In re Metropolitan Edison Co.

54 Pa. D. & C. 369, 1944 Pa. Dist. & Cnty. Dec. LEXIS 5
CourtPennsylvania Court of Common Pleas, Berks County
DecidedJanuary 4, 1944
Docketno. 134
StatusPublished

This text of 54 Pa. D. & C. 369 (In re Metropolitan Edison Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Metropolitan Edison Co., 54 Pa. D. & C. 369, 1944 Pa. Dist. & Cnty. Dec. LEXIS 5 (Pa. Super. Ct. 1944).

Opinion

Shanaman, J.,

The Attorney General of the Commonwealth of Pennsylvania, acting pursuant to the Act of June 25, 1937, P. L. 2063, as amended, 27 PS §§434 to 447, petitioned for a rule on Metropolitan Edison Company, a corporation, to pay over certain funds in its hands to the Commonwealth. The Metropolitan Edison Company answered, admitting the possession of certain moneys, and challenging the validity of the statute under which petitioner acted. The moneys represent customers’ advances or deposits placed by customers with respondent as security for payment of bills for electric or gas service furnished by the company to said customers. Respondent contends that the Act of June 25,1937, P. L. 2063, as attempted to be applied in this proceeding, is unconstitutional, for two reasons, both based on the language of its title, which reads as follows:

“An act 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, proceeds of policies of insurance, stock and customers deposits held by certain limited partnerships and unincorporated associations, joint-stock associations, companies and corporations doing [371]*371business under the laws of this commonwealth; declaring the legislative intent with respect to such payments; requiring reports of such money and property by, and imposing other duties upon, such partnerships, associations, and corporations; conferring powers and imposing duties on certain State officers, boards, and departments; providing for jurisdiction of courts, and for proceedings for the recovery of such moneys and property by the Attorney General at the suggestion of the Department of Revenue; providing for refunds of such moneys and property; and prescribing penalties.”

It is contended, first, that since the title indicates that the act creates a system for payment to the State without escheat, it fails to give notice that section 8 of the act provides a system of escheat, and therefore violates article III, sec. 3, of the Constitution of Pennsylvania, which requires that the title of an act of assembly shall clearly express the subject of the act; secondly, that since the title refers to assets “subject to escheat under existing law”, the act is unconstitutional when attempted to be applied to property not subject to escheat under existing law. It is contended that the deposits in question were not subject to escheat under existing law, unless the owner is unknown, and that petitioner fails to aver such fact and in fact admits that the owners of the several deposits have been ascertained.

The question involved has already been adjudicated in the Counties of Dauphin: In re Harrisburg Bridge Company, 38 D. & C. 657; In re The Harrisburg Gas Company, 38 D. & C. 611; Philadelphia: In re Philadelphia Electric Company et al., 39 D. & C. 53; and Lehigh: Pennsylvania Power & Light Company case, 2 Sept. Sessions, 1941, C. P. Lehigh Co., opinion of Henninger, J., dated July 19, 1943. The Dauphin County court held the title objectionable, but the Philadelphia and Lehigh County courts have sustained the legislation. Although the question is not without dif[372]*372ficulty, we are of opinion that the respondent’s objections, founded on the alleged insufficiency of the title to the Act of 1937, must be overruled. It is true that section 8 of the act does provide for an escheat of certain moneys or property. Section 9 provides the procedure for payment of such moneys or property to the State Treasury without escheat. In the present case the Attorney General has proceeded under section 9, and not under the escheat provisions of section 8. If the escheat provisions of section 8 have not been clearly expressed in the title of the act, and even if it were necessary to hold section 8 for that reason unconstitutional, it does not follow that the remainder of the statute must fall. Section 12 of the act provides that if any part or section of it be held unconstitutional, the remaining provisions of the act shall be given full force and effect. Such a provision for the severance of unconstitutional and constitutional parts of an act, has been approved in the cases of N. R. Bagley Co., Inc., v. Cameron, 282 Pa. 84, and Rutenberg et al. v. Philadelphia et al., 329 Pa. 26. There can be no difficulty in sustaining the statute with section 8 eliminated, were it necessary to conclude that that section is unconstitutional.

Respondent’s remaining contention goes to the meaning of the words, “subject to escheat under existing law”. Section 3 of the act, par. 2, provides as follows:

“Every company shall make a report of any and all customers, advances, tolls or deposits held by it, and under the terms of the deposit agreement due and owing to the person or company depositing the same and unclaimed by said person or company for six (6) or more successive years next preceding the first day of said month.”

A sim'lar period of time during which no claim has been made for the property is in every case mentioned in section 3, and is the essential element upon which the right of the State to collect the asset depends. Section 9 makes provisions for such a petition as that brought in [373]*373the present case, to bring into the State Treasury “any items of money or property required to be reported under the provisions of this act”. It is important to bear in mind that the statute is not primarily an escheat act. On the contrary, it lays down a preliminary and alternative procedure, short of escheat. Therefore, the conception that the commonwealth, when petitioning under section 9, must aver facts which, if true, exclude all claimants but the commonwealth is mistaken. The purpose of the act is to provide a method whereby the commonwealth may without escheat ascertain the existence of property so long unclaimed as to be liable to become lost to the owner, may identify such property by compulsory reports, may receive it into the State Treasury, and hold it not merely for the benefit of the commonwealth but also for the owner. The interest of a person who has forgotten or has inadvertently failed to collect a deposit for such a length of time that the statute of limitation has prima facie run against him is subserved and the position of such owner is directly bettered, by section 3 of the act, requiring reports by the company of such items, and by section 5 requiring the commonwealth to notify such owner of his interest. Such advantage is also inferable not only from the ease with which the payments of preliminary deposits may be forgotten, but from the fact that respondent in its answer avers that the list of interested parties, attached to the petition, has been reduced by the company’s payments to such parties. Furthermore, the company might conceivably be entitled to take advantage of the bar of the statute of limitations if it chose to plead it against a depositor; but the Commonwealth, under section 10 of the Act of 1937, yields up such defense by its consent to refund the deposit to the true owner upon proper demand and proof. While the mere running of the statute of limitations against a claim and the consequent erection of a legal bar to its recovery does not indicate that the owner is dead without [374]

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Related

Cunnius v. Reading School District
198 U.S. 458 (Supreme Court, 1905)
Provident Institution for Savings v. Malone
221 U.S. 660 (Supreme Court, 1911)
Bagley Co., Inc. v. Cameron
127 A. 311 (Supreme Court of Pennsylvania, 1924)
Rutenberg v. Philadelphia
196 A. 73 (Supreme Court of Pennsylvania, 1937)
Cunnius v. Reading School District
56 A. 16 (Supreme Court of Pennsylvania, 1903)
Commonwealth v. Dollar Savings Bank
102 A. 569 (Supreme Court of Pennsylvania, 1917)
Germantown Trust Co. v. Powell
108 A. 441 (Supreme Court of Pennsylvania, 1919)

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Bluebook (online)
54 Pa. D. & C. 369, 1944 Pa. Dist. & Cnty. Dec. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-metropolitan-edison-co-pactcomplberks-1944.