Muschlitz Excavating, Inc. v. LTS Dev., LLC

20 Pa. D. & C.5th 217
CourtPennsylvania Court of Common Pleas, Monroe County
DecidedNovember 17, 2010
Docketno. 7571 CIVIL 2010
StatusPublished

This text of 20 Pa. D. & C.5th 217 (Muschlitz Excavating, Inc. v. LTS Dev., LLC) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Monroe County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Muschlitz Excavating, Inc. v. LTS Dev., LLC, 20 Pa. D. & C.5th 217 (Pa. Super. Ct. 2010).

Opinion

MILLER, J„

In May of 2008, Muschlitz Excavating, Inc. (“Muschlitz”) entered into an agreement to perform site work for LTS Development, Inc. (“LTS”) on a property known as Water Gap Preserve at Hidden Lake, in Middle Smithfield Township, Monroe County, Pennsylvania. The contract signed by LTS, as owner, and Muschlitz, as contractor, incorporated American Institute of Architects Document A201-1997, General Conditions of Contract for Construction (“AIA Document”) by reference. The contract also named the [219]*219engineer and surveyor associated with the project, but did not identify an architect for the site work.

On August 12, 2010, Muschlitz filed a complaint with the court, alleging that LTS owed over $330,000 in payments under the terms of the contract. LTS raised preliminary objections to the complaint on August 31, 2010, and argued that the arbitration provision of the AIA document dictated that the parties submit the dispute to arbitration. At the same time, Muschlitz filed a request for production of documents from LTS; LTS responded with a motion for protective order which sought to narrow the scope of Muschlitz’s request.

We consolidated these arguments and, after review of briefs submitted and oral arguments, we dismiss LTS’s preliminary objections to Muschlitz’s complaint but grant LTS’s motion for protective order without prejudice, and we direct Muschlitz to narrow the scope of its request for production of documents.

LTS filed preliminary objections on the basis that the arbitration provision in the AIA document, incorporated into the May 23, 2008 contract by reference, directs that the parties first try to resolve any disputes through mediation, and if not successful, through binding arbitration. Whether an agreement to arbitrate disputes exists is a question of law for the court to decide. Shadduck v. Christopher J. Kaclik, Inc., 713 A.2d 635 (Pa. Super. 1998); Emlenton AreaMun. Auth. v. Miles, 548 A.2d 623 (Pa. Super. 1988). Courts employ well-settled principles of contract interpretation to determine whether an agreement to arbitrate exists. Neuhard v. Travelers Ins. Co., 831 A.2d 602 (Pa. Super. [220]*2202003); Midomo Co., Inc. v. Presbyterian Housing Dev. Co., 739 A.2d 180 (Pa. Super. 1999). The fundamental rule when construing a contract is to ascertain and give effect to the intentions of the parties. Murphy v. Duquesne University of the Holy Ghost, 565 Pa. 571, 777 A.2d 418 (2001); Felte v. White, 451 Pa. 137, 302 A.2d 347 (1973). Under ordinary principles of contract interpretation, the agreement is to be construed against its drafter. Rusiski v. Pribonic, 511 Pa. 383, 515 A.2d 507 (1986); Village Beer and Beverage, Inc. v. Vernon D. Cox and Co., Inc., 475 A.2d 117 (Pa. Super. 1984).

LTS directs the court to various provisions within the AIA document and claims that these provisions require both parties submit their dispute to binding arbitration. All of the provisions cited in the AIA document, however, refer to an “architect,” and many of these clauses condition the rights and obligations of either party on the architect’s judgment as it relates to the underlying project. Under the AIA document the architect “will provide administration of the contract” and act “as a representative of the owner....’’See AIA document § 4.2. Section 4.4.1 of the AIA document states:

Claims...shall be referred initially to the architect for decision. An initial decision by the architect shall be required as a condition precedent to mediation, arbitration or litigation of all claims between the contractor and owner arising prior to the date final payment is due, unless 30 days have passed after the claim has been referred to the architect with no decision having been rendered by the architect.

[221]*221Section 4.6.1 provides that “[a]ny claim arising out of or related to the contract...shall, after decision by the architect or 30 days after submission of the claim to the architect, be subject to arbitration.” Furthermore, section 4.3.6 states, “[i]f the contractor believes additional cost is involved for reasons including...(4) failure of payment by the owner... claim shall be filed in accordance with this section 4.3.”

As owner of the property, LTS drafted the contract and incorporated the AIA document by reference. LTS never chose an architect to administer the contract, however, and we are compelled to construe the provisions in the AIA document against the drafter. See Rusiski, supra. The mediation and arbitration requirements, set forth in the AIA document, are inapposite and impossible to satisfy because LTS did not choose an architect to administer the contract. Muschlitz could not possibly refer their claim to the architect to satisfy the “condition precedent to mediation, arbitration or litigation of all claims between the contractor and owner,” as contemplated by the contract. The provisions in the contract that provide for resolution of disputes, therefore, do not apply to any disputes between LTS and Muschlitz under the May 2008 agreement because LTS did not assign an architect to the project, and the contract only contemplates dispute resolution mechanisms that involve an architect.

We find that the provisions for dispute resolution in the contract do not provide adequate channels for Muschlitz to seek redress, and Muschlitz may pursue their claim in this court.

LTS also filed a motion for protective order from [222]*222Muschlitz’s discovery requests.

Pennsylvania Rule of Civil Procedure 4012 provides:

Upon motion by a party or by the person from whom discovery or deposition is sought, and for good cause shown, the court may make any order which justice requires to protect a party or person from unreasonable annoyance, embarrassment, oppression, burden or expense, including...(5) that the scope of discovery should be limited.

Rule 4011 similarly states that “[n]o discovery or deposition shall be permitted which...(b) would cause unreasonable annoyance, embarrassment, oppression, burden or expense to the deponent or any person or party [or] (c) is beyond the scope of discovery as set forth in Rules 4003.1 through 4003.6....” Rule 4003.1 sets out the familiar scope of discovery, generally:

[A] party may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party, including the existence, description, nature, content, custody, condition and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of any discoverable matter.

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Related

Shadduck v. Christopher J. Kaclik, Inc.
713 A.2d 635 (Superior Court of Pennsylvania, 1998)
Midomo Co. v. Presbyterian Housing Development Co.
739 A.2d 180 (Superior Court of Pennsylvania, 1999)
Emlenton Area Municipal Authority v. Miles
548 A.2d 623 (Supreme Court of Pennsylvania, 1988)
Village Beer & Beverage, Inc. v. Vernon D. Cox & Co.
475 A.2d 117 (Supreme Court of Pennsylvania, 1984)
Neuhard v. Travelers Insurance
831 A.2d 602 (Superior Court of Pennsylvania, 2003)
Robert F. Felte, Inc. v. White
302 A.2d 347 (Supreme Court of Pennsylvania, 1973)
Murphy v. Duquesne University of Holy Ghost
777 A.2d 418 (Supreme Court of Pennsylvania, 2001)
Allegheny West Civic Council, Inc. v. City Council of Pittsburgh
484 A.2d 863 (Commonwealth Court of Pennsylvania, 1984)

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Bluebook (online)
20 Pa. D. & C.5th 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muschlitz-excavating-inc-v-lts-dev-llc-pactcomplmonroe-2010.