RECO Equipment, Inc. v. John T. Subrick Contracting, Inc.

780 A.2d 684, 2001 Pa. Super. 205, 2001 Pa. Super. LEXIS 1957
CourtSuperior Court of Pennsylvania
DecidedJuly 13, 2001
StatusPublished
Cited by18 cases

This text of 780 A.2d 684 (RECO Equipment, Inc. v. John T. Subrick Contracting, Inc.) 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
RECO Equipment, Inc. v. John T. Subrick Contracting, Inc., 780 A.2d 684, 2001 Pa. Super. 205, 2001 Pa. Super. LEXIS 1957 (Pa. Ct. App. 2001).

Opinion

ORIE MELVIN, J.

¶ 1 Appellant, John T. Subrick Contracting, Inc., appeals from the Order denying its petition to strike a foreign judgment in favor of Appellee, RECO Equipment, Inc., which was transferred from Ohio pursuant to the Uniform Enforcement of Foreign Judgments Act (UEFJA), 42 Pa.C.S.A. § 4306. We affirm.

¶2 The record reflects the dispute underlying the foreign judgment stemmed from a rental agreement entered into in Pennsylvania. In 1995, Appellant, an excavating contractor, entered into a construction contract with the Mon Valley Sewage Authority for the installation of sewer lines for a residential development located in the Borough of Donora. At some point during the project the Appellant determined there was a need for an additional hydraulic excavator to complete the work. Appellee is an Ohio corporation with branch offices in Pennsylvania and is in the business of selling, servicing and leasing industrial equipment. Accordingly, Appellant contacted Appellee at its Cranberry Township office and entered into a rental agreement for the use of one of their hydraulic excavators. After delivery of the machine to the construction site a dispute arose over its performance and as to whether the type of machine supplied was the one agreed upon. Approximately one month later Appellant returned the machine to Appellee’s Cranberry location and refused to pay the rental price.

¶ 3 On November 8, 1996, Appellee initiated a civil action in the Court of Common Pleas of Belmont County, Ohio against Appellant for the collection of the unpaid account concerning the rental agreement. Appellant filed a motion to dismiss on January 2, 1997, simply stating as its basis a lack of jurisdiction. On January 9, 1997, Appellee responded by filing a motion to stay the action pending arbitration. The court held arguments on both motions. At the hearing Appellee conceded that jurisdiction over the dispute was properly subject to arbitration pursuant to contractual agreement. Specifically, the rental agreement contained the following clause:

*686 In the event of disputed, unpaid accounts, the undersigned agrees that the matter of dispute shall be subject to final and binding arbitration to be held in St. Clairsville, Ohio, in accordance with the rules and regulations of the American Arbitration Association. The arbitration shall be enforceable in a court of competent jurisdiction.

On February 14, 1997, the court found that personal jurisdiction over the Appellant was obtained by virtue of the consent reflected in the above clause. Therefore, the court overruled the motion to dismiss and by agreement of the parties sustained the motion to stay pending arbitration.

¶ 4 The parties proceeded to litigate the dispute in arbitration, and on June 24, 1997, the arbitrator issued an award in favor of the Appellee in the amount of $9,052.05. On July 28, 1997, Appellee filed an application with the Ohio trial court to confirm the arbitration award and have judgment entered thereon. Appellant filed a motion in opposition arguing the Ohio court lacked personal jurisdiction by application of § 514 of the Pennsylvania Contractor and Subcontractor Payment Act (the Act), 73 P.S. §§ 501-516. 1 The Ohio court found the act was inapplicable to this type of contract and confirmed the award and entered judgment thereon by order dated August 19, 1997. Appellant did not file an appeal from this determination.

¶ 5 Subsequently, the Appellee transferred its judgment to the Court Common Pleas of Washington County, Pennsylvania, and on October 9, 1998, the Appellee exemplified its judgment in the Court of Common Pleas of Allegheny County in order to garnish funds held for the benefit of Appellant. On February 19, 1999, the Appellant filed a petition to open and/or strike the judgment asserting the same basis as argued in the confirmation proceedings in Ohio. The Appellee filed an answer to the petition, and following a hearing thereon, the Allegheny County Court of Common Pleas entered an Order denying the petition on November 3, 1999. This appeal followed.

¶ 6 On appeal Appellant presents the following questions:

I. Whether the clause of the Rental Agreement setting jurisdiction for resolving disputes in arbitration proceedings in Ohio is violative of Pennsylvania law and should not be enforced?
II. Whether the foreign judgment asserted in this action was a nullity since there were insufficient minimum contacts with the forum state, Ohio, for that state to have jurisdiction over the case?

Appellant’s brief at 3.

¶ 7 Our standard of review from the denial of a petition to strike a judgment is limited to whether the trial court manifestly abused its discretion or committed an error of law. Crum v. F.L. Shaffer Co., 693 A.2d 984 (Pa.Super.1997). The full faith and credit clause of the United States Constitution requires state courts to recognize and enforce the judgments of sister states. U.S. Const. Art. 4, § 1. “In order for our courts to recognize [a] judgment as valid and enforceable, the sister state must have had proper jurisdiction over the defendant and afforded him or her due process of law.” Gersenson v. PA Life and Health Ins. Guar. Ass’n, 729 A.2d 1191, 1195 (Pa.Super.1999), appeal denied, 562 Pa. 671, 753 A.2d 818 (2000) (quoting Commomvealth Capital Funding, *687 Inc. v. Franklin Square Hospital 423 Pa.Super. 149, 620 A.2d 1154, 1156 (1993)).

¶ 8 Appellant fully participated in the arbitration and confirmation proceedings and therefore does not contend it was denied due process. Likewise, it cannot be denied that the Ohio trial court was a court of competent jurisdiction authorized to confirm an arbitration award. Thus, we are not presented with a challenge based on a lack of subject matter jurisdiction. Here, the only question raised concerns jurisdiction over the person. “It is well-settled that a court’s jurisdiction over the person may be conferred by consent or agreement.” Accu-Weather v. Thomas Broadcasting Co., 425 Pa.Super. 335, 625 A.2d 75, 79 (1993) (quoting Commonwealth ex rel. Rothman v. Rothman, 209 Pa.Super. 180, 223 A.2d 919, 922 (1966)). Appellant’s first question implicitly concedes that it agreed to arbitration in Ohio. However, Appellant asks this Court to determine whether the Ohio judgment should be denied full faith and credit in Pennsylvania because the consent is unenforceable due to the application of § 514 of the Act. Appellant argues the Act applies to the rental agreement and § 514 of the Act makes the inclusion of a choice of forum clause unenforceable. Therefore, the parties were statutorily precluded from agreeing to litigate this dispute in any state other than Pennsylvania.

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Bluebook (online)
780 A.2d 684, 2001 Pa. Super. 205, 2001 Pa. Super. LEXIS 1957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reco-equipment-inc-v-john-t-subrick-contracting-inc-pasuperct-2001.