Court Opinion

ID: 9752412
Source: CourtListenerOpinion
Date Created: 2023-08-28 18:05:29.29589+00
Date Added: 2024-06-11T09:45:26.633955
License: Public Domain

CAVANAUGH, Judge,
dissenting:
I dissent on the grounds that the trespass action in this case against Mark Pavetti t/d/b/a Scottdale Stop N Shop a/k/a Stop N Shop is barred by the statute of limitations.1 The appellant (the defendant in the court below) properly raised the defense of statute of limitations under new matter in his answer to the appellees’ amended complaint which for the first time named Mark A. Pavetti, trading and doing business as Scottdale Stop N Shop, as a defendant.2
The original complaint was against “Stop N Shop, a corporation.” In paragraph 2 of the complaint the defendant was described as “a corporation having a place of business at 200 South Broadway Street in the Borough of *178Scottdale, Westmoreland County, Pennsylvania.” Paragraph 4 of the original complaint stated “that the said defendant corporation at the time of the matters herein complained of, was acting through its authorized agents, servants, workmen and employees in the furtherance of the business, and in the course of the business of the said defendant corporation and under the direction and control of the said defendant corporation.”
Pa.R.C.P. 2177 provides that “[a]n action shall be prosecuted by or against a corporation or similar entity in its corporate name.” The Rules of Civil Procedure further provide that a “corporation or similar entity” shall include any public, quasi-public or private corporation “or any other association which is regarded as an entity distinct from the members composing the association.”3 There is no doubt that in the original complaint the appellees were interested only in suing a corporation, an entity distinct from its shareholders, and in no way contemplated suit against any individual.
The Majority states (page 883): “The question for our determination is ‘whether the right party was sued but under a wrong designation, or whether a wrong party was sued and the amendment was designed to substitute another and distinct party,’ ” citing Paulish v. Bakaitis, 442 Pa. 434, 440, 275 A.2d 318, 321 (1971), quoting Gozdonovic v. Pleasant *179Hills Realty Co., 357 Pa. 23, 29, 53 A.2d 73, 76 (1947).4 Initially, our inquiry does not appear difficult because obviously the wrong party, a nonexistent corporation, was sued and the amendment was designed to bring in as a defendant a party distinct from Stop N Shop, a corporation. However, if a plaintiff is misled into believing that the person he is suing is a corporation, when this is not the fact, then an amendment may be allowed. The Majority relies on Waugh v. Steelton Taxicab Company, 371 Pa. 436, 89 A.2d 527 (1952), which permitted the amendment of a complaint after the statute of limitations had run where a taxi cab company was sued as a corporation, although it was not. In Waugh the court found that the plaintiff was misled as the taxi cab company used the word “company” in its title. The Waugh case is readily distinguishable from our own as the Supreme Court stated at 371 Pa. at 439, 89 A.2d at 528:
The mistake of the plaintiff in this case was a natural one. The word “company,” when used as part of a name of a business enterprise reasonably suggests a corporation and the public logically assumes, having no notice to the contrary, that it is a corporation .... Our only province is to permit any innocent person who has been deprived of his day in court as a result of such deception to file the necessary amendment which will bring him back into court.
Justice Bell filed a dissenting opinion in which Justice Horace Stern joined. The dissent states:
It is clear that the right party was never sued. A non-existent corporation was sued; the suit against it and any verdict and judgment recovered therein would have been *180worthless and an absolute nullity; a suit void ab initio cannot be amended after the statute of limitations has expired by bringing in a new party, even though the new party was trading under the same name as the original party defendant and might have been originally sued. (371 Pa. 444, 89 A.2d 530-1)
In the instant case the word “company” was not used in the title of Mr. Pavetti’s store so that there was no reason why the appellees would believe a corporation was involved. The Business Corporation Law of May 5, 1933, P.L. 364 as amended, 15 P.S. § 1202 provides that the corporate name “shall contain (1) the word ‘corporation,’ ‘company,’ ‘incorporation,’ or ‘limited’ or an abbreviation thereof ...” Certainly, if one uses the word “company” or “corporation” in his business name, he runs the risk that the public will believe that a corporation is involved. In the instant case if appellees had checked with the Corporation Bureau of the Department of State they would have learned that there was no corporation named “Stop N Shop” registered either as one incorporated in Pennsylvania or in a foreign jurisdiction and authorized to do business in this state. This would have alerted appellees that a corporation was not involved. As a practical matter, appellees could have requested a search by a commercial credit rating firm to determine if Stop N Shop was a corporation.
The Majority states (page 884) “when appellees’ counsel searched the fictitious name register and failed to discover any listing for ‘Stop N Shop’ he logically assumed, having no notice to the contrary, that the business was a corporation and brought suit using that designation.” I cannot agree that one may logically assume that every business not registered under the Fictitious Names Act is a corporation, especially when the name of the business does not contain any word such as “company” or “corporation” to indicate that it is a corporation, as required by the Business Corporation Law, supra. Undoubtedly, many small businesses, and perhaps larger ones, carry on without being either corporations or registered under the Fictitious Name Act of May 24, *1811945, P.L. 967, 54 P.S. § 28.1 et seq. In this case we do not have the situation where Stop N Shop did not register at all under the Fictitious Name Act. The owner of the grocery store registered under the name of Scottdale Stop N Shop and the business was conducted under the name of Stop N Shop. The Act states the failure to register “shall not impair or affect the validity of any contract with such person or persons, and actions or proceedings at law or in equity may be instituted and maintained on any such contract,” (54 P.S. § 28.4) after compliance with the Act and paying a license fee or fine of twenty-five dollars. Appellant registered under the Act, and his failure to use the word “Scottdale” in his business name does not indicate failure to comply. There is in this case no indication whatsoever that the defendant registered his business under the Act in one manner and carried on the business using a slightly different name with the intent to deceive the public.
The case of Nearing v. Zuzek, Jr., 65 D. & C.2d 371 (1974-Warren County) is applicable. In that case the plaintiff was injured when involved in a motor vehicle accident with a truck registered in the name of “Zuzek and Son” and driven by Lloyd Irwin. In the plaintiff’s original complaint, he named as defendants Emil Zuzek, Jr. and Andy Zuzek, Jr., t/d/b/a Zuzek and Son and Lloyd Irwin. After the statute of limitations had expired, plaintiff learned that Emil Zuzek, Jr. had no interest in “Zuzek and Son” and that Emil Zuzek, was the real owner of the truck operated by Irwin and that the truck was operated under the business name of “Zuzek Lumber Company,” which name was not registered under the Fictitious Name Act. Plaintiff contended that because of the failure of Emil Zuzek to file under the Fictitious Name Act he was misled as to the true owner of the truck involved in the accident. The court stated at pages 373—4: “There can be no question that the wrong party was sued in this instance and the only question remaining is whether the failure of Emil Zuzek to register under the Fictitious Name Act was an omission of a duty on his part imposed upon him by the Fictitious Name Act and, *182by a failure to do so, plaintiff has been misled.” The court refused to allow the amendment. At page 374 it was stated:
A review of the annotated cases under this section compels a conclusion that it was the legislature’s intent it apply to individuals carrying on or conducting a business under an assumed name to alert the public with whom they were doing business . . . and registration of a fictitious name is a condition precedent to commencement of any action in any of the courts of this Commonwealth as provided by Section 4 thereof: 54 P.S. § 28.4. Further, it was not the intent of the legislature that the act [be] applied to tort actions: McLaughlin v. J. E. Baker and Co., 5 D. & C. 781 (1924). (Emphasis added).
Finally, the majority opinion states at page 883:
When the original complaint seeks to impose liability against the assets of a business entity, and the amendment is designed merely to correct the description of the business entity already made a party to the proceedings, e. g., an amendment to change the party designation from a corporation to a partnership, the amendment is properly permitted. See e. g., Gozdonovic v. Pleasant Hills Realty Co., supra.
In this case a corporation was sued originally. The original action sought to impose liability against the assets of a corporation. In the amended complaint appellees seek to impose liability not against corporate assets, but against the assets of an individual, Mark A. Pavetti. The majority opinion states that an amendment to change the designation of a defendant from a corporation to a partnership is permitted. This, however, has no bearing on the issue of permitting an individual to be substituted as defendant in place of a corporation after the statute of limitations has expired. Where an individual is sued the complaint may not be amended after the statute of limitations has expired to substitute a corporation even though the individual traded as “The Forty Fort Ice Cream Co.” and the corporation was called “Forty Fort Ice Cream Co., Inc.” See DuBois v. Mosier, 50 Luzerne Leg.Reg.Rep. 171 (1960).
*183The original opinion of the court below properly decided that the complaint against Stop N Shop, a corporation, could not be amended after the statute of limitations had run to bring in an entirely new defendant. In my opinion, the lower court sitting en banc erred when it reversed its original opinion and this Court is likewise in error in affirming the judgment of the court below.

. The statute of limitations in effect at the time this action was brought provided that actions for personal injuries “must be brought within two years from the time when the injury was done and not afterwards.” Act of June 24, 1895, P.L. 236 § 2, 12 P.S. § 34. The present statute of limitations pertaining to trespass actions, effective June 27, 1978, 42 Pa.C.S. § 5524 also requires that an action in trespass be commenced within two years.

. Pa.R.C.P. 1030 states that “[a]ll affirmative defenses, including but not limited to the defenses of . . . [the] statute of limitations, shall be pleaded in a responsive pleading under the heading, ‘New Matter.’ ”

. Pa.R.C.P. 2176 provides:
As used in this chapter
“action” means any civil action or proceeding at law or in equity brought in or appealed to any court which is subject to these rules;
“corporation or similar entity” includes any public, quasi-public or private corporation, insurance association or exchange, registered partnership, partnership association limited, joint stock com- ' pany or association, “Massachusetts Trust,” or any other association which is regarded as an entity distinct from the members composing the association;
“corporate name” means any name, real or fictitious, under which a corporation or similar entity was organized, or conducts business, whether or not such name has been filed or registered;

. In Gozdonovic v. Pleasant Hills Realty Co., supra, the defendant was named as a corporation. Subsequently discovering that the company was not a corporation but a partnership, plaintiff moved to amend and was permitted to do so although the statute of limitations had run. The court stated at 357 Pa. 29, 53 A.2d 76, “It is to be noted that plaintiff did not attempt to bring in as defendants the individual members of the partnership; This clearly would not have been permissible (emphasis added) .... The defendant newly named under the amendment was merely the partnership entity” (emphasis in original).