Commonwealth v. Brayman Construction Corp.

513 A.2d 562, 99 Pa. Commw. 373, 1986 Pa. Commw. LEXIS 2412
CourtCommonwealth Court of Pennsylvania
DecidedJuly 31, 1986
DocketAppeal, No. 1286 C.D. 1982
StatusPublished
Cited by29 cases

This text of 513 A.2d 562 (Commonwealth v. Brayman Construction Corp.) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Brayman Construction Corp., 513 A.2d 562, 99 Pa. Commw. 373, 1986 Pa. Commw. LEXIS 2412 (Pa. Ct. App. 1986).

Opinion

Opinion by

Judge Doyle,

This is an appeal by the Department of Transportation (DOT) from an order of the Board of Claims (Board) awarding the sum of $24,214.14, together with six percent interest from September 10, 1976, “to Brayman Construction Corporation-Bracken Construction Company, a Joint Venture.” (Brayman-Bracken).

The Board found that on or about July 27, 1973 Brayman-Bracken and DOT entered into a contract for the construction and improvement of a section of state highway in Allegheny County. A portion of the construction and improvement involved the fabrication and erection of overhead sign structures. Brayman-Bracken, the general contractor, subcontracted this portion of the work to an electrical contractor, Broadway Maintenance [375]*375Corporation (Broadway) which in turn subcontracted it to Bruce & Merrilees Electric Co. (Bruce-Merrilees). Bruce-Merrilees subcontracted the fabrication of the sign structures to a fabrication subcontractor, Conn. Welding and Machine Company (Conn). DOT specifications required that before fabrication, the sign structure supplier (here Conn) submit shop drawings for approval to DOT. The usual procedure in submitting drawings is for the supplier to submit to his general contractor (Conns general contractor was BruceMerrilees) who in turn submits to his general contractor and so on up the chain. The Board found that on August 15, 1974 Conn submitted its drawings together with a letter of transmittal to Bruce-Merrilees which, within a reasonable period, forwarded the drawings to Broadway. Broadway submitted the drawings to BraymanBracken which in turn submitted them in a timely manner to DOT. Because none of the contractors ever heard from DOT with respect to the drawings, Conn, in October of 1975, resubmitted the drawings again following the chain of privity. In addition, the Board found that Bruce-Merrilees frequently asked DOT field representatives about both sets of drawings.

Bruce-Merrilees first became aware that DOT had “approved” the original shop drawings on April 8, 1976 when an employee of Bruce-Merrilees, while visiting the DOT field office-trailer on other business, inquired, as he had before, on whether any action had been taken by DOT on the drawings. At that time two DOT employees discovered the original drawings somewhere in the trailer. These drawings did not contain DOTs certification of approval but contained only the signature of a DOT consultant indicating the consultants approval as modified some thirteen months earlier—March 12, 1975. Conn was unwilling to accept this signature as approval absent official DOT certification. Six days later [376]*376DOT alleviated Conns concern by issuing a letter over the signature of its district engineer, which letter indicated that DOT considered the drawings approved. Subsequent to receipt of this letter Conn immediately ordered its material; its fabrication of the structures then took approximately six months to complete.

Because of the twenty-month delay from the time Conn first submitted its drawings (August 15, 1974) until they were discovered in the DOT trailer (April 8, 1976) and approved, the signs could not be fully erected before the scheduled opening of the highway on August 31, 1976. Thus, the structures had to be erected while the highway was open to traffic causing an increase in labor, office and equipment costs. The Board found that had Brayman-Bracken and its subcontractors received the approved drawings from DOT on or about November 1974, as the parties had estimated, the structures would have been erected well before the August 31, 1976 highway opening. It further found the delay attributable to DOT and assessed the damages noted above.

On appeal DOT raises several issues for our consideration. We shall examine them seriatim, keeping in mind that our scope of review of a Board order is limited to determining whether the order is in accordance with the law and whether the findings of fact are supported by the evidence. Department of Transportation v. Mosites Construction Co., 90 Pa. Commonwealth Ct. 33, 494 A.2d 41 (1985).

DOTs first contention is that a general contractor cannot recover on behalf of its subcontractor before the Board where the general contractor has neither alleged nor proved that it (as opposed to its subcontractor) suffered damages. It is not disputed that all damages proven were damages sustained by Bruce-Merrilees. Further, there is no evidence of record to establish the liability, if any, of Brayman-Bracken to Bruce-Merrilees.

[377]*377DOT bases its argument upon Severin v. United States, 99 Ct. Cl. 435 (1943), cert. denied, 332 U.S. 733 (1944). Under Severin a general contractor cannot recover unless it has directly suffered damages or bears liability to the subcontractor as a result of the alleged breach. This doctrine has not been adopted in Pennsylvania and considering that the question here must be determined by examining the Boards jurisdictional grant of authority under state law,1 we do not view a federal case discussing the right of recovery of a general contractor on behalf of his subcontractor under federal law to be particularly illustrative.

Pursuant to Section 4 of the Act of May 20, 1937, which defines the Boards jurisdiction, the Board has exclusive jurisdiction “to hear and determine claims against the Commonwealth arising from contracts.” This grant of jurisdictional authority has been recognized to include the claims of subcontractors. In Armour Rentals, Inc. v. General State Authority, 4 Pa. Commonwealth Ct. 517, 287 A.2d 862 (1972), unpaid subcontractors brought suit against the General State Authority to recover sums not paid because of the financial collapse of both the general contractor and its surety. The case came before this Court in our original jurisdiction. We sustained preliminary objections raising the question of this Courts jurisdiction, and held that the cause of action in assumpsit belonged before the Board even though the plaintiff subcontractor was not a signatory to the contract with the Commonwealth. Further, we indicated that the Boards jurisdiction is invoked when the plaintiff remains unpaid by the Commonwealth.

[378]*378In Brocker Manufacturing & Supply Company v. United Bonding & Insurance Company, 8 Pa. Commonwealth Ct. 110, 301 A.2d 438 (1973) a subcontractor filed a complaint in this Court, as an original action, against his general contractor, the general contractors surety and the Commonwealth seeking reimbursement for steel reinforcing bars supplied to the general contractor. In countering the defendants argument that jurisdiction under the Armour case was with the Board, the plaintiff argued that, unlike Armour, the Commonwealth in Brocker was only a stakeholder and that the actual dispute was between the general contractor and the subcontractor. It further argued, however, that the Commonwealth as stakeholder was an indispensable party to the litigation and thus that jurisdiction was with this Court, not the Board. Judge Crumlish (now President Judge) rejected this argument and wrote:

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Cite This Page — Counsel Stack

Bluebook (online)
513 A.2d 562, 99 Pa. Commw. 373, 1986 Pa. Commw. LEXIS 2412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-brayman-construction-corp-pacommwct-1986.