No. 80 April Term, 1977, Appeal From the Decree of the Court of Common Pleas of Cambria County, No. 1974-373, Civil Action in Equity.
Blair V. Pawlowski, Ebensburg, for appellant.
Richard B. Hutchinson, Ebensburg, for appellee.
Watkins, President Judge, and Jacobs, Hoffman, Cercone, Price, Van der Voort and Spaeth, JJ.
[ 249 Pa. Super. Page 421]
Appellant, Barr Township, contends that the chancellor erred in impressing a constructive trust on funds paid to it by the Barnes and Tucker Coal Company. We affirm the decree of the lower court.
In 1971, residents of Barr and Blacklick Townships, Cambria County, began suffering a reduction in their water supply due to the mining operations of the Barnes and Tucker Coal Co. Residents of the townships, township supervisors and officials of the Coal Company met to discuss and resolve the water supply problem. The Coal Company agreed to help appellant defray the cost of constructing a new water supply system and, consequently, it requested appellee, a licensed civil engineering firm, to prepare a feasibility report for a water supply and distribution system
[ 249 Pa. Super. Page 422]
for appellant. Appellee prepared four plans or schemes for a proposed water system, each one with a lower estimated cost.*fn1 Finally, Barr Township supervisors and Barnes and Tucker agreed to implement appellee's Scheme IV.
This plan included an estimated engineering cost of $5,500. Appellee prepared a bill, dated October 7, 1971, for the formulation of the feasibility report. He submitted the $1,637.51 bill to the Barr Township supervisors marked to the attention of Mr. Joseph Wenturine, a township supervisor. Mr. Wenturine gave the bill to Barnes and Tucker who paid it.
On November 4, 1971 Barr and Blacklick Townships and Barnes and Tucker entered into an agreement pursuant to which the company agreed to pay Barr Township $66,000. in order to implement Scheme IV as prepared by appellee. The agreement provided in pertinent part:
"WHEREAS, in a feasibility report prepared by L. Robert Kimball, there appears a revised Scheme IV, which scheme in the opinion of the Supervisors should be implemented as soon as possible in order to alleviate any water loss problems.
"NOW, THEREFORE, in consideration of these premises and other good and valuable considerations, the ...