services to be performed relative to the parking authority’s parking meters, including, but not limited to, the collection of meter revenues, the protection of said meters against damage, and to provide parking authority with personnel in full dress uniform for the execution of said services.

2. At the time of the bringing of the within action, plaintiff, Allied Security, provided the aforementioned services to defendant, parking authority, pursuant to a valid contract, which contract is to expire at the time of the letting of the two contracts here in controversy.

3. Both plaintiff, Allied Security, Inc. (hereinafter referred to as “Allied Security”) and defendant, A & S, did timely submit sealed bids in accordance with said contract specifications.

4. Following the public opening and letting of the proposals submitted, it was announced that for both proposals, the lowest bidder was defendant, A & S.

5. At the time of the filing of the within complaint in equity, the contracts for the two proposals had not been awarded to defendant, A & S, by defendant, parking authority.

6. The president of defendant, A & S, is one Harvey Adams, who is employed by the City of Pittsburgh as a member of its police force.

It is plaintiff Allied Security’s contention that an award of either contract by defendant parking authority, to defendant, A & S, would be void and invalid as being contrary to public policy and the laws of Pennsylvania due to the fact that the president of defendant, A & S, is also a policeman of the City of Pittsburgh, and it is averred that it is incompatible for a City of Pittsburgh policeman to also [629]*629serve as president of a corporation which has contractual ties with the Pittsburgh Parking Authority.

Accordingly, plaintiff, Allied Security, brought the within action in equity seeking the aforementioned preliminary injunction.

A hearing on said petition for preliminary injunction was held before this court on November 21, 1975. At said hearing, the following persons gave testimony: Joseph J. Wozniak, the executive director of the parking authority; Harvey Adams, the president of defendant, A & S; and Richard Schwab, an employe of plaintiff, Allied Security.

Defendant, A & S, contends that plaintiff, Allied Security, lacks the capacity or standing to bring this action.

In Heilig Bros. Company, Inc. v. Kohler, 366 Pa. 72, 76 A. 2d 613 (1950), the Pennsylvania Supreme Court found that one who was an unsuccessful bidder on a public contract has the right to bring a suit to enjoin the contract as long as the moving party is a taxpayer. In the instant case, plaintiff filed an amended complaint alleging that it is a taxpayer. “A corporation, so chartered and operating within the Commonwealth, is necessarily a taxpayer to the Commonwealth. Indeed it could not avoid being one. . . . Plaintiff also possessed the status, as a disappointed bidder, to institute this suit.”: Heilig, supra, at 77.

In its brief, defendant, A & S, alleges that plaintiff lacks standing to sue because “neither Allied nor any other taxpayer of the City of Pittsburgh pays taxes to the Pittsburgh Parking Authority.”

With defendant A & S’s position on the “standing” issue, this court does not agree. The Pittsburgh Parking Authority was created pursuant to enabling legislation found in 53 P.S. §301 et seq., spe[630]*630cificaUy 53 P.S. §341, known as the Parking Authority Law, Act of June 5, 1947, P.L. 458, sec. 1. Section 345 of said act provides, in relevant part:

“§345. Purposes and powers; general

“(a) The Authority, incorporated under this act, shall constitute a public body corporate and politic, exercising public powers of the Commonwealth as an agency thereof, and shall be known as the Parking Authority of the city, borough or township of the first class, but shall in no way be deemed to be an instrumentality of the city, borough, or township of the first class or engage in the performance of a municipal function.”

Accordingly, in coupling the exercise of public powers as an agency of the Commonwealth with the allegation that plaintiff corporation is a taxpayer of the city and the Commonwealth, leaves little doubt as to plaintiffs standing to bring this action as a taxpayer’s suit in equity.

The essence of plaintiffs complaint to enjoin the Pittsburgh Parking Authority from entering into the contract in question with defendant, A & S, is founded upon the theory that the letting of such contracts “would be void and invalid as being contrary to public pohcy and the laws of the Commonwealth of Pennsylvania because of the fact that the president of defendant A 8c S is an employee of the City of Pittsburgh and defendant Parking Authority is a creation of the City of Pittsburgh” and “. . . because it is incompatible for the president of defendant A 8c S to carry on the business of a private security guard and at the same time be vested with the authority of a policeman of the City of Pittsburgh.”

In support of its contention, plaintiff directs the court’s attention to Stanley Appeal, 204 Pa.

[631]*631Superior Ct. 29, 201 A. 2d 287 (1964); a general order issued under date of November 25, 1975, by the City of Pittsburgh Superintendent of Police; City of Pittsburgh Ordinance 148 of 1968, paragraph 17; the City of Pittsburgh Home Rule Charter, §706, which becomes effective January 1, 1976 (the estimated time of the inception of said contracts in question); and to the Parking Authority Act itself, 53 P.S. §351(d), captioned “competition in award of contracts.”

53 P.S. §351(d) provides:

“(d) No member of the Authority or officer or employe thereof shall either directly or indirectly be a party to, or be in any manner interested in, any contract or agreement with the Authority for any matter, cause or thing whatsoever by reason whereof any liability or indebtedness shall in any way be created against such Authority. If any contract or agreement shall be made in violation of the provisions of this section the same shall be null and void and no action shall be maintained thereon against such Authority.”

City of Pittsburgh Ordinance 18 of 1968 at section 17 provides:

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Related

Heilig Bros. Co., Inc. v. Kohler
76 A.2d 613 (Supreme Court of Pennsylvania, 1950)
Stanley Appeal
201 A.2d 287 (Superior Court of Pennsylvania, 1964)

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Bluebook (online)
75 Pa. D. & C.2d 627, 1976 Pa. Dist. & Cnty. Dec. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-security-inc-v-a-s-security-systems-inc-pactcomplallegh-1976.