Wilkinsburg Borough School District Case
Wilkinsburg Borough School District Case
Opinion of the Court
Opinion by
One P. W. Finn had a contract to erect a building for the school district of the Borough of Wilkinsburg; a dispute arose over a fund alleged to be due him, and the school district paid the money into court under the Act of April 22, 1903, P. L. 255, as more fully stated in our opinion on a former appeal reported in 234 Pa. 373. The present appeal is from an order of the court below discharging a rule taken by the school district for the return to it of the fund in question and making absolute a rule on behalf of the Commonwealth Trust Company, trustee in bankruptcy for Finn, for the payment of the fund to it. When the case was here before, we reversed a similar order because the Common Pleas had not passed upon the constitutionality of the Act of 1903, supra; but subsequently, in Smith’s App., 241 Pa. 336, we declared that act unconstitutional. After the Smith decision, the rules to obtain possession of the fund were renewed, and the court below made the order now complained of. The school district contends that, since the act under which it paid the money into court was void, all the proceedings thereunder were of no effect, and the fund should
All we said in our prior opinion concerning the duty to make distribution of the fund, was meant to apply only in case the court below found the Act of 1903 constitutional ; but when it found this act, under which the money was paid into court, invalid, then it had no further jurisdiction or power in the premises, other than to dismiss the original petition and return the fund to the source from which it came. When the money is again in the hands of the school district, the contractor’s trustee in bankruptcy may bring his action in the court below, the school district may enter its defense, and the various issues between these parties, sought to be tried out in the present proceedings, can be adjudged; we do not now determine any of these issues, but simply decide that the money must go back to the school district, so that all parties may be placed in the same position that they would have occupied had the fund never been paid into court.
The mere payment of money into court, ordinarily, does not prejudice the rights of the payor to enter a defense to the whole cause of action [Elliott v. Lycoming County Mutual Ins. Co., 66 Pa. 22; Baltimore & Ohio R. R. Co. v. Veltri, 37 Pa. Superior Ct. 399, 404], and we find nothing in the statutory proceedings at bar, or in the pleadings thereunder, to work an estoppel in law that would forbid the school district asserting against this fund its claim for damages, alleged to have been suffered prior to the payment of the money into court, through the failure of Finn to complete his contract. All the admissions claimed to be present in the pleadings in this case, to the effect that the school district in fact owed the contractor the amount paid into court, can be
Although none of the following cases is controlling here, yet they discuss relevant principles, more or less illustrative of the subject of estoppel: See, Eldred v. Hazlett’s Administrator, 33 Pa. 307, 316; Ormsby v. Ihmsen, 34 Pa. 462, 471-2; Helser v. McGrath, 52 Pa. 531, 534; McKerrahan v. Crawford, 59 Pa. 390, 392. It is true that in Smith’s Appeal, supra, we directed the fund in court to be paid to the personal representative of the deceased contractor, instead of ordering its return to the one who had paid it in; but there the public owner admitted that the money belonged to the estate of the contractor and made no claim to its return.
The assignment of error is sustained and the order of the court below is reversed. The record is remitted with directions to return the fund, less proper costs, to the
Case-law data current through December 31, 2025. Source: CourtListener bulk data.