Tecton Corp. v. Liberty Mutual Insurance Co.

CourtSuperior Court of Pennsylvania
DecidedSeptember 9, 2015
Docket746 EDA 2015
StatusUnpublished

This text of Tecton Corp. v. Liberty Mutual Insurance Co. (Tecton Corp. v. Liberty Mutual Insurance Co.) 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
Tecton Corp. v. Liberty Mutual Insurance Co., (Pa. Ct. App. 2015).

Opinion

J-S51013-15

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

TECTON CORP., INC. IN THE SUPERIOR COURT OF PENNSYLVANIA Appellant

v.

LIBERTY MUTUAL INSURANCE COMPANY

Appellee No. 746 EDA 2015

Appeal from the Judgment Entered February 19, 2015 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): February Term, 2014, No. 01446

BEFORE: GANTMAN, P.J., LAZARUS, J., and PLATT, J.*

MEMORANDUM BY GANTMAN, P.J.: FILED SEPTEMBER 09, 2015

Appellant, Tecton Corporation, Inc. (“Tecton”) appeals from the

summary judgment entered in the Philadelphia County Court of Common

Pleas, in favor of Appellee, Liberty Mutual Insurance Company (“Liberty

Mutual”). We affirm.

The relevant facts and procedural history of this case are as follows.

On December 2, 2010, the city of Philadelphia awarded a public construction

contract to J.S. Cornell & Son, Inc. (“JSC”). The contract called for JSC to

renovate the Police Tactical Headquarters located at 660 East Erie Avenue in

Philadelphia. On December 10, 2010, JSC secured surety bonding for the

project from Liberty Mutual. In the event that JSC failed to make payment

to subcontractors, the bond specified the Public Works Contractors’ Bond

_________________________

*Retired Senior Judge assigned to the Superior Court. J-S51013-15

Law of 1967 would govern the claimant’s rights.1 On July 11, 2011, JSC

awarded two subcontracts to Tecton for masonry and carpentry work for

$149,600.00 and $87,614.00, respectively, totaling $237,214.00. JSC sent

emails to Tecton while Tecton was still working on the project in January

2012, requesting Tecton to send JSC bills for the work Tecton had done.

Tecton did not send JSC any bills at that time. Tecton sent JSC a non-

itemized form invoice for both subcontracts on September 14, 2012. Tecton

completed the work prior to or around early November 2012. Tecton did not

send JSC a written invoice upon completion of the project, though Tecton’s

owner testified he had telephone conversations regarding payment with the

president and the vice president of JSC.

Over one year later, on December 2, 2013, Tecton’s owner sent an

email to JSC, requesting payment for Tecton’s work on the subcontracts.

JSC failed to pay Tecton for any of its work on the completed subcontracts.

On December 23, 2013, JSC sent a letter to Tecton, informing Tecton that

JSC would be going out of business on January 1, 2014. Tecton’s counsel

contacted JSC on December 29 and 30, 2013, to inquire about payment.

JSC did not return the calls or emails.

Tecton filed a demand for arbitration on December 31, 2013, with the

American Arbitration Association. The arbitration demand named both JSC

____________________________________________

1 8 P.S. § 191.

-2- J-S51013-15

and Liberty Mutual as respondents. Liberty Mutual received service of the

arbitration demand on January 7, 2014. On February 7, 2014, Tecton’s

counsel received a letter from Liberty Mutual, dated January 31, 2014,

informing Tecton that the arbitration agreement in the contract between JSC

and Tecton was not binding on Liberty Mutual. The letter also stated the

Public Works Contractors’ Bond Law of 1967 governed Tecton’s claim. This

law required Tecton to bring an action for nonpayment within one (1) year

and ninety (90) days after its work ceased on the construction project. The

letter noted that one year and ninety days had elapsed since Tecton finished

its work on the project.

Tecton then filed a writ of summons against Liberty Mutual on

February 14, 2014, and filed a complaint on February 28, 2014. Following

preliminary objections by Liberty Mutual, Tecton filed an amended complaint

on May 13, 2014. Liberty Mutual re-filed preliminary objections on June 3,

2014. The court overruled Liberty Mutual’s new preliminary objections on

July 15, 2014. Liberty Mutual filed an answer to Tecton’s complaint on

August 1, 2014.

On November 17, 2014, Liberty Mutual filed a motion for summary

judgment. Tecton filed a motion in opposition to summary judgment on

December 18, 2014, and Liberty Mutual filed a reply on December 30, 2014.

The court granted summary judgment in favor of Liberty Mutual on February

19, 2015. Tecton timely filed a notice of appeal on March 10, 2015. The

-3- J-S51013-15

court did not order a concise statement of errors complained of on appeal

pursuant to Pa.R.A.P. 1925(b), and Tecton filed none.

Tecton raises one issue for our review:

WHETHER THE TRIAL COURT COMMITTED A REVERSIBLE ERROR OF LAW OR ABUSED ITS DISCRETION WHEN IT GRANTED SUMMARY JUDGMENT IN FAVOR OF LIBERTY MUTUAL INSURANCE COMPANY AND AGAINST [TECTON] WHERE THERE WAS A GENUINE ISSUE OF MATERIAL FACT OUTSTANDING AS TO WHETHER THE APPLICABLE STATUTE OF LIMITATIONS HAD BEEN TOLLED?

(Tecton’s Brief at 4).

Tecton argues a genuine issue of material fact exists in this case to

preclude summary judgment. Specifically, Tecton claims JSC’s

representatives knew the company was unable to pay Tecton, although JSC

repeatedly promised payment. Tecton contends it reasonably relied on JSC’s

promises, and JSC committed fraud. Tecton asserts Liberty Mutual’s surety

relationship with JSC makes Liberty Mutual liable for JSC’s fraud. Tecton

concedes it filed its action against Liberty Mutual more than one year and

ninety days after it completed work on the project, but Tecton avers it is

entitled to equitable tolling of the statute of limitations due to JSC’s fraud.

Tecton maintains the question of whether JSC’s fraud tolled the statute of

limitations is a jury question. Tecton concludes the trial court erred by

granting summary judgment to Liberty Mutual, and this Court should

remand for a trial. We disagree.

Our standard of review of an order granting summary judgment

-4- J-S51013-15

requires us to determine whether the trial court abused its discretion or

committed an error of law. Mee v. Safeco Ins. Co. of Am., 908 A.2d 344,

347 (Pa.Super. 2006).

Judicial discretion requires action in conformity with law on facts and circumstances before the trial court after hearing and consideration. Consequently, the court abuses its discretion if, in resolving the issue for decision, it misapplies the law or exercises its discretion in a manner lacking reason. Similarly, the trial court abuses its discretion if it does not follow legal procedure.

Miller v. Sacred Heart Hosp., 753 A.2d 829, 832 (Pa.Super. 2000)

(internal citations omitted). Our scope of review is plenary. Pappas v.

Asbel, 564 Pa. 407, 418, 768 A.2d 1089, 1095 (2001), cert. denied, 536

U.S. 938, 122 S.Ct. 2618, 153 L.Ed.2d 802 (2002). In reviewing a trial

court’s grant of summary judgment,

[W]e apply the same standard as the trial court, reviewing all the evidence of record to determine whether there exists a genuine issue of material fact. We view the record in the light most favorable to the non-moving party, and all doubts as to the existence of a genuine issue of material fact must be resolved against the moving party.

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