Appeal from the Order of the Board of Arbitration of Claims in case of Appel Media, Inc., a Corporation, and Appel Visual Service, Inc., a Corporation, v. Commonwealth of Pennsylvania, Clarion State College, Docket No. 254.
Edward P. Zemprelli, for appellants.
Theodore A. Adler, Deputy Attorney General, with him Israel Packel, Attorney General, for appellees.
President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson Jr., Mencer, Rogers and Blatt. Opinion by Judge Blatt. Dissenting Opinion by Judge Kramer.
[ 15 Pa. Commw. Page 636]
On September 3, 1969, the Commonwealth of Pennsylvania, acting through the Department of Property
[ 15 Pa. Commw. Page 637]
and Supplies (Department), accepted the bid of Appel Visual Services, Inc. (Appel Visual) for furnishing television distribution facilities at Clarion State College. Appel Visual's bid was $61,239. On October 15, 1969, the Director of Purchases for the Department was notified that Appel Media, Inc. (Appel Media) would be assuming the contractual responsibility of Appel Visual for the installation of the system, Appel Media having recently contracted with Appel Visual to assume and perform contracts which had already been negotiated by Appel Visual and for which work had not yet been begun. Appel Media is a Pennsylvania corporation engaged in the business of installing and servicing audiovisual equipment and video systems for school and university use.
Installation was begun by Appel Media in December of 1969, at which time the anticipated completion date was February 15, 1970. Problems in installation developed almost immediately, however, and there was a series of meetings and inspections during the ensuing months of 1970 which involved representatives of Appel Media, College personnel, engineers and a representative of the Attorney General. Finally, after an inspection on October 21 and 22 of 1970, the engineer commissioned by the Department issued his inspection report, which detailed numerous defects. Appel Media learned of this report and of the Department's intention to advertise for bids to complete the work, and it then ceased any further efforts to complete the contract, leaving some of its materials on the premises. In November, the Department invited bids from other contractors to complete the installation of the system, and Telesonic Assoc., Inc. (Telesonic) was awarded a $40,000 contract for that purpose on March 21, 1971.
Appel Media filed a complaint in assumpsit with the Board of Arbitration of Claims (Board) to recover payment in full of the original contract price. After
[ 15 Pa. Commw. Page 638]
preliminary objections were filed and dismissed, a hearing was held on May 8-9, 1973. On October 25, 1973, the Board entered an order in favor of Appel Media in the amount of $24,139, a figure arrived at by subtracting the cost of completing the work from the original contract price and adding interest. Appel Media filed a timely appeal with this court, asserting that it is entitled to the entire contract price plus interest.
The scope of our review in an appeal from an order of the Board is governed by Section 8(c) of the Act of May 20, 1937, P.L. 728, as amended, 72 P.S. § 4651-8(c) which provides in part: "After hearing, the court shall affirm the order unless it shall find that the same is not in accordance with law. The findings of the board as to the facts, if supported by substantial evidence, shall be conclusive." Substantial evidence is the relevant evidence acceptable by a reasonable mind as adequate to support a conclusion. Penn-Jersey Contractors, Inc. v. The General State Authority, ...