82 Pa. Super. 343 | Pa. Super. Ct. | 1923
Argued October 15, 1923.
This is an appeal from judgment entered April 5, 1923, for want of a sufficient affidavit of defense to a municipal claim for street paving. The claim was filed pursuant to the Act of June 4, 1901, P.L. 364: Scranton v. Genet,
As we understand the affidavit, the defense is that, while title and apparent ownership are in defendant, the legal effect of that fact is not what it ordinarily would be; that here the legal words and forms mean something different from their usual meaning, and that this difference results from the acts of Congress; that their effect was to vest "the fee simple estate in said premises ...... and the possession thereof ...... in the United States," with resulting exemption from liability for this paving. We all agree that the effect of the federal legislation is not what appellant contends, but that, on the contrary, it is apparent that Congress intended that land held by defendant should be liable for such claims.
Authorized by federal legislation, the Secretary of Labor caused defendant to be incorporated pursuant to the general corporation laws of Pennsylvania (as stated in appellant's brief) "for the purpose of purchasing, holding, leasing, mortgaging and selling real estate, improving the same and erecting the necessary buildings and structures thereon and therein." It was incorporated as an ordinary business corporation to deal in real estate, and the law under which it was incorporated provides that it may be sued. It has been held that by authorizing the creation of private business corporations to aid the government in conducting the war, Congress indicated its purpose, as to such corporations, to waive governmental immunity from suit and its consequences: Sloan Shipyards Corp. et al. v. U.S. Shipping Board E.F.C.,
We therefore conclude first, that there was no general immunity from suit, and, second, even if, as suggested, the property in substance belongs to the United States, that fact alone does not relieve from liability in the circumstances of this case: U.S. Grain Corp. v. Phillips,
The argument proceeds that though the property be held by appellant, and be liable to execution for corporate defaults, as those decisions hold, it is not liable to taxation, for thereby it may all be taken, or seriously interfered with, and the national purpose frustrated.
There is no averment of fact in the affidavit to support the argument in the brief that the collection of this paving claim "interferes with the exercise of the federal agent's functioning" in any way not intended by Congress. The record shows defendant purchased real estate abutting on 13th Street in Philadelphia, which had never been paved and which would some day need paving, and toward the cost of which first paving, the city could require that property to contribute to the extent of the cost: Hammett v. Phila.,
Appellant's contention that the power here exercised by the city, is the general power to tax, is not in the case and need not now be discussed; we are dealing, not with general taxation, but with the right of the city's contractor to collect from the land for work and labor furnished by him for the immediate benefit of the property in circumstances raising an obligation on the property to pay that sum on demand according to the statute. The difference between the general power to tax, for which the consideration is protection by the State, and the power by special assessment to obtain reimbursement for the value of a benefit conferred on a property is well understood: I.C.R.R. v. Decatur,
Appellant cites Fagan v. Chicago,
Moreover, in addition to the act approved March 21, 1922, C. 112, 42 Stat. 468, amending the act authorizing the President to provide housing for war needs, approved May 16, 1918, (41 Stat. 224), there is legislation to pay claims of this character in the act "making appropriations for the executive and for sundry independent executive bureaus, boards, commissions, and offices, for the fiscal year ending June 30, 1923, approved June 12, 1922," (Chap. 218, 42 Stat. at L. 635, 641), appropriating to "miscellaneous expenses account of property sold: To pay taxes, special assessments, and other utility, municipal, state and county charges or assessments unpaid by purchasers and which have been assessed against property in which the United States Housing Corporation has an interest, and to defray expenses incident to foreclosing mortgages, conducting sales under deeds of trust, or reacquiring title or possession of real property under default proceeding, including attorney fees, witness fees, court costs, charges, and other miscellaneous expenses, $10,000: Provided That the United States Housing Corporation is hereby authorized to allow as an offset any equitable claim in any collection made against any state or any political division thereof."
Judgment affirmed. *349