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Pfl/1llI69'I1.CPI (MIY 18, I99S)
./
'l'ELCO, INC.,
Plaintiff
vs.
IN TilE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PA
CIVIL ACTION - LAW
No. 95- ~;j (
CIVIL TERM
NA'l'IONAI, UNION FlIlE
INSURANCE COMPANY OF
PI1''l'SBUIlGII, PA.,
Defendant
PLAINTIFF'S COMPI.AINT
NOTICE
You have been Bued in court. If you wish to defend against
the olaimB set forth in the following pages, you must take
action within twenty (20) darB after this Complaint and Notice
are served, by entering a wr tten appearance perBonally or by
attorney and filing in writing with the court your defenBes or
objectionB to the claimB Bet forth against you. You are warned
that you tail to do BO the caBe may prooeed without you and a
judgment may be entered againBt you by the court without further
notice for any money claimed in the Complaint or for any other
claim or reUef requeBted by the Plaintiff. You may lose money
or property or other rights important to you.
YOU SHOULD 'l'AKE 'rillS PAPEIl TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYEIl Oil CANNOT AFFOIlD ONE, GO 'I'O Oil
'l'ELEPIIONE 'I'HE OFFICE SET fOIlTII BELOW TO FlND OUT WHERE YOU CAN
GET LEGAL IIE1.P.
COUIl'I' ADMINIS'l'RATOR
FOlJHTII FLOOR CUMBERIJ\NO COlJN'I'Y COURTHOUSE
CARLISLE, PENNSYLVANIA
Telephonel (717) 240-6200
PfS/8869.1'.CPl (Hay 19, 1995)
~
1. The Plaintiff is Telco, Inc., a corporation organized
and doing business under the laws of the Commonwealth of
PennBylvania with a principal place of bUBinesB at 1224 Cross
Keys Road, Reading, BerkB County, Pennsylvania 19605.
2. The Defendant is National Union Fire InBurancs Company
of PittBburgh, Pa., a corporation organized and doing bUBiness
under the laws of the Commonwealth of Pennsylvania, with a
registered addreBs at 139 UniverBity Place, PittBburgh,
Pennsylvania.
3. The Plaintiff, Telco, Inc., (hereinafter "Telco"), is
engaged in the Bale, supply and installation of traffic signalB
and related equipment and services.
4. On June 16, 1993, Defendant executed a payment bond,
(hereinafter "Payment Bond"), concerning site work construotion
at the Cumberland Valley Middle SchOOl, in Silver Spring
TownShip, Cumberland County, PennBylvania, (hereinafter "Middle
School Project"), aB Surety for its Principal, Adams County
Asphalt Company, (hereinafter "ACA"). A true and correot copy
of the Payment Bond iB attached hereto aB Exhibit "A" and
incorporated herein by reference.
5. Pursuant to a Subcontract Agreement between Telco and
ACA dated July 28, 1994, Telco performed traffic Bignal
inBtallation at the Middle School Project, including the
provision of signs and pavement markings, which inBtallation waB
completed on November 15, 1994.
2
.
P'S/B869,ll.tPl (""Y 19, lWS)
6. On November 16, 1994, Telco forwarded to ACA 'l'elco'B
Invoice No. 5567, (hereinafter "Invoice"), for serviceB rendered
under the terme of the Subcontract Agreement. The Invoice
directed payment by ACA to Telco in the total amount of
$50,209,95. A true and correct copy of the Invoice iB attached
hereto aB Exhibit "8" and incorporated herein by reference.
7. Payment was due under the terms of the Subcontraot
Agreement and the PennBylvania Contractor and Subcontractor
Payment Act, 73 P.S, S 501 et.seoL, on or before December 5,
1994, and, despite repeated demands therefor, payment haB not
been made.
B. Telco sent a letter by certified mail, return receipt
requested, addressed to Robert M. Mumma, II, PreBident of ACA
and dated January 25, 1995, (hereinafter "Demand Letter"),
informing ACA that payment of the Invoice was paBt due and
informing ACA of Telco's intention to file suit againBt the
Payment Bond. A true and correct copy of the Demand Letter is
attached hereto as Exhibit "C" and incorporated herein by
reference.
9. ACA personnel refused to Bign the return receipt and
Telco thereafter sent the Demand Letter to Mr. Mumma by regular
certified mail.
10. Telco filed a Complaint against Defendant's principal
in the Court of Common PleaB of Cumberland county, Pennsylvania
at No. 95-1219, civil Term. A true and correct copy of Telco'B
3
Pf./8869,'l,CPl '""V 1a, 19951
.
Complaint in that action iB attached hereto as Exhibit "0" and
incorporated herein by reference.
11. oy letter dated February Y, 1995, Defendant
acknowledged receiving notice that Telco was making a claim
againBt the Payment !land. ^ true and correct copy of
Defendant'a letter dated February 9, 1995, is attached hereto as
Exhibit "E" and incorporated herein by reference.
12. By letter dated March 27, 1995, Telco demanded payment
under the Payment Bond, ^ true and correct copy of the letter
dated March 27, 1995, iB attached hereto as Exhibit "F" and
incorporated herein by reference.
13. To date, deBpite demand therefor, Defendant haB failed
and/or refUBed to make any payments to ')'elco which are due and
owing under the termB of the Payment Bond.
14. Defendant haB no defense or jUBtification tor its
wrongful refusal to pay the amount due under the terms of the
Payment Bond.
15. Any opposition or defense interposed by Defendant is
obdurate, vexatiouB, fd VOIOUB, and iB interposed Bolely for
purpoBes of delay,
16. ')~e amuunt in controversy exceeds the juriBdictional
limits for compulsory arhltration.
WHEREt'oIlE, I'lnint t f f, Telco, Inc., demnndB judgment in its
favor and ngalnBt the llefsndlll1t, NaHanni union Fire lneurance
company of Pittshllrljh, Pn., In the amount of Fitty 'I'hollsand ')'wo
Hundred Nine Ilollllrs /\l1d Nlusty-Ilve CsUtK ($50,209.!Hi) plUB all
4
PfSI686V,l',CPI (MIV Ie, 'VIS)
remedieB which may be provided under the PennBylvania Contractor
and Subcontractor Payment Act, 73 P.S. 5501, et.Bea., plue costB
of suit.
KOZLOFF, DIENER, PAYNE & FEGLEY
I
,....--::> ,',-'~. /
f .-{' I"
Peter F.' Schuchman, Jr.,
Attorneys for Plaintiff
2640 westview Drive
P. O. Box 6286
WyomisBing, PA 19610
(610) 670-2552
Attorney I,D. No. 69343
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Esq ire
,
5
PFS/lI869-1I.CPl (MIY 18, 19951
TELCO, INC.,
Plaintiff
IN 'I'IIE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PA
CIVIL ACTION - LAW
vs.
NATIONAL UNION FIRE
INSURANCE COMPANY OF
PITTSBURGII, PA.,
Defendant
No. 95-
CIVIL TERM
VERIFICATION
The undersigned, having read the attached Complaint hereby
verifieB that all averments of fact not appearing of record
contained in the attached Complaint are true and correot to the
best of the undersigned'B personal knowledge or information and
belief. To the extent that the complaint is based on
information provided to the undersigned by counsel, the
undersigned has relief upon counBel in taking this verifioation.
The language is that of counBel. ThiB verification is made
sUbjeot to the penaltieB of 18 Pa, C.S. section 4904 relating to
unBworn falBification to authorities.
TELCO, INC.
I
J
Datedl May~, 1995
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AlA ,lolL'" r ()/^-,-~~ . 'lC-J.../..i
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CUMOEHLANO VALLEY MIDDLE SCHOOL 201.91
90620 PAYMENT BONO
KNOW ALL HEN BY TIICS[ PR[SfNTS that \lC,
a corporation organized and cxlstlng under laws of the
COll\ll1onwealth
of
Pennsvlvania
, as Surety (the "Surety"), are held
. as Obligee
ust sum OfTvo MUlion Three
and firmly bound unto Cumbe
(the "Obligee"), as herelna
Hundred Thlrty Eillht Thousend Thr.!f..l!undred Thirty Three and 33/10oDOLLARS
($ 2.338,333.33---------------------). lawful money of the United States of
America, for fhe payment of which we bind ourselves, our heirs, executors,
administrators, successors and assigns, Jointly and severally, firmly by these
presents.
WITNESSETH THAT:
WHEREAS, the Pr1nclpal heretofora has submItted to the Obligee a certain
proposal, dated /3 ~ ,1993. (the "Proposal"),
to perform certain Sitawork Itonltruction wllrk for the ObI igee, In
connection with Cumberland Valley MLddle School
pursuant to plans,
specifications and other related documents, which are Incorporated Into the
Proposal by reference (the "Contract Documents"), as prepared by The Rey Group
Inc., Registered Architect(s), of Lebanon, Pennsylvania; and
WHEREAS, the Obl1gee Is a "contracting body" under provisions of Act No,
385 of the Generel Assembly of the Commonwealth of Pennsylvente, aeproved by the
Governor on December 20, 1957. known IS end cited 15 the Public Works
Contractors' Bond Law of 1967" (the "Act"); and
WHEREAS:, the Act, in Section 3 (e), requires that, before an award shall
be made to the Principal by the Obligee In accordance with the Proposal, the
Principal shall furnish this Bond to the Obligee, with this Bond to become
binding upon the eward of a contrect to the Principal by the Obliges in
accordance with the Proposal I and
WHEREAS, it elso Is a condition of the Contrect Documents that this Bond
shall be furnished by the PrIncipal to the Obltgeel and
WHEREAS, under the Contract Documents, lt is prOVided Inter el1e, that If
the Principal shall furntsh this Bond to the Obligee, and If the Obligee shall
make an award to the Principal in accordance with the Proposal, then the
Prlnclpal and the OblIgee shell enter Into en agrument with respect to
PA YMENT BONO
00620.1
,-
, "
'.
lUMUlRIANO VAlllY MlLlOlr 5CII00\ 201,91,
performance of lUoh work (the "AgreomAnt"), the form of whIch Agreement 11 let
forth In the Contract Documents.
NOli, THERErORl, tho terml and conditions of this !land are and shall be that
if the Principal and any subcontractor of the Principal to whom any portion of
the work under the Agreement shall be subcontracted, and If all uslgnees of the
Principal and of any such subcontractor, promptly shall payor shall cause to be
paid, in full, all money which may be due any claimant supplying labor or
materials In the prosecution and performance of the work In accordance with the
Agreement and In accordance with the Contract Documents, Including any amendment,
extAnslon or addlllon to the Agreement and/or to the Contract Oocuments, (or
material furntshed or labor supplied or labor performed, then this Bond shall be
void; otherwise, this nand shall be and shall remain tn force and effect.
This nand, as rrovlded by the Act, shall be solely for the protect ton of
claimants supplying abor or materials to the Prlnctpal or to any subcontractor
o( the Principal In the prosecution of the work covered by the Agreement,
Including any Imendment, extension or addition to the Agreement, and Is
conditioned (or the prompt payment of all such materials furntshed and labor
supplied or performed 1 n the Jrosecutl on of the work. The term "cla Imant". when
used herein and 15 require by the Act, shall mean any Individual, firm,
plrtnershlp, association or corporltlon, The phrase 'labor or materials", when
uSld herein and as required hy the Act, shall Include public utIlity services and
reasonable rentals of equipment, but only for plrlods when the equipment rented
Is actually used at the site of the work covered by the Agreement. As requIred
by the Act, the provisions of this Bond shall be applicable whether or not the
material furnished or labor performed Intlrs into and becomes a component plrt
of the publIc building, public work or public Improvement contemplated by the
Contract Document. and the Agreement.
As provided and required by the Act, the Principal and thl Surety agree
that any claimant, who has performld labor or furnIShed material In the
prosecutIon of the work In ar.cordance with the Agreement and/or to thl Contrlct
Documents, Including any amendments, extension or ~ddlllon to the Agreement
and/or to the Contract Documents, Ind who has not been patd therefor, In full,
before the expiration of ninety (90) days after the day on which such claImant
performed the last of such labor or furnished the lut of such materials for
whIch payment Is claimed, may tnstltull an acllon'upon lhll Bond, In tht nlme of
the claimant, In auump.Il, to recov~r any amount due the claimant for such IIbor
or material, and may prosecute luch let Ion to final iUdgment and may hive
eXlcutlon upon the judgment I provided, however, lhall (I Iny clat~lnt ~ho hll
direct contractull relltlonshtp, exprelled or Implied, w th the Prtnclpal, may
Instltule an action upon this Rand only If such claimant (Irlt sh.ll have gtven
written notIce, served In lhe manner provtded In the Act, lo thl Principal within
ninety (90) daYI from the date upon which such claImant performed the lut of the
labor or turnllhed the last o( the materllh for which payment h claimed,
stating w1th substantlll accuracy, the amount claimed and the name of the plrson
for whom the work was performed or to whom the materia' wal furntlhedl and (b)
no acllon upon thh Ilond shall be cOlMlftnced after the expIration of one (1) yur
from the day upon which lh. lilt of lhe labor Wll performed or malarlll WIl
PAYMENt eOtlO
00620.2
.',
.........4
,........
CUMBERLAND VALLeY MIUDLl SCHOOL 201.91
suppl ted, for the payment of which such action Is Instituted by the clatmant; and
(C) every action upon thts Bond shall be Instituted either in the appropriate
court of the County where the Agreement ts to be performed or of such other
County as Pennsylvanta statutes shall provide, or in the United states District
Court for the district In which the project, to which the Agreement relates, Is
situated, and not elsewhere.
This Bond Is executed and delivered under and SUbject to the Act to which
reference hereby Is made.
The Principal and the Surety agree that any alterations, changes and/or
addl t Ions to the Contract Documents, and/or any alterat Ions, changes and/or
additions to the work to be performed under the Agreement In accordance with the
Contract Documents, and/or any a lterat tons, changes and/or add1t Ions to the
Agreement, and/or any giving by the Obligee of any extensions of time for the
performance of the Agreement In accordance with the Contract Documents, and/or
any act of forbearance of either the Principal or the Obligee toward the other
with respect to the Contract Documents and the Agreement and/or the reduction of
eny percentage to be retained by the Obligee as permitted by the Contract
Documents end by the Agreement, shall not release. In any manner whatso.v.r, the
Prine Ipal and the Surety I or either of them, or the I r hel rs, executors,
admtnistrators, successors and anlgns, from lhbility and obltgatlons under thls
Bondi and the Surety, for value recetved, does waive notice of any such
alterations, changes, additions, extensions of time, acts of forbearance and/or
reduction of retained percentage.
If the Principal Is a foreign corporation (incorporated under any laws
other than those of the Commonwealth of Pennsylvania) then further terms and
conditions 0' this Bond are and shall be that the Principal or the Surety shall
not be discharged from liability on this Bond, nor this Bond surrendered untl1
such Prl nclpal fll es with the Obligee a certl fl cate from the Pennsyl van ta
Department of REvenue evidencing the payment tn full of 111 bonus taxes,
penalties and Interest. and I certificate from the Bureau of Employment and
Unemployment Compensation of the Pennsylvania Department of Labor and Industry,
evidencing the payment of III unemployment compensation, contributions, penalties
and Int.rut due the COrmlonwealth from said Principal or any forelgn corporation,
sub. contractor thereund.r or for which liability has accrued by the time for
payment has not arrived, III In accordance with provisions of the Act of June 10,
1947. P.L. .93, of the Commonwealth of Pennsylvania.
IN WITNESS WHEREOF, the Principal and the
signed, sealed and delivered this /fr v-L _
19"q,;t. .
Surety cluse th I s I Bond to be
. day of It" ."- ,
(Indlvidull Principal)
PAYMENT BONO
(S I gnafure-OTI nd I v tdua rr--
00620.3
..'
.-:,.
CUMBERL^ND VALLEY I.. OLE SCllOOL 201.91
Trading and doing business as
I...."
Witness:
,
...-...... ..... -..... .................. - ~~.... .......- -........-.... .............. ........ ~ - - -....... -.........-.. -.-........
(Partnership Principal)
(Name of Partnership)
Wltnessl
BY' (SEAL)
Partner
BYI (SEAL)
Partnor
BY: (SEAL)
Partner
BY. (SEAL)
Partner
............--.....---...----............................---..........-------......------......----
(Corporation Principal)
~ t~'~h ~A-/"'~
am. 0 or ora n
A""lJ1 hd
v~~ BY.
CORPORATE SEAL
or (If appropriate)
(Name of Corporation)
Witness:
Authorized Representative
. Attach appropriate proof I dated as of the same date as the Bond. evidencing
authority to execute In behalf of the corporatton.
.BY:
PAYMENT BOND
00620.4
,
.-
..".,
...
CUMBERLAND VALLI.Y MIDDLC SCIlOOL 20l-91'
I
.... .. - ~ ........ .. .... .. ...... .. .......... . .. -.. .. .. .. .... .. ...... .. .. .. .. .. . - . . . . . .. .. .. .. .. .. .. .. .. . .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
(Corporal Ion
WItness:
(b,1I AI ljl,.l.liY'.'\.......) "BY:
Caran Thorn".
CORPORATE SEAL
.* Attach an appropriate power of attorney, dated as of the same date as the
Bond, evidencing the authority of the Attorney-in.fact to act In behalf of the
corporation.
END OF PAYMENT BOND
PAYMENT BOND
00620-5
. American Home Auurance am 'jI1Y
Natlonul Union FlI'f In.urance t:~"1pRny or llilllburllh, PII.
pn"'I'"'lIon4 om..: 1Il PI.. s....~ 1'1... ,."'" .' lotllJ
--
POWER or ATIORNEY
N. U1-U-99959
KNOW ,\1.L'MKN 8Y THESE I'RESENTS:
nl' Alncr'k'"'' UOftH M\anllCC Coaspur,l ~ VOlt l'Orpo..lkKt. lad NII~I\.I UnLoa P1r1I"'\It1nC"C Conl('11ny 01 PlltAbuflh. Pa... rCMq1vtnla corponlllln,
dot. ..cia MNbYIW'16AI
...Mlchlel J. MItchell, Harry R. Jolwo... Michael O'Hagan, Martin J. Purcell, Michael Ti~iW~d: or Philadelphia, Pa....
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IS \V1Th'ESS\VHEREOF, A"II"CO. 110m. ,....'..n<< Olmpony .nd :'<.1I0nl. Union fir< In"..." Olmp.ny .11'11110'/11I, P.. hlv. wh "'''"~
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t".nto b)' '''Ihonry cI hla 1ll'I'W.
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CERTIFICATE
t!lCtrpll at Ru.oluliotll .dOrlCd by Ihl 90InU c/ DltcC'\OfI 01 Amcritsn nom. AJoIvnnre COmptfty and NIlIonlll.'nlon l'Ire InluAnce CompAny 01 rlll&~\"',,', t.
M May tl, 1916:
'WOLVEn, 'hllchc CMlmun of the BoArd.lhe PtuldCnf, or en)' Vke rru.ldenl be, IOd blnDy la, hlhoNU 10 Irpnlnl AIIO",C)'ol"ol'ICIIO reprC4It\llnrJ all
f.:r 'I'l~ en behl'f Dr Ihe Compln)' 10 IICC'\Ile bond&., unchrukJnp. ruocnLutlCU I"li other C'QntncU 01 Ir.dcmnlry Ind ..nUnlt oblllllOt)' In Ihe l'lllurc lhcrt::'- 11 '
to Itljeh \hltcH) Ihe tarponl. UlI of Ih, Ccmreny,lft Ih. lrelUlctlon at Ita .,ucry b~linw:
'J.tr..l\OL\'EO, Ihal Ih. Ilanaturn .ft\J Ittc.ataUona ell",eh OmCI" .nd Ihe "II 0( Ihl Company mlY b. .,n....4 to 11\( l...el1 PO"'tr of Allome)' Of IQ .r.y un,n,m
Ul111111 ,t"rUID ~)' ltcalmU., end tn)' l\U:h Powe, of Altomer or ~J1lnutt Wln"ll"ch Ilcslnul. alan'IIlru or 1t"lmll. 1111 Ihln O' YlIl4 U6 blndll'll \lrn!\ ttot
COm....ny'hen 10 .fOnd ...l.Ih tupUllO an)' boftd. undenakJn&, fU'C1"u.anre or olhu ronlAu ollftC"nnlry 01 "Tltlna chHaltory In the natur. Ihcreu!,
'R.1!.SOL\'EO. Ihlt Iny aUf'" Anomer....ract6tlMrina. uenUrt.1 u"ltirtllOn IhU Iht 'onao1nl rUOl\l1l0nl IIill "I In .(T,,, m.y Inn" In luet' unlnclllon 'ht
6,Ic Ihereof. LillJ dl't l{t bt ~ lIltr Ihu 'M dlle oIlScINlf)"lM:recl Or I~t" ^lhJmcy.lft.r.CI,"
I. Eliubclh M, Tuck, Secrcllry 01 AraeriClR Bom. N:f,Ilnnec COmpany Ind 01 }'ofational Union Mn lnallnnce CompAny oll'lllllJurJf1. PI. 40 f'tlrcby unll)'lhlllht
rJUa\Jln, th'CrpU o( Ruoluliona ,~op'e.d by lhe J\oInlI 01 Oln:tlon of lhue corponllc.n.. 11'\4 Ute Po"',n (It AIIJmey iuued fluml.nl theretu. art IN' IIIJ
ro,rut, ,,,d Ihlt balh th. llublullona.ac1 1M 'Owl" o( Auomcy.re 'ft lull 10,," ",6 rN&ct,
IN \'VlTNESS \V1fEREOF" h.... ~..."nIO ,,' my h.n4 Ind .mud Ih. (oCl,",II< ".101 uch <orpon,lon
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. A.D.1I2 Box 28Bl
Cross Keys Road
Reading. PA 19605
SHIP TO:
INVOICE
Phone: (610) 915.E2CO
Fax: 1610)91e.:~77
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IN'ICIC I NO. '':i.
111l~/Od ~:;~i
'CCOUNT NO. nXMS SHIP VI' OUR OROER NO, YOUR OROIX NO.
ITI\! NO, OESCRIPTlON QU.Nnrt . P",Cl 1.,(";I.~SION
CUnl:erle:il Valley Nell Micdle Sc 1001
Job No. 550
Tra~tic Si-=r.allzation at &.e
intcsection ot Carlisle Pi.'<e
(SR 0011) ar.d Cl:ml:e=lar.d Valley
IU.';;h School Drivellay in Silver
Sr:rir.g ~.ship 15 S 44,315.95
Sign Installation lS . 2,CS~. :lj
Peverent Harkir.gs r.S . 3,;95.CO
TarAt s ~t'),2G9.::
SOLD TO: JI.dams Count""! AsPlalt Co., Ir:c.
P.O. Eox 1531
Po. 'isb PA 17105
T.m,.:.... noUd - PIli due 'CCOUl'ItI .ul:lj.ClIO ..,..,i" .h'lil 0' 1:,-".;1' monll'\. III'" U' 'Muml.
Minimum ..rviu Chit;. I, 11.00 De' monln.
Exhibit C
~1(3~~(!)~ ~~~~
Phone: 16101916-6200
Fex: (6101916-1377
.
Traffic Electrlcel & Lighting Co.. Inc,
RO #2 Boo 28Bl
Cross Ke'/S F,oao
Reading, PA. 19606
.
January 25, 1995
oams County Asphalt Co., Inc.
P. O. BOle 1531
Harrisburg, PA 17105
Attnl Mr. Robert M. Mumma, II
President
REI Cumberland Valley Middle School
S.R. 0011 (Carlisle Pike) and
Cumberland Valley High School
Dri veway
Traffio signal Installation
Dear Mr. Mumma I
Enclosed you will find
November 16, 1994 representing
project. The invoice was broken
a copy of our
our completion of
down liS follows I
invoic. 5567, dllted
the above referenced
1. Traffic signal Installation
2. Sign Installation
3. Pavement Marking Installaticn
TOTAL
LS
LS
LS
$44,315.95
2,099.00
3,795.:...2..Q
$50,209.95
At this time, this invoice is thirty (30) day. paet due and
a~ter repeated attempts were made to contact ycu regarding payment ~f
this delinquent invoice, we are writing to you to adviee you that we
have been in contact with the cumberlan~ Valley School District and
our intention is to file suit for payment against your Payment Bcnd
for this project.
Very truly ycurs,
'l'ttco, I NC.
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Prn ident
RAHlerk
Enclosure
Silver Sprioo 'l'Q.omShir. - Mr. JOM ~Tl;ll1irCl - TcMMhip MAna9.r
CCI CUmJJerl1!\nl1"Valley School DlBtrlct- Mr. lticharo Venn1
!lay Group, Inc. - Mr. Tan KiIVJ
CERTIFIED MAIL - R.R.n.
~ Member ollntlln.tlon.1 Munllllp.1 Ilgn.1 Anoel.tlon
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R.D.1/2 Box 2BBl
Cross Keys Road
Reading. PA 19605
SHIP TO:
INVOICE
Phone: 16101916.6200
FIX: (6101916.: 377
SOLO TO: JI.dams County JI.s].:halt Co., 11-.c.
P.O. Eox 1531
l! . i b P1\ 17105
i
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.a. "T S urg, . 0"-1 INVCICI NO. ,~.
11/16/94 5%7
.lC::CUNT NO, flAMS SHIP VI,\. OUR OROIR NO. YOUR OROI" NO.
ITI\l NO. OISCRIPTlON CU.s.<~;li' pCHeE [.'(":"i~SlON
CUl1l:er1a.-rl Valley NE.'.o/ Middle Sc 001
Job No. 550
Tra~~ic Sicr~lization at ~~e
inte:.-secticn of Carlisle Pi.'<e
(SR 00ll) ar.d CUTterlarrl Valley
l!~;h school OrivE.'.o/sy in Silve:.-
S!=rir.q To..n-.ship .0 S 44,315.::
-~
Sign Installation lS 2/C9~. :OJ
Palisne.'1t ~!arkir.qs ~S . 3,i95.~O
TarA!. S ~tJ,2G9. ::
Term,: ,It nOl,d U Pili du, ""aunt. ...tttl'" 10 1,""lt' ,PI,,__ ,11 :.., :It ~fUlln. '. ll\i ~., Inn",",j.
MinImum ..,..'C:, Chi';' 'I 11.00 ;.' monln.
Exhibit 0
HS:8869-11.CMP
1. ~'he Plaintiff is Telco, Inc., a corporation organized
and doing business under the laws of the Commonwealth of
Pennsylvania with a principal place of business at 1224 Cross
Keys Road, Reading, Derks County, Pennsylvania 19605.
2. The Defendant is Adams County Asphalt Co., Inc., a
Pennsylvania corporation organized and doing business under the
laws of the Commonwealth of Pennsylvania, with a registered
address at 614 North Front street, P. O. Dox 1531, Harrisburg,
Dauphin County, Pennsylvania 17105.
3. The Plaintiff, Telco, Inc., (hereinafter "TelCO") is
engaged in the sale, supply and installation of traffic signals
and related equipment and eervices.
4. Ths Defendant, Adams County Asphalt Co., Inc.,
(hereinafter "Adams County Asphalt") is a general contractor in
the construction business.
5. Adams County Asphalt solicited bids from
subcontractors inclUding Telco in order to satisfy certain
contractual obligations of Adams county Asphalt to cumberland
Valley School District in connection with a construction project
at the Cumberland Valley Middle Bchool (hereinafter "Middle
School Project").
6. Dy a proposal dated July 13, 1994, (hereinafter "Bid
proposal"), Telco offered to Adams county Asphalt to supply and
install all necessary equipment, labor and material for the
traffic BirJnnlhl1t!oll for. the Middle flchool Project nt the
2
PFS 18869-11. CMI'
intersection of Carlisle pike (SR 0011) and Cumberland Valley
High school Driveway in silver Springs Township, Cumberland
County, for the lump sum price of Forty-four Thousand Three
Hundred Fifteen Dollars and 95/100 ($44,315.95) plus Two
Thousand Ninety-nine Dollars ($2,099.00) for necessary signs and
Three Thousand Seven Hundred Ninety-Five Dollars ($3,795.00) for
necessary pavement markings. A true and correct copy of the Bid
Proposal is attached hereto as Exhibit "A" and incorporated
herein by reference.
7. Included in the Bid Proposal was the condition that
payment be made by Adams county Asphalt to Telco as follows:
a. One-third (1/3) upon completion of Underground;
b. One-third (1/3) upon receipt of Equipment for
project; and
c. One-third (1/3) prior to traffic signal turn on.
8. On July 28, 1994, Telco forwarded two executed copies
of the Subcontract Agreement for the Middle School Project one
of which was then counter-signed by Robert M. Mumma II,
President of Adams county Asphalt, (hereinafter "Mumma"), and
returned to Telco. A true and correct copy of the Subcontract
Agreement is attached hereto as Exhibit "B" and incorporated
herein by reference.
9. The Subcontract Agreement was executed after the
effective date of the Contractor and Subcontractor Payment Act,
73 P. S. S 501 gt..L.lHill..., (hereinafter "the Payment Act") .
3
,
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PFSI8869-11.CMP
10. The subcontract Agreement contained the following
special provision regarding contract price and payment
requirements by Adams county Asphalt to Telco:
a. one-third (1/3) upon completion of Underground;
b. one-third (1/3) upon receipt of Equipment for
project; and
c. one-third (1/3) prior to traffic signal turn on.
11. On October 26, 1994, Telco commenced work on the
traffic signal installation at the Middle School Project,
inclUding the provision of signs and pavement markings.
12. Telco performed all of its obligations in accordance
with the terms of the Subcontract Agreement and in a
professional and workmanlike manner.
13. Telco completed ~erformance under the terms of the
Subcontract Agreement on November 15, 1994.
14. Telco is entitled to payment by Adams County Asphalt
for its performance under the terms of the Subcontract Agreement
and under the provisions of the Payment Act.
15. On November 16, 1994, Telco forwarded its invoice for
services rendered under the terms of the subcontract Agreement,
Invoice No. 5567, in the total amount of $50,209.95, to Adams
county Asphalt for payment. A true and correct copy of that
invoice (hereinafter "Invoice"), is attached hereto as Exhibit
"C" and incorporated herein by reference.
16. Payment was due under the terms of the subcontract
Agreement and the Payment Act on or before December 5, 1994.
4
PFS:BB69-11.CMP
17. Telco made repeated attempts to telephonically contact
Mr. Mumma to inform him that payment of the Invoice was past
due.
lB. Thereafter, Telco sent a letter by certified mail,
return receipt requested, addressed to Mr. Mumma and dated
January 25, 1995, (hereinafter "First Demand Letter"), informing
him that payment of the Invoice was past due and demanding
payment by Adams County Asphalt. Adams County Asphalt personnel
refused to sign the return receipt. A true and correct copy of
the First Demand Letter is attached hereto as Exhibit "0" and
incorporated herein by reference.
19. Telco thereafter sent the First Demand Letter to Mr.
Mumma by regular certified mail.
20. By letter to Mr. Mumma dated February 14, 1995, sent
by certified mail, return receipt requested and first class
mail, (hereinafter "Second Demand Letter"), Plaintiff's counsel
again demanded payment of the Invoice and informed Adams county
Asphalt of Telco's intention to file suit and seeK relief
inclUding all remedies provided by the Payment Act. A true and
correct copy of the Second Demand Letter and certified mail
receipt is attached hereto as Exhibit "E" and incorporated
herein by reference.
21. To date, payment due and owing under thu terms of the
Subcontract Agreement and the Payment Act has not been made.
5
l'FSIUU69-11.CMl'
22. As set forth i.. the Invoice, Telco is entitled to
impose n service charge of one and one-quarter percent per month
on all amounts past due, as is the custom in the industry.
23. Adams county Asphalt has no defense or justification
for its wrongful refusal to pay the amount due under the terms
of the subcontract Agreement and the Payment Act.
24. Any opposition or defense interposed by Adams county
Asphalt is obdurate, vexatious, frivolous, and is interposed
solely for purposes of delay.
25. The amount in controversy exceeds the jurisdictional
limits for compulsory arbitration.
WHEREFORE, Plaintiff, Telco, Inc., demands judgment in its
favor and against the Defendant, Adams county Asphalt Co., Inc.,
in the amount of $50,209.95 plus one and one-quarter percent of
that amount per month from December 5, 1994, until the date of
judgment, plus all remedies which may be provided under the
Contractor and subcontractor Payment Act, 73 P.S. S 501, ~
~L' plus costs of suit.
KOZLOFF, DIENER, PAYNE & FEGLEY
~~~~~Squr:ft-:-
Attorneys for Plaintiff
2640 Westview Drive
P. o. Box 6286
wyomissing, PA 19610
(610) 670-2552
Attorney 1.0. No. 69343
6
PFS10069-11.CMI'
TELCO, INC.,
PI aintiff
IIN THE COURT OF COMMON PLEAS
IOF CUMBERLAND COUNTY, PENNSYLVANIA
:CIVIL ACTION - LAW
vs.
:No.
ADAMS COUNTY ASPHALT CO.,
INC. ,
Defendant
IJURY TRIAL DEMANDED
VERIFICATION
The undersigned, having read the attached Complaint
hereby verifies that all averments of fact not appearing of
record contained in the attached Complaint are true and correct
to the best of the undersigned's personal knowledge or
information and belief. To the extent that the Complaint is
based on information provided to the undersigned by counsel, the
undersigned has relied upon counsel in taking this verification.
The language is that of counsel. This verification is made
subject to the penalties of 10 Pa.C.S. section 4904 relating to
unsworn falsification to authorities.
TELCO, INC.
Datedl
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SUBCONTRACT AGREEMENT
ADAMS COUNTY ASPHALT COMPANY, INC.
P.O. Box 1531
Harrisburg, PA 17105
Phonel (717) 234-0204 FAX I (717) 257-5373
CONTRACTOR
.
WITH
TELCO, Inc.
R.D. '2 Box 2881
Cross Keys Road
Reading, PA 19805
SUBCONTRACTOR
PROJECT I Cumberland Valley New Middl~ School
JOB NUMBER I 550
,
WORK, In.tal traffic light
DATE. 7/14/94
I~.'
~UMBERLAND VALLEY MIDDLE SCHOOL/550
June 14, 1994
TELCO, INC
"\.~.
.
SUBCONTRACT AGREEMENT
This agreement made and entered into, by and between Adams County
Asphalt Company, Inc. a Pennsylvania corporation, having a
principal office at 614 North Front Street, P. O. Box 1531,
Harrisburg, Pennsylvania 17105 hereinafter called "Contractor",
of the one part and hereinafter called the "Subcontractor", of
the other part:
TELCO, INC.
R.D. '2 bOX 2881
CROSS KEYS ROAD
READING, PA 19B05
PHONE: 610-916-6200
FAX: 610-916-1377
1. On 5/10/93, a contract has been entered into between
Cumberland Valley School District hereinafter called the OWner,
and the Contractor for the construction of Cumberland Valley New
Middle School which Contract, Addenda, if any, Plans,
Specifications, Addenda thereto, and General and Special
Conditions all will collectively be hereinafter referred to as
the Principal Contract. The Subcontractor does represent that it
has carefully and fully examined all of the documents that are
collectively designated as the Principal Contract and is
thoroughly familiar with each of them and Subcontractor further
represents that the site for the work has likewise been examined
and the site for the work and the conditions present are known
and are familiar to the Subcontractor. The parties hereto agree
that the Principal Contract as herein defined is incorporated by
reference in every particular in this subcontract and is a part
hereof. In the event, however, of any conflict between the
provilions of this Subcontract and of the Principal Contract, the
provisions of this Subcontract shall control.
2. The Contractor does hereby.assign, set over and sublet
to the Subcontractor, and the Subcontractor does hereby covenant
and agree with the Contrar.tor to perform and construct in a
satisfactory and workmanlike manner, and in accordance with the
terms and conditions of the Principal Contract, to the approval
and acceptance without condition, of the OWner and of the
Contractor, that portion of the work of the Principal Contract as
herein designated as follows:
(a) SCOPE OF WORK: Supply all equipment, labor, and
~aterials to istall the traffic 1iqht at the intersection of SR
0011 and Drive "B" as per the plans and specifications.
ITEM' 1
Quantitv: 1 complete light assymbly.
CONCUR:
RHMII ~
2
'--.
,
~UMBERLAND'VALLEV MIDDLE SCHOOL/550
June 14, 1994
TELCO, INC
.,..-
.
CONTRACT AMOUNTI $44,315.95
EXCLUSIONS:
SUBMITTALS I
(a)
(b)
Equipement
Special Conditions to Schedule of Work
1. Subcontractor to perform work in accordance with the project
specifications and contract drawings.
2. All materials supplied and/or used by the Subcontractor
shall meet requirements and specification for this project
and all material shipments must be accompanied by certification.
3. Subcontractor is responsible for administrative procedures
and requirements associated with subcontracted schedule of
work.
4. Subcontractor is required to
as required by specifications.
5. Quantities of work performed are to be verified by the
Contractor.
6. Subcontractor are bound
(attached). Certified payrolls
Contractor in a timely manner.
7. Subcontractor shall be responsible
assessed against Contractor due to lack
Subcontractor.
B. Subcontractor to commence work within 4B hours of notice
from Contractor and proceed with all diligence.
9. Contractor reserves the right to issue a joint check to
Subcontractor and/or material suppliers.
10. Subcontractor required to have qualified OWner approved
supervisor on Project at all times.
11. Subcontractor required to have all applicable sales tax
included in prices.
furnish evidence of insurance
to prevailing wage schedule
must be submitted to
for
of
any penalties
performance by
3. The Subcontractor by executing this subcontract,
represents and warrants to the Contractor that is qualified,
capable, experienced and available to perform the Schedule of the
Work as set forth in paragraph 2 of this Subcontract agreement
under the terms and conditions of the Principal Contract and this
Subcontract, in the quantity and for the amount therein set
forth, and within the time as is, during the execution of the
Principal Contract, designated. The Subcontractor does further
represent to the Contractor that where prequalification to
perform the work in this contract is required by the OWner and is
a condition to contracting or subcontracting to perform such
work, that the subcontractor is duly so prequalified and will
",.,
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CONCUR I
CONCUR I
RMM II
3
CUMnt:Rl,IINll VIl1,1,";~ Mll101,f.: flCIlOOL/550
Juno 14, 1994
TELCO, 1 NC
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romain Ilru'lua11riud tor such work for the duration of this
subcontract, including any addition or extension thereof.
4 . 1 NSUllIlNCF.: REOU 1 IlEMENTS I
out and pay torI
The subcontractor shall take
(a) WORKMt:N"S COMPENSIITION and EMPLOYER'S LIABILITY
insuranco in accoldanco with the lawe of the State of
ponnsylvar.lIl and the redoral Statutes.
(b) CONTIlACTOR'S PUBLIC LIABILITY and PROPERTY DAMAGE
INSURANCE. Said policy of insurance will be written to provide
for the following limitsl
$1,000,000.00 dollars for all damages arising out of bodily
injuries to or death at one person, and subject to that limit for
each person, a total of $3,000,000.00 dollars for all damages
arising out of bodily injuries to or death of two or more persons
in anyone accident, and regular contractors property damage
liability insurance providing for a limit of not less than
$1,000,000.00 dollars for all damages arising out of injury to or
destruction of property in anyone accident and subject to that
limit per accident, a total (or aggregate) limit of $3,000,000.00
dollars for all damages arising out of injury to or destruction
of proporty during the policy period. This policy of insurance
.hall be endor.ed as followsl To cover the explosives and
collapse hazsrds and injury to or destruction of wires, conduits,
pipes, mains, sewers, or other similar property, or any
apparatuses in connection therewith, below the surface of the
ground, as injury or destruction is caused by occurs during the
use of mechanical equipment for the purpose of excavating or
drilling or injury to or destruction of property at any time
resulting therefrom.
(c) public Liability and Property Damage insurance
covering the operation on any motor vehicle used by or for the
account of subcontractor in connection with the work to be
performed under this subcontract. BODILY INJURY LIABILITY
'1,000,000.00 dollars each person and $3,000,000.00 dollars each
accident, PROPERTY DAMAGE LIABILITY $1,000,000.00 dollars each
accident.
The contractor shall furnish three (3) copies of the policy
and three (3) certificates of insurance for the following of the
abovo mentioned policies.
(a) Workmen's Compensation
(b) contractor's Public Liability and property Damage
Liability Insurance
(c) public Liability and Property Damage Insurance covering
the operation of motor vehicles.
~.' .".~----
CONCUR I
RMMII D~1tLfil
CONCUR I
RMM II
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CUMBERLAND VALLEY MIDDLE SCHOOL/550
June 14, 1994
TELCO, INC
.
All of the above mentioned policies insurance shall provide that
said policies of insurance shall provide that said policies shall
not be changed or canceled until.ninety (90) days written notice
has been given to the Contractor.
5. PROGRESS OF WORK The Subcontractor will promptly begin
said work as soon as he is notified by the Contractor and will
carry forward and complete said work as rapidly as the progress
of the work of the Contractor will permit. The Subcontractor
will furnish said materials, labor and equipment, prosecute said
work with diligence, without delay, and will not in any manner
delay or otherwise interfere with the work of the Contractor or
other Subcontractors. Should the said Contractor conclude that a
Subcontractor is unjustly and without valid reason delaying said
work, or the Subcontractor has performed said work in a deficient
or improper manner, he shall so notify said Subcontractor by
certified or registered mail, or by telegram, setting forth the
compliant in detail, and the Subcontractor will have two (2) days
from the receipt of said mailed complaint or telegram to correct
the compliant. In the event Subcontractor fails to comply with
said notice and to correct the complaint, said Contractor shall
have the legal right to take possession of all equipment,
machinery and supplies, in and up on the contract site,
including, but not limited tOI construction machinery, equipment
and supplies of the Subcontractor and to use the same to correct
the complaint or to have the complaint corrected by subletting
this work to others, and said construction machinery and
equipment as needed to e used to correct said work deficiencies
shall be used by the Contractor or any subcontractor designated
by the Contractor to so use the same. The Contractor shall
charge the expense of the correcting work against said
Subcontract and deduct the same from the contract, and should the
amount of payments due on said contract be insufficient, to
collect the said deficiency from the Subcontractor by legal
process and/or surety company, or its agents, by request or legal
process. Upon correction of said worl., of the deficiency, the
machinery and oquipment of the Subcontractor shall be delivered
to Subcontractor, upon notice, at the contract site.
Subcontractors shall supply skilled and experienced employees
ready and able to work in harmony with the Contractor and with
other prime contractors and subcontrsctors and/or their
employees, acceptable to the Contractor, the OWner and the
OWner's representatives.
In performing the foregoing work the Subcontractor shall
furnish all labor, equipment, materials, supplies and everything
necessary to furnish or incidental thereto or in connection with
the performance by it of its work as required and called for
under the provisions of the Principal Contract. It is understood
and agreed by the parties hereto that the quantity of work as
shown above are approximate only and are subj~ct to increase or
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RMMII k:..h( IIC!!.-
CONCUR:
CONCUR:
RMM II
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CUHBE/lLAND VALLEy'.MIDDLE SCHOOL/550
Juno 14, 1994
'fELCO, INC
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docroeso end it is further understood that all quantities of work
whether increased or decreased are to be performed at the unit
price above quoted and agreed upon and that the Subcontractor, in
all events, shall be entitled to be paid for that number of units
finelly determined upon by he OWner, if the OWner's determination
is not acceptable to the Subcontractor, the Contractor shall
appeal such determination to the extent such is feasible and
permissible at the Subcontractor'a written request to do so and
at the Subcontractor's cost and expense.
6. TIME ALLOWED FOR CONSTRUCTION OF PROJECT It is
expressly understood and agreed by and between the parties hereto
that time is and shall be considered the essence of the contract
on the part of said Subcontractor and should the said
Subcontractor fail to begin, continue and complete the work as
herein provided and should the Contractor suffer or permit said
Subcontractor to occupy more. time than required under this
agreement, in that event the said Subcontractor hereby covenants
and agrees to indemnify and save harmless the said Contractor
from any loss an damage which may be compelled to make good to
the OWner, for or on account of delay in the completion thereof,
insofar as said delay was caused by the said Subcontractor. If
the Subcontractor claims he is delayed in the prosecution of his
work through no fault of his own and that such delay is costly to
him, he shall be entitled only to such compensation for such
delay as is allowed and paid for such by the OWner to the
Contractor to the extent such is attributable to the
Subcontractor's work. Any such claim by the Subcontractor shall
be submitted to the Contractor in writing, containing all
pertinent details, by the Subcontractor within ten (10) days of
the alleged delay. Failure of the Subcontractor to give such
written notice within ten (10) days shall terminate any right of
the subcontractor to make such claim to the Contractor or the
OWner.
7. CONDEMNATION OF WORK The Subcontractor shall provide
sufficient, safe and proper facilities at all times for the
inspection of the work by the prvJect Engineer, Architect and the
Contractor or their authorized representatives, for the
inspection of the Subcontractor's work and materials used or to
be used. He shall, at once, remove all materials, and take down
and rebuild all portion of the work condemned by the Project
Engineer, the Architect and the Contractor or their
representative, upon receiving notice in writing of such
condemnation.
8. EXTRA WORK All extra work to be
Subcontractor must be condensed to writing
agreed upon befor~ such work is undertaken.
agreements must be signed by representatives
performed by the
at a rate of pay
Said extra work
of the Contractor
CONCUR,
RMMI I [}I,1ye-
CONCUR I
~.-.
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CUMBERLAND VALLEY MIDDLE SCHOOL/550
June 14, 1994
TELCO, INC
.
and Subcontractor and will be subject to the terms and conditions
of Subcontract Agreement.
9. INDEMNIFICATION OF CONTRACTOR PATENl'S AND PATENT
RIGHTS The Subcontractor hereby covenants and agrees to
indemn~fy and save harmless the Contractor from any and all
claims or suits from infringements of patents or violation of
patent rights, including all costs and expenses to which the
Contractor may be put in defending any action that may arise
through the work of the Subcontractor.
10. INDEMNIFICATION OF CONTRACTOR AND OWNER FROM ALL
LIABILITY The Subcontractor shall have charge of the entire work
until completion and acceptance, and shall alone be liable for
and shall pay all loss or damage caused by him or by his
servants, agents or employees to property, buildings or adjacent
work and for any accident to persons that may occur during the
performance of the work covered by this Subcontract or at any
time thereafter as a consequence of the performance of said work.
The Subcontractor shall observe all state and municipal laws,
ordinances and regulations and shall defend and save harmless the
Contractor and the OWner from all suits and claims whatsoever for
loss of life or injury occurring to employees of the
Subcontractor who perform such work. The Subcontractor agrees to
fully indemnify, protect and save harmless the Contractor and the
OWner from all liability from all claims, loss, damage, suits and
actions of every kind and from all costs and expenses in
connection with such claims, suits and actions due to injuries to
persons or damage to property whether resulting from accident,
negligence or any other cause whatsoever occurring during the
performance of the work covered by this Subcontract or at any
time thereafter as a consequence of the performance of the same
or which may at any time occur or result from or be caused by
such work and if there are any such claims unsettled when the
work herein provided for is completed, final settlement by the
Contractor and Subcontractor shall be deferred until such claims
are adjusted or suitable special indemnity acceptable to the
Contractor is provided by the Subcontractor.
11. TAXES The Subcontractor shall pay all the Pennsylvania
Sales and Use Taxes on all taxable items, and all Federal old Age
Benefit Taxes, Federal Unemployment Compensation Insurance on all
labor furnished under this contract, as required by the
Commonwealth of Pennsylvania and the United States Government, as
well as any other taxes, Federal, Stato or Local, applicable to
or occasioned by the Subcontractor's performance of this contract
or employment of persons hereunder.
CONCUR,
CONCUR I
/,'! I A
. .1 / KJ,.
RMMII :f::::JVI /.I~~'
RMM II
""""'"
CUMBERLAND 'VALLE~"MIDDLE SCHOOL/SSO
June 14, 1994
TELCO, INC
'-.::,..
.
12. CONTRACT COMPLIANCE The Subcontractor shall abide by
all referenced or identified prime contract provisions for
Federal aid projects, statutes, rulos, regulations or procedures
applicable thereto as well as by all such prime contract
provisions calling for observance of certain Pennsylvania or
local statutes, rules, regulations or procedures whether or not
specifically referred to in this subcontract and whether or not
forms or certificates are supplied to the Subcontractor to
achieve such compliance; without limitation such matters include
Federal and/or state non-discrimination provisions, re-
negotiation provisions, minimum wage provisions, anti kick-back
provisions, pay day provisions, daily and weekly overtime
provisions, payroll deduction provisions, payroll classification
and apprentice provisions. Payments under this subcontract may
be withheld at any time to the extent necessary to affect
compliance with this or any other article of this subcontract.
Moreover, the Subcontractors shall maintain a record of the total
cost of all materials and supplies purchased for and incorporated
in the work and also the quantities of those specific materials
and supplies and in the units shown. Upon completion of the
subcontract, this record, together with the final labor summary
shall be submitted to the state District Engineer, for all State
and Federally assisted projects, for the project on the State's
appropriate form for such or on a form supplied by the prime
contractor in accordance with instructions thereon. The
quantities for the listed items shall be reported separately for
roadway and for structures over twenty feet long as measured
along the entire center line of the roadway.
13. ASSIGNMENT OF SUBCONTRACT None of the rights under
this Subcontract, including assignment of funds, shall be
assigned by the Subcontractor without prior written consent from
the Contractor. Any attempt to assign the Subcontract will
operate as an instant forfeiture and repudiation thereof by the
Subcontractor and the rights of the parties shall be determined
in the same manner as though the Subcontractor had at the time of
such attempted assignment failed and refused to continue to
perform the contract.
14. EXTENSION OF TIME No allowance of time will be made
the subcontractor for delay in preparing his drawings or, in
securing approval of the OWner and the Contractor's engineers
when such drawings are not properly prepared for approval of the
OWner and the Contractor's engineers.
Extension of time to be
the same only as is granted
will be in accordance with
Contract.
granted to the Subcontractor will be
to the Contractor by the owner, and
the Specifications in the Principal
CONCUR I
CONCUR:
RMMII b~[!L(G:.
RMM II
CUMBERLAND VALLEY;MIDDLE SCHOOL/550 .
June 14, 1994
TELCO, INC
..
. .,
.
15. CONTRACT AND LABOR AND MATERIAL BONDS The
Subcontractor further agrees that he will simultaneously, with
the execution of this agreement,. provide the Contractor, if
requested, with a Contract Bond, covering satisfactory
performance of the work contracted, the penal sum of 100\ of the
amount of the contract, and an "Additional Bond for Labor and
Materials," covering the prompt payment in full for utility
services rendered to sub-Subcontractors and for all materials
furnished, rental for equip~ent ,used, and/or labor supplied or
performed, in the prosecution of the work, and also in the penal
sum of 100\ of the amount of the contract. Both bonds must also
be executed by a Corporate Surety satisfactory to the Contractor.
Payments under this subcontract may be withheld at any time
during the life of same for non-compliance with the above bonding
requirements.
16. TERMS OF PAYMENT The Contractor agrees to pay the
Subcontractor his portion of all payments received by the
Contractor from the OWner within Seven (7)- days after receipt
thereof. It is also understood and agreed that all estimates
shall include the materials,on the site if so permitted by the
OWner as a part of the current estimates.
It is further understood and
account shall operate as an approval
or any part thereof.
agreed that no payment on
of said work or materials,
17. APPROVAL OF SUBCONTRACT It is understood and agreed by
the parties hereto that this agreement is subject to the approval
of same by the OWner.
It is also understood and agreed that this agreement is
subject to the principal rontract in its entirety, entered into
by the Contractor and the uwncr, relating to this particular
project.
lB. CONTRACTOR'S RIGHTS TO WITHHOLD PAYMENTS
IT IS UNDERSTOOD AND AGREED THAT THE SUBCONTRACTOR
SHALL PAY -
(a) All employees unconditionally and not less often
than once a week.
(b) For all
later than the lOth day
which said services are
transportation and utility services not
of the calendar month following that in
rendered.
CONCUR I
CONCUR I
rentals, and other
day of the calendar
RMMII EM (v~~
(c) For all materials, tools,
expendable equipment not later than the 10th
RMM II
CUMBERLAND VALI,E.rMlDDLE SCIIOOL/550
June 14, 1994
TELCO, INC
.
month following that in which eaid materials, tools, rentals and
equipment are delivered at the site of the project.
A Contractor shall have the right to withhold payments from
the Subcontractor, in addition to retain percentages as may be
provided in the Principal Contract, of such amounts as may be
necessary both to insure compliance with all of the terms of this
Contract by Subcontractor, for work performed by the Contractor
or other subcontractors in accordance with paragraph 4 of this
Contract, and as necessary to pay all just claims for labor and
services, rental and materials furnished in and about said work,
which is the obligation of the Subcontractor to pay. The
Contractor shall have the right, acting as agent of the
Subcontractor, to apply such retained amount to the payments of
such just claims and for work required to be performed.
19. SUBCONTRACTOR'S RELEASE TO CONTRACTOR Upon receipt of
final payment, the subcontractor does hereby agree to give the
Contractor a duly signed release relieving the Contractor from
any liability in regard to monies due under this Subcontract, and
the Subcontractor will certify that all of his obligations for
services, materials, equipment rental, tools, etc., incurred on
this Subcontract have been paid and that if any liability should
occur on his behalf, then the Subcontractor will indemnify the
Contractor.
20. APPROVAL OF QUANTITIES Prior
final quantities, the Contractor shall give
of such quantities to the Subcontractor for
to the acceptance of
five (5) days notice
his approval.
21. PRIOR NEGOTIATIONS AND AGREEMENTS All negotiations and
agreements prior to the date of this agreement are merged herein.
This Subcontract has been read and is fully understood by the
Subcontractor.
their
agree
The Contractor and the subcontractor for themselves,
successors, executors, administrators and assigns, hereby
to the full performance of the covenants of this agreement.
TERMINATION If prime Contractor's work is terminated or
abandoned, if Subcontractor cannot work in harmony with other
Contractors, Subcontractors or their employees, is in breach of
contract or it is otherwise necessary for the welfare of the job
in the judgment of the Contractor to terminate this contract,
Contractor may do so by written notice to subcontractor and,
absent any breach ot contract by Subcontractor, pay subcontractor
on a pro rata basi. tor contract completion to that point
accordingly as the prime contractor has been 80 paid tor such
work by the Ownar, but subcontractor .hall not raceive nor be
ent!tled to anticipated prot1ts tor any work not completed by
Subcontractor at t!me ot termination. ," ,'J
CONCUR I CONCUR I RMMI I ~',i~t(d....
RMMll _~,._,."
SlIllOONIIUlllrlllllRJf 4.ft,!
10
~ ~'"
........1
CUMBERLAND VALLEY MIDDLE SCHOOL/SSO
June 14, 1994
TELCO, INC
.
IN WITNESS WHEREOF, the parties hereto, with the intent to
be legally bound hereby, have executed this Subcontract the day
and year above written.
ATTEST:
t/l J; '..
t,t1f(JljI..1J'ttr f) /U{;Wf
. Secretary
(Corporate Seal)
ATTEST OR WITNESS:
ozjJ-Q ~,
(Title)
~~: G. Gardec.1d -' Secretary/Treasurer
(Corporate Seal)
CONCUR:
RMM II
SUUeOflIllIJUla:lDBRcf'I/. H--
CONTRACTOR I
Adams County Asphalt Company
r.l: ..('1" ,\ -
. 'vA,. . :' I I J J I ..
...,...'-......', ".. .I) ...1.1.'...1.1:,~'::":
Robert M. Mumma II, President
SUBCONTRACTOR:
Telco, Inc.
. -.-A '
BY:~ 'A. //... -
~ ""\ Iv ----..-..
,
Richard A. Hivner - Plesident
CONCUR:
.-/' 'I ",
\ ,. 'II;'
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RMMII 1- ..
12
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"
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.
~ . ,]C3~C~CDij Q~Jlca~
. R.D.1I2 Box 2881
Cross Keys Roat'
RBldlng, PA 19605
SHIP TO:
INVOICE
Phone: (6101 916.E2CO
FIX: (610191E.1377
.It- ""T urc;'.
D'~I INvelCt NO. I~.
11/1""04 5~~7
"CCCUNT NO. T1~MS I"IP VI. OU~ O~OE~ NO. VCU~ O~OIA .~D.
ITI\I NC. OIlC~IPTlON CU.l~TlTI ' IAICE [,C":I~SiCN
CUlil::erla.'li Va.11ey Ne,.r Mit!d1e Sc 001
.job No. 550
Tra~!ic Si'iTAllzation at &os
inte.action of carlisle Pi-Ite
(SR 0011) ar.d CUr.l::e:larc Valley
Hi;h School Drive,.ray in Silver
SFrir.q TcMr.ship lS S 44,315.:5
Siqn Installation LS . 2,C9~. ;OJ
PlIVl!1'A!l1t Hek.ir.qs Ui . 3,i95.CO
'roI'AL s ~'1,2C~.::
SOLD TO: l'.c.arrs Count-f As1=halt Co., Ir.c.
P.O. Eox 1531
H. 'isb PA 17105
T.rm.: A. no"" - "'" "loll unwnu 1\llIiU111 Itrwic, '"''1' II 1:\, u' mo,UJ\.I' I~ 'If ,nnuml.
MInimum ""'ICI 1!'\"9' I, .l.CO III monl".
"'~
." <t
o
.
~~fl (H(j\ flm(i-.
" 'oWl L.:Il.:. '-:J ';J ~ lJ I"N~,.~
Phone: (6101916.6200
Fax: (610)916.1377
.
Traffic Electrical & Lighting Co.. Inc.
R.D. 112 Box 2BB 1
Cross Keys Roao
Reading. PA 19605
.
January 25, 1995
dams County Asphalt Co., Inc.
P. O. Box 1531
Harrisburg, PA 17105
Attn: Mr. Robert M. Mumma, II
President
RE: cumberland valley Middle School
S.R. 0011 (Carlisle pike) and
cumberland Valley High School
Driveway
Traffic Signal Installation
Dear Mr. Mumma:
Enclosed you will find
tlove::mer 16, 1994 representing
project. The invoice was broken
a copy of our
our completion of
down as follows I
invoice 5567, dated
the above referenced
1. Traffic signal Installation
2. sign Installation
3. Pavement Marking Installation
TOTAL
LS
LS
LS
$44,315.95
2,099.00
3.795.00
$50,209.95
At this time, this invoice is thirty (30) days past due and
a~ter repeated attempts were made to contact you regarding payment ~t
this delinquent invoice, we are writing to you to advise you ~hat we
have been in contact with the Cumberlan~valley School District and
our intention is to file suit for payment against your Payment Bend
tor this project.
Very truly yours,
TELCO, INC.
/'" .' ....,. .
.1::. ... '-"'-----........
. ~,~ .......<... .
I"~ -
.u Richard A. Hivner
President
RAJilerk
Enclosure
Silver SPriM Tawnship. - Mr. John Freiliro - TchInShip ManI1gr>.r
cc I CUllUlerll1nd .Valley school District - Mr. Richard Vensel
Ilay Group, Inc. - Mr. Tcl1\ KiIYJ
CERTIFIED MAIL - R.R.R.
tp
Mambar of Intarnatlonal Munlolpal Signal Allocl.tlon
f:XlIlllt1' "l':"
DAVID .... MoaLO'"
WALTE" M. DIIEHIE". .I",
.l1E.TYH G. "AYHIE
.lAME. "" ,IEDLIV
.OC"ATE8 .... GIO"OIlADla
..ICM LONG
.lAMII. M. LILLI'
.lC,.....II... ... IILLloTT
'..IAN ,. IOLAHD
110""'" W. .AWTILLI:.
0110..0& C.IALCHUN"a
,IITII" ,.. .CHUCHMAH. j".
DANieL. "IIECKI" .
As you may know, the Pennsylvania Contractor and Subcontractor
Payment Act entitles a subcontractor who has performed his
obligations properly under the terms of a subcontract is entitled
to receive a penalty equal to 1\ per month of any amount determined
./\ to have been wrongfully withheld, together with attorney's fees and
expenses. If provision for payment of Telco's invoice dated
'.: ., \ November 16, 1994 is not made by Friday, February 24, 1995, we will
initiate legal proceedings to collect that payment from your
\ company and, if necessary, we will initiate proceedings directly
\ with the bonding company. .
, \\\ \
.~ \\ \
\
c;l ~N\
\ ~~~:~ \
,~~ \l.,.~:\~\\ ~s
. ~. ~ \, ,- \lh d
~. ~ ~.~. ~ar A.lIivner, President
,- .-
e
LAW orrtc:u
KOZLOFF. DIENER. PAYNE & FEGLEY.
P"O'~..IONAL CO"~O"ATIOH
a...o W~.TVIC.W O"IVI:
R 0. BOM eaee
WYOMlaaINO. PA. I...IC
COUHal:L
'''ANKL1H E. ,"oo..c 11I11..'\
'.ICI .70.....
0,. COUNar.L
,.AMILA j, CALA
February 14, 1995
TELleD...I"
'.lcl .'C-.I.I
Adams County Asphalt Co., Inc.
P.O. Box 1531
Harrisburg, PA 17105
Attnl Robert M. Mumma, II, President
CERTIFIED MAIL, R.a.R. AND FIRST CLASS MAIL
ReI CUmberland Valley Middle School
Project/Telco
Our File No. 8869-11
Dear Mr. Mumma I
We have been advised by Richard Hivner, President of Telco, Inc.,
that your company has not remitted payment as called for in the
Contract between your company and Telco dated July 14, 1994. Mr.
Hivner has provided us with a copy of that contract, along with
correspondence and a copy of his invoice dated November 16, 1994
an4 a copy of his letter to you of January 25, 1995. Mr. Hivner has
also advised us that your company has not picked up its certified
ma11 from Telco. Mr. Hivner has also obtained a copy of the Payment
Bond which your company posted with the CUmberland Valley School
District.
Very truly yours,
KOZLOFF, DIENER, PAYNE & FEGLEY
James R. Fegley
. .
DAVID M, KOILO,."
WALTC" M. DICNCft. ..1ft
..IC.,...N Q. ~AVNE
"'AMC. ft. "COLI:'"
.OC......TC. .J. oeo..a~ADI.
..ICK LONG
..IAMC. .... LILLI.
..IC,,,"CV ... eLLIOTT
."IAN ,. .OLAND
.Allln... W. .AWTCLLC
01.0"01. C. .ALCHUNAI
~&T&" ... eCHUCHMAHI JA.
DANICL " .CCKC"
~ .
2&40 WCITYII:.W D,uYE
Pi O. Box eaOG
WVOMI..INO, PA. tecuo
18101870-....
0' COUHaCL
"AMeLA oJ. CAt.A
COUHaltL
'''AHMLIH E. "OOAe III tI..?'
. ..
February 14, 1995
TCLI:.COP'CA
1.101 ."0-...'
Adams County Asphalt Co., Inc.
P.O. Box 1531
Harrisburg, PA 17105
Attn: Robert M. Mumma, II, President
CERTIFIED MAIL, R.R.R. 1~ FIRST CLASS MAIL
Re: CUmberland Valley Middle School
Project/Telco
Our File No. 8869-11
Dear Mr. Mumma I
We have been advised by Richard Hivner, President of Telco, Inc.,
that your company has not remitted payment as called for in the
Contract between your company and Telco dated July 14, 1994. Mr.
Hivner has provided us with a copy of that contract, along with
correspondence and a copy of his invoice dated November 16, 1994
anq. a copy of his letter to you of January 25, 1995. Mr. Hivner has
also advised us that your company has not picked up its certified
mail from Telco. Mr. Hivner has also obtained a copy of the Payment
Bond which your company posted with the CUmberland Valley School
District.
As you may know, the Pennsylvania Contractor and Subcontractor
Payment Act entitles a subcontractor who has performed his
obligations properly under the terms of a subcontract is entitled
to receive a penalty equal to 1\ per month of any amount determined
t'.- to have been wrongfully withheld, together with attorney' e fees and
,I -"-.Jl!Ies. If provision for payment of Telco's invoice dated
. . --JJi.... 1994 is not made by Friday, February 24, 1995, we will
t . ::~ ""...'........~roceedings to collect that payment from your
'0 IE Cf", --IlO', we will initiate proceedings directly
~ ~ ~ --
II"- c'-'''.o".... ..,~ "'I'~"", -_
.... .-.." ( . -
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... . ...::"""IJfAlcl ' -.....
~ Ilt:tq:' , .. .. "" FOITM~~t D, D;;; - -_
~ ~~ "I - 0.1\ f! FEGLEY
.p.O ~t;y . I~ . . . ~\')" . ~
1lcr:,,:J.~!:J7 A..'J'''X~It: Q,.~1, l>.l.'~~ go ~ ~
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H,LeD INC. REROI!:A!PA,I9605
002
N.t'on.' Union fir. In.ur.ne. Company
of Pltt.burgh, P..
EXECUTIVE OFFICES
70 PIne Slreel
New Vorl<. N.V. 10210
212/770-7000
Dlrecl DIll: al al77~ 103
Fcbrull)' 9, 1995
ItJd1Ird A, Hl~. Pmidcnl
TeIoo, lno.
TraftJc EIec&r1caJ a. L1alll\ng Co, Inc,
R.D. 1#2 Box 2'"
CroN ~ Road
~ I'A 19605
It.: Principal:
Bond No.:
Claim No,;
Project:
o.r Mr. Ulmer:
Adami Counly Atphall
09.29.86
165-011202
Cumberland Valley Middle School
bond.
Thit wlJJ Icknowlcdle your wrrClpondence lCuing fortb a claim against our Prlncipal'a
8y ClOp)' orlblll.IIIT IIId In accordlllCl wilh our inilial lnvCllla'llon, we 111I requellln,
that OUl l'rinc:ipII promplly review )'our correspondence and adviJe UI oflhclr poshlon In regard
10 Ihls malt....
PtlIdllw our PIinl:ipal"I\!lIpun.., Ihisleller lSllnl wllhoUI Plcjudlce 10 Ihe riabll oflho
Surety and lhal of Itt Principal and it thall nOl conalilu" I waiver or relea.. of lilY oflhelr rlSM"
delinlet and/or clalmt.
VC: ~y )'oun, ,/ .
7i1c:.; rl:'I/.J':.1
Vila S Uo
Dond Clalma Examiner
VSlno
~ :.=:o.::.:.v'_,~
....1 1111I1
. " .
. -. '
. "
Cvhlhl. C
.
,-
,.-..
. -, .
National Union Fire Insurance company
of pittsburgh, Pennsylvania
Attn: Vito Sancilio, Bond Claims Examiner
March 27, 1995
Page 2
you seeking all remedies provided by law.
Thank you for your attention to this matter.
Very truly yours,
KOZLOFF, DIENER, PAYNE' FEGLEY
Peter F. Schuchman, Jr.
PFSllmp
ce: Telco, Inc.
Attn: Richard A. Hivner, President
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ADDRESS -_~--~~ ~ =~_=-_(p~~'GUJ.;14tt1:-:-~I.i.C
MUNIC1P~tV W1RD/CITV WARD _ __d _ __ _ _ ____=~.. _ I I OTHER_ . ---- -
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ALLEGHENY COUNTY SHERIFF'S DEPARTMENT
ROOM 111 . COURTHOUSE
PITTSIlUROH. PI. 15210
Phono: 3504700
JOHN M. MCNAMARVfr 1
Chl.1 O.puty '"
EUGfNE L.cION
.. lIhllltl
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CASE /(\ - d. -r;v .
EXPIRES .. 0-- .:;) /
I I SUMMONS/PRAECIPE
~COMPI.AINT ONL V
I NOTICE AND COMPLAINT
I REVIVALJSCI FA
IIINHRROGATORlES
I I EXECUTION. I.EVV
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IlmlCAIE TYPE OF SEnVICE. II PERSONAL II PEASON IN CHARGE II DEPUTIZE II CERI MAil II 1'051E0 I : 01llER : I lEVY Ii SEIZEO a 51 ORE
t/uw._________________..._ ._.___ .._'9__ I. SHERIFF OF AllEGHENY GOUt/IY. 1'1. do h...by d.puli.e tho Sho,,1I ul
CountV to Dncute thl. Will end rnatle return thoreDI Bccording to law.
NOTEl aNL Y APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN. Any deputy ,hln" Ie\lymg UIJOn VI alllt ,,,ng ,f1y prOflerty undel 'I'I.lh'fllfrl,llnIV
1'1\1' ..m. without, watchman, in CUllody 01 whom...., II Iound in potlnllon, ,P1lr noM,.ng plrson of IriY 01 Inlehmlnl, w,Ih oul .Ibillly on 1111 plrt ol'lIeh depllly
hll.in 101 Iny klll, dllllrllc!lon 01 ,emovel 01 Iny loch property belole .henl!'. nl, Ihereol
SOiZ.. lovy, odvortiso and soli olllho porsonel proporly ollho dolondent on Iho promiBoa loceted 01:--- u______.___
-----.-----.------ .-------..---.----
MAKE
MODEL
MOTOR NUMBER
SERIAL NUMIlER
LICENSE NUMBER
____________._________ ....SHERIFF.S OFFICE USE ONLY ___________________.._
I h...by CERTIFY end RETURN \hot on 'h. --Z d.y .,- d. ut:!t?______. -.----....------.----. lB~
__m____.____ / 2-- o'tlotk, A IPM ddr... AbCNIIAddr... B,low, COll'l'Y 01 Allegheny, Penn,ylv.nl'
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PfS/ea69"',NOO/JuIV '0, 1995
TELCO, INC.,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
vs.
NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, pA.,
Defendant
No. 95-2756
CIVIL TERM
CERTIFICATE OF SERVICE OF NOTICE OF INTENT
TO ENTER DEFAULT JUDGMENT
I, Peter F. Schuchman, Jr., Esquire, do hereby certify that
Notice of Intent to Enter Default Judgment and this Certificate of
Service was served, by first class mail, upon the following
party(s)I
National Union Fire Insurance company
of Pittsburgh, PA
70 pine Street
New York, NY 10270
Attnl Mr. Vito Sancilio
Mr. Mark pessolano
I make this certification subject to the penalties of 18 Pa.
C. S. Section 4904 relating to unsworn falsif ication to authorities.
KOZLOFF, DIENER, PAYNE & FEGLEY
Peter F. Schuchman, Jr., Esqu re
Attorney 1.0. 169343
2640 westview Drive
P. O. Box 6286
Wyomissing, PA 19610
(610) 670-2552
Date Notice of Intent to
Enter Default JUdgment
was sentI July 10, 1995
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PfI/1869,".PlD/Augult 17. '99~
PllIintifr
IN 'I'IIE COUR'I' OF COMMON PLEAS OF
CUMBEIUANO COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
TELCO, INC.,
VB.
NATIONAL UNION FIRE IN6URANCE
COMPANY OF I'ITTSDUHGII, PA.,
Oefentlant
No. 95-27!l6
CIVIL TERM
PHAECII'E FOR OISCON'1'I NUANCE
TO TilE PR01'1I0N01'AHY I
Kindly mark the dockot in the above-captioned aotion "settled,
discontinued and ended with prejudice, and costs paid."
KOZr.o~'~", 01 ENER, PAYNE , FEGLEY
e~~c:. (~. <~~ f.
Peter F. Schuchman, Jr., Esqui~
Attorney 1.0. 169343
2640 Westview Drive
P. O. Box 6296
Wyomissing, PA 19610
(610) 670-2552
Datedl <6( 7 ((~ S
,
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I
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Pfl/B869"',P2D/Au9UI' '7, '99!
TELCO, INC.,
IN TilE COURT OF COMMON PLEAS OF
CUMDERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
Plaintiff
vs.
NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, PA.,
Defendant
No. 95-2756
CIVIL TERM
CERTIFICATE OF SERVICE
I, Peter F. Schuchman, Jr., Esquire, do hereby certify that
a time-stamped copy of Praecipe for Discontinuance was served, by
first class mail, upon the following party(s)I
National Union Fire Insurance company
of Pittsburgh, PA
70 Pine Street
New York, NY 10270
Attnl Mr. Mark Pessolano
I make this certification subject to the penalties of 18 Pa.
C.S. Section 4904 relating to unsworn falsification to authorities.
KOZLOFF, DIENER, PAYNE & FEGLEY
~
,",,-
Peter F. Schuchman, Jr., Es
Attorney 1.0. 169343
2640 Westview Drive
P. O. Box 6286
Wyomissing, PA 19610
(610) 670-2552
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