Clayton v. Cawley

10 Pa. D. & C.3d 275, 1979 Pa. Dist. & Cnty. Dec. LEXIS 377
CourtPennsylvania Court of Common Pleas, Berks County
DecidedJanuary 31, 1979
Docketno. 24
StatusPublished

This text of 10 Pa. D. & C.3d 275 (Clayton v. Cawley) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clayton v. Cawley, 10 Pa. D. & C.3d 275, 1979 Pa. Dist. & Cnty. Dec. LEXIS 377 (Pa. Super. Ct. 1979).

Opinion

SCHAEFFER, J.,

— This action is a class action brought by five citizens of Oley Township on behalf of all users or potential users of the sewer system of the Oley Township Municipal [277]*277Authority against the authority, the five members of the authority at the time of construction of the sewer system, and Spotts, Stevens and McCoy, Inc. (Spotts), an engineering firm. Plaintiffs allege in their complaint that the authority and Spotts entered into a written agreement under which Spotts was to design and supervise the construction of a sewer system treatment plant. With the aid of these engineerng services, the authority undertook the construction of such a system and it was in the course of the construction of this system that, according to plaintiffs’ allegations, the authority and Spotts committed certain enumerated “wrongful and negligent” actions, with the result that the class of which plaintiffs are members has sustained damages and in the future will sustain damages in the form of sewer rates which have been, and will be, higher than would have been the case if defendants’ wrongful and negligent actions had not occurred.

Since both past and future damages are claimed, the class of persons entitled to recover damages will include both past users subject to sewer rentals and future users so subject. The persons who comprise the class as to past damage need not be the same persons who will comprise the class as to future damage.

Upon the filing of this complaint, all of defendants made motions, and were granted leave, to take oral depositions of the named plaintiffs, limited to such matters as pertain to the propriety of bringing and maintaining this action as a class action. Said depositions having been taken, each of defendants filed preliminary objections to plaintiffs’ complaint, and it is by reason of these preliminary objections that this case is before us at this time. For [278]*278purposes of this opinion and order, it is necessary to place these prehminary objections into one of three categories and to consider each category separately.

I. OBJECTIONS TO THE PROPRIETY OF THE CLASS ACTION

Defendants have filed numerous prehminary objections in which they allege that the named plaintiffs may not properly maintain this action as a class action.

However, by stipulation the parties have agreed that the prehminary objections raising questions of fact with regard to, and challenging the propriety of, the maintenance of this action as a class action, should be dismissed with leave granted defendants to raise these matters by answer and new matter, in the event this action is not for other reasons dismissed or terminated. In accordance with this stipulation, we, therefore, dismiss ah prehminary objections relating to the propriety of maintaining this action.

II. PRELIMINARY OBJECTIONS OF THE AUTHORITY AND MEMBERS OF THE AUTHORITY

Apart from their objections to the maintenance of this action as a class action, the authority and the individual members of the authority have raised several preliminary objections to plaintiffs’ complaint.

A. Prehminary Objections in the Nature of a Demurrer and a Motion to Strike.

The authority and the members of the authority [279]*279in their prehminary objections nos. 6, 7 and 8 under their demurrer, and in their prehminary objection no. 14 in their motion to strike, contend that plaintiffs in their complaint have failed to show how the alleged negligent actions have caused their damages, and that because of this, they have faded to state a claim upon which relief can be granted, that the damages are improper, and that the relief requested is not available to plaintiffs. In ruling upon these objections, we must adhere to the basic principle that for purposes of a demurrer, the court must accept as true the well-pleaded facts of the complaint along with the fair and reasonable inferences therefrom: Philadelphia v. Penn Plastering Corp., 434 Pa. 122, 253 A. 2d 247 (1969).

In paragraph 6 of their complaint, plaintiffs allege that defendant members of the authority committed numerous acts of negligence in connection with the construction of the sewer system. In paragraph 8, they further allege that they “have been greatly damaged and will continue to be damaged by the aforesaid conduct of the defendants in that they will be obliged to pay higher rates for sewer use than otherwise would have been the case ...” From these allegations, one can reasonably infer that the defendants’ acts of negligence resulted in the construction of a sewer system and sewage treatment plant that is more costly than otherwise would have been the case, with the natural consequence that plaintiffs have sustained damages and will in the future sustain damages in the form of higher sewer rates. Therefore, we conclude that plaintiffs have alleged facts in their complaint which, along with the reasonable inferences from those facts, state a claim upon which relief can be granted.

[280]*280Plaintiffs claim the damages sustained should all be paid to the authority and be used to reduce sewer rates.

In claiming damages in this manner, plaintiffs are seeking a type of Fluid Class Recovery. Two types of Fluid Class Recovery have been delineated in the law. In the first type, plaintiffs seek to have the damages suffered by the class as a whole determined, contemplate that many individual members of the class will be permitted to, and will, claim and prove their individual damages, and then seek to have the unclaimed balance applied to the benefit of the class as a whole. In the second type, after the damages for the class as a whole have been determined, all of the damages are applied to the benefit of the class as a whole and the individual members of the class cannot recover their individual losses.

Plaintiffs, in the case at bar, by asking that all of the damages be paid to the authority and be used to reduce sewer rates, are asking that the damages be paid to benefit the class as a whole, and make no provision for an individual member of the class to recover his or her actual loss. Therefore, plaintiffs in the case at bar seek the second type of Fluid Class Recovery.

Without determining at this time whether the first type of Fluid Class Recovery is permitted in Pennsylvania, we do determine that the second type is not.

As we have seen, plaintiffs allege that defendants’ conduct has caused, and in the future will cause, plaintiffs and other members of the class a loss, i.e., the difference between the sewer rates which they have been, and in the future will be, [281]*281required to pay and the sewer rates they would have had to pay, and in the future would have to pay, were it not for defendants’ conduct.

Therefore, two types of damages are claimed— past damages for losses sustained before verdict, and future damages for losses sustained after verdict. Past damages would properly be payable to persons who are members of the class as of the time of verdict, i.e., to persons who as of that time have paid, or then owe, the higher sewer rates for sewer service provided prior to verdict. Therefore, past damages must be paid to those persons who are members of the class as of that time. Each of such persons individually will have sustained a loss and such persons will not necessarily be the same individuals as those who will comprise the class after verdict.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Eisen v. Carlisle & Jacquelin
417 U.S. 156 (Supreme Court, 1974)
Printed Terry Finishing Co. v. City of Lebanon
372 A.2d 460 (Superior Court of Pennsylvania, 1977)
Bloomsburg Mills, Inc. v. Sordoni Construction Co.
164 A.2d 201 (Supreme Court of Pennsylvania, 1960)
Doyle v. South Pittsburgh Water Co.
199 A.2d 875 (Supreme Court of Pennsylvania, 1964)
Wenzel v. Morris Distributing Co.
266 A.2d 662 (Supreme Court of Pennsylvania, 1970)
Philad. Traction Co. v. Orbann
12 A. 816 (Supreme Court of Pennsylvania, 1888)
Kilian v. Allegheny County Distributors
185 A.2d 517 (Supreme Court of Pennsylvania, 1962)
Richette v. Pennsylvania Railroad
187 A.2d 910 (Supreme Court of Pennsylvania, 1963)
Philadelphia v. Penn Plastering Corp.
253 A.2d 247 (Supreme Court of Pennsylvania, 1969)
Commonwealth v. City of Jeannette
305 A.2d 774 (Commonwealth Court of Pennsylvania, 1973)
Eisen v. Carlisle & Jacquelin
479 F.2d 1005 (Second Circuit, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
10 Pa. D. & C.3d 275, 1979 Pa. Dist. & Cnty. Dec. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clayton-v-cawley-pactcomplberks-1979.