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HomeMy WebLinkAbout98-02443 , ~ ~, cs\ ~" 'i; J o c., ~ .. " . ~ f ...."'!. III ~\ l 1 / . " ~ ~ -:-: 'j .') ~ '-> 1/ .., ;,.. 'J'o' ~ I 0- 0" ,. I' l ... .. JOHN M, KOSTI<:CKY, JR. & ASSOCIATES, p,c., PllIlntlff IN THE COURT Oli' COMMON PLEAS CUMBERLAND COUNTY, PA v, NO, q V J '/'{ " Cu,,( 'T~(,,~, LAWRENCE AND CANDlO: DIPU:TRO, Sn:VI<:N AND LUCILLE DRAKE, Defendllnt CIVIL ACTION. LAW NOTICE YOU HAVE BEEN SUED IN COURT, If you wish to defend uguinst the claims set forth in the following pages, you must tuke uction within twenty (20) duys ufter this Compluint and Notice ure served, by entering u writtcn appeumnce pcrsonally or by uttorney und filing in writing with thc Court your defenses or objections to the claims set forth ugainst you. You lire wurned that if you fail to do so the C[lSC may proceed without you und a judgment may be entered aguinst you by the Court without further noticc for uny moncy claimed in thc Compluint or for any other claim or relicI' requcsted by the Pluinliff. You muy losc moncy or property or othcr rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator Cumberlund County Courthouse, 4th Floor One Courthouse Squure Curlisle, PA 17013-3387 (717) 240-6200 NOTICIA Le IIall dellllllldado a Iwed ell III corte. Si usted quicre defenderse de estus demundas expuestas en las paginus siguicntes, usted tiene viente (20) dius de pluzo ul purtir de la fachu de la demundu y lu notificacioll. Usted dcbe presentar una uparienciu escritu 0 en Persona 0 1'01' abogudo y urchivar en la corte en forma escritu sus dcfensas 0 sus objcctiones ulus dcmandas cncontra dc su personu. Seu uvisudo que si usted no se defiende, la cortc tomum medidas y puede entfllr una orden contra usted sin previo uviso 0 notificllcion y 1'01' cualquier queju 0 alivio que es pedido en la pcticion de demandu. Usted puede pcrder dinero 0 sus propiedudes 0 otros derechos importuntes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDlATAMENTE. SI NO T1ENE ABOGADO 0 SI NO TIENE EL D1NERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUY A D1RECCION SE ENCUENTRA ESCRITA ASAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Court Administrator Cumberland County Courthouse, 4th Floor Onc Courthouse Squarc Curlis1e, P A 17013-3387 (717) 240-6200 attllched hercto uS Exhibit" I" and incorporated huroln by referencc. 7. Dcfendants, Steven und Lucillc Drakc, purchased Euro- Tech Sales. Inc., from Luwrcnce DiPietro and Marco Puliti, on October 29, 1993, through the aforcl11entioncd Stock Transfer Agrcement, und then, subsequently, sold Euro-Tech Sules, Inc. back to Lawrcnce DiPietro, 8. On Muy 17, 1993, Plaintiff cntered into a contract in writing with Euro-tcch Salcs, Inc. A true und correct copy of the May 17, 1993, contract is uttached hercto us Exhibit "2" and incorporatcd hcrcin by rcference. 9, Thc Muy 17, 1993, contracl provided that the Plaintiff would rcceive considerution for its services us follows: a, Managing project architect services ut Eight-fivc Dollurs ($85.00) pCI' hour. b. Architcct scrvices ut Scventy-five Dollars ($75.00) per hour. c. Enginecr scrvices ut Seventy-fivc Dollurs ($75.00) per hour. d. Technicul pcrsonnel scrvices at Fifty-five Dollurs ($55.00) per haul'. e, Secretarial personnel scrvices ut Twcnty-five DolI[lrs ($25.00) pCI' hour. f, Rcimbursable expenses including, hut not limited to, reproduction costs, postage, transportation costs, long distancc und fucsimilc communications costs, unci fees paid for securing upprovals of uuthorities huving jurisdiction over the auto showroom project. 10. Bctwecn April 12, 1993, and Septembcr I, 1993, Plaintiff rcndered professionul services for and to the bencfit of Euro- Tech Sules, Inc. liS follows: R. Munaging projecturchitect services - Sixty-one (61) hours. b. Architect services - Twenty-thrce point Fivc (23.5) hours. c. Technical personnel services - Thirty-nine (39) hours, - 2 .. p d. Secrctarial personnel services - Twelve (t 2) hours. II. The totu! contractual and uetual value of the profcssionul scrviees rendered by Plainti ff to and for the bcnefit of Euro.Tcch SlIlcs, Inc. was Ninc Thousand Thrce Hundrcd Ninety-Two and 50/100 Dollars ($9,392.50). 12, Bctween April 12, 1993, und Septcl11bcr I, 1993, PI[lintiff incurrcd reimbursablc cxpenscs for lInd to the bcncfit of Euro. Tech Sules, Inc. in the amount of Two Thousand Onc Hundred Sixty- Two and 77/100 Dollars ($2,162.77). 13. The totulllmount owed to Pluintiffby Euro.tcch Salcs, Inc. from April 12, 1993, through Septembcr I, 1993, for unreimbursed expenscs and scrviees rendcred, wus Elevcn Thousllnd Fivc Hundred Fifty-five und 271100 Dollars ($11,555.27). A true und correct copy of all the unpaid bills ure all ached hereto us Exhibit "3" und incorpol'Uted hcrcin by rcference. 14. Dcfendant, Lawrence DiPietro, as un officer of Euro.Tech Sulcs, Inc., requested und uccepted the aforcmcntioned professional services rendcred by PI[lintiff, and uuthorized Pluintiff to incur the aforementioned reimbursublc cxpenses, 15. On September 27, 1993, Plaintiff received notification from Lawrencc DiPictro that all services werc to be terminuted immcdiutely. 16. On Oetobcr 29, 1993, Luwrence DiPictro and Marco Puliti (hcreinafter "Sellers"), Stevcn and Lucille Druke (hcrcinafter "Purchusers") und Cundicc DiPictro and Georgina Puliti (hereinafter "Guurantors"), entered into 1I Stock Transfer Agreemcnt whereby, in Parugraph 8 of suid Agrccment, the Sellcrs und Guarantors indcmni fied und held hurlllless thc Purchusers while personally guul'untying the indemnificution. 17, On Decembcr 5, 1994, Plaintiff filed II Complaint in CUl11bcrland County Court of - 3 . Common Pleus aguinst Buro-Tcch Sales, Inc. in u broach of contruet action. pruying upon the Court for recovery of Elevon Thousand Fivc Hundred Pifiy-Iive [lnd 27/100 Dollm's ($ll,SS5.n) of unreimbursed cxpenscs and services rcndercd, A truc and corrcet copy of the December 5, 1994, Complaint is attuchcd hcrcto as Exhibit "4" and incorporatcd hcrcin by rcfcrence. 18, On December 5, 1995, thc Pluintiff prcvailed in arbitl'lltiol1 and rcc(Jived a judgment for Eleven Thousand Five Hundred Fifiy-fivc and 27/100 Dollars ($11,555.27). A true und correct copy of the Decembcr 5, 1995, Arbitration Award is attached hereto as Exhibit "5" und incorporuted herein by reference. 19. Euro-Tech Sales, Inc. subsequently uppeulcd thc Award of the Arbitrators. 20, On approximately April I, 1996, the aforemontioned cuse was Iistcd for trial in Cumberlund County Court of Common Pleas. 21. Thereufter, during April of 1996, Luwrcnce DiPietro rcucquired Euro-Tcch Salcs, Inc. stock for Two Thousand Dollurs ($2,000.00) from Steven Druke (hcreinuftcr "Transfer"). 22, On April 30, 1996, Luwrcncc DiPictro filed for Chupter 7 Bunkruptcy protcction for Euro-Tceh Sales, Inc, 23, Plaintiff Icurned of suid Chapter 7 B[lnkruptcy filing on Muy 2, 1996, aftcr receiving u true and correct copy of the suggestion of Bankruptcy of Euro- Tech Sales, Inc. 24, Plaintiff leurned of the April 1996 Tl'llnsfer. us stuted ill Parugruph 21, at the Euro- Tech Sales, Inc. Creditor's meeting on July 12, 1996. - 4 - , COUNT I FRAUDULENT TRANSFER 25, Plaintiff hereby incorporates by rcference as fully set forth the ullegations of Paragmph I through 24. 26, Pursuant to 12 P[I. C.S.A. *5104(a)( 1) of the Uniform Fruudulcnt T1'lInsfer Acl (hercinuf'ter "Act"), thc abovc-mentioncd Transfer, as stated in Paragruph 21, was madc with uctual intcnt to hinder, deluy or defruud thc Plaintiff. 27. Pursuunt to 12 Pa. C.S.A. *51 04(b) of the Act, the aforesaid intention of Luwrencc DiPietro und Steven D,'ake wus evidenced by: R, The Transfcr occurred shortly ufter Lawrcnce DiPictro was exposed, by virtue of an indemnificution, to u substuntiul dcbt of E1evcn Thousand Five Hundrcd Fifty-five und 27/100 Dollars ($11,555.27) to Plaintiff from the Dccember 5, 1995, Arbitrution Awurd. b. Before thc Transfer wus mudc, ElII'o- Tech Salcs, Inc, had been sucd und an Arbitration judgment was obtaincd by Plaintiff in Cumberland County Court of Common Pleas. c, The Transfer to Luwrence DiPictro was cquivulent to u transfer to un insider since Lawrence DiPietro and his wifc remuincd personally Iiublc through an indemnificution provision of the original October 29, 1993, Stock Trunsfer Agreement; and d. Lawrence DiPietro reucquired Euro- Tech Sules, Inc. und thcn placed the Corporation in Chapter 7 bunkruptcy shortly aileI' rcacquiring thc stock, in order to evude his duty of indemnification under thc O"tober 29, 1993, Stock Tmnsfer Agreement. 28. The purpose of the April 1996 Tmnsfcr from Steven Drake to Luwrcnce DiPietro was - 5 - I to II110w LlIwrence DiPietro to place Buro-Tech Sules, Inc, in bunkruptcy thcreby precluding the Pluinti ff from COllecting thc sums legully duc und owing. WHER~:FORE, the Pluintiff, JOHN M. KOSTECKY, JR. & ASSOCIAn~S, P,C" prllYs: (u) tllllt thc Trunsfer of stock from Stcven Druke to Luwrence DiPietro in April of 1996 be declurcd null, void und fruudulcnt; (b) thut II judgmcnt be entered ugllinst cllch of thc Dcfcndllnts, Luwrcncc und Candice DiPietro und Steve IInd Lucillc Drakc, for thc sum of Elcvcn Thousand Fivc Hundrcd Fifty-fivc and 27/100 Dollllrs ($11,555.27), together with interest and costs; und (c) such other relief that the Court nlllY deem just IInd proper. COUNT II TORTIOUS INTERFERENCE WITH THJi: CONTRACT 29, Plaintiff hereby incorporatcs herein by rcference the ullegutions of Paragraph 1 through 28, ubove, us fully as though the same were sct here ut Icngth. 30, Plaintiff, as u cluimant und crcditor of Eleven Thousund Fivc Hundred Fifty-five und 27/100 Dollurs ($11,555.27), becatne a third purty beneficiary to the person III guuranties [lnd the indcmnificution provisions set forth by Luwrence und Cundicc DiPietro in the October 29, 1993, Stock Trunsfcr Agreement. 31. The April 1996 Tmnsfer from Stcven Drllke to L[lwrence DiPictro tortiously interfered with thc contructuu1 rights of the Plaintiff, uthird party beneficillry, bccuusc Lawrcnce DiPietro bought the stock buck from Steven Druke for thc sole purpose of extinguishing thc indcmnification by plucing Euro- Tech Salcs, Inc. in bunkruptcy. WHEREFORE, Pluintiff demunds judgment ugainst Defendunts, Lawrence and Candice - 6 - DiPietro und Steven und Lucille Dl'akc, and cUl1lulutive I'clief in cxcess of Thirty-five Thousllnd Doll aI's ($35,000.00) us follow,~: (u) allawul'd of eOlllpcnsntory dUl11ages; (b) unawul'd of punitive dumugcs; (0) I'casonllble allol'l1eys fccs and costs; und (d) such othel' I'clicf us lhis honoruhle Court deems uppropriutc. COUNT III CIVIL CONSPIRACY 32, Plainti 1'1' hereby incol'pol'utcs herein by reference thc allegutions of Parugr~ph 1 thl'ough 31, nbovc, us fully us though the sume werc set hcl'c at Icngth. 33. The Dcfendunts, Luwl'cncc [\/1(1 Cundicc DiPictro and Stcven and Lucille Druke, conspired to prcvent thc Plaintiff, as c1uil11ant and creditor, 1'1'0111 collccting un Arbitration Awal'd of Elevcn Thousand Five Hundrcd Fifty-five and 27/100 Dollars ($11,555.27) und from pUl'suing u civil action in the Court of Common Pleas of CUl11berlund County by agreeing to Trunsfer Eum-Tcch Sules, Inc. stock buck to Luwrencc DiPietro for thc solc purpose of cxtinguishing the indel11nificution provision of thc October 29, 1993, Stock Tl'ansfcr Agreemcnt by cuusing the corpol'lltion to file for Chaptcr 7 Bunkruptcy protection. 33. The aforesuid civil conspil'acy Wus done with the intcnt to hinder, delay, or defeut the Plaintiff, crcditor. WHEREFORE, Plaintiff dcmands judgment aguil1st Defendants, Luwrcnce und Candice DiPictro und Stcven and Lucillc Drake, und cumulative I'elief in cxcess of Thirty-five Thousand - 7 . . Stock Transfer Ayrt'ement Plllle2 3, CLOSING: The closing date shall bc on the 29'" day of October, 1993 unless the parties agrcc otherwise. The time and place of the closing shall bc cstablished by agrccmcnt of the parties. At thc closing, Sellers shall deliver to Purchasers, all share ccrtificates of stock, duly endorSed for transfer, and frcc and clear of all encumbranccs, and other good and sufficient instruments of conveyance and transfer, in a form satisfactory to Purchusers's counsel, John W. Purcell, Jr. Sellers shall deliver to Purchasers all contra(~ts, dealer franchises and agreements, commitments, and rights pcrtaining to Euro-Tech, and other data. relating to Euro-Tech's assets, business and operation, including its corporate minute books, stock trunsfer records, und lease of real estate. Sellers shall takc all steps that may be required to put Purchasers In actual. possession, opcration and control of the properties, assets, and business of Euro- Tech, 4, I: EPRESENTA TlONS AND WARRANTIES OF SELLERS: Sellers J~;present and warrant as follows: a) That Scllers own 100 pcrccnt of all the shares of Euro- Tech Sales, Inc. (which consist of 10,000 shares authorized of which 200 sharcs are Issued and uutstand- ing) a corporation duly organized, validly existing and in good standing nnder the laws of the CommonwealLh of Pennsylvania, and have all requisite corporate power and authority to carryon the business as it is presently being conducted, to enter into this contract, and to carry out and perform the terms and provisions of this contract. Euro-Tech has no subsidiaries and, further, has no direct or indirect interc.st (other than a creditor under accounts reccivable) either by way of stock ownership or otherwisc, in any other firm, corporation, association or business enterprise. ..~ . . Slack TraRllfer Agreement PIIlIe3 b) That, to the bcst of Scllers' knowledge, therc are no actions, suits, or proceedings pending or threatened aguinst Euro-Tech or uffccting any of Its properties or rights, at law or in equity or before IIny Federal, State, Municipal, or other governmcntul agcncy or instrumcntality, domestic or foreign, nor that Sellers or any of its officers, or directors of Euro- Tech arc aware of any facts that to its knowledge, might result in any action, suit, or proceeding. Euro-Tech is not in default with respect to any order or decree of any court or of any governmental agency or instrumentality. c) That Euro-Tech is not in violation of any term or provision of any charter, by- law, mortgage, indenture, contract, agreement, instrument, judgment, decree,. order, statute, nile or regulation, to Sellers's knowledge; und Scllers's execution and delivery of, in performance and compliance with, this Agreement will not result in the violation of, or bcing in conflict with, 11' constitute a default under, any term or provision of the foregoing, or result in tnc creation of any tnortgage, lien, encumbrance or charge on any of the properties or assets of Sellers, pursuant to any such term or provision. d) That Eul'O- Tech has good, absolute and marketable title to all of its assets, consisting of, but not limited to, office equipment and supplies, service and repair tools and equipmcnt, purts inventory, telephones and te1cphone numbers (3); and that Euro-Tech holds thosc properties and assets subject to no lease, mortgage, pledge, lien, chargc, sccurity interest, encumbrance or restriction. Sellers do not warrant that Buro-Tech has title to any automobiles or other vehicles. At the time of execution of the letter of intent between Sellers and Purchasers, Euro-Tech had 12 automobiles ("the Vehicles") in inventory. All Vehicles were sold by Sellers at retail or wholesale in the ordinary course of business prior to the execution of this Agreement. St()(k Tl'llnsfer Agreement Paae4 e) That the furniture, fixtures, equipmcnt, inventory, tools, supplies and other tangible asscts of Buro-Tech arc in good condition and rcpair, reasonable wear and tear accepted as of October 11, 1993, (Buyer has inspected said assets and agrees that this warranty Is correct as of the date of thc execution of this Agreement.) f) That Sellers havc no knowledge or any claim, or reason to believe that Buro-Tech is or may be infringing on or otherwise acting advcrsely to, the rights of any person under, or in any respect of, any patent, trademark, service mark, trade name, copyright, Iicensc, or othcr similar intangible rights; that neither Sellers nor Buro- Te.ch are obligated or under any liability to make any payment by way. or royalty, fees, or otherwise to uny owner or licensee of, or other claimant to, a patent, trademark, trade name, copyright, or other intangible asset with respect to the use of the intangible property or in connection with Sellers's conduct of their business or otherwise. g) That Sellers have not entered into any long or short term contracts not within the ordinary course of business that huve not been previously disl'losed to Purchasers. h) That Sellers has delivered to Pllrchasers copies of Euro- Tech' s financial operating statements for the period January-August 1993, ull of which are truc and corre.ct, and have been prepared in accordance with generally accepted accounting principles consistently followed throughout the period of time indicated. All of said statements accurately represents the results of Euro-Tech's operations for the time period indicated. Sellers shall provided updated September 1993 financial operating statements within a reasonable period of time after closing, that shall be prepared in accordance with generally acceptcd accounting principles consistently followed throughout thc pcriod of time indicated. Stock Transfer Agreement - Page 5 i) That, other than as disclosed in the August 1993 financial statements, and as of October 29, 1993, Euro-Tcch has no liabilities (excludlllg lax liabilities) of any nature, whether accrued, absolute, contingcnt, or otherwise, including, without limitation, and whether incurred in respect of or measured by Euro-Tcch's income for any period as of Octobcr 11, 1993, or arising out of transactions entered into, or any state of facts cxisting, prior thcrcto. Further, that Seliers have no knowledge, or reasonable grounds to know of any basis for the assertion, of any liability against Euro-Tech as of October 29, 1993. j) That Euro-Tech presently maintains S Corporation status with the IRS, and has never revoked its election of such status. Sellers shall make all payments on account of all Federal, State and local income and other taxes due and payable as a result of income earned by Euro-Tech through and including October 11, 1993. 5, REPRESENTATIONS AND WARRA:'iTlES OF PURCHASER: a) Neither Purchasers nor any of their employees have puid or agreed to pay any brokerage fee or commission or any finders fee to uny' broker, agent, or finder on account of this Agreement or any matters contemplated hereby. b) Purchasers covenant and agree with Sellers to hold in confidence all documents and information concerning the Sellers or Euro-Tech Sales, Inc. fumished to them in connection with the transaction contemp1uted by this Agreemcnt and Purchasers . agree to usc such information only in conneclion with said transaction. Purchasers further agrcc not to release or disclose such information to any other person, except its outside accountants, attorneys, and consultants. If the transaction contemplated by this Agreement shali not be consummated, such confidence shall be maintained and such information shall not be used in competition with Scllers or Euro-Tech and all such information and documents shall immediately thereafter be returned to the Sellers. Sl()(k TrallSrer Agretllllent Page 9 or Euro"T("ch incurred prior to Octobcr II, 1993, whether accrucd, absolute, contingent or otherwise, due or to becomc due, cxcept those obligutions specificully assumed by Purchasers in this Agreement. This indemnification shall include reasonable counsel fees and expenses incurred in investigating or attempting to avoid, mitigate or oppose the imposition of damages, and to enforce any provision of this Agreement. This indemnification provision and the Sellers representations and warrantics in section 4 of this Agreement are intended to providc the exclusive remedies to Purchasers for the Scllers' breach of the Agrcement. 9, PURCHASER'S INDEMNIFICATION:. The Purchasers hereby covenant and agree to indemnify Sellers from and against any and all loss, liability, or expense (including, but not limited to reasonable attorncy,: fees incidcnt thereto) arising out of, or resulting from, any misrcpresentation or bre,cch of any warranty, reprcsentation, or covenant made by Purchasers in this Agreement, the schedules hereto and any and all witness statements, certifieates, instruments or documents delivered to Sellers pursuunt to this Agreement, or the transaction contemplated hereby. 10, SURVIV AI. OF WARRANTIES AND REPRESENTA TlONS: All representa- tions, warranties, and agreements of Sellers, Purchasers and Guurantors made under or pursuant to this Agreement shall survive the closing datc of Octobcr 29, 1993, without limitation as to timc. Stock TransFer Agreement _______ Page 10 II, PROMPT NOTICE: With respect to any matter as to which Sellers havc agreed to indemnify Purchasers under thc provisions of this Agreel11ent, I'urchflsers will give prompt notice in writing to Sellers and thclr attorncys, Duanc Morris and Ifeckscher, together, in each instancc, with a statcmcnt of the information respecting the dcmand, assertion, claim, action or proceeding as Purchasers then have in their posscssion. 12. . USE OF NAME: Sellers agrees that thcy will not, directly or indirectly, own, manage, operate, join, control or participate in the ownership, management, operation, control of, consultation of, or be connected with, in any manne,r, any business in the automobile industry using the name Euro-Tech Auto Sales, Euro-Tech, Euro-Tech Imports, Euro/Tech Imported Services, Euro-Tech Sales, or any sin':lal' or derivlItive numc, within a 100 milc radius of the present location , or any subsequent re-Iocation, of Euro-Tech 's primary place of business. 13. ASSIGNMENT: The rights under this Agreement shall not be assignable by Sellers or Purchasers without the consent of th~ other. Nothing in this Agreement, expressed or implied, is intended to confcr on any person, other than thc parties und their succcssors, any rights or rcmedies under or by reason of this Agreement. 14. MODIFICATION: This Agrcement may bc amended and modified at any time I\nd in all respects, 01' any provision may be waivcd, by an instrument in writing executed by Purchasers and Sellers or by either of thcm in casc of a wuiver, ,". Slock Tral\,rer Agreement PlIlIe II IS. NOTICES: Any noticcs or othcr communications rcqulrcd or permitted under this Agreement shall bc sufficicntly givcn if dclivered personally or sent by registered or certified mail, postagc prepaid, addrcssed to Seller Larry DiPietro at318 North 26th Street, Camp Hill, Pa 17011, and Seller Marco Puliti at 2405 Paxton Church Rd.. Harrisburg, Pa 17110, Pa, and their attorncy Kenneth L. Sable, Esq., Duane Morris and Heckscher, 305 N. Front Street, P.O. Box 1003, Harrisburg, Pa, 17108, and to Purchasers at 4610 Carlisle Pike, Camp Hill, Pennsylvania 17011, and their attorney John W. Purcell, Jr.. Esq., Purcell, Krug and Haller, 1719 North Front Street, Harrisburg, Pa., 17102, or at any other address furnished in writing by either party to the other, shall be deemed to havc been given as of the date delivered or deposited in the United Statcs Mail, as thc case may be. 16. INTENTION: It is the intention of the parties that the laws of the Commonwealth of Pennsylvania shall govern the validity of this Agreement, the construction of its terms, and the interpretation of the rig:i1s and duties of the parties. 17, ARBITRATION: Any dispute arising under this Agreemcnt shall be resolved under thc Pennsylvania Uniform Arbitration Act pursuant to 42 Pa.C.S.A. ~7301 et. seq, 18, DUPLICATES: This Agreement may be executcd in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitule one and the same instrument. ~~ Arch/tectl Engineers Planners conslruc;tJon Managers JUlie 14, 1993 Mr. Larry DiPietro Euro Tech 4610 Trindle Raod Camp Hill, PA 17011 Re: Foreign Auto Showroom & Service Complex Euro Tech Trindlc Road MechanJcsburg, Pennsylvania For Professional Sen'iccs Rendered: (April 12 - Junc 11, 1993) Managing Project Architect 21.5 hI's. @ $85.00 = $ 1,827.50 Arch] teetS 4.5 hrs. @ $75.00 = 337.50 Technical Personnel 1.0 hr, @ $55.00 = 55.00 Secretariul Personnel 2.0 hrs. @ $25.00 = 50.00 1 2,270.00 Reimbursable Eloenscs Drawing Reproduction Other Reproduction Travel Expenses $ 40,93 2.25 27.90 $ 71.08 :1 TOTAL $ 2,341.08 " ....' 224 NOffh P,onl SUN'f W,)I /Il1('n;tHI1(/l i1dl w:/'llli" FA 170.1.1 : i I; i 763 ~t161 1;~50 1811('f'!' NW SUlff iJO." \\'d~IJI'I,,/()ft 1)(' ;\'1(\):: ,"0.' i B<li8 H~(I(l ~~ John M. K08h~cl<y. Jr. & Associates Architects July I. 1993 Mr, Larry DLPletro Euro Tech 4610 TriadIc Road Camp Hill, PA 17011 Re; Foreign Auto Showroom & Service Complex Euro Tech Trindle Road Mechanicsburg, Pcnnsylvania For ProfessioDaI Sen'ices ReDdered: (June 11 - July 1, 1993) Managing Project Architect 6.0 Ius. @ $85.00 = $ 510,00 ArchitectS 19.0 Ius, @ $75.00 -- 1,425,00 Technical Personnel 35 hI'S. @ $55.00 = 19250 Secretarial Personnel 3.0 Ius, @ $25,00 = 75.00 - $ 2,202.,50 }l.eirnbursable EIDenscs $ 6.29 4.00 1.62 750 14.70 1.317.25 $ 1 ,351.36 S 2,341.08 . S 5,894.94 Drawing Reproduction Other Reproduction postage Long Distance Communication Travel Expenscs Consultants _ Hartmans & Associates, Inc. Billing of June 14, 1993 TOTAL , " . . II 2H ""OATH "RONl STAUT WOLltMI..[YS8URQ pr"'~Hi'l'LV"Nh' ,17043 . At '711.7.3.,/UI JOHN M. KOSTECKY, JR. , ASSOCIATES, P.O., Plaintirt IN THE COURT OF COMMON PLEAS ClIHDERLAND COUNTY, PENNSYLVANIA V. NO. q /1 - ,{:I 't5'(J 6t)l.f 01!-t~', ElIRO TECH SALES, INC., Defendant I I I CIVIL ACTION - LAW NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must tUke ~otion within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court. your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relicf requested by the Plaintiff, You may lose money or property or other rights important to you. YOU SHOULD 'l'AKE THIS PAPER TO YOUR LAWYER A'l'ONcE? IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL'HELP. Court Administrator Cumberland County Courthouse, 4th Floor One Courthouse Square Carlisle, PA 17013-3387 (717) 240-6200 , " , t;', NOl'ICIA I I,e han demandado a usted ell la corte. si usted quiere I defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la facha de la demanda y la notificacion. Usted debe presentar una apariencia escrita 0 en Persona o por abogado y archivar en la corte en forma escrita sus defensas 0 sus objectiones alas demandas encontra de su persona, Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notificacion y por cualquier queja 0 alivio que es pedl.do en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI NO 'l'IENE ABOGADO 0 51 NO T1ENE EL DINERO 5UFICIENTE DE PAGAR TAL SERV1CIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OF1C1NA CUYA DIRECCION SE ENCUEN'fRA E5CRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL, Court Administrator Cumberland County Courthouse, 4th Floor One Courthouse Square Carlisle, PA 17013-3387 (717) 240-6200 '11"l:'''IIIH1''r''l1llt:OMI'I,^INrIN\IV''lIlh~' H, Iljl).1 JOHN M. ~OSTEOKY, JR. , ASSOOIATES, P.o., plaintitt I I I I I I I I IN THE OOURT or OOMMON PLEAS OUMBERLAND OOUNTY, PENNSYLVANIA V. NO. EURe TEOH SALES, INC., Detendant OIVIL ACTION - LAW ~ AND NOW comes plaintiff, JOHN M. KOSTECKY, JR. , ASSOCIATES, P.O., by and through its counsel, SMIGEL, ANDERSON' SAOKS, and avers the following: 1. Plaintiff, John M. Kostecky, Jr. & Associates, P.C., is a pennsylvania corporation trading and doing business as The Kostecky Group (hereinafter Plaintiff) with registered offices at 224 North Front street, \~ormleysburg, Cumber land county, pennsy 1 vania. 2. Defendant, Euro Tech Sales, Inc. , is a Pennsylvania I i cor.poration and owner of the f icti tious name Euro-Tech Auto Sales (hereinafter Defendant) with a registered address located at 4610 Trindle Road, Camp Hill, cumberland county, pennsylvania. 3. plaintiff, among other things, provides architectural, engineering, planning and management services for construction projects. 4. Defendant primarilY sells and services automobiles. s. At all times relevant hereto, and regarding all transactions and events discussed herein, Lawrence C. DiPietro was authorized to act on behalf of Defendant. 6. On May 17, 1993, the parties entered into a contract in wri ting. A true and correct copy of the May 17, 1993 contract is attached hereto as Exhibit "1" and incorporated herein by reference. '1. The May 17, 1993 contract provided t.hat Plaintiff would receive consideration for its services as follows: a. Manag ing project. architect. services @ $85.00 per hour. b. Architect services @ $75.00 per hour. o. Engineer services @ $75.00 per hour. d. Technical personnel services @ $55.00 per hour. e. Secretarial personnel services @ $25.00 per hour. f. Reimbursable expenses including, but not limited to, reproduction costs, postage, transportation costs, long distance and facsimile communications costs, and fees paid for securing approvals of authorities having jurisdiction over the auto showroom project. a. Between April 12, 1993 and September 1, 1993, plaintiff rendered professional services for and to the benefit of Defendant as follows: a. Managing project architect services - 61 hours. b. Architect services - 23.5 hours, o. Technical personnel services - 39 hours. d. Secretarial personnel services - 12 hours, .. 2 - ,~. , ' 9. The tot a 1 contraotua land aotua 1 value of the professional services rendered by Plaintiff to and for the benefit of Defendant is Nine Thousand Three Hundred Ninety-Two and 50/100 Dollars ($9,392,50). 10. Between Apr.i1 12/ 1993 and September I, 1993, Plaintiff incurred reimbursable expenses for and to the benefit of Defendant in the amount of Two Thousand One Hundred Sixty-Two and 77/100 Dollars ($2,162,77) , 11. On or about June 14/ 1993, Defendant received an in,voice for professional services rendered by Plaintiff and reimbursable expenses for the time period of April 12, 1993 to June 11, 1993 totalling Two Thousand Three Hundred Forty-One and 08/100 Dollars ($2/341,08). A true and correct copy of the June 14, 1993 invoice is attached hereto as Exhibit "2" and incorporated herein by reference. 12. On or about July I, 1993/ Defendant received an invoice for professional services rendered by Plaintiff and reimbursable expenses for the time period of June 11/ 1993 to July I, 1993 totalling Three Thousand Five Hundred Fifty-Three and 86/100 Dollars ($3/553,86), A true and correct copy of the July I, 1993 invoice is attached hereto as Exhibit "3" and incorporated herein by reference. 13. On or about September 1/ 1993/ Defendant received an invoice for. professional services rendered by PlaintHf and reimbursable expenses for the time period of ,July I, 1993 to September I, 1993 - J - ( \wp.'il \,\.I'llrilli()n\kll.~ICd.:y_ l(,D;;L t.'i;:""~$C~'.f"'" ....,.d ~~-:",,!,., . I ~~. '7 " ,"',It.!;'., f.._) --J d !1 JOtlN M. KOSTECKY, JR. '1& ASSOCIATES, P.C., II I VB. I I EUAO TECH SALES, INC., i II~ THE: COURT OF COMMON PLEAS CUMBERLAND COUNTY, PF.NNSYLVANIA Plaintiff NO: 9'1.6850 CIVIL TERM CIVIL ACTION. l.AW Dofendant OATH We do soll1mnly sweur (or affirm) that we will support, oboy al,~1 delond tho Constitution of tho United States and the Constitution of this Commuflwllalth unci that wc ',,:11 discharge tll<) duties 01 our office I with fidelity. i II II I I _~::='l~IJJJll~~J"I.~'\ ..' .~_..~ flog'\( M !'1!2!_il,"'lhnl, E,qu". le',""onnol __','~L~_-l~\<c ':-R ._____ ~ ' I Fl.)bl:rl r~, KII~lU. ES(IUlfO .J I' .~:..__~_L.~d.-.--. J(1I11OS J. "9'vpr. hquire " , /. AWARD! , We, the undersigned arbitrators, having been du!y appointed and sworn (or a ffitmed) , rnake tho following award: I (No/,: If d4tf1drJIJ 101 '/1.''''1 "'f] /"\/1/(1,',1. /!J<]y 1I.,1i hi J~IIif/IHI1I'1 ".'" I \ ..~.t (......"\ c'" etA,,>' t(1 ,.........l.. C'~,-,-"" t D<(~,...,;lM.r- _i..-:.'.J.i, C/o," """".:t-t., III) CII'. '~11 ~i ,.\1"(~'" "",I (<ftf/Ah"'.....:~ ",'q",i.iL+I.~._.6.k,dtl't 11..1',,,"-. i Arbitrator, dissents. (1IIsc,1 lIamc if applicabl",) ~;7}) \, t Lie' I.t v:-,\-t, ---+---I-----}-. ".__",\ RotIOr~. M)Ho.onntll. EsquirH IChairman\ 1 I .~' , 1") V', .," ( .,- ." -.... ,! - ... ''lj''''-C .' __ _ _,e..-,< /l Robur,1 Pi Kllno, ESqlHrO .'j 1/ /. " "-j k.' _. _,. -~--r'''~'-'''''J~~!l~: J. Kilvj: [srlUlro i ' NOTICE OF ENTRYOF AWARD IIOtll8 of HeMiny: DlJcem~ 1996 1 .~ uHte of Award:')': L l J 119 \" , !\ Now, the rq,- _dayof 1Jhu...,j",-~ ,1995.alj,~~.J2....._o'clock,L.M.,theuboveaward I was entered upon the docket and notice thereol given by mail to tho part'es or their attorneys. 1\ ;/;."".",... !"t,,I<I.A.,<., -' _____ .___'__.H ---m_n-.',----f-----..---'--- 'I ProthnnolcHY I Arb, Itral.ors' componsation to bo Iii ")' ipa1d upon appeal: By:_._:c.-;\....J1L-f..LjJr"ll~'-rrUpr;, $ ,)(,D,UL> v r 0 I _.____._______ opllly I . , ~ f I .. VERIFICATION I, ,JOliN M. KOSTECKY, ,lit, President 01' .JOIIN M. KOSTECKY, JR, & ASSOCIATES, I',c., verify that lhc statements contained in the foregoing Complaint arc true and correct to the b(Jst of my knowledge, inrorl11ation and belief. I understund that false statcments therein arc made subject to the penalties of 18 Pa.C.S, *4904, relating to unsworn ffllsifiealion to authorities. N/L" A . j ~.t. ":l-L~J..'''\..I ~TEC Y, JR" PRESIDENT OF JOHN lVI, KOSTECKY, JR, & ASSOCIATES, P,C. 4102 "I."/I~r"ncipe/JWf.'/pllm 05/;17/911 llHpm JOHN M. KOSTECKY, JR, & ASSOCIATES, ~,C., Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA V. NO. 98-2443 CIVIL TERM LAWRENCE AND CANDICE DiPIETRO STEVEN AND LUCILLE DRAKE, Defendantll CIVIL ACTION - LAW PRAECIj?E TO TUE PROTHONOTARY I Please reissue and certify the attached copies of the Complaint, Respectfully submitted, Date:_ 5/.'J;7/PF ~/ SMIGEL, ~ By: 17110-1223 Attorneys for Plaintiff 8. SELLER'S INDEMNIFICATION: [Sellers and Guarantors shall indemnify and hold harmless purohasers] on and after the closing with respect to any claims, actions, demands, losses, costs, expenses, liabili t. ies (j oint. or several, undisclosed or unknown), penalties and damages arising from events, transactions, t.axes, contracts or agreements prior to October II, 1993, and from any losses or damages incurred as a result of (a) any inaccurate represent.at.ioll made by Sellers in this Agreement; (b) breach of any of the warrant.ies made by Sellers in this Agreement; (c) breach or default in t.he performance by Sellers of any of the covenants t.o be performed by it under this Agreement; and/or (d) any debts, liabilit.ies or obligations of Sellers or Euro- Tech incurred prior to October II, 1993, whether accrued, absolut.e, contingent or otherwise, due or to become due, except t.hose obligations specifically assumed by Purchasers in this Agreement. This indemnification shall include reasonable counsel fees a.nd expenses incurred in investigating or attemptfng to avoid, mitigate or oppose the imposition of damages, and t.o enforce any provision of this Agreement. This indemnification provision and the Sellers representations and warranties in section 4 of this Agreement are intended to provide the exclusive remedies to Purchasers for the Sellers' breach of the Agreement. (Emphasis added) 4. Count I of Plaintiff's Complaint is based upon the allegations that Lawrence DiPietro, and, presumably, Candice DiPietro, are liable or potentially liable to indemnify Euro- Tech Sales / Inc. 5. The specific wording and plain reading of Paragraph 8 of the Stock Transfer Agreement indicates that the DiPietros were only indemnifying the Drakes, not Euro-Tech Sales, Inc. 15. Plaintiff requests, under claims for tortious interference with a contrac~ and civil conspiraoy, the imposition of attorney's fees. 16. Plaintiff has not averred any basis to recover attorney's fees under these caUses of action. WHEREFORE, Defendants Lawrence and Candice DiPietro respectfully request this Honorable Court strike Plaintiff's request for attorney's fees under Counts II and III. Respectfully submitted, FENSTERMACHER AND ASSOCIATES, P.~. By: ~~/ .?:.~ :Z::~-~ John R. Fenstermacher Supreme Court I.D. #29940 Mark K. Emery Supreme Court I.D. 5115 East Trindle Mechanicsburg, PA (717) 691-5400 Attorney for Defendants DiPietro #72787 Road 17055 DATED: I~I )~1 Y II .. /l j