In re Harrisburg Gas Co.

38 Pa. D. & C. 611, 1940 Pa. Dist. & Cnty. Dec. LEXIS 355
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedMarch 11, 1940
Docketno. 18
StatusPublished

This text of 38 Pa. D. & C. 611 (In re Harrisburg Gas Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Harrisburg Gas Co., 38 Pa. D. & C. 611, 1940 Pa. Dist. & Cnty. Dec. LEXIS 355 (Pa. Super. Ct. 1940).

Opinion

Hargest, P. J.,

— The Attorney General presented his petition pursuant to the Act of June 25, 1937, P. L. 2063, 27 PS §434 et seq., praying for an order for the payment of certain unclaimed moneys into the State Treasury without escheat.

The petition averred that the moneys wére escheatable “in that they consist of dividends or profits, debts and interest on debts, customers’ advances, tolls or deposits, which have remained unpaid and unclaimed for six or more successive years.”

Two answers were filed raising important legal questions, and some testimony was taken.

It appears that The Harrisburg Gas Company and its predecessor, the United Gas Improvement Company, required deposits from its customers to secure payment to [613]*613the companies for subsequent service. The form of the receipt used in 1890 provided:

“Should said.notify the company to discontinue the supply, and pay all bills to date of discontinuance, said amount, with interest at the rate of 6 percent per annum to that date, shall be returned to him. If at any time any bill shall not be paid within ten days after presentation, said deposit may be applied on account thereof by the company.”

The form used in 1930 was, in effect, the same, except 15 days were provided instead of 10 days before the application of the deposit.

The Act of 1937, supra, in question, provides in its title:

“Providing for the payment into the State Treasury, without escheat, of certain moneys and property subject to escheat under existing law, namely unclaimed dividends and profits, certain debts, and interest on certain debts . . . customers deposits . .. .”.

Section 1 contains a legislative declaration of intention. The statute requires reports in the month of January of each year to the Department of Revenue of all unclaimed dividends, debts, interest, and deposits, with the names of the persons to whom they are owing or who have deposited the same, where the same have been due or not demanded, as the case may be, for a period of six or more years. It provides for notice by the department to owners or claimants. Section 8 provides a procedure for escheat and contains the following:

“If the person legally entitled to such property or his legal representatives shall appear within the time limited by the court and establish his right to recover said moneys or property from the company, but for the provisions of this act, and if this right shall not be barred by the statute of limitations or presumption of payment, a decree shall be made for the payment of said moneys or other property to said person, after paying his proportionate part of the costs of the cause and of said advertising . . .”.

[614]*614Section 9 provides for the proceeding which was taken in the instant case, upon the petition of the Attorney General, for the payment into the State Treasury of the moneys without escheat.

Section 10 provides for an application by any claimant to the Board of Finance and Revenue for a refund “upon his making proof of his ownership or right of possession to the satisfaction of the board.” It also provides:

“(c) Any claimant for any such refund of money or for the return of property may appeal by petition to the court of common pleas of Dauphin County from an adverse decision of the Board of Finance and Revenue, which court shall thereupon hear such testimony as may be offered in support of the claim and determine whether or not the claimant is entitled to any refund of money or return of property, and if so, the amount thereof or the nature or character thereof. ... No such appeal shall be entertained, however, unless the claimant shall file with his petition an affidavit that all proof, which he proposes to offer in support of the claim, had been presented to the Board of Finance and Revenue before that board acted adversely upon his claim.”

Section 12 is a severability clause. Section 13 provides:

“Bar of Statutes of Limitations. — The bar of statutes of limitation and presumptions of payment shall not affect the duty of making reports and payments to the Commonwealth under the provisions of this act.”

A number of important and interesting questions have been raised:

1. That the title to the act is unconstitutional.

2. That no act of assembly or the common law made the items set forth in the Attorney General’s petition subject to escheat at the time of the passage of the Act of 1937.

3. Did a trust relation arise between The Harrisburg Gas Company and its customer when the contract for service came to an end?

[615]*6154. Does the statute of limitations prevent the proceeding in the instant case?

5. Does the act violate sections 1, 9, 10, and 11 of article I of the Constitution of Pennsylvania, or the fourteenth amendment to the Constitution of the United States, in that it denies due process of law?

6. Does the statute violate article III, sec. 7, of the Constitution of Pennsylvania, which provides the “General Assembly shall not pass any local or special law . . . providing or changing methods for the collection of debts”?

7. Does the statute violate article I, sec. 17, of the Constitution of Pennsylvania, in that it impairs the obligation of contracts?

8. Does the statute violate article III, sec. 21, of the Constitution of Pennsylvania, providing that no act shall prescribe any limitations of time for the bringing of suits other than those fixed by general laws?

Discussion

1. In an opinion filed this day in the case of In re Harrisburg Bridge Company, 38 D. & C. 657 (hereinafter referred to as the bridge company case), we have discussed the question of the title to this act and have held that the title clearly limits the act in its operation to “certain moneys and property subject to escheat under existing law”, and to the extent that the act is attempted to be used to operate upon any money or property which was not subject to escheat at the time of its passage, such attempted use would be unconstitutional. It is not necessary to repeat what is said upon that subject.

2. In the bridge company case, above referred to, we have discussed the proposition that escheats in Pennsylvania do not rest upon the common law but upon statutory provision.

It is necessary to consider what property was declared to be escheatable when the Act of 1937 was passed. The first statute upon the subject of escheats is the Act of [616]*616September 29, 1787, 2 Sm. L. 425, 27 PS §49, which, as declared in Commonwealth v. Naile, 88 Pa. 429, 435, “remains effective and unimpaired, except as it has been modified by later legislation.”

That act is entitled “An Act to declare and regulate escheats”. It recites that “no regular course of proceeding hath been heretofore provided in Pennsylvania . . . bringing into the public treasury, the value of the real and personal property of such persons, who ... die intestate, and without any known kindred . . .”. Section 2 of the act provides:

“. . . if any person, who, at the time of his or her death, was seized or possessed of any real or personal estate within this commonwealth, die intestate, without heirs or any known kindred, such estate shall escheat to the commonwealth . . .”.

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Bluebook (online)
38 Pa. D. & C. 611, 1940 Pa. Dist. & Cnty. Dec. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-harrisburg-gas-co-pactcompldauphi-1940.