Gerhart v. Getz

28 Pa. D. & C. 291, 1936 Pa. Dist. & Cnty. Dec. LEXIS 260
CourtPennsylvania Court of Common Pleas, Lancaster County
DecidedOctober 23, 1936
DocketEquity Docket, no. 8, page 386
StatusPublished

This text of 28 Pa. D. & C. 291 (Gerhart v. Getz) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lancaster County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerhart v. Getz, 28 Pa. D. & C. 291, 1936 Pa. Dist. & Cnty. Dec. LEXIS 260 (Pa. Super. Ct. 1936).

Opinion

Schaeffer, J.,

— Plaintiffs filed a taxpayers’ bill in equity for an injunction to restrain the Borough of Ephrata from proceeding with the execution of a certain contract for the erection and construction of a certain addition to the borough light plant, and further to restrain the Borough of Ephrata from making any payment in connection therewith to the contractors, William H. Walters & Sons. Subsequently, an amended bill in equity was filed to include William H. Walters & Sons as codefendants, as per order of court. Answers were filed thereto by the defendants. The preliminary injunction-was granted on July 29,1936, and on August 3,1936, [292]*292it was continued with leave to defendants to move to dissolve same at any time. The matter came on for hearing at the regular equity term of court on September 28,1936, when testimony was taken.

Findings of fact

1. Plaintiffs are citizens, residents and taxpayers of the Borough of Ephrata.

2. Defendants are the councilmen of the Borough of Ephrata, the burgess thereof, and a partnership of building contractors with whom the borough contracted for the erection of an addition to its municipal electric plant.

3. Said borough is engaged in the manufacture of electricity for the use of its inhabitants, and owns and operates an electric light plant for that purpose.

4. On June 1,1936, at a regular meeting of the borough council, ordinance no. 367 was enacted, providing, inter alia:

“That an addition be erected and constructed to the municipal light plant of the Borough of Ephrata, Pa. Said addition shall consist of a brick and steel building located at northwest side of present generator room and of the approximate dimensions of 21 feet, 8 inches by 52 feet, 8 inches by 19 feet, 8% inches to eaves, basement same dimensions, 12 feet 2% inches deep. That the contract for said building addition shall be let by Council in such manner as Council may direct by motion.”

5. Said ordinance was signed by the president of council and approved on June 1, 1936.

6. At the same meeting of council, on June 1,1936, the borough council passed a motion accepting the proposition of defendants William H. Walters & Sons, for the erection of said building addition at the price of $9,056.

7. The same ordinance provided, in sections 1 and 2, also for the purchase from Josiah H. Smith, of Philadelphia, Pa., of a General Electric turbine and generator and the installation thereof. Said Josiah H. Smith is not a party to this proceeding.

[293]*2938. At a special meeting of the borough council held on June 22, 1936, the borough council passed a motion dispensing with competitive bidding on said building addition “due to necessary emergency”. A motion was also passed at said special meeting approving the contract for its erection with William H. Walters & Sons, one of defendants, at a contract price of $9,000, and authorizing the execution and delivery of the contract by the burgess and secretary.

9. On July 1, 1936, the burgess and secretary and William H. Walters & Sons executed the written contract for the erection of said building addition to the municipal electric plant.

10. No bids were asked on the erection of the addition and no notice was given by the borough council, by publication or otherwise, of the pendency of the contract and that bids therefor would be accepted, no bids were accepted, and the contract was not let to the lowest responsible bidder, but was let to defendants William H. Walters & Sons without competitive bidding.

11. Pursuant to said written contract, William H. Walters & Sons began work by making certain rock excavation with men and machinery, expending for same prior to the granting of the preliminary injunction on July 29, 1936, about $2,000.

12. No heating, plumbing, ventilating and electrical work was provided for in either the specifications or contract.

Discussion

The controlling question at issue in this case is a legal one, and it is based upon a fact which is not in dispute. Can a borough in Pennsylvania legally enter into a contract for the erection of a building, which is an addition to its municipal light plant, to house a turbo-generator purchased therefor, without first advertising and receiving competitive bids for such building?

[294]*294This involves the interpretation and construction of section 1202, clause LIII, of The General Borough Act of May 4,1927, P. L. 519, as amended by the Act of May 8, 1929, P. L. 1636, sec. 7, and the Act of June 9,1931, P. L. 386, sec. 13, which is as follows:

“To make contracts or purchases in connection with proper legal requirements of the borough: Provided, That all contracts or purchases, other than purchases for water, electric light, and other public works of the borough, or for improvement made by its employes, or where the State or county is a party with the borough to a street improvement made by any borough, involving an expenditure of over five hundred dollars ($500), shall be in writing, and shall not be made except with and from the lowest responsible bidder, after due public notice by the secretary, published once a week for three weeks at intervals of seven days in one newspaper published in such borough, and, if no newspaper is published therein, then by publication in one newspaper printed in the county and circulating generally in the borough; and such bids shall be received, opened, and read in open meeting of council, at a time fixed by such notice, and not earlier than twenty-one days after the first publication thereof.

“In case of an emergency, so declared by the affirmative vote of two-thirds of all the members of said council, or a majority of council plus one when the number composing such council is less than nine, the notice shall be published at least one week prior to the time fixed therein for opening bids.”

Defendants rely upon the exception set forth in the above cited statute, alleging that the erection of an additional building in connection with the municipal electric plant is a purchase for its electric light works. The General Borough Act expressly provides that all contracts or purchases, except those referred to, involving an expenditure of over $500, shall be made, after due advertisement, with the lowest responsible bidder. This is a salutary [295]*295provision of the statutory law and numerous acts have been passed by the legislature to the same effect with regard to different municipalities. As stated by Judge Landis in Braungart et al. v. City of Lancaster et al., 41 Lanc. L. R. 541, quoting from Harris v. Philadelphia et al., 283 Pa. 496, 503:

“The legislative and municipal intent, under our statutes and ordinances passed to carry them into effect, are that there should be open and honest competition in bidding, so that fair prices should be procured”.

It has been uniformly held in many decisions in this State that the statute providing a formal mode of creating municipal contracts is mandatory and that a contract failing to meet the requirements thereof is not enforceable against a municipality: See Nuebling et al., to use, v. Topton Borough, 323 Pa. 154, and the cases cited therein.

Plaintiffs cite Tragesser v. Cooper et al., 313 Pa. 10 (1933). It is not decisive as to the question of law involved in the case at bar.

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Related

Harris v. Philadelphia
129 A. 460 (Supreme Court of Pennsylvania, 1925)
Tragesser v. Cooper
169 A. 376 (Supreme Court of Pennsylvania, 1933)
Commonwealth v. Wark Co.
151 A. 786 (Supreme Court of Pennsylvania, 1930)
Nuebling to Use v. Topton Boro.
185 A. 725 (Supreme Court of Pennsylvania, 1936)
Silsby Mfg. Co. v. Allentown
26 A. 646 (Supreme Court of Pennsylvania, 1893)

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Bluebook (online)
28 Pa. D. & C. 291, 1936 Pa. Dist. & Cnty. Dec. LEXIS 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerhart-v-getz-pactcompllancas-1936.