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COLELLA v. ALLEGHENY COUNTY (01/08/58)

January 8, 1958

COLELLA, APPELLANT,
v.
ALLEGHENY COUNTY, APPELLANT.



Appeals Nos. 198, 199, 200, March T., 1957, from decree of Court of Common Pleas of Allegheny County, Oct. T., 1950, No. 647, in case of A. J. Colella, Inc. and Fidelity and Deposit Company of Maryland v. County of Allegheny. Decree affirmed.

COUNSEL

Frank R. Bolte, for plaintiff.

Hamilton A. Robinson and Dickie, McCamey, Chilcote & Robinson, for additional plaintiff.

Nathaniel K. Beck, County Solicitor, and Philip Baskin, Assistant County Solicitor, with them Arthur L. McLaughlin, III, Assistant County Solicitor, for defendant, County of Allegheny.

Before Jones, C.j., Bell, Chidsey, Musmanno, Arnold, Jones and Cohen, JJ.

Author: Bell

[ 391 Pa. Page 104]

OPINION BY MR. JUSTICE BELL

Plaintiff, a contractor, filed a bill of complaint in equity against the County of Allegheny seeking a cancellation

[ 391 Pa. Page 105]

    and return of its bid bond. The County of Allegheny brought in, pursuant to petition and order of the Court, the Fidelity and Deposit Company of Maryland, which was surety on the bid bond. The County of Allegheny subsequently filed an answer and new matter in which it demanded from the plaintiff and his surety damages in the amount of $69,100, being the actual loss suffered by it, of which amount plaintiff as principal and his surety were liable under the bid bond in the face amount of the bond, viz., $17,500. The Chancellor thereupon held a hearing, made findings of fact and conclusions of law and entered a decree from which each party has taken an appeal.

Pursuant to statutory requirements, Allegheny County by public advertisement invited bids, to be opened June 27, 1950, for a contract for a sewage disposal plant at the Greater Pittsburgh Airport. On June 27, 1950, A. J. Colella, Inc. submitted its sealed bid and its bid bond in the sum of $17,500 with Fidelity and Deposit Company of Maryland as the surety, conditioned upon the bidder not withdrawing its bid within sixty (60) days after the opening of the bids, and entering into a written contract with the County within ten (10) days after the prescribed forms shall have been presented to it for signature. The bond was to remain in effect (1) in the event of the withdrawal of the bid within the sixty (60) days, and (2) upon failure of Colella to enter into a contract with the County, accompanied by a performance bond (in a much larger amount), and (3) upon failure of Colella to pay the difference between the bid amount and the amount which the County would be forced to pay for the work if Colella defaulted.

On June 27, 1950 when the bids were opened, Colella's bid was in the amount of ...


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