General State Authority v. Yorkshire Insurance

37 Pa. D. & C.2d 660, 1965 Pa. Dist. & Cnty. Dec. LEXIS 302
CourtPennsylvania Court of Common Pleas, Cumberland County
DecidedMay 3, 1965
Docketno. 850
StatusPublished

This text of 37 Pa. D. & C.2d 660 (General State Authority v. Yorkshire Insurance) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Cumberland County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General State Authority v. Yorkshire Insurance, 37 Pa. D. & C.2d 660, 1965 Pa. Dist. & Cnty. Dec. LEXIS 302 (Pa. Super. Ct. 1965).

Opinion

Shughart, P.J.,

The above action involves a suit by the supplier to a subcontractor, for a building erected by the General State Authority, against the surety on the bond of the general contractor. In an opinion and order filed February 24, 1965, [661]*661preliminary objections to plaintiff’s complaint were overruled. On application of counsel for defendant, leave to reargue the matter was granted. It has been reargued and is again before the court for decision.

The General State Authority Act of March 31, 1949, P. L. 372, 71 PS §1707.11, provides that all suits against the sureties on performance bonds under the General State Authority shall be brought within one year from the time the cause of action accrued. The bond involved here provides, in substance, that the supplier of a subcontractor shall have no right of action upon the performance bond, unless such person shall have given written notice to the general contractor or his surety not later than 90 days from the date the last materials were furnished, setting forth the amount claimed and naming the party to whom the materials were furnished. Defendant contends that this provision is binding upon plaintiff and it modifies the statute of limitations provided in the General State Authority Act.

In the prior opinion and order, we held that this provision was not binding upon plaintiff in this case.

Section 11 of The General State Authority Act of March 31, 1949, P. L. 372, as amended, 71 PS §1707.11, provides, in substance, that any contract under the Authority shall be accompanied by a bond for the protection of those who furnish labor and material or rental equipment in such amount and subject to the same terms and conditions as recommended by The Administrative Code of April 9, 1929, P. L. 177, as amended, on contracts entered into by the Department of Property and Supplies for the erection of buildings.

As indicated in the prior opinion, section 2408(h) of The Administrative Code, 71 PS §638 (h), refers to the performance bonds that shall be required on contracts entered into by the Department of Property and Supplies of the Commonwealth. No reference is con[662]*662tained in this statute regarding the 90-day notice provision as contained in the bond in this case. A reargument was allowed because counsel for defendant now contends that the foregoing provision in The Administrative Code was amended by the Act of June 22, 1931, P. L. 881, 53 PS §1294. Section 2 of this act provides, inter alia, as follows:

“Whenever the Commonwealth of Pennsylvania, acting by or through any department or agency thereof, or any municipality therein, shall require any person . . . entering into a contract with such department, agency, or municipality for any public work or improvement, to execute and deliver to such department ... an additional bond, as required by law, conditioned for the payment of material furnished and labor supplied or performed in the prosecution of any such public work or improvement, then, in such event, every person . . . shall have the right to sue in assumpsit on said additional bond, in the name of the Commonwealth ...”

Section 3 of the act provides that:

“No such suit shall be commenced prior to ninety (90) days from the date upon which the said person . . . performed the last of the material or labor for which the said claim is made; and every such suit shall be commenced not later than one (1) year from the date of final settlement under the said contract with the Commonwealth, acting by or through its said department or agency, or with the said municipality.” (Italics supplied.)

Section 4 of the act provides:

“Any such person . . . who has no contractual relationship, express or implied, with the contractor furnishing the said additional bond, shall not have a right of action upon said additional bond, unless the said person . . . shall have given written notice to said contractor, or to his, their, or its surety, not later than [663]*663ninety (90) days from the date on which the said person . . . furnished, supplied, or performed the last of the material or labor for which the said claim is made, stating, with substantial accuracy, the amount claimed and the name of the party with whom the said person, co-partnership, association, or corporation contracted.” (Italics supplied.)

This statute makes no reference whatsoever to The Administrative Code; nor, in fact, does The Administrative Code, as amended, make any reference to this statute. Counsel contends, however, that this statutory provision, in effect, modifies and qualifies The Administrative Code and imposes upon it the 90-day notice provision contended for by defendant.

In the construction of any statute, it is incumbent upon the court to ascertain and effectuate the intention of the legislature. It is clear from sections 3 and 4 of the Act of 1931, supra, that the legislature provided for a one-year statute of limitations from the date of final settlement under the contract with the Commonwealth, provided that no suit shall be commenced prior to 90 days from the date upon which the last materials were supplied or work furnished. Further, no supplier to a subcontractor can sue on the bond unless he shall have given notice to the contractor or his surety of his claim within 90 days after he has furnished the materials or labor. It is plain that these provisions differ substantially from the limitation of action imposed by the General State Authority statute which fixes the one year within which to bring suit from the time when the cause of action arose. As indicated in the prior opinion, if the 90-day provision is effective, the one-year statute of limitations provided by The General State Authority Act is reduced to 90 days, unless notice is given. The General State Authority Act was passed in 1949, or some 18 years following the Act of 1931. The legislature is charged with knowledge of the provisions of the [664]*664Act of 1931. It is inconceivable that the legislature intended to incorporate the 90-day notice provision of the Act of 1931 and not to incorporate the provision respecting the time from which the one-year limitation ran. If the latter were adopted, it would be in direct conflict with the provisions of The General State Authority Act itself. If the legislature had intended to incorporate the provisions of this statute respecting limitations of actions into the 1949 General State Authority Act, it is clear that it could have, and undoubtedly would have, so provided. We cannot write into the act a provision they saw fit to omit.

The Administrative Code, in the section providing for performance bonds, contains no provision whatsoever limiting the cause of action on such bonds as to time or conditions precedent thereto. It provides for the ascertainment of the amount of such bonds, for the department that shall hold the bond and for the rights to maintain suit on such bonds. It would be ridiculous to assume that the legislature would set forth in clear language the period of limitation for actions under •The General State Authority Act and then intend to incorporate by reference a statute passed some 18 years before that has a completely inconsistent provision respecting limitation of action.

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Bluebook (online)
37 Pa. D. & C.2d 660, 1965 Pa. Dist. & Cnty. Dec. LEXIS 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-state-authority-v-yorkshire-insurance-pactcomplcumber-1965.