{"id":3911,"date":"2015-07-17T13:17:45","date_gmt":"2015-07-17T17:17:45","guid":{"rendered":"https:\/\/www.khflaw.com\/draft071515\/?p=3911"},"modified":"2020-09-23T18:17:42","modified_gmt":"2020-09-23T22:17:42","slug":"pennsylvania-supreme-court-holds-that-caspa-does-not-apply-where-the-owner-is-a-government-entity","status":"publish","type":"post","link":"https:\/\/www.khflaw.com\/news\/pennsylvania-supreme-court-holds-that-caspa-does-not-apply-where-the-owner-is-a-government-entity\/","title":{"rendered":"Pennsylvania Supreme Court Holds That CASPA  Does Not Apply Where The Owner Is A Government Entity"},"content":{"rendered":"<p>In <em>Clipper Pipe &amp; Serv., Inc. v. Ohio Casualty Insurance Co.<\/em>, the Pennsylvania Supreme Court held that the Contractor and Subcontractor Payment Act, 73 P.S. \u00a7\u00a7 501-506 (\u201cCASPA\u201d), does not apply to construction projects where the owner is a government entity.<\/p>\n<p>The United States Department of the Navy had entered into an agreement with Contracting Systems, Inc. II (\u201cCSI\u201d) for the construction of an addition to, and renovations of, a training center in Lehigh Valley. CSI, in turn, subcontracted with Clipper Pipe &amp; Service, Inc. (\u201cClipper\u201d) to perform heating, ventilation, and air conditioning work. When CSI failed to pay Clipper per the terms of their agreement, Clipper filed suit against CSI and its surety, the Ohio Casualty Insurance Company (\u201cOCIC\u201d) in the United States District Court for the Eastern District of Pennsylvania.<\/p>\n<p>OCIC and CSI moved for summary judgment contending that CASPA does not apply to public works projects because a government entity does not qualify as an \u201cowner\u201d under CASPA. CASPA defines an \u201cowner\u201d as \u201c[a] person who has an interest in real property that is improved and who ordered the improvement to be made.\u201d \u201cPerson\u201d is defined as \u201c[a] corporation, partnership, business trust, other association, estate, trust foundation or a natural individual.\u201d According to CSI and OCIC, government bodies cannot be \u201cowners\u201d under CASPA because the word \u201cgovernment\u201d does not appear in the definition \u2013 i.e., a government body is not an \u201cassociation\u201d and therefore not a \u201cperson\u201d or \u201cowner.\u201d Further, OCIC and CSI argued that the Prompt Payment Act (\u201cPPA\u201d), not CASPA, addresses public works projects. OCIC and CSI argued that given the substantial differences between CASPA and PPA, it would be untenable if both applied simultaneously.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.khflaw.com\/news\/pennsylvania-supreme-court-holds-that-caspa-does-not-apply-where-the-owner-is-a-government-entity\/\"  title=\"Continue Reading Pennsylvania Supreme Court Holds That CASPA  Does Not Apply Where The Owner Is A Government Entity\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In Clipper Pipe &#038; Serv., Inc. v. Ohio Casualty Insurance Co., the Pennsylvania Supreme Court held that the Contractor and Subcontractor Payment Act, 73 P.S. \u00a7\u00a7 501-506 (\u201cCASPA\u201d), does not apply to construction projects where the owner is a government entity.<br \/>\n<strong>For immediate assistance please call us at (215) 525-5850.<\/strong><\/p>\n","protected":false},"author":3,"featured_media":4625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[480,486,414],"tags":[327,93],"coauthors":[512],"class_list":["post-3911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-litigation-and-dispute-resolution","category-construction-litigation","category-publications","tag-pennsylvania","tag-third-circuit","publication_lawyer-kang-haggerty-fetbroyt-llc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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