United States Cold Storage Corp. v. Philadelphia

246 A.2d 386, 431 Pa. 411, 1968 Pa. LEXIS 637
CourtSupreme Court of Pennsylvania
DecidedOctober 3, 1968
DocketAppeal, No. 357
StatusPublished
Cited by24 cases

This text of 246 A.2d 386 (United States Cold Storage Corp. v. Philadelphia) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Cold Storage Corp. v. Philadelphia, 246 A.2d 386, 431 Pa. 411, 1968 Pa. LEXIS 637 (Pa. 1968).

Opinions

Opinion by

Mr. Justice Jones,

One phase of the instant controversy was before us on a previous occasion. See: U. S. Cold Storage Corp. v. Philadelphiai, 427 Pa. 624, 235 A. 2d 422 (1967). We deem essential a recitation of the factual background of this matter as set forth in onr prior decision.

“The United States Cold Storage Corporation and Philadelphia Warehousing and Cold Storage Company (Storage Companies), instituted this equity action in Philadelphia County against the City of Philadelphia (City), the [General State] Authority, Lavino Shipping Company (Lavino), and Pennsylvania Refrigerated Terminals, Inc. (Terminals) to restrain the construction of a cold storage warehouse as part of a port complex known as the Packer Avenue Marine Terminal. The Storage Companies operate cold storage and refrigerated facilities in the same area wherein this marine terminal is to be constructed with joint financing by the City and the Authority and the marine terminal will be leased to Lavino and the cold storage warehouse unit to be located therein will he leased to Terminals. The gravamen of the Storage Companies’ complaint is that insofar as the Authority is concerned, the proposed construction offends the General State Authority Act . . . which proscribes the exercise of the Authority’s power to construct any project which, ‘in whole or in part, shall duplicate or compete with existing enterprises serving substantially the same purposes’ and the contemplated project will duplicate and compete with the Storage Com[414]*414panies’ present cold storage and refrigerated facilities.” (p. 625).

On the previous appeal, neither the City, Lavino nor Terminals were parties to or intervenors therein; the sole parties were the Storage Companies and the Authority which, by way of preliminary objections, questioned the venue of the action against it in Philadelphia County. We stated on that appeal: “The sole issue is whether exclusive venue in litigation wherein the Authority is being sued lies in Dauphin County” and a majority of this Court1 held, on the authority of Pa. R. C. P. 1503(c), that the action in equity against the Authority could be instituted only in Dauphin County.

On that appeal, it was argued that, under Pa. R. C. P. 2103(b), the City could be sued only in Philadelphia County and, if the Authority could be sued only in Dauphin County, “then of necessity two separate actions involving identical issues would have to be instituted by the Storage Companies in two separate actions.” We pointed out that, under Pa. R. C. P. 1006(c), both the Authority and the City could now be sued in Dauphin County.2 3Applying the amended Rule 1006(c), we stated that the “action can now be transferred by the court below from Philadelphia County to Dauphin County . . . and a multiplicity of suits can be thus avoided.” (p. 628).

When the record was returned to the court below, that court entered an order transferring the case to Dauphin County and subjected not only the Authority [415]*415but the City, Lavino and Terminals to the transfer order. Prom that order, Terminals has now appealed to this Court.3

Terminals presents three issues on this appeal: (1) whether the prior decision mandated the transfer of this action to Dauphin County insofar as Terminals is concerned?; (2) if Pa. R. C. P. 1006(e) authorizes the transfer of this action insofar as Terminals is concerned, is not Terminals deprived of due process and would not such transfer order offend both the United States and the Pennsylvania Constitutions?; (3) do the Pennsylvania Rules of Civil Procedure authorize venue in Dauphin County as to Terminals, a Pennsylvania corporation which maintains its principal and only place of business in Philadelphia County, on a cause of action which arose in Philadelphia County and where neither the Authority, the City, Lavino or Terminals was ever served in Dauphin County?

The first issue clearly must be resolved in favor of Terminals. Terminals was not a party to the former appeal and is not and cannot be bound by it. When, in answering the contention that the City could only be sued in Philadelphia County, we pointed out that under the amended Rule 1006(c) the City could be sued in Dauphin County and that the court below could now transfer the action insofar as the City and the Authority were concerned to Dauphin County. Whether the action against Lavino and Terminals was transferable was not raised before us and we in nowise considered or contemplated that Lavino and Terminals were encompassed within the letter or the [416]*416spirit of the suggestion as to transfer made in our decision. The court below, interpreting our previous decision as mandating the transfer of the action against Lavino and Terminals, fell into error.

Although the court below was in error in concluding that our previous decision mandated that the entire action be transferred to Dauphin County, this does not necessarily mean that the decision to transfer the entire action was incorrect under our Rules of Civil Procedure. There are two provisions in our Procedural Rules which would authorize a transfer of this action to Dauphin County. Rule 1006(e) provides for a transfer where the venue is initially wrongly laid. Rule 1006(d) provides for a transfer, if the venue is properly laid, but a transfer is for the “convenience of parties and witnesses.”

But both of these provisions are subject to the same condition precedent, namely, that the transfer must be to a county which is a proper county in which the venue might initially have properly been laid.

We must therefore first see if this action against all four defendants could initially have been brought in Dauphin County.

Here the Storage Companies joined four defendants in an equity action for an injunction. On the face of the record, all four defendants appear to be necessary parties, since an injunction against less than all might give the Storage Companies inadequate relief.

The joinder being apparently proper, the proper forum for the venue of the action is regulated in Rule 1503(a) (1). Yenue may be laid in any county where the defendant “or a principal defendant” may be served, and all parties not located in that county may be served elsewhere in the Commonwealth by deputized service under Rule 1504(b)(1). This has been our rule since 1859. Since the City, Lavino and Terminals [417]*417all could have been served in Philadelphia, that county was prima facie a proper county for venue against all four defendants.

The Authority, in the previous appeal, correctly asserted that the general rule just quoted does not apply to it because of the special provision of Buie 1508(e) that the action against it must be brought in Dauphin County.

Accordingly, if the Storage Companies had. initially brought the action against all four defendants in Dauphin County, the presence there of the Authority, which is clearly a “principal defendant”, would validate the venue against all four defendants and the three Philadelphia defendants could have been personally served by deputisation in Philadelphia County under Buie 1504(b)(1). The entire action would be litigated in Dauphin County without splitting the action and creating a multiplicity of suits.

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Bluebook (online)
246 A.2d 386, 431 Pa. 411, 1968 Pa. LEXIS 637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-cold-storage-corp-v-philadelphia-pa-1968.