Fairview Park Excavating Co. v. Al Monzo Construction Co.

Fairview Park Excavating Co. (Fairview) (plaintiff) performed work as the subcontractor for a contract secured by Al Monzo Construction Co. (Monzo) (defendant/cross-claimant). Monzo secured this contract with Robinson Township, Pennsylvania (Township) (defendant/cross-claimee). When Fairview was not paid for its work, Fairview sued Monzo, the Township, and Maryland Casualty Co. (defendant), which was the surety on Monzo’s bond. Monzo and Maryland Casualty filed a counterclaim, alleging that Fairview did not perform its work properly. Monzo and Maryland Casualty also cross-claimed against the Township. The Township counterclaimed against Monzo, alleging damages based on defective work. On the first day of trial, the court dismissed Fairview's complaint against the Township under Pennsylvania state law, which stated that a subcontractor could not sue a city because there is no privity of contract between the two parties. On the same day, the district court dismissed Monzo's cross-claim against the Township, stating that there was no longer diversity jurisdiction, and that the matters should be resolved in state court. After the trial on Fairview's complaint against Monzo, the court entered judgment in Fairview's favor. The court subsequently denied a motion by Monzo and Maryland Casualty for a new trial. Monzo appealed to the United States Court of Appeals for the Third Circuit. At oral argument on the appeal, the court learned that Monzo had won a judgment against the Township in Pennsylvania state court for the same relief that Monzo had requested in its federal cross-claim.