Barto Technical Services, Inc. v. Lawrence (In Re Barto Technical Services, Inc.)

181 B.R. 246, 1995 Bankr. LEXIS 541, 1995 WL 253952
CourtUnited States Bankruptcy Court, W.D. Pennsylvania
DecidedApril 27, 1995
Docket19-20360
StatusPublished
Cited by2 cases

This text of 181 B.R. 246 (Barto Technical Services, Inc. v. Lawrence (In Re Barto Technical Services, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barto Technical Services, Inc. v. Lawrence (In Re Barto Technical Services, Inc.), 181 B.R. 246, 1995 Bankr. LEXIS 541, 1995 WL 253952 (Pa. 1995).

Opinion

MEMORANDUM OPINION

JUDITH K. FITZGERALD, Bankruptcy Judge.

The matter before the court is Debtor’s objection to the claim of Christine Lawrence (hereafter “Respondent”). 1 The Official Committee of Unsecured Creditors joined in Debtor’s objection.

Before the bankruptcy was filed, a motion for summary judgment was pending in Respondent’s wrongful death action in state court. The state suit included a products liability claim against various defendants, including Debtor and its subsidiary, Berkeley-Davis, Inc., with respect to a piece of equipment which crushed Respondent’s husband, Donald Lawrence, causing his death. We will address the matters raised in the bankruptcy court.

The facts underlying this dispute are essentially undisputed. Mr. Lawrence was a millwright at the Steelton, Pennsylvania, plant of Bethlehem Steel Corporation. The accident occurred while Mr. Lawrence was attempting to perform maintenance or repairs on a break-off arm which is part of a continuous longitudinal inside seam pipe welding machine and conveyor system. The machine had been turned off at an electrical control panel in preparation for repairs, but this action did not cut off the hydraulic pumping system that operates the arm. 2 While Mr. Lawrence was in the pit performing his task, the break-off arm rose and hit him in the head. In order to reset the arm and have it retract after the electricity was cut off, power to the line had to be restored. See Claimant[ ] Christine Lawrence’s Memorandum of Law in Support of Response to Objection of Barto Technical Services, Inc. to Claim of Christine Lawrence (hereafter Claimant’s Memorandum). See also id. at Exhibit J, letter from Consulting Engineers, Inc., Exhibit I, Deposition of Patrick J. Mi-dile at 94-99,104. Under the circumstances, once the break-off arm was activated, the only way to retract it was to restore power at a switch that was 30 feet away from the site of the accident. 3 Although the retraction was accomplished, Mr. Lawrence’s injuries were fatal.

The pleadings do not clearly explain the basis for assertion of a claim against Debtor. Respondent’s state court complaint avers that, in 1959, Bethlehem Steel Corporation purchased the equipment which had been manufactured by Berkeley Company. In 1960 the assets and liabilities of Berkeley Company were transferred to the Berkeley-Davis Company which continued operation as Berkeley-Davis, Inc. Claimant’s Memoran *248 dum at Exhibit A at 2, ¶ ¶ 6A, 6B. At the time the equipment at issue was designed and produced, Berkeley-Davis, Inc., was in the business of designing and manufacturing the type of equipment involved in this case including the type of device represented by the break-off arm. Declaration of John M. Sant, P.E., (hereafter “Sant Declaration”) at ¶ ¶ 6, 14. The break-off arm functioned as part of the inside welding system. 4 At the time of Mr. Lawrence’s accident, Berkeley-Davis, Inc., was a wholly owned subsidiary of Debtor.

In the state court complaint Respondent also alleged that, as of the date of Mr. Lawrence’s accident (January 25, 1991), Debtor “may have assumed all relevant liabilities arising from the design, manufacture ...” of the equipment. See Claimant’s Memorandum at Exhibit A at 2-3, ¶ ¶ 3, 4, 7. Debtor does not contest the issue of its liability except on the basis of the Pennsylvania statute of repose, 42 Pa.Cons.Stat.Ann. § 5536. For purposes of this opinion, therefore, we assume, without deciding, that Debtor assumed the relevant liabilities before Donald Lawrence’s accident.

With this hypothesis utilized as the basis for the claim against Debtor, if a cause of action no longer exists with respect to Berkeley and Berkeley-Davis, it no longer exists as to Debtor because the Pennsylvania statute of repose abolishes the cause of action, not merely the right to a remedy. This difference distinguishes the statute of repose from a statute of limitations. See Catanzaro v. Wasco Products, Inc., 339 Pa.Super. 481, 489 A.2d 262, 264 (1985), citing Mitchell v. United Elevator Co., Inc., 290 Pa.Super. 476, 434 A.2d 1243, 1248 (1981) (relying on Freezer Storage, Inc. v. Armstrong Cork Co., 476 Pa. 270, 382 A.2d 715 (1978); Misitis v. Steel City Piping Co., 441 Pa. 339, 272 A.2d 883 (1971) (construing the predecessor of § 5536). Even if Debtor assumed all liabilities of its subsidiary Berkeley-Davis, Inc., and Berkeley-Davis’s predecessor, there is no cognizable cause of action and, therefore, no liability can be imposed, if the statute of repose applies.

We must decide whether Pennsylvania’s statute of repose operates to bar Respondent’s claim. The statute of repose is entitled “Construction projects” and provides

(a) General rule.—Except as provided in subsection (b), a civil action or proceeding brought against any person lawfully performing or furnishing the design, planning, supervision or observation of construction, or construction of any improvement to real property must be commenced within 12 years after completion of construction of such improvement to recover damages for:
(1) Any deficiency in the design, planning, supervision or observation of construction or construction of the improvement.
(2) Injury to property, real or personal, arising out of any such deficiency.
(3) Injury to the person or for wrongful death arising out of any such deficiency.
(4) Contribution or indemnity for damages sustained on account of any injury mentioned in paragraph (2) or (3).
(b) Exceptions.—
(1) If an injury or wrongful death shall occur more than ten and within 12 years after completion of the improvement a civil action or proceeding within the scope of subsection (a) may be commenced within the time otherwise limited by this subchap-ter, but not later than 14 years after completion of construction of such improvement.
(2) The limitation prescribed by subsection (a) shall not be asserted by way of defense by any person in actual possession or control, as owner, tenant or otherwise, of such an improvement at the time any deficiency in such an improvement constitutes the proximate cause of the injury or wrongful death for which it is proposed to commence an action or proceeding.
(c) No extension of limitations.—This section shall not extend the period within *249 which any civil action or proceeding may be commenced under any provision of law.

42 Pa.Cons.Stat.Ann.

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Bluebook (online)
181 B.R. 246, 1995 Bankr. LEXIS 541, 1995 WL 253952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barto-technical-services-inc-v-lawrence-in-re-barto-technical-services-pawb-1995.