SENATE AMENDED
PRIOR PRINTER'S NOS. 1062, 1599, 1797 PRINTER'S NO. 3381
No. 920 Session of 1977
INTRODUCED BY MESSRS. MANDERINO, GOODMAN, B. F. O'BRIEN, CAPUTO
AND PARKER, APRIL 20, 1977
SENATOR SMITH, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JUNE 12, 1978
AN ACT
1 Amending the act of May 20, 1937 (P.L.728, No.193), entitled "An
2 act providing for the creation of a Board of Arbitration of
3 Claims arising from contracts with the Commonwealth;
4 providing for and regulating the procedure in prosecuting
5 claims before such board; defining the powers of the board;
6 and fixing the compensation of members and employes thereof;
7 providing that the awards of such board shall be final;
8 providing for the payment of awards; and authorizing an
9 appropriation," changing the title of the board and its
10 members and making it an independent administrative agency;
11 transferring certain additional jurisdiction to the court;
12 making certain repeals; increasing the terms of court
13 members; further providing for the compensation of court
14 members; providing for hearing panels and for additional <--
15 expenses; changing procedures for transcripts; providing for
16 the disposition of written complaints and providing for
17 appeals to go to the Commonwealth Court.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The title, act of May 20, 1937 (P.L.728, No.193),
21 entitled "An act providing for the creation of a Board of
22 Arbitration of Claims arising from contracts with the
23 Commonwealth; providing for and regulating the procedure in
24 prosecuting claims before such board; defining the powers of the
1 board; and fixing the compensation of members and employes
2 thereof; providing that the awards of such board shall be final;
3 providing for the payment of awards; and authorizing an
4 appropriation," is amended to read:
5 AN ACT
6 Providing for the creation of a [Board of Arbitration] Court of
7 Claims arising from contracts with the Commonwealth;
8 providing for and regulating the procedure in prosecuting
9 claims before such [board] court; defining the powers of the
10 [board] court; and fixing the compensation of members and
11 employes thereof; providing that the awards of such [board]
12 court shall be final; providing for the payment of awards;
13 and authorizing an appropriation.
14 Section 2. Sections 1 and 2.1 of the act, amended or added
15 September 29, 1961 (P.L.1738, No.705), are amended to read:
16 Section 1. Be it enacted, &c., That there is hereby created
17 a [departmental] independent administrative board [in the
18 Department of the Auditor General] known as the [Board of
19 Arbitration] Court of Claims, the duty of which shall be to
20 arbitrate claims against the Commonwealth arising from contracts
21 entered into by the Commonwealth, and to adjust and settle
22 certain other claims against the Commonwealth formerly handled
23 by the Auditor General and State Treasurer acting as the Board
24 of Claims. Any reference in this or any other act to this board
25 shall be deemed a reference to the Court of Claims.
26 Administrative services for the Court of Claims shall be
27 provided by the Department of the Auditor General. Such [board]
28 court shall consist of three members appointed by the Governor,
29 one of whom shall be learned in the law and shall be chairman of
30 the [board] court, another of whom shall be a registered civil
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1 engineer. The third member of the [board] court shall be a
2 citizen and resident of the Commonwealth. [not learned in the
3 law or an engineer.] The lawyer member shall hold the title of
4 chief administrative judge, one member shall have the title of
5 engineer member and one member shall have the title of citizen
6 member. Two members of the [board] court shall constitute a
7 quorum. The members shall be appointed for terms of [two, four,
8 and six] four, six and eight years, and shall serve until their
9 respective successors shall be duly appointed and qualified.
10 Their successors shall each be appointed for a term of [six]
11 eight years. In the event any member shall die or resign during
12 his term of office the Governor shall appoint a successor who
13 shall hold office for such unexpired term. Each member of the
14 [board] court shall receive an annual compensation [of eleven
15 thousand dollars ($11,000)] OR THIRTY-TWO THOUSAND DOLLARS <--
16 ($32,000), except that the chairman who shall receive an annual
17 compensation of [thirteen thousand five hundred dollars <--
18 ($13,500)] THIRTY-FIVE THOUSAND DOLLARS ($35,000), and] as may <--
19 be fixed by the Executive Board and each member of the court and
20 the executive secretary of the court shall also be entitled to
21 all necessary traveling and other expenses which expenses to <--
22 include mileage for each mile actually traveled from the
23 residence of each member to the place of hearing and return,
24 incurred by him in the discharge of his official duties. Each
25 member of the court shall be required to devote full-time to the
26 duties imposed by this act and to discharge such duties on such
27 days and during such hours as are required of other full-time
28 State employes.
29 The Court of Claims may, in its discretion appoint three <--
30 hearing panels consisting of two individuals each, one of whom
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1 shall be a registered engineer and the other of whom shall be
2 learned in the law and shall be the chairman. These individuals
3 shall receive actual traveling expenses and per diem
4 compensation at the rate of one hundred fifty dollars ($150) per
5 day for the time actually devoted to the business of the court,
6 but no panel member shall be paid more than ten thousand dollars
7 ($10,000) per diem compensation in any calendar year. The
8 hearing panels shall be denominated the Eastern, Middle and
9 Western District Hearing Panel, respectively, and shall have
10 jurisdiction in areas of the Commonwealth coterminous with the
11 three judicial districts of the United States District Courts in
12 the Commonwealth established by section 118 of the Judicial Code
13 and Judiciary, act of June 25, 1948, as amended June 2, 1970
14 (Public Law 91-272), 28 U.S.C. section 118.
15 Section 2.1. The [board] Court of Claims shall appoint an
16 executive secretary and shall have the power to and may, at its
17 pleasure, appoint such employes including lawyers, engineers and
18 stenographers as are needed in the proper exercise of its
19 functions. The executive secretary and each employe of the
20 [board] court for the purposes of the [State Employes'
21 Retirement System] Part XXV of Title 71 of the Pennsylvania
22 Consolidated Statutes (relating to retirement for State
23 employees and officers) shall be considered a State employe.
24 [The executive secretary and any] Any employe of the [board]
25 court shall receive all necessary traveling and other expenses
26 incurred in the discharge of his official duties elsewhere than
27 in Harrisburg. The [board] court shall maintain its office in
28 Harrisburg. No charge shall be made against the Commonwealth for
29 copies of notes of testimony or other papers furnished to the
30 Commonwealth. The claimant or any other party [shall pay the
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1 board at such rates as the board may, by rule, determine for
2 copies of notes of testimony furnished at the request of the
3 claimant or any other party] may purchase a copy of testimony
4 directly from the official stenographer. THE COURT SHALL EMPLOY <--
5 A REPORTER, WHOSE DUTY IT SHALL BE TO CATALOGUE AND HAVE
6 PUBLISHED ALL OPINIONS OF THE COURT.
7 Section 3. Section 3 of the act is amended to read:
8 Section 3. The [board] Court of Claims shall adopt an
9 official seal, which shall authenticate its proceedings.
10 Section 4. Section 4 of the act, amended September 29, 1961
11 (P.L.1738, No.705), is amended to read:
12 Section 4. The [Board of Arbitration] Court of Claims shall
13 have exclusive jurisdiction to hear and determine all claims
14 against the Commonwealth arising from contracts hereafter
15 entered into with the Commonwealth, where the amount in
16 controversy amounts to $300.00 or more. The court shall also
17 have exclusive jurisdiction to hear and determine those claims
18 authorized by the act of March 30, 1811 (P.L.145, Ch.XCIX),
19 entitled "An act to amend and consolidate the several acts
20 relating to the settlement of the public accounts and the
21 payment of the public monies, and for other purposes," and
22 continued by Article X, act of April 9, 1929 (P.L.343, No.176),
23 known as "The Fiscal Code," wherein the Auditor General and
24 State Treasurer were granted the power to adjust and settle
25 certain claims against the Commonwealth.
26 Section 5. Section 5 of the act, amended July 19, 1951
27 (P.L.1079, No.234), is amended to read:
28 Section 5. The [board] court shall hold hearings at such
29 place and time as the [board] court shall determine within the
30 Commonwealth of Pennsylvania. When cases are at issue, as is
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1 hereinafter provided, the secretary of the [board] court shall
2 list such cases for hearing at the earliest available date, and
3 shall cause to be served upon the claimants in such cases thirty
4 days written notice, setting forth the time and place of such
5 hearing.
6 Section 6. Section 6 of the act, amended September 29, 1961
7 (P.L.1738, No.705), is amended to read:
8 Section 6. The [board] court shall have no power and
9 exercise no jurisdiction over a claim asserted against the
10 Commonwealth unless the claim shall have been filed within six
11 months after it accrued. The claimants shall advise the
12 department involved, in writing, of such claim, specifying the
13 details thereof, and shall, within the same period, file with
14 the secretary of the [board] court a concise and specific
15 written statement of this claim, signed and verified by the
16 claimant before an officer authorized to administer oaths.
17 The claimant at the time of filing such statement shall file
18 therewith six copies of said statement, and the secretary of the
19 [board] court shall forthwith deliver one copy to the secretary
20 of the department involved and [the others] one copy to the
21 Attorney General.
22 At the time of filing his statement of claim, the claimant
23 shall pay to the State Treasury, through the secretary of the
24 [board] court, the sum of $50.00 as a filing fee. All fees so
25 received shall be credited to the General Fund.
26 Within thirty days after such statement shall be filed with
27 the secretary of the [board] court, and served upon the
28 secretary of the department involved, and the Attorney General,
29 the Commonwealth shall file with the secretary of the [board]
30 court an answer in writing to the averments of the claimant's
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1 statement or other pleading, which shall be signed and verified
2 by the secretary of the department involved, and shall, at the
3 same time, file two copies of the same, one of which shall be
4 served by the secretary on the Attorney General, and the other
5 forwarded to the claimant.
6 When [the answer of the Commonwealth is filed,] the pleadings
7 shall be complete and the case shall be deemed to be at issue,
8 and the secretary of the [board] Court of Claims shall list such
9 case for hearing before the [board] court at the earliest
10 available date, but not earlier than thirty (30) days after the
11 filing of such answer. When, in the opinion of the secretary of <--
12 the court, a decision by the court is unlikely to be made within
13 sixty (60) days from the date of hearing, as provided in section
14 8, the secretary of the court may refer the case, together with
15 all pleadings, to one of the three hearing panels established
16 pursuant to section 1, within its jurisdiction. The hearing
17 panel shall list the case for hearing at the earliest available
18 date after receipt of the case from the secretary of the court.
19 The hearing panel shall be subject to all the requirements of
20 this act as to procedure, hearings and opinions, as the court.
21 The hearing panel shall forward its recommendation or
22 recommendations to the court, within the time established
23 pursuant to section 8.
24 All cases shall, as far as practicable, be listed for hearing
25 in the order of the date of the filing of the respective claims,
26 and the secretary shall cause to be served upon all claimants by
27 registered mail thirty (30) days' written notice, which notice
28 shall set forth the time and place of such hearing.
29 The [board] court shall have power to order the interpleader
30 or impleader of other parties whenever necessary for a complete
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1 determination of any claim or counterclaim.
2 Section 7. Section 7 of the act is amended to read:
3 Section 7. The secretary of the [board] court shall have the
4 power to issue subpoenas at the request of either the
5 Commonwealth or the claimant, and to require the attendance of
6 witnesses and the production of books, documents, and papers
7 pertinent to any cause before the [board] court.
8 All subpoenas so issued shall be in such form as shall be
9 prescribed by the [board] court, and shall be signed by the
10 secretary, or such person as may be designated by the secretary,
11 and may be served by any adult in any part of the Commonwealth.
12 Any person who refuses to obey such subpoena, or who refuses
13 to be sworn to testify, or who fails to produce any papers,
14 books or documents touching upon the case in which he is
15 subpoenaed, or who is guilty of any contempt after summoned to
16 appear, may be punished for contempt of court, and for this
17 purpose an application may be made to the [court of common pleas
18 of Dauphin County, for which purpose such court is hereby given
19 jurisdiction] Commonwealth Court. Each witness so required to
20 attend shall receive for each day's attendance the sum [of two
21 dollars ($2.00),] provided by law for such witnesses, and in
22 addition thereto, [three cents (3¢) for each mile circular
23 travelled by the usual route from his home to the place where
24 his presence is required,] a sum for mileage as provided by law
25 for witnesses which witness fees and expenses shall be divided
26 between the Commonwealth and the claimant in such proportion as
27 the [board] court may direct.
28 Section 8. Section 8 of the act, amended September 29, 1961
29 (P.L.1738, No.705), is amended to read:
30 Section 8. (a) All hearings before the [board] Court of
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1 Claims or hearing panel shall be public. [and] All matters <--
2 before the Court of Claims or hearing panel shall be governed by <--
3 all of the rules of Pennsylvania Civil Procedure not
4 inconsistent with this act. After consideration of the pleadings
5 filed with it and the testimony given at the hearing before it,
6 the [board] Court of Claims or hearing panel, the court shall <--
7 either dismiss the claim of the claimant or make an award in
8 favor of the claimant of such sum as it shall determine the
9 claimant is legally and rightfully entitled to receive, which
10 decision shall be made by the court within a reasonable time
11 from the date of the hearing. If the hearing is before a panel, <--
12 such panel shall make its recommendation or recommendations to
13 the court within thirty (30) days after the hearing, and the
14 court shall enter its said action in a book to be kept by it for
15 that purpose. It shall file a written opinion, setting forth the
16 reasons for its action. The [board] court in dismissing any
17 claim or in making any award shall dispose of all costs of the
18 proceedings by providing for the payment thereof by the
19 Commonwealth or by the claimant, or by providing that such costs
20 shall be shared by the said parties in such proportions as the
21 [board] court in its discretion shall direct.
22 (b) Within thirty (30) days after dismissing the claim or
23 making an award, any party aggrieved thereby, including the
24 Commonwealth, shall have a right of appeal therefrom. Such
25 appeal shall be taken to the [Court of Common Pleas of Dauphin
26 County] Commonwealth Court. Parties interested in such an order
27 including the Commonwealth, jointly, severally or otherwise, may
28 join in an appeal therefrom even though all of the interested
29 parties do not join therein.
30 (c) The [court] Commonwealth Court shall hear the appeal
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1 without a jury on the record certified by the [board] Court of
2 Claims. After hearing, the [court] Commonwealth Court shall
3 affirm the order unless it shall find that the same is not in
4 accordance with law. The findings of the [board] Court of Claims
5 as to the facts, if supported by substantial evidence, shall be
6 conclusive. If the order is not affirmed, the [court]
7 Commonwealth Court may set aside or modify, in whole or in part,
8 or may remand the proceeding to the [board] Court of Claims for
9 further disposition in accordance with the order of the [court]
10 Commonwealth Court.
11 Section 9. Section 9 of the act, amended June 26, 1939
12 (P.L.1081, No.379), is amended to read:
13 Section 9. Within thirty (30) days after any final action is
14 taken by the [board] Court of Claims, the secretary of the
15 [board] court shall certify to the secretary of the department
16 involved, under the seal of the [board] court, a statement of
17 such action including the amount of costs assessed against the
18 Commonwealth or the claimant, or both, and the persons entitled
19 thereto. The amount of any award shall be paid by said
20 department out of any funds appropriated against the contract
21 out of which the claim upon which the award is based was
22 originally charged, to the claimant, and any costs assessed
23 against the Commonwealth shall be paid by said department out of
24 said fund or appropriation to such persons as may be entitled
25 thereto as evidenced by said certificate of the secretary of the
26 [board] court, in the manner now provided by law. In the event
27 that costs are assessed against the claimant, the amount of such
28 costs shall be deducted from whatever balance may be due the
29 claimant upon the contract out of which the claim arose and
30 shall be paid by the department to the persons entitled thereto
19770H0920B3381 - 10 -
1 as evidenced by the said certificate.
2 Section 10. Section 10 of the act is amended to read:
3 Section 10. The [board] court shall establish such rules for
4 its government, and regulations governing practice before it as
5 it shall deem proper and necessary. All papers herein filed
6 shall be matters of public record, and the public, subject to
7 the reasonable requirements of the [board] court, shall at all
8 times have access thereto and shall be permitted to examine the
9 same.
10 Section 11. (a) All personnel, appropriations, agreements,
11 leases, claims, causes of action, equipment, files, records and
12 all other materials which are used, employed or expended in
13 connection with the duties, powers or functions of the Board of
14 Arbitration of Claims of the Department of the Auditor General
15 are hereby transferred to the Court of Claims of the Department
16 of the Auditor General with the same force and effect as if the
17 appropriations had been made to and said items had been the
18 property of the Court of Claims of the Department of the Auditor
19 General in the first instance and if said contracts, agreements,
20 leases and obligations had been incurred or entered into by the
21 Court of Claims of the Department of the Auditor General.
22 (b) All personnel transferred to the Court of Claims of the
23 Department of the Auditor General shall retain any employment
24 status assigned to them in the Board of Arbitration of Claims in
25 the Department of the Auditor General prior to the effective
26 date of this act.
27 Section 12. The Board of Arbitration of Claims of the
28 Department of the Auditor General is abolished and the terms of
29 the members of the board are terminated: Provided, however, That
30 the members of the board shall serve as members of the Court of
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1 Claims until the members of the court are appointed and
2 qualified.
3 Section 13. (a) Articles X and XI, act of April 9, 1929
4 (P.L.343, No.176), known as "The Fiscal Code," are repealed
5 insofar as inconsistent with the provisions of this act.
6 (b) All other acts or parts of acts inconsistent herewith
7 are hereby repealed.
8 Section 14. This act shall take effect immediately.
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