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LEVY v. LEASEWAY SYSTEM (09/16/59)

September 16, 1959

LEVY, APPELLANT,
v.
LEASEWAY SYSTEM, INC.



Appeal, No. 250, Oct. T., 1959, from order of Municipal Court of Philadelphia County, March T., 1958, No. 2766, in case of Jacob H. Levy, trading as Towne Engineering Company v. Leaseway System Incorporated. Order affirmed.

COUNSEL

Samuel I. Sacks, with him Lee B. Sacks, for appellant.

Albert C. Gekoski, for appellee.

Before Rhodes, P.j., Hirt, Wright, Woodside, Ervin, and Watkins, JJ. (gunther, J., absent).

Author: Watkins

[ 190 Pa. Super. Page 483]

OPINION BY WATKINS, J.

This appeal arose out of a complaint in assumpsit brought by a registered professional engineer, Jacob H. Levy, trading as Towne Engineering Company, the appellant, against Leaseway System Incorporated, the appellee, for compensation based on an alleged written agreement to prepare plans and specifications for a shop and office building at 31st Street and Glenwood Ave, Philadelphia, Pennsylvania. A copy of a letter prepared by the appellant and accepted by the appellee, which is the alleged contract upon which the suit is based reads as follows:

[ 190 Pa. Super. Page 484]

"Subject: Shop and Office Bldg., 31st St. and Glenwood Ave.

November 10, 1956.

"In confirmation of our verbal agreement of Nov. 7, 1956 we will prepare plans and specifications for the new Shop and Office Building to be erected at 31st St. and Glenwood Ave., Phila., Pa. for a basic fee of seven percent (7%) of the net final cost of construction of this project, our services for this basic fee will include: the preparation of preliminary plans for your approval; the preparation of detailed working drawings and specifications after approval of preliminary plans, required for the construction; furnishing 5 copies of such plans and specifications for your use; assisting in the negotiating and awarding of a general contract for the total work; and general supervision of the project during construction by periodic visits to the site as often as necessary, reporting on the progress and guarding against defects and deficiencies in the work of the Contractor but without a guarantee as to the performance of the contract by the Contractor; and the checking and approval of the Contractors requisition for payments.

"The basic fee is to be based upon the net final cost of construction, which net cost includes the cost of the entire work including labor, materials and use of equipment but not including cost of land or the engineering fee. This fee is compensation for our services and 70% of the total fee is to be paid upon completion of the contract plans and specifications, the balance of the fee to be paid in monthly payments until the aggregate of all payments equals the total amount due or 7% of the total cost of the construction of the project. Should the execution of ...


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