Durham Terrace, Inc. v. Hellertown Borough Authority

16 Pa. D. & C.2d 231, 1957 Pa. Dist. & Cnty. Dec. LEXIS 16
CourtPennsylvania Court of Common Pleas, Northampton County
DecidedMarch 4, 1957
Docketno. 2
StatusPublished
Cited by4 cases

This text of 16 Pa. D. & C.2d 231 (Durham Terrace, Inc. v. Hellertown Borough Authority) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Northampton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durham Terrace, Inc. v. Hellertown Borough Authority, 16 Pa. D. & C.2d 231, 1957 Pa. Dist. & Cnty. Dec. LEXIS 16 (Pa. Super. Ct. 1957).

Opinion

Barthold, P. J.,

— Plaintiff, Durham Terrace, Inc., filed a complaint in equity against defendant, Hellertown Borough Authority, claiming equitable relief in the nature of an accounting of moneys received by defendant-authority for supplying water to plaintiff’s housing development and demanding payment of income in excess of operating costs and [233]*233payment of $29,867.84, the amount allegedly spent by plaintiff for the installation of water mains.

Defendant-authority answered the complaint on the merits admitting most of the allegations of fact insofar as relevant to the cause at issue. Thereafter the case was tried in equity and at the end of plaintiff’s presentation of its case as to liability defendant-authority moved for a nonsuit or dismissal of the bill.

Plaintiff constructed 154 houses on a tract of land in the Borough of Hellertown known as the Rentzheimer farm. The houses were constructed between the years 1951 and 1954. They were sold and financed with the aid of the Veterans’ Administration Mortgage Guarantees. Prom time to time commencing December 27,1950, plaintiff’s predecessor in title and plaintiff requested defendant-authority to lay water mains and supply water to all occupants of the dwelling units constructed by plaintiff. Defendant-authority agreed to supply water but only on condition that plaintiff at its own expense construct and install all water mains in all streets in the development, make all connections from the mains in the bed of each street to a point 12 inches inside the curb line and install an undetermined number of fire hydrants. Prom the inception of the negotiations between the parties, defendant-authority insisted that plaintiff pay for the installation of the mains because the authority was not in a position to finance such a large-scale project. Plaintiff thereafter installed the required mains, house connections and fire hydrants at an alleged cost to plaintiff of $29,-867.84. Upon completion of the water distribution system by plaintiff, defendant-authority began to supply water to all occupants of the dwelling units constructed by plaintiff and charged and collected the usual metered rates.

Plaintiff instituted the present action in equity on February 26, 1955, more than three years after de[234]*234fendant-authority had approved plaintiff’s plans for the installation and approximately two years after it had accepted the terms imposed by defendant-authority.

The minutes of defendant-authority reveal the following:

On December 27,1950, Mr. Peck, an officer of Guerber Associates “advised the Authority his firm had an option to purchase the Rentzheimer Farm and contemplated the building of several hundred homes for which they required water. Mr. Peck inquired whether water was available and if the Authority would install the necessary water mains . . . and what portion of the expense the Authority would assume. . . . After some further discussion it was agreed between the parties that the Authority construct, at its own expense, additional water storage facilities to furnish water to the proposed building project and that the Guerber Associate, Inc., furnish and install, at its expense, all water mains, valves and fire hydrants and connections, said water main installation to be done by a reputable contractor, satisfactory to the Authority, and according to Authority standards and supervision.”

On February 12, 1951, “Chairman Dimmick reported that he had a call from Mr. Peck of the Guerber Associates about serving water to the proposed development on the Wm. Rentzheimer tract. Mr. Dim-mick informed him if they desired ivater they would be required to install the water mains at their expense.”

On September 17,1951, “Mr. Irwin Sanders and Attorney Cohn came before the Board relative to the water main situation on Durham Terrace. . . . Mr. Sanders stated, that all he asked, if he was required to install the mains, that he be refunded a portion of his investment, out of revenues, for several years. He [235]*235was informed by the Board that his request was not unreasonable, and if the Authority was in a financial position to do so, would possibly come to some understanding along these lines, but, all the revenues estimated to be gotten from the Durham Terrace development and any additional revenues from homes being built throughout the town is required to finance the construction of an additional storage dam, and that no money was available for the installation of water mains; that the Authority so informed Guerber Associates in their original request for water in this same development.”

The board took the following action: “It was moved by Keiper, seconded by Unangst, that, under the present conditions the Authority is unable to change its former postion on financing the installation of water mains on Durham Terrace, Inc., or any part thereof— motion carried.”

On September 26, 1951, “a Special Meeting of the Hellertown Borough Authority was held in the office of the Authority. . . . The Chairman stated that this meeting was called to afford Mr. Sanders of Durham Terrace, Inc., another opportunity to present his side of the water situation on their development.” After Mr. Sanders presented his views, the following action was taken: “The Board not in a. position to make any concessions, the meeting adjourned.” (Italics supplied. )

On October 8, 1951, “Mr. Irwin Sanders came before the Board and presented a revised plan for the installation of water mains, valves and fire hydrants in the Durham Terrace Tract; he requested permission to install 4" mains at various locations, also changes in location of fire hydrants. The Board informed him that they would study his plan and inform him of their decision later.”

[236]*236On October 10, 1951, “The Board studied the revised plan for water mains on Durham Terrace Tract, in which some 4" lines were substituted for 6" mains and the relocation of hydrants. It was moved by Keiper, seconded by Unangst, that the revised plan as outlined and marked by the Chairman be adopted — motion carried.”

In the bill of complaint plaintiff averred: That the refusal of defendant-authority to pay for the, installation of the requested extensions was “arbitrary, capricious, unlawful and discriminatory”; the defendant authority “has deprived plaintiff of its property without due process of law,” and “has unjustly enriched itself at the sole cost and expense of the plaintiff in the amount of $29,867.84”; and that defendant-authority “should be required to make restitution”. Plaintiff demanded the following equitable relief: “(a) ... that defendant. . . Authority be required to file an accurate account of all moneys received by it from the sale and distribution of all water supplied by said Authority to the occupants of each dwelling unit constructed by plaintiff . . .; (b) That upon such accounting, the defendant be required to pay over to the plaintiff all sums of money received by defendant from the users of defendant’s water service found to be in excess of the actual cost of serving said water to the users thereof; (c) That (the Court) enter judgment in favor of the plaintiff and against Hellertown Borough Authority in the amount of Twenty-nine Thousand Eight Hundred sixty-seven and 84/100 ($29,867.84) Dollars, together with interest thereon, from the first day of June, 1954; (d) That defendant . . .

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Related

Commonwealth, Department of Public Welfare v. Adams County
373 A.2d 143 (Commonwealth Court of Pennsylvania, 1977)
Doyle v. South Pittsburgh Water Co.
199 A.2d 875 (Supreme Court of Pennsylvania, 1964)
Durham Terrace, Inc. v. Hellertown Borough Authority
148 A.2d 899 (Supreme Court of Pennsylvania, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
16 Pa. D. & C.2d 231, 1957 Pa. Dist. & Cnty. Dec. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durham-terrace-inc-v-hellertown-borough-authority-pactcomplnortha-1957.