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SHAMOKIN AREA SCHOOL AUTHORITY v. FARFIELD COMPANY (JADEN ELECTRIC DIVISION) AND AMERICAN ARBITRATION ASSOCIATION. APPEAL FARFIELD COMPANY (JADEN ELECTRIC DIVISION) (12/23/82)

filed: December 23, 1982.

SHAMOKIN AREA SCHOOL AUTHORITY
v.
THE FARFIELD COMPANY (JADEN ELECTRIC DIVISION) AND AMERICAN ARBITRATION ASSOCIATION. APPEAL OF THE FARFIELD COMPANY (JADEN ELECTRIC DIVISION)



Consolidated appeals at No. 1141 Philadelphia, 1981 and No. 2252 Philadelphia, 1981, Appeal from the Decree of the Court of Common Pleas, Civil Division, of Northumberland County, at No. 1347.

COUNSEL

Kenneth I. Levin, Philadelphia, for appellant.

Paul L. Seave, Shamokin, for appellee.

McEwen, Johnson and Watkins, JJ.

Author: Watkins

[ 308 Pa. Super. Page 272]

This case concerns an appeal from the Court of Common Pleas of Northumberland County which held that the Shamokin Area School District Authority's obligation to arbitrate disputes arising out of the construction contract ended with the completion of the work; that the defendant-appellant The Farfield Company (Jaden Electric Division) did not demand arbitration prior to the completion of the work; and that the contract between Jaden and the school district as to whether the request for arbitration was timely made was to be decided by the Court of Common Pleas and not by the Board of Arbitrators.

We agree that the final decree of the court below which confirmed the Decree Nisi in all respects must be reversed with instructions that the petition of Jaden to compel arbitration and stay the action in equity pending arbitration and that the injunction granted to the school district enjoining

[ 308 Pa. Super. Page 273]

    arbitration be vacated, in that the decisions made by the court below were errors of law.

The appellee authority of the school district commenced an action in equity seeking to enjoin an arbitration proceeding filed with the American Arbitration Association by the Jaden Electric Division of the Farfield Company. Jaden was the electrical contractor under contract with the Authority for the construction of the Shamokin Elementary School.

Concurrent with the filing of the suit, Jaden petitioned to compel arbitration and stay the equity suit pending the outcome of arbitration.

Jaden contends that the Court of Common Pleas erred as a matter of law in (1) holding that the Authority obligation was effective only during the course of construction; (2) concluding that the work was completed; and (3) rejecting Jaden's contention that the issue of the timeliness of its ...


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