Pennsylvania Turnpike Commission v. Girard Construction Co.

38 Pa. D. & C. 1, 1940 Pa. Dist. & Cnty. Dec. LEXIS 367
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedFebruary 24, 1940
Docketno. 238
StatusPublished

This text of 38 Pa. D. & C. 1 (Pennsylvania Turnpike Commission v. Girard Construction Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Turnpike Commission v. Girard Construction Co., 38 Pa. D. & C. 1, 1940 Pa. Dist. & Cnty. Dec. LEXIS 367 (Pa. Super. Ct. 1940).

Opinion

Smith, P. J.,

— This matter comes before us on a rule for judgment for want of a sufficient affidavit of defense filed by the use-plaintiff against the Fidelity & Deposit Company, surety on the bond of the contractor. The Girard Construction Company, Inc., on December 21, 1938, contracted with the Pennsylvania Turnpike Commission to complete a section of highway according to plans and specifications for the sum of $444,758.98. On the same day the Fidelity & Deposit Company, a corporation of the State of Maryland and engaged in the business of furnishing surety bonds in consideration of a premium paid it, executed and delivered its bond to the Pennsylvania Turnpike Commission in the sum of $444,758.98, conditioned that the Girard Construction Company, Inc., should, inter alia, satisfy all claims and demands incurred in and for the same in the performance of said contract. Contemporaneously with the giving of this bond, the said Fidelity & Deposit Company, in consideration of a premium paid, executed and delivered to the Pennsylvania Turnpike Commission another bond in the sum of ,$222,379.49 con[3]*3ditioned, inter alia, for the payment of all persons who performed labor, rendered service, and furnished materials in the prosecution of the work provided for in said contract. The conditions and limitations of said bond, inter alia, are that “all persons who have performed labor, rendered services, or furnished materials or machinery as aforesaid shall have a direct right of action against the principal and surety on this bond, which right of action shall be asserted in proceedings instituted in the State in which such labor was performed, services rendered, or materials furnished. . . In said bond, paragraph D is as follows:

“As used herein, the term ‘person’ refers to any person, firm or corporation who has furnished materials or machinery to be used on or incorporated in the work, or the prosecution thereof provided for in said contract,”' etc.

On various dates between December 28, 1938, and August 31,1939, the Girard Construction Company, Inc., agreed to buy, and J. Jacob Shannon & Company, the use-plaintiff, agreed to sell and deliver to it merchandise at the times, in the amounts and at the prices fully appearing in the book of original entries of the use-plaintiff and set forth as exhibit “C” in the statement of claim. The said merchandise for the charges as made therein was sold and delivered at the special instance and request of the Girard Construction Company, Inc., according to the averment in the statement of claim. The statement of claim also avers that the charges were just and reasonable and that the Girard Construction Company agreed to pay the same.

The statement of claim avers in paragraph 11 that the merchandise consisted of materials which were indispensable to the performance of the work covered by said contract; that all said materials were intended to be used and were used exclusively for and were consumed in the prosecution of said work.

[4]*4The statement of claim avers in paragraph 14 that, in addition to the said materials sold and delivered to the Girard Construction Company, the use-plaintiff entered into five written contracts, set forth in the statement of claim as exhibits, with the Girard Construction Company to rent and deliver to it certain machinery at rentals which were just and reasonable and averred that said machinery as rented remained in the possession of and was used by the Girard Construction Company exclusively on and for the prosecution of the work provided for in said contract and that said machinery was indispensable for the performance of said work.

The balance claimed to be due by the use-plaintiff on materials furnished is in the sum of $4,515.44 and the balance claimed to be due on said rentals of machinery is $7,892.27. Demand has been made for the payment of said sums but defendants have neglected and refused to pay the same or any part thereof.

The statement of claim further avers that on July 25, 1939, the Fidelity & Deposit Company took over said contract and through its agents completed the same, purchasing from the use-plaintiff certain materials in the sum of $421.42 and renting from it certain machinery for the sum of $1,783.36, or an aggregate sum of $2,-204.78. There is, however, a specific denial of this averment. The affidavit of defense states that the surety company did not take over the contract of the Girard Construction Company and did not use any of the materials or machinery which were sold to or rented by the Girard Construction Company. For the purpose of this opinion, therefore, this particular averment may be omitted from our consideration.

The affidavit of defense admits that the charges as set forth in the statement of claim are reasonable. It states that it has no knowledge as to whether the merchandise was delivered to the Girard Construction Company and further states that it “after reasonable investigation, is [5]*5unable to ascertain whether or not the facts alleged in the statement of claim are true” and demands proof thereof.

As to the articles rented to said Girard Construction Company, the affidavit of defense states that it is denied that the equipment covered by said agreement is designated machinery or was machinery or is otherwise within the terms and conditions of either of said bonds set forth as exhibits “A” or “B” as attached to the statement of claim or that it was used exclusively in the prosecution of said work; that it has no knowledge of the facts as set forth in the statement of claim as to the said rentals and, after reasonable investigation, is unable to ascertain whether the facts set forth in said statement of claim are true, and demands proof thereof.

It is upon this affidavit of defense as filed that the use-plaintiff has taken its rule for judgment.

It is the contention of the use-plaintiff that the affidavit of defense is insufficient.

Defendants rely on the provisions of the Practice Act of May 14, 1915, P. L. 483, sec. 8, as amended by the Act of July 12,1935, P. L. 666, which reads as follows:

“It shall not be sufficient for a defendant in his affidavit of defense to deny generally the allegations of the statement of claim, or for a plaintiff in his reply to deny generally the allegation of a set-off, counter-claim, or new matter; but each party shall answer specifically each allegation of fact of which he does not admit the truth, except as provided in sections seven and thirteen: Provided, however, That if either the defendant or the plaintiff has no knowledge, and after reasonable investigation is unable to ascertain, whether or not the facts alleged by the opposite party are true, or if means of proof of the facts alleged are under the exclusive control of the party making the allegation, it shall be a sufficient answer to allege that either or both such conditions exist and to demand proof of such alleged facts by the opposite party. In no event shall either party be required to inquire of the opposite party as to alleged facts the proof of which [6]*6is under the exclusive control of the opposite party, and, in no event, shall the party demanding proof of such alleged facts be required to state, specifically or otherwise, or to prove what reasonable investigation he has made to obtain the information of which he alleges he has no knowledge; but his affidavit alone shall be deemed sufficient to support his allegation of reasonable investigation.”

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Bluebook (online)
38 Pa. D. & C. 1, 1940 Pa. Dist. & Cnty. Dec. LEXIS 367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-turnpike-commission-v-girard-construction-co-pactcomplphilad-1940.