Skyline Builders, Inc. v. Kellar

50 Pa. D. & C.2d 19, 1970 Pa. Dist. & Cnty. Dec. LEXIS 115
CourtPennsylvania Court of Common Pleas, Lehigh County
DecidedSeptember 15, 1970
Docketno. 330
StatusPublished
Cited by1 cases

This text of 50 Pa. D. & C.2d 19 (Skyline Builders, Inc. v. Kellar) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lehigh County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skyline Builders, Inc. v. Kellar, 50 Pa. D. & C.2d 19, 1970 Pa. Dist. & Cnty. Dec. LEXIS 115 (Pa. Super. Ct. 1970).

Opinion

WIEAND, J.,

If a lawyer who is employed to examine the title to real estate makes an erroneous report that title is good and marketable, when does the statute of limitations begin to run on his client’s cause of action? This is the question posed by motions for judgment on the pleadings filed by defendant, James G. Kellar, and additional defendant, Geza P. Bolez, Jr.

The pleadings establish that James G. Kellar, a member of the bar of Lehigh County and defendant in this action, was employed by Skyline Builders, Inc., plaintiff, to examine the title to a tract of real estate which Skyline intended to purchase and develop in the City of Allentown. Kellar employed Geza P. Bolez, Jr., another attorney and additional defendant herein, to search and abstract the title. On April 9, 1959, on the strength of a report that title was good and marketable, Skyline accepted title. In April 1967, after subdivision and improvement of the tract had been commenced, it was discovered that title to a substantial part of the tract was not good but was, in fact, held by another owner. Discovery of the title defect before April 1967 was prevented, it is alleged, by the reliance which plaintiff placed upon defendant’s assurance that title was good and marketable. Actual fraud, however, is not alleged.

In Pennsylvania, the default or malpractice of an attorney has been treated as a breach of contract between attorney and client: Campbell’s Adminis[21]*21trator v. Boggs, 48 Pa. 524; Rhines’ Administrators v. Evans, 66 Pa. 192; Huffman Estate (No. 3), 349 Pa. 59. The period of limitations to be applied to such actions is six years: Act of March 27, 1713, 1 Sm. L. 76,12 PS §31.

Early Pennsylvania cases involving malpractice of title examiners held that in the absence of fraud the cause of action accrued and the statute of limitations began to run on the day the erroneous title report was made and not on the date the error was discovered or when the damages resulting were finally determined: Owen v. Western Saving Fund, 97 Pa. 47; Lawall v. Groman, 180 Pa. 532; Bodine v. Wayne Title & Trust Company, 33 Pa. Superior Ct. 68. See also 18 A.L.R. 3d 978, 1014. Plaintiff argues that such a rule is unreasonable and has been modified by later decisions. We agree.

In Schwab v. Cornell, 306 Pa. 536, a conveyancer employed to secure clear title to real estate informed his client by letter that the client had a clear title, although the conveyancer knew, or should have known, that the taxes were unpaid for a prior year. The client became aware of these unpaid taxes only when he received notice that his property was being sold for taxes. He brought an action for damages against the conveyancer, who defended on the grounds that the action was barred by the statute of limitations. At pages 539 and 540, the court said:

‘The statute provides that such actions as the present shall be brought ‘within six years next after the cause of such actions or suit, and not after’ . . . If the circumstances are such that a man’s eyes should have been open to what is occurring, then the statute begins to run from the time when he could have seen, but if by concealment, through fraud or otherwise, a screen has been erected by his adversary which effectually obscures the view of what has happened, [22]*22the statute remains quiescent until actual knowledge arises ... In the instant case, we regard the letter of defendant, in which he informed the plaintiff that his title was ‘entirely clear of liens,’ as such an actual misrepresentation of the true situation as prevented the running of the statute until plaintiff discovered by notice of the sale of his property what was the actual situation, — that his title was not clear as defendant represented it to be, but encumbered.”

Counsel have called our attention to no later Pennsylvania cases which have considered the running of the statute of hmitations against lawyers and title examiners, and our own research has disclosed none. However, the appehate courts of this State have considered the running of the statute of hmitations in malpractice actions against both physicians and architects and have achieved a uniform result.

In Ayers v. Morgan, 397 Pa. 282, a surgeon had left a sponge in the body of his patient. The court held that the apphcable two-year statute of hmitations did not begin to run until the patient learned, or by the exercise of reasonable dihgence could have learned, of the presence of the sponge within his body. At pages 284 and 285, the court said:

“This statute, as ah statutes, of course, must be read in the hght of reason and common sense. In its application to a given set of circumstances, it must not be made to produce something which the Legislature, as a reasonably-minded body, could never have intended. The Statutory Construction Act of May 28, 1937, P. L. 1019, Article IV, §52, 46 PS §552, states that in ascertaining the intention of the legislature the courts may be guided by the presumption that ‘The legislature does not intend a result that is absurd, impossible of execution, or unreasonable.’

“With so wholesomely logical and intelligent a standard of interpretation, it would be illogical and un[23]*23intelligent to say that a person who does not know, and cannot know, for example, that a surgeon has negligently left a rubber tube in his body, would be denied damages because his claim for damages was filed, due to delay in learning of the presence of the tube, more than two years after the operation.”

In Med-Mar, Inc. v. Dilworth, 214 Pa. Superior Ct. 402, a latent defect in a roof required a determination of the time when the applicable six-year statute of limitations began to run against an architect whose negligence was responsible for the defect and resulting damage. Writing for the court, Judge Cercone reviewed the applicable law, beginning at page 405, and said:

“The general rule is that the Statute begins to run from the time the act is done, but this is not of universal application. The mischief the Statute intends to remedy is the delay in the assertion of a legal right which it is practical to assert. The limitation of action prevents the starting of a lawsuit at a time when it is impractical or impossible for the parties to present themselves in court with the necessary factual and legal implementations which were at one time available to them. In other words, it is intended to preclude one who has slumbered for six years during which time legal process was within his reach.
“The legal principles in this field, both general and particular, are succinctly stated in the case of Schaffer v. Larzelere, 410 Pa. 402 (1963): ‘Under the law of Pennsylvania, it is the duty of one asserting a cause of action against another to use all reasonable diligence to properly inform himself of the facts and ... to institute the suit within the prescribed statutory period: Patton v. Commonwealth Trust Co., 276 Pa. 95, 119 A. 834 (1923); Turtzo v. Boyer, 370 Pa. 526, 88 A. 2d 884 (1952). Mere mistake, misunderstanding or lack of knowledge is not sufficient to toll [24]*24the running of the statute: Ridgeway’s Account, 206 Pa. 587, 56 A. 25 (1903); McEnery v. Metropolitan Life Ins. Co., 50 Pa. D. & C. 395 (1944). If, however, through fraud or concealment, the defendant causes the plaintiff to relax his vigilance or deviate from his right of inquiry, the defendant is estopped from invoking the bar of the limitation of the action: Plazak v. Allegheny Steel Company, 324 Pa. 422, 188 A.

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Bluebook (online)
50 Pa. D. & C.2d 19, 1970 Pa. Dist. & Cnty. Dec. LEXIS 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skyline-builders-inc-v-kellar-pactcompllehigh-1970.