Mackintosh-Hemphill International Inc. v. Gulf & Western Inc.

25 Pa. D. & C.4th 108, 1995 Pa. Dist. & Cnty. Dec. LEXIS 150
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedMay 9, 1995
Docketno. GD88-8265
StatusPublished

This text of 25 Pa. D. & C.4th 108 (Mackintosh-Hemphill International Inc. v. Gulf & Western Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mackintosh-Hemphill International Inc. v. Gulf & Western Inc., 25 Pa. D. & C.4th 108, 1995 Pa. Dist. & Cnty. Dec. LEXIS 150 (Pa. Super. Ct. 1995).

Opinion

WETTICK, J,

Defendants have filed a petition for the entry of a judgment of non pros based on plaintiffs’ failure to proceed. The petition relies on the decision of the Supreme Court of Pennsylvania in Penn Piping Inc. v. Insurance Company of North America, 529 Pa. 350, 603 A.2d 1006 (1992), which held that a trial court may dismiss an action where (1) the plaintiff has shown a lack of due diligence by failing to proceed with reasonable promptitude; (2) there is no compelling reason for the delay; and (3) the delay has been for a period in excess of two years.1

Plaintiffs oppose the issuance of a rule on two grounds. They contend that the facts which are of record establish that plaintiffs have proceeded with due diligence, that plaintiffs have a compelling reason for the delay in docket activity, and that there has been no prejudice to defendants. Plaintiffs also contend that the record establishes that defendants have waived any right to the entry of a judgment of non pros through conduct taken after plaintiffs filed their complaint in this lawsuit.2

[111]*111This lawsuit was commenced through the filing of a writ of summons in this court on May 11, 1988. There was no further activity of record until plaintiffs filed their complaint in this action on November 29, 1993.3

Within 30 days of service of this complaint, defendants removed this action to the United States District Court for the Western District of Pennsylvania pursuant to 28 U.S.C. §§1441 and 1452. On December 27,1993, defendants filed in the federal court proceedings an answer to plaintiffs’ complaint in which they raised as an affirmative defense that the allegations of the complaint are barred by the doctrine of laches. On the same date, plaintiffs filed an answer and objection to defendants’ petition for removal.

Through a court order dated January 21, 1994, the federal court referred the action to the United States Bankruptcy Court for the Western District of Pennsylvania. Through a June 1, 1994 order of court, the reference to the bankruptcy court was withdrawn. After withdrawal of the reference, defendants promptly filed in the federal court a motion for dismissal of this action asserting, inter alia, that plaintiffs’ delay in prosecuting this action bars plaintiffs ’ recovery. On August 31,1994, the federal court ordered the action remanded to this court without ruling on defendants’ motion to dismiss.

On October 3, 1994, defendants filed an amended answer and new matter which met the requirements of the Pennsylvania Rules of Civil Procedure. This [112]*112amended answer included as new matter, “Fourth New Matter,” the following defense:

“Because of defendants’ inexcusable five-year delay in asserting these claims, the averments of the complaint are barred by the doctrine of laches.”

On the same date, defendants filed a motion for judgment on the pleadings and a memorandum of law in support of the motion which sought dismissal on the grounds of res judicata, collateral estoppel, the failure to sue within a limitations period established by contract, and the equitable doctrine of laches based on plaintiffs’ inexcusable delay in asserting their claims. On October 13,1994, plaintiffs filed a reply to defendants’ new matter which averred that laches does not apply to this action for the following reasons: laches is not applicable once a lawsuit has been commenced; defendants have failed to allege that the delay has caused any prejudice; and any delay is excusable because plaintiffs are in bankruptcy, the trustee in bankruptcy died following a lengthy illness, and plaintiffs were awaiting a clarification of the law.

On February 16,1995,1 filed a memorandum and order of court which denied defendants’ motion for judgment on the pleadings. I ruled against defendants on the merits as to their defenses of res judicata, collateral estoppel, and failure to timely file the lawsuit. With respect to the laches defense, I ruled that a request for dismissal for inactivity must be raised through a petition for the entry of a judgment of non pros.

On February 24, 1995, defendants filed the petition for entry of judgment of non pros that is the subject of this opinion and order of court.

[113]*1131 — 1

Initially, I consider plaintiffs’ contention that the record in this case establishes that defendants are not capable of meeting the requirements for the entry of a judgment of non pros — failure to proceed with reasonable promptitude; the absence of a compelling reason for the delay; and prejudice.

The delay on which defendants base their motion is the period in excess of five years from the filing of the writ (May 1988) to the filing of the complaint (November 1993).4 Plaintiffs contend that there has not been a lack of due diligence because they have actively engaged in discovery since the case was commenced. However, this is a disputed factual issue because there is nothing in the record showing that there has been any discovery in this case and defendants assert that plaintiffs have not taken any steps to prosecute this action.

Plaintiffs also contend that defendants cannot complain about any inactivity from the date that the lawsuit was commenced to the date on which the complaint was filed because defendants had another remedy— entering a rule on plaintiffs to file a complaint under Pa.R.C.P. 1037(a). However, this argument was rejected by the Pennsylvania Supreme Court in Gallagher v. Jewish Hospital Association of Philadelphia, 425 Pa. [114]*114112, 228 A.2d 732 (1967), where the court said that the purpose of Rule 1037 was to provide a procedure to the defendant to compel the filing of a complaint; Rule 1037 was not intended to restrict the ability of the court to exercise its inherent power to grant a judgment of non pros where the plaintiff fails to prosecute the action within a reasonable time. Also see Blackburn v. Sharlock, Repcheck, Engel and Mahler, supra. In addition, see the case law holding that dismissal through a petition for non pros filed by the defendant and dismissal based on a local rule of court promulgated pursuant to Pa.RJ.A. 1901 are alternative methods for dismissing inactive cases. Dorich v. DiBacco, 440 Pa. Super. 581, 656 A.2d 522 (1995); Gates v. Servicemaster Commercial Service, 428 Pa. Super. 568, 581 n.2, 631 A.2d 677, 683 n.2 (1993); Pine Township Water Company Inc. v. Felmont Oil Corporation, 425 Pa. Super. 473, 475-76 n.1, 625 A.2d 703, 704 n.1 (1993).

Furthermore, plaintiffs’ position is inconsistent with the public policy expressed in Penn Piping Inc. v. Insurance Company of North America, supra

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603 A.2d 1006 (Supreme Court of Pennsylvania, 1992)
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Bluebook (online)
25 Pa. D. & C.4th 108, 1995 Pa. Dist. & Cnty. Dec. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackintosh-hemphill-international-inc-v-gulf-western-inc-pactcomplallegh-1995.