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PAUL H. IlAUT, JR. and
EI"I ZABETH M. HALLETT /
Plaintiffs
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
OAKWOOD HOM8S,
INC., JUDY A. HENRY,
LANE INVESTMENT
CO., t/d/b/a PEACH TREE
MOBILE HOMES, and
DOUGLAS ZOOK,
Individually and t/d/b/a
PEACH TREE MOBILE
HOME SALES,
CIVIL ACTION - LAW
Defendants NO. 96-3578 CIVIL TERM
IN REI PRETRIAL CONFERENCE
A pretrial conference was held in the chambers of
Judge Oler in the above-captioned case on Wednesday, September 12/
2001. Present on behalf of the Plaintiffs was Dennis J. Shatto,
Esquire, present on behalf of Defendants was Michael D. Hess,
Esquire,
This is an action for breach of contract and assorted
other claims arising out of a purchase of a home by Plaintiffs
from Defendant Oakwood Homes, Inc., and the .,lleged failure of the
seller to honor a warranty and to purchase a certain mobile home
from Plaintiff Paul H. Haut, Jr. / inter alia.
Thls will be a nonjury trial of an estimated duration
of one day. By separate order of court, the nonjury trial has
been scheduled for Thursday, October 4, 2001/ commencing at 9130
a.m. The Cour.t has indicated to counsel, and counsel have
concurred, that each counsel will have two and a half hours for.
his case, including the case in chief, cross-examination, rebuttal
testimony, and argument (if desired).
With respect to settlement negotiations, $1/000.00
has been offered by the Defendants. This offer has not been
accepted by the Plaintiffs. Counsel have lndicated that they think
the chances of the caGe's being settled are not good.
Ehrlich will he ~elldillg U doclor's Iellcr lill' illY lillwunlillg 1111 III Ihc ('oUIl. hUI due 10lhe willieI'
~lonll 011 Frlduy, Murch I. Ihc Iellcr could 1101 hc sClllUlld dclil'crcd wllh Ihis Illolloll. Dr.
Ehrlich's Icllcr will hc uppclldcd 101hi~ MOliullllcXl wcck.
4. llpoll CXUlllillllliollOflhc Iilllitcd 1I111lcriuls l1Iudc ul'uiluhlc III Allol'lley BOWI1lUIl,
MI'. Bowmull cxpresscd II wi Ii I Ill!llCSS III clltcr his UPPCUI'IIIlCC 011 hdllllfofOukwood (illusllluch
us Oukwood I:; 1111 CxiSlillg dicm) hut hc Ilwk lhc lilllowillg SICps,
5. Allorncy Ilowlllllllllolcd Ihllll his schcdulc lhut he wus alrclldy schcdulcd to servc
us u Mcdiulor. Ul the dirccliollof Ihe PCllllsyll'lIl1i11 1I0unlof ('Iaims. 10 Illcdilltc u dispUlc hctwccll
lwo purtles lTnulIhull ('orporutiollulld t\\'ll SUhCOlllnlClors. IInd thc I'cllllsylvulliu Depurtlllclllllf
Tl'l1n~porlulion) currclllly hclilrc Ihc BOllrd. Thc I1Icdiulion hus hccn scheduled froll1 Murch II
Ihrough Murch 15 illllurri~hur!lllt Ihc Ilollrd of( '1IIilll~ coUllroom~ ill thc Fultoll BIUlk Buildillg.
Harrishurg. This schcdulc conl1icllllllkcs tvll'.llownlllll's IIppCIIl'llllCe 011 hchalfofOukwood
impossihle iflhc cusc is to hc Iricd on durillg lhc Mllrch 11 trial wcck ill CUl11bcrlund COUllly.
(I. AlIomcy 130wl1lan saw thai virtuully 110 discovcry malcrials or cxpcrl rcporls 01'
SilC cxul1Iinlltionwcrc uvailuhlc 10 prcscnl a dclcnsc 1111 bchalfofOakwood durillg Ihe Murch lriul
tel111. und Ihut additional discOlwy wl1lIld he ncccssary 10 prcparc.
7. Mr. llowl11anlricd to conlaCI i'laintin"~ coun~cl. Altol'l1cy Ilcnnis ShUllO. 011 curly
Wcdncsday. bul wus unahlc 10 rcach hil1lulllil Thursday allcl'l1o@ hccausc Mr. Shullo wus oulof
Ihc llflicc, und Mr. Bowl11l1n explaincd his schcduling quandary and thc olhcr rcasons I'll' a
conlilHwncc. AlIol'l1cy Shallo candidly cxplaincd Ihalthc casc had hccn scheduled Illr Jallullry
tcrmofcourt, hUI hl\(l hccll continucll ovcr Plllilllilrs objcctions. Mr. Shalto did express a
willingncss 10 pl'llvidc SOIllC discovcry nWlcrials In thc norl1lal profcssional coursc 10 hrillg
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SHERIFF'S OFFICE
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PLEASE TYPE OR PRINT LEGIBLY.
DO NOT DETACH AI'\Y COPIES,
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SHERIFF SERVICE
PROCESS RECEIPT. and AFFIDAVIT OF RETURN
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96-3578
PAUk H HAUT/ JR. ELI~ARRTll M HALLETT
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I. SHEflIFF OF LANCASfEIl COlJN'fV, PA. d" I""olly UOPlJt'lO th~ Shon" 01
COIJl1ty 10 t.:!lWcutlJ 11115 Wtlt lIull 11l1lku rolurn tht!rtJOI AccOHhng
to luw rtllb dopullll1oll lJI1HlU mudo ut t1w rlHllJ06( alllt t'lBk 01 tho plnlnl'lll
"SP'CI~lINSTnU~T10N6 on OTHEn INFOilMATION TH~TWILL ~S516T IN EXPEDITING 6EnVICE
Now,
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HOTE QNl Y APPLICABLE ON WRIT OF EXECUTION: NO, WAIVE" OF WATCH...AN - /I."'1lh!Il'JI~ ill1l!1I11 h'Ij)ol/lll Upl)n or illl/I..hlll'J .1.''1' Il"'lllt/t'r 'JrHhll
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12. SEND NOTII";E or SEAVICF. COPY TO NAME AND ~ODRE5'i BEl-OW (Thlb "... mUll b. compleled II nQlle. II to b. n,.It.dl
DENNIS J SHATTO/ ESQ. 31 N SECOND ST./ POBOX 11847/ HARRISBURG PA 17108-1847
SPACE BELOW FOR USE OF SHERIFF ONLY - DO NOT WRITE BELOW THIS liNE
. .. . NAME ,I i"ill'" , ,; 'lleso [)'-I,'d', ' I (1",1." . .1";7" _"'5"'_"9i,~6'..I'.~.,.,d ' l' P; "-,.".'I..~':J:7'.-II;H~.'.'I'q,!"(p'HHI ."'_'.1"0,
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tJlUlllllllllll1l.ltilrllllt:;lh>IJilIJ<)~I' .1UDY MOHRIS 295 3609
'Ii I !W,.!lly CERTIFY itt1d RETURN Ih,11 I h,I~'! lit , ""Il.llly ",,,,,,"'1 "'11,l'.., I..q,lll..,..,j. n. I' o)! ~:' I," . ,j' ',11,:"''' III fl""',H~ " '1..'0" ""!'_I.ll'oI .1'> "lInYl'II 'II
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SERVE BY' July 27 / 1996 . .. I I ..
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4. Defendant Lane Investment Company ("Lane") is a Pennsyl-
vania corporation which trades and does business as Peach Tree
Mobile Homes (" Peach Tree") and has a registered office address of
1873 Lincoln Highway East / Lancaster / PA 17602. The bus iness
addresf! for Peach Tree Mobile Homes is 336 West King Street,
Lancaster, PA 17603.
5. Defendant Douglas L, Zook ("Zook") is an adult individual
who trades and does business as Peach Tree Mobile Home Sales at the
address of 336 West King Street, Lanr.aster, PA 17603.
6, During the winter or early spring of 1995, Plaintiffs
became interested in purchasing from Defendant Oakwood, a dwelling
then under construction, known as Lot 7, Liberty Woods Development
(10 Liberty Drive) / Borough of Mt, Holly Springs, Cumberland
County, Pennsylvania.
7. At that time, Plaintiffs began negotiations with
Defendant Oakwood for the purchase of said dwelling,
8, As part of the negotiations, Defendant Henry verbally
represented to Plaintiffs that Defendant Oakwood would, as part of
the transaction for the purchase of. 10 Liberty Drive, purchase from
Plaintiff Paul H, Haut, Jr., a 1987 Fleetwood Mobile Home, or,
alternatively, would reduce the purchase prlce of 10 Liberty Drive
by the sum of $7,000.00.
9. Ultimately / the negotiations resul ted in the execution of
an Agreement for the Sale of Real Estate dated April 19, 1995,
between Defendant Oakwood and/or assigns, and Plaintiffs. A copy
- 2 -
of said agreement J.s attached hereto, made a part hereof and
labelled Exhibit "A."
10. In paragraph 5 of the said Agreement, Defendant Oakwood
agreed to purchase the aforesaid mobile home for the sum of
$14/500.
11. The purchase price of 10 Liberty Drive was therefore
stated in the Agreement as $103/500 I and was not reduced by the sum
at: $7,000.
12. On June 30/ 1995/ the parties proceeded to settlement and
Defendant Oakwood was paid the balance due under the Agreement for
10 Liberty Drive,
13. During settlement, Defendant Zook and Plaintiffs entered
into a verbal agreement pursuant to which Defendant Zook agreed to
provide Plaintiffs a credit in the amount of $1,500 as partial
payment toward the mobile home, and agreed that he would pay the
balance of $13/000 within two months after the date of settlement.
14. Also during settlement, Plaintiffs and Defendant Oakwood
entered into an Agreement for the completion of grading and
landscaping work on 10 Liberty Drive, a copy of which Agreement is
attached hereto, made a part hereof and labelled Exhibit "B."
15. Despite demand, Defendant Oakwood failed and refused to
complete the purchase of the said mobile h~me, and thereby
defaul.ted in both the written agreement and the verbal agreement
reached at settlement.
- 3 -
16, By letter dated September 1, 1995/ Plaintiffs gave
Defendant Oakwood notice of said default,
17. On October 1/ 1995/ Defendants Oakwood, Lane and Zook
delivered possession of the said mobile home to Carlos Q, Ramos and
Nola J. Ramos, his wife (collectively "Ramos") and agreed to sell
and lease the said mobile home to Ramos.
18. For some period of time subsequent to October 1/ 1995/
Ramos paid to Defendants Oakwood, Lane and Zook the sum of $100 per
week for the use and occupancy of the said mobile home.
19. On or about November 23/ 1995, Ramos began making said
payments to their attol"ney, Stephen Lipson, to be held in escrow.
20. Plaintiffs ultimately received the total of $500,00 from
the escrow account / which sum represented the balance of the
account, less the sum of $200.00 retained by Mr. Lipson as counsel
fees,
21, On or about May 26, 1996, Ramos vacated the mobile home
and Plaintiff Paul H, Haut, Jr., took possession thereof.
COUNT I - POSSESSION
~l H. Haut, Jr. v. All Defendants
22. The averments of paragraphs 1 through 21 are incorporated
herein by reference,
23. Defendants, despite demand, have failed and refused to
pay any of the balance due under either the written or verbal
agreement for the purchase of the mobile home.
- 4 -
24. By failing to pay the said balance due of $13,000,00/
Defendants have breached the aforesaid agreements / thereby
forfeiting any and all righta they may have otherwiae have had in
the said mobile home, arid entitling Plaintiff Paul H. Haut, Jr" to
poaaession thereof.
25, Defendants have continued to contend that they have
rights in and to the said mobile home.
WHEREFORE, Plaint if f Paul H. Haut, Jr, / requests that the
court grant him the exclusive right to possession of the mobile
home, and order any ownership interest of Defendants, equitable or
otherwise, extinguished.
COUNT II - BREACH OF CONTRACT
Plaintiffs v. Oakwood Homes, Inc.
and Judy A. Henry
26. The averments of paragraphs 1 through 25 are incorporated
herein by reference,
27. By breaching the agreement to purchase the mobile home,
Defendants deprived Plaintiffs of the benefit of their bargain on
the purchase of real estate and are obligated to refund to
Plaintiffs the sum of $7,000.00 as though Plaintiffs had purchased
the real. estate outright,
WHEREFORE, Plaintiffs demand judgment against Defendants in
the amount of $7,000,00/ pl.us interest at the rate of 6 percent per
annum commencing July 1, 1995, and costs of suit.
- 5 -
32. The averments of paragraphs 1 through 31 are incorporated
hereby reference.
33. Prior to execution by Plaintiffs of the Agreement for the
Sale of Reul Estate dated April 19/ 1995/ Defendant Henry verbally
represented to Plaintiffs that there was no problem with the well
water..
34. After settlement / Plaintiffs determined that the well
water was contaminated with, among other things, iron and bacteria,
and was not suitable to drink.
35. The quality of the well water was material to Plaintiffs.
36. Plaintiffs relied, and were justified in relying, upon
Defendant Henry'S aforesaid representation.
37. Defendant Henry knew or should have known that her
representation was false.
38. In order to make the water fit for consumption, Plain-
tiffs installed a treatment system at a cost to them of $1,300,00.
WHEREFORE, Plaintiffs demand judgment against Defendants in
the amount of $1/300.00 plus interest and costs,
- 7 -
qOUNT v - BREACH OF CONTRACT
flAintiffs v. Oakwood Homes. I~
39. The averments of paragraphs 1 through 38 are incorporated
herein by reference,
40, The work described on the Agreement dated June 30/ 1995
(Exhibit "B") was not completed by Oakwood within 120 days, as
required in the said Agreement.
41. Plaintiffs demanded in writing that Defendant Oakwood
remit to them the sum of $500.00, as provided in said Agreement.
42. Defendant has failed and refused to perform any of its
obligations under the said Agreement.
43. The cost to Plaintiffs of having the work described in
the Agreement completed is $2,500.00.
WHEREFORE, Plaintiffs demand judgment in their favor and
against Defendant in the amount of $2,500.00, together with
interest and costs.
COUNT VI - BREACH OF IMPLIED WAR~Y
Plaintiffs v. Oakwood Homes. Inc.
44. The averments of paragraphs 1 through 43 are; ncorporated
herein by reference.
45. As the builder and seller of the dwelling which Plain-
tiffs purchased, Defendant Oakwood impliedly warranted that the
dwelling had been constructed in a reasonably workmanlike manner,
and was habitable.
, 8 -
46. The dwelling was not constructed in a reasonably
workmanlike manner in the particulars described on Exhibit "C"_
hereto, and because of the defective nature of a portion of the
roof. The dwelling was not habitable because Defendant rUd not
supply Plaintiff with potable water.
47. For the l'l~aBOl1 set forth in paragraph 46 hereof /
Defendant Oakwood has breached the aforesaid implied warranty,
48. The coat to Plaintiff in bringing the dwelling into
compliance with the aforesaid impl ied warranty is $21/230,00, which
includes the sum of $1,300.00 incurred by Plaintiffs to install a
water treatment system.
49, The fair market value of the property, as conveyed to
Plaintiffs on June 30. 1995, was $70.000.00.
WHEREFORE, Plaintiffs demand judgment against Defendant
Oakwood in the amount of $21,230.00, together with interest and
costs.
COUNT VI I - CLAIM UNDER UNFAIR
TRADE PRACTICES AND CONSUMER PROTECTION LAW
Plaintiffs v. Oakwood
50. The averments of paragraphs 1 through 49 are incorporated
herein by reference.
51. By failing and refusing to comply with the terms of the
warranty set forth in the Agreement for the Sale of Real Estate
(Exhibit "A"), Defendant Oakwood violated the provisions of the
- 9 -
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EXHIBIT
A
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17~Ol, This corporation does not trade or do business as peach
Tree Mobile Homes.
5. Denied, Defendant Douglas L, Zook is an adult individual
employed by Oakwood Homes, Inc, and Peach Tree Mobile Home Systems,
Inc. However, he does not trade as paach Tree Mobile Home Sales.
Further, his address is c/o Michael D. Hess, 951 Rohrerstown Road,
Suite 102/ Lancaster, PA 17601.
6. Defendants are without sufficient information, knowledge
or belief to admit or deny what the Plaintiffs were interested in
doing,
7. Admitted.
8, Def.endants are without sufficient infonnation, knowledge
or belief to admit or deny the allegations contained herein. To
the extent legally required, the allegations are denied until
proven otherwise.
9. The Agreement fat' the Sale of Real Estate referred to is
a writing that speaks for itself.
10. The Agreement, paragraph 5/ is a writing that speaks for
itself .
11.. The Agreement is a writing that speaks for itself.
12. Admitted, based on information, knowledge and belief.
13 , Denied that such agreement took place.
14, The document is a writing that speaks for itself.
15. This paragraph contains a conclusion of lRW to which no
response is required.
2
17601. This corporation does not trade or do business as Peach
Tree Mobile Homes.
5. Denied, Defendant Douglas L, Zook is an adult individual
employed by Oakwood Homes / Inc, and Peach Tree Mobile Home Systems /
Inc. However, he does not trade as Peach Tree Mobile Home Sales.
Further, his address is c/o Michael D. Hess, 951 Rohrerstown Road,
Suite 102/ Lancaster, PA 17601.
6, Defendants are without sufficient information, knowledge
or belief to admit or deny what the Plaintiffs were interested in
doing,
7. Admitted.
8, Defendants are without sufficient information, knowledge
or belief to admit or deny the allegations contained herein. To
the extent legally requ.ired, the allegations are denied until
proven otherwise.
9, The Agreement for the Sale 0f Real Estate referred to is
a writing that speaks for itself.
10, The Agreement, paragraph 5/ is a writing that speaks for
itself .
11. The Agreement is a writing that speaks for itself.
12. Admitted, based on infor.mation, knowledge and belief,
13, Denied that such agreement took place.
14. The document is a writing that speaks for itself.
15. This paragraph contains a conclusion of law to which no
response is required.
2
16, Denied.
17, Denied as to Defendants Oakwood, Lane and Zook,
18, Donied. Neither Oakwood, Lane, or Zook, have ever
received payments from Carlos or Nola Ramos.
19, Defendants are without information, know 1 edge / or belief
to admit or deny the allegation contained herein.
20. Defendants are without information, knowledge, or belief
to admit or deny the allegation contained herein,
2l. Defendants are lfithout information, knowledge, or belief
to admit or deny the allegation containeu herein,
COUNT I - POSSESS ION
Paul H. Haut. Jr. v. All Defendants
22. The answers to paragraphs 1 through 21 ar.e incorporated
herein by reference.
23. Denied, No obligation existed on behalf of any of the
named Defendants to make any such payments.
24, This paragraph contains a conclusion of law to which no
response is required.
25. Denied as to all named Defendants. To the contrary /
ownership rights are being claimed by Peach Tree Mobile Homes
Systems, Inc,
WHEREFORE, Defendants collectively demand judgment in their
favor and against the Plaintiff.
3
COUNT II - BREACH OF CONTRACT
i1aintiffs v.~ood Homes. Inc.
and Judy A. Henry
26. The answers to paragraphs 1 through 25 are incorporated
herein by reference.
27. Denied as to Defendants Zook, Peach Tree, Lane Investment
company, and Judy Henry, Based on their not being a party the
alleged contract. As to Oakwood Homes / Inc. / it is specifically
denied that any refund is due.
WHEREFORE, Defendants demand judgment in their favor and
against the Plaintiff.
COUNT III - BREACH OF WARRANTY
Plaintiffs v. Oakwood Howes. Inc.
28. The answers to paragraphs 1 through 27 are incorporated
herein by reference,
29, The warranty is a document which speaks for itself, By
way of further answer, Plaintiffs' own allegation contains the fact
that the notice was not given until. after the expiration of the
one-year warranty, and therefore no warranty work was required on
behalf of Defendant Oakwood,
30, Denied that Defendant Oakwood has any obligation to
perform any work as stated.
31. Defendants are without sufficient information, knowledge
or belief to admit or deny the allegation contained herein,
4
32, Oenied, Oefendants are without information, knowledge or
belief to admit or deny the allegation contained herein,
WHBREFORE, the Defendant Oakwood demands judgment in its favor
and against Plaintiffs.
COUNT IV - MISREPRESENTATION
Plaintiffs v. Oakwood Homes. In~.
and Judy A. Henry
32, The answers to paragraphs 1 through 32 are incorporated
herein by reference.
33, Denied. No such representation was made,
34, Defendants are without sufficient information, knowledge
or belief to admit or deny the allegations contained herein,
35. Defendants are without sufficient information, knowledge
or belief to admit or deny the allegations contained herein,
36, This paragraph contains a conclusion of law to which no
response is required.
37. This paragraph contains a conclusion of law to which no
response is required,
38. Defendants are without sufficient information, knowledge
or belief to admit or deny the allegations contained herein.
WHEREFORE, Defendants demand judgment in their favor and
against Plaintiffs.
5
COUNT V - BREACH OF CONTRACT
Plaintiffs v. Oakwood Homes. Inc.
39. The answers to paragraphs 1 through 38 are incorporated
herein by reference.
40. Denied, All work contracted f.or and required under the
Agreement was completed.
41. Denied, Further/no such copy of this writing hall bElen
attached to the Complaint.
42. Dsnied. Defendant has performed all its obligations
under all existing contracts and/or agreements.
43, Defendant is without sufficient information, knowledge or
belief to admit or deny the allegations contained herein,
WHEREFORE, Defendant Oakwood Homes, Inc. demands judgment: in
its favor and against the Plaintiffs.
COUNT VI - BREACH OF IMPLIED WARRANT
Plaintiffs v. Oakwood Homes. Inc.
44. The answers to par.agraphs 1 through 43 are incorporated
herein by reference,
45. This paragraph contains a conclusion of law to which no
response is required.
46. Denied. The dwelling was constructed in a workmanlike
mal\ner.
47, This paragraph contains a conclusion of law to which no
response is required,
6
48, Denied, No work was required to bring the property up to
compliance with the warranty stated.
49. Denied as irrelevant.
WHEREFORE, Defendants demand judgment in its favor and against
the Plaintiffs.
QQllN1. VII - CLAIM UNDER UNFAIR
TRADE PRACTICES AND CONSUMER PROTECTION LAW
Elaintiffs v. Oakwood
50. The answers to paragraphs 1 through 43 are incorporated
herein by reference,
51. This paragraph contains a conclusion of law to which no
response is required,
52. This paragraph contains a conclusion of law to which no
response is required,
WHEREFORE, Defendants demand judgment in its favor and against
the Plaintiffs,
COUNT VIII - CLAIM UNDER UNFAIR
TRADE PRACTICE~ CONSUMER PROTECTION LAW
Plaintiffs v. Oakwood Homes. Inc.
and Judy A. Henry
53, The answers to paragraphs 1 through 52 are incorporated
herein by reference.
54. This paragraph contains a conclusion of law to which no
response is required.
55. This paragraph contains a conclusion of law to which no
response is required.
7
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A copy of the aforesaid letter and the Notices of Deposition are
attach~d to and labeled as Exhibit #1 to statement on the record
dated July 18, 2000, a copy of which is attached hereto and made a
part hereof by reference.
5. During the lat.e afternoon of June 6, 2000, counsel for
Defendants faxed a letter' to counsel for Plaintiffll, indicating
that Defendant Zook would not be available for deposition on
June ", 2000. During a telephone conver5ation with Plaintiffs'
counsel after receipt of said fax, counsel for Def.endants indicated
that he had no reason to believe that Defendant Henr.y would be
appearing and that her whereabouts were unknown.
6. During the same conversation on June 6/ 2000, counsel for
Defendants indicated that he would be in touch with the undersigned
counsel for Plaintiffs by the end of that week to provide alternate
dates for Defendant Zook's deposition. Alternate dates were not
provided by the end of that week, and by letter dated June 21,
2000, counsel for Plaintiffs requested that alternate dates f~r the
depositions of Defendants Zook and Henry be provided not later than
June 30, 2000. A copy of the said letter is attached to the
statement on the record as Exhibit #2.
7. The undersigned counsel for Plaintif.fs did not receive
contact from Defendants' counsel by 5:00 p.m. on June 30, 2000" and
thereupon issued to Defendants' counsel a letter dated June 30,
2
2000, enclosing Notices of Deposition for Mr. Zook and Ms. Henry
for July 18,2000, at 9:30 a.m, A copy of the said letter and
Notices are attached to the statement on the record as Exhibit "3.
8. On July 18, 2000, counsel for Plaintiffs convened the
depositions of Defendants Zook and Henry, as scheduled in the
aforesaid Notices. Neither Defendants Zook and Henry, nor counsel
for Defendants appeared at the depositions.
9. At approximately 9:45 a,m., Jenny Tobias, secretary for
Plaintiffs' counsel, placed a call to the office of counsel for
Defen.:iants, and was advised that Mr, Hess was on his way to
Gettysburg and apparently unaware of the depositions.
10. Counsel for Plaintiffs then made a statement on the
record, a copy of which is attached hereto.
11. In view of the hlstory, as recited herein and in the
statement on the record, the undersigned counsel for Plaintiffs
does not believe that any of the Defendants will voluntarily appear
for a deposition.
12. Plalntiffs respectfUlly request that the Court issue an
order imposing the following sanctions:
A. That Defendants Zook and Henry be precluded from
testifying at any proceeding, either on their own behalf or on
behalf of any other Defendant, and precluded from Offering any
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IN THE COURT OF COMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
Civil Aotion - Law
No. 96-3578 civil Term
- - - -. - - - - -., - - - - - - - -. - - - - - - - - --x
PAUL H. HAUT, JR., and 1
ELIZABE/rH M. HALLETT, I
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Plaintiffs,
. vs -
OAKWOOD HOMES, INC., JUDY A.
HENRY, LANE INVESTMENT CO.,
t/d/b/a/ PEACH TREE MOBILE
HOMES, and DOUGLAS L. ZOOK,
individually and t/d/b/a/
PEACH TREE MOBILE HOME SALES,
Defendants.
- .. ., .. .. .. .. .. .. ... .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. ... ... ... ... x
1
STATEMENT ON THE RECORD
111 Looust Street
Harrisburg, PA
July 18, 2000
9158 a.m.
IT IS HEREBY STIPULATED and agreed that
the sealing of the within transoript is waived,
IT IS FURTHER STIPULATED and agreed that
all objeotions exoept as to the form of the
question are reserved to the time of trial.
LEARY REPORTING
112 West Main Street, Ste.
Meohaniosburg, Pennsylvania
(717) 233-2660
200
17055
Fax (717) 691-7768
2
1
APPIllARANCl!lSI
\...... 2
3 Ct.l!lCKNIllR &. FIllARI!lN
111 t.ooust Street
4 P.O. Box 1847
Harrisburg, PA 17101
5 (717 ) 238-1731
BYI DIllNNIS J. SHATTO, IllSQ.
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PROCEEDINGS
MR. SHATTOc This is Dennis Shatto.
I am counsel for the plaintiffs in this
case, Haut and Hallett versus Oakwood
Homes, Inc., et al. in Cumberland County,
No. 96-3576. This is the time and place
noticed for depositions for two of the
party defendants, namely, Douglas L.
Zook and Judy A. Henry.
These depositions had been scheduled
for 9c30 a.m. today, which is July 18,
2000. It is now 9158 a.m., and neither
Mr. Miohael D. Hess, who is counsel of
record for Mr. Zook a.nd Ms. Henry, has
appeared, nor have either of the parties
appeared.
My secr.etary, Jenny '1'obias, placed a
phone call to Mr. Hess' offioe at
approximately 9c45 a.m. this date and
advised me that she was told that Mr. Hess
was on his way to Gettysburg and
apparently was unaware of the depositions.
Some baokground of the discovery
problems is appropriate. Because of some
difficulty in coordinating these
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Ms. Henry would not be appearing, that she
is no longer employed by Mr. Zook, and her
whereabouts were unknown.
I indioated to Mr. Hess that I
believed he is counsel of reoord for Ms.
Henry and ~hat it is essential that I take
her deposition.
I did not hear from Mr.
Hess by the end of that week, nor did I
hear from him through June 21, 2000, when
I sent him a letter dated June 21, 2000, a
oopy of whioh is attached to the
transcript of this proceeding as Exhibit
2.
(Exhibit 2, Letter, 6/21/00, marked
for Identification.)
MR. SHATTOI
On the second page of
that letter, I indicated that I would need
to be contacted by Mr. Hess not later than
June 30 with dates when these parties
would be available for depositions and
that the depositions would need to be held
during July 2000.
I also indioated that if I did not
hear from him or did not have resolution
of these issues by June 30, that I would
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file an appropri~te motion with the Court.
I did not hear from Mr. Hess by June
30, but upon further refleotion, I decided
not to file a motion with the Court, but
to issue another Notioe of Depositions.
By my letter of JunO! 30, 2000, to
Mr. Hess, I enolooed Notioe of
Depositions for Judy Henry and Douglas
Zook, whereby, the depos i tions were
soheduled for July 18, 2000.
A oopy of my
letter dated June 30, 20UO, and the
notioes to Zook and Henry are attaohed to
the transoript marked as Exhibit 3.
(Exhibit 3, Letter dated 6/30/00 and
Notioes, marked for Identification.)
MR. SHA'rTOI
The address I used for
Mr. Hess has oonsistently been the same
and is reflected, of course, on the
letters.
In no cass has any
oorrespondencs issued from this office and
addressed to Mr. Hess been returned
undelivered.
I should note, also for the reoord,
that the only communioation I received
from Mr. Hess between May 12, 2000, and
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the original scheduled date of June 7,
2000, Was his tax ot June 6, mentioned
betore.
I have reoeived absolutely no
oommunioation from him sinoe June 6, :1000.
(Statement concluded 10108 a.m.)
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CLECKNER AND FEAREN
ArrORNEYS AT LAW
111 LOCUST STIlEn
1',0, BOX 11B47
HARRISBURG, PENNSYLVANIA 1710B.1847
TELEPIIONE,17,.,1230.1731
FAX, 17171 230,0401
OF COUNSH
ROHERT D. HANSON
RITIRqD
RICHARD W, CLICKNER
WILLIAM FIAREN
DENNIS J, SHATTO
ANN E, RHOADS
June 30, 2000
Michael D. Hess, Esquire
BURKE & HESS
951 Rohrerstown Road, SUite 102
Lancaster, PA 17601-1974
RSI HBUt v, Zook
Dear Mr. Hessl
\.~. ,...
I did not hear from you by 5100 p,m. today, and therefore, I
am enclosing Notices of Deposition for Mr. Zook and Ms. Henry. I
am not Willing to reschedule these depositions. If the deponents
do not appear, as scheduled, Oil July 18, 2000, I will convene the
proceedings, make an appropriate record, and file a moticn to
compel and tor sanctions.
Thank you for your attention in this matter.
Very truly yours,
C"Z&1t;ttt/
Dennls J. Shatto
DJS/lnm
Enclosure
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EXHIBIT HoL
G. Leer
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P1\UL H. HAU'!', JR.
and ELIZABETH M.
HALLETT,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiffs
v.
CIVIL ACTION - LAW
OAKWOOD HOMES, INC"
JUDY A, HENRY, LANE
INVUSTMENT CO., t/d/b/a
PEACH TREE MOBILE HOMES,
and DOUGLAS L. ZOOK,
individually and t/d/b/a
PEACH TREE MOBILE HOME
SALES,
Defendants
NO. 96-3578 CIVIL TERM
ORDER OF COURT
AND NOW, this 18th day of October, 2000, upon
consideration of Plaintiffs' Motion for Sanctions, and following
a discovery conference held in the chambers of the undersigned
judge in which Plaintiffs were represented by Dennis J. Shatto,
Esquire, and Defendants were r.epresented by Keith DeArmond,
Esquire, standing in for Michael D. Hess, Esquire, it is ordered
and directed as follows:
1. Upon representation of Plaintiffs' counsel
that he has incurred stenographic fees in the amount of $72.55
in connection with the subject matter of Plaintiffs' motion and
legal fees well in excess of $250.00, as indicated in
Plaintiffs' motion, Defendants Judy 1\. Henry and Douglas L.
Zook, jointly and severally, shall pay to Plaintiffs' counsel
within thirty days of today's date the sum of $72.55 for
stenographic fees and the sum of $250.00 for attorney's fees.
2. Defendants Judy A. Henry and Douglas L. Zook
shall appear for a deposition at the office of Plaintiffs'
counsel at 111 Locust Street, Harrisburg, Pennsylvania, at 9:30
a.m., on one of the following dates, to be agreed upon by
counsel for the p,)rties within tllt'ee days of today's date:
_till ........ . ~
PAUL H. HAUT, JR.,
and ELIZABE'rH M.
HALLETT,
Plaintiffs
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
OAKWOOD HOMES, INC"
JUDY A. HENRY, LANE
INVESTMENT CO., t/d/b/a
PEACH TREE MOBILE HOMES,
and DOUGLAS L. ZOOK,
individually and t/d/b/a
PEACH TREE MOBILE HOME
SALES,
Defendants
96-3578 CIVIL TERM
ORDER OF COURT
AND NOW, this 19th day of April, 2001, upon
consideration of Plaintiff's Motion for Sanctions, and
following a proceeding in court at which the Defendants
were represented by Michael D. Hess, Esquire, and the
Plaintiffs were represented by Dennis J. Shatto, Esquire,
it is ordered and directed as follows:
1. Based upon the failure of Defendant Judy
A. Henry to comply with the prior Order of Court,
Plaintiffs' request for entry of judgment against her is
granted, limited to the issue of liability, and judgment is
hereby entered in favor of Plaintiffs Paul H. Haut, Jr.,
and Elizabeth M. Hallett against Defendant Judy A. Henry on
the issue of liability only.
2. Plaintiffs' request for counsel fees is
granted as to Defendants Judy A. Henry and Douglas L. Zook
..
PAUL II, IIAUT. JR,.
und EI.IZABETII M,
IIAI.IErr.
Plulntlffs
IN TIlE COlJln OF COMMON PI.I':AS OF
CUMBERLAND COUNTY. PENNSYLVANIA
v.
CIVIL ACTlON- LAW
OAK WOOl) IIOMES.
INC.. JUDY A, IIENRY.
LANE INVESTMENT
CO.. Ud/b/lI PEAClI TREE:
MOBILE IIOMES, and
nOU<il,AS 1.. I.OOK.
individuully und l/d/b/u
PEACII TREI~ MOBlI.I~
IIOME SALES.
Defcndunts
NO. 96-3578 CIVIL TERM
ORDER OF COURT
AND NOW. this 1'1 duy of October. 20t)J, upon considerution of the ultuched
lettcr from Dcnnis J. ShUllO. Esq.. ullorncy fill' Pluintiffs. und with no objcction frol11
Michuclllcss. Esq.. ultorncy tIll' Dcrcndants. lhc nonjury trial prcvlously schcdulcd (Ill'
Octobcr 4. 2001. Is rcschcduled to Monday. Junuary 7. 2002. a19:30 lI,l11.. in Courtroom
No. I. Cumberlund County Courthouse. ClIrlisk. Pcnnsylvllnill.
BY TilE COURT.
"i
Dcnnis J. Shutto. Esq.
III Locust Strect
P.O. Box 11847
Ilurrisburg, PA 17108-11\47
Attorney (Ill' Pluinti ffs
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-l1J-~2-k' /
J. ~esley Oler. I' . J,
Lo'!;;,
,.
PAUL H. HAUT, JR, and
ELIZABETH M. HALLETT,
Plaintiffs
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. 96-3578 CIVIL
OAKWOOD HOMES, INC., JUDY A.
HENRY, LANE INVESTMENT CO.,
t/d/b/a PEACH TREE MOBILE
HOMES, alld DOUGLAS L. ZOOK,
individually and t/d/b/a
PEACH TREE MOBILE HOME SALES,
Defendallts
MOTION POR SANCTIONS
AND NOW, come the Plaintiffs, by and through their attorneys,
CLECKNER AND FEAR EN , and in support of the within Motion, aver as
follows I
1. Movants are Paul H. Haut, Jr, and Elizabeth M. Hallett,
Plaintiffs in the within actioll.
2. RespOlldents are Oakwood Homes, Inc., Judy A. Henry, Lane
Investment Co., t/d/b/a Peach Tree Mobile Homes, and Douglas L.
Zook, individually and tldlbla Peach Tree Mobile Home Sales,
Defendants in the within action.
3, At his deposition on November 9,2000, Defendant Douglas L,
Zook testified that at all pertinent times he was sole shareholder
and officer of Oakwood Homes, Inc., and Lane Investment Co.
4. At all times pertinent to the complaint, Defendant Judy A.
Henry was employed by Oakwood Homes, Inc., had the desigllation of
"Sales Manager", and had apparent authority to act for and on
behalf of Defendant Oakwood Homes, Inc.
5, Counsel of record for all defendants is Michael D, Hess,
Esquire, Burke & Hess, Lancaster, Pennsylvania.
6. On or about September 11, 2000, Plaintifff) filed a Motion
for Sanctions.
7. At the conclusioll of a discovery conference on the said
Moti.on for Sanctiolls. held October la, 2000, in the chambers of The
Honorable J. Wesley Oler, Judge Oler prepared all Order of Court,
requiring Defendallts Judy A. Henry and Douglas L. Zook, jointly and
severally, to pay to Plaintiffs' counsel within thirty (30) days
the sum of $72.55 for stenographic fees, and $250.00 for attorney's
fees, and requiring said Judy A. Henry and Douglas L. Zook to
appear for a deposition Oil a date to be agreed upon, and if no
agreement could be reached, on November 9, 2000. A copy of the
said Order of Court is attached hereto, made a part hereof, and
labeled Exhibit "A",
8, Since counsel for the parties did not reach an agreement
on a date for, the depositions, the aforesaid Order required the
said Defendants to appear on November 9, 2000. By letter dated
November 1, 2000, a copy of which is attached hereto, made a part
hereof, and labeled Exhibit "B", counsel for the Plaintiffs
confirmed with counsel for the Defendants that the depositi.ons of
Judy A. Henry and Douglas L. Zook would be held on November 9.
2000.
9. On November 9, 2000, Douglas L. Zook appeared with his
attorney, Michael D. Hess, and submitted to a deposition, as
required by the aforesaid Order of Court. However, Defendant Judy
A. Henry did not appear for her deposition.
10, Counsel for Plaintiff received no prior notice that Judy
A, Henry would not be appearing for her deposition as required by
the aforesaid Order of Court.
?
11. As of the date of signing this Mot ion, coullllel for
plaintiffs has not received from Douglas L. Zook or Judy A. Hellry
payment for stenographic fees and legal fees, as required in
Paragraph 1 of the aforesaid Order of Court.
12. Plaintiffs respectfully request that Your Honorable Court
issue an order imposing the following sanctiollSt
A. 'I'hat a default judgment be entered in favor of
Plaintiffs and against all defendants.
B. That judgment also be entered ill favor of plaintiffs
and againllt all Defendants in an amount represellting
reasonable attorney's fees for the undersigned counsel's time
in preparing and pursuing this Motion for Sanctions.
C. That the Court issue such other or additional relief
as is just and proper under the circumstances.
WHEREFORE, Plaintiffs respectfully request that Your Honorable
Court enter an order granting the relief requested in paragraph 12
hereof.
Respectfully submitted,
CLECKNER AND FEAREN
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By
en s J. Shatto,
Attorney I,D. No.
111 Locust Street
P. O. Box 11847
Harrisburg, PA 1710a-1847
(717) 238-1731
Attorney for plaintiffs
3
, ,
PAUL H. HAUT, JR.
and ELIZABETH M.
HALLETT,
IN THE CQURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiffs
v.
CIVIL ACTION - LAW
OAKWOOD HOMES, INC.,
JUDY A. HENRY, LANE
INVESTMENT CO., t/d/b/a
PEACH TREE MOBILE HOMES,
and DOUGLAS L. ZOOK,
individually and t/d/b/a
PEACH TREE MOBILE HOME
SALES,
Defendants
NO. 96-3578 CIVIL TERM
ORDER OF COURT
AND NOW, this l.8th day of October, 2000, upon
conaideration of Plaintiffs' Motion for Sanctions, and following
a discovery conference held in the chambers of the undersigned
judge in which Plaintiffs were represented by Dennis J. Shatto,
Esquire, and Defendants were represented by Keith DeArmond,
Esquire, standing in for Michael D. Hess, Esquire, it is ordered
and directed as follows,
1. Upon r~presentation of Plaintiffs' counsel
that he has incurred stenographic fees in the amount of $72.55
in connection with the subject matter of Plaintiffs' motion and
legal fees well in excess or $250.00, as indicated in
Plaintiffs' motion, Defendants Judy A. Henry and Douglas L.
Zook, jointly and severally, shall pay to Plaintiffs' counsel
within thirty days of today's date the sum of $12.55 for
stenographic fees and the BUm of $250.00 for attorney's fees.
2. Defendants Judy A. Henry and Douglas L. Zook
shall appear for a deposition at the office of Plaintiffs'
counsel at 111 Locust Street, Harrisburg, Pennsylvania, at 9:30
a.m., on one of the followil8 dates, to be agreed upon by
counsel for the partiel1 within tht'ee days of taday's date:
EXII I BI1'
Tuesday, November 7, 2000, Wednesday, NovElmber 6, 2CiOO,
Thursday, November 9, 2000, or Thursday, November 16, 2000. In
the event that counsel are unable to roach an agreement on the
date within the aforesaid three days, the said Defendallts shall
appeal' for a deposition at the aforesaid office at the aforesaid
time on Thursday, November 9, 2000.
By 'the Court,
Dennis J. Shatto, Esquire
~Cleckner and Fearen
111 Locust Street
P.O. Box 11847
Harrisburg, PA 17108-1847
Attorney for Plaintiffs
Keith DeArmond, Esquire
2800 Market Street
Camp Hill, PA 17011
Michael D. Hess, Esquire
Burke lie Hess
951 Rohrerstown Road
Suite 102
Lancaster, PA 17601-1974
Attorney for Defendants
srs
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Plaintiffs claims of being owed $7,000.00 are without merit in
that Plaintiffs reali~ed the equity in the mobile home for
themselves.
Defendant Oakwood went to the constructed homo with an
inspector from FHA and went through the "punch list" item by item.
Every itom had been resolved and corrected to the satisfaction of
FHA.
nefelldants believe they have no liability on the claims in
Plaintiffs complaint.
II. STATEMENT OF FACTS AS TO DAMAGES
Defendants believe that Plaintiff's claims for damages are
overstated and without merit.
III. STATEMENT AS TO ISSUES OF LIABILITY AND DAMAGES
A. Can the Plaintiffs recover money from the trailer sale
when they have already realized the profit from failing to sell the
trailer to Defendants and keeping the profit for themselves.
thereby "double-dipping"?
B. Did Defendant Oakwood Homes satisfactorily complete all
warranty issues by obtaining the approval of FHA on the completed
items?
IV. SUMMARY OF LEGAL ISSUES REGARDING EVIDENCE
Defendants do not anticipate any eVidentiary issues but retain
the right to object or raise eVidentiary issues after hearing the
Plaintiffs evidence.
In June of 1995, the parties proceeded to settlement, however
Oakwood was not in a position to complete the purchase of the
mobile home, During settlement, Defendant Zook alld the Plaintiffs
entered illto a verbal agreement under which Defendant Zook agL"eed
to complete payments toward the mobile home withill two months,
Also during settlement, Defendant Oakwood alld Plailltiffs entered a
written agreement regarding the completion of certain grading and
landscaping work on 10 Liberty Drive.
The Defendants defalllted in the agreement to acquire the
mobile home, and have never refunded Plaintiffs the sum of
$7,000.00, which should have been credited against the purchase
price since Defelldallt Oakwood did not purchase the mobile home.
Moreover, Defendant Oakwood never completed the grading and
landscaping work,
The agreement of sale contained a one-year builders I warranty.
Despite notice, Defendant Oakwood failed to correct various
deficiencies. The existed cost of repair is $19,930.00.
Prior to executioll of the agreement, Defendant Henry
represented to Plaintiffs t.hat there was no problem with the well
water. However, the well water was contaminated, and Plaintiffs
expended the sum of $1,300.00 for a treatment system.
By Order dated April 19, 2001, Your Honorable Court entered a
default judgment against Judy Henry on liability.
2
II . STATEMEN'r OF FACTS AS TO DAMAG,S
Plaintiffs sElek the sum of $7,000,00 in COUllt II at the
Complaillt, alld the sum of $19,930.00 ill COUllt III. They also seek
reimbursement of the cont of a wateL' treatment system ill the amount
of $1,300.00, plus treble damages. III Coullt V, Plailltiffs request
a sum of $2,500,00, the estimated cost completillg the grading and
landscaping work.
Plailltiffs also seek treble damages for breach of the one-year
warranty for cOllstructioll deficiencies in the amoullt of $59,790.00,
III. STATEMENT AS TO PRINCIPAL ISSUES OF LIABILITY AND
DAMAGES
A. Did Defendal1ts breach their ilgreement to purchase the
mobile home, thereby entItling Plaintiffs to damages in
the amoullt of $7,000.00, as the agreed upon reduction ill
purchase price of the dwellillg?
B. Did Defendants breach the one-year warranty for
correction of defects in construction?
C. Did Defendants misrepresent the quality of the well
water, thereby entitling Plaintiffs to damages equivalent
to the cost of an appropriate treatment system?
D. Did Defendants breach their agreement to complete grading
and lalldscaping work, thereby elltitling Plaintiffs to
damages ill the amount of the estimated cost of
completion?
3
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CU'\"~I:.I:I'" ,L, 'f',iUN1Y
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4, Ou Tucsduy, Fchl'UIIl'Y 2h. 2002, Ollkll'oo<lHlllllCS, luc.. l.lIuc Invcstl11cnl Co,
IId/h/u Pcuch Trcc Mohilc HlllllCS, uudllougllls I.. Zook, individulllly IInd I/d/h/u Pcuch Trcc
Mohile HOl11e SlIlcs Ildviscdlhc undersigncd 1I110rncys. thlltllclcudllnts II'crc disnlissing
Allol1ley Hcss Ihlllllhc cusc, IInd uskcdthc uudcrsigucdto tllke over the CIISC,
5, This houoruhle I'ourt hus schcduled triul in this muller Illr Juue 12 lIudl3. 2002.
(I, lu Couutlll ofthcir Compllliut.l'llIiutilTs liver Ihut DclcndllutslililcdlO propcrly
complelc consll'llction oflhe hllllle lIud Iililcd to remedy delidcncy Items rcluting 10 Ihe
conslruclion ofthc home,
7. Spcdl1cully, Plllilllifli;' uilcge thlltthe delicicnl und incolllplcte work includc, but
is not limitcd 10, impropcrly hung doors. nuils popping Ihrough wulls, 11'111 Is cruckiug in COl11crs
of rooms, Ihe drivcwllY IInd sidcwalks crncking. uud tlHllu Supcrior Concrcte l'ounliulion lI'ull
dcvelopcdu cruck,
8, Siuce Fchruury 2cI. 2002. hoth PlaintiflS' counscluud Dclcudullls' coullsel huvc
cnguged in umicuble inl'ol111ul discovcry,
.. Motion for Leuve ulld 10 C<lI11nclu She Visit 10 '"snecl the 1','cllIlsel!.
9. The uwnllcllts of pal'ugrnphs 1 through 8 arc incorporatcd by refcreuce.
10, Dclcndllnls' hy and through thcir undcrsigncd counscl have allel11ptcd 10 schcdule
II time. which is mUluully couvcuicnt Ii)!' plailllilTs aud dclcudanls, to couducl a sitc visit und
vicw of the propcrty,
II, Plainliffs' couusel indicalcd his willingucss to coopcrate aud providcd dules thut
wcre convcnicnt.
12. Howcvcr, PluiutilTs' cOllllsl:l has inllll'lllcd thc uudcrsigncd counsellhul Pluiuliffs
Hll:44322v14110,01
2
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DcnniN J. Shulto, Esq.
III LOcuNt Strcet
P.O. Box 11847
Hurrisburg, I' A 17108.1847
Altol'l1cy lhr Plnlnllllli
Anthony S. Pllllcr, Esq.
114 Norlh Sccond Strcel
Hnrrisburg, I' A 17101
Altorncys Ilu'Delcnt!nnls
Onkwood HOlllcs. Inc..
Lnnc Invcslmclll Co.. tid/b/u
Pcuch Trcc Mohilc Homcs,
Doughts L Zook. individuully und
till/h/n Pench Trec Mobile Ifolllc
Snles
Michnel D, Hcss, Esq.
951 Rohrcrslown Rond
Lnncnslcr. P A 17601
Allorncy fhr Dctcndullt
Judy A, Hcnry
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