Opinion
April 27, 1960.
May 23, 1960.
Municipalities — Townships — Contracts — Construction contracts — Amount of appropriation — Scope of township's liability — The First Class Township Code.
Where it appeared that a township entered into a contract for certain road repairs on a unit basis per square yard at an estimated aggregate cost of $2500 and allocated the sum of $4000 in its budget for these repairs; that a bonding company issued its performance bond in the sum of $2500 as surety for the contractor, who defaulted on his contract prior to the commencement of any work, whereupon the bonding company entered into a contract with a second contractor to perform the services; that as a result of a severe winter much more extensive road repairs were required, and the second contractor proceeded to do all the necessary work in a workmanlike manner and with the knowledge of township officials who from time to time verbally directed the work, but the township did not appropriate any additional funds for the work and took no official action authorizing a larger expenditure for road purposes; and the second contractor submitted bills totalling $19,829.04 which the township refused to pay without court approval, whereupon this action for a declaratory judgment was brought, it was Held, in view of The First Class Township Code of June 24, 1931, P. L. 1206, §§ 1702 and 1703, that the township's liability to the bonding company was limited to $2500 and its liability to the second contractor was limited to $1500, with the proviso that any additional monies received by the township from the State Highway Department in connection with the work done by the second contractor shall be paid by it to him.
Before JONES, C. J., BELL, MUSMANNO, JONES, COHEN and EAGEN, JJ.
Appeal, No. 201, Jan. T., 1960, from judgment of Court of Common Pleas of Delaware County, March T., 1959, No. 1230, in case of Maryland Casualty Company et al. v. Township of Darby. Judgment affirmed.
Same case in court below: 20 Pa. D. C.2d 543.
Proceedings on petition for declaratory judgment. Before SWENEY, P. J.
Adjudication filed finding for defendant, petitioner's exceptions to adjudication dismissed in part and judgment entered. Petitioner appealed.
Robert B. Greer, with him Leon S. Forman, and Wexler, Mulder Weisman, and Butler, Beatty, Greer Johnson, for appellant.
John F. Cramp, for appellee.
The judgment of the court below entered in this declaratory judgment proceeding is affirmed on the opinion of President Judge SWENEY for the court en banc, reported in 20 Pa. D. C.2d 543.