Tuesday, March 26, 2013

Pennsy Supply, Inc. v. American Ash Recycling Corp case brief

Pennsy Supply, Inc. v. American Ash Recycling Corp. case brief summary
2006 PA Super 54; 895 A.2d 595; 2006 Pa. Super. LEXIS 243; 59 U.C.C. Rep. Serv. 2d (Callaghan) 70

A subcontractor (appellant) appealed from a PA court that granted preliminary objections in the form of a demurrer that was in favor of the appellee supplier of materials.

-The subcontractor was involved in a state project and was hired to do paving of driveways and a parking lot.
-It contracted with the supplier for paving material, which was supplied.
-After the work was completed, the subcontractor ultimately had to replace the materials which were provided because the pavement cracked and requested the supplier reimburse it for remediation work and disposal of the material.
-The subcontractor filed a five count complaint, the supplier filed demurrers on all five counts, and the lower court dismissed the complaint.
-The subcontractor appealed.

The court disagreed with the lower court's conclusion that there was no allegation of consideration to support the subcontractor's breach of contract claim.

-The court also found that, since the subcontractor adequately alleged consideration, its claims for breach of warranty under Article 2 of the UCC were sufficiently alleged as the sale concerned a sale of goods.
-Finally, the law did not prohibit the subcontractor from also alleging promissory estoppel.

OUTCOME: The court reversed dismissal on all five counts and remanded for trial.

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