Fairview Park Excavating Co. v. Al Monzo Construction Co.
United States Court of Appeals for the Third Circuit
560 F.2d 1122 (1977)
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 the 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), 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 counter-claimed against Fairview. When the case came to trial, Fairview was dismissed under Pennsylvania state law, which stated that a subcontractor could not sue a city since there is no privity of contract between the two parties. On the same day, the district court dismissed the cross-claim, stating that there was no longer diversity jurisdiction. Monzo appealed to the Court of Appeals.
Rule of Law
Holding and Reasoning (Garth, J.)
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