Union National Bank of Pittsburgh v. Dillsburg Borough Authority

81 Pa. D. & C. 404, 1951 Pa. Dist. & Cnty. Dec. LEXIS 228
CourtPennsylvania Court of Common Pleas, York County
DecidedMarch 20, 1951
Docketno. 291
StatusPublished

This text of 81 Pa. D. & C. 404 (Union National Bank of Pittsburgh v. Dillsburg Borough Authority) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union National Bank of Pittsburgh v. Dillsburg Borough Authority, 81 Pa. D. & C. 404, 1951 Pa. Dist. & Cnty. Dec. LEXIS 228 (Pa. Super. Ct. 1951).

Opinion

Anderson, J.,

This proceeding comes before the court on preliminary objections filed by each of the three defendants in the action. As required by rule 1028 defendants have raised all pertinent objections to plaintiff’s complaint at one time and have literally “shelled the woods.” We shall deal herein with the objections filed by defendant Dillsburg Borough Authority.

The facts in brief are as follows: Under date of November 16, 1948, Dillsburg Borough Authority entered into a contract in writing with Sharpsburg Construction Company for the construction and installation of a sewage system in the Borough of Dills-burg. Bonds conditioned for performance of the work [406]*406and payment of labor and. material were furnished as required by law, with Peerless Casualty Company as surety. Pursuant to the contract Sharpsburg Construction Company began prosecution of the work and continued with the same until February 10, 1950. In order to finance the project the contractor made loan arrangements with plaintiff, Union National Bank of Pittsburgh, and assigned to the bank all sums due from time to time to the contractor from Dillsburg Authority. The authority was notified of the assignment, is alleged to have accepted it and agreed to make remittances directly to the bank in accordance with its terms. Hanover Trust Company, trustee under the bond issue to finance the project, made remittances directly to the bank pursuant to the assignment for several months. On February 10, 1950, the authority declared the contract in default pursuant to the terms of the contract, at which time the work was taken over and continued by Peerless Casualty Company, surety on the various contractors' bonds. This action was brought by plaintiff bank to recover a specific sum, to wit, $6,801.75, for work, labor and material furnished by the contractor during the month ending December 31, 1949, which sum is alleged to have become payable not later than January 15, 1950, upon certification, by the engineer. Plaintiff claims there are other sums due and owing under the contract for which it seeks an accounting.

The first objection is a motion to strike off the complaint for the reason that plaintiff has failed to attach the contract or material parts thereof as required by rule 1019 (h). The original contract is attached to the pleadings but the complaint states that the contract documents, consisting of a bound volume of 302 pages, are not attached due to their size and bulk and are in the possession or readily available to defendants and [407]*407will be produced at the trial., In fact a copy of this volume by agreement of counsel was handed to the court at the argument and since several phases of the objections depend upon these documents the court will assume that these documents have been incorporated by reference and will not sustain the first objection. Since all agree as to the validity of the documents it would seem an unnecessary burden and expense to compel plaintiff to copy over BOO pages so as to attach same as an exhibit. This objection is therefore dismissed.

The second objection is that the averments of paragraph 6 of the complaint and a portion of paragraph 7, to wit: . . . “and presumably let in accordance with law” are impertinent and mere surplusage in that it is alleged that the contract was entered into without true competitive bidding. This objection is well taken and is sustained. Plaintiff may not in one paragraph bring a suit based upon a contract as a valid and binding obligation and in another paragraph allege that the contract was not legally entered into by the parties.

The next objection raised by defendant is in the nature of a motion for a more specific complaint, alleging that the averments of paragraph 15 and the prayers of the complaint are so vague, indefinite and uncertain that defendant should not be required to answer them and further that the averments do not constitute a simple and concise statement of the facts as required. These averments in general ask for an accounting and it may be that plaintiff is so entitled. These objections are therefore dismissed at this time.

The third and final group of objections, is in the nature of a demurrer to the complaint for failure to state a valid cause of action. A number of grounds are alleged which we shall take up seriatim.

Paragraph 8 of the demurrer alleges that exhibit B of the complaint is not a valid legal assignment since [408]*408it does not show the titles or offices of the parties executing the same. This objection is not valid and is dismissed. The instrument itself names the signer thereof as the president of the corporation, the corporate seal is attached and in addition defendant is estopped from denying the validity of the assignment, for, accepting the allegations of the complaint to be true, as we must at this stage of the proceedings, we find that defendant for eight months relied and acted upon the authority of this assignment.

“An estoppel may be raised by acquiescence, where a party aware of his own rights, sees the other party acting upon a mistaken notion of his rights. ‘The rule is well recognized that when a party with full knowledge, or with sufficient notice or means of knowledge of his rights and of all the material facts, remains inactive for a considerable time or abstains from impeaching the transaction, so that the other party is induced to suppose that it is recognized, this is acquiescence, and the transaction, although. originally impeachable, becomes unimpeachable’ ”: Kennedy’s Estate, 321 Pa. 225, 232.

The doctrine of estopped also applies to objections nos. 9 and 10, which will also be dismissed. These objections assert that the acceptance of the assignment by C. S. Williams for the authority is not valid since it shows no authority for his action and consequently is not binding on the Dillsburg Borough Authority, and further that no written consent of the Capitol Engineering Corporation to this assignment is averred as required by the contract document. In addition, as to objection 9, it has been well established that in the absence of proof to the contrary the law presumes that a public official’s actions were pursuant to proper authority and that the antecedeftt steps necessary to give validity to his official acts were duly taken: McIntosh Road Materials Co. v. Woolworth et al., 365 Pa. 190.

[409]*409Objection number 11 raises the point that the estimate, upon which this suit is based, plaintiff’s exhibit E, certified by the engineer covering the work done during the preceding calendar month and used as the basis of payment to the contractor, has not been approved for payment by the engineer as required by paragraph 3-36 (a) of the contract documents. It is true that this exhibit indicates on its face that it has been certified as correct by the engineer but has not been approved for payment. As the pleadings stand this would seem to be a valid objection and would justify both the authority and the bank in refusing to pay on the estimate, for approval for payment by the engineer is a condition precedent. If there was some reason for the engineer not approving the payment, as there apparently must have been, the contractor was not without remedy for the contract documents provide for the submission to arbitration of decisions in dispute involving time or financial considerations. Or if the dispute was not in that category the contractor could have immediately resorted to court to enforce payment.

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Cite This Page — Counsel Stack

Bluebook (online)
81 Pa. D. & C. 404, 1951 Pa. Dist. & Cnty. Dec. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-national-bank-of-pittsburgh-v-dillsburg-borough-authority-pactcomplyork-1951.