HomeMy WebLinkAbout96-04713
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), Bn~tiAIl Home~, through it~ eight (8) branche~, ha.
conllltruClt.,d hundreds of homl!l/.l ~inCle it~ formation in 199), and
opeJ:'a~u in PeJ,aWlll.'e, Vil.'ginia, Weat Virginia and Ohio, in addition
to Penn~ylvallia, (Te~timony of Mr, aa~tian),
", Pefelldantll, l<ul.'t and Il1gl/lborg schuet~ (hereinafter
"Schuet~~s. 01.' "Mr, Bchuet~.), are adult individual~ with a primal.'Y
res idence in the Fedlll.'al Republic of Germany, (Compla int ';1). MI.'.
Schuetz ill a ret ired bu~il1e~al1lan with elltenllive building and
construction knowledge und ellpel.'ience acquired thl.'ough the
ownel.'ship and renovation of numerous propel.'tielS throughout Oel.'mllllY,
(Testimony of Mr, Schuetz).
5. On or about August 4, 1996, Bastillll Homes and the
SChUEltUlS b!!gl\n negotiaUonlll for the oOllstl.'uction of a hom!!.
(Tellltimony of Mr, Bastian, Mr.. Botts and Mr, Schuetz). Mr. Bottlll
was involved in the negotiatiollS in his capacity as Construction
ManageI.' and Mr, Bowman was involved as the Sales Managel.' for
Bastiall Homes, (Testimony of MI.', Botts).
6. During the meeting on August 4 I 1996, Baetian Honle.
and the Schuetzes established an appl.'ollimatt! construotion time plan
for the construction of a Georgetown Plan B Custom Home and made
numel.'ous and specific written changes to tht! plans for the home
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befQ)."Q thll Conllt )."Uct hm ^grument WlliII lJignlltd, ('I'ut imony of MI:,
llottlll Ilnd Mr, Schuette I Plaintiff' II Ii:Khibit 1, Tabs" and 6),
7, On ^ugUlIt II, 1995, the Conlltruction ^greement for
the conlltruction of tho home wall llignod by both partielll, along with
an ^dditional Work NonroBponllibil1ty Supplemental Agreement
(heroinaftltr "Supplomontal Agrooment") , contract price shoet, patio
door literature, and Spec if icat ion shoet, (Tellt imony of Mr, llotts
and Mr, Schuette I Plaintiff'B Exhibit 1, 'l'abs 1, ;2, 6), The parties
alao added and /lubt racted varioull itemll and oosts on a separate
/:Iheet to arrive Ilt the initial cost of tho home, O?laintHf's
Exhibit 1, Tab 3),
8, Pursuant to the conlltrUlJt iOIl Aguemlltnt I the price of
the home WaG $16$,365.00, ('l'IItstimony of Mr, Bottllll P.laintiff's
Exhibit 1, Tab 1), The Supplemllntal Agrument I covering extorior
site work, provided for an initial price of $23,200,00, (Te/ltimony
of Mr, Bottll' Plaintiff's Exhibit 1, Tap 2), InclUding the changes
made to the original Georgetown Plan B Custom Home Plans, the
contract price for the home, all of August 8, 1996, W81l1 $181,665.00,
(Te/:ltimoIlY of Mr. Bottsl Plaintiff's Exhibit 1, Tab 2).
9. The Schuotltos Wero to pay for the home in cash alld
without the use of a bank, mortgage or otho)." third party.
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I"e/ltimony of JIll.', Rotte/ P1Aintiff'lI l1:xhl.blt 1, 'rab 1), 'rhe
COlllltruation I\greemunt provided for 11 draw llIahedul. of paymllllte at
varioulll IItagee of aonetruotion, ,,'elltiInOIlY of JIll.', Rutilln/
Plaintiff'. mxhibit 1, Tab 11,
10, The honlll wall to be oonllt ruoted Oil thll SahuetlEllI' lot
on Hedge Row ~ane, South Middletown TOWllllhip, cumberland County,
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Pellllllylvania. ITutimony of Mr. Batte and Mr. SahUetll1 Plaintiff's
Exhibit 1, Tab 1/ Defendant'lI Exhib~t 1),
11. ^ copy of the planll for the cOlllltruatioll of the home
Were llIubmitted to South Middletown Townehip for review and
/'\pprovlll. Another version of the planll, with original eignatllrefJ
of JIll.', Bottll and Mr, Schuetll, wall produoed at trial /,Ind had been
maintained within the lIole cUfJtody of Mr, rJchuetll. This version of
the plan contained changell not reflected on the plans lIubmitted to
the Townllhip, inc luding notal: lonfJ for a concretll wall ill the
basement and revised cei ling heights. ThefJe changes were not
written upon the plallfJ by Mr. 13ottfJ, (Testimony of Mr. Botts alld
Mr, Schuetll/ Defendant'fJ ExhibitfJ 2 and 9).
],2. Bastian Homes began excavation for the home on or
about SlIptember 19, 1995 and completed exoavlltion on or about
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Octobu' :I, 199&, on or about Ootober 1, 1119&, the footers were
~oured for th~ home, l'rutimony of Mr, Bottsl,
13. on or about October 16, 1996, Mr, Botts faxed window
Ilnd door location information to the Sohuetltlls in Germany,
Thereafter, on or about October 18, 1996, Bastian Homes was asked
by Mr, Sohuetlt to ohange th/J siu of the pat io, 'rhCII ohange
requirClld more footers and additional exoavation work, lTltstimollY
of Mr. BottlJ),
14. The foundation of the home was oompleted on or about
Ootobel: :17, 1996, (Testimony of Mr, Botts).
16. During late November, 1996, a stop work order was
iIJsued by South Middletown Township after it was discovered that
the home was encroaching upon the side yard setback area.
lTestimony of Mr, Botts and Mr, Stoudt). Bastian Homes filed alld
paid for a variance on December 1, 1996, which was grant/Jd by South
Middletown Township on December. 20. 1996, lTestimony of Mr, Botts,
Defendant's Exhibit 19), On December 21, 1996, framing of the home
begen, lTeIJtimony of Mr. BottlJ),
16. The placement of the home did not result in any
additional expense to the Schuetltes and may have saved the
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Sahuet"as additional eKpense by avoiding additional. plasting Wo~k
it the hom" had been plaaed where it /lhould have I:lnn, ('I'eatimony
of Mr. aott.),
17, Immediately f.ol.lowing the granting ()f the Varilltlr,le,
Mr, aotts iSlld Mr, Schuetz mel; on the property to talk al:lout chsngu
in door sizes, the use of oriented atrllndboard (hereinafter "OSB")
instead of plywood as well as various basement and garage design
changes, (Testimony of Mr, aotts), At .this time, Mr, Botts told
Mr. Schuetz that he would have to sign change orders for the work,
(Testimony of Mr. Botts), Mr, Schuetz also requested a change in
the garage floors which affected the dimensions of the roof llnd
porches and asked for c:hanges to the number and location of
windows, Mr. Botts thereafter presented Mr, Schuetz with a chsllge
order addressing these and other changes as well as the approKimate
costs for the changes and additiollS, but Mr, Schuetz refused to
sign the change orderll until they were trallslsted. (Testimony of
Mr, aotts and Mr, Schuetz),
18, aetween Deceml:ler 25, 1995 and January 9, 1996, Mr.
aott~ and Mr. Schuet~ had Ilumerous communications cOllcerlling the
design of the garage. (Testimony of Mr. Botts and Mr. Schuetz,
Defendant's ~Khibits 23-361.
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19, Oil or about Jalluuy 5, 1991\, whllll Butian Homel! was
completing the framing of the home, Mr, Bahllet~ requlSllted two (:2)
additional fireplaces, causing additional delay and expense,
Ultimately, Mr, Bahullt~ instructed Bastian HonletJ to remove the
framing for the fireplaoe requested in the 11ving room, (TeQtimollY
of Mr, Botts and Mr. Bchuet~),
20, On or about February 5, 1996, Bastian Homes began
mechanical work Oil the home during whiah Mr. Bchuet~ made many morl:l
challges, includillg a request for additiollal QkylightQ which would
permit roof acc:eQa through the skylighta, (TeQtimony of Mr,
l3ottQ) , A change order reflecting these and other ohangea and
their epproximate coata, aa well aa credits to the Schuet~ea, were
prepared and presented to Mr. Schuet~ on or about March 6, 1996.
(Testimony of Mr, l3otta, Defendant'S ~xhibit 50), Mr. Sohuet~,
however, again refuaed to aign the written change order,
ITeatimony of Mr, Botta and Mr. Schuet~).
21. On or about March 5, 1996, l3aatian Homea completed
the framing of the home and the drywall waa completed on or about
Maroh 16, 1996. (Teatimonyof Mr, l3otta).
22. South Middletown Townahip r.:onducted a numblllr of
aeparate inspectiona of the foundation, footers and framing during
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the o9nstruoticm of the h01ll1!\ and found nr.> violal:101l1l of any of ita
building regulations. All a rellult, the tOWllllhip iSlIulltd II temporary
Uae alld oocupancy permit on March ~p, 19915, ('rut illlOIlY of Mr,
Bottll and Ml:'. Stoudt),
~3, III early April, 1996, the Schuet~lII!I began to movlIt
thllir perllcmal pOllllelilllionll into the home, as the ill/lide of the hOllle
W8ll aupstantin lly compllilte, ('rest;imony of Mr, Botts alld Mr,
Schuetz), In addition, a wallc-through of thlll home was conducted in
which :/6 items were specified ill a punchlillt and subsequently
addressed by Ballt ian Homes, (Testimony of Mr, Botts alld Mr.
Schuetz/ Plaintiff's Iilxhibit 1, Tab 9) ,
:/4. Mr, Schuet~ alao requested that Bastian Homes build
a retaining wall perpendicular to the garage alld, in fact, met with
Mr, Baat ian and Mr, Botta at Pennsy Supply to rflview the large
blocks which would be uaed, After seeing a sample of the block,
Mr, Schuet~ agreed to its use, Subsequently, Mr, Schuet~ challged
the wall from a straight line perpendicular to the garage, to an L
IIhaped configuration which ill all the wall exiats today, Mr.
Baatian recommended that Mr, Schue~~ not utilize this configuration
aa the angle could not be adequately linked with the type of blook
uaed. (Testimony of Mr, Balltian and Mr. Botta),
B
~6, During 4 meeting held Oil or about ^pril 11, 1996,
d"8pite owing, at thi8 point, oppro~lm8tely $86,000,00, Mr, Schuet~
agreed to pay $60,000.00 to BaPtian Homop upon a halldshake with Mr,
B8IItiall but uid he wOllld not pay I;he remaining balanoe due to
l308tian Homes until thu home was tinished, ('rutimony of Mr,
DBstiall and Mr. Bohuet~).
:16, Oil or about May, 1996, Mr. BClhuet~ wall agaill
preselltod with written change orderll by Mr. Botts which he again
r.efused to sign. The Schuel;~es began to occupy the premises on or
Ilbout May 4, 1996 and, following tho party at the home, 11r, Sohuetlt
requested additional fill and landscaping be oompl~ted, (Testimony
of Mr, Botts),
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:17, In June of 1996, Bastian Homes requested that Mr,
Schuetz become Clurrent with his payments on the work already
performed on the home and presented Mr. Schuetz with a letter from
Mr, Bastian along with a detailed accounting of all the changes
requested, the prices for the changes and applicable credits,
(Testimony of Mr. Bastian, Mr, Botts and Mr, BohuetZI Plaintiff's
Exhibit 1, Tab 10) ,
:l8, In the end of June, Mr, Sohuetz asked Bastian Homes
to stop all construction on his home. (Testimony of Mr, Bastian
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and Mr, BottIS), Bastian Homlll!l did ananoe tor lSublSequent wo....k to
be pertormed on thO! home in NOl/ember, 1996 at tho Sohul!t:zelS'
rflquelSt to addrlll!ls a luak ing root, ('l'allt imony of /Ill.", Botl;lIl. Upon
the view ot tha home conducted prior to the commencement of trial,
BllStian Homes saw IIlvid"nce for thl!J tiut time that leaking had
reoccurred in the ,"allt,,!:, bedroom ceiling, apparent!y due to
imp....oper chillllltly flashing, ('l'estimony of /Ill.", Botts and Mr. Olson).
:29, Although /Ilr, Schuetz gel'lllrally r"fused to /lign
writtell change ordors whlln prosented to him by BaQtian Homes, Mr.
Schuet~ did author.ize at leBst three early change orders cove....ing
$16,:298,00 of additional work, (Testimony of /Ill.", Bastian and Mr,
Botts, Plaintiff's Exhibit 1, Tab 8),
30, Pespite the fact that Mr. Schuetz would refuse to
sign written change ordet'i) for the changes and additions he
requested Bastian Homes to undertake, Bastian Homes continually
accommodated Mr, Schuetz and relied upon his promisos to sign the
change ardors rather than ceasing construc~ion, (Testimony of Mr,
Dotts) . Indeed, it is customary in the industry to cease
construction when t,here are unsigned change orders involving
significsnt dollar amounts. (Testimony of Mr, Nickel),
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H, Although no lIIettlctlllellt htUJ token place on the home
and delllpLte the fact that addLtLollal amounts are IIItill owillg to
I1a.tillll Homelll from Mr, Sohul't~, Bastian HOl1\u has 4greed, in good
faith, to add re III III a number of items claimed 411I def,utlll or
deHoiencLe/l, reElecting either normal weur ancl tear or improper
constl:'uction or omissionlll by itlll lIIubcontraotorlll whioh Went revealed
during the inllpection of thl'l home conducted prior to trial,
(Tellltl.moIlY of Mr, 130ttlll, PlllintHf'lII mxhibit 3),
3;2, Many of thl'l itltl1\lII claimed by the SchuetUIII alld their
experts alii defectlll or deficiencLl'l1ll Wl'lre not nddrl'lBllled by 13astian
Homes pecaUSII they were instructed not to I;llll:fr.>rm any further work
on the homl'l by Mr, Schuet lI\, 'rhelll'l items are typicd ly remedied by
13astian Homes at various intervalll following lIIettlement on the home
or through the Relllidential Warranty corporation's warranty prognm,
(Testimon.y of Mr. 130ttlll),
33, 13a/ltian Homelll is willillg to incur cOlllts in exceslll of
$19,000 to complete the itemlll as reflected in Plailltiff'lII Exhibit
3, including numerous garage supports, alii well as increasing the
diameter of the lIupport poles to improve the structural integrity
of the home, The precise amount necessary to remedy these problems
($i9,825) should be reflected as a credit to the Schuetliles.
(Testimony of Mr. 130tts and Mr, 13roganl Plaintiff's Exhibit 3).
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311, lIast ion Homes hu allo agrllllld to It $600,00 <lredit ill
favor of Mr, Schuetlt to reflect the failure of the 9ara98 and
bUllment Hoors to be sloped at :2\ grad" liS uquuted in the
contractual docunllllnts, ('rest:im(my of Mr, lIot:tsl I?lailltiff's
!i:xhibit: 3),
35, Mr, Sahulltlt has failed and refused to pay Bastian
Homes for the additional worl~ performed under the constructioll
Agreement, involving an additional $93,415,00 above the initial
conotruction Aguelllent price of $16B,365,00, and to the
Supplemental Agreement, involving an additional cost of $:12,2'78,64
above the initial price of $23,200,00, on ~he grounds that if the
change orders for the changes and addit:ions requested were not
signed by him, he is not responsible for paying for it, This is
based on Mr, Schuet:z's belief that only written contracts ar.e
binding, (Testimony of Mr, Schuet:z), Bastian Homes summarhed the
numerous and substantial changes requested and approved by Mr,
Schuet:z in six (6) llIeparate change orders and documented the
invoices for the additional Supplemental Agreement work which wall
requested for the outside of the home, (Testimony of Mr, Botts 1
Plaintiff's Exhibit 1, Tabs 7, 8, and 11). All items which were
claim~d to be part of the contract by Mr, Schuet:z but which were
not completed at Mr, Schuet:z's subsequent request were credited to
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B. LWUJ.I.II.QH
Ae legal authority to euppor.t ite theory of damagltJS.
counsel for l3l1l1tian Homell lIublllitted a memorandum prior to trial
concerning the subsequent changllll and additionll to the home Itlil
requested by the Sohuet~ea. Thot memorandum, whioh demonlltratell
thot lIutian HOlllflS ill entitled to be oompellllllted for the additional
work it performed and cannot bill held rlIl1ponllible for delay damagllll
where the Defendants have cauBed the dday, is inoorporated herein
by reflll:"enoe.
In addition, B8IItian Homllll submit.s the following summary
of the testimony and evidence presented at trial as additional
lIupport for its theory of damages. It wall established at trial
that Bastilln Homes and the Schuet~llII signed a construction
Agreement anli Supplemental Agreement for the construction of a home
on the Schuet~eB' lot. At the time of lIigning the contract in
August 1996, the initial contraot price was $181,566.00. Thill
contract pI.' ice reflected signif icant Ghanges and addit ions
requested by the Schuet1.es on the original plsns for the Georgetown
B Custom Home. The numerous and specific changes demonstrate that
Mr. Sohuetz was intensely familiar and highly experienced in both
residential construction and the construct ion industry. generally.
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'rhroughout thlt ent ~u cOllliltl.'Lltlt iOIl r.JC lht! h'lIl1t', MI.
Sohuel:ll had l'IumerCIUIl CJommunioCltiOtHl vllt fllQlllmlle, l.ctl",phlJll" "Il,1 III
person meetings with 13/11lt: illll /Iomell tWIlr.llH'1l illn 11<1<1 H, l'IIl1ll I1hllll"'"'
and additions he wanted pedormQd urol, q'lI! h<llllll/. III /'tlllHl' ,I/IUII,
Bostian Homes g/lVl! an appnmlllllltll pd<.ll! r.or elm wDrk loll bu <I'/U1t 1/1
was lIimply told to "do it;." VOl' 13vrJry (lhlJn\J1I r"/lI'Il'llltrJlI, Ii/Hltlllll
HOllies prlIparlld 11 written <.I hll IIl./e onl",r l~lIf Lout inu rJ Il'.lIul' 1;/..,
approximAte priol!ls or, ultlm/ltflLy, lI<;tlll\l prlollll Cnr thl! work dOllll
ond crQdited the /;lchuet:t'Hl 1'01' work wllich w,,'" 110 LOIIIJO'" drJII i 1'1Jl!.
Howevel.', Mr. Sohuet~ typlclILly Cllill,d /llId ,'QflllJo<l l;tl ululI tll"I""
ohsnge ol."ders,
Despite Mr. I!lChUlIt1.'lI r.llilure to "lUll llhllll"fl!l ordlHIJ Illld,
despitel:hl!l additional delays und l!lKpelllle OllllllUd by the lIumerous
chllnqes and additionll requellted by hl.m, IJ/lsti"" I I Clmf/II nrtVllr
thrllstenQd to ceaSll const ruct ion. InlltQlld, lIallt11111 IIl'ml~lI tQok Mr.
Schuetz's word th/lt he would llvlml:uaLly ulall tho wrlttlln change
orders preoented to him. At 13111:11 Blld (lVlny pllilllQ ot the
construction of the home, UaaUulI 11011\111I IIHldl/ ev",r')' nUort to t.1ke
Mr. SchuQt:! and hill word Ilt (ucu vlILu'1, dl!lllfJitll the fnct that
lJignif icant dollar Cigunlll wQrl3 adding up on chllngtJ lJrdflro and
despite a oompallY policy, typical in the cotHJtrllct lOll indllBtry, to
Lmmedilltmly cease work witllout /I cUlltomer'lI HLgnud chllnge order.
Indeed, Mr. Schuet~ hila tllken thl'l pOlliUolI 1:11111: he ill not
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responsible tor the significant costs whioh have accrued dUQ to his
requested ch~nges and additions to the home because, in his view,
only oontracts t.hat are writtr.tn ur", binding. 'fhis beliet, however,
is not the law under baaic oontract prinoiples or l>ennllylvania
oaaelaw.
Instead, Mr. schuet~ and his expllrts have describQd
alleged deficienoies and defects in tho construction of the home
Ilnd claim that the cost of remedying these problem/! tar exceed any
amount Mr. Sohuet~ may owe to Bastian Homes.
However, this
position is erroneous for a number of compelling rQBSons.
First, Bastian Homes has already agreed in good faith to
remedy or address work of it.s subcontractors whioh was not
performed in 0 good and workmanlike manner.l
Clearly, for
IAu detailed in Plaintiff's Exhibit J. Bastian Homes intends tOI
replace the cupola, repaint exterior doors, replace the sash snd glass
in the master bedroom window, perform sdditional grading at the front
wall at the left side of steps, do additional mortaring and porging/
replace the concrete under porch, perform additional parging on the lower
level garages; repsir the balusters and handrl1il on resr deck steps 1 fix
leaks in the Gkylights on porch 1 examine the sloping of thlll gutters/
repair and replace the ridge vent installation if needed 1 fix the lesk
in the master bedroom ceilingl fix the chimney r.loshing, improve the dry
wall at archwsy, fix the leak ot family room bay windowl adjust the
pocket doors to family rooml fix the dry wall on the ceiling in kitchen
and dining rooml adjust the cabinet doors, check the dryer venti check
the insulation in the powder rooml fix the glass in door to garage 2,
check the roof floshing at t.he deck to see whether leaking is occurring 1
perform touch-up and dry woll work on the wall in the hollwaYI adjust the
closet doors for light switches, check the insulation in the master
closetl andtrOVide 56 pilasters and posts for structurol support in the
y garage an basement,
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cletiailLtnaitlll lIuoh III the l.aok of inlllllllLLuII Ln plll't 10m. uf thlt hOfllu
or other llIimilar deteot", llalltiulI /1011I"/.1 wOlll,llluvllr tlllllrntll itQ
Quboolltractor work to bQ perCorll1l1rl III /1I11~h 'I 11111111111)'. /IuWl!ver,
beGaulI.. there hall been no QetUl'IlIldllt <Ill thll halllll, IIIHlli,," IIOIllQIl ha"
PlIen unable to undllrtakQ Ltlf lHIIl/lI W'llk,thnJlI"h 1111<1 p~'l'Ipllrlla r.1na\
pun\!1hlist or itemll found LII tll" 110111" 11111:"111\1 thll Hl1hulltUlI'
oClcupancy.
Seoond, many of th" /lrllHh!lt>llfll lJ!nlll1nrl,III""'UeQ I1ru simply
errors on his part. For "X II II1pI", , Ii/IIII'. '"11 1If)1I11~'" did 1111" shake
shingles and, in oompl1ano" with MI'. tlllllllllll;>I'1oI l'IltlUQ/II'., did not use
any partiole board on the homll hilt IHmd nUll, whlr/h hQ approved. In
addition, t,he va!:'iance, which 1.1111I1: LIllI 1I1.l""H1 pllld for, at most
caused leBll than 0 one month .Jotl"y IIIJII IMY h/lVe even avoided
additional expenllQ for ait" work LIIllt W~JlJlcJ IIl1ve belln inourred had
the home been placed in ita lll'I \J Lilli L locllt LOll.
Further, thllrll Wll/.l IILglllfLcllnt t13l1tLmony aonoerning the
struotural inteHrity of Lha hClll1tJ. Mthough ten inoh beam" have
bElfln used fOl' Iltructul'lIl IJUppol't. IIllJl1~1 with numerouo support poles
and although therr.i tll 110 illdir:/ILLon of any damage whatsoever
rllllltl!ld to th.. IltrUrJtlll'lIl illt"grity of the homll, other than normal
settll1lment, Illlnt Lilli IkJlll'lIl hnn lIurlled, in accordance with the
tllf.lt imony of Pe fllwlunt' II '.Il~purt, Jllck Brogan, to provide remedial
17
work to improve the supports under the lI'11:11ge, Mr, Brogan' II
testimony that the garages mUst be torn dQwn ill simply not
credible, Similarly, there was no testimony oritici"ing the numblJ).'
or si~e of baams used under the garoglllS, but only their placement
on block wall. Further, Mr. Schuet~'s poaition that he did not
request addit ional skylight a , do~ra, windowll, and the like ill
simply an llntlJnable position to takQ. Clearly, Bastian HomlJlI would
not make such cOlltly and time consuming chanfJes without lIuch
chonges having been requellted by the hOllleowner. Moreover, the
Defendant's apprailler testified that the schuetzes overbuilt for
the neighborhood and the garage dimensions and other ohanges have
affected the value of the home.
Despite the lack of written ohange orden and the
lIignifioant financial risk that Bastian Homes took without having
lIigned change orders, Bastia^ Homes nonethelQll1I managed to aohieve
substantial completion of the home in time for the speoial occasion
which was critical to the timeframe for the Schuet~es. In
addition, the Schuetzes daims for illddental damages are Ilimilarly
without merit. Mr. Schuet~ was involved in making changes to thlJ
home, moving his personal possessions, or occupying the home on all
of these visits and, at most, only the trip in November could be
attributable to Bastian Homes dlle to the variance.
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Butian HOInItll also IIcknowlctdlll'llJ thLlt certain work wu not
done in ~ good and workmanlike manner and that they lire obliuated
to addre,ul these itemlJ IInd oth,,... normol WItLlr and tear which hllll
resulted from the Schuetilles' ocoupancy of the home or pr.ovlde the
SchuetillelJ a oredit for thQ work, Further, J3alllt ion Homes did not
slope the garage and basement floors ot ~, grade and, therefore,
Mr. Schuet~ is entitled to a credit of $600.00 to refleot the cost
of that work, Despite the fl1ct that the ~, slope is absent, the
structures are not rendered useless, as both g/lrogell housed cars
during the walk-through of the home. 'rhus, using the originol
contract price of ~lB1,665.00 and adding the requested changes to
the construction Agreem<tnt in the amount of $93,415.00 IInd to thQ
Supplemental Agreement in the amount of $~~,278.54 and subtracting
the credit for sloped floors of $600.00 and the remedial work which
will cost approximately ~19,825,00, Bastian Homes is entitled to
$73,078.54.
In sum, Bastian Homes is leglllly entitled to be paid for
the additional work it performed at the Schuetilles' request purllluant
to the construction Agreement, Supplemental Agreement and written
change orders. Schuetz's testimony that "it takes when written" is
not in accord with contract law in this Commonwealth and should not
permit the Schuet~es to reap n windfall for the various changes
made at Mr. Schuet~'s request.
19
'.
10, The Sohl,letlllul olll'lnot olaim delay dllmag811 in the form
of a $30.00 liquidated damllge claUlle whore their own changes and
IIdditionll nre the caliS/! of the delay. Dept. of 'rransportation Y-..
W.l'. Dickerson & Son. I~, 4:2 I'll. Commw. 369 <197911 /-Iood v,
~eininQer, 377 Pa, 34:2, 350 (1954), Any liquidated damoges claimed
by the Schuet~es are offllet or nullified by the $30.00 liquidated
dllmage clause in favor of Bastian Homes due to the Schuetl1:IIls'
oocupancy "prior to the payment of the full contr.act sum including
extra chargee II under the terms of the Conetruct ion Agreement.
(Plaintiff's Exhibit 1, Tab 1).
11. Bastian Homee is obligated to address and remedy
work of its subcontractors which WIIS not perform~d in a good and
workmanlike manner and which will cost about $19,8:26,00 to remedy,
which will be reflected as a credit to the Schuetzee.
1:Z. Bastian Homes is not responllible fOl:" the Schuetzes
incidental damogee whioh were either necellsary and foreseeable
expenees of the SohlJetzl!e or were caused by the Schu'lltzes' acts and
omissions.
13. The Schuetzee will be unjustly enriched if they are
permitted to remain in the home without paying the full contract
22
.
'1'hla Cllall wlla lrlad hcflll'lIlhllllonuruhlul{cvln Ilc"R un Nllvomhul' 14, 17,und 18,
1007. '1'hu plll't1ca WlII'll HI'unlud pUl'mlR"llln tll fllu PI'IlJ1,mud FlndlnHIl of I~Ulll Illld
COllllluuhll1a uf Luw,
I. INTItODUC'l'lON.. mW"~NJ}AN'I'H' 'I'1II~Olty Ol~ '1'111'1 (lASE.
'J.'hlll 1It1llutlun Involvull u dlupUIU hutWl/llll U h'lI11l1 COllllll'uctlun cllInpuny und
IndlvldllUl1l whol:llntl'llCtml "II' tho CIJIlRtl'uctlon ul'lI homu, 'I'hll contl'uclol' RllOd fOI' an
alllounl clulmlld to hll duu undul' II COllll'Uct thUl/l',y ($IJ:I,liOIl,/l.I). At tdul. lhla cluhn wua
lowul'cd hy $lU,4()() to $H,(lI:\,/i.I, PI. Ex,:\, Altul'nlltlvuly, thu COll1plulnl RuultR
dUlllugUR fbI' unJIHlt unl'lchll1l1l1t, Whllu till! 1I1l10llnt c1l1lmud lll1dul' lhlR lhum'y la
$WI,1l77,Il4, PllllntUl' nuvol' cxplull1ud thu 111111111 1<11' thltl UlIlount,
'1'hu Dofundllntll C'lulltCI'c1ulmod, ulluf.!hlll th..lt thuy hud not contructcd fO!' the
ulllount ululmotl und thut tho Plulntlll'hlld hl'cuchod tho contl'lIct, 'I'hoy UIlRol'ted In tholr
counturclalm thut thuy UI'O untitled to dlll11l1f.!ellof$20a, 7M to l'ullledy thu vUI'lollll dul'uctll
li'om Balltlun'll dufuctlvll W'll'ltll1l1l1llhlp, plull CUlltu und uttol'l1uy fuuR, $lI,IJOO In deluy
dalnllgulI (uu of tho dutu 01' tho Anllwul'), und $ll,OOO In conl104UlJI1tlul dUl11ugou,
A contract exllltll botwllun tho put'tlull only to thu following oxtont: The pUI'tloll
IIlgned doculllentll In Aug\IQt 1IJ1J1i. 111 which tho Dol'unduntll ull'l'uud to puy $15B,301i,
They ulllo Rlgned plUll1l ut thut thllu,llpuclf~"nll' thc conlltl'uctlon dotullllund IlpoclOCII, and
thoy Illgned 11 Supplul11ul1tul A,JI'cull1unt, 1<)1' pCl'll1lt fuell, uUl'th ll1uvlnll', und othol'
contructod IIUI'vlcull, 'rhu ollly chunllOUl'dul'lllllgned hy thu purtlell wel'u on NuvulIlhel' 12,
IIJI:lG, Ducombel' Ii, 100li, und IIn llndutud docllll1mll, Ilpecl(ylnll' thu YUl'd 111'1 cltWol'k ,
Theile contl'lIctll, IncludlnH chul1go ol'dul'H totul $1IJ7,B3:J, Tho Pllllntlll'1I conOrm thut
Defendantll huve puld $20a,71i1i,
IlllI tho Bchuol:wll' pOllltlol1 thut uny other IlmOuntH c1uhll0d lo be due Bastian
1
, ,
.
HomllN, Inc, - MlluhunlcNhurlluru not hUNud upon thll IIlllNLllnclI 01' uny conU'uut, 'l'hu
uvlduncll Nhowa thut thlll'lI WUN no mlllltlnt{ 01' thll mlndN upon thll Npuulllc~ 01' un)'
uhanguN, nor upon prlcll. 'l'hu cllntruct I tU1I1 I' IndlcutuN thut It mu)' bu modlllud only In
writing Bnd thuru WUN nougI'uumllnt toullow Ib" vlll'hnlmodlllcutlon of thll contruut,
Accordingly, PlulntllTN mUNt I'uly upon thull' ul\luNt unrlchmllnt cluhn In ordur to
NUllk unythlng ubovu thll contruuted umountN, '1'hu only evlduncu olTlIrlld on thu 8pprulNlId
vululI of thu hOlllll WUN thuL, uvun lll'norh'llllny c1ulnlN or NLl'ucturul nUWN In thl. homll,
and uuumlnll' thut vllrlouN rllpulrN UI'U mudll, tllu vuluu IN $226,000, 'J~he vulull "aN Is" h,
$100,000. 'I'hll DlIrundunlN huve ull'eudy puld PlulntlO' In UllCUNII or IIlUrltllt vllluo of th"
homll, conuldorlng that t1w upJlrulHullncluduK thu IlInd ItNull', which cONt $33,000. und
Plulntlll' IN therllrore not untltlud to uny dumugeN,
'l'hu Bchuut~us ure entltlud to damuguN 1'01' thu rulluru of BUlltlun to pOI' form on thu
contract, reNultlng In dul'ectN In thu home which lleud to bu corrllcted, Addltlonrally,
DefundantN huve cluhned conNequuntlul dUll1uguN, which uru not rONtrlcwd by tho mBl'kut
valuu onalyslll.
n, DEFENDANTS' I'ROPOSED FINDINGS OF FACT
A. The POlilo.
1. BUlltlan Homus, Inc, - MuchunlcNburg <herunltur "Bnlltlnn") III a corporation,
Incorporated undur thu for-prollt corporutlon luwN of Pennsylvania.
2, BaNtlun hUN no ull1ployucN, othur thun ILS thl'UU Nhnruholdel'8.
3. 'l'hroughout nil reluvunt Llll1ell rulnLlng to this lIt1gutlon, Bastian WBB
represented by Its shnruholdlng PI'ullldunt, I':ull'cnu .1, Bustlun, nnd other shareholdol'll,
Donllld Bowman und 'rhomus It Bottll,
4. DofunduntN Kurt und Inguborg S,:huuL~ uru cltl~unll of Oermnny and speak
2
.
lhnltod J.lJnill.h.
B. The OOWltl'UClUon Ape'lnent.
I), Buforo ontorlni Into u contrnut with Uo.Uun, tho Schuut"u. .hoppud for 11
quullllud bulldur, 'I'huy uho.o Bu.Ulln buullu.o lluHtlnn could muut thulr uonHtruutlon
tlmlll'rumo, u1lowlni for un Impol'tllnt fumlly CUlllhl'lItlon In Spl'lnlllOlIO. Thuy 111.0 UhONU
BOHtlon bUCBu.u ofthu promotlonullltlJruturll pl'ovldlJd to thlJm, found lit PI. Ex. I), 'l'hlH
IIterl1turu filII. to Inform tllll homlJbuYlJl' thut lluHlIlln Hubcontl'uctH ullltH work, but It
I1HHurtH thut BUHtlun UXpllctH "HUplll'lor quullty of ItH Hupplh,!I'H IInd NubcontrllctorH," thllt
quullty IH onu-holf tho product, IInd "Hurvlco IInd follow thl'OUllh" tho ol,hor holf, ond thllt
tho COlnplll1Y ulnphllHlzuH "ruHponHlvunoHH to tho cUHtonlOrH IHllll problllmH IInd noudH."
Schuotz hod thlH lIturuturu trunHlllted, IInd I'ullcd upon It In mllklnll' thu doclHlon to
contrl111t with Bostlun. PI, Ex. ll, p. /I,
6. Botwoun AUgllHt 4 und AUglIHt 8, 1011/1, BIIHlIlln unturlld Into u contract to
construct I1cuHtom homu for !(urt und Inllllborg SChUlltZ.
7. 'l'ho olomontH of tho Inltlul contruct llntol'lld Into by thll purtlllH UI'U tho
followlngl
11. A "ConHtructlon Agrllomont," Hlgned by Bowllllln, BottH, ond tho
Schuot~os, dotod August 4 and 8, und found at PI. ~:x. 1, Tub 1 (horuul'tur Tub 1),
b, An "Addltlonul Work Non.Uosponslblllty SUpplullluntul Agroulnunt,"
Nlgnod by BOWlnlll1lllld tho SchuotzeH, dotud August 8, 'rob 2.
c. A hnnd.wrltton documont, slgnud by Botts und Scbuotz, dotod August
8, Tub 2, Notobook p. 4 (hurool'tur N. 4).
d, A "Construction 'I'hno Plun," slgnud by BoLLs und Schuutz, dotud August
4. Tub 4.
a
0, A Rpoulllllullon Shuut, alKnull by Uolla, Uowmon, und thu Suhuot~ua,
dutud AUiUat 8. 'i'ub /),
r. ConatrullUon doalgn pluna 01l1,'uIII\ur, "pi una" 01' "pl'lnta"), al/lllud by J30tta
and Sllhuot~, dutl/d AUllUat ". our. ~:ll, :l.
8. EUllh 01' thu ubuvu ululllunta of thll contl'ullt rOl'lI1ud un Intllgrw port of tho
ovurall ugroulllunt rllollhud by thu pUI'tllla.
O. 'i'hlllnltloll!ontruut or thu pllrtlua, contulnlng tho ubollu ulull1unta, lnllludud thu
rollowlng spllulOu pl'ovlalonal
u. Any chungua to thu contruut "muat bu aut rorth In wrltlng," 'i'hu portlua
uddud thu following hund.wrlttun provlalonl "Contructol' ahull con fur with ownur In
wrlLllIg conuurnlng poaalblu pl'lculncruuslIa." N,2.
b. 'i'hu homu wua to bu constI'uctllll "In uccorduncu with thll ubovll
spuclllcatlona In thla ugruumunt und thu uttuchud Conatructlon Agruull1unt DutaH (Exhibit
A) nod algnod prlnta, l/lcorduncu lalcl w/co/latructlon thno plun 1'01' tho aUIIl of
$108,3015.00." N.:l,
c. II' thu homo wua not complutud within six 1I10nths or C0Il1I1l11nCllmunt of
thu work, tho contract provldud Ibr "$30,00 pur duy" Ilquldutud dIlIllUgUS, N. 2,
d. Prlcua sut forth In thu Supplumentul Agruument ut Tub 2 woro "not to
ollcood 10%" above tho umounta sut. forth In tho documont.
o. Bustlun WIlS to Icuvo lurgo stoncs 1'01' lundacllpll, und thuru WIlS to bu a
frulllu for 11 dlsappullrlng stlllrwllY at thu mustur budroom. N. ".
10. Botta admlttud thuru wus nuvor Ilny ugruull1cnt ruuchud, Buch that tho contract
could bu altorod vorblllly, ratbur thun In tho roqulrud wI'IUng.
11. Thu pluna, Dol'. Ex, 2, uru koy to thu ovurllll contruct. Thoy modifY thu
"
~ .......
'.
.
lIpeclflcutlon lIhuut und contentll or othel' plJrtlonll orthu eontruut, IIlnuu thu plunll uontuln
IIpealOclI which lire not othurwlllu purt or tho Speelflcutlon Shuut, or which othurwlllu
conflict with tho Spuclflcutlon Shoot. Somo ollumplull Ill' ulomuntll or the plunl whluh
confllot with or udd to thu Spuolncutlon Shuut, und which thu purtluII nonuthelulll ulP'ulld
rormlld 0 port or the contruct, uro thu followlngl
,
u, "No wururbourd/ull plywood flool' & 1'001' IIheuthlng." uur. Ell, It, p. L
b. "1.\0 YOUI' lIhuke IIhlnglell." Dot'. Ell. It, p. 1.
c. "Felt pupur betwulln blocl, between lilt und :lnd hlllck und botwuen 8t,h
lUld 9th block" (this III uccompunlod by II drowlng). our. Ell. :l, p. 2,
d. A IIteol muln buum In tho ballument, Dul'. ~111. 2, p. 1.\. No lIullh provllllon
occun In tho Specification Shout and BotLlI tOlltlned the IIt'mdard buum III wood, not Itool
(lIoe oIso Dol'. Ex, 1.\, p. 3, lIhowlng wood IIUPPOI'l),
o. Thu floorll or the bUllllmont lUld Ilurugos were ull to be IIl0ped ut u 2%
grudo, Dol'. Ex. 2, pp, 3 Ilnd 8,
r. A 10' wldu French door WUIl to be Installud all' the roar or tho bo.emont,
Dsr. Ex. 2, p. 3.
g, All toilet. were to be 20" high, u handicap height. Del'. Ex. 2, p. .. und
15.
h. The homo wall to bo conlltructud with two ovenlv.ed glll'Ilg01l, ono
contolnlng 11 grollse pit, Ilnd both huvlng high colllngll. Dol'. Ell. 2, p. 8 und 15.
I. Tho homo WUII to huvo a cupolu ubovo one or tho gurugoll, Drllwlng Ilt
Del'. Ex, 2, p. 8.
j. Tho home WUII to huve brullll Moun or I<ohler rUucotll, our. Ex. 2, p, 4.
12. Tho August lO1l1) COlltruct documontll wure modlflod In writing by the parties.
G
tho bllthl, bOllllUIO thll Itom hlld hoon "Unlld out" In thll doulllllllnt lit 'l'llb 3. In rllut,
whllo VIlI'loUI Itllml Ilrllllnud out In 'l'uh 0, thu"bruII In buthl" Itum II not. II
,!'ho douullltmt IhowI II chllrgul'ol'thu cupolu, ut $000 (N. 7). Howuvur, IlIlILlon II now
uhu.rlling ror tho cupolo us un UllLl'u, pUI't or u chunKu ordul', notlnuludlld In tho Ilontruut.
N,OO.
16. 'I'ho pions wuru Inltlully dl'uwn up und 1I11lluutud on AURllst 4, Ilnd updutod
butwoon then und tho crmtruut Ilgnlng on August 8,
17. 'I'wo ol'lglnuls or tho pluns WUI'U slsnud hy thu pUI'tluS. ,!'hesu liru round /It Dol'.
Exs. 2 and O. Thll pion round ot PI. 'l'ob 13 Is u photocopy of our. Ex. 2,
18, 'I'he documents ot our, Ex. 0 UI'Q thu pluns which BONtlun prosontod to South
Mlddloton Township ror luuancu or 0 bulldlnK purmlt. 'l'hls wos ccmflrlllud by Botts und
Tim Stout, thu'l'ownahlp Codos Flnl'ol'cllmont OmCllr.
19, Botts toStlfllld thut thuru was only ono sot or dllslgn plans und that hu was
unablo to produco his own copy, Howovllr, 0 CUfll1\11 comparison of ocr. Exs. 2 and 9
conflrllls thot tho pIons In BasLlon's possession weru sepol'ately.oxecuted ol"lglnals, not
simply a photocopy or the sume pion, thus conflrmlng thut Bustlan had Its own plans but
fulled to produco the orlglnolB at tl'lo!. The fuct thut thu versions uru dllTerent bocomull
lnollt ovldent by comporlng t.he BlgnoturoB and doting on euch poge, demonstrating thot
tho portles seporately executed lloch set of r1ocumllnts. For example, compu.re the lower-
loft BIgnoturos on p, 13 of ocr, Ex, 2 (the "1~h'Bt Floor Eluctrlc pion) with this sume
dOllumont In Del'. Ex. 9, ot p. 7. In Del'. Ex. 2, Botts' Blgnoture crosses ovor 0 line
contulnod In the pion, whereas In Dol', Ex. 0 It doeB not. A comparison of slgnoturos on
011 pogos reveuls similar dllTuroncos.
20. Dlsr.roponclus exist between Del'. Ex. 2 ond D. Whol'e thOSll occur, Dor. Ex. 2
7
Mhould gOllllrn. mlloll1pluM of dlau,'uponuluM OI'U lhu rllllowll1f{, 1M. I!:Il. Il, p, II uontolnM
thu Ilorollll loyout, ()omllul'II1K thll PUKU with l)uf', ~:Il. 0, JI. I, onu llndl In thu ~:Il, \l
lllIralon thot thu purtluI Inltlolud u KoruKu dlllll' OJllIlllll' III L1111 mlddlll or Ourogu 1. 'I'hll
BOltlun pion, ut mil. 0, p, 1, d01l1 I1Qt cllntulll thll modllluotllll1. AI II f\II'thur ullomplll,
BOMtlon'l pion OM lubmlttud tll thu 'l'llWlllhlp douI nut uvun Inuludu thu dlluumunt ot p,
2ofSllhuut~UI our. Ex. 2, 'l'hll pugu II IllI'nud by thu Jllll'tlul. Nordoul thu BUltlon pion,
111 lubllllttlld to thn 'l'ownahIJl, uontoln thu IUlt JlUHU or our. li:lI, 2, whluh ahowa thu
drlvuwuy loyout ond "Iund plonnlnll''' nl/' dl'Ulnullu,
21. As furthuJ' uvldunuu I,hut 1M, J!:x, 2 rofluuta thu '\111 und 1l01l1plutll Jllona
IIxucutlld by thll portlul, ruful' to p, ll, Dur, F:lI, 2, uud nolu thu wOl'dlng "outaldu flool'
Iloped 2'il:." 'l'hls la not round on thu BUIll un Jllun, /Jul'. I.;x. 0, p. 10, yet ot trlol, BottI
tUltlOod thut 011 0001'1, Includlnll' the out"ldu 11001', WUI'U to Ilu II oped ut 2rlf}
22. 'l'he IOllond, third, und rourth PUII'UI or ~:x, 0, thu Jllun lubll1lttud Ily Buatlon
to South Mlddlclton 'l'ownlhlp with thuh' upplluuLlon 1'01' u building permit, purport to
Ihow thu gorugus for thll homu. In fuut, BOLL" telLlOud thut thu"e weru not pUI't or tho
plonll shown tho Schuut7.ulI (thuy contuln no Ilgl111turel of the purtlull, thllY do not
uccurately portray tho guruge" Intundud to bo hullt (thu BuruHuI wuru to huvu hip 1'001'11,
I Ol:her ellamplee inolud13 the following I Paf. Ell. 2, p. 15
oontains a notation in the upper right oornor, that there be three
under-poroh lights and two motion doteotors. This notation i. not
found in on the oorreeponding pogo in Ell. 9, p. 7, although the
lights and deteotore were pr.eeent at the home.
Det. Ell. 2, p. 7 oontains a notation, indioating the four
olosets were to have switohes. Ell, 9, p, 15 doeB not oontain tlli.
referenoe. Not only do the olosetB have switohes, but they do not
operate properly, br the opening and oloBing of the oloBet door.
Garage No. 1 n faot hoa a 12 foot oeiling, not a 9 foot
oeiling. Pof. Ell. 2, p. B oontoins thJ referonoe to a 12 foot
oeiling, while Per. Ell. 9, p. 1 dooB not.
8
.
us /Iuun In thu druwll'llut p. II or mx, :t), IInd thu IfUl'UIfUS UI'U not PI'oJlurly orhmtlld (us thll
druwlnll ut p, II or Dill', Vlx, :t shows u CUPOlll cmul'oo/' puuk, rllcllllf thullurullu door lind,
und u IlUI'UIlII UhUllllllllhu homu, WhUI'UUII Jll>. :t und /I Ill' I'lx. II show KurUlIlIs rUlllnll thll
wrong dlrulltloll to ullow this, und thuy shuw ulfurllllu dool' I'llclnlf u UO dllll1'lIl1 turn 'hll"
thll propllr ol'lontuthm or thlllfllrulfu).1
21l. 'I'husu dullclullclus In 1ll1l'ullU duslWl WUI'U ulllmowludll'ud by Bott/l, In his
tllsLlmony, us wus thu ructthutthu Bchuut1.IIS wuru nuvur shown uny llurUllu druwlnl4s
until NOllllmbur 1000, whim BlllllI bUllun to Ollulllptto guln thu Bchuut1.uII upprovol ol'thu
ol'luntotlon ul' thu IlUI'UIlUS I'ollltlvu to tho hOlllo. Bolts tostlnod thot whllo tho Il'UrOllu
loyout/l wuro CIIlOI' /fom tho bownnlnA' "In hili huud," ho did not uttumpt to clurlry tho
IOYQut nor WUII tho contract cleUl' ubout whet WUII Illtundod with rospoct to gorogo
construction, until he bugnn rorwul'dlnll druwlngll to tho Bchuut,.uII.
24, Botts l'oxod 01' mullod to tho Bchuel,.os, utloullt 14 dllferont gurugo pluns 1'01'
tho garago layout, IIhown In Dol'. ElllI. 23 - :J7, 130ttll telltlOud thuL the layout or tho
garagos wus dllncult, slnco they woru both IUI'ge ..urugell, end tho roof Ilnos hud to Llllln
appropriately to tho home.
20, Noul'ly ull thu Il'Ul'uge delllgJ1/l rOl'WUl'dod tho Bchuot,.os wel'e not In
conformance with tho Bchuot,.ell dOlllro/l since many contulned u stop down /fom ono
garugo to the othor, und others contulned llw)(ward, unsightly roorllnos, not 01'0 hip-roof
I The plans provided to ths Bahuetzes were reverse, or a
mirror imago of the true layout of the home. Not until at least
November 1996 wero the Sohuetzes ever shown drawings with true
orientation, and they were never given design plans of the detail
found in Def. Ex. 2, with proper orientation. This wall the oase
even though Bastian admitted, through the testimony of Mr. Bustian,
that the building of this type of home, with two large garagell, is
oonsidered unusuol, und presents particular challenges.
o
dOM\gn (u,g. Oul'. ~111. 110, IUMt pu~u),
0, IIlDQQUflltu 111111 cOllnlutlll1l hlyolullllllOJ' Olump OJ'dun..
I, ObDIIIlll Ordul'Illlullltlllll to tho Ctlllllh'\llltlUII APIIUlllullt.
20, Vurluuij InnCCUI'IIc!UM IJI'U found In lIulIl.\nn'lI chun~u ortlul'M.
27. 'l'hu InncclIl'ucluM In c1llll1~u Ol'dUI'1I UI'U pUl'Lly uxplulnud hy thu I'Il11t thut
I3IlMtlun pl'lllluntud dlll'ul'unt chunlolu ol't1ul'M to thu Hchllut~Uij, with t111l'uruntlllllountll, thun
thoMu oITul'ud nttl'lul, nnl! Lhut thu chnnlolu ol'dUl'ij ,)Il'urud ul 'l'uh II WUI'U not urllutud hy
I3IlRtllln until ,Junu 1Il1l11luCCOl'dhlg to Bottll tlllltlnwny), wullnl\ur thu vllrloUII uhungllM
hud beun uunlltl'uutcd,
2B, 13uttll concudud thnt whllu hu cluhnR to hnvll wdllun thu clmnHu urdel'lI fllund
lit Tllb II, pp, 70-02, In ,June 1II1lLl, thullu WUI'U nuvur prulluntud to Suhuut~ IInd only
emurgud lit Bottll' dupollltlon MIIVUI'II1 duy" hUrOl'U trlu\.
29. The Inuccuruclullln thu chunllu m'del'lI olfurud Into uvlduncu hy l3ulltlun Includu
tho following.
II, 'l'hu ltUlll1I uppulIl'lnf.! In tho IIlgnud chungu urdul', dlltod Nuvumbor 12,
19915 lit N, 94, Ilrll rUlltotud In thu ,Iunu HJIlO chungu urdUI'll, lit N. 71l.112, but lit dlll'llront,
Incrollsud prlculI thnn hnd blJlm IIpcdOcnlly IIgruud tu In thu wl'lttun chnngu OI'der:1 'I'ho
IncrOllllulI thut follow totul $285,00.
I, ltom 2, with II COllt of $tl,lOB III not round In thlll ron11 In the
changu orderll lIubmlttud Into evlduncu. This COllt III dllltrlhutud nmong lIevurlllltumll,
making It Imposlllble to truck tho cOllt 1111 It III now hlllud.
Botts ogJ:'eed in his testilllony that he did not have the
change ordeJ:'s at N, 94 and 95, labeled Schuet~ Deposition EllS. 5
and 6, until thllY were pJ:'esented by Schuetz at the Deposition.
These two change ordeJ:'B J:'llpJ:'esent two of the only thJ:'ee chonge
orders signed by Schuetz,
LO
1I. Hum 4, with u ~ONt of $7111 to udd twin plnu po~kut dOOl'N butwuun
tho fumll)' mom und thu brunuh uruu IN hllllld lit $UrJ7 lit N, Ii I, Itum 17.
1I1. Itum II, with II ~oat 01' $ll\lll to udd twin plnll pUllkut duorll
botwol/n thu fumll)' room und thll l'oYllr IN blllod ut $lllillut N. II~, ILIlIn III,
h. OLhol' IlHI~~UI'u~llIa IIxlNt, whlln cumporhlK Lhll ,Junu ~hungo urdllrll
proNllntod by BUNLlun, und thll Pl'opoNlld ~hungll urdul'N Hlvun to I:lchulltv. ut lIurllllr tllnllN,
but which WIII'U not ugrlllld to hy B~hulIl~, 'l'hllHlllncludll Lhu followlngl
I. DuCllndunLa' Ex, 48 la U chunllu ol'dllr whluh WUH prllHuntlld to
S~huut7. on Junuury 6, LUOll, but not utp'uud to, It la not found In thu PlulnLllrN uhungu
ordllrH, 'I'hIN chungll ol'dor In~ludoa Itllma found within Plulntlfl'H ,Junu chungo ordllrN UN
Coli OWN, BottN tUNLlflud thut thu pl'lcua IIUOllld lnLhll chunHo ordllrH or1wnully hundlld to
Schuetz WOl'O "uNtllnutoH," oVlln though thll chunlJlI o,'dur WOH pruauntlld to S~huotz
upproxllnatoly Nix wuukN unur tho purLlIIN dlucuHHud tho pOHHlblo ~hungul, BottN
lomotlmol oxplainod tho Inerllusod cONt IIN ropruHonLlnH u now prlco Cor tho Humo Itom.
Refloctlng tho Ilxtunt to which thoru wua nllvur u muutlng of tho mindH on propoNod
contract rovlHlonN, BottH wlluld now IncrUUHO coatH,ln Lhll JUIlII chunge ordol'H, UH folloWNI
. [toms 1 and 2 01' Ex. 411 uuch Hhow windows bllllld at $IH4 ouch. 'I'houlI
uro rOltatod ut a COBt of $614 oaeh ut N. 70, ILumB 1,2,3, und 4.
. [tomB :.I und 4, unHllld buy wlndowB with cop pur l'OOCB In tho Cumlly and
living rooms, aro bHlod ut $2,160 oach. Eueh IB rUBtatod ut u COllt of' $3,1:.17 at N, 70-80,
ItemB 5 and 6, 8 und 0,
. 'I'hu propoBod changes for ItUlnH 3 and 4 were pl'oBontlld In thll chango
order all\ package prlco, ut $2,160 lIuch. In thu June chanlJlI ordur, BUHtlun uttompts to
odd u COBt of $705 por window for brickwork und fluHhlng connoctod with theHo SOll10
11
window., ot N, 80, ltum. 7 und 10, und uttumptN to udd u f\lrthul' uhoriu or $360 for thu
fomUy room window ut N. 80, ltum 10,
. Itum 8, u window In thu JIm JlOlII' huth, IN blllud uL $200 hut IN rUNllltud
ot 0 cONt of $260 ut N. 81.
. Itum 13, II Ntuul duck 101' "UI'UMU #2,lij blllud lit $~,OOO but I. rURtutud lit
II CoNt of $15,800 lit N. 82, ILUI1l 21.
. Hum 14, U RLuul duck for j(UI'UIlU # I, I. blllud uL $0,000 hut IR rURtutud lit
u cONt of $7,000 ot N. 83, Itul1l 20,
. ltum 10, thu uddltlon 01' u COnCl'utll Jloor undul' Murogu #2, III hlllud lit
$1,120 but III rOlltutud ut 0 cORt 01' $2,184 ut N. H3, Itum 211.
II, 'l'hu lolul oYUrChUrHu 1'01' bllllllH thu RllIllrIItul1lllIn thu chuniu
ordur ut ElC. 48, YUrllUR thu ruconRll'ucLlon of thuRu blllud ItulIlS In Junu lODU, IIR Nhown
In thu precuodlng bullutoLl lIubltulnll IR $8,470.
III. Duf. U:x. 00 11Iu ChW1HU ordul' propoRud by 13ulltlun to Suhuutz on
Jonuury 7, 1000. It contulnll InuccurucluR 1I1111 II UI' to thORO of Duf. I~x. 48, und 130ttll
oll'urod tho lIumo Ilxplunutlonll. '1'huRu InuccurucloR Includu thu followlngl
. Itum 7, to udd concrutu undul' hull' 01' lluruMu # 1, III hlllud ut $1,100 but
III rOlltutod ut u COllt of $1,200 ut N. 811, Itul1l 2U.
. \tum B, to udd Rpuclul trullllull und lrull1lng for thu gurugo roof, III blllud
ot $3,000 but III rUlltutud ut u COllt 01' $0,7:10 ut N, 110, Itul1lll 1 und 2.
. Itum 0, to udd thruullkyllghtll, III blllud ut ill L,OOO but III rORtutod ut a totl1l
CoNt 01' $2.740 at N. 80.7, Itull1l1 8.11.
. Itum 1:1, I'or uddltlonaluluclrlcul work, WUll blllud ut $4,286 but III rUlItutlld
al u cOllt of $5,286 at N. 110, Ilull1l.1. In IUllIllYlnH ubout thlR Itum, Dotlll concoded thot
12
thu uddltlonul 200 Ul1lp 1Il1rylcIJ whluh WUll LO hl/ Inlltulll/d UlldlJl' thiN Itl/lIl WI/N not
1I1l1l01llp1lNhud.
. Itum 10, un uplll'udl/ 111' thl/ ''rImL dOOl', WUN hlllud lit $8"1i, hut IN ru.tlltl/d
ut II uOllt ol' $1,4UO ut N, 67, Ilul1l Ul,
Iy, '1'hl/ LotuloYIlr1lhurHI/ nil' hllllnu Lhu .UI11I/ Itl/11l8 In thu chlltllllJ
ordlll' found lit ~~". DO YIJr8U8 LhlJ l'UIlOlIllL.'ucLllllI 01' LhIJ81J hlllud ILl/ill. In ,Iunu !DOO, II.
lIhown In thu prl/cl/lJdlng bulllJLlJd lIuhlLlJl1IlI III $O,C1HlJ,
IJO, '1'hu .Iunl/ I:hungl/ 0l'dUl'8 1l0IlLUlnIlUIIlIJ,'OUlIILIJI1l. which 11I'1/ urlJlltlJd uJl-IJI' the
fuct, and If lhuy wlJrlJ Intul1dud to hu blllud, would hUYIJ hlJl/l1 pl'lJalJl1tlJd In thu chunKu
ordurl prulluntod to BchlJlltz utlhlJ tll11lJ Lhu chul1[.\1J wua undlJr dl8CUlIlIlol1, 'rhu folllJwlng
churgel UPPUUI' only In 13ullllun'. JUI1IJ chunllu rJl'dlJru, which cuml/ to light on thlJ UYIJ of
trlu!. 'rhoNu ItlJll1l1 wlJrlJ MLlntlJtldlJd 1;) hlJ hilled by BUNlIul1 unLIIllllguLlon urONU. '1'hIJY
Include thlJ flJllowlngl
a, A churgll 01' $4,000 to udd 81x lout Lo HUl'uglJ # 1 IK I'ound lit N, 82, ItlJll1
19, and u chul'gl/ of ill2,OOO to udd foul'l'ulJt to gUl'ugo # IlK found at N. 84, ItlJll1 1 L Bott.
concuded thut he I11UY hoYIJ ugrued to IJl1lurHu thu guruglJlI UL no eOllt to thu BchulJtrtell.
Schuetz te8tlllud thut whlJn thlJ purLlull nlJgoLlutcd OYlJr thlJ mlulocutlon ofthl/ homo Dottll
Ilgreod thut Ba8t1un would ulllurglJ Lhe gurugull ut no cOllt. 111 ordor to hulp Olf8ut the luck
of centerednuKlI of thu hOll1u on lhu proporLY, due to thl/ 1'lJlucutlon, 0 1
Billing for addltlonul ung!nul/rlng, druftlng, und dlJatgl1 work 01'$10,:10218 found ot N. 02,
Itom 3. Botti telltlJlud thut thl. chul'gu rulh!CLlI In.houNIJ COULlI of DUllLlun und thut no
.ubcontruclora wuro utlllzud for thl. purpo.lJ. Botta tl/Ktlnud thut he neYlJr quotod any
umountl to Bchuotz, yurbully or In writing, fOl'lIuch 8IJrYlcua und thut the firlt limo they
OPPUIlr 18 In the Juno ahunge ordur. If thul'lJ hud buen uny Intention to hill f.:>r thele
1:1
nl/l'Ylcoll, BchulJlv. Bhould hOYIJ hlJlJlllllyolluhullHIJ OI'c!IJI'lIutLhu lIl1lu thlJ uhllllllu Willi undu.'
dlBUUBlIlull, but hlJ Wllb not, 'l'hu pl'll11l1l'y l'UUNlIn nil' lhlJ Itllllullutlollof duuklllll' wun duu
to oktunNlvu dynllllllllnK of' I'oclt III lhlll 1I1'IJU, notlllcOllfll'lIlud that lhlJ gorullun would
hayo contulnud " . 8 flJlJlof' fill ulldlJl' thl/ poul'lId HlU'III1I1 Jloor., IInd lhln IlrlJutud u rlNlt
01' crollkltlK and NIIltllng Ilf' lI'udltlollul flool'K,
b, A uhurlllJ of' I$UOO III IIllldlJ III LhlJ ,Juno chungll ordur to drywull tho
colllng8 und wIlIIN of g1l1'U1l1J #'J., UL N, 8a, ILUIIl 7, Both PlIl'lIlJlItlJlIUJllld, tllld lhlJ plonN
lIhow thut tho go.'ugun WIJI'IJ to blJ dl'ywulllJd nil uhmg,
ll, A churglJ fo,' thlJ 20' 1I 10' I'oll.up gUl'uglJ door, 10cotIJd In guroiu #2 iN
ONNOllllOd lit $0,004, lit N, Ill!, ItlJlIl 24 (ofl'NuL by u cl'udlt of $1,707 for tho two doorll thlll
onu replllceB, N, 83, Itom 'I./}), 130lh BoulI und SchulJtz tOKLllll/d thut whun DlJf, mil, 4H
wos prelluntod to SchulJt? (contulnlng thl. 1I111111J Pl'opollud gllroge doul', ut ItlJm 17),
Schuotz did not ull1'elJ to thlJ door ut thut LlI11IJ, SchulJt? Ntuted thut hlJ dIdn't ull1'oe
becoulle ho WOll too rushed, wonted to 8ee u lI'unllluLlon of the chollge order, folt thlJ item
WUll too oxponlllye, Bnd W1I81l't 8UrIJ hlJ uctuully wonted LhlJ dool'l thut he hod JU8t
Inquired obout tho dOOl', The door wUlIlnNtulled wlthoUL hili con8enL, while Schuotv. wos
owoy, and ho W08 unublll to obJlJct or to kllow of'ltN IIl1ltollutlon,
d, Botts concedlJlI thut thlJ orlginul plUllll clllled for U 10' wide double door
In the bosement, hinging to thlJ out8ldll, but hlJ WOB unubllJ to locote lIuch 0 door, Ho
Insteud lustolled II 5' 4" wldlJ door, In billing $000 for thl8 door, und crlJdltlng $800 for
thlll chungo, Dottll concedes thut the cl'lJdlt WUll bUllud upon thlJ cost ofo stundurd product
la' w1do door, Any crediting lIhould bo ot the CUlItOIll I11l1du price of whut It would co.t
to Install the door Intended, not tho lItundurd prlclJ of u lQ' wide door thot doo8n't flt the
lIpOCO,
11
u. A llhuriu II Illlldu for InNlulllltlonol' dlllllppullrlnlllltlllrll lo tho mlutlJr
both and to lI'urugo N 1, lit N, 80, Ituml B und 0, 'l'hll orllllnul plunB ulIlIud fOl'
dlllappearlnll' lItuJrwUYI In thlJIU locutlllnl 1I0 LhlB III UII IIddlld UOllt flJr un orllllnul
NpoclOllutlon, BOIJ Ell. 2, pp, Il IInd /I, ~;vlJn Lhough Lhll orlglnul plun cullud flJr 0
dllluppenrlng BtuJrway In llurulllJ #2, with u l4' hlllh clJlllnl(,lllllltlun found lhllt unythlng
uboyu 10' high II U llUlItolll Illudll ItlJlll, InNtl/ud of pl'llyldlnlf U 1~' high dlBuppuurlng
Itl11rwny In gurugu ;/ 1, BUBtlun InBtulllJd u 10' lItulrwuy und II plutforlll, 'l'hlllll nut what
wal contructod 1'01', ond t.horo Ihould bllnlJ chul'l(u, with un oll'Bllt ugulnllt lhlJ PUI'llhuBe
price of tho homlJ, In tho ulllounL of $1125,
f, Tho orlglnul conLruct und plunll culllJd for brickwork lIurroundlng tho
home, Ex, 47 renoctB BchuotzuB' u!P'uumont LO puy $4,000 IIxtru for thlJ Inllldu und
outsldo work, Inllludlng bl'lckwol'lc IUl'roundln!l thlJ Inltullutlon of U nl'lJpluco und
chimney, BUBUun'lI own work puplJrllllhow unlnlll'lJoBlJd cONt of$I,OOO uboyo ultundlU'd
house prlco, for ollt,ru brick work lit tho "tOpB und front ItoOp, Dnatlun llIlW uttomptN to
bill un addltlonnl $839 for oxtru brlckwol'k, lnyolYlnlf thu chll11nuy, tho Ntoop, und tho
Bteps, ut N, 90, Itom 1.
g, Botts tOlltlnod tho cupolu, wlJuthuryuno, und COppll" roofblllod ut N, 90,
Item 3 have already beon billed Oll purt of tho orlglnul contractund the extrull for tho
windows and cop pOI' roonng, 'l'hlB Itolllllhould bl/ dololl/d,
31. BUBed upon the uboye extru bllllnga, ut (u) . (h), '1'ho BUlltlun billing Bhould
be reduced by $32,723,
32, The total of tho June chunge ordlJrllut '1'ub 8, N, 70.92 omount to $93,4115,
ThiN III the omount which BUBUun IB churging In their BUlllll1ury of tho cOBt of tho homo,
at Tub 13, It III notoworthy that this totul dooll not UBe tho prlceB found In tho
15
U, Vb.up Order. lIehltJlIl to tllIl SII11lllomllutlll AlP'lIl1l11l1nt,
37, 'l'he Buppll/llllJnLul AH"lJullllJntorlhlJ PIII'lllJlI, found lit '1'lIb 2, wUlIlntulldud tll
1l0YUr "uddltlulI/l1 wOI'k" which WIIB nllt plll'lof Lhll Clln.tl'uutllJn AWUUllllJllt,
/l8, '1'hu SuppllJllllJnLlI1 AHI'UUJl111/1L NfllJllllllJB 'lUlItll frll' plJl'lllllB u/1Ij fuu., UlIl'lh
llloYlng, wutlJr und lIUWIJI'lInlJB, 1Ildl/wull~1I unu Ul'lYI/WIIYll, 'l'holoLlIllol'lhu liuppllllllulltul
AgreellllJntl. $213,200, to hll hlllud by f'ol'wlII'dlnH InyolclJB, 'j'hl,lllUPI)llJllllJlltlllllgrlJulllellt
proYldellthut PI'ICUB mUBt full within 1<1',4, of'thlll UllloUllt,
39, No te.tlmollY WUB prlJNUnLlJd, unu nUllu Ill' tlw llhunKu llI'dlJl'lI pl'U.Olltud to
BehulJtz propoBed UIlY modlflcullon 1JI'Inlll'UUHIJ 1/1 COHlij cOllnuctod WILh lhl. pOl'tlon oflhlJ
cOlltruct, PropoBlJd InllrlJlIHud COBtH for thlJHU ILlJmB did not oceul' unLlIllulItlun Pl'uBlJlltlJd
ulllnyolcu. und hilling, wull ull-IJI' thlJ SllhllUL1.11ll 1ll0YIJd InLo lhlJ hOlllIJ,
40, 13y prlJHonLhlH InyolclI. to LhlJ SChlllJt1.IJH l)'ol1lLllll1J lo lImu, without un oYlJrull
Ilgreemont to modifY thlJ LIJI'mll of I.hlJ BlIppllJllllJnLUI AWIJIJJl1l/nL, und wllhout uny
ngreement DB to now work ond nuw COllLH, thlJ SlIhulJt1.lJlI cuuld not IJVIJIl kMW thut thu
torm. of thl. portion of thu contruct WOl'lI bulng Illodlnud untllull bill. WllrlJ In, und they
could .eo tho oyeroll cOBt und pUrpOBIJ of lhlJ bill 1I , BottB uclmowllJdl(lJd thot the rucup
of In vol COli rellltlng to the BuppflJllluntol Agl'lJumunt, foulld ut N, 21,2, conBtltuto hlB own
working documontB Bnd thot thuBu were nUYUl' lIhown to BchulJtz,
41. With no lIuch ugruumunt to modifY. 13uBlIul1 mUHt b'j dunlud the $22,278,04
which thoy clulm ut 'l'lIb 13, ullHoclutud with Incrcllllud chllngoB to the Supplemontul
Agreomonl. 'rhlll omountlB u1Bo well In UXClJlIB of the 10'.f devlutlon limit,
D. Ml.louBtlon of the HODle.
42, A. contrnctor, BUBtlnn WOB rOHponlllbl1J fOl'locutlng tho homu on tho Schuetz
propllrty, BOlltlun mllltuklngly locuted thu homu on LhlJ proplJrty, ullcroullhlng on the .Ide
17
lIuthUllk 1I1'UU by IIflPl'oxll1lllLIJJy BllllulJt, HUll 1I111'YIJY, DIJI', ~:ll, 17,
43, At thlJ L11l11l Lho IJnCl'OlwhlllllnL Willi dlllCI)VIJl'IJd, lhlJ rOOLIJr6 hud uJrlJudy bOlln
plJurud ulld lhu hloclt fOllnduLlon wlIllll WUI'U noul'ly cOlllflllJlo,
-lot, Upon IlJumlng I)I'LhlJ pl'llhlolll, HchulJ~1. Inlllully ~llltlJrJ to lloLllIthut ho wontlJd
thu h01ll1J built III ILlI ol'lglnul 11)('uLlon, JIIJ lhon UHl'lJlJd with BOLtN, lit tho IJnd 01'
NOYlIIIlbuI' UlU15, lo lIuolt U YUl'lunco, ulll)wlnH lho uncl'ouchll1unt.. If Uppl'oYlJd hy thu
'1'ownllhlp, Lhc homu would conLlnuo In lhlJ "UlI hllllL" 10cuLlon,
4ll, BchuUl1. WUII c'JI1comlJd lhut Lho 1'lll1lCuLlon 01' lhlJ hOlllo would UIIUlIlJ It to look
ull' clJntol' 011 LhllloL, 'l'hlJl'ul'oI'Il, hu und BOLlll UIlToud LhlJ Il'UI'Uf{1J1I would blJ UnlllrB'od, ut
IllI COBt to SchUol1.,
40, AdYIII'II0 IJffllCLlIlll' thlJ mllllocllLIOIl or thu h01ll1J wlJrlJ thlJ followlngl
11, A IIlgnltlcullt l'oducLloll or l'OUl.' YUl'd lIPUCU,
b, A VIJI'bul lILOp wol'lt ordUl' WUII IBlIuod by LhlJ '1'ownBhlp utthll IJnd ol'
NOYembor lIlDO und COnHll'Uction Cllll1l1 lo u COIl1(lIOLIJ Btop unLIl on or ubout Docomber
21, 1996, ofior npproyul of Lho yul'lunco l'uqlltJlIt WUlIl!'r'lnllJrl, gx, 21.
C, SchulJt1. Incurrod 1I111'Voyilll( cOllLlIln conllllcLlon WILh LhfB u(lpllcutlon, for
the profolllllonull1orYlcoll 01' Curl D, 1301'1. 'l'hlllll/ COBLlI LOLul :$1.50,1. Ex, 18,
d, 'l'ho 101111 of un opLlon 101' U glll'ugO IlI'OU In Lhu bUllllll10nt bllCUUlIO tho
home III too clollo to tho lot IIno, BUlILlull hillod $1000 1'01' U lItool, ruthol' thlm wood
lIupport In tho bONCll1ont. to ullow for thill o(lLlon, which now doclI not lIXlllt.
E. Structurlll Dcfccts,
47, According to BUlItiun witnllBlIllll, ull ollginllorlng ulld dlllllgn work for thlll homo
woe perrormod by Buetlun, )lI'lll1orily through Botte,
4B, Bottll tllstfl111d ho hUll 110 trulnlng 011 UIl cngineor and that thure uro no
111
elllployuolI 01' lllllltlun wllh un)' lIuch ll'ull1ll111, lllllL,'ulnlnl( In IlUI'plJntr)' und homu dUIINTI
III pl'hnlll'lIy thl'ul.lllh IJIHhlJ-jlJb 1J1IPIJI'IIJI1uu,
~O, .ll1llk UrlJgun lUBU/llJd liB u Pl'llrlJBBhmllllJnll"lnuUI', IIIJ wllllullllwud tll WILIly
UI IIn Clllpurt In Ill'UllturullJnlllnlJlJl'lng, IncludlnK l'IJBldlJl1t1l111l0nllll'uutlon,
/lO, In IlroHlJn'1l uplnlon, LhlJ HchulJl~ hlllnlJ hlllllhl/ 101lowlnH dol'uctlll
u, 'l'hlJ pOBlN lluppol'llng LhlJ l.hlJullllnlhlJ hlllllJll1l!1nt 01' lhu HYlnlJ IlllIlUClol'
tho hOlllu UI'Q undul'l'utlJd, 'l'hllY UI'IJ l'utlJd to ClIl'l'y 10,000 puundlll/llch und Blllndlll'd loud
uuluulutlonll Ilhuw thut LhlJY mUllt hlJ rULlJd UL II Illlnlmulll 20,000 pounds uuuh, HI/plllr
will rllqulru vlthul' thutLwo ll101'1J pOlllll hlJ InBLulIlJd, bULwulJn lluch of thlJ cUl'runt postB
und tho beum IJndll, 01' LhutthlJ UUl'l'lInL pllllLlI hlJ 1'lJplucud hy propul'ly I'utud pOlltB, In
IJlther eyent, hu tUIlUnud lhut thlJ rlJpuit' will ruqult'lJ nlJw loolurll to bl/ pOUl'lJd, mounlng
thot u Bquure or the bUBol11ont /lOlli' will hUYIJ to blJ cut UWIlY, In ol'de.' for thu pOBtB to be
properly IlUppol'tud ut thu ground IIJYol. IIIJ 1'lJUOltlllllJndlJd ruplulllng thu currllnt pOBtBln
order for the bnBol1lont LO ulIow for wide lIpUClJlILO l11unlJUYlJr vohlcleB, tructor., ond tho
lIkll,
b, 'l'hll wull of thlJ husoll1unt, fuclng thu BtrOlJt, IB not Btruclurnll)' Bound
und 011 of thu wullB uround thl/ homo nlllJd LO hl/ pl'operly drulnud In ol'der to protoct
ugalnBt Btructurul decuy of tho block Willi, und lJyentuul doturlorutlon of the wullB, Thill
will require 1I01ll0 typo of rlJlnforcelllont of Lho wullllnd It will requlrll dlllg!ng uwuy thv
oarth Illl'Wnllt ouch of the WUllll, In ordcl' to Inlltull proper drulnB und lItonoB which
fucilltato propor druinullo, 'l'hlJru IB uluck of Itlllulutlon und wutllr roplJlloncy throughout
the foundutlon,
c, Ex, 66 contulnB p, 31 of the CABO IltandurdB, llroll'on und Stout tOlltllllld
that rhe Council of American Bulldlnq Officl!}IO (CABO) book, 1902, ll'oyerned South
11)
MlddllJtun 'l'ownNhlp IJIJIlIl"'Uclloll lit Lhu LlllllJ thlJ HllhlllJlV, h01l11J wllllllllnBtrllllLud IInd
thut thu Btundurdll 1IIJt flJl'lh ut II, III l'Ullulllllld hllllllllllJllt wull Cllllllll'uutlun, lll'lllllln
tUlItlnud thut thu .tundurdlllllJtlol'th Inlhlll chlll'l"1J411h'lJ LhutlllYlJ1l thu lwlllht of thlJ
bllllllllllJnt WUllll, und thlJ dllJ1Lh of IJxLlJrlol' nil Ul(ullll1t lhlJ woll. (lJlllllllJdlnlllllK fllut III
muny IIrllull), thll CABO lItllndul'dll 1Il'IJ not IlllJt by 12" thlcl( hollow corlJ block
conlltruutlon, but IllUlll blJ IJlthlJr Bolld 1llll1l01ll'Y cOI1Bll'UCLlol1 01' contllln Btelll
rlllnforcul11unt und grout. 'l'hlB tYPIJ of ruln'hl'ClJllllJnt douB not 1J1lIBtln Lbu.1J wulI., und
lJyun tho pllullturllllupporllnllthll Illuln l.hlJlIlll undlll' Lhu hOll1o IIrlJ hollow.CUl'U,
d, 'l'hll wull. Nuppol'L1nlI thu 1(/lI'UI(II dlJcl(lI uru 1IL1'ullLUrully unllound, Brugun
Illude II druwlng uf thlllltolJll.hlllllllllllupportlng thlJlIll dlJc1ll1, lit Ex, CIa, Upon In.poutlon,
ho found tho l.blJUlnll rOlltlng on hollow,cllrll CUl11IJnt block, Block lIupporUng the.., I.
bOUllllll11UBt hlJ JllJod WILh 1l10l'tUI' und lhurlJ IllUlIt hu .'e[nflll'clng bUl' (rubur) In thll wullB,
It IB not pOlllllblu to POUI' mortur Into thuBo wullll now thot thlJ COl1l1tl'uctlon IB compllltu,
Thill problllln lllmudo WOrllU blJCOUllU 11011111 of Lho I.blJul11l1 urlJ too lIhort und lilt on block
which hUll belm cuntlllJYOl'od outBlduthu plunu of thlJ wull, Ho churucturlzud thlBllI VUl'y
unllound, Addltlonully, hlJ notod Lhut all of tho l.hllUll1l1 UI'II rClItlllg on ono odgll ol' t,hu
block, ruthor thon huYlng thlJ wlJ[ght dlBtrlbutod unlfol'lI1ly oyer thlluntlre block, Thill
plucelltoo much of the wolght on only a pO.'L[on of thlJ Willi, HIJ obllervod U 2x 12 bourd
lIhorlng up the wull undlJr guroge # 1 und ho conllldlJl'lld thlll u tomporury lItructurul
Holutlon to tho fuct thut thl. wullIII Inudoquutllly BupporLod und conBtructud (photogruph
114), He obsel'Ved crocking In one of the foundutlon wllllll, which he Iltoted BhOWIl
evidence of lIuttlement, due to thlJ fuct thlJ cruck IB wider ut top thun bottom
(photogruphs 122 und 123),
0, Tho rubur within tho gurugo docking und the corrugutud motul decking
20
Bupportlng tho cumont IB InlldIJ4uulU LO BUppOl'L tI,u JlIJOrH, Aucordlngly, In hi. opinion,
whllo tho !.bUUIIlII urlJ lIufYlcllJl1t to hUllr tho wIJluht1lf thu deukB, the concrlltu dUllkll
thumllUlvlJlI lIrlJ not conlltruulod In u lIl/.lnlllJl' whluh UIIlIUrlJlI thlJY wllllloL COllllPIlU 0"
deturlorlltu, Ful'ther, hlJ Btulud thut lhll pOl'Lhltlof Jloor lIpUI\U undlJr llUl'lIgl1 N 1 which
III IItonll, but not U clJnlJrlJtlJ 11001', IIlUBt hc PllUI'IId with ul1ool'ln ordor to hlJlp kuup the
wulIl\'olll buckling,
01. Brollun'lI opinion III thlltlo COI'I'l!UlLhll duJlullJnllllJlIlnLhu llurallO dlJuk dellllll1
und IUllk of BtrulJturullntlJgrlLY, thlJ llurugllH will hUYIlLO hlltorn down ulld rlJbullt, HIli
opinion IB thut thll Cllllt of COl'rlllltlnl( thll gUI'II1111 lItrucLUl'lIl1 IInd 01' corrolltlng the other
probhllnll dOBcrlbod ubOYIJ will bu $100,000,
F. Defect. and Dofil.1lonolo.ln tho HOQlo Do.I,n and Con.truotlon.
02, Vllrloull doflJctH oxlllt In Lhu conHll'ucLlon 01' thlll hOlllu, ulIldo from the
lItructurl1l pl'oblolllB dlJlIlll'lbcd ubovu,
63, DelbetB und dlJllcllJncllIN ut thlJ hOlllu IIrlJ IIlIted In thll AprlllD06 "punch 1I11t"
l'ound Ilt Tob (I, BottB mudo thlllllllt und hu LelltlJlud thut not ulI of thollu Itomll woro
orldre".od by BWltlan,
154, Schuotz Bent tho lettor found ut Ell, 70 to DUBUun on ,July 16, 1906, In
udvunco oftho preHunt lIt1gatlon, dotolllng Lhe yurloull dollclencloB ut tho home, Bottll
telltllled thut Bastian noyor rOllpondcd to thlBluttlJr, Inatoud, BOBtlan roapondcd by Illlng
U Compllllnt more thun u month IntoI', on AuguBt 23, 1906,
/55, Botts admitted that thlJ doeumont 130atlun presentod ut the end 01' the trlul,
PI, Ex, 3. WOll tho Ill'llt time 13llstlon had rOllpondlld to SchuetzeB' written und ellprellBed
. concerns about vorlous dollclencluB with the homo,
66, Schuutz testllled ho mudlJ mnny Yel'bul nnd wrltllJn attllmptll to got BOlltlnn
21
tll uorruut dlllluhmclllN, IIl1d Lo HilI, IlIl~LIIII1 to 1I11~UrlJ hltllthllt thlJ hlJlIlu WIIN lItruutul'lIl1y
Nuur.d, l30lLN tlJBUlllJd thlltl'uPllh'N wurlJ notllludll IItLhlJ hOIl1IJ, hUllllUBIJ SllhulltV. told
UUNthm not to rlllU"11 lo thlJ hOlllIJ, !iuhllULV,lJlI' IlltLIJl' lit /Jul', 11:11, 7n, p, 11.1, lItUtulI thllt
BUlIllun wun not to untlJ,' thu prulI1l~uN ul'ILII Wl'llllJll ullrlJlJlI1l1nt Willi llludlJ, liB to how
llulIUul1lntended tu IIddrlJBlI thl) YllrloUlI dllJlcllJl1clllll, BoulI ugrlJU~ thut BUBUlln nllyur
rUNpondlld to thllllutlul', 'l'hllrlJflH'IJ, UUBttun cunnot now BtllllJ It Willi not 1I110WIld In thlJ
hOllle, Nlnclllt fulllJd to uddrUlIB thu YUI'IOUB pl'oblllll1N with lhlJ hOll1o,
07, IWKur ,I. OllllJll, II Prol'lIBNlonlll ~;nf,!inlllll', WUB ullowlJd to tlJ~lIry IIN Ul1lJllplJrt
In hlJlIlu InNpUUUlJn, IInd p.'lulnll rllpull'N tu hotllll 1l0llHtrucLlol1 dIJfoCLB, HIli rllllUmlJ lB
found lit Ex, 02,
I
I
I
68, 'l'hu problllll1l1 wllh tlllJ homu, IIl1d Lila dollul' UlllountN to corl'llct theBe
problulIlB ure lIBtud In OINon'lI ItlJpol't, Dol', ~;ll, (lU, IWrll"IJIICIJN In thlll rllport to
photolP'uph numblJrB COrt'lJBpond to tho phOl.ogrllphll found in DlJf, Ex, 71.
09, Without rIJ8tllUng thlJ conluntll of this ItIJPOl't, lhlJ Dofllndunts highlight lIUIllU
polntN which they blJlIoye rlJ/llJct thlJ nUll1I'1J und ulltllnt of Buallun'B dllfectlye
workmonBhlpl
0, HumB lund 2, p, :I, uddrlJslILho fuctlhutthlJ concrlJtlJ drlyowuYB weru
conlltructud Buch thut they Btop lIhort or tho Btl'lIlJt, und contuln lJI'uyul for 0 numbor of
feet, They olso contuln ImporflJctlona rOllulllng from poor workmullllhlp,~
b, HlJm 6, p, :llIddrllllBoBthlJ procust concreto 1'lItalnlng wull udjocent to the
homo, which neods to bu ruplucud, It III Btructurully unsound, and 18 ulruady lIhowlng
I Nickel also ellprened the view that placement of l:ubble
buried on the property, as seen in photograph. 11 and 12 i. not
standard praotioe, and oan be Qllpected to result in .ettlement and
irregularities of the lawn.
'I.:.!
ulgnll 01' bhlltlnu, ~IIIJ phlltOlll'Uphll no . 11211,"
U, 'I'hlJ brlcltwllrk of lhu outBldlJ pllllll'B IN llddl'UNlIlld ut ItlJln 0, LMtu
Ilonlllldlld thut ut 10ulIt unu 01' thlJ pllllll'8 III UBltllW, but hll PI'llPUBlJd no florl'llllthm of thlJ
prohllllll, In uddltlonto hlJlng ulIltlJw, und out of'ullHnll1lJnl, OIBon rlJpllrtu thllt tho pllluru
urll ulopplly conBtruutud, IIU cun blJ BlJlJnln phOLUIl'I'lIphllllll, 34, ulld :10,
d, ~'Inluh IIrlJ lound IlIthu plUIlR UL p, luf f:ll, 2, '1'hllY uru ulRo Ilontulnlld
In 11 Muruh 20 dl'uwlng by 130Llu uL ~~x, 40, Not only WIJI'IJ LhlllllJ Jlnlullll10t Inlltlllled, but
Pllllntlffil dJd not IJYIIII cl'udlL thlJ ILUIIl In Lhul1' 'l'uh 11 1'lJpurt 01' PlulnWrll l!:x, :I,
prllllllntod ut trll1l,
e' ItlJlI1 14, p, (j uddrlJllHIJB thu f'ucL thutLh!!I'1J III'!! lIhlnl(luM II1flllllng, thut
rldgll Yelltll uro hnpl'oplJrly InBtulIlJd, und LhlJrlJ WUlI Itnpl'OplJr nulllnl( Into the 1'001',
PhotogruphB 47,40, und 621J1Ipllclully dUII10nBLI'ULllUl'llUll whlJrll tur plltchlng Ilod cuulklnll
hUB beon used to nil holuB ulld rlpB, UUlItlull und SChUIJLZ wlLneBHell ulI conJlrll1ud thut
thl8 IB not un ucceptublu muunll of ruol' r!!pulr, SubHtuntlul ropulr will be needod to
UB8ure thot tho 30 yenr lIhlnl(llJB which wlJre BplJclully ordorlld for thlB hOlno cun bu
uxpoctod to IIyO out thoir Intended dUl'ntlon,
· Botts and Bastiall testified that this blook wall was
requeated by Sohuetz. Sohuetz denied this. Aside from this
oredibility dispute, Bastian testified there should not hav~ been
a oorner in thia wall, Bince thia poses design problems and he
could not explain why the wall hall a 90 degree oorner.
Additionslly, the wall is staoked four blocks high in plaoes, whioh
Brogan and Olson testified was too high for a retaining wall.
Brogan testJ.fied these block ar.e not intended to be ulled for this
purpose at all, but are for ulle as temporary weights, to assist
during oonstruction. Accordingly, the oredibility question of
whether the block were approved is moot, oonsiderillg that they were
installed by subcontractors of Bastian, in an unBound manner.
Schuetz contends that this wall was installed because of Bastian'B
poor design work, causing the garages to be at a higher level than
originally intended, BecaUBe the lawn had to be capable of being
mowed with a riding mower, Bastian proposed this wall as a means of
avoiding too much alope.
:.!:l
- '.
f, Olllon IInd Nlcl(1J1 tlJBlIlllJd Lhllt thlJ uhllllnllY hud bllU'l hnpropul'ly
protl/Q~l/d uilllnNt wutur InJlltrllllon, utLhu chhlllllJY Clip IIlld whlJl'u thll nll.hlni CllllnlJutN
thl/ Ilhlmnll,V to thl/ NhlllglulI, 'I'hl. rulllLIJ. llJ ILIJIII 17, I)_ II of thlJ Olllon Iwport,
PhotOlP'lIphN 04.09 dlllllonNtrlllu thllt pl'llplJr HtlJp JllIlIhlllll WUlI noL ulIud IInd photolll'uph
llO lIhuwI thut lhu Clip colllJclB WlltlJl' IIlld will dlJl.urlol'llllJ II' not rlJplllrud or ruplllclJd,
NIllkul dlNIlUlIlIud Ex, 42, which pOl'll'IIY. prlllml' BtlJl) JlullhlnK III, u chllllnlJ,V IInd hll
tlJBUJllJd thlll hod not bUlJn donlJ, All 0 l'ulIulL, Lhu chll11nlJY I. cu.'rlJnlly IlJllklng IInd
eyldencu or thll IlJuk could blJ Buun dul'lllK thlJ WUIl('Llll'ough bufol'lJ trlul,
g, Itoll1 21 dlllCUBIlJlI LhlJ lucl( of' fult pUplJl' blJtwlJlJll cour.lJ. 01' block, '1'hlB
WUlI U Ipocll1u roqulllt of SChUIJL~, cOlllulnlJd In LhlJ plullB, ~:yldlJnclJ of dOll1pnlJNN III thll
wullB IN referonclJd In Olllon'lI rIJpOl'L IIl1d could blJ IlJlJn ut thlJ wlIlk.through, SIIU
photogruph. 02 . 1.16,
h, ItulIl 211, p, 7 uddl'lJIlIlJlI thlJ fuel thut thlJ gultlJl'lI ut thu homlJ uro
hnpropurly InlltulllJd, SchulJt~ LUllLllllJd hlJ 1I1J1J1I woLlJr flowing OYlJr thlJ guttllrs, 'l'hlJ walk
through 11l10wod ob.ervutlon of' lock of UllY piLCh on 1II01lt of thlJ guttorB, 'l'hlll rlJqulru~
the gutterB to bo "lJlllOYlJd und rulnllLIIlllJd, AIBo, Lhll drulnugu frollllhu gutters, In ordur
to rlJlIloye the woter from nOliI' LhlJ h01ll1J III not working und wlll.'oqulro lIublltuntlul
work, Mr, Stout, frOIll tho 'I'ownllhlp, tlllltllllJd thutlhlJ Townlhlp dOIJ. not purmlt thl.
type ofdrulnllgu to thu proplJrty IlnlJ, I,Ind thullu IIneB will nUlld tl) bo roloclltod, 1I1nCII thoy
drllln to the edge of thlJ propurty,
I, ItolllB 20 und :10, p, 8, und IllJlI1 44, p, 10 HpUllk to thlJ lock 01' uny Blope
In the gurugol, bUBulllunt, or outBldll porch, 'l'hlJrlJ WUB no dlHputlJ thlltthu plunB clllllJd
for a 2 percont Blope of ulllhuHIJ Iloorll, Botti did noL duny thuL thurll IB no 1I10pIJ und In
fuct ho tlJBlIllud LhlJ porch IlopOB Lowurd Lho h01ll1J In lI0llllJ pluclJH, GIllon und Nickol
21
tlJlILlllod thuy muulIul'lJd for II Nlopllllnd found nonlJ ollllny 01' thulIu JlOlJrN, All U rUllult,
wuler comUN Into thlJ blllllJl1lunt urlJllllnd thll IlUl'UHllB, Addlllonully, uny wlIlur orlglnl1t1ng
1)00111 In.ldll tho hOll1lJ, WhlJlhllr 1\'0111 u wul CUI', u llJuldnll plplJ, 01' uny IJthllr lIourcu, will
.It, ruthllr thlln drllln, I:Hundlng WULUI' cun bu BlJlJn In LhlJ 1l0rruBpondlng phOlogruphN,
J, 'I'uBtlll1ony Willi pI'lJ"lJnted 1'lll(UrdhlllLhu curJollI, '1'hIBI. uddrulIlled ut ItlJm
37, p, I), Suhuutz tlJBtll1lld thlB Willi wOI'I~lJd OlllllJYlJrll1 L1I11IJB by llllllt,lun Bubcuntrulltorll,
NlckultlllLllled lhut thlJ unit wUlIlmproplIl'ly lnlltullud to hlJuin with, Blncu It IllIpplll!d
on top of thll BhlnglllH, und not I11111hIJd to lhu lIhlnlllllll (BIJIJ phlltogruphll 100 und 101),
Ropuh' wOI'k WUIl totlllly unllcclJptublu, rlJlIultlllllln 1,IIlNIIlhLly preBuncllorllllrewlI und nuUlI,
UBe of trim ploClJlI thut UI'U not IJYlm lhlJ HUIl1IJ 1I1~u, und thlJ conNtunt rl1lllng of the
wuother yunlJ on top (1I01J photogt'llphB 04.UU,)
k, Itom fl3, p, 12 uddl'lJBBlJ1l LhlJ pl'obllJl1lll with tho lIhowlJr dOOrN, 'l'he
mnllter bedroom lIhowlJr dllOI' wUlIlmproplJrly InBtullud, BO thl1t wullJr Ulcupell through tho
lupplng 01' thll lwo doorll, AlBo, thlB door IB LOO lIhort, I'cqulrlng onlJ to duck undllr tho
door to ontlJr thllllhoWlll', 'l'hls Itcm Willi II Btud In tho 'rub 9 punch llBt (Item 9) und uguJn
In Botta' noto to Schuotz, doted Muy B, 1000 (J~x, 41), but neYllr rUllllJdllJd,
I. DllBplte tho uboyo two rofcrllncllH, IJYlJn lit Lrlul BnBtlun lItUl fl1l1B to
uddrOllB tho noed to rllpluco thu mUBtor blldl'ootn Bhowcr door, whcn 13nBtlon proBentllltB
propollod rellolutlon of probloll1H, ut PI. Ex, :],
tn, Tho nood for 20" high lolluts WUB dUll to thll ruct lhut SchuotzoB' mother
III dllloblod, ond hll wuntlld tho homu ucclJHHlbl1J to hor,
n, The reOBon Schuet~ wontod plywood, ruther thW1 uny other typo of
sheathing for roof, 11001' or wnllBllI thut ho und hlH wlflluro In poor hoalth, ho Bpent 0
great deal of effort Btudying up on thlB Hubjoct In Gcrll1uny bcfore contracting with
25
IJIIMlIun, und hu WUll YIJI'Y lloncu/'nlJd IIbout ~hll hlJul~h IJll'uutll ol'thlllllonMlrulltlun II1l1turlul.
ThlM WUlIlI1l Imporlunt ltlJlIllo him, OI.CJnllJ.Uflud lhut It III not UllUMuul for lndlylduufll
to requult thut U bulldor UMIJ plywolJd only und Lhllt BOmlJ bulldurl u1ltuully udyurUzlJ thl.
olument of thulr homlJlI, BchulJLZ LlJlIUJllJd hu did not, IInd would noL ugrlJe to u
modlllculllJn on thlB Ilulll,
60, Thu totul CONt of lI1uklng thu yurloull rlJpulrll NlJt forth In thu Ollon IWpol't
(Dur, Ex, 03), ullllludlng ItlJll1B dlJ~crlblJd blJl(Iw, IB IIl'unglJ of $102,210. $W3,180,
61, Vurlou. ItlJlI1N 1I0t furLh In thll Olllon rlJpoJ'l uro not In\lluded In thu uboYU lolul,
for rUlllonl delcrlbed below, 'l'hlJ Ilem. notlncludud urlJl
0, Alruudy contulnod In Burye)lor'lIlJllhlbltr Ou,
b, Alreody \ll'udltod In PI. Ell,:l1 Db,
0, Item 21, lack ofrult pupel'. IBlncludud ut $200 for u dohumldlller, rother
thun tho co~t of InBtulllng Cult peplJr ($0,000.$7,000),
d, A1roudy In 13rogun cOllt culculetlCJn for lItructurl1l workr 28 and 65,
u, A1roudy contl1lnod In Carr calcullltlon for InBulollolll :12, 06, 60, 80 und
82,
f, Not Includod: 80 (whirlpool rofrlgorlltorj 0 rofrlgurator wOllsuppllud, but
not the ono Ipecllled),
02, H, Edwnrd Cnrl', Jr" ProBldent of EIC, Inc" te.lIlled 01 un ullport In home
lnllulollon,
63, He conducted two typos of uudltll ut tho homo, One I. coiled 0 blowur door
oudlt, which 111101.01 the uCluolnmount of nil' ponutrlltlon Into tho home, The othor II
an Infrared Bcon uudlt, which nlBO.lel tho quullty of InBulutlon,
64, The relult of thli~ uudlt, reported at Ex, 01, WUI to conllrmthut therlllB too
20
l1Iuuh ulr plJnlJll'llthlll Into thlB hOlllIJ, duu LO luclt 01' lll(htnllllll ut door~, wlndlJwM, und
olhlJr IJntry pullltM, Mr, elll'" ohNu.'vlJd YIII'loUlI YoldBltl thll wlIlIlI, IIlld ul'UIIM IlIllklnj{ ullY
lnllulutlotl (MUll, lJ,g" photoll"lIphB 141.11), Jlu 1l11lO dutlJlltud lhlM lhruullh thll Infrllrud
leBtlng,
(115, 'l'hu tlJBt reMultll BhowlJd Lhllt whlllJ Lhll PlJtlllB,ylyunlu Building CodlJ (Allt 222)
1'lJqulru. un u1r Ill00trutlon 1'lItlJ nOL to 1I11cIJud 60r,i, LhlJ Inllltl'lIt1oll rlltlJ In thlM home III
oo~, tmI,:.I6 Pu,Q,S,A, ~ 7201 lit NUll, und 1lI Pu Codu ChuptlJr 30,
00, Cllrr NluLed lhutLhlJ COBt of rllll1lJdylnlf lhlJ Improper InBulutlon will rungo
hetwelJn $2,000 und $6,000, with $1:100 lfj $1,000 ofthlll to Inltlully dlJtermlne tho elCtellt
ond location II r)f the prohloll1B,
G. Apln-oJluJ of Hmuo,
67, StOYII BurrlJtt tllBLlnlJd UB un 011 pert In thlJ yu1ulng of reNldllntll1l proportleR,
Ho 1M highly IJllperloncod UlI u ruultor und upprulNor, und hUll lIluny certlncutlonll,
Including bolng u PonnBylyunlu ClJrllnud Ol'nurul Apprulllor,
08, Barrott conductod two llppl'ulBulN, Ell, 00 contalnB un upprulllu11n which It
III alllUllled thut no lItruclurw dlJl'eclN elllllt UL thlB hOlllIJ, Ilnd thut the ItomBllllted under
Additional CommentB, ut p,O, huye belJn corrected, Muking thelllJ llNBUl11ptlons, Barrett
III of the opinion that I,he home und lllnd huye u murllet vululJ of $220,000, Del', Ell, 09,
69, AlIlumlng t.hat tho hOll1o hUB BtructUl'ul dlJfectl and Is an "OBis" condition, he
expreBBod tho view thut the murket yulue IB $100,000, BUYOI'I would domund thot upon
Role of this home, any Btructurw dofectN Il1UBt havo bOlJn corrected, othol'wllle, tho salOl
price must bo Ofl'lot, dollar.for.dollar, for tho COBt of lItruetural repull'8,
70, The lund upon which this homlJ IB buill WUI purcholed IIpprolllmotll1y eight
monthl before conlltructlon begun, at u cost 01' $:1:1,500, Ex, 1.
27
II. Liquidated Danlll,el .. DalUan'. Dolo)' hl OOlllltruoUOII.
71. 'l'he conL"IIOL proYldlJd lill' $IJO plJr duy dlllllOlllJN, l'or uyury duy In whluh
Uollotrulltlon OllCUlJdlJd 1I1x 1lI1ll1Lhll /)'om LIlIJ dlltlJ conBlrlleLllJn conllnlJlleod,
72, Both tUlItllll.!d LhllL C1I11NlruclIIlII hUKun HlJptlJmhur Ii, 1I1111i,
7/1, 'l'u dlltll, by /JOltN own IIdmlllBIlln, IInd 1'lJrllr.'lng LO 'l'llh U, clmNl,'ullLlIlIl IB nllt
yot completll,
74, 'I'll doto, no ocuuponuy pllrllllt hUll hlJlJn 11IBUlld lor thiN hOlllu by Suuth
Mlddll1ton'l'ownohlp,7 13uBLlun WILnlJoNIJB uclmowludglJd thut thlJY did notlJYlJn Illflll'lll
Schuutz of tho 'l'ownllhlp IlJttlJl' to 13uuLlun IlllIllUN, dutlld AUHUlIt 15, 1000, In whluh
BUNtlun WUlIl10LlnlJd lhot It WIIB I'lJqulrlJd 1,0 conLUCLLhlJ '1'ownBhlp fill' 0 JlnllllnupoutllJn
und thut fulluru to do BO wOllld rlJNult In II cltutlon blJllll!' nllJd blJfol'u U Dlull'lut .Juotltlo,
UUlItlun WllnlJlIBON ulBO ueknowllJdl!'lJd thut thlJY did 1l0LIJYIJIl contuutthu 1'ownuhlp uo u
rOlult of thlo 10ttIJr, Del', Ell, 21.
70, To dutu, BUlltlun hUB not proYldod thl.! SChUlltZIJB with II wurrunty on tho homo
Itllell', which Is to bo donulIpon cOlllpllJtlon,
76, No wltnuBlIlJs for Buutllln 10Ntlned thutthlJY oyor Bought ugreomerlt, or thut
thuro WOll ony Ogl'uol11ont to modify In ony wny thu L1lllo frUI1l0 or pelllllty proYlolon 01'
thlll contruct, TherlJ WUB not lIuch Ugl'lJomunt,
77, On Dllcel11bor 6, 1000, 130tts prolllJntod u notu to Schuetz, Inl'ormlng thut tho
homo would be ruudy to 1ll0Yllln Morch 15, 1006, Ex, :17, Tho llloYo.ln wuo In foet not
UYBlloblo until Muy,
78, ACl:OrdJngly, us of the duto ofthoBIJ Pl'opollod OndlngB, dolny dUlllugeBumount
1 The temporary ocoupanoy pormit, Def. Ex. 68, is good for
only sixty days.
28
,- -
tu 042 dUYR, ut $:10 pUI' dllY, 01' $111,200,
70, ~~YlJn II' thlJ Hl!hulJt~IIB' I1l'lIL dlltll 01' ocuuJlllnuy wlJrlJ to hu UlIlJd liB 1I11lIJIIBUI'IJ
ordullluguB (U1Lhoullh thUI:OIlU'UCLlIJluclIlUB "COll1pIULlllll"), thll PllIlnLlll'ulllJl(lJlIllt 'l'uh 12
lhut lhll SChUIJL~IJB Illuyud 111 Muy 1, J !HIll, 'l'hlH 1I1ol1u would 1'lJlIUltl11 doluy dUllllIl(UB of
01 dUYll, uf. $:10 pill' duy, 'J'hlH lu UllllONt llXlICLly Lhu llull1hlJr uf dUYB of duluy In
conNLI'ucLlull cuuuud hy LhlJ HtOp WlJl'lt UI'lIUI' which l'UNlIlLUd f)'1)1l1 llUHLIUl1'lI 1lll1l1ocuLlon
of thlJ h(lI1lU,
1. L1quJduted DlIlIIlIK'1l1l ., Sl!lmlll~ell' OIlUlll11ll11lY of the lIoll1fl,
II, Incl'lldihly, IhlHLl1I11 c1uhnll IIquldlltlld dUIllUI(UH uglllnHL thlJ SchulJt1.IJB
blJCUUlIll thlJY l1loyud 111 hufol'u pUYl11unL III 1\111 IIn thu cunLrllct, uvun Lhoul(h Bottll
conllrllllld LhuL bllth Duf, EXH, a7 und au wUl'uln hlH Illllldwrltlng, ullllwlng' thu !:ichuut1.ulI
to "ll1oYlIlll" during Murch !lillO, und (!\Iun thulIgh MI', lluHtllll1 hllllHulf' WUH uwurlJ of Lha
'l'Ol1lpIlI'UI'Y Occupuncy pUl'l11lt IHHuud hy thu 'l'ownNhlp on API'1l1, LUUCI, DIJI', E:ll, 08,
13uBLlun lu 110t IJI1L1tllld tu llny Buch dUI11UgllH,
J. COllllcqUlllltllll D1l1I1l11ClIll.
60, '1'hu Bchullt1.UU huyU c1uhnud YUl'ioUB dUlJ1uguu which WIII'O U direct "IIBult of tho
yorlouB Ill'l!UcheH by 13uHtIUI1, SOIllIJ dUIllUl(lJlI uru ongoing. und thlJ umount would be
lIuhl11lttlJd If tho COllrL ollrceH Lo 1\lJld BUHtlun lIuble, 'l'hlJlIO Include counBlJ1 fOIJB, IJllport
wltneBll fueB, und COHtU of trul1ulutlon,
61. Other cOHtH which thu HchueL1.11H InCUITcd WU1'e truyel 1'01' lImeB lhllY did nol
lntond to comll to thu Unttlld StllLllH, bULLhllL thuy WU1'll forced Lo COlJ1e, due to problolnll
In BUlItlun'lI performunce of tho cOl1trucl. 10'01' exulllplu, IL Wt\S neCIJHHury to COlnlJ to the
Unltud StUtllll hlJCUUlIe of Lhll BLOp Wlll'lt ordul' uf the 'l'ownHhlp,
82, Dul', ~~x, 00 cOlltulnll UIl tLlJml1.uLloll llf truvel ':OHtH und dotulIs the trlpB which
2U
wllrllllpelllflcully cuuBud by lIuBtllln'lIlllJJ1,plJl'I'lJrIllUI1UIJ, 'l'hlJlIlI dllll1l1UIJM totul $10,801) for
Mill trlpll,
K. Plaintiff'. orror to llenlod)' 1)I'obloml,
81l, At thllond IJI' thlB trlul, lluLtll pl'uMlJntlJd 1'1. mil. II, pl'opoMlng tllll remed)'lng
of YlIrloUM probllJlnll, 'I'hll CUnllJnLB IJI' LhllllJlIhlhlt dl) nul MIJI'YU to llMlubllllh thllllollt 01'
remud)'Ing dlJfoctll Iconll'lIct brlluchuN) IItLhlJ h01ll1J 101' thu following rUUIIOnll1
u, 'l'he lllltllBlJlrcontulnB only II MIllUll flol'Llon ol'lhlJ prohlulllB ut thu homo.
b, It IB not clIJUI' how lhlJ COBLB urlJ llBLUhllllhlJd, 'l'hllY 1l10BUy IIBBUll10 thut
l3ulltlon wlllmultlJ rUflull'B, glYlln Lhut IllUIlY urlJ ut 0 or llullJ cOllt, 'l'hIB IB ul1ucceplllbllJ
ut thlll point, l3ulltlun hUB hud IllllpllJ Oppol'Lunlty LO lI1ultlJ rlJpuh'lI und rlJBpond to thu
SchulItzeM' conllornB on u thl1lJly bURllI, Not only hUYII LhlJY 1'1I1lIJd to do BO, but whlln lIrJIllU
ropolrll worlllnude, thoy only conllLlLUllJd u I\1rLhul' brlJuch, Buch 1111 with thllcupolullnd
the chlmnoy flullhlng, Atthlll point LhlJ IBBUIJ lllUBlIuBBlng dUl11l1glJlI for brouch, not onu
of u1lowlng BBstlun Bubcontl'rlctol'lIto I'ctum to thlJ h01ll1J to pllrforml\1rthor work,
c, SOl11e of tho RolutlonB fuctor In only U nOll1lnul cOllt, Buch UII $000 for thu
fullure to lIlope thc gurago, und bURclllont, 'l'hlJ fuct thut thlJ llBt contulns an Itolll of
$3,140 to repluce the concrotc undol' the pOl'ch d01110nBtruLUlI thlJ trulJ ellponllO, 'l'ho
porch concreto would be Illuch caRlcl'to rlJpluclJ Lhun touring out und rlJpluclng tho gurugu
dcckll or the bosement floorB, 'l'hu COBt URcd 1'01' thcMU ILlIlI1B IB BUBtlun'B orlglnlll COlltto
factor In thl. elltru, not lhe cOBt of rlJmlJdylng tho probllllll, If 13ulltllln hud fOl'gotton to
InstoJl the hoatlng BystOll1, would It prlco out thll rupulr cOBt us only tho orlglnul cost of
tho heBtlng Bystolll" One would IJXpoct not,
d, Somo of the solutions 1'011 to ucknowllldge the full scope of the problom,
For eXBmple, the roof probllJlI1 dOOR not just InyolYIJ BOlne mlnol' ropolr of tho ridge vuntB,
30
BhlnKlulI IIru torn IInd IIlIBNlnll, BUIIlU hllYIJ blllJll cUllllted, ulld thu rldUII YllntN uru
llIlprupurly InBtullud, OINOII'N rlJpurt IndlcutlJlI thul to propurly BolYU thellu pronlulllft,
NubatunUul ruplllr will nu nll~llllllul''y,
84, mY/ill ulldur thlB IIllnhnululllJmPI to uddl'lJlIlI the problell1l1, 13uNUun would
redulle tholr Ilontruut clulll1 by $10,4110 (not Illullldhlg thu lIluth error, ulruudy fuutorod
In by thll uciju.tlld Ilontructuul clullll,)
m. PROPOSIllD CONCLUSIONS OF LAW
1, '1'0 rlJllch U cOlltl'uctuullllll'UlJlI1llnt, thlll'lJ II1UBt bllu IlI1lllUng of the mlndB, 'l'he
purUeN contrulltuully u/ll'uud to hulld u h01ll1J for $168,1.100, 'l'hoy ulBo contructuully
ugrlllJd to u BupplomlJntul Agt'lJlJllIunt,ln thlJ ull10unt of $2/J,200, 'l'hlJ only chungo order.
ugt'lJod to by thlJ pUI't1I1B uru thll NlJyolllbllr 12, 1000 docull1lJnt for $9,868, tho Docember
6, 1090 nropluco ugt'ollllllJnt for $4,000, IInd the ,Yurd bl'lllkwOl'k for $1,900, ThoNe
controct. totul $107,81.111,
2, Whllo It I. pOHBlblo to Yllrbully ultlJr u wl'ltton contruct, llYon If tho wrl~cm
contrullt lIpeclnollthut It cun only bo ultlJl'od In writing, the purtlll. mUllt nut ngt'eo thot
ultorutlon. ll1uy be modo Yllrbully, All wILnO.BOll tllBtlJllld thoro WOH noyer Huch un
ogt'oement,
An ogt'ooll1cnt thuL prohlhitll non.wrlLtun 1ll0rUnCUL!<:m Il1UY bo 1I10dlncd by
Bubllequont oru1 ugrclJlI1unt If Lhc purLlcH' conduct clcul'ly lIhOWlI tho Intont to
wlllvo tho roqulrcllllJnt thULLhlJ IlIllCndll1cnLlI bu llludlJ In writing, ACCUWlll!iliJu:
v, OrfJ.Ollct COll1l11unlcutl<lnll, 1:l1l Pu, SUJlOI', lJa, OH A,2d 1261 (004), All oral
cOlltraot mod1tylnlllllll'lor Wl'\ttcll contrnct, howcvor, mu.d bo provcd by
clear, precise Bnd cOllvlnclng ovldcllCC, ellilcllrclldc y, LULhllr, 40a Pu, 212,
160 u,2d 208 (001).
SOll1enllt COlllll1unltv HOlpltul y, Mltchul, UL ul., 1M Pu, ':luplJr 188, UJ7, 686 A,2d 141
(WOO) (emphu.IB Ildded), ([n SOlllllrllut, the COU1't found ulllplc lJyldonclJ of ugt'oolllont
to modllY, Including minute. ofmooLlngll oftho cont.'uctlng purty, In which both portloll
:31
ugrulld 10 contlnuu with IncrlJulllJd work,lI11d UI'l!hltul!t'N fIJIJB WUl'U hlUl'lIUNlJd uccurdlnllly,)
WUlll1l1f Y. Ol'uzluno Comll'UCIUlll.~.. 1100 I'll, 4.16, lllO A,2d 81l UIl671 InYlllYlId
u dI.pule OYlIr II cUIlBlrucllcm CllIlLI'IICl, 'l'hlJ IIppUlIlllI'OBIJ IIN II 1'lJBult 01' thlJ IIl'unllllll of
DlJfondunt'lI P.'ulhllhll1"y OhjIJIlLlIJIlB, In IUYllI' of dufundunt, 'l'hlJ CllInplulllt ulllJlled lhllt
thlJ dlJl'undont InformlJd plulntllf "LhDt wl'lLLlJn W01'11 ol'dlJl'lI Bll(lllJd by him would not bll
rlJqulrud, IInd dlrlJctlJd hll11to plJrf'ormlhlJ IJllLl'll W01'11 WILholltLhlJ wrltlun wUl'k ordlJrll,
Informing plulntlll' thUllIPPl'OPl'llIllJ udjulItmlJntB would blJ 1ll{I'IJud upon lit u lDter dlltlJ,"
lIL, ot 447,
Ollly bllcuuRe the Compllllllt ulllJlllld Buch U Bpl,lclllc wulYl,lr of'thlJ rlJljull'lIl11ent lhot
chungeR to the l!ontruct blJ III writing, did LhlJ Bup"1J1111J COUI'L Jlnd thut thll orlll
lnodlflcullol18 could bu IJnforced:
'rhuB, IfwlJ UBlIUl111J thut Lhe dlJflJndllnt'lI uULhorlzud IIKlJnt Illlill'll1ed WugnlJr lhut
tho requlromlJnt fer wrluunllrdlJrll 1'01' I,lXLl'U wlwk WIJB bulng wuiYlJd, we lire thun
concerned only WILh u deLurmlnuLlol1 of Lhu qUlJlIlll1l1 1I11 LO whllthlJr purlllJN to u
wrltton contructl11uy ultuI' IL by un ol'lll undlJl'lIlUndlnl(,
UL. ot 447-8,
In flndlng thlJ ol'ul modlllcullonll IJnfol'cuubllJ, the Court BplJcltlcully hllld "thut
Oruzlono'sllgent Ilnd WUgrlllI' could legully COYUIlUl1t to wulyu 11 Bpudflc Bllpulutlon OfLhlJ
contrllet," l.!i. ut 440, In othlJr wordll, thu procuHlI hUB tWI) lItllpB, l~irst tho purtleB I11I1Y
chooBO to waive tho 'lontrllctuul rlJljulrel11lJnt thllt chunKoB bo In writing, SlJcond, It'lhlJY
do BO, tho purtloB muy unler Into orull11odltlllulloll8 ofthu contl'ul!t, 'l'hlJ flrBt Btllp of this
prOClJlIB Is not proBont In the InlltuntllulIo,
:I, F,yon If thll wrlttun contrulltB of thlJ purtluB l11uy blJ ultlJred yorbully, the
oIterutlonlll11UBt thUlnllU1YUlII11IJot thlJ IJlul11entll ruqulrlJd ofu contruct, HlJre, tho chunge
orden ofl'erod by BOBtlon do Ilot I11lJlJt thu8e 1J11J1111J11t1l bucDuNe:
II, 'I'he purtluN IlUYUI' I'uuched UIl ul(rlJlJl11lJnL to proclJed with Lhe work
:J2
conll'ulltulIllJllllm, und IIn II1ll0unt IIJBBLhlln Lhllt nll'lJlld)' Illlld hy thlJ l:!uhuutv,IJB, $:l0IJ,71i1i,
8, 'l'hu uounturlJlullll which thlJ HchlllJtll.lJlI 11111)' UlIBUI't, hllBUd uplln Ilrllllch Ill'lI
conlt,'ullthm collll'uut, IB IIlllltlJd In Lhllt lhlJ clullll IllUlt hUllr II 1ll'uIloI'llonllllty 10 lhlJ
uutuul rlJducLlon 1Illl1111'kIJt YlIllIlJ of lhll hOlllIJ, 1'lJBUILlllH 1'1'0111 LhlJ hrlJlluh, 'l'hll Ullllllllll
not ubllolutuly IhllltlJd to lhlll II III ou 11 t, hut IllUlIt hu 1'lJlINonllbly 1'II111tIJd 10 "lJdulltlon In
ll1urlllJt YlllulI,
"I:l ulIllJtI III 1J1I , UBplJcllllly If U contl'lIclol"lI plJl'l'orlllUnCI.l III dlJfllctlyCI ruthllr Lhull
InCOIllIlIIJLIJ, ILllI 1I1l1l0NlIlhlllLO pl'OYIJ LhlJ 101lNIIl vuluu LO thll OWIlIJI' WILh l'llUlIOIlUb11l
ClJrtulllLy, In LhuL CUBIJ , , , Lhll OWIlUI' CUllllBIlUlly l'llCOYlJl' dUll1l1HlJlI hUlIlld on thlJ
COBL to 1'lJll111dy Lhll dlJloCLH, IJYIJIl If LhlB MIYllN thllOWl1I!I' u l'UCOYlll'y HIlIl111Whul, In
ellCUBB or thlJ 10BB tu hlll1lJ1' hili' , , " IIILllI hUllUI' thULLhll "WIlIJ" I'UClllYIJ U 1I11lull
Wllldl'ullthllll thlJ uwnlll' hlJ IlndlJl'COll1plJnllutud hy hlJlng IIll1ltlJd Lo thll l'uBulLlng
diminution In Lhu IlHU'lllJLlll'lclJ of LhlJ )lrulll!I'lY," Annututllln, Modl!I'n HtULlIB of
\lullJ UB Lo WllllLhlJl' COllL of COI'l'llCtloll 01' 11lfl'ul'lJn'!o In VUIUll or Htl'UCtlJl'UB IB
ProplJ.' MIJUlIUl'll of DUl11l1UUlI 1'01' lklJuch od COllllLl'lIULlon COnl.rUCL, 41 A,L,H,4th
1:11 ~2:1 (101l1l)u, clLlnH RIIHLULlJl11lJnL (HllCOIld) ol'conLr.lcLB ~:J.\H, COl1111lllnt C (lU81),
Flltzer y, VIBhnl.lJ!k1, :lUU PU,SUPOI', 211:1, IlH2 A,2d 2:1, 20 n, .. (WOO),
It IB only WhUI'll Lhll cOBLOI' l:olllpllltlnL{ )lUl'rOI'IIlUnCU 01' 01' rUII1C1dylng LhlJ dlJflJctB
II c1eurly dlllPI'opol'thmuLIJ to Lhll Pl'obublllIllBlIIn yullll.l to LhuInJurud puny LhuL
damogulI will bl! mClIBUl'ud by thl! dHrul'uncl! botwllun thll mlll'ltot Pl'lcu thutthll
proplll'ty would huvu hlld wlthollLtlll! dCll'uCtB ulld I.hlJ 111111'lluL prleu ol'Lho prOpl!rLy
WILh thl! dlJl'octB, Allhough urtlculmlnl,( thu I'ull! In U BlIghtly dlffurClnL lI1unnul', LhlJ
COlll'L ucllnowludged Ilnd '<lllowud thu Bumu pl'lnclple In Cllldholll y, l,eb.Co,
Bulldlll'lI, II!!;" :112 PU,SlIplll' I.J.\, ,lli8 A,2d lillli (Willi), Wlll!l'o thu COBt uf
rllllllldylng thll del'uuLB In conBU'lIctlon IB lluL uh!lll'ly dlBproportlanllLu La Lhll
prohllblu 10BB In vllluu to thu iI~urud purLy, Ihu bruuchlllg canU'ucllJl' cunnot
roqulrll Lhut LhCllnJlIl'ud purtY'B dUIIlUj,(Ull hu lIluuBul'ud by tho dHrol'unco bOLwoon
thlJ Il1Urllot pl'lco of tho pl'UpOl'Ly wlLhout tho dufo,:tB und Lbo Pl'leo of Lhu pl'UpOl'ty
with tho dofoCLB,
DoulZlaBB v, Licciardi, :J1l0 I'll, HlIpur, 2U2, 1102 A,:/d OW, 010 OUIlO)(Hol'lJ, tho Court
round that u JUl'y could hUYIJ propurly dlJLlll'll1lnod thut un uwul'd 1'01' COBt or rupull'll, In
tho wnount of ill 15,000 WUlI not dlllpl'ollortlonotl.lLO thlJ Cllport'B opinion that thlJ murkllt
yuluo docrouBod by only $2,600,) IiY.Y. EckBel v, OrlllunB ConlltrucLlon Co" :100 Pu,Super,
119, 610 A,2d 1021, 1020 (1907). (EckBlJllnvolyod now conlltrulltlon 01' u hOllllJ, und un
a,.
.. ,
uwurd of dUlIlUHUlI to lhlJ hlllllUOWlllIl', bllHlJrllllloll dlll'uuLlYII worlullullllhlp, Illcludlng u
luuky bUBlJlIlIJllL, l'ulIlIl'lJ llllllJl'IiJl'lIll1l U Wlll'lulllllllllw 1ll11IlIl(W,) ~lliUIlJJu, tJ111JnbllllUI' y,
W1IJ1Dll, :WO PU,HllplJl', 1M, IIl7, 4HIl A,~d ,177 (IIlH,\), U CUNIJ III which hOlllUOWllIJI'8 WIJI'IJ
uWllrdud lIuhHLlInllul dUlIlllHUlI 1'01' U hlllldlJl"lI Itnlll'OPlJl' CllllllLl'lIUlloll of II llllW hllllllJ,
IncludltlH thu pl'UHllllUIJ ol'''cl'lIcl\lIILhIlLl dllYlIlopud In thu I'olllldullolllIl' Lhu hOllllU Hhm'Ll)'
uftlJr upplJlIlJlJlI llJolt PllHHuHHlon,"
0, "If UJlPUllullL,conu'lIcLllI'B dUlJl11lJd thlJ UOllLIJI' l11uldlll:l' l'upuh'lI dlHpOI'pol'L1ol1ullJ
to thu dhnlnulllln In vulllu Ill'LhlJ hOllllJ, LhlJ IlllI'dlJll WUH 011 thlll11LO hlLl'udulllJ IJvldlJllllll
IJHtuhllllhlng thuL I'uel," !]lovlul\ y, 'lllI:!l1J.&nJtlI'lIl1lloIJ.J~J.lJI ,II/} PII,l:1uplJr, 1211, 120,30,
13011 A,2d G07 00U2).
10, 'l'he Illl1lLutlollllll bl'lJuch clllll11 dlllJH Ilot 1I11llLLhIJ SchulJtv.1J8' Ilhlllty to Lllullll
conseljullnLlul dUIl1UHUlI,
11. 'l'o LhlJ u;ctUllt uny ul11hll.!ulUIJH IJlllBt In thlJ CIJllU'UOt dOUUIl1Ulltll, they Bhould
be conBtl'uud UI(UlnHL Lhu dl'ultol' 01' lhlJ dOUUII1UIlLlI, Uuulltll 01' BUBLlul1 1I0ll1uB, IIlU,
Clll1tl'ul 'l'I'UIlHPl1l'tut1u111I~Y.Jl!.L_~I1QJllAJmuIl18 01' Clll11hrJII COU!ill, 400 PII,
486, 400.7, 417 A,2d IH, (.1Il <WHO), 1;iQJ;!J1111 Fudul'ul HIlYlnWUJlld /,1)1111 ABlIoclllllol1 y,
.IklmnJm, ,100 Pu, SUpOI', IlHI, /lIIO, GUH A,:.!d UIl7 (1 UU 1)
IV, CONCLUSION AND CALCULATION 01~ 'l'Q'I'AL DAMAGE CLAIMS.
Plnintlfr/l own VUl'Hloll of theil' l!lnlllllH l'udul!ud I1H folh)wll
Orlglllul Contl'UeLH und cllllll1ed CllIlngu Ol'dlll'lI $2U'7,21l1l,04
LOllll AlIloullt puid hy SchuOtZl!H -20:J,7ll6,00
LesH Off HUt 101' EI'I'OI' uL Tuh 1:1 -:J:lG,OO
Leu Off Hut 1'01' COl'l'ucllonH pl'lIJlOHUCI III PI. J!:)(, :J -L!),.IIlO,OO
LCBH Offllut 1'01' OVUI'ChUl'gl!H fl'OIl1 till! NovulI1hul' 12, 1O01l
Chungu Ol'dUI'H,<'1 20 (u), Jl, 10) -280,00
LOHH OffHet fOl' OVlJn:hUl'I(l!H conlulllud In ,Jullu
Changu Ol'dlJl'H, compul'ud to PI'UYIOllH ChunglJ
OrderB (\I 20 <b)(ll),(iv), pp, 12-1:J) .8,470,00
,C1,1380,OO
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II, WTU!'L Bt\Q.IUmCUt1lD
Tho 60huot~os roqu08tod flumerous and lulatantlal ohallgos Irol1l Ihe orlglnol
oontraot dooufllents, Thoso changos Inoludod IhlJ Bosol11ont (wlndowll, doorsll First Floor
Inoludlng tho IIYlng rooll1 IWlndow, brlok, lIollhlngl, lomlly rool11 (wlndowll, doorB, IIroplnou),
dlnlno rool11 (windows), kltohon (oountotlop, lIoht6, rolrloorolor, tunou), poWdor room
(window), loyor (door): 6000nd Floor Includlno Iho masler bodroom Iwlndowlll. mostor both,
(slolrsl, offloo (windows). 1110ln bothroom (window), bock bodroom (wlndowlll, fronl bodroom
(wlndowlll: Extorlor lsky 1I0hls, windows, oXlond IlorchoB): Gorooos (oxlond oorOOOB, sky 1I0hl.
stolrs, doorB, oxlond lIoorsl: hOl11o hoollno roqulroll1onts: and oddlllonol plumbing and oloolrlool
roqulrolllonta throuohoullho hOI11O, Tooother, Ihoso Bublloquonl ohonoos oddod $93,41610
the original Consltl/ollon Agrool11onl ond rolsod thu bolonoo 01 tho 6upplelllontol Agroolllont
Irolll $ 23,20010 $46,478,64, loovlng 0 total bolanoo duo 10 Bostlon HOlllos of $93,838,64,
whloh Iho Bohuot~oa hove rolu60d 10 pay,
III, LEGAL ANAL VSIS
It 16 wall,solllad Ihot If 0 party doos work In oddltlon to thot whloh III roqulrod
undor 0 contract, Iho porty 16 onllllod 10 oompollsollon, Exton Drlvo . Inn, Ino, y, Homo
Indemnity COfllIJOnv. 436 Po, 480, 261 A,2d 319 (1969). Wl.I1, ~, 400 U,S, 819, Furlhor,
o oontroct provision roqulrlng wrlllon oUlhorl~ollon for tho performonoo 01 oddlllonol work moy
be wolvod by tho conducl 01 Iho contrBcllng porllos, In rei 6080nl;)I Entororls06, Inc.. 81 8,R,
337 (W,D, Po, 19871,
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'l'hu llh'llUJIII~unCUIIIII'U Iuoh lhllt ~he IlDl'lIUlI Wlll'lJ of Yllltly UllllqUlI1 burlflllnhllr
PUwlll'llInd knowludllU, 'l'hu PllIllIWf III II PlJnnBylyullhl COl'PtJI'lIlhm whloh olullnl lu
hUVll U 101l1l'1I11lndhlll 1'lIpu~lItlon bulldlnlf hOJIIIlB III Cunlrlll PUllnllylYllnlll, '1'hlJ
PlIfOlldulltllllru ullflllllllllll' wlI.h 1IJIllII "IJIIUh'IJIIIIJIl~B undlJr PlJllllll,YIYIIIIIIlIIIW, Illld Ipllllk
brokulI ElIlrllBh, DUlpltll l.hlll, IIl1d dlJBpltlJ ~ho fllllt thlll lhlJ cOlltruct butWOUll thll
PlU'tlulIl'uqull'Olllhut JIIodJlloUtlollB bu III wl'lllllg, PluJlIWl'l IIglJlltl undortoult many
llollltruotlon JIIodlllcullollB '\'011I lhlJ orlglnlll plUIII, wl~hl)lIt lhe IIIP'eOIllOn~ of tho
OofendJllllll, ulld 101l11J1lmIJI OYIJI' ~hlJh' lIpuclIlc ohJlJcllollB.
'l'ho orlgllllll cOllh'uct pl'lCIJ for conllll'uclloll of thlll hOlllu WUlI $11i8,OCm,OO, A
totul of $203, 7M hUll blJlIlI puJd to PI1I1IIWf by DoflJndlllllB, Without IIny ulll'lloJllent of
tho portllll to puy moro thun thlJ orlglnllloollll'ucllllllount, PlulnWf now llluJlI1l thllt
011 IIdditlonlll $03,838,04 III Btlll due from lho DlJfolldulltB, Altllrnllllyel,Y, undlJr II
thllory of UI~UBt el1l'h:hll1oll1, wllhoutlJllplulnlllg thlJ bUllll for thll dlfferullt lIul11ber,
PluJnWl' c1uJlIll ~hut $131,1577,/}4 III duo IInd owing,
'l'hll Dul'ondulltB huyo llountorclullnod for bl'Qllch 01' CQntrllct, conlloqullnlluJ, und
dllluy dun~goB,
Tho Dofolldulltl 1I11BOl't thllt thoy 1l1'IJ ontltled 10 dUU1l11(OI of $20lJ,7M,OO to
renlody tho VorlOUB del'octB froJII BIIBtlun'B dofoctiyo worklllunlhlp, plulI COBtl Ulld
uttornoy foos, $0,900,00 In doluy dWnUI(IJB, und $11,000,00 In conBoquolltll1l dllJllugOl,
II, S'l'ATEMF.N'l' OF THE BASIC FACTS AS TO DAMAGl~S,
Tho Schuol7.oB OllB01't thul thoro uro U1IlIlY IlUWB III lhll dOBlgn Illld COllltructloll
of thlB hOnlo, mOllY of which 01'0 Btructurolln nuturo, They polnl out the defoctlyo
porforl11onco by PluJntlll' from tho OUtllOt, whun PlllintltrB l1I(ontl 10l!Utlld the
fOUlldlllloll"f thu hUllle hllp,'opurly, wlthlll thu lIutbullk 1U'1,l1l, cl1ulIlnll11 lItop work order
by tho 'l'UWllllhlp, 1I111IlIJlcunt dulu,y In cllIINlrlllJlhlll, und "lJdUllllllI of PllI'lIonll of thu
hOllie,
'1'he Bchllutv,ulllJlulllllhlJY 1I1'IJ III111lllJd III $110,00 JlIJ" Lluy lIqllldlltlJd dUlIIlIglIN, 1I11
pur tho contrllllt, dUIJ to dlllu,y, ulld thllt lhoy IIJ'IJ IJnlltllld to dlllllllllIJB 1'01' dol'ucllyu
plJrfOl'llIl1nCO ol'thlJ 1l0ntl'lIut, DlJfulJtlllllullldu IlId, ol'lIl1'lI11turlll llltlJlP'lty, lUllk of p"OplJl'
d.'I1I11Ullo (nocullBltllllnK l'epoul'IlIl{ 01' NOIllIJ ClJlllllllt /lOIlI'lI), IInd YllI'loUlI IlIIBCellullllouN
dofollllye COllllll'ucllonlochnlquuN, too IIUllIllI'Olllllo 1I1l1.
'rho Plullltllf clullllll dlllllUKOll fOl' bl'lJllch of contruct 01' fOl' UI\!Ullt ellrlllhlllelll,
Alterllullyraly, Plulnllll' cluhnll ulllltllJlllullt to lho uqUltllbl1l rlJlIlll' Ill' ul'orced lIulo of tho
hOInO, DefondulILB lIIullltulll thol'lJ hi 110 brlJuch of lho cOlltruut, NlnlllJ PlllInllll' flllled
to porI' 0"/11, und thllllhu DlJfolldunlll UJ'IJ 1I0t "'~UBtly olll'lchod by pONBeNlIlng u hOllle
which conlulnB the 1I111l1IJl'OUB doflJclN which 111'0 P"lJllollt,
Ill, B'l'ATmMliJN'l' AS '1'0 'l'I.m PHINCIPAL ISSUJ<~B 01~ LIAI3ILI'l'Y AND
DAMAGI~S,
WHE'1'Wm. 13AS'l'lAN HOM~;S P~JIUo'ORM~:n 'I'I-I~~ CON'l'HAC'I' IU~'I'WEEN
THE PAR'1'mS, WHI'J'1'll1m BAS'l'IAN HOML'JS MAY MAKE A CLAIM I~OR
AMOUN'l'S DU~~ WHICH AIU; NO'l' FOUND IN 'L'lll': CON'L'RAC'l" AND WHE'I'HER
'I'fm BCHU~~'l'ZI':S HAVI-J Br:J'JN DAMAOlm BY LACK 0/0' 'l'IM~~I/Y AND PROPER
PERFOBMANCEJ I3Y BAS'1'IAN HOMl';S'/
IV, SUMMARY 01" LJiJOAL ISBUI!:S H~:(JARDlNCI ADMIBSIB1Ll'1'Y OL~ EVIDENCE,
Whothol' un oquitublll 1'01'11\ 01' l'olllJf' lIlUY ho cOIINldllrl!d,
While COUlllllJ1 for Dofundunt dOlJlI not unllclputo II11Y IlJgul 11l1lUOll regurdlng
IlchnlsBlblllty of llvldoncll, counllol will bo ullklllg thut tho jury phYllfcully ylow the
proporty, which IB locuted upprollllllutoly llyo IlIlnutoB Ii'olll tho Courthou.e, In order
to be able to hour soundB oYldonclng BOIllO of Defundullts' clIllIllS, und ill order to ylow
yurlOU8 defuctll whlllh cunllot bo 8UIJIl 01' fully undor8tood by phOtogrllph, but wblch
roqulro IlCIOllU yluwlnl(,
It lB IIntlclplltlJd lhlltll ll'lI11Bllllor will 110 llllclJlIBllry lit trlul,
DufulldullllllllJult lhll l!lllllplllllolllll' hlcollllllellJ dlBuovllry,
V, WI'I'NESSES'1'O Ill'; CALLlm,
!(urL Bohullt~, UUf'lllldllllL: 1"lId WltlllJBB,
Ingobo/'g SChUIJLZ, Dllf'lJlldlllll: l"lId wlllleBlI,
Hoger 011l01l, PI'Of'ellBlolllIll~llWlIlJlll' wllh HogurJ, OIBon & A88ocluto.J FlUlt lU1d
lI11port Wltllos8,
WultlJ/' !~, Nlc1tul, OWlIlJr of' Nlcltol HOlllOBI Fuct und ollport wltnu8s,
Insulutloll OllpUI'L liB U fuctUlld IJllpllrt wllnlJlIlI/'lll(lll'dlng fllllulutlon,
South Middleton 'l'OWllBhlp omduJ liS u fact lllld UllPO/'1 wllllllSS regurdlng this
property,
Slructurul OXpo/'tllllu fur,t und ullpcrt wltnoll8 I'ugardlng 8tructurullntugrlty,
Vl, LlST Oli' mXHIJ31'I'S,
00l18trucllon conlrllcl with utlllchod und Inltluled plllllll,
PhotogrophB,
ReportB of EllPO/'tll,
Survey plUll8 llnd 'l'own8hlp docUlllllnt8 rcgardlng yurlunco opproYl1l,
Oorr08pondoncll und oLho/' docullIcnts uxchullgcd by tho purtlo8,
Wrlttolllllutol'luJ8 of' lhc Dcfcndllnl8 l'cl(ul'dlng wuforboord In rOllldoncuB,
Bills Dlld ml8collunoou8 documonts I'ogordlng conBoquontll1l dumuges,
Subsequently, beginning on or about NOVllmber 7, 1996,the6chuetlel requelled
numeroul changel Bnd addltlonl to Ihe Construction Agreoment. many of which Wel'e
unreuollable In lime and scope The additional work perfon~ed 01 a resull of tlloS" chonges
and oddltlons forced Bullan Homelto e~tend the completion dote of tile home end to Incur
eddltlonel e~penses nol contemplated under Ihe onglnlll Construction Agroement
Upon lIublltllntllll completion of Ihe home, \In MIlY 4, 10913, Ihe Schuelzes beglln
to occupy the premises. However, the Schuelzes hove flllled to PIlY the outstllndlng blllllnce due
for the conlltrucllon of the home. By loller doted June 3, I 99Cj, Eugelle J. Bllsllan, the Presldenl
of BOlllan Homes, notified Ihe SchuelzeB Ihlll the balance due on Ihe property u of June 3,
1996 wal $93,638.54 and Ihotsuch puymenl was now due and owing.
On August 23, 1996, Ballllan Homes filed lull egolnsl Ihe Schuelze,. elloglng thel
Ihelr failure to pay the belonce due was a breoch of controctllnd thlllthe Schuetzos will bo
unjustly enriched If they lire permitted 10 relllln plluesslon of the premises wllhoul making full
paymenl,
II, BTATEMElNT AS TO DAMAGES
Bastllln Homes Illleges Ihelthe Schuelzes brellch of contrllcl has damaged lhem
In lhe amounl of $93,838,54 plus cosls and Ilttorneys fees In bringing Ihls litigation, In addition,
10 the exlenlthe Schuetzes lire permltled 10 retain poueulon of lhe home wlthoul meklng full
peymenl, lhey will be unjustly enriched. As an alternetlye ground for rallef, Baslllln Homes seeks
to compel Ihe sale of the home, and to haye the proceeds of the sele pieced In escrow for
Besllan Homes' benefit.
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P.rn.P9u.Lnui.ll.lon to Conlt:rUQtilln ^Qt'.tlJWl.~lIItiln...llilIll!.L-~!l!l.,
"I'hl!! Contraotot' IIhould UBI! b"ut llffort:u to ll'lInplutu t:hu h"IlIlU in
llocOI:dllnoe with the IIttachlJd uonlltr:llot:J.on ti/llU plan.
HotwithlltandJ.nq th. fore9oin~, the COlllltrulltion uhll11 bu aomp1utod
no ] nter I:h4n .ix (Ii) monthll fro/ll 1:1111 datol of OOIlUI\lI/lOUJnUJlt of tho
wol:'l<, In th. ev"nt that thu GOlll1trllut:lon J.lI not llCJlnpl.lItlld with\.n
the o\fol'IH1'l\.d "l.x (ll) month HUle period, Contractor "hall pay to
Allyor <! e_'5!.~e!! pel:' duy payment for "Boh day aftn .1.11 (61 Jnonth. X
~,hot the hou.. is not CO/llplutlld, Thl! DUYllr "hall IIcoopt [lllytnunt
for the dll11lY in oompllltion of the OOlllltl:'uction work al liquidated
dal11l'l\ll1l1,
It tll imp"l:ativ. thllt the Contractor oigll II Stipulation 11911inll:
Lienll in the attached fllr," , 'l'his form IIhould be tiled in I:h.
L'l:othonol:ary I B Of f ice of the Cumber.land county Courl:houle Iilnor 1:0
the co~nQnoa/llQnt of work on the hou... Ther. i. a $10 filih9 tee
ter that dooument,
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PRAEOlP.!!.fQfl LISTING OASE FOR TRIAL
(MlJel b, Iypewrlllefl Ind eubmllled In dupllcllel
TO THE PROTHONOTARY OF OUMBIlRLAND COUNTY
(Checll onel
Pluee lIellho lollowlflg Olllle:
( XX I lor JURY I1I1I II Ihe fleMllerlll 01 civil ol)Url.
( I lor Irlll wllhoul a IUlY,
"'''' t t t uti "" tH t" H HI'" t H"""'.' t ot .tlt t.,..." H ,t,,,t! ,.""", III H"""" t'" t.1 II ,t, t I" t tt" t. t flHI'. H t, t '"' t" HI' II H" tI tt'"'' H '" 'HI!'" t' I+HI"
CAPTION OF CABE
leflllre olpllon muel be ell led In lulll
DAS'rlAN 1l0MI!:S . MIECHANICSIlUIICl, lNC "
(oheok onel
91>1 I AUlImpell
( Treepau
Trespeu (Molor Vehlolel
(Plalnllll)
. - (olh"'- - ---
VIS,
Thlltrlalllel will be cllled on August 12.L.l'L9'L.
KUR~' SCHUETZ and n/Clt;;OORCl BCHUt;;TZ,
(011 lend ant)
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Trlale oommence on ~~tolllbel' 15, 1991-__.. .
Prelrlale will be held on }_l!.~ust _~~99'l._ ..
(Brlele are duo 5 daye beloro pretrlale.)
(Tha porly lIellng Ihle case for Irlal shall provide
lorlhwllh a copy 01 Ihe praecipe 10 all counsel,
pursuanllo local Rule 214.\.1
No. ~1l!.L_,. Clvll____ _. ___._..... 1996
Indicate Ihe allornay who wllllry calle lor the parly who Illes this praecl\.lo: R '. !l_t:.!,p.~!ll1.. ~11!~1n,
IHloAOS & SINON LLl>, PO Ilox 1lI16, IInrrlsbul'g, PA 1'fl06 717-233-5731
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Indica Ie Irlol counsel Jor other parlleell known: .!ndrn~_~.~_ '!:.or~l.?n.o! O~~!,~n~or .. .
Hobmann MnMwall & Ilippe1 LLP, 2011 State Stroot, Hnrrleblll'g, l>A 17101
ThIs COSB Ie reedy for Irlol.
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Print Nome: n.. Stephen. Shih111, .EBLJulIJU
Doll!: ,J lIno 1.1 J..l ~.')'I
Allornoy fort'1nlntll'l'
23, Plol/1l111 hI ollvlaud bV 1l0u/1aol Ihot 11m olloU/lllol1a 01 porouroph 23
1l0nalllulI 00nclull0/11 01 Iuw 10 whlllh /11) rllapo/1olYo pleodl/10 III /1111IUllrv, To thllll~lsnl
.uoh ,uponllvl pllldlno la nlOlluurv, Iho ollllUllllono orll apoolflosllV doni lid , To Ih, 1l0/1lrllrv,
Ih, oonltrullllo/1 period WBl o~llIndod duo 10 ollta ond omll6lol1a 01 Dlllendlnta Inoludlng
numerouellnd roplatld modlfloallo/1s, IlhOnOlla und addlllona, delllVs In rlllpondlng and 1111 II no
10 mske dllolslons In I thnlllv Ilahlon, BV waV 01 lurlhur BnaWlIr, Ills dllnlod that Ihu homo
la Inooll1plotl or not Ilonslruolld pursus/1t 10 Iho apeolflllOllo/11 uo rllpeoludlv IIll'lu/1dod bV
Olflndants,
24, Plulntllf Is odylsed bV lloutlsol Ihol t111J alleuollona III puregroph Z4
Ilonalllute oOllolualo/1a 01 low to whloh /10 reapo/1slve pleodlng la nOOlaSltV, To Iho extant
auoh ruponalve pllldlno III /1100BBOrv, tho olleoatlona IIro apuolfloullV dlnled, To the OO/1lrUrv,
the oonstruollll/1 period wus llxtemJed dUll to oelll Ilnd omla810/1a of Defendu/1ts l/1oludl/10
Ilumerous und rlpeetld modlfloullon8, ehe/10es und additions, delavsln responding a/1d foiling
to meku deolslons In 0 Ilmelv foshlon,
WHEREFORE. Plalntllf demonds judgment In lIs fovor and Igolnst Oulcmdllnts
IS sut forth In thl Complaint,
Incldlntal Olmllll.
2&, Thl oorrespondlng responding aVlnnents oru Inoorporuted hareln,
26, Denlld ae .taled, The Construotlon Agreemunt Is I wrlttln Instrument
end. lIeuch, It .peaka for Itself,
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Plnlnllll' hnH tillled 10 conHll'ucl Ihc hllllll! III Ihl! HpllCllicIIlIlIIIH cllnlillncd In Ihl!
ConHll'uCllun ^l!I'IlIlIllCnl
Wm:IU:IIOlU:, Ihl! Dcli:ndlllllH rCHpuctl\llIy rC1luCII Ihlll Ihll C.lltrt dllny
Plnlllllll's clnlm IiII' unjuHI clIl'lchlllCnl IIl1d IIwllrd Ihc lJelclldllntl Clllll, IIlllll'neYI rells nlld
nllY olhcr cmlslhls ('llUrl dCCIIIH IIpflrllprllllllln delcndlng Ihll IIclllllI
~;OlJNn;IKL^IMS
Itrellch Ill' Cllntrltcl
16, Thll nYllnnllllU cllnlnlncd In Ihe lJclcndnnlH' 11~ I Ihroullh I ~ of lhll
Alllwor nlld CoullIllrclnllll nnl IlIclll'flurnll!d hel'elll by rcli:rcllcc 11111' 1\llIy ICllorlh,
17, Thu 1'111111I111' hils lilllull 10 conslrurl II hllmu till' Ih\! IMilIllIIlIIIs III
IIccordnllco wilh Ihc I\!rms ItIlLI cOlldlllolls COIlIIIIII\!d In IhL' ('UllsII'UClloll ^Ilruumunl,
Illcludhlll, hUI 1101 IImllcd III, Ihu l>clilIllIlIllIS' u~pruss I'UIIUllUlllCI1\ Ihlll Ilmu wns Ilflho
CUOIlCII,
IH, Plnh1\ll1's ClIllNllllCllolllllf Ihu hlllllU ClllllllhlN IlUlIlCl'llll~ MlhNlllllllnl Inlunl
and plllelll dcfcCls, Ineludln!!, Inil nllllllllllcd III, 1'IIIIul'u Iu IUCIII\! Ihl! hUIll\! llnlhe pl'Ullerly
In accordance wllh Ihe NpeellkllllllllN Ill' Dclilndlln\N IInd Ihe ~ul hllck I'c1luII'elllclllN ol'lhc
10cIII jWnhl1l tude, IInd tllnNll'lltllllllllf Ihc linllldllllllll, 1l1l1'll1lC, Inlel'hll' ~pIlCCN nnd ulllIlll:s
In II Iululllndllrd IInd unwllrknlllllllke nlllllllCI'
19 Thc Nullslllnlllll dclilclN which cslNI IIlld Plllh1\ll1'~ filllure III CllnNll'llCI Ihc
h01ll1lIII nccurrJlIllCC wllh Ihe ~pceltkllllllnN Ill' Ihe l>clilndllm~, Ihc Illtllll.llllhl!! cllde IInd
Ihe COlnll1lcll'lI\ ^l!rCclllenl hllvc rcndercd Ihc hlllllC unllccclullhlc III Ihe DclilndllnlN ItIld
Ihe dcfeels IllUII hc rClllcdicd III Ihe Pllllnlll1'N CSpCIINC In lllllcr IiII' Ihc Dclcndllnls 10
IIllrec 10 purchllsc Ihc 11I11lle
20 Dcfcndllnu CillllllllC Ihlll Ihc CONI 10 rCl1Icdy Ihc Nuhilllnllnl detec\8 Is III
cxccss ofTwo Ilundrcd ThlluNllnd Dullllrl ($200,00000)
WIIEltEI'OIU:, Ihc Dclimdllllll dCll1l1nd Ihllllhe Pllllnlill' relllcdy Ihe SUb811111\11I1
duleC18 which cxllt III I'llIhlll11'8 cun~ll1lcllon of thc hUlllc III 1'llIlnll11'8 expcn811 IInd
cOlllplelc con81111Cllonllf Ihc hlllllC Ill', 111 Ihc Ilhcl'Illlllw, rcllllhulsc the Dclimdlln18 for Ihe
1I1ll0Unl prepllld 10 1'llIllIlln'lilr cOIlNlnlcllon of Ihc hlll1lC In the 11I1IOUIlI of Two Hundrcd
IInd Thrcc Thousllnd, Scvcn lIundrcd IInd Fllly-Flvc Dullm ($~O.l,7~5 00), plul c08ls,
allorneys fcc8 alld olher Clllll Ihll ('ourt declllI approprhlle III delcndlll!! IhlN BCllon and
brltllllllll Ihll CUlllllureltll1ll IInd rulellKU 1111 cllllmN, KU Ihlll l)el\lIIdllnl. IIII1Y hllYU Ihe
neeuml)' 1'01)1111'. purlhnllcd
fOUU'IlL'IUnIUUlIIlIlll'l
21. Tho IIvcnllenlK cunllllncd In the I)ulillld II nlK , '1'1 I Ihruullh 20 ul' Ihl.
AIl.wer IIl1d CoullIerelllltllllrelnc',lI'pUrIlICd Itcrehl by rel~rcnce ilK Ifllllly KUllhnh
22, A. provided In Ihe Cllnulrucllun Al!rccmenl, nUlwllhKllllllllnl! Ihe 1'llIltIl1l1'.
oll'orlllo completo Ihc cunbtlllcllun wllhln the required Ilmc IhuIlC, hccllu5e cunllftll:tlon
WQS nol completed wllhln blx ((I) momhb Ihllllthe dlllC ufcummcllcemclIl llfcunKllllcllun,
the Defelldalll5 urc ellllllud lu dllmlll!Cb IlIlhe IIlIluulIIllflhlny dlllllll'b ($,10 (0) pCI' dllY lor
each day IIncr Ilx (6) mOllthl Ihllllhe hlllllC II lIut completed
23, The 1IIIIIIItllr bC1l1l1I excIIVIIIIIII!, cUIllIllcndll1l cOllbtrucllolI of thc hlll1l0 un
or uboul Scptember 20, 1995, huwevcr, loll cd III cumplele CUl1bllllCllolI wlthlll .1)( (6)
mOl1lhs of that date or UI1 or IIhout Fchl1l11ry 20, 1996, Rlllllhc homc I'ClllllltU IlIcoll1plele
alld nol construcled to the bpcclt1cilllOllb Clllllllll1ed III the Cllllbll'Udlol1 ^l!l'ccmem
24. Ulldcr the tCI'1Il1 of the Cllllill'UClllllI ^IlI'CCIIlCI1I. Ihc DcfclldRllts Rre
enlltled to conlraclIlIIl dlllllRIlCb in Ihc IUIlUUl1t of Six Thuusillld Nine lIundred Dollars
($6,900,00), which reprCsell15 230 dllYb lit Ildny dollm ($3000) pCI' day Irolll Fcbrual)'
20, 1996 ulltll Novcmbcr K, 1996, which bRld amounl contlllUes 10 IIccruc IItthlrly dollm
($30,00) pCI' day UllliI cOlIstrucllolllb cOlllplutcd
WIIEltEI;OIU:, Ihc Dclimdill1tb dCilllllld Judllmcm ill thclr lavor III!Rlnsl tho
Plalllllff IlIlho al110unl of $6,900.00, Rnd Thlny Dollarb ($301)0) pCI' day IhcreRner, plus
COSlS, RttorneY5 fecs IInd III1Y Illhcr CUbt5 Ihls COUl'l dcelll5 Rppl'llprlllte III defending this
acllon Rlld brlngllll! Ihl5 COll1l1erclRl1Il
1JWJIfnlnl UnIUIUr.".
25. Thll uwrlllulIIs cUlIlRlnud III Iho l>uli!l\dllllls' "'1 I Ihl'OUllh 2" Ill' Ihls
An SWill' Bnd CllUlIllll'c1nhlllll'e Incol'punllud hel'elll by rulincnce ilK 1I'IIIIIy sUllill'lh.
20 As provided In Ihc ('llnMl'lIclhm ^~l'ccmclIl, Ihe 1'111111I111' ellCllUl'llllCd Iho
DllfelldulIlS 10 Ihlp 1III'IlIIIIl'U Irolll Ihu Fcdel'lIll~epllbllc or (jel'lnllllY IIll1uly ('10) dRYS RileI'
CUlIlIllellcelllclllllf COIISII1IClllllI, 1I1ll11'11I11I11I1' wlIulll perllllt Ihcm hI ~llIl'e II III Ihl! 1l"l'Rllc
ol'lhe homll
27. III Decumbel' Il}'l~, IMi!l\d1l1l1S ihlppud IIWI' Ihcll' l\Jmllure; howeYer,
bccnulo of 1'llIllIllO's dclllYs III Cll11S1111Cllllll, the l>eli!l\dlllllS \\erc 11111 IIble to slorelhelr
belolllllll~sllIlllI: hOllle IIl1d were rOl'ced 10 mRkc 1I111!I'IIRllw Sllll'II!!U III'rRIIl!elllllllll, which
relulled III dallllllllls 10 Ihcll' pl'llpel'ly
28. The cOli or Ihe IIhel'llRtlvu storR!!e 1I1"'lm~emellls IIl1d dlllllalllll 10 Ihe
OerelldBIlIS was III cxcess orollc ThollSlllld Dollars ($1,000 001
29. From thu COllllllellcullIClI1 or CllIISII1JClllllI III Ihc pl'USllllt, thc DerelldBllls
were rorced 10 Il'RvcllO Ihc Ullltcd SIal US Oil two (2) SCpllrlllC occlIslolIS 10 Inspccl Ihe
hOl11c Blld llIeCI with Ihc Plallllllr, IIl1d IIICllf'l'cd slIbSllllltlul IlItcl'IIlIlllllllIl Icll!phlllle alld
rncllmlle churlllls dlscussllI!! p/'l1blcm~ IIssocllltcd wllh thc clllISlrUclh.llllllld CllSt OYCrrulll.
30. The DerClldallts' Iruvcl cxpell~cs, IlIcludlll~ alrlilrc, hlllclBcclllnmlldalloll1
alld Illenll, alld subsllllltlalllllcl'IllIlllllIlIl Iclephollll Blld racsilnlle chllr~cs durllllllhll lime
perllld weru III exccss or TCII Thousalld Dollllrs (510,00000) Thcsu llxpellses will
COllllllue 10 Bccrue If Ihe lJelimdllllls urc requlrcd III hc presclIl III Ihu Ulllled Slales 10
defelld Ihll aCllolllllld brill!! thcsc CoulllcrcllIlllIs
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exhibit A
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CQ/VsrnUtj10N "'GnKA'MENT
A ~ffItlMIf"'T IfI,I, 'lrl"..!;LJ",/~,1~N.lr:1 ,1.5, ,"" ,.,.",,, liAS rIA N II'JMIfS....~ c-M ...-.
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.?!..I'JI(h",w.,I","" rol/,J t"l!7.rt~) fill it1:!1!L-rt ~....:!.~I!!aJ!
,h",I,../I,,' ,"lto~(R;;"~/f{jt:r9_. ~,..61~I;t..,,4( J'JJ~~,yAl~..ei!.
,,~"'. l'h."....9/1.:J.!i.::,.R:l1o ~ 819~/I',"A rh.",.., 1(/ :;tJ4.~~.1. ~',ir;";J.i! 'P.;/ 7
F.41i " ~~.~ #'
rho c:~""..,., h"d, .,,,,,,. ,,11 . ",,,,. .'"f.rm/"". ,A, .II.d,J ,p,,'I/I..,/.", ."J ,h. OW"" .,,,,, ,.
p"9.h./I,J~;;;:~.IJt,,,..".,, bl 0"/11', 16".,.J., ~t:. "'i ,L..,{;~j.&ft.t2lLi~~_
~~.......&.j2b".':!.__....t,,,, ,It. /I~!.;Y; ,4L~ff'D./f. ..__
rh, r:,,,,,.t'O' .,,,., " ~,,",I.,. ,nl" h."" UtI,,' lor ,h,,, I',,", "hI.h .,., 1/"..1 """wl
I. th. C~"',.c,., II,., "" fin, .,.rI., 'ffJ I., " pl.", ,Ir",h,.
1. CO",,,.,., 10" "" {uml,1r .", p.",,'" ,u.II II bullll", p,""", ,..I .u, p..."II'. ".." .. ,..,., ",....1" "..
J. Cn"""',, ,J~" "" /lIml,II 116" ~, ,"",,1.1 for J.I", 'U",,,. tMU"t ...,,. "A."II." . p.rtl.. " Ih. frD"'
,...1 0 bo.. ,,~., "~~p. (.. 6/.1",~ ..rp." 'If "",."J b"",I",' "~,, 'If' Ir... . "'.1'.) N. 11'1" .ro l"oluJ,J.
4. c.:o""'<I~' J... ""' /'Hml,h . ,..II. pu"." up'" ,,". 0' i. IH"IJ. pll/IfIM", 1/"...
1. 1'11. c:~"".d prier J." ,11,1,,<114'" .", ",,,1,,,, b..AjllII"" '"''''''., "~,,. bl..II"" rod 0' ,,... ""....~
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.r" /:fIt"/lfj(. ./)t='''1''' .dT?1ru'''''7. (l4'liJ"'T"''''n''''' . I
Ow"., 1'/1/1 p,~~IJ, {I.. I...uro".. ..II" fJI,,,,J.J .."....'. II.., ..II,,, "...".~. , ~/.. JIl,I",
tf""'U."~". r"....
rill, "-,,,. I, bull, 0/1 ." I"JMiu.1 cUII.m 6.,1" ..""1/,,.1, ,Iu, ".., .." ,1I.1r,1, 41 .,,11 ., ",."ri."
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SI".. 'Ir~ c.""..',,, J~,. /HI "... ..""1,,, ..""..1 ~'" 11M"" ..""..,,11 ,u~..""..tf.,., m. III..".",
".""".ri,,, .im,. t~".I/"~"" .,11., ,I" "",6/"", ~, "",II,'~"" ,Ir, c.,.",tto, "0 ,,~, ouu".. .",
",,~,"lbUIty ~, U.blllq {~, .""11I,,. ""., ,II." ,fin,. 1,,1'/fJ 'ptt/fluU, tfll'''''C~,J f/>, 11,,,/...
.'
~y~.!.. Mey ~,f6 ~ {;~..1)r.l:1JiPI /illY' A;v"../I......,.;".:-w:'~ ;r;'vN~N.;,
?, L"'1' I rT~ s,,'~ r ",: ~~iv>_.r"'J:r;. / .
c: '01
EC:10 IL9 LIL ~OH N~llS~8/1N3 NOll ~o~~
~d9E'c: 9661-50-9
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Ih. .",.h," l"IIIIrI/""" 04""",,1" "",," ,h:'/r/61, A) Iff ,h. ,um 'II.L;:}~ ~., i!)r!I _
J/oflil" P../,<III Q~"":1;'a ,AI.J'-'-CJfW.;' M"t!f ~
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'''' '"'''' JOll ..h,,,r.u,,.,,I," I, ,.",~I,", 11'1 ../I." u"J" "'I,,/lh ..I,,"..., .". ..." I,,",rr.i, IJ~V
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"",,I,u,.. "" '/f.,., fi,m..', "1 ,111 'UIII ./110.00 1''' J/,,,, "' .i,,,,,," I'~m ,h. 01.,. "1,,,,1.,,,,", ", ,i",h ,
I" ,.,1"," ".,1.. /r.m ,h. C"","",,, or ',"011", ',,,,CY ,. ,h. "',u,I/I,,., ifill,,",",.
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c.""."" ,""..'" ,. II ,. ""J,, I' .."",,,,1..11, U"!,.lI.l. ,. ,u,/lI, """, C''''''','' "",... 'h. ,I,h/,.
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),,"111 ,uh""",/.,. ur J,I"I." ./,h. ",,,,,,.1, /h"", ., ..r.l.. ,.."'"" /1,1" ,,11/ .~II/I.J ,,'curJln,!y) ur
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(/",J(:l!Jlf. (1.),r1'/ CJ,OJ,A./Il17t I/-- (.Ol!{l'"f# C",<lt..f:;!ll,v,A1 ~';1" N7r(.~ /......V...,'<:'l
(1./<'*-'1'11.... .
fJi!lP.9J"JI.d.Ru.l.!l.lQn to conltr,YilUOI\ AQrumlntLIHutian HO!llllA-lli9..L
"l'he Contraotol' III"ml" Ill". wl,"l "f(oltu to '101ll(l1uLu thl! hOllllO in
1I11<llll:c1anae with the I\ttl1lJhll" ':lJnllLnwUolI Lil11ll plllll.
Notwl t:llIIt:nndJ.nrj the fou'loim/, thu lJ',H1utluclJ.UII ullllll bl/ ':lJlll1'lul:u"
no 111/:(\1: than .ix (fj I month. tr'JlII thu dat" 'jf ,:ol1l1Uf/n'HII11Unt ",r. thlJ
worl(, 1n thd event t:hal: thu <:onubll,:l:lon 1.11 not ':'Jluplutncl wi-thin
the IItol'lIfl'licl",Q"I.X (Iii l110nth tll11" Pllriod, Cont:rnctor ~haU pay to
Auyur It $...::1.l1':= (J1lr. dllY payment fOJ: "'11O.::h .IllY Uftllt' lIill (Ii) Inl.ml:hll v'
t.hn!: the hou.e ill not r.1.1I11plllt"'l. Thn AUYllr' IIhllll 1I(:<11l1'1. [lIlYlIlunt ,)\
for the dl/IIIY in <:lJlIIllll1t:ion ot the oonet;ruotion work 1111 liquidated
c1IlIl\IUjOIl.
It ill imp"rlltivlI tllltt thu C:lJntrll<Jt'lr lIi"n II AtllllllllU(lIl I\\)llinllt
LinnN in the attauhud for III. 'l'hiu form I1hollJ,d hI! tlltJll In the
Prothonotary' u offl.oo of till! ClIml1l!rl(\nrl County t:our:thollee pri!;u:..1Q
the COIIUnall<:Ulllunt oS: wor/<. on the hou.fIl. 'l'here h a $10 tiHuIJ tee
tor th~t duoument.
"1, fiIM'/I" ,"lIlu.lI, "'UJ ,II,'lhIJ A""",.", tI""I,u/t' lA, ,",1" "''''''''11 6o/lflu" '11'/1'''''' h".,o .,,"
'"' th.",,, h"..r. mil" 60 "'I,,,h I" ..,/rl",. rAIJ A""",,,,, ,h.llll1urf ""' b, bl,,~I", UP'" lA, /lIIn.
t.ll,.u'~n. ,"mI"'""..n .",J ,"I,,,, "I ,h. p'''''' h...,o.
1/'1 WlTNI!SS ,.,1fF.HIWF', ,h. ~,,,,.. h... ", ,h.I, II,"J, ,"J ".1. r)~
I",.""". ,A".b,,~ h. ..u".! /, ~, '1r 1'.:;'
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Hd':Jf.' .3 8661 -'30-8
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NON,/l/f~'I'ON$IIJIU"~
SIJI'I'UiMf.N'....t ..t17/lEtMt'N/'
7')"~' M1Hl)':MAWr I,. $111'1'1'11/""'" ~ C:II/"""~,I.,, "',m",,,,, rI.".; ~/~ r 6""""
IIM,.'AN "OMItS lNe" UII' ~Ifl#' sf' ~J1Illi''9" M '/I, (11",1"'/1" ~./I,J ""1"), ."til,
",,,61 ,,,.,/, .,'N ./ III" AIlIf,""", ., ,h"UII" ./1,/""/1,, '"c.,p.,.", "11"''', II'h,w,p." ./1 'I,,,,, "{ ,h,
"."1" "I/m/I I" ,.IJ A,,,,,,,,", ,h./I.pply '9"./ly ,,, '/11 lI."hI" SlIjljll'"WI'.I,l,,,,,,,,",,
,./" 1'1111" /I"". ",,, " I"I/,,,VII
(AI' h.,/JASTlAN HOMES, JNC 'h~/I b ." ~.I'fd," '""".., "I'h Ih, ,",1~J.I"fJ,ubCflJ!!'rl~'(JJi"
p,,{.,m Ih,l, ,,,1.,,, ".1" " J"'II"."J' "" r ""IJ-,] J( ( ",. () "I' n r~ rr ''1~/ (I
{1b.7U'" (0 a 1M I "'!1 I .,., W1'(fr" I '
'NmAL EM.'11 ~'A'/llllcirIlA'9iJ6'$7''jJJ' C/lOSS o(1f' ~:I!. l/le/( Not t:QUi-'Th'/I
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W, h"v, "0' ".klttl/or rltl",bur"".,,,, lor ,,1/ ,h, "ddl'''III,,1 ov,rhll"d c,,'" """
ov,"u" co." '0 u./rolll our .ubcO"Ir"eto" ". " ,,",,/, III 'hit "."IIY ch"",,, ""tI h"vI ,,1'0
c""lltd Ih, co.,. o/Ih., co".lructlo" "lid I",,,,,, IIXptIII.n 0" Ih,,' "'1I"1t)I /0' 'h' "''llorlty
of ,hit clI".tructlo" 11",1t. lJIIud OIl o"r "or",,,1 "",rk-up ""d "m". prlclt. '0 our
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BASTIAN HOMIllS . I
MlnOHANIOS13URO, INO" I IN 'l'HIn COURT OF OOMMON Pl.IlnAB,
l'IBllltlll' I OUMBlnRLANO OOUNTY, PIDNNSYl.IVANIA
I
I
V, I NO. 06."713
I
KUR'1' SOHUE'1'Z ond I
INOIllBORO SOHUE'1'Z, I CIVIL AO/l'ION . LAW
DefulldontR I
I
THOMA6 R, BO'1''1'6 I
lilUOlilNE J, BAB'1'IAN, I
Ooullterlllllim t
DefelldontR I
MOTION TO ALLOW FILING OF AMENDIDD
ANSWER AND OOUNTlDllCLAIM
AND 1'0 JOIN OOUNTEIlOLAIM DEFENDANTS
OOME NOW, the DefendantB in tho abovolllattor, by thoir counBel, 6111lluel W,
Mllkell, Jallobllen & MUkoB, and roquoBt of thiB Honorllblo Court that It gront them
permilllllon to omend tholr AnBwor ond Countl'lrclllim, previouRly mod In thlB motter.
Derondantll alBO Beek pormJBBion to join two CountorcluJm DefolldlU1tll, ',\lunod III tho
att/lChed propolled Anlendlld Complaint, Dofendontlllleok permillllloll of tbo Oourt to
me tho ott/lChed Amonded Anllwer ond Counterc1llim, with Counterclaim Defendantll,
for tho following rOMOlllI:
1, A Complaint Willi llIed In thlll matter on Augullt 23, 1996.
2, An Anllwer and Counterclaim Willi med on November B, 1996,
3, No Preliminary Objelltlonll have been mod In thlll matter,
4, No formul dlRcovory hOR tokon plOllO In thiN lIloLtor, Inltlotod by olthor
Plwntltl' or Dofondont.
/), 'rho dlNputo In thiN CUllON InvolvoN 0 clllhn by tho PlwntUT, BUlItlon
HOlUoN . MochonlcNburg, Inc., thut tho DofonduntN OWl) PlwntUl' odditlonul monuy for
conBtructlon of 11 hOlllO, Tho Dofolldontu cluhn thut tho hOlllo WUII dofolltlvoly
cOllBtruotod, and thnt thoy lU'O ontltled to dlllllugeR duo to poor worknl/llIRhlp.
6. '1'he propoNod umonded ploudllljJ ReekN to lllllond the Oountercllllmln
the following rONpoctNI
u. '1'ho ProNfdont Bnd Vlco.ProNldont of PlwntUl' BUlltlWl HomoB,
lnll, aro added UlI Oountol'cloJm DofonduntN, '1'ho Amendod COlllpllllnt IncludeB
avorlllentN UlI to the porNonullnvolvOlll/mt of thoN!! IndlvlduwN In tho contr/lCtlng for,
ond conlltructlon of thlll homo.
b. Evon though the dillPuteln thlB callelnvolvell the construction
of a new hOUlO, Defendnnts' prior counsel did not rWlle In the Countorclwm IUl,Y
wlegatlon of brench of wlU'rwlty or Implied wnrrllnty or wlU'ronty of habitability, Tho
lllUended pleading doell 110.
c. EVlln though the DefendontN' pOllltlon In this cue bu been that
Plwntlfl'1l ncted outrageouBly, lllld that the Dofllndontll Ilhould bo awarded punitive
dlllUllgeB, Defendalltll' prior counBel did not rWlle IUl,Y such clwmln the Counterclwm,
The lllUendod plending does BO.
d. Even though tho DefendontB' pOllltlonln tbill cue hUll been that
Plaintlffll frnudulently Induced DefondontB into entering Into a conBtructlon contract
which the ngentB knew could not be porformed DlI written, DefendontB' prior counsel
II, t\dmlttlld, By WII)' of I\1l'thor 'lIIBWOr, tho Oofl/ndnntll do not
waive tbolr rltrht to 1110 lllllotlonllooklng dlllmlllBI11 of thll nation on tho blllllll
of forum non aonvonlunll.
O. Adnlitted. By WII)' of furthur unlwor, tho Oofondllntl do not
wllivo tholr rlsht to llIe lllllotlon looking dlllmlllllnl of thll nation on tbo bll/lll
of ['Drum non aonvonlonl,
OOUN/l' I
BRElAOH OF CONTRAOT
0, Tho llvermontll con till nod In pp.rogrllphe 1 throush 0 of tbJI
AnlwlIl' and Oountllrolllim W'O Incorporntod horoln by reforence Il/Ilf 1\1U,v let
forth,
7. Donlod. Tho contrllct attnohod to PlllilltllrR Oomplalnt doel
not conRtltuto tho olltlro clllltrnct onto rod Into by tho portlol. A 1\111 nnd
complete copy of that contract II IIttnc:hod horeto. '1'ho avormontR contained
In PlllilltllrR porograph oro I\1rthor dOlllod, III thet the COIlRtructlon
AlJl'eoment WIl/I Rfgl1ed by or 011 bolllllf of Plnll1tHT 011 Augullt 4, 19015, nnd It
Wllll prollel1tod to the DefelldwltR fOl' their Hlgl1ature 011 AUguRt 8, 19915, two
(2) houl'll prior to tho tlnto they woro Rchodulod to bl'lprd Wl nlrplllllo to
return to their honteln the Federnl Republic of Germnn,y. ThlR Rchedule Wllll
known to PlnlntHT al1d Oountercll11m DefendnntR. PortlonR of tbo contract
Wlire executed on AUguRt 4 IU1d portlonR wero executed on AUguRt 8, 19915.
By wIlY of further IU1Rwer, PlllintllT IU1d Counterclnim DofendnntR were all
cognlznnt of t.he fllct that the property upon wbJch the home WIl8 constructed
WWI pW'Uhlllud b)' thu Oul'undunll hUlJlIUIU It II 1lllll1lKIIllUN to ulld llbutllllB
thu propurt)' of rUlllUYUI Ill' thu llul'llndllllll, 1\'1111I (Jul'lIIun)',
8, Adlllltlud, II)' WI\)' III' nll.thul' UIIHwur, ullhllUHh rul'urrud to UI
"ow'lllr" ulldur thu lurllll Ill' lhu OllllHtl'ullUlln AKI'Ulllllullt, thu OUfUlldlllltl
Illlllllot bo tho ownurK III' thu hlllllu UIIlIl thu PlulllLIII' ulld OoullturoluJlIl
OofolldlllltN UOllltrllllt thu hlllllU III 1I1lclmluIIllll with thu Hpllulnllullons of thu
Oon.truothm AlIl'uulIIlllllulldlhu IIllfulldunlllllHl'llU lo puruhulo It,
0, Adlllltlud In Ilurlulld dUll Iud In purl, It II udmlUud thut,
bWlud 011 thu rupruHuntllllllnB III' PlulnUn' und Ollllllturlllulm OUfolldlllltl thllt
tho homu WIlH BuhBlllntlull)' llllnlllllllu, undlhu I'uot lhut the Oofolldllntl hlld
alrulld,y pllld 'l'wll 1llllldl'Ullund 'I'hl'uu 'l'hIlIlHund, tluyun Hundrod Ilnd Fltl)'.
Flyo Oollun 1$\l0l1,7M.llll) hI 1'llllnlln'IInd ()Iluntol'llllllm Oofundunls for tho
cOIIBtruclloll of thu hll/llU, lIul'undunll hUKun uHlnll thu homo In Mil)' of HlBO,
OYOI' throo (tl) nlllllthll ul\ur lhu dlllu llMl'uud lo undol' tho ConBtructlon
All'oumollt for 1l0mplut!lln Ill' IlllnHlruut!on Ill' tholr homo und OyO (II) lIIonthB
Ilf\or tho duto UlIl PllIlnLIIT und ()lIunturll(uhn DofondontB orllll)' lldvlsed tho
Dofondontl tho hlUnu Wllllld bu rlllld)' for ollcuponc)'.
Whuthur thu hlllllU WUB BubBtunllulJ)' complotod 118 of May 1990
IB UlllBulllllnuluBllln tll whlllh no rUBponBlvo ploodlng IB required, To tho
oxtUllt u rOlponBU I. roqulrud, It II donlod und It IB ovorrod to tlll/ contrary,
thut tho 111111I0 oonluh!B nUlllorOUI Bubstunlllll dofoutB, both lotent und patent,
und WUB oonBtrullled llontrury to tho tormB 1U1d cOllditlolls cOlltwnod III the
COllllruollon AlIl'uUlllllnL.
10, DOlllod, PIIIIIlWr IIlld ()oulltol'clulll1 Dofondunt~ hllVIl fullod
tUllonRtruct tho hOlllo pUl'~uunt to tho Conoll'ucljon Agl'oolllllllL und III 11
wOl'klllllnlllto 1lI11nlllll' bOCUUHII It contulnH lluhHf,unLlullutont ulld putont
dofolltR, und hUR I'ulllld lo HUtlHly ouch und OYOl'y obllllUUOIl undol' lho
OonRtruullon Agl'oolllllllL,
11. Admlttod, By wuy of I\n'lhol' UllRWOl', Plulntlll' ulld
Ooulltorclu/lIl Dol'olldulIlH buvo dOlllulldod 11IlYlllont. 1'01' lJutRtulldlnllulIIlluntR
duo ll11d owlnl{ to PIIIIIILlll'lhllll tho Dol'olldlllllH, 1I0twitbHl.lIndlllH t.ho fUllt
thllt, ulll'oqllll'od ulldol' lho COlIlll.nlclioll AlIl'l!Olllolll., lho 1l0f'0Ilc)UlltR did not
llpprovo III Wl'lllllg tho illcUI'l'illll 'If uddlLlolIlll OllJlUIIIll!O 1"11' cOl'lul1l ullllluntR
dOllllllldlld ulld tho hOlllu wuo 1I0t. CIJIIHl.I'IICl.od III COllfUl'IlIUIICO wllh tho t.orlllR
lUld cOlldltlllllollgl'ood lo bolwllOlIlho JlUl'l.ioo UIl cOlllulllOd lhol'olll,
12, DOlllod, 'I'ho UVOl'llIOlll clllltuflll!l111l Jllulnllfl'll \1 12 IR Il
1l0111l1uRIIlII of Illw lo which 110 l'OIlJlOlllllvlI ploudhm III l'u'Iull'od, '1'0 tho oxtont
Il rOHplllllllvo ploudllll{ ill I'o'lllll'od, tho Ilumo III lhol'ufol'o dOlllod,
WHEIUlFORE, lho lJofondulIllll'OHJlOctflllly 1'0'luollt thut lhlll Court
dony judgmollt III lilvOl' lIf Plufnlifl' BUHtiUII HOIllOIl, Inc" grullt Judglllont In
fllvor of tho Dol'ollduntH, ugldllllt tho Pluflllill' Ulld COllnlol'c!uflll DofolldutltH,
and grant Iluch olhol' rolfef UIl muy be JlIllllllJd propel' IIl1doi' tho
IllrllumHtllllcoH,
COUN'I' II
UNJUST ENRICHMENT
l(j, The I1VermentH contu/ned in tho Defendlllltll' \11 through 12
Qf thlll AnllWl/f IInd CountufllluJmlll'l/ IneOl'poflltud hl/rl1ln b)' rofl/rolleo 11II11'
lUll)' IIl/t fQfth,
14, DQldl/d, '1'ho lIYl/rll1l/lIt 1l0lltllJlIud III PluJlltlll'lI' 14 11111
oOllolullloll of IIlW to which no rQllpOlllllYo pll/lIdlnQ' III ruqulrcd, '1'0 tho Ilxtollt
11 fOllpOllll1l III fllquh'od, thu 11111110 III Ulul'lIforu dUlIlod, and It lIS ayorrl/d to tho
1l0lltrlll')' thl1t tho Dofl/ndl1l1tll hl1YI/ not b01/1l ulljUIIU)' I/nrlehod In thl1t thoy
hl1ve puJd PluJnUff I1l1d COllntorcluJm Duflllldl1lltll oyor '1'wo HUlIdl'od
'l'houlIllnd Dolhu'lI ($200,000,00) for 11 homl/ that Willi Ilot eOlllltructod within
tho tlmo frlllllO or to tho IIpoclllelltiOJlII olP'uud to undor tho COlllltructfoll
Agreolllullt, IIllleo It eOlltllJllllllullloroullllublltlllltllllllltollt llnd plltollt dofootll,
1/5, DOlllod, '1'hl/ llyorlllollt eOlltlllllOd III PluJlltlfl'1I ~ 1/5 III
d,mlod, llnd It III ayorrod to tho cOlltrlll')' thl1t tho Dofolldalltlllll'o 1I0t III
POllllolllllcm of thlllr hOlllo III that tho Plullltlff I1lld CoulltorcluJm DofondlUltll
hove fnllod to 1l01llltruct tho hotllo to tho IIpoelllclltlollll cOlltnlnod In tho
Oonlltructlon AIl1'OOlllollt,
WHmRml~ORm, tho Dofolldllntll rOllpoctfuU)' roquollt that thlll
Oourt don)' Plnlntlfl'1I cluJlIl for unJullt ollrlchtllOllt alld IlWlIl'd tho DofondlU1tll
cOlltll, Ilttorllo)'1I foos and llll)' othor cOStll thlll Oourt doollls approprlato In
dofendlng thlsllctloll, llguJnllt tho Plnlntfff IUld Coulltorclnllll Dofolldlllltll, I1Ild
that the Court grlUlt lIuch other rollof 011 IIIIl,Y be jUllt and proper under tbe
clrCullllltl1llces,
OOUNTIllROLAIM
COUN'l' I
131UllAOH Ol~ CON'I'I1.AC'I'
10, Tho IlVUrmUnlN llonllllnud In nufundllnl.'" 1 throush 1/5 of
thl. Anllwur Ilnd Oounlorclllllllnru Incol'porlltcd huruln by rufurolloo lilliI' t\dly
lot forth,
17, 'l'holllllll R, Uotlll III 1111 ndulllndlvldunl, dolnr hUlllno.. Ilt
/5821 LlngluNlown Il.d" 111l1'I'INhurl(, Dnuphln Oounty, PonnNylvllnln 17112,
Ilnd ho rUNlduN at 18110 Mnrllut F.Itrul/t m"lundod, Mlddlutown, DIlUphhl
County, PonnNylvnnlll,
18, llJugono IJ, BIINlInn IlIlIn IIdultlndlvldunJ, dolnll bUNhlUNI Ilt
0821 Llnglultown Rd" 1'lnrrlNhurg, Dlluphln County, Punnllylvnnln 17112,
IlIld ho ruuldoB lit 41325 Wlnthropo Drlvo, 1'lnrl'IBburg, Dlluphln County,
PlIllnBylvnnlll,
10, At tho tlmu tho pnrtluB IIntorlld Into thll contrnllt which IB
tho Bubjoot or thlll netlon, Ilnd throughout thu counu of thll conBl1'uctloll of
thlll homo, Thomnll R BoLlII, nlllUud 011 n Countorclllim Dofundllnt, WIUl, or
held hlmBulf oUtlUl Vlco.PruBldent of PlllintllT, Bnstlon HomoB, Inc,
20, At thu tllllo tho portluB ontorod Into tho contract whloh Is
tho Nubjuct or thlll netlon, nnd throughout tho counu of tho construction of
thlB homo, Eugsnu J, Bostian WIUl, nOlllud IUlIl Counturolllim Dofondant, held
hlmBelf out DB Prollldont of Plllintllf, BllBtllln HomulI, Inu,
21, 0) Durlnlf thu contl'l1IJtlnlf llnd llonlltructlon plUllIUll
of thlll hOllie, '1'110111011 It. Bottll llnd mUIlOno,!, 1311lltlllnl
11, llotlvoly llnd pllrllonuJly pllrUclplltud In thu nUllotlotloll
of tho contrllct botwoon tho plU'L1olll
b, l1IJtlvoly llnd porllonuJly pllrtllllpllt/ld hI the con.truutloll
I1Ild BupeNIBlon of conBtructlon of thu hOlllo,
c. lIctlvoly nnd porBonuJly plU'tlulpntod In later attomptll
to obtl\.lll pnyhlentll from DofundolltB, In o"chwllfU for their lIllIklnllllllrtoin
promJlloB to tho DofondlllltBI Wid
d. netlvoly llnd pononolly PlU'tlclPlltod In douhllon.
Involvlnll thlll hOIllO, ltll dOBllln IIpoclllclltion, tho obtoinhlll of 1Il0torluJlI, the
obtoinlng uf permits, nnd dotormlnlng whothol' tho PlaJntlJl', "lllItlllll Hamel,
Inc., wlllIllCtlng In occordanull with tho conttllct.
22. Tho PlalntUT llnd Countorcllllm Dofondants o/P'ood to
construct a homo for Dofondontll IlCcordlnll to cortllln Bpoclllclltlonll Bot forth
In tbe contrllCt, I1Ild to dOBIgn tbo homo ItBolf,
23, Tho contrllCt botwoon tbo plU'tlos IncludoB tbo documont
attllCbod to PllllntUrB COhlpllllnt, ontlt1od "Construction Agroohlont," alld
signed by tbo PlU'tlos, lllI wollaB VlU'loUII ottachmontll, Including all
"Addltlonlll Work" attllChhlont, o"ocutod by tho plU'tlell on 8/8/05, a
"ConBtruction Tlhlll PII1Il," e"ocutod by tho PlU'tioB on BI4I05, a "Bpoclncatlon
Bheot," e"ocl.ltod by the plU'tioB on B18/04, I1Ild ton pllgOB of 11" " 14" delllgn
pll1lls, ollCh pago having boon o"ocutod by tho plU'tlos on 8/4/04.
24, No IlIdopolldont Ill'lJhltullt Wl1l1ll1vulvud In tho dOllfgn uf thlll
bOlno,
20, Bofol'O olltorlllK IlIto thlll contrllct, Dul'ulldl1ntll worollhown 11
modol homo conlltruotod by Plllllltlll'l1l1d OounturclwlIl Dufolldllutlll1nd thlll
hOlno Wlll ullod I1Il1lnodolll'Olll which PlwnWf llnd Oountorolahn
Dofondantll dOlllgnl1d tho hOl11o Intondod for Dofundantll.
20, PlwnWf and Oountorclahll Dofundl1utll havo fwlod to
OOlllltruot 11 homo for Dofondllntllln llccordl1nCIl with tho tormllllnd condltlonll
contl1lned In the Ol)llllh'uctlon Agreel110nt of tho plll'tles, Including but not
IInuted to, Defondllntll' OXPl'olllll'oqulrelllent thllt tlmo wall of tho ossonCQ.
27, '1'0 dlltu, tho home construction roml1lnlllncomplote,
Vlll'lOullltomll which Dllfondantll hl1Vll oxprllllsly dellcrlbed to Plalntlll' and
Oountorclulm Dofllndunts us noodlng ropwr, hllltullution, or modlncutioll, 1ll'0
not complotod,
28. Plwlltilfll and Oounterclwm Dofondunts' construction of
tbe bomo contains numoroullllublltuntiulllltllnt aud plltont dofocts, Including,
but not IInutod to, failuro to locllte tbo bome on tbo prupol.ty In IlCcordunce
with tho spoclOcutionll of Dofondautll und tbe sotbllck roqulromontl5 of the
local zoning codo, aud failurlJ to construct In 11 stundlll'd, or workmanlike
mllnner, the foundlltion WId oxtorlor components (including drlvewo.,y und
Ylll'd lighting und posts), glU'nge, Intorlor spaces und utilities,
29. Tbo lIublltuntiul defects which exist In the bomq, und
Plaintilfs and Oounterclaim Defendants' failure to construct the home In
I\UCOrdllllco with tho HpuulllcllllonH of thu l)ofundIUltll, tho locul v'onlng co do
llnd tho OonHt,'uullon Alll'oulllunt huyu l'Olldurud thll homu unnclluptllblo to
DofulldllntH, lllld hllYU .'undul'ud thu hOlllu un/lt /01' ItH Intundud pUI'pOHO, Thu
dufolltH mUHt bu rOlllodlud ut Pllllnllfl'H llnd Oountol'r,ll11lm Dul'ondulltH'
OllponllO III ordul' 1'01' Dufunduntllto ogl'oo to purchollllthu hOlllO,
30, DofondlllltH ullthnllto thlltthu CtJlIt to I'umudy thu lIUbstlllltlut
dof"ots Is III UllCOHH of 'l'wo Hundl'od 'l'hoUHllIId ($200,000,00) DolIUl'H,
31, A. pl'ovldod 1'01' III tho ConHtruclloll AgruOllllll1t,
notwithstanding Pllllnllll'H und Counturcluhn DofollduntH' oll'ortH to complote
tho conllh'uolloll within tho r01lulrud thnofrolllo, bocuulle conHtruotlon WWl
not cOlllplqtud within 1I111 (6) 1I10nthH ll'Olll thu dnte of COll1lllenllOlllont of
cOlllltructlon, the contruct pl'ovldell 101' tho ull10unt of'l'hlrty ($30,00) Dollnrs
por dny for enuh dny nJ\or HIx (6) monthH thut the home III not comploted,
32, Pllllntilf nnd Counterclaim Dofondnnts bognn ollcnvnting,
commencing conlltrucllon of the hOl11e on or obout September 20, 199/5,
Howevor, Pllllntllf ond Counterclnllll Dofondontll foiled to complete
construction within six (6) monthll of thnt dote, or on or MoUt Februnry 20,
1996,
33, Tho home remains Incompletc.
34, At no time dJd the Dufendnntll eycr ngreo to, or conllent to,
IUl olltonlllon of the lllx (6) month deodllnc lItntod In thli controct,
3/5, Plnlntilf nnd Oounterclnlm DefendlUlts obtlllned uti
necesllnry permits for the conlltructlon of thlll home,
Bll, PluJlIUlT Ulld Oounturollll/ll Dul'ont!ulIls wuru rospollslblu for
dlllermh\llllllhu ph)'slcw 10cuUoll of thu hO/lllllo bll l!OIlSLJ'uollld, IlOllslstllllt
with Bouth Mlddluloll 'l'owllllhlp suthllol, Ullt! othur ruqulrU/llUlltll, Illld
COllllllltollt with tho tOl'fIIS of thu oOlltrllot,
B7, PlullltIIT Illld Ooulltul'olwlll DofulldlllltS cOllllLJ'uotud thll
foulldutlon lit ulocutlon wlthlllthu sldo )'urd sutbllck III'UU,
BB, 'l'hll hnpropllr founduUon 10l!nUolI fOl'cud Dufulldulltll to hllVO
to decldo olthor to requlru thnllhu foundnUolI bu IlIlod, nlld cOllstruuUon
begin unow, or lo nttomptto obtuJlI u vurlnnoo frolll tho 'l'OWIIShlp,
BO, 'rho lllUnll of tho foundnUon nlld rubulldlll/l of tho
foundntlon Wllll not u fonlllblfl soluUon to thlo 01'1'01' bOl!lIuSO lhoso ucta would
cuuso substulltlal dolll)' nnd thu)' would potonUwl)' CIIUSO tho new foundntlon
to be locllted on unstablo 1P'0und,
40, The 'l'ownshlp pluced ustop work order on this proport)',
once tho Improper location of tho hOfllo WUI dlscovored,
41, For a substalltlw porlod of thno, PlnJnUIT nlld Ooullterclnhn
Defendants conconlod from Dofolldantstho fnct thut tho foundation hud been
Improperl,y located und thut n mtop work ordor had boon ontorod,
42, Defondants ultlmntol)' obtulnod 11 vurlunco, wlowlng tho
foundation to romuJn whoro It Wl18,
43. Tho nocosslt)' of obtnlnlnllu vurlullco cnusod unnocesslU')'
delll)' In the construction of this homo, due to PluJntUl's and Oounterclwm
Defendants' wrongfulllctlons,
44, 'l'hu IIUIlUNNlty or llhtlllnlnK 11 VIII'IIlIlIlU lluUNl/d unnl/cuNNury
'''pUIIIO tu Oufundllllh, who wuru I'uqulrud to obtuln 11 NUrvl/Y, und to PIl,Y fUUN
fur 11 vllrhlllllu lIppllullLlon, 'l'huNU I/Kpl/nNUN IIru In I/KCONN 01' Onu 'l'holuund
($1,000) OOIllU'N,
41l, 'l'hl/ mlNloclIUon 111' Ull/ foundllLlolI 1'l/NultN 11111 Nldu YlU'd
lU'OIl which I~ too 1l1l!'I'OW to ulll1w 11 lUturu drlvowll,Y to bo cOIINLrulltod, for
.Ide olltrllllllo to Lho homo,
46, 'l'ho ol'lllinul plllnN OllccuLud by thu purLloN NJloclllllully
Inoluded 11 hoo.dor III tho homo, which would wlow for IllUturo Nldo SllrllSo
IInd IlCCONN frolllll lUturo d/'lvowll,Y Lo Lho Nldu of Lho homo,
47, PluinLlIT'N und Countorcllllm DofundllntN' lluLlonN, In
Improporly 10cllLlng tho homo on tho propo/'ty, hllvo rONultod In 11 ChlU1SO of
tho Intlmdod UNO of thiN homo, In thut tho option of hllvlns 11 Nlde SlU'1lS0 II!
no lonser pOllllblo,
WHElIUJFORE, OofendllntN domllnd dlllllllSON IliwnBt tho
PluinUff lUld Countorclwm Dl!fl/ndllntN, WI followB:
II, An Illllount In OlltJl/NN of $200,000,00, roOl/cUng
dlUllllil/B rl/Bultlng from PlwnLllT'lI llnd Countul'clwm DofundllntB' fuiluro to
porform the contrllcti
b, Thirty ($30) DolllU'N por d1l,Y, dllting /'rom Ji'obrulU')' 20,
1996, nnd contillulng through tho dllto of judgmont, roOoctlllg tho Into
penulty of the 1l0ntrl11ltl
c, COl!tl! <Including flllng feol!, ollportl!, Blld othor CONtI!
hlQUrfed to pur.uu OUfU'ldllnts' Inturust In this Illllttur), and ..llorno,ys fool'
d, Such othor rulluf aB JJll.l,Y bo Just and p"opor under the
olroum.tanoo.lllnd
u, Intorest on tho amounts spolllllud abovl/,
COUN'l' II
INOIOI!:N'l'AL AND CONSEQUJJJN'l'lAL DAMAGES
48, Tho llvorlllontsllontwnud In Oofondlluts' ''II 1 thl'oulh 47 of
thil Anlwer llnd Oounturlllwll1l11'O Incorpol'llted horoln b,y roforunllu llIi It' fully
let forth,
49. As pI'ovldud for tho Construction Asroolllont, PlwntUl' Wid
OounterclwJJl Dofondauts ullcourlllll/d Oofundllnts to ship furnlturo from tho
Fedorlll Republic of Oorlllllll,y nlnot,y (90) dl.l,Ysllftor COlllllloncomont of
ccnstructlon, and Plwntlll' ond Oountorclwm OefondWltB would pormlt thom
to storo It In tho gl11'olo of tho homo,
150, In Decombor 19915, Dofondlluts shlppod tholr furnlturo,
howover, beclluHe of PloIntUl'sllUd Counturclo.lm Dufcll1dl111ts' dell.l,Ysln
construction, Defondonts woro not oblo to st.ore their bolongln,s In the home
and werO forcod to make oItel'l1lltlve storllge I11'rangomonts, which resulted In
domllgos to tholr propert,y,
151, The cost of the oIto1'llotlve storllge I11'rOnlemontll Wld
domllges to Defendllnts WOllin O:ICOSS of One ThousWld ($1,000) Dolll11's.
152, From thu communcumont of construction to the present
timer Defendauts wure forcud to trovel to tho United Stotus on at least two
/53 1.11' thiN AIlNWI.lI' IInd OQuntl.lrOlllllllllrl.l InOOl'PQrlltl.ld hl.lrl.llll by rl.lfUI'l.l11lJIIlIJl
If rul~y Nllt fQrth.
M, AN IIn InducUllllJlltto Dufl.lndllnh' Ilnll'Y IntQ thl.! lJDlltrllot 1'1.11'
cCIlull'uoLlQIl {II'thIN hOlllo, PlulntUl' ulld CQuntul'cluhn I)ofolltluntll oll'l.lrod
cl.lrtllln OllprUll1l WIII'l'lIl1tloll, vol'lllllly unt! III wrltlng, l'ul!lIl'dlng thll qllullty of
lUutl.ll'Iu!llund worltlllulluhlJlof conutrucl!on, Including In HOIllO Ch'cullIlltllnlJON,
thl.lllntlclplltl.ld Ilfu of ululIlcntllllfthl! cOllutructltlll of' hill hOIllU,
/)0, l)ofulldllUtl1 rlllll!d UJlOII tho l!XllI'OUIl wlll'l'untloll In 1.1 II tlll'l ng
Into tho contl'lIcL whkh 11.1 thl! IlIIbJor)L of Lhlo 1It1IlIll!OU, IInd In CQnllllUh1S tn
PIlY UPQn IInd ubi do by thu ll!rlllHOf thl! t:olltrlld..
/)7, Pluintlll' ulld Counturdullll I)ofondlllltlloll'or tholllllOlvOB out
tQ tho gOIlOl'll! public, nnd IlJll!cillcully did IlU to thu Dufulldulltll, lIll
oltporlonced lInd highly Illtlllud In tho l)onlltrucllollof IlUW hQIIIUll,
58, Dofonduutllrollod upon thu IltuturJ oxpol'lllle 1.11' PluillUll' und
Oauntorc1nilll Dofoudllntll, lu untorlull' IntQ tho canLl'ucL which III tho Ilubjoct
1.11' thlB Iltlgutlon,
50, Dofenduutllrelled uJlen tho Plointlll' uud Countorclnim
Dllfondllnlllta conllh'uct 11 hemo to the IlpoclncuUenllllgroud uJlon ill tho
CQntrllCt lIud te coulltruclu hOlllo III cOllfOl'llIl1llCe with pl'evuillng Iltll11dl1l'dB
1.11' tho homo COllllLl'ucUonllldulltry,
60, Tho hQIIIO which WUII CQlllltructod cOlltuinllllUlllorOUN
dofectll 1.11' mntorlulllllnd worklllullllhlJl which vlQllltQ tho oxprOll1l nnd implied
Wl1l'rllntloN govllrlllug thill proporty, SQlllll 1.11' thollo dofoctll nil'oct Defondll11tB'
IIbUlt)' to OfJoup)' IInd Utl\l~1I thll hOlllo 1'01' ItN Intundud purpONUN, ThoNo
d'foot. Inoludu, but llru not lhnltlld till
II, V'IlUndIlLlotlllIlWN, Inllludlng Ill'ullldng IInd Nuttllng of
foundation, lUld Inltollotlon of unllllhtl)' hlllhwo,y.t)'pu oOlllont blU'rlorl, 11111
mfllllll of ottemptlnll to romudy thu foundution flUWI, 'I'ho foundution I. Plio
hllulllted with hnpropur lIIuturlPlN,
b, IlIIpropor dOlllPI und hlltPllutlon of lood bOlU'Inlf I.
bl/UmB,
c, Roonng dOfoctfl, cllu81ng wutur to ontor the hOIllO,
Including a .Ignlflcont luuk Imlllodlutol)' ovor the 1II111tllr bod In the IIll1ltflr
bodroom.
d, hnpropor InBtPllatlon of chlmnu)',
u, Oofulltivu dosfll1\ IInd InBtPllution of blllomont IUld
lowor floorN, clluslng wlltor Inflltrlltlon Into portions of thu homo, dlUl'lpne..,
IUld lolnollll during ooldor months,
f, V'nllure to properly lnsullltll tho rosldonce throughout,
g, IncomploteneBII of drlvowny to publlo rood,
h, IlIlpropor UIIO of construction lIlatorlwlII on.slte IlII,
caullng lottling l1Ild Inadequato ground strongth,
61, Defendl1llts havu lIotlned Plllintllf wId Counterclnllll
Oefendant. on numerousoccl1810na of the defoots referenced above, 118 well 118
numeroua other dufects, l1Ild these dofoctll have to date not been correctod,
of tho hOlllll,
b, Wlndowll woro /lot to bu wood, but worll to bo vinyl.
II. '1'ho top of tho liJundutio/l WIUl tu bo throll foot hlshor
than tho rond.
d. Folt pupor Willi to bo Inlllllllod botwoon tho Ilut LInd
'Daond aour.o of blollk, Ilnd tho olghth Ilnd nlnlh courllo of block of tho
fllundJltion.
O. '{'hll bllllomont Ilnd the gW'lIgell wore to hllvu Iloor
d.\'Binll, droinlnB' to tho outlllde,
1', 'l~ho I'ounrlutloll plllll jJl'ovldod that tho cOlllent
foundation Iloor Willi to bQ IIlopod Iltll two porcollt grudo to IlIlUmp PUlllP
hlllldo WId tho gurugo nOOl'1I woro to be II10ped ut u two porcont grndll to thll
IItrout.
g, '{'ho end of the homo fllelllg the 1I0lghborlnB homo was
to Includo a concrete hellder fer Inotullullon of u futlll'e nino,foot gUfllgo door,
h. All tolletll 1'I0l'O to bo twonty !ncholl in height,
I. All dOOl'1I WOl'O to bo keyed throughout the houlle lo 11
IIlnsle kllyed BYBlelU,
j, Mollon detoctor Iightll were to be inBtallod at VIltIOUB
pof,ntl of the oxtorlor,
k, '{'ho holUo WUII to bo cOllBtructed In 11 fOBhlon, wld
10llation on thlllot, 10 III to allow 11 future drlvewu,y betwoen the holUo IlI1d a
nelshborlns home,
I, Shlnllloll wuro to bu thIrty YUill' lIhllku lIhlnlllulI,
615, Wllllo Pllllnlln'llnd Oounturllllllm Dololldlllltllllll'l'lll,ld to
mlln)' of tho IIpUIlIO~llllonllllut forLh llboyu, lllld oLhunl1l tho 1I01ltrllllt, thu)'
dld 80 ulthor wIth no Intontloll of porfol'nllnK /III work nOCOIIII/lJ'Y to moot tho
dOllllJnlllld Umul'rlllllll IIpuclflcaUonll for Lhl" contrllllt, or lit 1I0mo point In
thno dUI'I.ng tho purformllnllu 01' thlll conLlIllL, thuy b0I.111mU llW/lJ'O that thoy
would not perform 1111 work 1I01.101l1llll'Y to 1II11Ut tho do.lin and thllet\'nmo
spoolOoathHlII fOl' thlll contrllot,
66, PII11nWf IInd CountarcluJm Defondllnh olthor mudo these
llnd othor matorllllmlllreprellulltllUonB to tho Dofendantll with tho Intont that
tho Dofondllntll would l'llly upon thom by entorlng Into tho varlouB
l.1olnpononts 01' tho cOIIBLruollon controcL, or WI tho Plwntlll' and Oountorolo.tm
DofundllntB bocllme awore that Lhey would not perform WI contructod, thoy
conthlued to maLerlwly nllllrllprullont their IntenUonll, cllulllng Defondl1lltB to
continue to PllY on Lho contract 11l1d to rely upon PlwntllfB and Oountorolwm
DofendnntB' Btlltod IntonLlon of performing on Lho contrllct,
67, '1'ho Dofondl1llLB did In fact rely upon tho maLorlw
miBropreBontatlonB of tho Pll11nLlIf lUld Countorclolm Dofondl1lltB In tho
DofondantB' decillion to ontor InLo and conLlnuo Lo poy on lUld roly upon the
controct,
68, As a rOllult of Lheso mlsroproBonLaLlonB, DofendlUltB
lIuBtwnod Bubstl1nLlal damagoB,
69, At VorlOUB LlmOB af\er ontry InLo tho contract, PlainLlIf lUld
Oountorclohn DofondontB modo vurlouB prollllBoB thllt thu wOl'k would bo
porformod 11/1 orlslnally prollllsod, IInd thllt no l\arthor BUlliS would be I1/Iked
of tho Defondonts,
7C). In rUBpllnllO to thullo Iltlltollluntll, IInd In rollollcu upon thom,
Defendnnts pllld perlodlu sums to PllIlntllf nnd Oountorclllhn D/lfundolltll,
71, Dofondllnlll Il/l/lurl thllltho /IUIllS J1l1ld WUI'" not duo IInd
owing ot tho tlmo, nor uro thoy duo now.
72, Dofondlllltll pllld thullo BUlIIll In roUllnco upon lhe
m1sropre/lontotlonll of PIIIlntUT IInd Countorclllhll Dufondllntll, 1lI1d Plalntlll'
lllld Olluntorclllhn Dofondlllltll flllled to purforlllll/l prollllBod Ilt thlll tlmel
moroovor, Pllllntlll' Ilnd Countorclllhn Defundllllll1 contlnul/d to IIJlllort tbllt
moro mOlley WIlJl owing, dOllpltu ourUor prolllllloll thoro would be no l'urthor
roquoBtll for BUDlB dUll,
WHEREFORE, DefondllntB rOBpllctl\ally roquoBt of thl.
HOlloroblo Court thot It Ilwlltd thom tho dllmllgollllglllnllt tho PllIlntlll' ond
Oounterclaim DofendllntB, 118 Ilot forth IIbovl), Including vurlous costs, lllld
that In addltlon, the Defondllnt8 bo Ilwordod punlUvo dl1lllllgos, ottorney's
foes, and [ntere8t on those Illllounts, '1'ho Defondllllts olso roquost that the
Oourt gl'lUlt such othor roller IIJl mil)' be just Ilnd proper undor tho
clrcuDl8tancel,
OOUN'l' v
NlDOLIOb1N'l'MISlUlJPIUJBEN'l'A'l'ION
70, Tho llVllrmoJltBllontwnl.ld In thu Dufondllntl' n 1 thrllullh
72 of thll Anlwlll' ond Oounturlllllhn uro hlcol'porlltod hOl'oln by roforolloo III
If fully lot fllrth,
74, With tho OllOl'clHO of dUQ curll, Plwnun' Ilnd Oountorlllwm
DofundolltllBhould hllvu known, Dr did know, thl\t tho Ilbovo
mJlroprollontotlllllll woro untruo Ilnd thllt thoy had no Intontloll of
porfol'llullS tho work noculIHury, or of obtwnlng tho 1I11ltorlolBnocollllury to
comply with tho tunnB of tho contrllct,
70, Plaintiff IInd Oou'ltorclwll1 DofondllntH mudo thollo matorlol
mJlroprolontutlonll with tho Intont that tho Dofondllntll would roly upon
thom In ontorlns Into and continuing to MOl/ tho tormH of tho contrWlt,
WHEREnrORE, Dofondantl rOllpoctfUl/y ruquuHt of thlH
Honorablo Court that It IIwurd thulI1 tho dwnllgoH ugwnlt tho Plwntlff I1Ild
Countorclaim Dofondalltl, IIH Bet forth above, Including vurioulS COltl, Ulld
thllt In Ilddltloll, tho Defundantll bo Ilworded pUllltlvo dmnagoH, IlttornoY'1
fuol, aud InteroHt on thoso ulUountH, Tho DefendllntB WHO ruqueBt thllt the
Oourt IP'l11lt Buch othor rul/of 118 lnu,y be JUHt Ilud proper under the
cltllumBtl11lcoB,
COUNT VI
NEOLlOl!JNCE
76, Tho IlVOrmelltB cOlltainod In tho Dofendl11ltB' " 1 throullh
,
"
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"rh. Conl:rI\(Jl:or IlhOllld uue bl!lll: oftor:l:u 1:0 clo,nplol:e I:he hOIHlIt in
accordance with I:he al:tachod conul:ruction time plan.
Notwithutanding the forogoing, thu conutruction uhal! bo completed
no llltltr than uix (~I mon I: 1111 trom the dllt" of lJommunollment ot the
wcrk. In the ovent thlll: thlt oonBtruol:ion iu not complltted within
the atOrttellid.".,ulx (61 month Hme perlod, Contraol:or llhall pitY to
lluYltr a $ .jt.L=.. p"r dllY paymont for elloh day lltter llix (61 monthB
I:hllt the hOUfllt 1e not oomplQtod, 'rhe lluyor shall IUJCH!pt payment;
tor the delay in oompletion at tho conBtruotion work an Liquidatfld
dBlnsgoB.
It ill imporative that I:ho Contraotor. B iqn /I StipuJ.nUon I\gn111ut
Lionu in tho Ilttllchoc\ form. 'rhie torm should be fHnd in thll
Prothonol:lIr.y' u Offl'lIl of I:ho CumbodBnd County Cour.thouno nr..J...gr.J;.Q
I:ho commQnoomollt of wor.k on tho houllo, 'l'hnr:n 1u a $10 fU[n<.l--too
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Jaoopsen & MtlkeQ
&~ Ill. High Stregt
Carlisle, PA 17013
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NO POSTAGE STAMP NEOESSARY
POSTAGE HAS BEEN PREPAID BY
Rhoads & Sinon I.LP t ,/ /
AlienI/on: ,~fl ..!iL-
P,O, Box 1146 '
Harrisburg, PA 17108
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VERDICT
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l, /)aatllln Homes, through Itll eIght, (8) bratlchl\ltJ, Ilnll
oonlltructllld hundredll o~ htlmell lIino" Itf,J formation in 1f.J9l, and
opllratlSlll in Oelawal."l9, Vh'glnia, Wellt VIrgInia <lnd ohio, in addition
to Pennsylvania, ('l'ut imony o~ MI.", 13af,Jt Ian) .
4, Def19ndantll, KUl."t and lnoeborg Schu~t~ (hereinafter
"Schul!tusll 01." IIMr, Schuetl7.lI), are ar.hllt IndlvJ,duala with a primal."Y
rellidencl!l in the FElderal Republic oC Ocrlllllny, (Complaint .;1), Mr,
SchuetlE is a retired bUllinellf,Jl1lan with extl!nllivll bUilding and
oonstruction Imowledge and experillncl! acquired through the
ownership and renovation of numerous propertiell throughout Germany,
('l'ellt,\.mony o~ Mr. Schuetl7.),
5, On or about August 4, 1996, Bastian Homes and the
Schuetzes began negotiations for the construction of a home,
(Telltimony of Mr, Bastian, Mr. Botts and Mr, Schuetl7.), Mr, Botts
was involved in the nElgotJ,ations in hIll r;apaoity all Construqtion
Manager and Mr, Bowman was invol VEld as the Salea Manager ~or
Bastian Home II , (Testimony of Mr, Bottll).
6. During the meeting on August., 1996, Balltian Homes
and the Schuetzell established an approximate conlltruction time plan
for the oonlltructl.on of a Georgetown Plan B Custom Home and made
numerous and specific written changef,J to the plans for the home
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ptJ/foro the Conatruation M/l'!tl!IIIt,!Jll'; WI\I.I Uil/lled, ('l'e/;lti/nony of Mr,
Ilotl:/J and Mr, SahUIIl:It/ 1?1alnt:lff' /;I ~:I(hil:>it:. 1, '1'lIb/l .. and 6),
7, on Augu/Jt 0, 199!I, tha construction Agreement for
the aonllll:l:"uation of thfl hOlJlfl Willi al.gnfld by both parties, along with
nn I\dditiQnal Worl( Nonrallpon/Jibllity Supplflmental Agreflml!lnt
(horeinafter "Supplemlllntal Agreement"), contract price sheet, plltio
door literature, and SpflcificatLon Shaet. ('l'estimony of Mr, Botta
and Mr, SchuetZI Plaintiff's li:xhlbl.t 1, 'raba 1, ;I, 6), 'l'he parties
also addod and subtracted various itollls and costs on a o.;parate
sheet to arrive at thll initiftl cost of the homo, (Plaintiff's
mxhibit 1, 'rab 3) ,
8, Pursuant to the Construotion Agretlmont, the prico of
the home was $158,365,00. (Testimony of Mr. SQUSI Plaintiff'a
mxhibit 1, Tab 1). The Supplemental Agresment, covering exterior
site wOl:"k, provided for an initial price of $;13, ;100,00, (Testimony
of Mr, aottsl Plaintiff's Exhibit 1, Tab ;I), Including the changes
made to the original Georgetown Plan B CUstom Home Plans, the
contract: price for the home, as at: August 8,1995, was $181,565,00,
(Testimony of Mr. Bottsl Plaintiff's Exhibit 1, Tab ;I).
9, '1'he SchuetzllB ware to pay for the home in cash and
without the use of a bank, mortgage or other third party,
3
.
('I'utimony of My" Ilottl!l/ Pla\/ltlff'liI Iilllhil:>lt l, 'I'ab l), 'I'hll
cOl'llltr.uation Agreement IiIrovided for It dr.aw I9cheduhl or. lilllymelltAl at
VllriOUS stages of oOlll3t ruet lOll, ('resUmony of Mr, Illl/Jt lan/
Plain\:iff' B Iilllhibit l, '1'1110 1) ,
lO, 'rhe home WIIB to bl!! oonfltruotl!!d on the Sahuetus' lot
on Hedge I~ow [,ane, South MiddletQwn 'l'ownship, Cumberland County,
PennAlylvllnia, ('l'eat imony of Mr, Botts and Mr. BchulStPl/ Plaint iff's
liJ>f.hibit 1, 'rab 1/ Pefendant'ljI Iilllhibit 1),
11. A oopy of the planAl for the oonstruation of the home
were submitted to South Middletown Townehip for. r.evillW and
appr.oval. Another veraion of the plana, with original signaturea
of Mr, Botts and Mr, Schuetz, was produolld at tr.ial and had bllen
maintained within thll aole custody of Mr. SChUlltz, This vllrdon of
the plan contained changes not reflected on the plans submitted to
the Townehip, including notations for a concrete wall in thl!
basement and revised ceiling heights, Thesll changes were not
wr.ittlln upon the plana by Mr, Botta, (Testimony of Mr, Botts and
Mr., Schuetzl Defllndant'a Exhibits 2 and 9),
12, Bastian Homes began excavation for. the hOll\e on or
about 'September. 19, 1996 and completed excavation on or about
4
OctoblSr :I, 1991L on Ol' Ilbclllt 0(1 tCjbrll," 1, If/96, the footorll wQru
poured for thu homo, 1'1\/Ilt.1mony of Ml', llQtts),
ll, On or IIbollt Octobel;" lli, 1995, Mr, llottll falllld window
lInd door looation informati,:m to thu Sohlllttu/J in OQrmany,
Thereafter, on or abollt Ootobur 18, 1996, llastian Homos wall allklld
by M).", Schuet~ to change thll lli~1I of the patio, 'l'he change
required more footen and additional excavation work. (Testimony
of M).", 13ottll),
14, The foundation of thIS homll wall completed on or about
Ootobe)." ;l7, 1996, (Testimony of Mr, aottsl,
16, Puring late Novembllr, 1995, a stop work o)."der was
iSllued by South Middletown Town/Jhip after it was di/Joovered that.
the home was encroaching upon the side yard setback area,
(Testimony of Mr, Botts and Mr, Stoudt), Bastian Homes filed and
paid for a variance on December 1, 1996, whioh was granted by South
Middletown Township on December :20, 1996, (Tostimony of Mr, Botts,
Defendant' /J Exhibit 19), On PeClember :2 1, 1995, framing of the home
began, (Tostimony of Mr, Botts),
16, The placement of the home did not result in any
additional expense to the Schuet2es and may have saved the
(;
,
aOhu6t~~u udditLannl III~PQn~~ by aVoiding additLonal bLuMting Wo~k
if thl! homlll hlld been pl/lOllll,1 whl'fl.'lI it Ilhould havo l:lIium, ('l'elll:illlony
of M~, Ilottlll,
l'1, IllllnedinteLy foUowin~1 thlll grantlng af the vadanco,
M~, Ilottll and Mr, SahuQtl1. met on the prope~ty to talk lIbout changoo
in doo~ Ililtes, the U~lt of oriented ~trf\ndbaard (I1el:tlIinafter "OBB")
instoad of plywood as well ISIl vnrioua bllaement and garage deaign
ahangea, (Testimony of Mr, Ilotts), At this time, Mr, Ilotts told
Mr, Sahuet~ that he would hllve to aign change orderll fo~ the work,
(Teatimony of Mr, Botta), Mr. Sohuetlt alao requested a ohange in
the garage floora which affected the dimenaions of the roof and
porohea and asked fol:' changes to the tlumbur and location of
windows. MI:'. Botts thereafter presented Mr, Schuet~ with a change
ordel:' add~f)ssing these and othel:' ohanges 8B well aa the approximatlll
costa for the changea and additions, but Mr, Bchuet~ refuaed to
sign the change ol:'ders until they were translated, (Teatimony of
Mr, Botta and Mr, Bchuet~),
18, Between December 25, 1995 and January 9, 1996, MI:',
Botta and MI:'. Schuet~ had numel:'oua communioationa ooncerning the
design of the garage, (Testimony of Mr. Ilotts and Mr, Sehuet~1
Defendant's Exhibits 23-36).
a
I'
L~l, On or llbout .TiillllIU'Y &, 1~196, will. bll.l/IIIt11111 II(lll\lIl/l W,11f
oomJ;llllt1nu the fl:olllillg of tht) home, MI,'. Sahllott:r. reqllelltotd two (~)
add i t iono 1 ti ....eplllces, ClIlllI ill9 oclcli t iOllol dlll,IIY IInd lIKJ;lellse,
U ltilnlltely, Mr, IIchuet:r. inlltrU(Jted IltHlt ion HOIIIIIII to ....emove the
frall\ing for l',he fi....llplllo" t"lIqllllsted in the living J,'QOIll, ('l'utilllorIY
of Mr, Botts and M..... Sohuet:r.),
20, On 0.... about Peb....ua....y 5, 1996, nostian Homes begen
mechanicl1l work on the home duril19 which Mr, Schuet:r. mad" many lIlorlJ
changea, including a request for oddltionnl skylights which would
perlllit roof ocoells through the skylightll. ('l'eBt imony of Mr,
Botts) , A ohange order reflect ing these and other chonglti!l and
their approximot~ costs. as well as credits to the Schuet~es, ware
prepared and presented to Mr. Schullt:r. on or about March 6, 1996,
(Testimony of Mr, Sottsl Defendant's I!lxhibit 50), Mr, Schuet:r.,
however, again refused to aign the written change order,
('restimony of Mr, Botts and Mr, SChUllt:r.),
21, On or about March 5, 1996, Bastion Homes completed
the framing of the home and the drywall Was completed on or about
Minch 15, 1996, ('restimonyof Mr, Botts),
22, South Middletown Township conducted a number of
aeparate inspections of the foundation, footers and framing during
7
Lilli IJllllllt , IlJJI: 1<'11I Ill: I:.h" hllilll/ ,11111""11111 11>1 111111411:1011/11 ~Ir. IIIlY nr. ll:/J
~HI l. ld llHI 1:.t~l\I \.tIt Ill/III, I\/J 'I 11"'\11 I, I hIt IIIWllltlh 1 II l.t,I"~H/l1 II t."lIlporllt:y
lI~lI! 1I11r1 \1<!llllJ;hllllIY pl/I'II1I,1: lllJ MIIIIIII ;1", 111'1/1,
IIQ!:lll "1111 MI', H1:nlldl:.),
l'I'I,",UmoIlY IJf Mr,
ill, III "II rl I' I\pl'll, I "'If I, 1 IIn Ill/hlltl!: l'-""J ~)C)9nn l~o mOllill
thah' /:l'II:/Jl!IIII), prllJ/,m/l"l.nlltl IlIlu I:hll 111111111, IIIl thll l/1/11idl] or. till! home
WUIl 1I11P"tllllt lllll,y r,'UIII/) L~'t.II,
l'I'I//ltllJlrillY 11/: Mr, 1I"tl:" and Mr,
IJGhuetl'-I, III IId<lll:llllJ/ II Wlllk 1',111'1111/11 III' I:II~I lIollll!! Willi ootlducted in
I
wllich :Ill ll:t.tlllll WIHlI IIp,"dl~I''d III II plllltlh~lul: UIIO lJul:>l3equently
(ldd r.'HUI 13" by UlIlJt,lll1l ItllllJltIl,
l'I'I//lI'IIJIlIIlY or. Ml:, IlQtl~13 lInd Mr,
lJ(rlllll!ltl'-1 l'lfllllhir.r.'/j ItxhLhU: 1/ '1',lb III,
;11\ , Ml:. Huhlll'l ~ ,tI'j',1 l:11C(lIl1lll:'lt,1 th/;lt Blll3t illn Homell build
a retai,lIilHJ wull pfilrpullrlllllllrll' 1:11 t.hll (Jlll'f\\JI!I and, in faot/ met With
Mr, Ilalll: illll 1111<1 MI'. Ilql:tll lit I"'!nlwy UlJpp 1 Y to rlSview till! lat:ge
l:>lr,wka whL<lh wlluld IlIt "'ltHI. Al't.tl' Ij'II3Lnn 1I lllnnpla of the block,
Ml', 13cllUIiI:If. 11'11'''1/'' 1:0) It /I III/I'l, HIIlllJ'"IUIIlIl:ly, Mr. schuetlil changed
1:1]11 wall r,I'lllll II ntl'llllJIII: linn pl/qmnrHlluL/lr to tile garage, to an L
/Jlluped f!onfi'1ut.'/lttnn Wlltdh III illJ I:IJ<l wall .udl3ta today, Mr,
Ilnatilltl l;fJrJ"IlIlIlallllnr\ thol: Mt:, 11011111)1: If. /lot ut U he thil3 configuration
MI the 1I/l'1lll .mule! lint PI!! IIdt'J'l",II,uLy l Lnked wlth the type of block
IHmrl, ('I'f/lItLmony of Mr. 11IHJI',lllJl'~/lr,1 Mr, Ilottll).
o
;115, lJudnlJ 11 lIIo"ting held on or about '\prU 11./ 1.996/
despite owing, ot this point, appraximatoly $85/000,00/ Mr, 9ahu"t~
agrelJd to pay $60,000,00 to Illllllt IlIn I,tomes llpon a hllndshal<e with Mr,
Illlstian but said he would not pay thl) remaining balance due to
l3ast Lan Homes unt il the home was tlnished, ('1'eotimony at Mr,
Ilastian and Mr. Schuet~l,
26, On or about May, 1996/ Mr, Schuet~ was again
presented with wdtten ohllnge orders by Mr, Botts which he again
rdused t,o sign. The Schuetua begll.n to occupy the premises on or
IIbout May 4/ 1996 and, tollowing the ~lIrty at the home, My., Schuet~
requested additional fi lJ. and landscaping be completed. (Testimony
of Mr. Botts),
27, In June of 1996/ Bastian Homes requested that Mr.
Sohuetz become Cllrront with his payments 01'1 the work alroady
porformed on the home and preaented Mr, schuet~ with a letter from
Mr. Bastian along with a detailed accounting of all the changes
requested, the prices for the changes and applicable credits,
(Testimony of Mr. I3l1l1tian, Mr, 130tts IInd Mr, Schuet~1 Plaintiff's
Exhibit 1, Tab 10),
28. In the end of June, Mr, Schuet~ asked Bastian Homes
to stop all construction on his home, (Testimony of Mr, Bastian
9
IInd MI.", !lOU.II'. 1111111 1'111 ",111I1,1/1 ,t I" '"TIIII\lO! ~ or /IubUClUOnl WOl."k to
bll perf,l')\:lIIl!1d llll 11111 11'1111/1 1.11 f'Il/V'tlllllltl~1 l.!H)1S Ilt I;.he SChUOtitllll'
l"lljUltllt to l"lth"/1Il ,I ),'''11\ 111'/ 1"IUr, ('I',wt lmollY of Mr, Bottll), Upon
till! vllilw ()I~ I,h" 11,)11I11 '/l)lIlhl"I:",,1 1'1'),01' I',ll th" aollllllenOeml!nt of trial,
IIf111tl./'I1I /11'/11111" "'IW 1/111,1,111"'" "I)I' 1',11" 1!1,':llt timlll that llllaking had
1'llmlOlll'l'IlI,1 III 1 hI! IIlillll:lH' Imtll'Ol'llII c19l11ng, appllrlilntly due to
11II"'I'nplll,' lIhllllllllY 1'1,11I11111'/, l'I'",alllll(IIIY of Mr, Botts IInd Mr, Olson),
:.I'), ^)I:hllll"h MI'. tlllhlll!tit Ollnarally refused to sign
wrll;t,fJII 13h'"II,/1'I 1),,1111'11 whllll 1'1'''1111111'.1'1<1 to him by Bastian Homell, Mr,
Ilchutttv. ,H,I 1\1I1',II'II'I~", 'II: 1"'Mlt tlll'l!ll early C/hllnge ordenl covering
~l(j,;.!tJO,OIl of; 1I1,hlH 1111111 J Wfll'k, ('l'ol:ltimony of Mr. aastian and Mr.
Ilott"', Plllllltll"" II I':xlllhl,t 1'1 'I'ob II),
II), Ilnllpll:tl tllU faat that Mr, Sahuetn would refuse to
/liOIl Wr1tl:r.J1I Irllll""'" llrrh'll'll for the ohanges I'nd additions he
rl!qllo/lt.lld liMit 1.111 /1'"11"'11 to undertake, Bast ian Homes r,:ontinually
IICl<)omIll0l1otl!d Ml', Ih!hllUl:it Iltld relied upon his promisl'ls to aign the
fJllflllue rtrrl'H'1I I'lIl'lwl: 1:111111 cella il19 construct ion, (Test imony of Mr,
llotl:M) , 111<1'''9<1, ll: la oUl:ltomary in the industry to cease
','~II~J", rllClI: l':lIl WI\l911 I:hl.!lre are unsigned change orders involving
rlIIJIIUlGIII11: doLLllr Ilmounts, (Testimony of Mr. Nickel),
10
31, ALthou9h 110 settLement has tok~n plaoe on the homu
and dilti!lpitlll the foot that Ilddltiolllll Illll0llntll 111.'11 I'Jtt.LL owing to
I3IlSl:J,an Homes fJ;"QIII MJ;", Sohuetz, 13llstillll HOlllus hall BlJrQlld, in good
faith, to addrQI'Jll a IlUIII)JeJ: of il:lllllll1 Qlllilllo!ld a/J dllfects OJ:
dillficienoills, reflecl:illfj either norllll\l wear and teaJ: or impropeJ;"
oonstruction or omillaionll by itl'J 19u)Jcontrsctorll which Were revealQd
during the inapection of the home conducted prior to trial,
('l'estimony of Mr, 130ttll, Plaintiff'liI li:xhibit 3),
3~, Many of the itel~1I claimed by the SchuQtus and thllir
experts as defects or defiaiencies were not addrel'Jsed by Bal'Jtian
Homes because thl';ly were instruated not to perforlll any further work
on thll home by Mr, Schuet:t. TheSe itelllll arll typical.1y remedied by
Bastian Homes at various intervals followin'il settlement on the home
or through the Relilidential Warranty corporation's warranty program,
(Teliltimony of Mr, Botts),
33, aastian Homes is willing to incur costs in excess of
$19,000 to complete the items as ref.lected in Plaintiff's rexhibit
3, including numerous garage supports, as well ftI3 increasing the
diameter of the support poles to improve thl! structural integrity
of the home, The precise amount necessary to remedy thelle pl:"obLlllms
($19,825) /ilhould be reflected 811 a credit to the Sahuet:tes,
('relltimony of Mr, Botta and Mr, Brogl\nl Plaintiff'lI Exhibit 3),
'11
l4, Uast iall lIonllll/.l has a1ll0 tlHl:'l'tacl tq II $1$00,00 crlSdit. in
f/lVo): of /Ill:', a()hlllSt~ to I:'rtflQot( thl! fullurlS of the gBl:'agl! and
b/;\/.Illll1unt. fl,oors to Pl! sloped 1Jt. ~, \lrllr.lll "HI I.'rlJquulIted in t.he
()Ont~'IIC/l:ual dooumenta, ('I'Ulltill1rmy Qf /Ilr, Ilott/ll Plaint.iff's
m~hibll: 3),
36, /Ilr, Sohllet~ has failed and rllflll!lad to pay Bastian
Homes for the additiol101 work pllrforllled under the CIilI,struotion
Agl:'llenulIlt, invo1.vin9 an IIddttiol101 ~~)), >UI:i, 00 IIbove tha initial
conat.l.'uction Agreement pdo.., of $11\6,361;,00, and to the
Supphmental Agreell1ant, involving all additionul. cost of ~2:2,27e,l;.l
above the initilll price af $23,200,00, on thIS grounds that if the
ohllnge orders for the ohllngen find IIdd It iOlls reqUQsted were not
signed by him, he io not l;'II/sponsJ,ble for paying for it., '!'h.ia is
balled on /Ill", .sohuet\1\' a belief that only written aontraota are
binding, ('!'entimony of Mr, Schuet~). allstian Homllll su",marhed the
numerous and I'lubatant ial ohangua requented and approved by Mr.
Schuet~ in nix. (6) separate change orclera and documented the
invoioas for the additional Supplemental. Agreemfmt work which was
requested for the outoide of the home, (Teatimony of Mr, Bottsl
Plaintlff's E>thibit 1, Tabs 'I, e, and 11), All itllm'" whi<:h Were
olaimed to be part of the oontraot by Mr, Schuat\1\ but whioh were
not oompleted at Mr, sohuet~' 13 oubaequent rllquest wer/! oredited to
12
B,~
M legal authodty t.o Ul.lli'po~t ieu thllo~y oe d8111ogllll,
cOIH1lilal fo~ Q8Iltion HOII\11U ull\:lmitt.lild D IIIQII\Ol'nndU\l\ pdor to tdBl
conoa~ning the fJupsaqllflnt tll10nglils IInd addidona to tl18 hallle as
requested bY the schuet1.es, 'l'hnt. mQmo~andum, whioh demonlltratllll
that QalJtian HOlllell iu ent it led t.o \:le cOlllpelll'3l'lted for the addit ional
work it performed alld connot \:lIS held responsible for delay dalllogell
where the pefandl1nts have cnul1ad the delay, ill inoorporated he~8in
l:>y referenOlll,
III additioll, Ilastiall HOllIes Ilul:>mitlll tho follc;wlin9 liIumlllary
ae the testimony and evidence presented at trial as addidona).
support eoI.' its thnory of dnmagal1, It was established at trial
that Bastian Homea al1d the achuQt7.eS signed a COllfJtructioll
~greement and supplemental Mreemellt for the construction of a home
on the Schuet7.es' lot, ~t the time of signing thl'il contraot in
AUgust 1.995, thQ initial contract price was $1.81.,565,00, rhis
contract pricQ reflectQd significant changes and additions
requested by the schuet7.es on the original plans for the Georgetown
a custolll Home, 'l'he nume~ous and specific changes demonstrate that
Mr. Schullt7. was intense).y familiar and highly experienced in both
res ident ia 1 construction and the construction industry, generallY,
14
'l'llrouohout thl1 I!Itlt Irll conBt ):Ilot iOtl of thl!! II(JI1IIll, Mr,
SchuetlC had nUlllerOUB aOIlIlIlUniCl\tions via faosimile, tolephone IInd in
penon IIIlultingB with lli\lltian lIomes aonael."ning nddltiotlal chilngea
and additiona he wanted performed upon the hOllie, In every CUllO,
Balltian IIOl1leB gav{j an upproximnte price far the work to be dotle or
waB Bimply told to lido it." For every ohauc;Je requelltfld, BlIBt Ian
Hornea proparlld a il/l."ittflll change order rflfleating either the
approxirnntfl pricl115l or, ultimately, actual prices for the work done
and credited the Schuet~eB for work which wea no longer deaired.
lIowever, Mr, Schuot~ typically failed and refulled to Bign theBe
change orderB,
PeBpite Mr. Schuet~'B failure ta Bign chllnge orders ond,
deBpite the additional delaya and expenllle caused by the numerous
changes and additions requeated by him, Baatian Hornea never
threatened to cease conlltruction. Instead, Bastian Homes took Mr,
Schuet~1 151 word that he would eventually sign the written change
orders preaented to him, fit each and every phal5le of. the
conBtruction of the home, BaBtiun HomeB made every effort to take
Mr, Schuet~ and hia word at face value, deapite the fact that
Bigni f icant dollar f igureB were adding up on change orderB and
deapite a company policy, typical in the conlltruction industry, ta
immediately cease work without a cuatomer's Signed change order,
Indeed, Mr, Schuet~ has taken the pasition that he is not
16
respol1sibll'Jl for th'l Ilignifklll'lt <loat/il which havfJ uC(:rlllid due to hilil
requestl!d chunglls IInd additions to the hOlllos becll II 1111 , in hi/:! viow,
only col'ltractl3 thaL ure written are binding, 'rhi/! bolief, howllver,
is not the law ~lllder bas ic conL rnct pri no ipLEIlJ or I?llnnsy 1 van ia
CIlSltlIlW,
Instead, Mr. S(lhllllt~ and his experts have delilcribed
alleged deficillncies and defects in the construction of the home
and claim that the cost of remlldying those problems far exceed any
amount Mr. S<lhllet~ may owe to l3astien Homes,
Howevl!lr, thilil
ponition is erroneous for a number of <lompelling reaSOnlil,
First, l3astian Homelil has already agreed in good faith to
remedy or address work of its sub<lont ractors which walil not
performed in a good and workmanlike manner, ~
Clearly, for
I~S detailed in Plaintiff' II !;;xhibit 3, 13alltian 1I0mes intendll to I
replace the cupolal repaint exterior doorBI replace the sash and glass
in the master bedroom wl,ndowl perform additional grading at the front
wall at the left aide of Iltepal do additional mortaring and pargin91
replace the concrete under porch, perform additional parging on the lower
level gArages, repair the baluaterll and handrail on rear deck stepll, fix
leaks in the skylights on porch, examine the eloping of the guttorsl
repair and replace the ridge vent installation if needed, fix the leak
in the maater bel1room ceilingl fix the chimney flashing, improve the dry
wall at archway; fix the leak at family 1.'0011\ bay window I adjuet the
pocket doors to family room 1 fix the dry wall on the ceiling in kitch'Hl
and dining room 1 adjust the cabinet doors, check the dryer vent I check
the insulation in the powdel:" rooml fix the glass in door to garage ;II
check the root flashing at the deck to lIee whether leaking J,s occurring I
perform tOl/ch-up and dry wall work on the wall in the hallway; adjust thl!
closet doors for light Ilwitchesl check the insulation in the master
closet I and/rovide 56 pilasters and posts for, Iltructurnl support in the
y garage on bns~ment,
16
dllfloilll1oiotlfl l:I\loh 1I1l the laok of !.l1l:1l1lntlon In pOl.'tiona of tho htlllle
01.' othll)." lIimil61:" deflllotll, anaden 1I01ll11S would nl;lVl!It: tolinutfl ita
lIuIJoontl:"eot\)1:" WOl:"k to be pedol'lII11d in Illloh 1\ lIIi1nnllll:" , IloWflVe....,
beoaul:Il!I thlll'lI hUI3 been nQ Ilettlllmllnl: on the hOl1l1S, l.IiHll:ian HOI1ll!f;1 hall
b~en ul1able to undel:"take its usulIl walk.th....ough ulld prepare 1I final
punohlist of itllms found in thlf hOl1le dlll:"ing the Soh\let,.es'
oClllIl:'anoy.
alloond, many of the Sohuet:tl!s Cllaillled dillllagel3 lire simply
el:"l:'Ol:"1iJ on hiliJ pal:"t, I!'or example, llal:lt !.all 1I0llles did use I3hake
shingles Slid, in oompliance with MI:", Sohullt:t's I:"eqllflst, did not ul3e
any particle boar.-d on the home but used OaB, whioh he apPl:"oved. In
addit ion, the vadanoe, whioh Bastian Homes paid fOI:", at most
cilused lllss than a one month de lay and may have even avoided
additional expenl3e for site work that would have been inourred had
the home been placed in itliJ original location,
Further, there wal3 significant testimony oonoernin9 the
structural integrity of the home, Although ten inoh beams have
been ul3ed for structural support along with numerous aupport poles
and although there is no lndication of ilny damage whatl30ever
related to the IiJtructural integrity of the hOllie, other than normal
sattlement, Bastian Homel3 has agreed, in accordance with the
testimony of Defendant's expert, Jack Brogan, to pl:"ovide remedial
17
work tll llllprolll!t thl!t />lupportll undlH' till! \].1 ro/l{lQ, Ml', Ilro\jBIl' II
tllU~ llllony that the \/Ilraglu IIIUllt bu tl)l'n dOWII h.l llllllply not
(!rod lbllt, IHllli lady, thf!t'e WIlIJ no tlllllt.llllony Urltl(J i ~dno the number
01: nlltl!l of beal1l11 used lIndllr tho! ouruqell, bllt ()Illy thillI.' plllCl!lIIflnt
011 block WClll, l~urtlllll', Mr, Scllllat1,' U pOlJltiCln that Ill! dld not
reqUlUlt Ilddlt lOlllll ukyllghtll, dooru, wlndowll, and thl! llke ilJ
u1mply an llntalHlblu pOll1tlon to tllko, ~J.eudy, Ilnatil:\l1l"~IIIl!HI would
not make lIucll cOllt ly and timl! COlllll,lI11ln9 ohangl!a without lIuch
ohangell havin9 boen requellted by tho homoowner, Moreover, the
Pofelldont'lI apprailler telltified that the SchUl!tltell overbuilt for
the neighborhood and the garage d1menBionll and other ohanglll!l halle
affected the valUe of the homo,
Pespite the lack of wrltten change orders and the
signifioant financial rillk that Bastian HOIllIlR took without having
slgned change orderll, Balltian Homell nonetholess managed to achieve
lIublltantial COIllLJ1etion of the home in time for the special occasion
which was critical to the timl!lframe for the Schuetli!ell, In
addition, the Schuetli!ell claimB for incidel\tal damages are similarly
without merit. Mr, Sohuetli! was involved 1n making changell to the
home, mOiling hia perllonal pOllllelllliono, or occupying the home on all
of thellll viaits and, at most, only the trip 1n November could be
attrlbutable to Bastian Homes due to the variance,
18
Illl/ltinll HOlll~1I till!l<l II.Jkn(Jwlud'J'Hl t.hllt Gurtllin WOl:k Willl lit) I;
done in Ii good snd wOrkllllll\ UI('l 1I1l1nnur <Inr.l thllt thl!lY sre ol:llignted
to Ilddrel!HI these itamu IIncl (Jthur nOl:"mnl WaUl:" nncl tlllll:" whioh IlIlIil
reaulted from the Sohullt~ua' aaoupnnay of the home or provide the
Sahuet~ea a oredit for the work, purthur, Ulllltinn Homel!l did not
slope the garage and bllsemellt floara at ~\ grade Ilnd, therefore,
Mr, Sahul!lt~ ia entitled to II credit ot G600,00 to r~tleGt the aoat
of that work, PUllpitu the fnet that the 2\ alope ill al:laent, the
Iltruoturea are not rendered usalallll, Illl both garages houned oarll
during the walk-through of the homfl, 'rhus, ulling tha original
contract price ot G181,565,OO and adding the requ~llted changen to
the construction 1\greull\unt in the amount of $93,415,00 ane! to the
Supplemental 1\greement In tha amount of $~:l, ;!?B, 54 and subtract ing
the credit EOl' sloped floors of $600.00 and the remedial WOI:)( whioh
will oOllt approximately $19,8;15.00, Bustian Homea is entitled to
$73,0'18,54,
In sum, ~astian Homel!l ia legally entitled to be paid for.
the additional work it performad at the schuetltlls' l"equeat pUl"auant
to the construction Agreeml!lnt, supplemllntal Agreeml!lnt snd written
change ordera, Schuet~' s testimony that "it tl1kes when writtlln" is
not in accord with contract law in this Commonwealth and ahould not
permit the Schuet2es to rElap a windfall for thE! various changes
made at Mr, Schuetlt'a requost,
Ie
HOll)lu pursuant to thQ conlSt rUet ion AfJrl!!llIl1\rJnt,
Agreement and writtliln ohange (ll:(htrll cO/lst itul;(m II
contraot between the partiltlil,
Slipii' ~q'''':mtll1
l:>rlllach at the
7. Thill Schu~t~1!l1l lire obligatQd to pay for thl!!
additional work which ia thlil lIubjeot of dgned ohange order".
li1~t:.9n Qrive-Inll. Ino, v, I.lome II'ldtJllInit:.y Co" 436 li'a, 480, ran,
~elli~~, 400 U ,13, 819 (969),
8, 'l'hl! Schuet~elll a);'e ob1 igL\l:Qd to pay for additional
work. nqueated but not s igm,d for on a ohangQ ordQ);', as the
requirement for n signed Qhange ordQl:" WU llithel:" waivllId by thQ
Sohuet~llS nnd/or a new oral contract for the changQa and additions
has belln formed, In rei Spnqnol Enterprises. IQo" 81 a.R. 337
(W,P, !?a. 1967) / UniversEtl Builder/!. Inc. v, Moon Motor t1odae,
~, 430 Pa, 550 (1968)/ ~a9ner v, Graziano eonstruction Co" 390
!?a. 445 (1957),
9, It illl not a defenl:le to observe l:"equel:lted changel:l and
additions being mllde and to thereaftat' deny payment n"pondbility
"or tho"e changes on the groundl:l that a written change ordel:" wall
not:. "igned, ~, 430 Pa. at 560,
21
10, "'hot Hahultl:"'l!lI o/lnnol: olllim dl'llllY 11>l11l<l~'111i1 In I:hlll ~1)/.'1Il
of a $]0,00 LLquidated dl.'\IllIlQlI olllulle whl!rll thl/it: ow/) lrhlltlijl!lll and
addit Lonll are the OI1UlIe of the dalllY, pcpt, of 'l'I:'$IlltJ/ilortl1l: iOIl ~.
~,P, Dicklll:"tlon Ii. /;lOll, Ino,,", 4:.1 PII, C!omn\W, ~59 119'/9) I Ilood v,.
Meininger, 3'1'11'11, H:.I, JUO (1954), Any Uquidlltud dalllllfJes olaillled
by the SahUlttzlIlI ar6 offllet or nullified by the $30,00 liquidllt~d
daml1g11 olause in favor of IlIlQl:iall HOllies due to the Schuetzea'
occupancy "prior to the pflYlllent of thlt full contr,lIct aum inoluding
ell-tra ohll rgel.l " under tholl tarms of tho Construotion Agrel!ment,
(Plaintiff'liI lS>thibit 1, 'l'l1b 1) ,
ll, Bllathn Homes ill obligated to addreu and remedy
work of its auboontraatora whioh was not performed in a good and
workmanlike manner and which will aost about $19,8:.15,00 to remedy,
which will be reflolloted as a credit to the Schuet~es,
1:.1. Bastian Homell is not responsible for the Sohuet~es
inaidental damages whioh Were eith",r neoei!laary llnd foreseoable
expenses of the Schuet~es or Were oaui!led by the Sohuet~elil' a<1ts and
,
om1ollions,
13, The Sohu"'t~ea will bit unjustly enri<1hed if they are
permitted to remain in the home without paying the full oontraot
22
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