The Commonwealth Court of Pennsylvania just reversed a judgment of the Berks County Court of Common Pleas that had the potential to open up the floodgates to claims by utilities against local agencies based on the alleged negligence of the agency's employees.
The plaintiff, a private utility company, sued the City of Reading after its electrical duct bank collapsed during an excavation project performed by Reading's employees. The plaintiff attributed the duct bank's collapse to Reading's employees failing to backfill the site and install shoring.
Reading argued at trial that it was immune from suit under Pennsylvania's Political Subdivision Tort Claims Act, which generally shields a local agency from civil liability for its employees' acts. After a bench trial, however, the lower court accepted the plaintiff's argument that Reading's actions fell within the Act's utility service facilities exception, which imposes liability for a "dangerous condition of the facilities" owned by the local agency. The court awarded the plaintiff $53,000 in damages opening the door for a flurry of lawsuits against Reading and other municipalities for similar incidents.
In a seven page, reported majority opinion, the Commonwealth Court agreed with Reading's position that the "dangerous condition" originated with the conduct of Reading's employees, as opposed to a pre-existing condition of the facilities. Reading was therefore immune from liability under the Tort Claims Act, leading to the Court's reversal of the judgment.
Fox Rothschild LLP attorneys Peter C. Buckley and Scott Oberlander represented Reading in this matter.
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