Resp. Elec., Inc. v. Com of PA Penn State Health

CourtSuperior Court of Pennsylvania
DecidedAugust 15, 2023
Docket1389 MDA 2022
StatusUnpublished

This text of Resp. Elec., Inc. v. Com of PA Penn State Health (Resp. Elec., Inc. v. Com of PA Penn State Health) 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
Resp. Elec., Inc. v. Com of PA Penn State Health, (Pa. Ct. App. 2023).

Opinion

J-A16040-23

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT OP 65.37

RESPONSE ELECTRIC, INC. : IN THE SUPERIOR COURT OF : PENNSYLVANIA : v. : : : COMMONWEALTH OF PENNSYLVANIA : PENN STATE HEALTH LANCASTER : MEDICAL CENTER : No. 1389 MDA 2022 : : APPEAL OF: ENVIRONMENTAL AIR : SYSTEMS, LLC. :

Appeal from the Order Entered September 2, 2022 In the Court of Common Pleas of Lancaster County Civil Division at No(s): CI-22-00419

BEFORE: PANELLA, P.J., BENDER, P.J.E., and McCAFFERY, J.

MEMORANDUM BY McCAFFERY, J.: FILED: AUGUST 15, 2023

Environmental Air Systems, LLC (EAS) appeals from the order entered

September 2, 2022, in the Lancaster County Court of Common Pleas. The

trial court granted a motion for reconsideration, filed by Response Electric,

Inc. (REI), of its prior order striking a mechanics’ lien claim, and reinstated

the mechanics’ lien.1 EAS presents three issues for our review: (1) whether

this Court has jurisdiction over this appeal; (2) whether the trial court erred

when it reconsidered its prior order more than 30 days after it was entered;

and (3) whether the trial court properly struck the mechanics’ lien claim when ____________________________________________

1 As will be discussed infra, the Commonwealth of Pennsylvania Penn State

Health Lancaster Medical Center (Penn State Health) did not participate in these proceedings and is not a party to this appeal. J-A16040-23

REI failed to file an affidavit of service as required by the Mechanics’ Lien Law. 2

Because we conclude the trial court had no authority to reconsider its prior,

final order after the appeal period expired, we are constrained to vacate the

order on appeal, and remand for reinstatement of the court’s July 18, 2022,

order.

We discern the following relevant facts and procedural history from the

certified record. Penn State Health is the owner of a property located at 2148

State Road in Lancaster, Pennsylvania, where it is constructing a Central

Utility Plant (the Project). See REI’s Mechanic[s’] Lien Claim, 1/24/22, at ¶¶

2, 4; EAS’s Brief at 4; REI’s Brief at 1. EAS, a subcontractor for the Project,

entered into a subcontract with REI to provide “electrical work and engineering

work” for the Project. REI’s Mechanic[s’] Lien Claim at ¶ 4. REI maintains

that it completed the work requested on September 22, 2021, but that it was

still due $24,581.43 for labor and materials. See id. at ¶¶ 5-7. Thus, on

January 24, 2022, REI filed the underlying mechanics’ lien claim against Penn

State Health in the amount of $24,581.43. Relevant herein, on February 24,

2022, a signed Sheriff’s Return of Service was docketed, which stated that the

mechanics’ lien claim was served on Penn State Health the day before,

February 23rd.

Meanwhile, on February 23, 2022, EAS filed a motion requesting

permission to file a bond to discharge and release the mechanics’ lien on Penn ____________________________________________

2 See Mechanics Lien Law of 1963, 49 P.S. §§ 1101-1902.

-2- J-A16040-23

State Health’s property. See EAS’s Motion to File Bond to Discharge

Mechanics’ Lien, 2/23/22, at 1-2 (unpaginated). EAS asserted, inter alia, “as

the entity that allegedly failed to pay REI, EAS [was] a ‘party in interest’”

pursuant to the Mechanics’ Lien Law. Id. at 2. On March 23, 2023, the trial

court granted the motion and ordered EAS to “enter and post with the court a

lien bond in the amount of $49,162.86[,]” double the lien amount.3 Order,

3/23/23. The court further stated, “[w]hen the bond is posted, the lien shall

discharge as to [Penn State Health’s] property and attach to [EAS’s] bond.”

Id. (footnote omitted). Thereafter, on April 1, 2022, EAS posted the requisite

lien bond.

On April 8, 2022, REI filed a civil complaint against EAS, seeking

damages for breach of contract and quantum meruit in the same amount as

the mechanics’ lien claim. EAS filed preliminary objections asserting, inter

alia, that REI was prohibited from “filing a breach of contract claim in the same

action as a mechanics’ lien claim[,]” and, in any event, the parties’ subcontract

included both an arbitration clause and a forum selection clause, which

required any civil action be brought in Guilford County, North Carolina.4 EAS’s

Preliminary Objections to REI’s Complaint, 6/3/22, at 2-4, 6-7. REI filed

preliminary objections to EAS’s preliminary objections, arguing that EAS’s ____________________________________________

3 See 49 P.S. § 1510(d) (providing security “may be entered . . . double the

amount of the required deposit” to have lien discharged).

4 EAS is a limited liability company with a registered business address in High

Point, North Carolina. See REI’s Complaint, 4/8/22, at ¶ 2.

-3- J-A16040-23

objections were untimely filed and the forum selection clause is unenforceable.

See REI’s Preliminary Objections to EAS’s Preliminary Objections to REI’s

Complaint, 6/20/22, at 3-5 (unpaginated).

While the competing preliminary objections to the civil action were

pending, on July 1, 2022, EAS filed a motion to strike the mechanics’ lien. It

argued that REI failed to file an affidavit of service within 20 days of the service

of the lien as required by Section 1502(a)(2) of the Mechanics Lien Law.5 See

EAS’s Motion to Strike Mechanics’ Lien Claim, 7/1/22, at 2. Further, because

a mechanics’ lien must be filed within six months after work is completed 6 ─

which REI acknowledged was in September of 2021 ─ EAS asserted the

mechanics’ lien action “should be dismissed with prejudice.” Id. at 4.

REI filed a response and supporting brief, averring that the sheriff’s

return of service, docketed on February 23, 2022, satisfied the requirements

of Section 1502. See REI’s Brief in Support of Response in Opposition to EAS’s

Motion to Strike Mechanic[s’] Lien Claim, 7/8/22, at 3. EAS filed a reply,

disputing REI’s assertion. Thereafter, on July 18, 2022, the trial court entered

an order which: (1) granted EAS’s motion to strike the mechanics’ lien claim

due to REI’s failure to file an affidavit of service; (2) sustained EAS’s ____________________________________________

5 See 49 P.S. § 1502(a)(2) (requiring mechanics’ lien claimant to, inter alia,

file “affidavit of service of notice, or the acceptance of service, . . . within twenty (20) days after service [of lien claim] setting forth the date and manner of service”).

6 See 49 P.S. § 1502(a)(1) (mechanics’ lien claim must be filed “within six (6)

months after the completion of [the] work”).

-4- J-A16040-23

preliminary objection to REI’s civil complaint based upon the misjoinder of

actions; (3) dismissed as moot EAS’s remaining preliminary objections; and

(4) overruled REI’s preliminary objections to EAS’s preliminary objections.

See Order, 7/18/22, at 1-2. We note that an order striking a mechanics’ lien

claim is final and appealable. See Caldwell v. Carter, 23 A. 575 (Pa. 1892).

Therefore, REI could have filed an appeal from the July 18th order within 30

days, that is, no later than August 17, 2022.

However, on August 15, 2022 ─ two days before the appeal period

expired ─ REI instead filed a motion seeking reconsideration of the trial court’s

July 18th order. See REI’s Motion for Reconsideration of [Trial] Court’s July

[18], 2022 Order Striking its Mechanics’ Lien Claim & Seeking Reinstatement

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