School District v. Planet Insurance

44 Pa. D. & C.3d 262, 1987 Pa. Dist. & Cnty. Dec. LEXIS 287
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedMay 19, 1987
Docketno. 2889
StatusPublished
Cited by1 cases

This text of 44 Pa. D. & C.3d 262 (School District v. Planet Insurance) 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
School District v. Planet Insurance, 44 Pa. D. & C.3d 262, 1987 Pa. Dist. & Cnty. Dec. LEXIS 287 (Pa. Super. Ct. 1987).

Opinion

PRATTIS, J.,

This is an áction by the school district of Philadelphia to recover substantial damages which it has suffered as a result of defective electrical construction at three Philadelphia public schools: Martin Luther King High School, Ada H. H. Lewis Middle School and George Wharton Pepper Middle School. The electrical systems at all three schools were furnished and installed by A&B Electrical Contracting Co. A&B is now defunct and has not been named in this action. Defendants are the performance bond sureties, a number of architects, and the agency which certified the electrical work in the schools.

The motion now before the court has been brought by defendant Planet Insurance Co., the surety on A&B’s performance bond for Martin Luther King High School. The sole basis of Planet’s motion is that the school district’s claims are barred, as a matter of law, by 42 Pa.C.S. §5523(3), a one-year statute of limitations for actions “upon any . . . performance bond.” The school district argues that under the doctrine of nullum tempus occurrit regi (“time does not run against the King”), it is immune from the statute of limitations.

This case does not have any major factual disputes and is therefore decided on issues of law.

[264]*264FINDINGS OF FACT

(1) On November 10, 1969, the school district entered into a contract with A&B for the installation of the electrical system at the King School.

(2) On November 10, 1969, Planet provided a performance bond, no. P2 04 36 64, to the school district on behalf of A&B.

(3) Construction of the school began in 1969 and the school district opened the school in February

1973.

(4) In a letter dated February 28, 1974, James Ricciuti, the school district’s engineering supervisor at the time, stated that the school district accepted A&B’s work in March 1972, and that as of March 1974, the electrical work was “99.5 percent, complete.”

(5) On August 18, 1977, Nicholas T. Pitts, Chief of Special Investigations for the city of Philadelphia, sent a memorandum to the city controller informing him that a preliminary inspection of the electrical work at the school indicated that the electrical work was installed with “. . . complete disregard for adherence to specifications, drawings and compliance with the National Electric Code . . .,” and there existed “. . . extreme dangers present to life and property. ”

(6) On September 7, 1977, the Middle Department Inspection Agency inspected the . school and reported various electrical wiring problems, and included specific repair suggestions to the sub-station, boiler room, auditorium lobby, mechanical room and auditorium.

(7) In December 1985, the school district instituted this lawsuit, claiming, in count I that A&B defectively installed the wiring in the school, and that Planet is liable to the school district under its surety contract with A&B.

[265]*265(8) In its complaint, the school district conceded that it was aware of Mr. Pitts’ 1977 memorandum and the 1977 Middle Department inspection report.

(9) At no time following the completion of construction of the school in 1976, to the commencement of this action in 1985, did the school district notify Planet of any alleged deficiencies in the' work of A&B or make any claim under Planet’s bond.

(10) 42 Pa.C.S. §5523(3) provides for a one-year period of limitation in an action on a performace bond, stating:

“The following actions and proceedings must be commenced within one year:
“(3) Any action upon any payment or performance bond.”

(11) The school district alleges in its complaint that A&B breached its contract with the school district when it installed seriously defective electrical equipment in the school.

(12) Pa.R.C.P. 1035(b) provides that a court should grant summary judgment when the record viewed in the light most favorable to the non-moving party reveals that the moving party is entitled to the judgment as a matter of law and there is no genuine issue as to material fact.

Is The School District Exercising A Strictly'Governmental Function And Thus Entitled To Nullum Tempus, When It Enters A Contract For Construction Of School Facilities!

Held. Yes.

Defendant Planet Insurance Co. files a motion for summary judgment in response to plaintiff s action on the contract, alleging the statute of limitations as a defense.

[266]*266Plaintiff, school district, claims that the doctrine of nullum tempus applies, and therefore they are not barred by the statute of limitations.

Planet argues that the school district engaged in a private contract with defendant and was not acting in a sovereign capacity.

Standard: Unless otherwise provided, the statute of limitations cannot be pleaded against such political subdivision, etc. when they are seeking to enforce strictly public rights. That is, when the cause of action accrues to them in their governmental capacity and the suit is brought to enforce an obligation imposed by law as distinguished from one arising out of an agreement voluntarily entered into by defendant. City of Philadelphia v. Holmes Electric Protective Company of Philadelphia, 335 Pa. 273, 6 A.2d 884 (1939).

Under the doctrine of nullum tempus, a political subdivision is immune from the statute of limitations only if it is acting in a sovereign rather than a proprietary capacity.

PLANET INSURANCE POSITION

Defendant argues Pennsylvania courts have expressly held that a lawsuit to enforce a contract claim is not a sovereign act, and that plaintiff in such an action is not entitled to immunity from the statute of limitations. In Holmes, the city sued to enforce an ordinance granting an alarm company permission to run wires under city streets in return for. a percentage of the company’s gross receipts. The Supreme Court found that the ordinance had the same legal effect as “any other contract,” and held:

“Since, then, the city of Philadelphia is here suing, not to compel the performance of a duty imposed by law, nor to assert a governmental power in[267]*267herent in it as a municipal corporation, but to enforce a contractual obligation assumed by deféndant when it accepted the privilege granted by the ordinance, the statute of limitations is applicable to the suit.” Id. at 278-80, 6 A.2d at 887-88.

Similarly, in Pennsylvania Turnpike Commission v. Atlantic Richfield Co., 482 Pa. 615, 394 A.2d 491 (1978), the Pennsylvania Turnpike Commission sued to enforce a lease it had entered with Atlantic Richfield for service station locations along the Pennsylvania Turnpike. The Supreme court cited Holmes, supra, and held that because the commission’s claim was “an action on an agreement voluntarily entered into by'the commission,” it was subject to the statute of limitations.

Although neither Holmes nor Atlantic Richfield

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Bluebook (online)
44 Pa. D. & C.3d 262, 1987 Pa. Dist. & Cnty. Dec. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-district-v-planet-insurance-pactcomplphilad-1987.