*1
Guardian Noll, wife, Appellants M. his at No.
v. Newport AREA YMCA and Area HARRISBURG School Boles, District, Marshall, Deanna Thomas R. Jr. BUILDERS, INC., Equipment PADDOCK POOL Paddock Pool Inc., Acquatic Facilities, Company, Paddock Frost Industries, Inc. and YMCA of the USA. Appeal INDUSTRIES, of: STA-RITE INC. at No. 26.
Supreme Pennsylvania. Court of
Argued Jan. 1994. Decided June *3 Jacobsen, L. Penders, Audrey Philadelphia, John P. Sta- Rite. Stefanon, for Nolls.
Anthony Harrisburg, NIX, C.J., FLAHERTY, ZAPPALA, and Before CAPPY, MONTEMURO, PAPADAKOS, CASTILLE and JJ.
OPINION MONTEMURO, Justice. appeal Superior
This is an from a decision of the Court (Hudock JJ., Hester, J., Popovich, concurring and dissent- ing) reversing an Order of the Court of Common Pleas of J.) (Natale, Dauphin County remanding the case for a hearing. factual
Cross-petitioner, Industries made a motion for plead leave to amend its answer and new matter to the statute found at 42 repose Pa.C.S.A. The trial court grant refused to leave to finding amend Sta-Rite could plead repose the statute of as a matter law. The Superior Court held that ability plead Sta-Rite’s the statute co-defendant, of repose as a defense turned on the intent of YMCA, in Harrisburg installing diving Area blocks which subject are Superior matter of the instant lawsuit. The *4 Court remanded the case a factual determination of the § provides pertinent part: 1. 42 Pa.C.S.A. in Projects 5536. Construction (a) proceeding brought against General ... a Rule— civil action or any person lawfully performing furnishing design, planning, construction, supervision, any or observation of or construction of improvement years to real must be within 12 commenced completion after the of construction of such to recover damages for: (3) Injury person wrongful arising to the or for death out of such deficiency. trial court was to determine after which the intent YMCA allowed. pleading should be anew whether Sta-Rite’s (1) whether in for our review are: presented The issues Compo- in McConnaughey Building of our decision light (1994) Inc., nents, 95, (Papadakos, A.2d 1331 J. 536 Pa. result), joining concurring and three with two Justices by the statute as a protected is within the class Sta-Rite (2) manufacturer; starting question whether the blocks For the meaning within the of the statute. improvements are follow, Superior that we reverse the order reasons Court, 219 and affirm the trial to amend its answer. refusing court’s order Sta-Rite leave May facts follows. On pertinent are as Noll, years age, dove from a Christopher Plaintiff then Branch swimming pool into a the West Shore starting block Noll into 3 and feet of water and of the YMCA. dove % injuries. starting This block was manu- quadriplegic suffered Plaintiffs com- factured and sold co-defendant Sta-Rite. against menced this action Sta-Rite and co-defendant Harris- by Complaint September filed on 1988. Sta- burg YMCA on February Rite filed its answer with new matter risk, comparative negli- raising assumption the defenses of the change product, of the and misuse gence, substantial repose It the statute of as a defense. product. plead did later, years March three Sta-Rite filed Motion On plead the statute of for Leave Amend New Matter were not repose. starting The trial court held blocks therefore, estate, and, could improvements repose. not assert the affirmative defense the statute of held that appealed Superior The case was Court which improvement depended status as an on the starting block’s installing Superior the blocks. The intent YMCA evidentiary hearing for an to deter- Court remanded the case mine the intent of the YMCA. Plaintiff and co-defendant Sta- appeal this court for an allowance of petitioned Rite both granted. which we
279
this case comes to us from a denial of
Procedurally,
procedural
motion to
its answer. The first
Sta-Rite’s
amend
must
in this case is
the denial of
issue we
address
whether
to
a final
pleading
appealable
Sta-Rite’s motion
amend its
is
only
may
appeal
order.
It is well settled that
final orders
be
3412;
Cox,
331,
v.
Realty,
ed. Pa.R.A.P.
T.C.R.
Inc.
Pa.
(1977).
337,
721, 724
v. Litton
372 A.2d
See also Schaffer
Inc.,
123, 125,
360, 361,
539 A.2d
Systems
Pa.Super.
denied,
(1988)
583,
520 Pa.
We
*6
repose
to include the statute of
complaint
allowed to amend its
is that
a
of law. The rule
this Commonwealth
as matter
liberally
to
should be
allowed. Poster
pleadings
amendments
nack,
24,
351;
421
at
A.2d at
Tanner v. Allstate Ins.
Pa.
218
(1983). However,
Co.,
132,
1164
Pa.Super.
321
467 A.2d
proposed
allowed where the
amend
amendment will
be
Posternack, 421
a
rule of law.
Pa. at
against
positive
ment is
Betz,
614, 618,
24,
351-52;
Pa.Super.
372
218 A.2d at
Grim
Tanner,
137,
1365,
(1988);
at
467
Pa.Super.
A.2d
1367
321
539
a
against
Allowance of an amendment that is
A.2d at 1167.
delay
“cause
and
rule of law would be futile and would
positive
court
opposing party
waste the resources of the
and
Tanner,
having
against
proposed
to defend
amendment.”
Thus,
138-39,
at
if
Pa.Super.
321
at
467 A.2d
Sta-Rite
of the statute of
the motion to
repose
is entitled to the defense
However, if
is not
granted.
amend should be
enti
defense,
futile and the
tled to the
the amendment would be
therefore,
must,
motion should be denied.
determine
We
may
repose
assert
the statute of
as a
whether Sta-Rite
claim as a matter of law.
plaintiff’s
defense
42 Pa.
Pennsylvania
repose
statute of
is codified at
provides
pertinent part:
C.S.A.
5536 and
rule____
(a)
proceeding brought
a civil action or
General
lawfully
furnishing
against any person
performing
construction,
planning, supervision or observation
design,
any improvement
or construction of
must
years
completion
within 12
after the
be commenced
damages
to recover
for:
improvement
construction of such
(3)
arising
to
or for
death
out of
Injury
person
wrongful
...
deficiency
such
repose,
5536 is a statute of
rather than a statute
Section
127,
372
at
Systems,
Pa.Super.
limitation.
v. Litton
Schaffer
Co., Inc.,
(quoting
A
under the statute
(1)
supplied
must
what is
is an
repose
show:
(2)
years
elapsed
more than
have
be
property;
twelve
completion
tween the
to the real estate
improvements
(3)
injury;
activity
moving party
must
protected by
be within the class which is
the statute. McCon
1333;
536 Pa.
637 A.2d at
naughey,
Schmoyer,
at
Gnall
at 694. See also
v. Illinois
(M.D.Pa.1986).
F.Supp.
Water Treatment
It is undisputed by
years
that twelve
parties
have
*7
elapsed
swimming
from the time the
blocks were installed and
the Plaintiffs injuries.
year
The twelve
run
period begins to
when
project
completed
the entire construction
is so
that it
general
can
by
public.
be used
the
v. Fetterhoff,
Fetterhoff
440-41,
denied,
Pa.Super. 438,
30, 31,
354
appeal
(1986);
Products,
Pa.
In of light our in McConnaughey, recent decision must we address the of issue whether Sta-Rite is within the class which protected by
is the In a McConnaughey, plurality statute.3 of Concurring Opinion suggests Majority 3. The that the should not have prong this the discussed of test out of order. We to this chose discuss prong the importance of test out of order due the to recentness and of McConnaughey only was which handed down weeks before our consid- Concurring Opinion eration of this case. The asserts our also disagree is McConnaughey, discussion dictum. We we as believe that pending during argument which was the of instant case the and was more nothing this held that a manufacturer who does Court is incorporated a which later supply product than defective is property by into an others not within to purview McConnaughey, the of the statute.4 Pa. at a McConnaughey at 1334. involved manufacturer A.2d into roof who the plates incorporated metal trusses asserted plates allegedly statute as a defense the repose when to that the collapse. cracked and caused the trusses We found activity per the statute was the proper interpreting focus formed, protection the of the party claiming i.e. whether design, involved planning, supervision, statute was in the of an improve- construction or observation of construction it, during inextricably handed consideration is tied to the down our argued present controversy. parties consistently princi- have ples underlying McConnaughey without of that Fur- benefit decision. ther, original solely impulse it to decide this case on the was our principles McConnaughey prior complete understanding our to of the similarity McConnaughey, with believe that instant facts. Due we utterly the bar would have been confused if we had failed to address why opinion apply principles set in that did not here. McCon- forth naughey plurality opinion itself was which left this area of the law Concurring Opinion philosophy tends to unsettled. While promote judicial economy, we believe that our consideration of McCon- vintage, naughey, only parties. its In in view of recent fair addition, provide decision case we believe that our in the instant will guidance question on the bar a maximum of this resolves it with majority approach accord with a courts and commentators. The would issue for a the concurrence unsettled would wait leave finally managed third case to an issue most courts have resolve attempt. we feel is resolve in one This unwise and would leave *8 Also, unnecessary lower and the in a state of confusion. courts bar Concurring Opinion suggests this footnote 1 of the that issue was not parties properly this review the consistent- before court. Our finds that ly argued principles underlying McConnaughey throughout the these proceedings. Concurring Opinion implies 4. The that we did not make such holding agree McConnaughey. We we did not whether in that decide defendant, Building by Components, protected the the statute of was only genuine repose. agree a of We also that we decided that issue Building Component’s fact existed as the extent of involve- material to trusses, and, therefore, that was ment in the installation of roof the case However, undeniably ripe summary judgement. underlying for holding principle which this was was our that on decision founded repose. of To protected manufacturers are not under the statute suggest interpretation simply an incorrect McConnau- otherwise of ghey.
283
3,
F.Supp.
(Second)
be under-
would
Torts]
the Restatement
§ 402a of
that the statute of
to claim
if manufacturers were able
mined
merely
products
because their
liability
them of
repose relieves
”)
property.’
‘improvements
somehow become
have
not included
rule, manufacturers are
Thus,
a general
as
by the statute.
protected
class
However,
remains on
inquiry
the focus of the
exper
“individual
whether
particularly
activity performed,
Pa. at 101 &
McConnaughey,
See
supplied.
tise” has been
Thus, we do not exclude
at 1334 & n. 3.
n.
as a matter
protection
from the statute’s
manufacturers
a manufacturer
case is one which
find the instant
law. We
design
improve
of an
expertise”
supplied “individual
(cid:127)
that the dimen
in this case demonstrates
ment. The record
deck to water dimen
included an “unusual”
pool
sions of this
75A).
(R.R.
contractor, Pad
pool
at
The
sion of 12 inches.
Builders,
from
diving
ordered
blocks
Sta-Rite
dock Pool
to the unusual
pool
which related
drawings
included
(R.R.
79A).
shipped
at
height.
Sta-Rite
deck
water
drawing.”
their
“per
read
Blocks with an invoice which
Diving
(R.R.
74a).
shipped
which was
recognize that the block
at
We
(R.R.
80A). However, Sta-Rite
stock item
was a standard
the unusual
drawings including
to examine
required
was
diving
blocks.
height prior
shipping
to water
deck
drawings
examine the
if
did no more than
Even
Sta-Rite
appropriate with
product
its standard
was
determine
situation,
modifications,
in the instant
as
was the case
appears
and was involved
expertise”
“individual
expended
Thus, under the
alleged improvement.
design
with
case,
is within
conclude that Sta-Rite
facts of this
we
unique
by the statute.5
protected
the class
every
may bring itself within the
suggest that
manufacturer
5. We do not
specifications”
by shipping
goods "per
protected
the statute
its
class
drawing.”
unique facts of this case lead us to believe
"per your
expertise
supplying
its
actually expended individual
that Sta-Rite
actually
a manufacturer
has
product. Without
facts that
indicate
improve-
design
of an
supplied
expertise in the
or construction
such
*10
of our
misperceives
holding
concurrence
the focus
here
today.
holding
prong
It
our
is incorrect
this
believes
because
just
activity
abstract,
not on
in
performed
“focuses
the
the
but
activity performed
on the
in relation
real property.”
to
Con-
However,
curring
original).
at 3
Opinion
(emphasis
the
this
precisely.
is our argument
apparently
The concurrence is
impression
today
under the
that our
holding
rests on
belief
expended
that
Sta-Rite
“individual
the manufac-
expertise”
turing
product—the starting
of its
themselves.
In-
blocks
stead,
holding,
our
on
“contri-
properly interpreted, rests
bution or acts
in relation
improvement
done
to the
real
property.”
The final required determination under the is wheth- statute er the blocks diving manufactured Sta-Rite and attached to swimming pool of co-defendant are improvements YMCA to property. real We have previously improvement defined an as: estate) valuable addition made to property (usually
[a] real condition, or an amounting amelioration its to more than mere or repairs replacement, costing labor or capital, value, or utility intended to enhance its it beauty adapt purposes new or further ... along product, ment with its is not manufacturer within class protected by the statute. 286
McCormick, Pa. at A.2d at 909 Black’s (quoting 564 Dictionary). Law case,
For of the instant and to end the purposes as Superior confusion in the cases of the Court as well found law, necessary we it interpreting in the federal courts our feel expound this definition. upon perma An everything includes See 41 Am.Jur.2d value of nently property. enhances the Farm v. (citing Kentucky & Cattle Co. Improvements Williams, Drennen & Co. (D.Ky.1956); F.Supp. D. (1896); Mercantile Trust & Ala. So. *11 799, Realty County, Bros. Co. v. Douglas Watson 149 Neb. 32 Jones, 562, Williamson v. (1948); 43 27 763 N.W.2d W.Va. (1894). Commonly, 411 include: erection improvements S.E. ones; building; buildings of a old with new substan replacing building necessary preserve building; tial to repairs to a or making changes existing additions to substantial fences; sidewalks; and buildings; construction of erection of sites. See 41 Am.Jur.2d building of land for preparation Improvements § 1. § that 5536 the appears purposes
It
is
or
is at
problematic
personalty
most
area
where chattel
See,
Elec.
e.g.,
Radvan v. General
to
tached
property.
denied,
501,
(1990),
appeal
394
The
Court
considered
law fixtures as set
Bioni,
forth in Canon-McMillan Sch. Dist. v.
127 Pa.Commw.
(1989),
concluded,
We believe that the of parties intention the is the of type intent that should in determining be considered object whether an has purposes become fixture the 288 § actual state of 35 Am.Jur.2d Fixtures 15. The 55366 See
§
object’s installation is of
at
time of the
parties
mind of the
the
Id.
5536. See
§
In
purposes
for the
consequence
little
perma
stead,
objective
parties
intent
we look
by
as evidenced
property
a chattel into real
nently incorporate
into
circumstances entered
surrounding
proven
facts
Treadwell, 217 F.2d
& Co. v.
See Nelse Mortensen
evidence.
Butler,
v.
(9th
189,
Cir.1954);
136 Me.
Thus,
that a court must make
we conclude
object
pur-
an
is a fixture for the
of whether
determination
a deter-
making
§
considerations
such
5536. The
poses
to which and manner
degree
include:
may
mination
see Canon-
property,
object
is attached
which
855; Gore,
McMillan,
at
113
at
561 A.2d
127 Pa.Commw.
Bank,
915;
McCarthy
283
537 A.2d at
Pa.Commw. at
(1980);
35 Am.Jur.2d
Pa.Super.
Royal
object,
Fixtures
removing
§
see
the ease
Store,
(1957);
253-54,
A.2d at 273-74
Fixtures
object may
be removed
whether
Am.Jur.2d
v. Mesta
see Kaczmarek
property,
the real
damaging
without
Hess,
In re
(W.D.Pa.1971);
Mach.
F.Supp.
required
type
of intent
specifically decline to comment on
6. We
Section 5536.
In the absence of
definition
outside of the context of
legislature,
today attempt
we
to reconcile the
"improvement”
our
purposes
of Section 5536. We
age-old tenants of
law with
objective determination of intent works best for determin-
find that an
object
purposes of the statute of
ing
an
is a fixture for the
whether
for the law of fixtures is the
repose. The more traditional context
grantee-grantor
the tenant
or
context.
In this situation
tenant-landlord
property.
question
to the real
grantee
attaches a betterment
pass to
this betterment
is a fixture that should
then becomes whether
subjective
grantor upon transfer of the land. A more
the landlord or
*13
context,
analysis may
required
question
this is a
for
be
in this
but
day.
another
(W.D.Pa.1986);
v.
Koppelman,
Pa.Super.
B.R. 247
Brandt
236, 239,
666,
(1951),
object
how
has
long
82 A.2d
the
been
Schmoyer,
Pa.Super.
see
at
property,
attached
(children’s
593,
permanently
In
judge
objective
the instant case the trial
made such an
diving platforms
review of the
and concluded that they were
not an improvement
they
because
were
pool by
“removable and attached to the
Noll v.
bolts.”
Builders, Inc.,
S1987,
Paddock Pool
slip op.
No. 4719
at
(Court
1991).
Pleas,
Dauphin County. Aug.
Common
The decision to
permit
pleadings
refuse amendment
is a matter committed to the discretion of the trial court.
Posternack,
351;
We abuse discretion in refusing Sta-Rite’s Motion to Amend its Answer and New Matter. order of the Superior We reverse the Court and Dauphin reinstate the order the Court of Common Pleas of County.
CAPPY, J., concurs. Mr. sitting by Justice FRANK J. MONTEMURO is designation as pursuant Assignment Senior Justice to Judicial R1800, Docket No. 94 unavailability due to the of Mr. Justice LARSEN, ROLF see No. Judicial Administration Docket No. filed October 1993.
CAPPY, Justice, concurring. I concur in the conclusion that Majority’s the trial court did its discretion in denying abuse Sta-Rite’s Motion to Amend its Answer and New Matter plead the statute repose found at 42 I specifically, agree Pa.C.S. More repose that Sta-Rite is not entitled to assert the statute of starting because the it manufactured not improve- blocks are ments to real property. First,
I write for separately given two distinct reasons. its issue, I disposition improvement do not believe that the Majority should remaining require- have discussed the two ments for protection repose. under the statute of As the states, Majority correctly moving protection repose
A under the statute party (1) an supplied must show: what is (2) years elapsed more than twelve have between property; to the real estate and completion improvements (3) moving party must be injury; activity the statute. protected by within the class which is (citations omitted).) Opinion p. moving (Majority Therefore, satisfy prongs all three of this test. party must Majority’s starting improve conclusion that the are not blocks satisfy does not property—ie., ments *15 inquiry.1 of have the prong first the test—should ended to Majority’s necessary remainder of the discussion thus is not prongs the and must be viewed as dicta. Had the three result order, in the stated order—rather than out of been addressed superfluity the to them—the Majority as has chosen address prongs of the discussion of two and three would have been obvious.
Second, I
substance of the
respectfully disagree with the
with
whether
Majority’s analysis
respect
prong:
third
within
class
the
activity
protected by
Sta-Rite is
the
Majority’s
addressing
prong,
statute. The
insistence on
this
improve-
its
that the
is not an
despite
finding
product supplied
ment, has
it to
analysis
“activity”
caused
distort the
result,
prong by taking
prong
that
out of context. As a
Majority’s attempt
clarify
pronounce-
to
the Court’s recent
Inc.,
ments in
McConnaughey
Building Components,
(1994), only
Pa.
In that McConnaughey, explained the Court only protects persons the statute the acts those involved supervision, in the construction or obser- design, planning, prop- vation the construction an to real improvement nothing a manufacturer more than erty When does itself. Recognizing negative question answer this threshold dis to matter, only prong posed of the the trial court addressed the first Superior only prong. appeal, test. On Thus, Court also addressed the first questionable remaining prongs of the test are it is whether the appeal. properly are even before Court on issues that this supply component products improvement for an property, protected by the manufacturer is not the statute. The fact that a manufacturer designs plans compo- products incorporated nent which later are into an improve- ment to irrelevant under the statute. The Pennsylvania repose statute of was not intended to apply suppliers products, only manufacturers but perform kinds of economic actors who acts of “individual expertise” commonly thought performed akin to those to be by builders. (Opinion Announcing
Id. at
(1989) (quoting Leach v.
Fund
Philadelphia Savings
Society,
(1975))
Thus, just the final prong “activity,” focuses on the abstract, performed activity but on the performed in *16 relation to the property. provide admittedly real To an dressmaker, extreme illustration of a my point: while for example, might be said to an act of perform “individual in expertise” designing constructing garment, it would engage be ridiculous to in a discussion of whether his or her by activities fall within the class protected the statute of repose. The dressmaker’s acts simply performed are not “in relation to an improvement property.” By to real addressing, whether Sta-Rite “individual in provided expertise” supplying that, Majority implies McConnaughey, 2. The in this Court held that the Appellee component part improve- was "the manufacturer of a of an statute, protection ment” and therefore not entitled the of the 283.) However, repose. (Majority Opinion p. at the Court in McCon- naughey question Appellee did not decide the ultimate of whether Building Components, protected by repose. Inc. was the statute of Rather, genuine the Court held that a issue of material fact existed as to Appellee’s the extent of the involvement in the installation of the roof trusses, ripe summary judgment. and therefore that the case was not to real not an is item that it determines an that it discussion up a contrived Majority sets property, “unique by limiting application its qualify then must 5.) 284 n. (Majority Opinion p. at this case.” facts of that the of discussion first for the sake Majority pretends to them as referring “improvement,” are an starting blocks (Id. 284.) However, the at p. alleged improvement.” “the this discussion following can conclude Majority most that the expertise individual in actually expended is that “Sta-Rite added.) (Id. 5; p. emphasis at 284 n. product.” its supplying and an im- activity performed relationship No between is established. provement Furthermore, Majority’s applies only discussion one-half in activity that was set forth protected of the definition of the on whether Majority focuses Sta- McConnaughey. While McConnaughey what expended expertise,” Rite “individual “acts of ‘indi- is that the acts be actually requires performed commonly thought per- akin to those to be expertise’ vidual McConnaughey, 536 Pa. by formed builders.” added). further (emphasis McConnaughey A.2d at 1334 moving ... operative question [the that “the is whether states merely supplies’ ‘furnished construction’ or ‘furnished party] A.2d at 1334. Id. at to be used construction.” for the upon very are founded basis These statements explained, As this has the statute repose. statute of Court and builders: suppliers draws a rational distinction between thousands, items Suppliers, typically produce who standards easily high quality-control can maintain builder, A on factory. controlled environment hand, designs only his and construction pre-test other can years following in the construction ways—actual limited use Further, building unique every test. only is their parts. of its complex component and far more than subdivision, uniform-looking Even in the most suburban land; may lot separate plot on a each each house stands *17 conditions; may be near an soil one slightly have different stream; Legislature forth. The can and so underground that the conditions under which builders rationally conclude work are difficult sufficiently that hmitations should be placed liabilities, on their but not on the suppli- liabilities of ers.
Freezer Storage, Inc. v. Armstrong Cork 476 Pa. (1978) (upholding constitutionality of statute of repose). presented here,
Under the facts merely supplied a product, albeit one within its “individual expertise.” It did not provide the type activity “commonly thought per be by formed builders.” If we were to permit every manufactur who, in work, er performing its required was specifi to meet cations or to employ its “expertise,” we would be expanding the protection of the statute of repose beyond far its acknowl edged I limits. simply do not believe that this was the Court’s intention in McConnaughey.3
The Majority appears to believe that
its discussion does
limit
statute,
the reach of the
for in footnote 5 it states: “We
do not suggest
that every manufacturer may bring itself
within the
protected by
class
by
the statute
shipping its goods
”
‘per specifications’
‘per your
drawing,’ and refers to the
“unique facts of this
justification
case” as
for extending However,
statute here.
the Majority has identified
nothing
all “unique” about the manufacturer’s activity in this case.
unique
What was
in this case was
pool;
all the manufac-
turer did was ship a
“per
standard item
Pool
[Paddock
Build-
(See
drawing.”
284.)
ers’]
Majority Opinion at p.
judice
3. The case
markedly
sub
contrasts
with McCormick v. Columbus
Conveyor Company,
(1989),
522 Pa.
Decided June Aug. Denied Rearguments and Clarification
