Clifton v. Suburban Cable TV Co., Inc.

642 A.2d 512, 434 Pa. Super. 139, 1994 Pa. Super. LEXIS 1619
CourtSuperior Court of Pennsylvania
DecidedMay 24, 1994
Docket1573
StatusPublished
Cited by20 cases

This text of 642 A.2d 512 (Clifton v. Suburban Cable TV Co., Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clifton v. Suburban Cable TV Co., Inc., 642 A.2d 512, 434 Pa. Super. 139, 1994 Pa. Super. LEXIS 1619 (Pa. Ct. App. 1994).

Opinions

CIRILLO, Judge.

This is an appeal from an order entered in the Court of Common Pleas of Montgomery County sustaining the preliminary objections of appellee Suburban Cable Television Company, Inc. (Suburban) in the nature of a demurrer and dismissing the complaint of appellant Zebbie J. Clifton (Clifton). We affirm.

[141]*141Clifton is a prisoner incarcerated at the Graterford Correctional Institution (the Prison) in Graterford, Pennsylvania. In June, 1992, the Commonwealth and Perkiomen Home-Vue, Inc. (Perkiomen) entered into a contract which provided that Perkiomen would install and maintain cable television service to 1,942 individual prison cells in the Prison. The original term of the contract was 15 years, to continue thereafter on a year-to-year basis.

For administrative convenience, the contract required the Commonwealth to collect payments from or on behalf of the inmates and then remit these payments to Perkiomen on a monthly basis. Perkiomen assumed responsibility for maintaining and keeping in good repair the cable equipment necessary for good and safe reception from each outlet. The inmates were responsible for the cable equipment installed and placed in their cells. In fact, the inmates were required to sign a responsibility retainer in which they agreed to pay up to $50.00 if the cable converter was damaged or destroyed. Finally, the contract provided that upon one year’s written notice to the Commonwealth, Perkiomen could renegotiate its cable rates, subject to the Commonwealth’s written acceptance. In 1986, Perkiomen sold all franchise and company rights to Suburban.

In December, 1987, Clifton signed a responsibility retainer in order to receive cable television services in his cell. Suburban sent a notice to the Commonwealth that a $1.00 price increase would be placed on all cable service, effective March 1, 1989. The notice was not given to the Commonwealth within the requisite time period stated in the contract. Clifton, therefore, filed a complaint with the Prison, objecting to the rate increase. The record is not clear regarding the outcome of Clifton’s initial complaint.

In November, 1989, Suburban sent a second notice to the Commonwealth informing it that basic service would be discontinued at its regular price as of January 1, 1990, and that, instead, a contracted package would be offered at a slightly higher price. Again, Clifton filed a complaint with the Prison. On January 1, 1990, Suburban, as promised, eliminated its [142]*142basic package and replaced it with a higher priced combination package.

Clifton filed a complaint against Suburban in the Court of Common Pleas of Montgomery County claiming that Suburban breached its contract with the Commonwealth (the Prison) in that Suburban was bound to provide cable services to the Prison at a set price. Clifton sought a preliminary injunction, as well as compensatory and punitive damages. In response to Clifton’s complaint, Suburban filed preliminary objections in the nature of a demurrer. Following a hearing, the Honorable Albert R. Subers denied Clifton’s motion for injunctive relief. Thereafter, the Honorable Bernard- A. Moore sustained Suburban’s preliminary objections and dismissed Clifton’s complaint. This appeal followed.

On appeal, Clifton presents one issue for our review: Whether the trial court erred in granting Suburban’s preliminary objections in the nature of a demurrer and holding that Clifton, as a prisoner and a subscriber of cable services, has no standing or remedy at law as a third-party beneficiary to the contract between Suburban and the Commonwealth?

In an appeal from an order sustaining preliminary objections in the nature of a demurrer, this court applies the same standard employed by the trial court: all material facts set forth in the complaint as well as all inferences reasonably deducible therefrom are admitted as true for the purposes of review. Kyle v. McNamara & Criste, 506 Pa. 631, 634, 487 A.2d 814, 815 (1985); Baker v. Magnetic Analysis Corp., 347 Pa.Super. 188, 192, 500 A.2d 470, 472 (1985). The question presented by the demurrer is whether, on the facts averred, the law says with certainty that no recovery is possible. Where any doubt exists as to whether a demurrer should be sustained, it should be resolved in favor of overruling the demurrer. Kyle, supra; Baker, supra.

Although the contract between the Commonwealth and Perkiomen/Suburban may have been consummated with the intent to benefit the inmates at the Graterford Correctional [143]*143Institute (e.g., to provide cable television services to the inmates), the nature of this contract and the public policy of this Commonwealth preclude a finding that the inmates have standing to sue under the contract as third-party beneficiaries.

In Guy v. Liederbach, 501 Pa. 47, 459 A.2d 744 (1983), the Pennsylvania Supreme Court adopted the Restatement (Second) of Contracts § 302 (1979) as the law of this Commonwealth concerning third-party beneficiary rights. Section 302 states:

Intended and Incidental Beneficiaries
(1) Unless otherwise agreed ... a beneficiary of a promise is an intended beneficiary if recognition of a right to performance in the beneficiary is appropriate to effectuate the intention of the parties and either
(a) the performance of the promise will satisfy an obligation of the promisee to pay money to the beneficiary; or
(b) the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.
(2) An incidental beneficiary is a beneficiary who is not an intended beneficiary.

Restatement (Second) of Contracts § 302 (1979) (emphasis added); see also Scarpitti v. Weborg, 530 Pa. 366, 609 A.2d 147 (1992); Strutz v. State Farm Mut. Ins. Co., 415 Pa.Super. 371, 609 A.2d 569 (1992).

Pursuant to Section 302, two requirements must be met in order to assert a claim under a contract as an intended third-party beneficiary. The first prong of the test sets forth a standing requirement which empowers the trial court to determine, in its discretion, whether third-party beneficiary status is appropriate in a particular case. Restatement (Second) of Contracts § 302(1) (1979); Scarpitti, 530 Pa. at 371, 609 A.2d at 150. The second prong requires satisfaction of either subsection (a) or (b). Subsections (a) and (b) of section (1) define the two types of claimants who may be intended as third-party beneficiaries under any given contract. Restate[144]*144ment (Second) of Contracts § 302(l)(a), (b) (1979); Scarpitti, 530 Pa. at 371, 609 A.2d at 150.

Here, Judge Moore exercised his discretion and found it to be inappropriate to confer third-party beneficiary status to prison inmates under these circumstances. Specifically, Judge Moore held that “state prisoners] do not have standing to enforce contracts entered into by the Commonwealth.”

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Clifton v. Suburban Cable TV Co., Inc.
642 A.2d 512 (Superior Court of Pennsylvania, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
642 A.2d 512, 434 Pa. Super. 139, 1994 Pa. Super. LEXIS 1619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifton-v-suburban-cable-tv-co-inc-pasuperct-1994.