Keller & Voelker, Inc. v. Kellett Aircraft Corp.

159 A.2d 561, 192 Pa. Super. 25
CourtSuperior Court of Pennsylvania
DecidedApril 13, 1960
DocketAppeal, No. 445
StatusPublished
Cited by1 cases

This text of 159 A.2d 561 (Keller & Voelker, Inc. v. Kellett Aircraft Corp.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keller & Voelker, Inc. v. Kellett Aircraft Corp., 159 A.2d 561, 192 Pa. Super. 25 (Pa. Ct. App. 1960).

Opinion

Opinion by

Ervin, J.,

This is an action in assumpsit by plaintiff, Keller & Voelker, Incorporated, to recover from the defendant, Kellett Aircraft Corporation, fees for the preparation of certain preliminary plans and final plans and specifications and the cost of certain test borings, relating to a factory and office building proposed to be erected by the City of Philadelphia and the Philadelphia Airports Improvement Authority at the North Philadelphia Airport and to be occupied by defendant as a lessee of the City. The case was tried before President Judge Francis Shunk Brown, Jr., sitting without a jury. The plaintiff’s claim was for $19,415.00. The court below, by a court in banc, after dismissing plaintiff’s exceptions, entered judgment for the plaintiff against the defendant in the sum of $1,000.00. The plaintiff appealed. The facts are as follows:

On June 6, 1955 plaintiff and defendant, through their representatives, discussed the possibility of having a new manufacturing plant constructed for defendant. Plaintiff was informed by defendant about its financial situation, and that it would be essential that financing be obtained. Subsequently, defendant approached The Philadelphia Airports Improvement Authority in connection with the erection of the plant at the Northeast Airport in Philadelphia and the undertaking of the construction by the Authority. It was necessary that drawings be made in order to inform the Authority of the requirements that defendant anticipated. As a result of discussions between the parties, an agreement was made by them as set forth in a letter written by plaintiff and approved by defendant. That letter, dated June 30,1955, stated that “We . . . are proceeding with preliminary studies even though our [plaintiff’s] contract with the City of Philadelphia will require the normal two or three weeks before it is finalized.

[28]*28“Although, we anticipate no difficulties or delays in the signing of the contract, we feel that as a matter of good business practice we should be partially protected for the work we are now doing should the City decide not to proceed, which is most unlikely.
“We therefore suggest that should such an unlikely situation develop, you will then compensate us for work that we have done at the rate of one-half the normal per diem fee . . ., but not to exceed $1000. in any event.
“If this is agreeable to you, we would appreciate your initialing one copy of this letter and returning it to us.”

On July 5, 1955 Mr. Keller, plaintiffs president, sent a letter to Mr. Inwood, in his capacity as executive director of the Authority, wherein plaintiff proposed to “supply architectural and engineering services” to the Authority for a fee of and after a meeting with Mr. In wood attended by him and by Mr. Yoelker at which Mr. Inwood stated that 6% was the largest fee acceptable to the Authority, Mr. Keller wrote Mr. Inwood again, reducing the fee to the Authority to the permissible maximum of 6%. Thereafter, on a date not definitely established, plaintiff executed and delivered to the Authority a formal contract in which it agreed to render “to the Authority all of the architectural and engineering services necessary or proper to the construction of . . .” the proposed plant for a fee of 6% of the cost of construction. This agreement was never signed by the Authority. The plans and specifications prepared by plaintiff carried the notation “Contract No. AANE-102”, which was the Authority’s contract number, and the specifications expressly stated on their face that they had been “Prepared for Philadelphia Airports Improvement Authority, Louis R. In-wood, Executive Director.”

On September 19, 1955 plaintiff wrote to defendant that “The moment you sign the lease-arrangement with [29]*29the Philadelphia Airport Improvement Authority we will go forward with the design and construction.” On October 4, 1955, plaintiff wrote to defendant that “We understand that you desire to limit any possible cancellation fees for engineering work to $5000.00. Sometime before this amount of engineering has been done we will have several reputable builders give their tentative estimates based on our preliminary drawings and specifications.”

On October 5, 1955 a letter was written by the Chairman of The Philadelphia Airports Improvement Authority to plaintiff, which stated that “This is to advise you that The Philadelphia Airports Improvement Authority cannot legally enter into an agreement with your firm for the plans and specifications for the Kellett Aircraft Corporation building until the contract between the Authority and the City has been ratified by the Council.

“I personally foresee no serious difficulties in having this done within a reasonable length of time.
“The Authority has discussed the matter and has determined through a vote of its membership to undertake the erection of a building for the Kellett Aircraft Corporation. I regret that I cannot contract for your services now, but if you desire to proceed with the plans and specifications at your own risk, I can assure you that if the contract is ratified by the Council I will be very happy to enter into an architectural contract with you if it continues in its present form.”

On October 11, 1955 defendant’s president wrote plaintiff that “I have your letter of October 4, 1955, in the above matter, but find that it does not confirm my understanding of our discussions on the subject of the limitation of Kellett’s liability for the fees of your firm if the contracts are not let for the construction of our proposed plant at Northeast Airport.

[30]*30“As you know, the proposed agreement between Kellett and the City provides that if Kellett does not approve construction contracts that agreement may be terminated, in which event Kellett is required to reimburse the City for the amount paid your firm for services by The Philadelphia Airports Improvements Authority.” That letter goes on to state that defendant was proceeding on the assurance by plaintiff as to the maximum construction cost and completion date of the proposed building, and that if those requirements were not met, defendant would be forced to disapprove the proposed construction contracts and cancel the agreement with the City. It further says that the agreement with the City provides that defendant is to approve the proposed service contract between the Authority and plaintiff, and since the Authority is unwilling to limit the amount of compensation in the event that contracts are not let, defendant would be willing to approve a contract between plaintiff and the Authority which does not contain a limitation, if plaintiff would agree with defendant to certain conditions. These conditions were the performance of all services called for by the proposed contract between plaintiff and the Authority, and that in the event that defendant does not approve the construction contracts, and the agreement between defendant and the City is terminated, plaintiff “will limit its claims to be compensated by Kellett, the City or by The Philadelphia Airports Improvement Authority to the total sum of $5000.00” plus the cost of borings and other preparatory activities.

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432 F. Supp. 869 (E.D. Pennsylvania, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
159 A.2d 561, 192 Pa. Super. 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-voelker-inc-v-kellett-aircraft-corp-pasuperct-1960.