Regal Industrial Corp. v. Crum & Forster, Inc.

890 A.2d 395, 2005 Pa. Super. 425, 2005 Pa. Super. LEXIS 4236
CourtSuperior Court of Pennsylvania
DecidedDecember 20, 2005
StatusPublished
Cited by29 cases

This text of 890 A.2d 395 (Regal Industrial Corp. v. Crum & Forster, 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
Regal Industrial Corp. v. Crum & Forster, Inc., 890 A.2d 395, 2005 Pa. Super. 425, 2005 Pa. Super. LEXIS 4236 (Pa. Ct. App. 2005).

Opinion

OPINION BY

DEL SOLE, P.J.:

¶ 1 This is an appeal from the trial court order granting Appellees’ preliminary objections and dismissing Appellant’s complaint with prejudice. Appellant contends that the trial court erred in concluding that Appellant’s claims were governed by 40 U.S.C.S. § 3131, et seq. (“The Miller Act”), which grants exclusive jurisdiction over this matter to the federal courts. Finding no error on the part of the trial court, we affirm.

¶ 2 Wilhelm and Kruse, Inc. (“Wilhelm”) entered into a contract (“Wilhelm contract”) with the United States Army Corps of Engineers to design, construct, test and deliver four inland river style barges for the Ace Inland Barge Project (“the project”). The contract required Wilhelm to provide a performance bond and a payment bond to secure performance of the work and payment for labor and supplies. Wilhelm supplied the bonds with Appellees Crum and Forster, Inc., United States Fire Insurance Company (“U.S.Fire”), and the North River Insurance Company as the sureties on the bonds. The payment bond named Wilhelm as the principal and U.S. Fire as the surety, but stated that the bond ran in favor of the United States of America. The payment bond also identified the Wilhelm contract as the contract upon which the bond was issued.

¶ 3 In August 2000, Appellant Regal Industrial Corporation entered into a subcontract with Wilhelm to provide industrial painting services for the project. By the terms of the subcontract, Appellant was to provide, among other things, labor, equipment and material to blast and paint four barges for the United States Army Corps of Engineers. Wilhelm subsequently declared bankruptcy and pursuant to an order of the bankruptcy court, Hiller Barge Company (“Hiller”) assumed Wilhelm’s rights, duties and liabilities under the project. Appellees remained the sureties of the project.

¶ 4 The dispute at issue in this case began when Hiller failed to pay several invoices submitted to it by Appellant. On January 29, 2002, Appellees sent a letter informing Appellant that U.S. Fire was the bonding company for the project and would guarantee payment on invoices submitted for materials and labor. Appellant continued to provide Hiller with materials and labor and sent invoices reflecting the amount owed for the work it had provided. Hiller filed for bankruptcy on May 1, 2002. Appellant filed a Proof of Claim with the United States Bankruptcy Court on November 6, 2002, seeking payment pursuant to the bond. Appellant’s requests for payment were never met. Appellant initiated the present action against Appellees on September 10, 2004, in the Court of Common Pleas of Allegheny County. Count 1 of Appellant’s complaint set forth a claim based on a breach of the “Construction Bond” and Count 2 set forth a claim for fraud.

¶ 5 In response, Appellees filed preliminary objections. Before these objections were ruled on, Appellant filed an amended complaint renaming Count 1 “Payment Bond for Other than Construction Contract,” and adding a claim based on promissory estoppel. Appellees again responded with preliminary objections asserting that the trial court lacked subject matter jurisdiction to consider Count 1 of the *398 complaint because the bond upon which Appellant’s claim was based was governed by the Miller Act. The preliminary objections also asserted that Appellant failed to state a legally sufficient claim for fraud or promissory estoppel.

¶ 6 Finding Appellant’s claims governed by the Miller Act, the trial court granted Appellees’ preliminary objections and dismissed Appellant’s complaint with prejudice for lack of subject matter jurisdiction. This appeal followed.

¶ 7 Before reviewing the trial court’s finding that it lacked subject matter jurisdiction pursuant to the Miller Act, we must address Appellant’s contention that Appel-lees wrongly attached a copy of the payment bond to their preliminary objections and impermissibly set forth their interpretations of the bond. Appellant maintains that these actions constituted a “speaking demurrer” which should not have been considered by the trial court.

¶ 8 Appellant first claims that Appellees impermissibly attached a copy of the payment bond to their preliminary objections. Appellant argues that it “did not previously possess [the payment bond], so a factual dispute exists as to its authenticity.” Appellant’s Brief at 23. We first note that Appellant did not raise the question of the bond’s authenticity with the trial court. Further, Appellant has not provided any argument in support of this assertion and points to no language in the bond as being inaccurate.

¶ 9 Next, Appellant contends that even if the attachment of the bond was proper, Appellees’ preliminary objections contained an impermissible interpretation of that bond which amounted to a “speaking demurrer.”

¶ 10 “A demurrer is a preliminary objection that the pleadings fail to set forth a cause of action upon which relief can be granted under any theory of law.” McNeil v. Jordan, 814 A.2d 234, 238 (Pa.Super.2002). A “speaking demurrer” is defined as “one which, in order to sustain itself, requires the aid of a fact not appearing on the face of the pleading objected to, or, in other words, which alleges or assumes the existence of a fact not already pleaded, and which constitutes the ground of objection and is condemned both by the common law and the code system of pleading.” BLACK’S LAW DICTIONARY 299 (6th ed.1991). A “speaking demurrer” cannot be considered in sustaining a preliminary objection.

¶ 11 Appellant claims the following two statements contained in Appellees’ preliminary objections amounted to a “speaking demurrer” and as such should not have been considered by the trial court:

1. [Appellant’s] work was in connection with a federal public works project; and
2. [Appellant’s] work was a part of a federal project to design and construct vessels owned by the United States Army Corp. of Engineers.

Appellant’s Brief at 24.

Appellant argues that without considering these two statements, the trial court could not have concluded that the bond was governed by the Miller Act. We disagree.

¶ 12 Although the statements cited by Appellant may be considered legal argument and opinion, the trial court was not bound to consider them. Moreover, we find that even disregarding the alleged “speaking demurrer,” there is sufficient additional information from which the trial court could conclude that Appellant’s claim was governed by the Miller Act. Appellant’s cause of action was predicated on the payment bond that was issued in conjunction with the Wilhelm contract. Although *399 these documents were not attached to the complaint, each was referenced therein. Appellees properly annexed documents related to the bond and the contract to their preliminary objections for the trial court’s consideration. See Eckell v. Wilson, 409 Pa.Super. 132, 597 A.2d 696, 699 (1991) (holding a defendant may attach a copy of a written agreement where the plaintiff alleges an agreement based on a writing).

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Cite This Page — Counsel Stack

Bluebook (online)
890 A.2d 395, 2005 Pa. Super. 425, 2005 Pa. Super. LEXIS 4236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regal-industrial-corp-v-crum-forster-inc-pasuperct-2005.