Scungio Borst & Associates v. 410 Shurs Lane Developers, LLC
146 A.3d 232
Pa.2016Background
- SBA (Scungio Borst & Associates) performed construction work for 410 Shurs Lane Developers, LLC (410 SLD) under written and oral contracts and was owed roughly $1.5 million when work stopped in 2006.
- SBA sued 410 SLD, alleged successor Kenworth II, LLC, and 410 SLD part-owner/officer Robert DeBolt (in his personal capacity), asserting among other claims a violation of the Contractor and Subcontractor Payment Act (CASPA).
- DeBolt moved for summary judgment contending CASPA liability runs only to the contracting party (not to non-contracting agents); SBA argued CASPA’s definition of “owner” (73 P.S. § 502) includes agents acting with authority and thus permits suit against DeBolt personally.
- The trial court granted DeBolt summary judgment; SBA obtained default judgment against 410 SLD and Kenworth and appealed the dismissal of DeBolt.
- The Superior Court (en banc) affirmed, concluding CASPA does not clearly and unambiguously impose personal liability on owners’ agents and that Section 2’s agent language was meant to bind agent conduct to the owner rather than make agents personally liable.
- The Pennsylvania Supreme Court granted review and affirmed the Superior Court: CASPA does not permit contractors to maintain claims against property owners’ agents in their personal capacities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CASPA authorizes a contractor to sue an owner’s agent personally for unpaid contract payments | Section 502 defines “owner” to include “agents of the owner acting with their authority,” so agents (like DeBolt) are liable as owners under CASPA | CASPA’s operative provisions focus on the party with whom the contractor contracted; imposing personal liability on agents departs from agency and contract law and would make agents guarantors absent clear legislative intent | The court held CASPA does not permit actions against owners’ agents in their personal capacity; Section 502 is ambiguous and other statutory text, purpose, and agency law support no agent liability |
Key Cases Cited
- Scungio Borst & Assocs. v. 410 Shurs Lane Devs., LLC, 106 A.3d 103 (Pa. Super. 2014) (en banc) (Superior Court opinion affirming no CASPA liability for owner’s agent)
- Ruthrauff, Inc. v. Ravin, 914 A.2d 880 (Pa. Super. 2006) (describing CASPA’s purpose to encourage fair dealing among construction-contracting parties)
- Vernon D. Cox & Co. v. Giles, 406 A.2d 1107 (Pa. Super. 1979) (agency principle that disclosed principal’s agent is not personally liable on principal’s contracts absent agreement)
- Revere Press v. Blumberg, 246 A.2d 407 (Pa. 1968) (illustrating limits on personal liability of corporate officers for corporate contracts)
- Mohney v. McClure, 568 A.2d 682 (Pa. Super. 1990) (addressing circumstances in which actions against officers/agents may be permissible under analogous wage-payment statute)
- Delaware River Port Auth. v. Pa. Pub. Util. Comm’n, 145 A.2d 172 (Pa. 1958) (presumption that legislature will make express statements when altering common-law principles)
