Hornberger v. Commonwealth Security Systems Corp.

42 Pa. D. & C.4th 531, 1998 Pa. Dist. & Cnty. Dec. LEXIS 77
CourtPennsylvania Court of Common Pleas, Lancaster County
DecidedJune 10, 1998
Docketno. 3050-1996
StatusPublished
Cited by2 cases

This text of 42 Pa. D. & C.4th 531 (Hornberger v. Commonwealth Security Systems Corp.) 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
Hornberger v. Commonwealth Security Systems Corp., 42 Pa. D. & C.4th 531, 1998 Pa. Dist. & Cnty. Dec. LEXIS 77 (Pa. Super. Ct. 1998).

Opinion

STENGEL, J.,

This is a subrogation action and a direct action brought by Erie Insurance Co. and its insureds, James and Suzanne Homberger, against Commonwealth Security Systems arising out of a fire which occurred at plaintiffs’ residence. In July 1994, Commonwealth installed a burglar and fire alarm system at plaintiffs’ home. On August 5, 1994, a fire occurred at plaintiffs’ home which caused fire and water damage. Commonwealth’s central monitoring system did not receive an alarm signal despite the fire. Erie paid a claim to plaintiffs for the property damage and by way of subrogation now seeks to recover these insurance proceeds from Commonwealth. In addition, plaintiffs seek to recover from Commonwealth damages exceeding their insurance coverage. Plaintiffs have alleged eight counts in their complaint: negligence; products liability; breach of warranty; breach of contract; fraud; gross, willful and wanton misconduct; negligent infliction of emotional distress; and intentional infliction of emotional distress.

Commonwealth is seeking judgment on the pleadings and/or summary judgment based on various limitation of action provisions in its contract with plaintiffs. Specifically, Commonwealth seeks enforcement of a one-year contractual limitation period. Under section 25 of the contract, plaintiffs agreed that actions against Commonwealth must be commenced within one year after the date the claim arose. Plaintiffs commenced this suit one year and 11 months after the fire.

Alternatively, Commonwealth asserts a contractual limitation on damages and/or waiver of subrogation. Section 3 of the contract limits Commonwealth’s liability for all loss or damage, including property damage, resulting from negligence (including gross negligence) [533]*533or performance or nonperformance of obligations under the contract. Further, section 6 of the contract contains a waiver of subrogation provision where the parties agreed to shift the risk of loss to plaintiffs’ insurer, Erie.

A motion for judgment on the pleadings may be made “[ajfter the relevant pleadings are closed, but within such time as not to unreasonably delay the trial — ” Pa.R.C.P. 1034(a). Judgment on the pleadings should be granted where the pleadings demonstrate that no genuine issue of fact exists, and the moving party is entitled to judgment as a matter of law. Vetter v. Fun Footwear Co., 447 Pa. Super. 84, 668 A.2d 529 (1995). In ruling on a motion for judgment on the pleadings, a court must accept as true all well-pleaded facts of the party against whom the motion is made, while considering against it only those facts which it specifically admits. Shirley by Shirley v. Javan, 454 Pa. Super. 131, 684 A.2d 1088 (1996). In conducting its inquiry, the court should confine itself to the pleadings themselves and any relevant documents or exhibits properly attached to them. Hammerstein v. Lindsay, 440 Pa. Super. 350, 655 A.2d 597 (1995).

The fire at plaintiffs’ residence occurred on August 5, 1994. This action was commenced by the filing of a complaint on June 24,1996. Plaintiffs’ complaint pleads the existence of the contract at paragraph 4. Commonwealth filed its answer and new matter to the complaint on August 20, 1996. The answer admits the existence of the contract at paragraph 4, pleads limitation of liability at paragraph 76, pleads the one-year contractual limitation period at paragraph 77, and pleads the waiver of subro-gation provision at paragraph 75. On January 13, 1997, plaintiffs filed a reply to the new matter. The pleadings are now closed and this motion for judgment on the pleadings is ripe for disposition.

[534]*534I. ONE-YEAR CONTRACTUAL LIMITATION PROVISION

Initially, Commonwealth contends that plaintiffs agreed that they could not file a civil action more than one year after the date the claim arose. Specifically, paragraph 25 of the contract states:

“All claims, actions or proceedings, legal or equitable, against company must be commenced in court within one year after the cause of action has accrued or the act, omission or event occurred from which the claim, action or proceeding arises, whichever is earlier, without judicial extension of time, or said claim, action or proceeding is barred, time being of the essence of this paragraph.”

It is well settled in Pennsylvania that a limitation on the time for bringing suit under a contract is a contractual undertaking between the parties to the contract which is both valid and reasonable. See General State Authority v. Planet Insurance Co., 464 Pa. 162, 165-66, 346 A.2d 265, 267 (1975) (judgment on the pleadings in favor of defendant affirmed where suit was not commenced within the one-year contractual limitation period); Lardas v. Underwriters Insurance Co., 426 Pa. 47, 50-51, 231 A.2d 740, 741-42 (1967) (judgment in favor of defendant affirmed where plaintiff failed to commence action within one-year period established by contract). See also, Toledo v. State Farm Fire & Casualty Co., 810 F. Supp. 156 (E.D. Pa. 1992) (applying Pennsylvania law) (motion for summary judgment granted where suit was not brought within one-year contractual limitation period); Satchell v. Insurance Placement Facility of Pennsylvania, 241 Pa. Super. 287, 294, 361 A.2d 375, 378 (1976) (trial court’s order sustaining demurrer affirmed where [535]*535plaintiff did not bring suit within one-year contractual limitation period).

Additionally, Pennsylvania’s statute governing limitation of time for commencement of actions also authorizes modification of the statutory limitation period where “a shorter time which is not manifestly unreasonable is prescribed by written agreement.” 42 Pa.C.S. §5501.

There is no dispute that plaintiffs instituted this suit beyond the contract’s limitation period.

II. LIMITATION OF LIABILITY PROVISION

Alternatively, Commonwealth contends that several of plaintiffs’ claims are barred by the limitation of liability provision of the contract. Section 3 of the contract, limiting the damages recoverable against Commonwealth, provides as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
42 Pa. D. & C.4th 531, 1998 Pa. Dist. & Cnty. Dec. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hornberger-v-commonwealth-security-systems-corp-pactcompllancas-1998.