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HomeMy WebLinkAbout99-02755 ...;' \"(:1 .;) I 1 I , ! . \. .J!. - 3 ~ \ \ "'- "- \ \ \ \ .\ 1 ; I J ; / ,J/t ;' /'. , i I , , I ~ ~! L~I ri .-/ :.5 i _, CJ '" In t"- .C'i . <3'" . 0-, .j ~j I ! JOliN F. WALTER EXCA V ATING, INC., : COURT OF COMMON PLEAS OF : CUMBERI.ANI) COUNTY, PENNSYLVANIA PLAINTIFF \'. NO. CIVIL 1999 - 2755 , . : " I. , '." ::, .: '. \, ' ,.:";: .:'. ,".. -.. " '.", ' " . , . ,I ~...:. :.' " j ',. ' ' ,'." :.' ,,- . . IIARRY II. FOX, JR., and JOliN n. FOX, t1a1 FOX AND FOX, a pRrtnersblp, CIVIL ACTION .. LAW DEFENDANTS DEFENDANT'S PRETRIAL MEMORANDUM I. STATEMENT OF FACTS AS TO LIABILITY AND DAMAGES This casc ariscs out of the Plaintiff's claims that the Defendant has breached a contract made between the parties by failing to pay the full amount of outstanding invoices duc to Plaintiff. In the month of September 1995, Plaintiff and Defendant cntered into a contract agrccmcnt where Plaintiff agreed to perfOlm cenain excavating and paving work. Under the terms of the contract, Defendant agreed to pay Plaintiff $140,238.00 for the work. The contract also provides that Defendant was to pay Plaintiff only upon acceptance by West Pcnnsboro Township (hereimfter called "Township") of the work perfomled by Plaintiff and upon release of thc money held by the Township under a completion bond. Further, Plaintiff was responsible to notify thc Township so the Township could make the Ilecessary inspections for acceptance of the work. lbe Plaintiff agreed to begin the work on September 25, 1995 and have thc work completed by Deccmber 15. 1999, To datc, Defendant has paid all amounts payablc to Plaintiff for that construction that the Township has acccpted and for which it has released bond complction money. On May 7. 1999, PlaintifT initiated this action by filing a complaint in the Cumberland County Court of Common Pleas, claiming that Defendant was in breach of the contract. Subsequently, on July 26. 1999, Defendant filoo Preliminary Objections to thc Plaintiffs complaint. r-,""\ - 6 'i" On or about January 7, 2000, Defendant Fox lHed an Answer With New Matter and Countcrclaim ancr this Honorable Court dcnicd thc Dcfcndant's ('rcliminury OhjL'Ctions. Plaintiff Waltcrs filcd an Answer to Defendant's New j,1allcr and Cowllcrclaim on or about May 5, 2000. On or about June 27, 2000, Plaintiff scrved Intcmlgatorics and Request for Production of Documcnts on the Dcfendant. On or about Scplenlber 7, 2000, Dct~'11dant filed Responses to Plaintiff's Intcrrogatories and Production of Documcnts. Subsequent to the receipt of Plaintiffs Discovery Responses, Plaintiff's counsel listed the instant action tor the January 200 I trialtenn. On October 30, 2000, after Defcndant became aware of problems and concerns with the workmanship of the construction projcct at issue, Detendant filed a Petition for Leave of Court to Amcnd Defcndant's Answer with New Maller and Counterclaim. In addition, Dcfendant has served discovery requests in the form of Interrogatories and Request for Production of Docunlents on Plaintiff. On or about November 22, 2000, in response to a Rule to Show Case issued by this Honorable Court, the Plaintiff filed an Answer to Defendant's Petition for Leave of Court to Amend Defendant's Answer with New Maller and Counterclaim, By way of lellm-to this Court dated Novcmber 22,2000, the Defendants fonnally objected to the listing of this mallcr for trial on the grounds of the need for completion of discovery and thc nero for decision regarding Defendant's Petition to Amend Answer With New Maller and Counterclaim. Once it became obvious to Defendants that the Plaintiff as part of a resolution of this malleI' would not agrec to complete the work necessary to finish the projcct, Defendant made arrangements to have the work on Phase 1I conml~!cd. During tbe completion of the work on Phase II, certain deficiencics were disrovercd including, inter alia. lack of sufficient stone dcpth and improper grading, This newly disc..wered infonnation, prompted the necessity for the Defendant's Pelition to Amend its Answer With New Maller and Counterclaim. 2 II, QUESTIONS PRESENTED A. Whcthcr Defendant Fox should be pennilled to amend its Answer With New Maller and Counterclaim in light of the ncwly discovered dcficiencies in the Plaintiff's workmanship on the project at issue? SUGGESTED ANSWER: YES Rule 1033 of the Pennsylvania Rulcs of Civil Procedure pcmlits a party with leave of court at any time to amend its pleading. 1be courts have discretion at any stage of the legal proceedings to pennit an amendmcnt jf it is necessary for the proper dL'Cision on the merits (1ft"," case. MaeGrel!or vs, Media, 395 Pa. Superior Court 221, 576 A.2d 1123 (1990). The court may deny an amendment where there is prejudice to the other party be.cause of delay in seeking the amendment. However, mere delay is not a sufficient basis to deny an amendment. The opposing party must show prejudice, Brooks vs. ~eMenamin. 349 Pa. Superior Court 436503 A,2d 446 (1986). Mere prejudice because the amendment requested strengthens the defense of the Defendant is n~t the type of prejudice required, The opposing party must show that there is some substantial prejudice to his legal position. For example, where there is a request to amend after an opposing pal1y has presented all his evidence or where the opposing party has incurred substantial costs to present his case might be considered sufficient prt'judice, Ga~...YS., Mankamver, 485 Pa. 525,403 A.2d 87 (1979). In general, amendments of the pleadings should be allowed with great liberality at any stage of the proceedings in order to secure a proper determination of the case. Roberson vs, Davis. 397 Pa. Superior Court 292, 580 A.2d 39 (J990). Defendants were not aware of certain deficiencies in the workmanship of the Plaintiff's work on the project with regard to improper stone dcpth and grading, until Defendants hired another conlract0r to complete the project. The Dcfendants did not complete the paving project in hopes that a resolution of this matter would result in the Plaintiff fulfilling its contractual obligations. Whell it became clear that that would not be part of any resolution of this maller, Defendants attcmptcd to have the .....ark completed. 3 .. :,\'. ..... ,:1.. t _..,. ".', , ':." .', ',' " """ ,'. . ..: " .., ,"" : ,'., '"., '. It was not until that time in September and October of 2000 at which Defendants bccame aware of these deliciencies. It is noll-d thatlhe Defendant's reply to Plaintiff's Discovery which was served on or about September 7, 2000, indieatL-d that at that time Defendants had not yet hired anyone to complcte the project. ll1ese particular problems would not have been discovered by Defendant but for another contractor beginning to complete the job. In order for this matter to be fully and fairly litigated, the Defendants should be granted the opportunity to present evidence of the deficiency in the workmanship of Plaintiff as it regards to their request for their additional payment of money. While it is true t1J.1tthe facts with regard to this particular action occurred several Y<.'<lrs ago, the litigation is relatively young in tlJ.1t the Complaint was tiled on May 7,1999. The ease has proceeded through Preliminary Objections and through the Defendant's Answer to New Malter and Counterclaim filed on or about May 5, 2000. There has not been any unreasonable delay of tillS malleI' by the parties and Defendants contend that allowing the Amendment would not prejudice the Plaintiff with unreasOl;~ble delay. After that time should discovery be complcted, it would be appropriate to re.listthis malleI' for trial. B. Whetiter Defendant Fox is entitled to recover the late charges pursuant to a signed agrccment which calls for late charges to be assessed against Plaintiff for failure to complete the project? SUGGESTED ANSWER: YES. C. Whether Defendant Fox is required to pay additional monies to Plaintiff when Plaintiff has fi:ed to complcte the contemplated project as evidenced by the fact that the township has not fully released the bond held for the paving work? SUGGESTED ANSWER: NO. D. Whether Defendant Fox is required to pay any monics to Plaintiff Walters in excess of the contract amount? SUGGESTED ANSWER: NO. 4 , \ , '.. . . -;' ',' I: ''., "" 1, ' . ...., ' .': . j' ; . """." ~ ; " > : ,.'. ,~' " \, ',", '.. ',' ~ , /.\ ", -.--.......,-.-, ,...'~ . ~ . j Cl, , .U ~ ~ .' :.ld - 1=;' ~I>!'" " . ,~~.,'..........~ I~ . ~ I~~i l ~ "d~ -:dJm~ ;; c:l ,~ ""C\, ." I< ,~ 'C\ 'I is , '. ~ II) " I In- '! ~Iil' 1>. l'J ~ t; . ~, ,\>" 'i I ill. , it ~.~ it e;~ 0 ~fi i """ ... . tIl I>< ~ ~-J:" .~~il tIl ~. 110.. F:- n~~. _to ".ta:~. . ... I::~ ! ~ ~.'" ... . " ;\ i Ii ~ III . c:l ~. c., =... ..; . is .~~' ~!a~~ .~ f>l ~ 0"" l:l ~ ... ... ., I A\to: nnjC'~- (~ .;'. ',' " ",-. ". ~.:~-~...., <.:" ,'.'.', -" ,"....,: ',.... ,.': ", '" . '. ,::' . ' ,', :~.' ,': '. .'~ .~",~' " ,", ',',,' On or about January 7, 2000, Dcfendant Fox filed an Answer With New Maller and Counterclaim aller this Honorable Court denied thc Defendant's Preliminary Objections. Plaintiff Walters filcd an Answer to Defendant's New Maller and Counterclaim on or about May 5, 2000. On or ab-Jut June 27, 2000, Plaintiff servcd Interrogatories and Request for Production of Documents on the Defendant. On or about September 7, 2000, Defendant filed Responses to Plaintiff's Interrogatories and Production of Documcnts, Subsequent to the receipt of Plaintiff's Discovery Responses. Plaintiff's counselliste!! the instant action for the Janunry 200 I trial term. On October 30, 2000, after Defendant became aware of problems and concerns with the workmanship of the construction project at issue, Defendant filed a Petition for Leave of Court to Amend Defendant's Answer with New Malter and Counterclaim, In addition. Dcfendant has served discovery requcsts in the form of Intmogatories and Request for Production of Documents on Plaintiff. On or about November 22, 2000, in response to a Rule to Show Casc issued by this Honorable Court, the Plaintiff filed an Answer to Defendant's Petition for Leave of Court to Amend Dcfendant's Answer with New Maller and Counterclaim. By way of leller to this Court dated November 22,2000, the Defendants fonnally objected to the listing of this matter for trial on the grounds of the need for completion of discovery and the need for decision regarding Defendant's Petition to Amend Answer With Ncw Maller and Counterclaim. Once it became obvious to Dcfendants that the Plaintiff as part of a resolution of this mailer would not agree to complete the work necessary to finish the project, Defendant made arrangements to have the work on Phase II completed. During the completion ofthc work on Phase II. certain deficiencies were discovered including. inTer alia. lack of sufficient stone depth and improper grading. This newly discovercd information. prompted the necessity for the Defendant's Petition to Amend its Answer With New Matter and Counterclaim, 2 II, QUESTIONS PRESENTED A, Whether Defendant Fox should be pennilled to amend its Answer With New Malter and Counterclaim in light of the ncwly discovered deficiencies in the Plaintiffs workmanship on the prcject at issue? SUGGESTED ANSWER: YES Rule 1033 of the Pennsylvania Rules of Civil rrocedure pennits a party with leave .')f court at any time to amend its pleading. The courts have discretion at any stage of the legal proceedings to pennit an amendment ifit is necessary for the proper decision on the merits of the case. MacGrel!or vs. Media, 395 Pa, Superior Court 221, 576 A,2d 1123 (1990). The court may deny an amendment whom: there is prejudice to the other party because of delay in seeking the amendment. However, mere delay is not a sufficient basis to deny an amendment. The opposing party must show prejudice. Brooks v~ McMenamin, 349 Pa. Superior Court 436503 A.2d 446 (1986). Mere prejudice because the amendment requested strengthens the defense of the Defendant is not the type of prejudice required. The opposing party must show that there is some substantial prejudice to his legal position. For example, where there is a request to amend after an opposing party has presented all his evidence or where the opposing party has incurred substantial .:osts to present his case might be considered sufficient prejudice. Garv vs. Mankm!1ver, 485 Pa, 525, 403 A.2d 87 (1979), In general, amendments of the pleadings should be allowed with great liberality at any stage of the proceedings in order to secure a proper d~1em1ination of the case. Roberson vs, Davis, 397 Pa, Superior Court 292, 580 A.2d 39 (1990). Defencbnts were not aware of certain deficiencies in the workmanship of the Plaintiff's work on the project with regard to improper stone depth and grading, until Defendants hired another contra~1or to complcte the project. The Defendants did not complete the paving project in hopes that a resolution of this matter would rcsuh in the Piaintiff fulfilling its c..1ntractual obligations. When it became clear that that would not be part of :my resolution of this mlltter. Defendants al1empled to have the work completed. 3 ',', :,'." ) ':...' ,', :,' ,'" .~:. "'j.: '1_,1 '-~'..'."; ",'.: ,"! ~ .,' ,.',. '.' ", It was not until that time in September and October of 2000 at which Defendants became aware of these deficiencies. It is noted that the Defendant's reply to Plaintil'rs Discovery which was served 011 or about September 7, 2000, indicated that at that time Defendants had not yet hired anyone to complete the project. 'These particular problems would not have been discovered by Defendant but for another contractor beginning to complete the job. In order for this maller to be fully and fairly litigated, the Defendants should be granted the opportunity to present evidence of the deficiency in the workmanship of Plaintiff as it regards to their request for their additional payment of money, While it is true that the facts with regard to this particular action occurred several years ago, the litigation is relatively young in that the Complaint was f1led on May 7, 1999, The case has proceeded through Preliminary Objections and through the Defendant's Answer to New Maller and Counterclaim filed 011 or about May 5, 2000. There has not been any wrreasonable delay of this maller by the parties and Defendants contend that allowing the Amendment would not prejudice the Plaintiff with unreasonable delay. After that time should discovery be completed, it would be appropriate to re-list this mailer for trial. B. Whether Dcfendant Fox is entitled to recover the late charges pursuant to a signed agreement which cal1s for late charges to be assessed against Plaintiff for failure to complete the project? SUGGESTED ANSWER: YES. C. Whether Defendant Fox is required to pay additlonal monies to Plaintiff when Plaintiff has filed to complete the contemplated project as evidenced by the fact that the township has not ful1y released the bond held for the paving work? SUGGESTED ANSWER: NO. D, '.\lhctltcr Defendant Fox is required to pay any monies to Plaintiff Walters in excess of the contract amoilnt? SUGGESTED ANSWER: NO, 4 E. Whether there W'lS a valid settlement agreement reached between the parties when it was premised on the fact that the project had been completed when in fact it was still uncompleted? SUGGESTED ANSWER: NO, III. SUMMARY OF LEGAL ISSUES REGARDING ADMISSmlLITY OF EVIDENCE Defendants are not aware of any special issues regarding admissibility of evidence at this time. IV. WITNESSES A, Defendant, Harry H. Fox. Jr. B. Witnesses to support allegations to be made pursuant to amendment of Defendant's Answer with New Maller and Counterclaim. C. Defendant reserves the right to supplement this list and to call all witnesses identified by PlaintitT. V. EXIImITS A. All documents attach~.I as Exhibits to Defendant'~ Answer With New Matter and Counterclaim as well as Exhibits attached to other Pleadings. B. All Exhibits as identified by PlaintitT. C, Defendant reserves the right to supplement this list with regard to items raised in Defendant's Petition to Amend Answer With New Maller and Countcn:laim, VI, SETTLEME/Io'T PROPOSAL Prior to the discovery of deficiencies in workmanship, Defendant had otTered $14,848.36. The Plaintiff's se\tlement demand is $24,000.00. ~ '-- , '~. .:<> ' ";~. '. :' }',: I:~; , , ~', I,. .;" "<.':;L:' ::,;}',~:-~';..~'&*':~"-~;~r~:~~7;1"I' ~,!,' "!.-' I ',.:,~,~~_~,,, ,\ ",.':-.. ./1:,:': -: ,'.':'" ,'.-..I.~\:~:: :'~-~ ...., -....d' Respectfully submitted, By: 1~1(t'ruGHES ..::u r&w~'n- Mark D, Schwartz, Esquire 60 West Pomfret Street Carlisle, PA 17013 717-249-2353 Supreme Court 1.D, No: 70216 Attorney for Defendants, Harry H. Fox, Jr" and Jobn H. Fox tI&IFOX & FOX, a partncrnhip 6 JOHN F. WALTER EXCA V ATlNG, INC" : IN THE COURT OF COMMON PLEAS OF Plaintiff v, : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW IL\RRY H, FOX, JR., and JOHN II, FOX, t1a1 FOX AND FOX, a partnership, Defendants NO. CIVIL 1999-2755 CERTIFICATE OF SERVICE I, Mark D. Schwartz, do hereby certify that I am this day serving a true and correct copy of the foregoing document upon the person, and in the manner indicated below, which selVice satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing the same with the United States Post Office in Carlisle, Pennsylvania, postage prepaid, and addressed as follows: Theodore A. Adler, EsqUIre Thomas O. Williams. Esquire REAGER & ADLER, P.C. 2331 Market Street CampHill,PA 17011 B"X'~:: Mark D, Scbwartt, E5quire 60 We5t Pomfret Street CarU5lr, PA 17013 717-249-2353 Supreme Court I.D. # 70216 Attorney for the Defendant5, ilarry II, Fox, Jr. and John II, Fox tis Fox and Fox, a Partnenhip Date: llecember ---b-"(fC . 2000 , , JOHN F. WALTER EXCA V A TING,INC" : COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. NO, CIVIL 1999 - 2755 HARRY H, FOX, JR., and JOHN H. FOX, t1a1 FOX AND FOX, a partnership, CIVIL ACTION - LAW DEFENDANTS DEFENDANT'S PRETRIAL MEMORANDUM I. STATEMENT OF FACTS AS TO LIABILITY AND DAMAGES This ease arises out of the Plaintiffs claims that the Defendant has breached a cvnlract made between the parties by failing to pay the full amount of outstanding invoices due to Plaintiff, In the month of September 1995, Plaintiff and Defendant entered into a contract agrccolent where Plaintiff agreed to perfllnn cer\1lin excavating and paving work. Under the tenus of the contract, Defendant agreed to pay Plaintiff $140.238.00 for the work. The contract also provides that Defendant was to pay Plaintiff only upon acceptance by West Pennsboro Township (hereinafter called "Township") of the work perfonned by Plaintiff and upon release of the money held by the Township under a completion bond. Further, Plaintiff was responsible to notify the Township so the Township could make the necessary inspections for acceptancc of the work. The Plaintiff agre<:d to begin the work on September 25, 1995 and have the work completed by December 15, 1999. To date, Defendant has paid all amounts payable to Plaintiff for that construction that the Township has accepted and for which it has released bond completion money. On May 7, 1999, Plaintiff initiated this action by filing a com!llamt in the Cumber!:md County Court of Common Pk.as, claiming that Defendant was in breach of the contract. Subsequently, on July 26, 1999, Defendant filed Preliminary Objections to the Plaintiffs complain\. On or about January 7, 2000, Defendant Fox filed an Answer With New Maller and Counterclaim after this Honorable Court denied the Defendant's Preliminary Objections. Plaintiff Walters liled an Answer to Defendant's New Malter and Counterclaim on or about May 5, 2000, On or about June 27, 2000, Plaintiff served Interrogatories and Request for Production of Documents on the Defendant. On or about September 7, 2000, Defendant filed Responses to Plaintiffs Interrogatories and Production of Documents. Subsequent to the reccipt of Plaintiffs Discovery Responses, Plaintiffs counsel listed the instant , [" , action for the January 2001 trialtcnn. On October 30,2000, after Defendant became aware of problems and concerns with the worlananship of the cons\nlction project at issue, Defendant filed a Petition for Leave of Court to Amend Defendant's Answer with New Maller and Counterclaim. In addition, Defendant has served discovery requests in the fonn of Interrogatories and Request for Production of Documents on Plaintiff. On or about November 22, 2000, in response to a Rule to Show Case issued by this Honorable Court, the Plaintiff filed an Answer to Defendant's Petition for Leave of Court to Amend Defendant's Answer with New Maller and Counterclaim. By way of leller to this Court dated November 22, 2000, the Defendants fonnally objected to the listing of this matter for trial on the grounds of the need for completion of discovery and the need for decisicn regarding Defendant's Petition to Amend Answer With New Maller and Counterclaim. Once it bccanje obvious to Defendants that the Plaintiff as part of a resolution of this matter would not agree to complete the work necessary to finish the project, Defendant made arrangements to have the work on Phase II completed. During the completion of the work on Phase II, certain deficiencies were discovered including, inter alia, lack of sufficient stone depth and improper grading. This newly discovered infol1D3tion, prompted the necessity for the Defendant's Petition to Amend its Answer With New Matter and Countcrclaim. ~ " " <' '. .... r,. ::' ':'.. '~;', "I "~~': '..::.~Z::~~~~~;~":;'~1{...1~';(: ~.. l'~-~T'~~!',,' ,.:::<:,~.> _.;;':, ,::,;,/, ';t.,:>~ " . ~:<",:,'~':":~("~'." Defendants were not aware of certain deficiencies in the workmanship of the Plaintiff's work on <........_;. n. QUESTIONS PR.ESENTED A. Whether Defendant Fox should be pc-nnilled to amend its Answer With New Maller and Counterclaim in light of the newly discovered deficiencies in the Plaintiff's workmanship on the project at issue? SUGGESTED ANSWER: YES Rule 1033 of the Pennsylvania Rules of Civil Pr~cedure pennits a party with leave of c,ourt at any time to amend its pleading. The courts have discretion at any stage of the legal proceedings to pennit an amendment ifit is necessary for the proper decision on the merits of the case. MacGregor vs. Medig, 395 Pa. Superior Court 221, 576 A,2d 1123 (1990). The court may deny an amendment whP.!'e there is prejudice to the other party because of delay in seeking the amendment. However, mere delay is not a sufficient basis to deny an amendment. The opposing party must show prejudice. Brooks vs. McMenami)}, 349 Pa, Superior Court 436503 A.2d 446 (1986). Mere prejudice because tb~ 8mendment requested strengthens the defense of the Defendant is not the type of prejudice requh'ed. The opposing party must show that there is some substantial prejudice to his legal position. For example, where there is a request to amend after an opposing party has presented all his evidence or where the opposing party has incurred substantial costs to present his case might be considered sufficient prejudice. Garv vs. Mankamvcr, 485 Pa, 525,403 A.2d 87 (1979). In general, amendments of the pleadings should be allowed with great liberality at any stage of the proceedings in order to secure a proper detennination of the case, RobCl"Son vs, Davis" 397 Pa. Superior Court 292,580 A.2d 39 (1990). tlle project with regard to improper stone depth and grading. until Defendants hired another contractor to complete the project, The Defendants did not complete the paving project in hopes that a resolution of this mailer would result in the Plaintiff fulfilling its contractual obligations. When it became clear that t1ut would not be part of any resolution of this matter, Defendants allempted to have the work completed. 3 .... " I' It was not until that time in September and October of 2000 at which Defendants became aware of these deficiencies. It is noted that the Defendant's reply to Plaintiffs Discovery which was SClVed on or about September 7. 2000, indicated that at that time Defendants had not yet hired anyone to complete the project. These particular problems would not have been discovered by Defendant but for another contractor beginning to complete the job, In order for this maller to be fully and fairly litigated, the Defendants should be granted the opportunity to present evidence of the deficiency in the workmanship of Plaintiff as it regards to their request for their additional payment ofmooey. While it is true that the facts with regard to this particular action occurred several years ago, the litigation is relatively young in that the Complaint was filed on May 7, 1999. The case has proceeded through Preliminary Objections and through the Defendant's Answer to New Maller and Counterclaim filed on or about May 5, 2000. There has not been any unreasonable delay of this mailer by the parties and Defendants contend that allowing the Amendment would not prejudice the Plaintiff with unreasonable delay, After that time sho'Jld discovery be completed, it would be appropriate to rc-listthis maller for trial. B, Whether Defendant Fox is entitled to recover the late charges pursuant to a signed agreement which calls for late charges to be assessed against Plaintiff for failure to complete the project? SUGGESTED ANSWER: YES. C, Whether Defendant Fox is required to pay additional monies to Plaintiff when Plaintiff has filed to complete the contemplated project as evidenced by the fact that the township has not fully released the bond held for the paving work? SUGGESTED ANSWER: NO. D. Whcther Defendant Fox is required to pay any monies to Plaintiff Walters in excess of the contr:lct amount? SUGGESTED ANSWER: NO, 4 , ,':,\_' ~\' ',"" ~', : ',:' ':.:,;.. ':,-:.,'" ;:' ,~ I:;:; ':\~'<::'-;:;':i:~;J"-~;:'::'~i:i;~~!~I~:'t'j.:t,'f,':{~;~~~:~l..;',~~~.,..,~~>:,!'r\ ~',..,'~' :1,",~: '.:- :::;:: '.-- '.:' / ~:, ~':!.'T" ;:~. ,::'~,:'., r, I"~' , .,. <r~l";' ,; < Ii " I': E. Whether there was a vldid settlement agreement reached between the parties when it was premised on the faet that the project had bcen completed when in fact it was still uncompleted? SUGGESTED ANSWER: NO. III. SUMMARY OF LEGAL ISSUES REGARDING ADMISSIBILITY OF EVIDENCE Defendants arc not aware of any special issues regarding admissibility of evidence at this time, IV, WITNESSES A, Defendant, Harry H. Fox, Jr. B. Witnesses to support allegations to be made pursuant to amendment of Defendant's Answer with New Matter and Counterclaim. C. Defendant reserves the right to supplement this list and to call all witnesses identified by Plaintiff. V, EXHIBITS A. All docunlents attached as Exhibits to Defendant's Answer With New Matter and Counterclaim as well as Exhibits attached to other Pleadings. B, All Exhibits as identified by Plaintiff. C, Defendant reserves the right to supplement this list with regard to items raised in Defendant's Petition to Amend Answer With New Matter and Counterclaim. VI, SEITLElIfEr.'T PROPOSAL Prior to the discovCl)' of deficiencies in workmanship. Defendant had offcrl'>d $14.848.36, The Plaintiff's sctllement demand is $24,000,00. 5 ". -. ~.,. ..... -._0" Respectfully submitted, KN1rt HUGHES ~./f{}w~ Mark D, Schwartz, Esquire 60 West Pomfret Street Carllsle,PA 17013 717-249-2353 Supreme Court I,D. No: 70216 By: Attorney for Defendants, Harry H. Fox, Jr., and Jobn H, Fox t1a1FOX & FOX, a partnenblp (, ". REAGER & ADLER, P.C. ATTORNEYS AT LAW 2331 MARKET STREET CAMP HILL, PA 1701'.4642 (717) 763-1383 tf) ,., . , ,",>.' ,~'\ ",,>. .... "~ "',: ... :',,': >":~' ::.:..".:,' ': ':"': .: .'~',.',"...'.'.' :' ... ;";"''-''~'" .. '>"'''',:'.:':'' JOHN F. WALTER EXCA VA TING, INC., : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v, : No. 99-2755 CIVIL TERM HARRY H. FOX, JR., and JOHN H. FOX, : CIVIL ACTION _ LA W t/a FOX AND FOX, a partnership, Defendants : JURY TRIAL DEMANDED PLAINTIFF'S PRE-TRIAL MEMORANDUM I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY This case arises out ofa written agreement between Plaintiff John F, Walter Excavating, Inc, (hereinafter "Walter") and Harry H. Fox, Jr., and John H. Fox, t/a Fox and Fox, a partnership (hcreinaller "Fox") dated Scptember 1995. Under thc agreement Walter agrecd to provide excavating and paving construction work at a project owned by Fox known as Crossroads School Estates (hereinaller the "Project"). Aller Walter commenced its pcrfonnance under the agreement, Fox requested that Walter expand the scope ofiis work under the contract to include excavating work in connection with the laying of electrical lines at the Project on a time and materials basis, which Walter agreed to do, Walter submilled pcriodic invoices for the work it was perfonning undcr the contract while its work was ongoing thrcughout the course of the project. The total amount of the invoices submilled by Waltcr to Fox was $171,458.77. Despite the fact that Walter completed all of its work undcr the agreemcnt in a workmanlike manner in accordance with the contractual plans, Fox has paid Waltcr only $138,670.50 leaving a principal balance due of$32.788.27. Under thc tcmlS of the agrcclllcJ1t, Fox '....as to pay Walter on or before thirty (30) days aftcr rcceipt of Waltcr's invoices. Fox did nOI givc Waltcr any notice of any alleged deficiencies in the pcrfomlancc of its work, Thc instanl action was COll1ll1enccd by Walter by the filing ofa Complaint on or about May 7, 1999. Fox filed preliminary objections to thc Complaint which preliminary objections were dcnied by this Honorable Court on November 23, 1999. On or about January 7,2000, Fox filed an Answer with New Malter and Counterclaim to whieh Walter's respondcd on May 5, 2000. Walter's Complaint contained two (2) counts, one for breach of contract and the other for unjust enrichment. Walter's breach of contract count contained a request for relief under the Pcnnsylvania's Contractor and Subcontractor Paymcnt Act 73 P.S, 9501 et seq, which authorizes the award of statutory interest, pcnalties and allorney's fees for Fox's unjustified withholding of payments earncd by Walter. Walter's Complaint request,s jUdgmcnt in tlie principal amount of $32,788.27 plus inlcrest, penaltics and attorney's fecs as authorized by the Pennsylvania Contractor and Subcontractor Payment Act. In its Counterclaim Fox asscrts that it is entitlr.d to recover from Walter $734,000,00 in liquidated damages based on an allcgcd delay in the completion of Walter's work. Notably this Counterclaim was not asserted until more than four (4) years had expired from the time of Walter's alleged breach. Moreover, by Fox's own admission, the parties entered into a sClllement agreement regarding the balance due Walter in which Fox acknowledged in writing the balance due Walter as well as a paymcnt schedule by which the selllemcnt payments were to bc made by Fox, Fox made scycral paymcnts toward thc balance remaining in accordance with the selllernent agrcement. It was not until immediatcly prior to Fox's making thc final payment undcr the agrccd to sClllcmcllt that Fox first c1aimcd that \Valtcr failed to complete its contract work. Fox 2 \ . .. . . - :.,. ~, : :'. ,+, '. .' '., . . ' '. ' , . ., I. ','. . '.". D. Whethcr Fox has been unjustly enriched when it has accepted all oCWalters' labor and materials without fully paying for thcm. Suggested Answer: Yes E. Whether the liquidated damages clause is unenforceable as a penalty? Suggested Answer: Yes III. DISCUSSION OF AUTHORITY A, FOX'S UNJUSTIFIABLE WITHHOLDING OF CONTRACT PAYMENTS FROM WALTER CONSTITUTES A BREACH OF CONTRACT AND VIOLATES THE PENNSYLVANIA CONTRACTOR AND SUBCONTRACTOR PAYMENT ACT UNDER WHICH WALTER IS ENTITLED TO RECOVER STATUTORY INTEREST, PENALTIES AND ATTORNEY'S FEES, The evidence to be presented by Walter at the trial oCthis matter will show that Walter completed its work in a workmanlike manner and submitted invoices for payment. The evidence will show that after completing its work and submiaing invoices in a total amount of $171,458.77, and that Fox has paid only $138,670.50 leaving a principal balance due of $32,788,27. Fox acknowledged the balance due and in fact entered into a wriUen Sealement Agrecmcnt to pay the balance due plus interest with a paymcnt schedule. The evidence will show that Fox made some, but not all of the scheduled paymcnts under the Settlement Agrccment. Under Section 50S(c) of the Pennsylvania Contractor and Subcontractor Payment Act (73 P,S, SSOS(c)) a project owncr is requircd to make payment to the contractor for work and matcria!s provided within twenty (20) days after dclivcry oClhe contractor's invoices or within the time limit set forth in the contract. Hcre the evidence will show that the parties agreed that Fox was to pay Walter within thirty (30) days of submission of Waller's invoice. The only 4 .~.... TO TIMELY COMPLETE THE WORK IS BARRED BY THE STATUTE OF LIMITATIONS. i : i I, I , , i . I I I I I , I ! Under 42 Pa.C.S. ~5525 thc statute of limitations for a breach of contract action is four (4) years. In its Complaint Fox allcges that Walter was to complcte its work under the contract by December IS, 1995. It is this date that Fox cites in its Countcrclaim sctting the time of Walter's alleged breach of the contract. However, Fox did not file a counterclaim in this action until January 7, 2000, more than four (4) years beyond the alleged breach of contract. As such, Fox's counterclaim is barred by the statute of limitations. Co FOX'S CLAIMS FOR LATE CHARGES IS BARRED BY THE DOCTRINES OF WAIVER AND ESTOPPEL BECAUSE FOX ENTERED INTO A SETTLEMENT AGREEMENT WHEREBY IT ACKNOWLEDGED THAT IT OWED WALTER THE BALANCE OF ITS CONTRACT MONmS AND ACTUALLY MADE SEVERAL PAYMENTS TOWARD THE SETTLEMENT AGREEMENT. An estoppel can be asserted where one, by his acts, representations, or admissions, or by his silence when he has the duty to speak out, has intentionally or by culpable negligence induced another to believe that certain facts exist and the othcr rightfully relics and acts on such belief to his prejudice if the fonner is pemlitted to deny the existence of such facts. B1of~en v. rlltaiar, 460 Pa, 411, 333 A.2d 841 (1975). The evidence to be introduced at the trial will show that Fox acknowledged that it ow cd Waltcr the balance due on its contract. The evidence will also show tt,lt Fox also made paymcnts toward a Settlement Agrecment under which Fox acknowlcdges the amounts due in writing, Thc evidence will show that Fox is estopped from now arguing that it docs not owc Walter the amounts duc under the contract. In the instant case Fox not only acknowledgcd in writing that it owed Walter thc balance of the contract but Fox also made payments toward a Scttlemcnt Agrcement which acknowledged the balance duc. As sueh, Fox is cstoppcd from claiming that it docs not owc the monies claimed by Wahcr. (, ", D. FOX HAS BEEN UNJUSTLY ENRICHED IN THAT IT HAS ACCEPTED THE LABOR AND MATERIALS OF WALTER WITHOUT FULLY PAYiNG FOR THEM, Unjust enrichment has been defined by the Appellate Courts of Pennsylvania as a quasi contractual doctrine based in equity which elements include a benefit confcrred 1m the Defendant by the Plaintiff, an appreciation of such benefits by the Defendant, and acceptance and retention of the benefits under such circumstances that it would be inequitable for the Defendant to retain the benefit without paying for same. Wiemik v PHH IJ S. Mortgage Corporation, 736 A.2d 616 CPa.Super 1999). The evidence to be presented at trial will show that Walter conferred upon Fox the benefit of its labor and materials and that Fox accepted and rctained the benefits of Walter's labor and materials without fully paying for same, As such, Fox has becn unjustly enriched by Walter. E, THE LIQUIDATED DAMAGES CLAUSE IS UNENFORCEABLE AS A PENALTY. The liquidated damages clause contained in the contract and the amount ofliquidated damages being claimed are unenforceable because they constitute a pcnalty and had no relationship to the actual damages allcgcdly suffercd by Fox. BrinicllJUbl.a.Brinich Ruildcrs v Jrncka, _ Pa.Super _' _ A.2d _' 2000 WL 1035975 (July 28, 2000). IV. WITNESSES A. J. Brian Waltcr, Vice President John F. Waltcr Excavating, lnc, 8, Rogcr M. Morgcl1lhal. Esquire C. Plaintiffrescrves the right to call all witnesses identified by the Defcndant as on cross, 7 v, EXHIBITS 1. Contract datcd Septcmber 1995, 2. Projcct Plans 3. Invoiccs from John F. Walter Excavating, Inc. to Defendant. 4. Applications for Payment submitted by Jolm F. Waltcr Excavating, Inc. to Defendant. 5. Proposal of John F. Walter Excavating, Inc. dated July 24, 1995, 6. John F, Walter Excavating, Inc. account statement concerning Fox's West Pennsboro Township project. 7. Liberty Associates checks payable to John F. Waltcr Excavating, Inc. 8. Drawings depicting the Project property. 9, Scptember 24, 1997 leller from Roger M, Morgenthal, Esquire to James Hughes, Esquire. 10. November 3, 1997 letter from James Hughes, Esquire to Roger Morgcnthal, Esquire. 1 I. June 10, 1998 letter from James Hughes, Esquire to Roger Morgenthal, Esquire. 12. August 17, 1998 lellcr from Jamcs Hughes, Esquirc to Roger Morgenthal, Esquire with enclosed S 13,000.00 check from Libcrty Associates. 13. Scptcmber 1, 19981ctter from Rogcr Morgcnthal, Esquire to James Hughes, Esquirc with cncloscd account statcmCl11. 14. October 15, 1995 leiteI' from Jamcs lIughcs, Esquire to Roger Morgenlhal, Esquirc, 15, In\'oices of Rcagcr & Adkr. 1',(', Ii VI, SETTLEMENT NEGOTIATIONS That parties have exchanges settlement proposals as follows: . The Defendant offered to settle the case for $14,848.36. . The Plaintiffrejected the offer and has proposed a settlement proposal by which it would accept $24,000.00 to settle the case. Date: Theodo e A. Adler, Esquire Attorney LD. No. 16267 Thomas O. Williams, Esquire Attorney LD. No. 67987 2331 Market Street Camp Hill, PA 17011-4642 Telephone: (717) 763-1383 Attomeys for Plaintiff 9 CER'l'lflCATE OF SERVICE ANI) NOW, this )" day of December, 2000, I hereby verify that I have caused a true and correct COllY of PllIintifrs Pre-trial Memorandum to be placed in the U.S. mail, first class, postage prcpllid and addrcsscd as follows: Mark D, Schwartz, Esquire Irwin, McKnight & Hughes 60 West Pomfret Street Carlisle, PA 17013 " - . . ~. " ~ . ;. . - . . ' , ! , \ . ".'.,~,: . ~:." " .' : . ',' " '. ~,J . \ ... .:' '. ' J . .,'. t' '" .:.. " " LAW OFFICES IRWIN McKNIGHT & HUGHES ROGeR B, IRWIN MARCUS A. McKNIGHT. JJ/ JAMHS D. HUGHES R/;"BECCA R. HUGI/ES MARK D, SCl/lYARTl DOUGLAS G. MILLER WEST POMFRET PROFESSIONAL BUILDING 60 WEST POMFRET STREff CARLISLE, PENNSYLVANIA 17013'3222 (71 7) 249-2353 FAX (717) 249'6354 !;.AWL: IMHLAWOSUP!;RNEr,COM JlAROl.D S, IRWIN (/915-1977) J/AROl.D S. IRWIN, JR. (/9S4-/9H6j IRWIN. IRWIN &; IRWIN (/I}J6-/9Hfi) IRWIN. IRWIN d: McKNIGIIT (/9R6./994) IRWIN, McKNIGHT & I/UGI/ES (/994, ) November 22, 2000 THE HONORABLE J. WESLEY OLER, JR, CUMBERLAND COUNTY COURTHOUSE 1 COURTHOUSE SQUARE CARLISLE, PA 17013 RE: John F, Walter Excavatlnl!. Ine, v. Harrv H. Fox. Jr, and Jobn H, FOll;. tia Fox and Fox. a Partnersbjp No. 1999 Civil 2755 Dear Judge Oler: I represent the Defendants in the above-referenced mailer. Please note that J am writing pursuant to instructions received from your office that any objections to the listing of this case must be presented in writing. This letter serves as Defendants' objection to the listing of this case for trial. Pursuant to the Praecipe for Listing Case for Trial by Plaintiff filed on or about October 3, 2000, you issued an Order scheduling a Pre-trial Conference for December 6, 2000 at 3:00 P.M. and trial for January 11,2001, at 9:30 A.M. In Septemb'cr of 2000, Defendants served Plaintiff with Answers to Interrogatories and Request for Production of Documents. Defendants were then intending to serve discovery requests of their own when Defendants were made aware that the Plaintiff had listed this mailer for trial. In that the parties were in the middle of the discovery phase of this maller, the listing for trial came as a swprise to the Defendants. In the meantime, Defendants have served IntcrrogatOlles and Request for Production of Documents on Plaintiff through its counsel. Additionally, subsequent to the service of Defendants' Answers to Plaintiffs Interrogatories and Request for Production of Documents, it became known to Defendants that there were certain deficiencies in the work performed by Plaintiff that had previously been unknown to Defendants. These deficiencies in workmanship became known to the Defendants because it was at that time period that Defendants began to attempt to complete the project at issue. Upon Defendants' attempts to complete said project, the issues with regard to the quality of workmanship became apparent to Defcndants. ,,\y.1 ._ d.J ' " : . ,~, :' ". 't~'." ",' .' .., I, "'_ " I~,',' , "..~~" . :,' . .,. ,!',' .'" J,' ',) " , ' , " ,,' ' ,',' "., , ",',' ',:',',,':' ' :-," ", " :: ,,' , ,',', .: " .. " , , " " , ',,:' -,' , , , .. '.:.. "C_ .' '.' REAcm & ADLER, P.C, DY, THEODORE A. ADLER, ESQUIRE Atlorney 1.0. No. 16267 2331 Markel Slreel C.1mp Hill. PA 17011 Telephone: (717) 763.1383 AlIarneys (or Plaintiffs JOHN F, WALTER EXCAVATING, INC., Plaintiff : IN THE COURT OF COMMON PLEAS : CUM8ERlAND COUNTY, PENNSYLVANIA vs, NO, ff- .)/~ t~J " ......, () c.: l.:> -- -:! '1:: [ : ~ ;::j r" ['~ ~':. " " -" n :T1 ~. ...:- I -, to'.. ,. ...., '0, ? -,' ". r:: ~'. ~. ':J ~... 'Tl ~":, ::~ ~.~ -, .. ,- ) - t;':' :-n '- .. :;.. "" -: "" -< HARRY H, FOX, jR, and JOHN H, FOX, CIVIL ACTION -lAW tJaJ FOX AND FOX, a Partnership, Defendants : JURY TRIAL DEMANDED NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth in the fol/owing pages, you must take aClion 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 10 the claims set forth against you, You are warned that if I'OU fJilto do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for .my 1l10lWY cI.linll'd in the Complaint, or for any other claim or relief requested by the plaintiff. You I'lay lose money or property or other 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, Lawyer Referral Service Court Administrator 4th Floor Cumberland County Courthouse One Courthouse Square Car/i,ll', PA 17013 (717) 2~O,6200 t' , i :1 , .' ::' : ,;' ,'~ ~ ',1 .' ;": :.,' \~. ,:L,~':~, ':1:' ",;" ::': " . ~.''':~/,,::':;;,~,~~~:,,~~~:~:~t-I:.<; l~~:~~:7:',,~~'~r:~:''':'~~,' . >,.r:~ ",: l ':':',.",~.)<,,:,~,:.:I,~~., ", \.! :'<:,i., :':';'d~' ":.'('~ I >;",,: ~'~:'~;;>i{-~~~ ,o: ,..: ':',., ", ",'" .,' '.". i' ,. ."',.,_' II,,;..,'.. " . .. - REAGER & ADLER, P.C. nY: THEODORE A. ADLER, ESQUIRE AlIorney I.D, No. 16267 2331 M"rket Slreet C"mp Hill, PA 17011 Telephone: (717) 763,1303 Attorneys (or Plilinliffs JOHN F, WALTER EXCAVATING, INC., IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff vs. NO, HARRY H. FOX, JR. and JOHN H, FOX, I/al FOX AND FOX, a Partnership, CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED COMPLAINT COUNT I 1. Plainliff is John F. Walter Excavating, inc. (hereinafter "Walter"), a Pennsylvania corporation with offices in Newville, Cumberland County, Pennsylvania. Walter is a paving and excavating contractor. 2, Defendants are Harry H, Fox, Jr. and John H. Fox who trade as Fox and Fox, a partnership with offices at 60 S. Pin Oak Drive, Boiling Springs, Cumberland County, Pennsylvania. 3. In September, 1995,Ihe parlies hereto entered into a contract agreement (hereinafter the "Contract") whereby Walter agreed to provide excavating and paving construction work at a project owned by Defendants known as Crossroads School Estates (the "Project"). A copy of the Contract Agreement is all.lChed hCrI,IO ,lS Exhibit A, :.":: .:,: .)"." I ; ,;'. '~::'I'~' :' ~ ':;'~"r' ,'" ~ '.':\',"':;." ~'<,,~} .J';'~~:">~;':~:.~;1:':6~')::,);1'~:~~,~i*~~':7':'~~~' ,,~~.' j ( {_, :::",'":;,,..,. >;"'; ", ! :::':"~'" . ,\<,,~ : :,;,:":.",, '_~~+;" ',.', , , '/ 1"'\1 ~ 4. Afler performance commenced under the Contract, Harry fox requested that Walter expand the scope of work under the Contract to include excavating work in connection with the laying of electrical lines allhe Project on a time and materials basis. Waller agreed to do so, ~ 5, Waller submitted periodic invoices for the work it was performing under the Contract. d. ,~ ~ ~ ~O. \),\1 e;' ~.,iJvJ (fdf~...J Copies of the invoices submitted by Walter are attached hereto as Exhibit B. (lI 6. The total amount of the invoices submitted to Defendants by Waller is $171,458.77, 7. To date, Defendanls have paid Waller $138,670.50, leaving a principal balance due of $32,788.27. 8. Despite repealed demands by Walter, Defendants have failed and refused to pay the principal balance due. 9. Defendants' failure and refusal to pay the balance due Walter is a breach of contract, / 10. Walter is a contractor as Ihat term is defined in the Contractor and Subcontractor Payment Act, 73 P.s. 9501 el seq. (the "ACI") ~ 1 1. Under the terms of the Contract, Defendants were to pay Waller on or before Ihirty (30) days after receipt by Defendanls of Walter's invoices. 12, Defendants did not give Walter any notice of any alleged deficiencies in the ~vj performance by Walter or the Project within seven (7) calendar days of the date that the invoices were P::. . d rf> ~ rece,ve. ~ 13. As of Ihis date, Defendants owe Waller a principal balance of $32,788.27 for work Waller performed on the Project as a contractor. 14. More than Ihirty (30) days have passed since Waller last submitted its final invoices for payment. -2- " .' ,] J.r-1t I I I I I l >1 II f' r j I II I, , I i: " I: II I' , ; , I , I ",' . " " ,; ..-(',' """':'\:')'):,',.~",..i~~:,.i;~J~" '; ,', ,.,','-"" """~ , .",.,'~'l4.'l'b...~~'t'~~""'"~",,,",~<~J~" "':" r,' """ "'. " , ..,,'..,', ,1'l"~";;';,:..,:",:,r "~;'\'~' ,~. "~,' " ',':,,", . ,~"" ,:,',"-:' , . ~ '" .',"' ,",' .,,~ ' "'",: ,". " ;"",':'''' 'j , , 15, Under 9505 of the Act, if any progress or final payment due Walter was not paid within seven (7) days of the date for which payment was due under the Contract, Walter is entitled to statutory interest at the rate of 1 % per month on the balance due and owing. 16. Under 9512 of the Act, if litigation is commenced to recover payment due under the Act, Defendants are further liable for a penalty equal 10 1 % per month of the amount wrongfully withheld and an award of reasonable attorneys' fees, together with expenses, WHERE FORE, Plaintiff, John F. Walter Excavating, Inc., respectfully requests this Honorable Court to enter judgment in its favor and against the Defendants in the amount of $32,78B.27, plus statutory interest, statutory penalties, attorneys' fees and costs. COUNT II - UNJUST ENRICHMENT 17. Walter incorporates herein by reference paragraphs one (1) through five (5) of this Complaint as if fully set forth herein. 1 B. Defendants promised Walter that they would pay Walter lor the excavation and paving performed atlhe PlOjecl. 19, The labor and materials provided by Walter to Defendants for which Defendants have not paid is $32,7B8.27, as is more fully set for\h in Exhibits A and B attached hereto. 20. Waiter, in reliance upon Delendants' promises to pay, was induced to act and did act by supplying Defendants with the labor and materials as more fully described in Exhibits A and B allached hereto, 21. Waller'S reliance on Defend~\nts' prornises to pay was reasonable and justified. .3- \ I \ i , i' , I I I \ i i \ \ I r. . , ..., II I, , l I, 22. It would be unjust to permit Defendants to retain the benefit of Walter's labor and materials without paying for same, 23. Injustice can only be avoided by enforcement of Defendants' promise to pay Walter. WHERE FORE, Plaintiff, John F. Walter Excavating, Inc. respectfully requests this Honorable Court to enter judgment against Defendants in the amount of $32,788,27, plus lawful interest and costs. Respectfully submitted, Date: May 7, 1999 REAGER & ~"ER' P.~ THEa ORE A. ADLER, ESQUIRE Attorney 1.0, No, 16267 2331 Market Street C;Jmp Hill, PA 17011.4642 (717) 763.1383 Attorneys for Plaintiff .,1. , '. . ", , I I EXHIBIT A . .,:' '; 'il ',' . '.' ','." :':,. ,'1 ,to ':'. ....:. :,.,~', ,--~ - '.,' . . Cl . . '. . /. " ' "" ~ ',', \ " .. 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" '" :r.: ". l- .... ....... a .~. o '" IL. U l- H o UU HH "'''' :I::r::l-'-~liJ uuuuu.-.- I-l-WUJOl.:\(f) HH-I-lp:t-::> OOL1JUJ tf)O 1-'" 'J> U ::>0 00: -' 1-1--'-1......:...-' 'J')tnH:J::>:J:J ::>:J"t!:~.~l.I: ooc::::::c..:c l:'l 0 .-.: <1: 0 c- '" 0: '" 0: .-, '" .-, "" 0: "'. .0 -0 x;.- '" >< '" u co '" 0\ 0 0: '" ... 0 ::> .... IJ... 0 "'.... -' m <:> -' ...0 ,.. '" '" r-- >- 0 1Ilr-- c: -' .... rr; -' .. r~ n:: 0: (...: n: cr; .... -' rr; .... -' 0 0 0 0 0 c ,0 "' 0 '" q H <C <l: ~ ...... '" CD '" on m ,~ N N N '" N 0 0.. X N 00.. <[ <l: " " ,T I I I I -' -' -' -' -' '" c 0 0 ~ (0 Atf..l 9td 1DIIl. l.O\D\Ol.O ", (]"I l:Tl C'\ I I I 11.1..' .'f'\ N ('") u"'l ;;.:: 1- ~L.G ~I ~. ~ ~ ~ i ;:;X3 ;'::::1'l':lf1 oJ -' .~ I- o ,- I- cO => '" .... -."' 9';I;:~ ?.:..:....:. i.:. -"- OO:"JIIV .U:J'QV v II:fOV:'IU ..,. \JU',"!)/.'-.l.l':, : 1,;:1, (,1'1/1: If; ;nOl'>,_OfllC '...., .'.-~f~,;" .. fj/ :3/00 U: 1"'1: 71777645':'6 JC '/11111....lbl..>U !" WelL TER EXC .... Ill: A\.ol;. I I tio "U...~II. '" ,....... 974 P06 . .. '." .~ . ~oD1vod: " 1'lAY 133 '99 Ie: 19 , ,. 2. TilE OWNER agrees to pay the CONTRACTOR for the sum of $140,238.00 for said work, said pa)-ments to be mnde upon acceptance by West Pennsboro Township and upon release of the money held by West pennsboro Township under a completion Bond, 3. CONTRACfOR wiU be responsible to notify the West pennsboro Township to make the necessary inspections of the work, so that payment may be released from the Township and the Bond reduced, 4. CONTRACTOR iigree:; to besin the work on September ,;if' , 1995 and to have the work fuUy completed by /)2c /5/ ,1995 and agrees to pay a f j'c.o per diem chnrgc to OWNER if the work has not been completed by , 1995 and until the work is nctually completed. 5. This CONTRACT will be binding Ilpollthe parties, their successorS and assigns. 2 , . 'I: \""h.;!Q% p,..con'lJI'Ml CUltl0f'o\ . lU".4 "O'l~On'umcll Conlll 1..01;1' ...... . V. - ' Y" ' I"'ag~ NU. .l. I""'~~~ .l. 0, ~rrq,lll13Ul ,.. "" II ~... JOHN F, WALTER EXCAV,1\TING, P.O, Box 175 NEVNILLE, PENNSYLVANIA 17241 (717) 776.3148 PROPOSAL SUDMtTTtO 10 Hany Fox Jr, SlR[[T 2U Old York Road "HONE. or.n Jul.y 24, 1995 JOB 1~"Ml Crossroacs School Estates JOO LOCATION CITY, &T^1C AND ZIP coot DilJ.sbl~g, PA 17019 MCtill[CT D"H or rlMiS JOD rll0r~[ We hereby ~ubmit ~pecillca\lon50 and cs.limalcs, lor: 1-".;:,:r.:C:V':::1:ing Ct pav:i.!lC C1.(:f.:.rirl9 Corlst. Bnt!"E:.J"IC'::: Silt FGn(';':~ Strip ':~CI.:;;(.i..l Ebpli1cc ~\:-~~\=cjil (:: I ~':":i'.J (s ',' Hctc!:t i.Cl) L::.~ :":",F. eil] Y) Si.te c\,;t [. FiJ.~ E.....:ce:r::s Fij 1 Firl'~~ C;~T,di.'l0 S'\',"'::ilc G..tao:iir:g StC'rr.i SC:\)<lr (5.::c}:..(iJJ. ;..., :0 1Y,;; o:l-sir.e iill.j Off-site PC':-Jd i'~crl: Stene StD 13 + '3 to 16 + 33 (6") 7emporDX)' Cul-De-Sac PFJV~~S - ~~~ 0 + 09 to 13 + 43 TOT?l, $140,238.00 fQ:K EXTFA: BuD; - S24,OO C. y, Trench Hand Drill - S80.00 C. Y. Trench - Wagon Drill - $25.00 C. Y. Boulders - over ~ C.Y. - $15.00 C. 'l. I'lcchunical - S15, 00 C. '1 . mr lJropOnl' hereby to furni!.h material :md labor _ complete in 3tcordance with abo\'e specifications. for the sum One P.und.rcd Forty TJlOuSund 1'vJO Hundred TlU.r1:y-cight ---------------a6lra,. ($ 140,238,00 P'ymenl to be made u lollo~'~: Net - 30 DDys I I I \ , i ~, I (,(' dJ)',1 I I \ ...U "'.Itf..lll rV'I'nlnd \0 tor .. uwof...r:. AU ...tl'~ to Ill' (omplrlUI In , ....orlo.m~".l...' "",,"t' "l'COldinC 10 ,I,nil.'ll pluliru. "I'y .1l....IoM (I' tlr~"',on If OM ,ltO'" U>H""" "(Inl '''wo!'',''1 t'~tr. (.0'" ....n lit' uttvtrCl (lnl,. V('(II'\ ...."11..1\ 0.0..... ,..d ..,II bl'ram, ,n u". '....r'.. ~f ..nd .t>o~ tht uto.....:... "II _f'lI'l'm.."l. (o"I."tl""\ ",0(>" ,'''lo.fI" Ut'''"nll Of drl.,... ,*,on(l our (UI'lI.oL 0...."'1 Iv ("f)' lu" to,r.Ulo ."l! Olhrr '."(.rJ....y .,.~u'."l'. 0....- ~Thr'5 .,, ,,,,lIy (ow..O Ly .....o'''"''n.. CO"'P'"nul.,)" IM",ran{l'. Note: 1 hi~ ploro~:;l mil)' br w;\hd,"'wn 1'y u~ If nul Jl(.tt'plt'd .....'\l1m Avlhoflad S'Cn..lulr i\rrrptnnrr of 'Prop OJlol-lh. .b.', PI",", '1'<''''''\'0"' &nd cond,tiOnl are U1t~lattory Ot"d .ft httfby "Ufplt'd. You ..(' IH,tlhofind 10 do 'ht work n lpc-t,f,td. Paymfnt .....11 t.t mpOf U nun,nr-d "bi)vt. $icnp1r..lIt S;,n.turt O.lr 01 "tttP\lnc.t: " " ,. I . ;..", " .... . ", I' . " " ' ' . .... .' I" , " . , 26. The scope of the work required under the agreement was for excavating and paving work for the Crossroads School Road Estates, Phase II. 27, The agreement required that Plaintiff complete the project by December 15, 1995, 28, The Plaintiff did not complete the excavating and paving work required under the agreement for lhe Crossroads School Road Estates, Phase II by December 15,1995, and has yet to complete said work, 29, The agreement requires Plaintiff to pay a $500.00 per diem charge to Defendant if the work was not completed by the end of 1995. 30. Under the contract, the Defendants have a duty to pay for work perfonned by Plaintiff on the condition thal the work is accepted by West Pennsboro Township and the Township has released monies being held under a completion bond. 31. TIle Defendants have paid Plaintiffs $138,670.50 which includes payments made pursuant to release of bond monies by the West Pennsboro Township as required under the contract and monies paid for additional rock excavation for layi"g of electrical lines whkh was agreed to by the parties. 7 32, It is the Plaintiffs duty under the contact at paragraph four (4) to notify the township to make the necessary inspections so that payment may be released. 33, West Pennsboro Township still has control of monies held under the completion bond and has not releasee' <lilY additional monies from the bond which would require additional payments to the Plaintiff. 34, In the alternative, the parties reached an agreement (hereinafter "settlement") regarding payment of the Plaintiff's outstanding invoices for work performed by Plaintiff. Attached as Exhibit "B" and incorporated herein by reference thereto are two letters exchanged between the parties' counsel outlining the settlement agreement and it~ terms, 35. Pursuant to the settlement, Defendants agreed to pay to the Plaintiff a sum of $35,348,36 plus $5,000,00 in interest to pay the outstanding debt owed by Defendants to Plaintiff (See Exhibit "B"), 36. By check dated May 27, 1998, Defendants made a payment of $12,500,00 toward the outstanding agreed upon balance owed of $40,348.36 which rcduced the outstanding debt to $27,848.36. Attached as Exhibit "C" and incorporated herein by reference thereto, 8 37, By check dated August 6, 1998, Defendants made a payment of $13,000,00 toward the then outstanding balance of 27,848.36 which reduced the outstanding debt to $14,848.36. The Plaintiff acknowledged receipt of said payment by letter from its counsel dated September 1, 1998, Attached as Exhibit "D" and incorporated herein by reference thereto are said letters. 38, Prior to making the final payment under the settlement, it was discovered by Defendants that the Plaintiff had not completed the work as contemplated under the contract. The Defendants notified the Plaintiff of this situation by letter dated October 15, 1998. Attached as Exhibit "E" and incorporated hereby by reference thereto. 39. Tite Defendants had originally agreed to the settlement upon representation by Plaintiff that all work contemplated under the original contract had been completed. 40. After discovery that all work had not been performed, the Defendants required that Plaintiff perform its obligations under the contract before final payment would be made. 41. The Plaintiff did not complete the remainder of the required work under the contract and the Defendants have therefore not made final payment under the settlement agreement. WHEREFORE, the Defendants, Harry H, Fox, Jr, and Jolm H, Fox, tla Fox and Fox, respectfully request that this Honorable Court enter judgment in favor of the Defendants and 9 ,..t .', I" ,r _ , " I, ", Ii" ,~'..' . \,,>"\':';4~''''''-;:~'::'~I'''''':'':.',~:~r~,~~t';,\.;,. :',.',::.,~"'~: ,~,~:) :~.:' ~;':";I',: ,~,,".',' ".., , ,,'.' "";.:' '::" '. '.,' '," ,',.' " , .' :'1 \" ~. . ' ' ,~ . ,~. ,',' " ' " . \1 .1 ,,' " .,1VOd: 01 :lIOn U: 14: 71777645$ JC "1 "ll.I"lIl.IU ., 11l.:."",,~1I co WHL TER EXC 00 "Ul..l..H. "1 1"'_ .. ~74 peG . "'\'" .. ~~y 03 '99 10:19 . 2. TElE OWNER ngrees to pay the CONTRACTOR for the sum of $140,238.00 for said work, said pl1yment~ to be made upon acceptance by West pennsboro Township and upon release of the money held by West Pennsboro Township under Ol. completion Bond. 3, CONTRACTOR will be responsible to notify the West pennsboro Township to mllke the necessary inspections of the work, so that payment may be released from the Township and the Bond reduced, 4, CONTRACTOR 3grecs to beBin the work on September ,;1"- , 1995 and to have the '/ "lC fuUy completcd by {fic /5/ ,1995 and agrees to pay:: I' ")C-o per diem charge to, OWNER if the work has not bcen completed by , 1995 and until the work is nctually completed. 5. This CONTRACT will be binding upon the parties, their successors and assigns. 2 ,',.. .. '. ~ ' ., , . LAW OFFICES' IRWIN McKNIGHT & HUGHES ROGER D. IRWIN MARCUS A. McKNlGUT, /IJ JAMES D. HUGHES REBECCA R. HUGHES DANIEL W. DeARMENT WEST POMFRET PROFESSIONAL BUILDING 60 WEST POMFRET STREET CARUSLE, PENNSYLVANIA 17013,3222 (717) 249.m3 FAX (717) 249.6354 E.MAIL: IMHLAWGAOL.COM HAROLD S./RWlN (fO:.s.rOm HAROl.D $, IRWIN, JR. (r~flletl' lRW1N,/RYflN" IRWIN (UI56-fG66) IRWIN, IRWIN.. IkKNl:itfT (fIlM.fllP4) November 3, 1997 fiLE COpy VlA HAND DELIVERY ROGER M. MORGENTHAL. ESQUIRE FLOWER, MORGENTHAL. FLOWER & LINDSAY 11 EAST mGH STREET CARLISLE, P A 17013-3016 RE: JOHNF. WALTER EXCAVATING/CROSSROAD SCHOOL ROAD ESTATES, PHASE II Dear Roger: In accordance with our previous conversations, enclosed here\\ith please find the proposed Mortgage and accompanying Nole with respccllO the agreement reached between the parties concerning the above.referenced mauer as outlined in my leuer to you of July 1, 1997, Both of the enclosed documents provide that Liberty Associates, or its assigns, would tender the outstanding principal amounl due ofS35,348.36, together ,vith an interest charge of S5,CQO,OO, to your client by April 15, 1998. TIle mengage would be recorded against the fl'm.;n;ng lots of Crossroad School Road Estates, Phase II, West Pennsboro Township. However, please nOle that the payment is subject to your client obtaining wriuen appro\'a1 from West Pennsboro Township that its services were appro\'ed and that the completion bond of the developer has been reduced accordingly. These provisions were clearly provided for in paragraph 2 of the original Agreement. In addition, in the C\'ent that any of the lots are sold prior to the anticipated payoff date of April 15, 1998, your client would agree to release the same in consideration of recehing :ill of!!!e net proceeds due 10 the dC\'eloper upon the conveyance, 1 trust that the enclosed documents set forth the agreement reached between the panics. Upon your rcviC\\' of the same, please advise as to any changes or revisions which )'OU feel are necessary. lfthese documents are satisf.actory, please advise and I \lill ha\'e my client e.xecute the same and thereafter record the mongage. Thalli< you for your cooperation in this matter. JDH:c1c cc: HaIry H. Fox, Jr. lIT & h'UGHES EXHIBIT "C" " ...... ,.;.;::;" :::;~::: . .:;.;:::;" , )i~!1~r:. .......,... ..'..... . .:~:i;. ,.: , ' , ~r -=- --' =:-:0::-::..:::-: LIBERTY ASSOCIATES 60 S. PIN OAK DR, BOiliNG SPRINGS, Pf, 17007 10 ff ;,', - /l1tr~d '/ PAYWTHE ORDER OF :';':0: ,,', ..' ':::;::: ~J:t .',','. . ,'.',' :.:;::: :;::::'; :::::~; ....,..'. ,::dit. 1866~ 60.994(313 tAANCH II (l" -- ,-I:,.'c.J DOLLo\RS $ /.1;51'0. ,~) ~ADAMS CO N^TJON^1. IlANK cr.m'SDURG. PFJ.INSVLV^NI~ FOR (V"~5 J(lW{\ &-1., ,Qui I:O:l~:lOCjCjt.51: Lt.:l",Sl,t...,Lu' '14"1 -II ,ky ! Labb .......IlAAlll,"J . ~'...i '::i~;~~1('::':" .::1::1(:: "':0:';"':..'." .:::;:~::.. .:;:., .,. . ..;:::~::'.' ':~;r:>)> ::;:;::::::: '~'.' . .::~~( ,I!,t -:.....:.:. ';';':.;.',"." ~?i!ili\::': ?tF. .,:.'.:.:-: . /f~' " ';{:;::: '~:i]~jt. .;:~:;:., . )i,.::, ,"I.. ...., "".f..,, :",'.;::.' ....,.. ":'::~:~ . ',','.' '."':-: .".'. '.:-::.; ...,.... :~i:;:,., ',';. " '. ....,.,.~. ',',',', ";~!r :::::~, :;1j;~1: \\~~ ::;:::: .}]!i; .tr ;:,f.:: .:::::;: "i .. :;::rt' .;.:,:.:: ,)~~: ....,'. . \; ';;':(:il~' . '.. ,;~~!' ':<1.... ;~:: /t ",,' .:;;!::~ ,...... '.,', ,','.', :<H: '}::'~ c.'. ,::" :~:: i: :\:: ,'~ :', ...' " ::;: ", .' , \ ' , I . . , ' EXHIBIT "D" , . .. . , , . lA W OfFICES FLOWER, MORGENTHAL, FLOWER & LINDSAY A PROrrSSIONAt CORPORA liON 11 EAST HIGH STREET CARLISLE. PENNSYLVANIA 17013-3016 JAMES D, FLOWER ROGER M. MORGENTHAL JAMES D. FLOWER. JR. CAROL J. llNDSA \. (717)243.5513 FAX: (717) 243.6510 E.m:til: FMFL uW@3ol.com DIETSCH & MORGENTHAL (1975.1985) FLOWER, KR.AMER MORGENTHAl &, FLOWER (1985.1992) September 1,1998 James D. Hughes, Esquire IRWIN, McKNIGHT & HUGHES 60 West Pomfret Street Carlisle, PA 17013-3222 f~? W~~ !f;~i I;;~ .] \~. ::9- :'~;~~ ~;F'~7., r:::1 ""'.'_J', " ',"I '(.,j,,__,:; , -... ...~~~~, <~;, :-:.:.;~ s:;: t'2 1~!:.: l~"':: .,~. j,' "-f ; I. ,,"(.... :: ,.': ~ .""':" " ,','. . ... ........-.;;,',. ;"-\'I.;"U;;Jfl: {\: '~i Ij;J~'.j..t '........ ..&0..... RE: JOHN F. WALTER EXCAVATING/LIBERTY ASSOCIATES Dear Jim: Enclosed is a copy of a statement which I received from my client showing the balance which they calculated after the last payment of $13,000.00. Where do we stand on getting the balance paid? If there is going to be any significant delay, it is important that the mortgage gets recorded to secure my client's interests. Thanks for your cooperation. Ve'f (:!:;:~' Roger M. Morgenthal f('; Ollie. ~hr(;'" (7'7) 776.31.9 & 776,3"~ ,ome Phon.. (7' 7~ 776."b9 FAX: (717) 776,'S66 '. / JOHN F. WALTER Excavating, Inc. PO. BOX 175 . NEWVILLE, PA, 17241 Harry H. ~ Jr. 241 Old 'iork Read Dillsburg. FA 17019-9318 RE. Crossroads School road Phase II project in West peJ'.nsboro Township DATE:. BALAlJ.:E SEIUICE: c.~ rurAL I:UZ 04-30-98 05-31-98 35. :>46.36 530.23 35,878.59 36,408.82 35,:>48.36 530.23 Service ~ Agreed To Be Paid By Fox 06-19-98 paid $12,500.00 Check 1866 Liberty Associates 35,;348.36 5,OOO.CO 41,406.62 06-30-98 07-31-98 28,908.62 28,908.62 433.63 28,906.82 29,:>42.45 29.776.08 433.63 0e-<l6-96 p.:;.i.1 $13,000.00 Check 1677 Liberty Associates 28,908.82 16,776.08 , I . '. LAW OFFICE;S . IR"VlN McKNIGHT & HUGHES ROGER B. IRWIN MARCUS A.. MCKNIGHT. 111 JAMES D. HUGHES REBECCA R. HUGHES CAmEl. W. OeARMENT WEST POMFRET PROFESSIONAL BUILDING 60 WEST POMFRET STREET CARLISLE, PENNSYLVANIA 77013.n22 (717) 249.2353 FAX (717) 249.6354 ".MAIL' IMH LAW@AOLCOM HAROLO S./RWIN (H'2S"P77) HAROLD 5. IRWIN, JR. (,g~4.rgeel IRWIN, IRwm & IRWIN (HI35.r!1e~J IRWIN. IRWIN & McKNIGHT (1985. ,gpIJ I' , . . 4 . ~ . . . . -, ' . , \ . ' :, . ~, . .', . ....., _.' . . " '. -'. .", !" " " ". "'. .' . i October 15, 1998 FJLE GD~'~.! ROGER M. MORGENTHAL, ESQUIRE FLOWER, MORGENTHAL, FLOWER & LINDSAY 11 EAST HIGH STREET CARLISLE, PA 17013-3016 RE: JOHNF. WALTER EXCAVATING I LffiERTY ASSOCIATES Dear Roger: With respect to this outstanding matter, it is my understanding that with one more lot sold, the remaining balance due to your client would be paid. However, as I indicated to you in my correspondence of August 17, 1998, it is my understanding that approximately one hundred feet of the first phase had not been paved. Therefore, please advise as to whether Mr. Walter will be finishing that section prior to receiving the last payment. I shall look forward to hearing from you. Very truly yours, JDH:c1c cc: Mr. Harry H. Fox IGHT & HUGHES I I .1 I I < I < , I t i >- Cl >- IT, '" % ~. c:, :::1"1; u:0 ().::. (5...; '..):2; -~( ;.:: ':::s ll_ ," '+;i:, '~'l-J :.,.:;:, T '.' C) ~~S ~9 0:.. M .... ..- ~'J,~:" tr:? , ,- :(JIQ l.o.. -, Ll r':')c.. i-. CJ .... ... c, ::3 <.) <:::) U I ~ ; I l ~ ~ I , . , . '., ':.' . . . ',' .', '. . REAGER & ADLER, P.c. BY: THEODORE A, ADlER, ESQUIRE Attorney I.D. No. 16267 2331 M.1rkel Slreet Camp Hill, PA 17011 Telephone: (717) 763-1363 Attorneys (or Plaintiffs JOHN F. WALTER EXCAVATING, INC., IN THE CCURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA PlainliH vs. q9- .27.S5 ~ -r:.-- NO'. HARRY H. FOX, JR. and JCHN H. FOX, tla! FCX AND FCX, a Partnership, CIVIL ACTICN - LAW Defendants JURY TRIAL DEMANDED CCMPLAINT CCUNT I 1. Plaintiff is John F. Walter Excavating, Inc. (hereinafter "Walter"), a Pennsylvania corporation with offices in Newville, Cumberland COllnty, Pennsylvania. Walter is a paving and excavating contractor. 2. Defendants are Harry H. Fox, Jr. and John H. Fox who trade as Fox and Fox, a partnership with offices at 60 S. Pin Oak Drive, Boiling Springs, Cumberland County, Pennsylvania. 3. In September, 1995. the parties hereto entered inlo a contract agreement (hereinafter the "Contra(1") whereby Walter agreed to provide excavating and paving construction work at a proj(~d owned by Defendants knowll as Crossroads School Estales (the "Project"), A copy of the Contract Agrepl11ent is .1l1ac!1t'd Iwrplo as Exhibit A. ',~' . ,.,..'.'....': .",.", ",'""1.",, ~~,.ll" .: ;",'!:~',~' '", 4. AftN performance commenced under the Cunlrall, H,ury Fux requesled thaI Waiter expand the scope of work under lhe Contract to include excavating work in connection with the laying of electrical lines at the Project on a time and materials basis. Walter agreed to do so. 5. Walter submitted periodic invoices for the work it was performing under the Contract. Copies of the invoices submilled by Walter are attached hereto as Exhibit B. 6. The total amount of the invoices submitted to Defendants by Walter is $171,458.77. 7. To date, Defendants have paid Walter $138,670.50, leaving a principal balance due of $32,788.27. 8. Despite repeated demands by Walter, Defendants have failed and refused to pay the principal balance due. 9. Defendants' failure and refusal to pay the balance due Walter is a breach of contract. 10. Walter is a contractor as lhat term is defined in the Contractor and Subcontractor Payment Act, 73 P.s. 9501 eC seq. (the "Act") 11. Under the terms of the Contrad, Defendants were to pay Walter on or before thirty (30) days after receipt by Defendants of Walter's invoices. 12. Defendants did not give Walter any nollce of any al!eged deficiencies in the performance by Waltl'r or tll<' Project within seven (7) calendar days of the date that the invoices were I , receiv('d. 13. As of this datI" Dpfpndants owe Walter a principal balancp of $32,788.27 for work \V,llh>r pl>rfonlwd ontl1<' ProjPct as ,J contractor. 14. Mon.th,lnlhir1\, (30) days haw pasSl>d since \Valt,'r laq submil1pd its final invoices for paYIlH'n1. <~. , . " I , , . , . .. , : ' , '. ' . ' " . , -,". .;'. , . '" . , ~ : . , 15, Under ~505 of the Act, if any progrl'ss or final payment due Walter was not paid within ; i I I seven (7) days of the date (or which payment was due under the Contract, Walter is entitled to statutory interest at the rate of 1 % per month on the balance due and owing, 16, Under ~512 of the Act, if litigation is commenced to recover payment due under the Act, Defendants are further liable for a penalty equal to 1 % per month of the amount wrongfully withheld and an award of reasonable attorneys' fees, loge!her with expenses, WHERE FORE, Plaintiff, John F, Walter Excavating, Inc., respectfully requests this Honorable Court to enter judgment in its favor and against the Defendants in the amount of $32,788.27, plus statutory interest, statutory penalties, attorneys' fees and costs, COUNT" - UNJUST ENRICHMENT 17. Walter incorporates herein by reference paragraphs one (1) through five (5) of this Complaint as if fully set forth herein. 18, Defendants promised Walter that they would pay Walter for the excavation and paving performed at the Project. 19. The labor and materials provided by Walter to Defendants for which Defendants have not paid is $32,788.27, as is more fully spt forth in Exhibits A and B attached hereto. 20. Walter, in reliance upon Dpfpndants' promisps to pay, was induced to ad and did ad by suppll'ing Defpndants with the labor a/ld matl'rials as more fully described in Exhibits A and B an,lChed hereto. 21. Vvalter's r"'iann' on Dl'f,'nd,lI1h' pfomi,,>s to p.lY was fl'asomble and justified. -~- . " - , , " .:.: 'J', I' ':. '. " '. : " '. ..:. ~>, .', ", ' .,' .' ,.,' ',. . .....'~,.,,',... , '.:,''':.:,,' >',,: ;:'.. <" '-:"';:';"::" ,,";I:,:',,""\:"~:"';':,:'..'>,: ;j~~,~;'::::~' :~,:',~>::.~~~J::/~'~i:'.',::..;, <::' :"::\.:,'\:'('>:.:.,':,',:':.:::;': - :",',: .:" ",,":,, Recoivod. ..,/.J/un U:14; "/1 (I/u'\buu . 7177764566 JOHN F WALTER EXC . ~ tH:o^vLII I.. "l_".l.-Il. ,.."'- d I" """1 974 POI; l'lAY 133 '99 113: 19 ." 2. TIlE OWNER agrees to pay the CONTRACTOR for the sum of $140,238.00 for said work, said payments to be made upon acceptance by West Pennsboro Township and upon release of the money held by West Pennsboro Township under a completion Bond. 3. CONTRACTOR wiU be re6pDnsible to notify the West Pennsboro Township to make the necessary inspections of the work, so that payment may be released from the Township and th~ Bond reduced, 4. CONTRACTOR agrees to begin the work on September .;1"- . 1995 and to have the work fuUy completed by Dc 15/ ,1995 and agrees to pay a .f'Ji::t:' per diem charge to OWNER if the work has not been completed by , 1995 :ll1d until the work is actually compk'ted. 5. This CONTRACT will be binding upon the parties, their successors and assigns, 2 " .' :.', '~ . , :. ',,'.., . '.' '. . '. , " I' ~ . .' t"", ." " . ,'. .' ". ,.., , ' . ' : I : ." " exhibit B "::' \ '~. ~ (., ,'", '.;::;' ",:, '",'';.:, ,~>, 'f," ',:,\ '.':::'\:\ ~ ,~~~ .~~:~ ~_~:^:f;j~.:,: ;',,:~\;i,,:i~,;~~~,~~~;:~;~;,,;,,:\:~ ,~:l,~, 'I:' ,~'::';,: :<..: .:;<:,~,' C:\ ~'. '.;::,\:.,.:Y:~~\ > ' ':':.~::'.~:,~ '.'<,~,' :.:/... -.,.'" .', .~ 0 '0 '" ", ", .r< '0 '" N'~' 01 r--.:'N .N W \," ,. U:' '" '" '" '0 " oo .r 0 <11 N ..,. """ ... 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'.. ., ._~ . r.;- ~ .-.: ~ '~I..~eI '-'..:..~ 0<.-<-" "'go.{' ;::c!3~ ~";r"'t: . I'!- < ~ ~ .. " 4' " . .-" " ") '. I. ,,-, .- 1~_1 .-.. c.. H, Wo. r.:. ') ,01 .4 'a ',' f) "n h ..~ .~ >. ., U" t",J -: ... .,01"- ,~ t.. i.) I... '. '.' .... :" '.'. ~J '. o u: u: ') ',.; 0 " :- C> 0 rr (7, .. () ::0 ... .., mo >- !) " .. '" ...J o. n-: ... ...J .. .., .< '" ;;: .... on. .e.a 1:1 ,~ ~:. '" ,,:.. Go 0 C. , .... N ,,'/ (U'lJ) (h .-1 ...... 1,:J "'-r<'/'O .;.r o I/,-r-I ~l ,.'-i., 'N,'V'l1 ! '" """' c.~ 04 ", ~ r., c o li') N rl ~l ',:. "" t::.l~,;'... I ......,..j , I 1. :, I: I I i '. ., .i '" t- o l- , I I i I 1 \ '~ .r-- ~ :\;t .-. , . "~,...,. \, . ?t,.' :.' ,,! , ~ ,.,; , ,~,. I\<;,:,:-/"~ '(','<1' '. '," < ~t)f;',:' i:;.~,~~;:~~;~:/~~{~ ~~~~.~;'r>:~~~;:-:,.:.:i IJ:,:~": ,:: :...:'~:. .: :><::'. '_ ~.. ~ ~ ,,\ .. .' .::';';,' ::", ,~ ~:.~ ,~~:',"::,- ;~: "\, "." " Sent by: REMER & ADLER, ATTNYS 717 730 7366; 05/05/99 7:53', J_~_ #268'Pa 3 ""'1"". ,_ ge VERIFICATION I, J. BRIAN WALTER, hereby verify that I am the Vice President of John F. Walrer Excavating, inc., and as such, I am authorized to verify the averments of the foregoing document lire true and correct to my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. (,5. 94904, relating to unsworn falsification 10 authorities. JOHt-.. F. WALTER EXCAVATING, INC. By: ~~A/~ , RIAN WALTER, VICE PRESIDENT Date: .s /5/ CJCj ~ '->. tt ,.," _. ," " ,- (',' " ~. , , . \~ ~ " :. I,;. .J ,-. ,", ~~ r I l. V, L : i ~\0 ... ~ :'. I: " " ~. ~' V' (j EBEI'EllL (LlL) ~109~'IIOLl Vd 'lllH dr/V:> !33~lS 13~~Vl\IlEE~ MVlIV S^3N~OilV 'O'd '~31aV 'Ii ~30V3~ '" rv .::::- A\ -,j' .~ ~ ~\ ;. has paid Walter $138.670.50. leaving a principal balance due of $32.788.27. Despite repeatcd demands by Waltcr. Fox has fail cd and rcfused to pay thc principal balance due, Under thc terms of the contract. Fox was to pay Waltcr on or bcfore 30 days after reccipt of Walter's invoices. Fox has not givcn Waltcr any noticc of any allcgcd dcficicncies in the performance by Waltcr on the Project. More tiJan thiny days havc passcd sincc Walter last submitted its final invoices for paymcnt for work performcd on thc Projcct This action was commenccd by tilC filing ofa complaint by Walter on or about May 7.1999. The Plaimiff's complaint contains two counts: one for Breach of Contract and onc for Unjust Enrichmcnt. Count I of Walter's complaint entitled "Breach of Contract" contains avermcnts undcr tile Pennsylvania C011lractor and Subcontractor Payment Act. 73 P.S. s501 C1 Sl:Q.. under which Waltcr is entitled to statutory interest. pcnaltics and reasonable attorneys' fees for failurc to pay Waltcr in accordance witil tile contract. Thc averments rclating to the Pennsylvania Contractor and Subc011lractor Payment Act contained in Count I of tile complaint do not consti<utc an additional cause of action but arc mercly allcgations through which Walter is entitled to recover additional damages duc to Fox's brcach of tilC contract Fox has assened Preliminary Objectioi1s in thc naturc of a demurrcr to Waltcr's brcach of contract claim. Fox has also asscncd a dcmurrcr to Waltcr's allcgations undcr thc Comractor and Subcontractor Paymcnl Act as well as a prcliminary objection claiming a violation of Pa. R.C.p. 1020(d)(I). This bricf is rcspectfully submittcd in oppositioJJ to Fox's preliminary objcctioJJs. ~2- 1991). On prcliminary objcctions in thc nature of a dcmurrcr. all doubts must be rcsolved in favor of the non-moving pany and the dcmurrcr should be sustaincd only in cases that arc clear and frec from doubt. lmleoellr/ellceJlhw Cro.n' v Pelln~I'/"allia IIlS/lmnCi?-.D.eollrtlllel1t, Pa. Comwlth. , . . . - - 670 A.2d 221. reargumcm denied. affirmcd. 546 I'a. 627. 677 A.2d 1117 (I'a. COlllwlth, 1996). Finally, whcn faced with preliminary objections in the nature of a demurrer. thc trial court must accept as true all well pleaded facts comained in tile plaimiff's complaim along witil any reasonable inferences which may bc drawn thcrefrom. WI'l>b MIII1I([{I/'lUrillg CO. I' Sinoff, 449 Pa, Super. 534.674 A.2d 723 (I'a. Super, 1996), A. BECAllSE THE PLAINTIFF EXPLICITLY AND BY INFERENCE HAS fl-EADED SUFFICIENT FACTS SHOWING AN AGREEMElSI BETWEEN THE PARTIES, PERFORl\L\NC:E BY THE PLAINTIFF AND A FAIUJRE TO PAY ON THE PART OF THE DEFENDANT, THE PLAINTIFF HAS SIJFFICIE~LY PLEADED A CAliSE OF ACTION EO.R.B.REACH OF COJl.'TRACT AND, AS SllCH, THE DEFENDANTS' DEI\1lJRREI~ SHOlJl.D BE DISMISSED. Under Pcnnsylvania law. a causc of action fur brcach of contract is cstablished by plcading tile cxistcnce of a contract. including its essential terms. breach of a duty imposcd by the COlllract and resultant damages. GeJJe111.L)fa!.e..A111iwIiJ:>-.:LJ",Q/I'nlllll Cable & Wire Co.. 27 Pa. Comwlth. 385. 265 A.ld 1347 (I'a. Comwllh. 1976). In the instant <'ase. the Plaintiff has pleaded. and is prcparcd to prove, all the neces:;ary clements of its cause of action in breach of contract. First. at paragraph 3 of the complaim. the Plaintiff alleges that there was a contract between the parties, The Plaimiff has plead cd the essential terms of the contract between the parties. i.e. the scope of work agreed to be perfl1nned by the Plaintiff and lhe payment \I) he lIlade by the Dcfcndallls in exchange for thc PlaintiWs perfl1rm:mce. The Plaintilf has further pleaded that it performed its ohligations under the l'ontracl. --1. B. BECAllSE THR PLAINTIFF HAS PLEADED THE REQlJISITE FACTS 11NDER ITS BREACH OF CONTRACT CAllSE OF ACTION IIY WIIICH IT IS ENTITLED TO RECOVER INTEREST, PENALTIES AND REiASONAllLE ATTORNRYS' FEES I'IJRSUANT TO TilE PElSNSY_,YA!S'IA CONTRACTOR AND SUBCONTRACTOR PAYMENT ACT, TIm DEFENDANTS' DRMlJRRER UNDER WHICH IT SEEKS THE DISMISSAl, OF STATUTORY DAMAGES MUST liE DISMISSED. Under Count I of its complaint, the Plaintiff has made factual averments which if proven at trial would entitle it to recover interest. penalties. and reasonable attorneys' fees under the Pennsylvania Contractor and Subcontractor Payment Act. 73 P.S. ~501 e.t sell. (hereinafter the "Act"). Under the Act. at Section 505. the owner of a construction project is required to pay the contractor strictly in accordance with ule terms of ule construction contract. Under the contract at issue in u1is complaint, the Defendants were required to pay the Plaintiff within 30 days of receiving the Plaintiff's invoices. Under the Act. if the owner is to withhold any monies from the contractor, it must provide ule contractor with a notice of any and all deficiencies within 7 days of receipt of the invoice from ule contractor. If no such notice is provided. the owner is required to pay the contractor in full for its invoices within 30 days of receipt of the invoices, Under Section 512. if litigation is commenced to recover payment due under the Act. defendants are further liable for a penalty equal to one percent (1 %) llf the amount wrongfully withheld and award reasonable attorneys' fees together with expenses. Here. the Plaintiff has alleged sufficient facts to cntitle it to recover the statutory interest. penalties and reasonable anorneys' fees as authorized by the Act. Specitically, ule Plaintiff has alleged that it has performed its work and submined its invoices for thc work to the Defendants. It is further :illcged that the invoices arc more than 30 days old and that no notice of any deficiencies has been received from the Defendams. Thus. the requisile facts to show entitlement under the Act have bl'en pkaded and. as such. the Defendants' demurrer should be dismissed. .Cl- , ' ' , . " . ~ '." ." ,.' ;,', .' " " ,: ,) /."., \ '.' . '. ~ ,.1.:"", ;,.}.' " 0( .. .,'.,' . " ) ' . ' . . . ~. ',' , . .', .' . . =ply with the pa)lmem tenlJ.U)f this akl. the arbitrator or court shall award. in addition to all other damages due, a penalty equal to 1 % pcr momh of the amount that was wrongfully withheld. An amount shall not bc dcemed to have been wrongfully withhcld to thc cxtent it bcars a rcasonable relation to thc value of any claim hcld in good faith by thc owner. contractor or subcontractor against whom thc contractor or subcontractor is sccking to rccovcr paymcnt. (b) Award of attorneys' fcc and expcnscs. - Notwithstanding any agreemcntto thc contrary. thc substantially prcvailing pany in any proceeding to recover any payment undcr this act shall bc awarded a rcasonable anorney fce in an amount to be determined by thc court or arbitrator. together with expenses." (cmphasis added) Because thc Plaimiff's pleading of facts emitling the Plaintiff to additional damages undcr the Act. damagcs which arisc out of the Defendants' breach of the payment tenns under the contract. does not constitute a scparate cause of action, the Defcndants' preliminary objection should be dismissed. IV. CONCLUSION Based on the authority sct forth above. the Defcndams' preliminary objections should be dismissed. Respectfully submined. Date: October 8. 1999 Th~odore A. Adler Pa. LD. No. 16267 Thomas O. Williams I'a. LD. No. 67987 2331 Market Street Camp Hill. I'A 170l1-4M2 (717) 763-1383 Attorneys 1()r Plaimiff -9- , .'. ".,::'.' ."' I:::. . .:,". , <' , .:. ", " ., ' ' ',j ,.-' J" ",.." ',.: ',.,. ~ :)' .': '. CERTIFICATE OF SEImcE AND NOW. this S" day of October. 1999. I hereby verify that I have caused a true and correct copy of the PLAINTIFF'S BRIEF IN OPPOSITION TO DEFENDANTS' PRELIMINARY OBJECTIONS to be placed in the U ,So mail. first class. postage prepaid and addressed as follows: Mark D, Schwartz. Esquire Irwin McKnight & Hughes West Pomfret Professional Building 60 West Pomfret Street Carlisle, PA 17013 '.' ":'" :,' , , , J {',' '~',' I' .,' ':' ",' " ;,'.' . :'.: " , , " '. ,', ~. '.1 ' " , , . CORRECTION i Previous Image Refilmed to Correct Possible Error , . . .' ',,' ~ ~' .: " " . , . " ,'. . : .' :-. .' . ',; , :, , . ~'. . :.. ' ' " , " , '. '.: . , ' . . ' -... ARGl.':\IENT A preliminary objection in the nature ofa demurrer is subject to Pa,R.C.P. No. I02~(aH4) which provides tor the "legal insufticieney of a pleading" and allows the Coun to dismiss the claim bccause of a 1:lilurc to state a claim upon which relic!' can be grallled, The Supreme Court of Pennsylvania has explaincd that the standard of review ftlr a preliminary objection ill the nature of a demurrer is to assume as true the avemlents of the complaint, except as to the extent that they constitute conclusions of law. Cafaz7.0 S'. Central l\ledical Health Sen'iccs. 542 Pa. 526, 668 A.2d 521 (1':1. 1995). The Coun noted that it was not compelled to accept the complaint's legal conclusions, only the recitation of the facts, It!. at 523. The Court is to sustain the preliminary objection if the complainant is not entitled to relief as a matter of law even if the complaint's assenions of fact arc true. In the case at bar. Plaintiff is not entitled to relicfupon his claim, even ifall of his assertions offact arc true. Plaintiff's claim is based on a breach ofcllntracl. but Plaintiff's elaim fails to aver ali of the essential facts in the contract. Consequently, Plaintiffs claim does not state a cause of action upon which relief can be granted because Plaintiff ignores that part of the contract which provides for the payment process. of which pan of the contract Defendant has not breached. A. Plaintifrs Complaint Docs Not State A C:mse Of Action For Brcach Of Contract Upon Whjch Relicf :\las' Be Grantcd BCc:lllsc The Claim 1l!f1orcs Essential Terms Of The Contract. Plaintiff claims that Defendant is in breach of the contract because Dc!cndant has not paid invoices that arc allegedly past due. lJpl1l1 examining tbe tenllS of the contract and the , ., ~omplaint. the Plaintifl's complaint must be dismissed be~ause it f:lils 10 statc a causc Ill' a<':lilln upon which relief may be granted. First. Plaintiff asserts that Defendant is in breach of the contract because "Defendants have failed and retused to pay the principal balance due." (Complaint Paragraph S). In ordcr f()r the Defendant to be in breach. the work must have been completed and then Dcfcndant must hm'c refused to pay the balance due. Nowhere in PJaimiffs complain! docs the Plain!itfallcgc that the work was completed. Completion of the work is an essential element of the breach of contra~t because Defendant was to pay Plaintiff only afier the Township had acceptcd the work and rcleascd the completion bond, Such acceptance and rclease by the Township would only occur aftcr completion of the work. Thcrefore, Plaintiffs complaint is ddicient in its pleading because it fails to allegc or aver that the work was completed. [I' the Court were to accept as true that Defendant has not paid Plaintiff for the invoices that have been received. there is no cause of action statcd becausc the complaint has not averrcd that the work has been completed. Second, Plaintiff's complaint should be dismissed for not stating a cause of action upon which relief may be granted because Plaintiffs complaint fails to allege or aver that thc Township has accepted Plaintiffs work and that the Township has released the money held under a completion bond. Paragraph Two of the contract specifically statcs that Dcfendant will pay Plaintiff"upon acccptance by West Pennsboro Township and upon release of the moncy held by West Pennsboro Township under a completion bond." (Complaint Exhibit "A") Plaintiff cannot recover under a claim of breach of the cllntract without asscrting that the Township has ac(;epted tbe construction and released the completion bond money. Plaintifrs 4 complaint fails to allcgc 01' aver that thc Township has acccptcd complction and Ihat the Township has released the completion bond money, Even accepting as true that Defend.mt has not paid all of Plaintiff's outstanding invoiccs, Plaintiff is not entitled to relief because Plaintiff has ignored thc tenns ofthc conlract which state that Defendant docs not hal'e to pay li.)r work performed until the Township has accepted the completion of the conslluction and has released the bond completion money. 7 B. Defendant's Counterclaim Docs Not Slate A Cause Of Action Upon Which Relief i\Iav Be Granted Because The Contractor And Suhcontractor Pal'ment Act. Upon Which Plaintiff Relics. Is Not ApPlicahle As Averred To The Contract Brtween Plaintiff And Defendant. o ~y -V d:-\\..() PlaintitTrelies on Section 505 of the Contractor and Subcontractor Payment Act. 73 1'.5. La!' .., '1~,(, l ~ 505, which states the owner's payment obligations. Under S 505. "[T]he owner shall pay thc \~:L ucontractor strictly in accordance with tenns of the construction contract." According to "",'$\1\ Paragraph Two of the contract, payment was "to be made upon acceptance by Wcst P,~nnsboro Township and upon release of the money held by West Pennsboro Township under a c,'mpletion bond." In its complaint. Plaintifffaiis to allege 01' aver that West Pennsboro Township had accepted the construction ponion that represented the unpaid bill. Funher, Plaintiff tailed to allege or al'er that West Pennsboro Township released any of the completion bond money. which represents any unpaid ponion of Defendant's bill owed to Plaintiff. Therclore, el'en if Defendant has not paid the outstanding balance due to Plaintiff. Defendant may not be in breacb of contract because West Pennsboro Township has not accepted that ponion ofthc constl1lction or released thc completion bond money for that pO!1jon of the construction. BCL'ause Plaintifffailed to ;Jllege or al'er these tacts in its compbint. Plaintifj's complaint does not stale a cause of action 5 111 th~ alt~rnatiw. th~ Dd~lldants' r-:qu~st that this HOllorahl-: Cl1urtr-:quir-: th-: Plailltiff to s-:parate the multiple causcs of actinll ill Coullt I of the Complaint into separatc counts. Respcctfully submitted. Date: October 1. 1999 IRWIN McKNIGHT & HUGHES (/' .) l;vf1~ . 'ames D. Hughes, Esquirc Supreme Court ID # 5888-1 Mark D. Schwartz. Esquirc Supreme Court ID;; 70216 60 West Pomtret Street Carlisle. Pennsyl\'ania 170 I" (717) 2-19-2353 A nomey for Defendants IlU,n-nl.l.tO\l^lrme( 7 ,'::,;i ':,' :. . ,':, .. ~", '." : ~.' .",'i.:-'-' "'::"~""";:'~;'::';::"';~\~_''':'::;;',,~,;;:/ "~.~:~;,::::,'..,'~,;~,;: :;,;.', :',:,\:.:;:<:;:::,,:. \ ::..: ,: :~. ';:,:"~:','" . ',::' .' \ i,': ., . i I I I I ! JOHN F, WALTER EXCAVATING, INC., IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA PlaintifT vs. NO. 99-2755 CIVIL HARRY H. FOX, JR, and JOHN H. FOX, tia FOX AND FOX, a Partnership, CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Theodore A. Adler. Esquire, verify that on July 26, 1999, I caused dle Notice which is attached hereto as Exhibit A to be placed in the United States mail, first class, postage prepaid and addressed to Defendants c/o their attorney, Mark D. Schwartz, 60 West Pomfret Street, Carlisle, Pennsylvania 17013. A copy of the certificate of mailing is attached hereto as Exhibit B. Respectfully submitted. REAGER & A THE OR = A. ADLER. ESQUIRE Attorney 1.0. No. 16267 2331 Market Street Camp Hill, PA 17011-4M2 (717) 763.1383 Attorneys for Plaintiff Exhibit A : :~.. ,:' L .. I' I I I I I I II I' JOHN F. WALTER EXCAVATING, INC" IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff vs. NO. 99-3755 CIVIL HARRY H. FOX, ,JR. and JOHN n. FOX, CIVIL ACTION - LAW t/u FOX AND FOX, u Partncrship, Dcfcndants : JURY TRIAL DEMANDED ~MPORTANT NOTICE TO: Harry H. Fox, Jr. and John H. Fox, lla Fox and Fox, a Parlncrship clo thcir attorncy, Mark Schw:lrtz. Esquire DATE OF NOTICE: July 26. 1999 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITIEN APPEARANCE PERSONALLY OR BY A TIORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU, UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MA Y BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LA WYER AT ONCE. IF YOU DO NOT IIA VE A LAWYER, OR CANNOT AFFORD ONE, GO TO OR TELEPIIONE TilE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL IIELI'. Cumbcrland County Bar Association 2 Liberty A venue Carlisle, PA 17013 (717) 249-3166 I , REAGER&A~ THEO ORE A. ADLER, ESQUIRE Attorncy LD. No, 16267 2331 Market Street Camp lIill. PA 17011-4642 (7 I 7) 763-1383 Allorneys for Plaintiff i. I- I' exhibit B . :".,i:.... "':,1: . <.'.::';,:: . ',' ';: :, .~, ~~,\,,:.>:, :~}:,i<:.:, :',.\~~'::~' ;~:;:.~,:~~~~~~:".i"\",\';',,;::::,:,';~;'<:;,/::'/(',: ~,;':..,:<' ,'::'.:, ; ::::. .:::.:' ,: :',::; ::'" ":', :.i:,', .. '1. :'I~ - g~! o ..: o ". I' . /' 4':::. , / -. ~~''''' I " f / S:. I ......',;. -i' 170/1 !J .~;:~', ,'- '\,c.\ 'j' c I '. 0 . ,'- 0 1) .s . " '----<.J Jv!{l(K . Ch"UClfl'E, F..)~'/lrf--. _.j IrWin mC/Cll I(llIt ~ Hujllc'S ~E9 -120 I,v ( <,t Pcmfr cJ <) trr c. t CarllSlr (~.\ 170/3 PS Form 38'7, Mar. '889 R.c.r....d From: Rw,su; Adla p, t 2331 HC1n::ct S/lfc:.T (Ollli] !-hll , PA f::' ,ps 'nd of on' P T I ~ICATE OF MAILING MAY BE USED fOR DOMESnC AND INTERNATIONAL MAil. DOES NO PROVIDE FOR INSURANCE-POSTMASTER On. pillc, of ordin.ry men .ddruud 10: 1= n := 'f _~"Y' 52N-..J :0 z~~:a~ -l '_1- V) 18 r- ~ ." " :r '" GPO : 1993 0 - 151-o~ t',. ~. . i'I:,',1 (i;'I'. I \II; U'.ll:''', c: .ISE \' OR Al{l..U~IENT _~....., .._ .......R_._. __ _..__.,.. .._._.._. 1.~luSl i>~ tYl'l\\rill"U ;'IHl "1i>l\Iitl~u ill c11l1'1it'atc) TO TilE PROTIlONOTARY/OF CUWIERLAND COUNTY: Please li,!the wilhinlllaller for the next: o Pre.Trial Argulllent Court ~ Argument Court I I , I I i -----------------.--.-------. -. ..- -- ---- --..- ... - --- '"-... -"- ------ ---- -------------- --- ._-- CAPTION OF CASE (entire caplion must be slaled in full) John F. Walter Excavating, Inc. (I'lain tif!) vs. Harry H. Fox, Jr. and John H, Fox, tla Fox and Fox, a Partnership (Defendant) vs. No. 275L., Civil - Law 19..2L 1. State mailer to br. "gued (1. c., plaintifrs motiun for new trial. defendant's demurrer to complaint. etc.): Defendants' Preliminary Objections 2. Identify counsel who will argue ca,,: (a) for plaintiff: Theodore A. Adler (b) for defendant: Mark Schwartz 3. I will notify all parties in wrilih!; within lwo da/s tha1 1hib ca\c hat. been listed for argument._ tdu/ (All<llneY~ 1'1-.1il1tlff ) D.ted: tilli l'l(j " L , ' " ~ , ' " ' " , , 1;' - " ~ 1 . '.' " ' ! t, ; , ' , , . , ' 4 . . . . ~ .:' .<:. ..', ') I", -'/:,,:: .::: ','.r:<" . \",:, .,: t," ::. ..J~/:': ,".< ,,<(,,;),:~;':I. :""~':1j:"/:;: ;'{"I.':'~'. ',,-:' ~:~~.,~,.' "'::;: ,:':":1\.', ,..:', :<\..,.. ,<::: >.< : .(:::" i,., '~",~' . JOliN F. WALTER EXCA VATINC;, lNC., COtJHT OF COMMON PLEAS OF ClIMHERLAND COlJNTY, PENNSYLVANIA PLAINTIFF \'. NO. CIVIL 1999 - .;)7SS IIARRY II. FOX, ,JR., allll JOliN II. FOX, I/al FOX AND FOX, 11 partnership, CIVIL ACTION - LAW DEFENDANTS PRELlM!NARY OB.IECTIONS OF THE DEFENDANTS TO TilE PLAINTIFF'S COMPLAINT AND NOW, this 26th day of July, 1999, come the Defendants, Harry H. Fox, Jr" and John H. Fox, tla! Fox and Fox, a partnership. by their attorneys. Irwin, McKnight & Hughes and make the f(lllowing Preliminary Objections tn Plainlil1's Complailll. and in support thereof aver the f()lIowing: Miminarv Objeclion in the Nature of a Demurrer Pursuant to Pa. R.C.p. 1028(a)(11: Breach of Contract I. Plaintif1~ in its Complaint fikd on or ahout May 7, 1999, seeks, ;,,/('/' alia, damages for breach of a contract made betwecn thc parties in S,'ptember of 1995. A copy of said contract is attached herctn as Exhibit "A" and is incorporated herein by rc1i:.renee thereto. 2. Plaintiff c1ail'lS lhalthe Defendants haw breached said ;;onlmct by t(tiling and rc1using to pay the "halancl'" due to the PlaintifC 3. Th,' (\)mplai!ll f;lils In al cgc or .1'. n '.Il\' f;\Cl.1. wl,ich indie:lte thai the Plainliff has ci)mplcted the \\,<\rk a~quir,'J under thc \'<'llIra,'1. WHEREFORE, Defendants, Hany H, Fox, Jr., and John H, Fox, tJal Fox and Fox, a partnership, respectfully reyuest this Honorable Court to grant its Preliminary Objections in the nature of a demulTer and dismiss the e1aim of breach of contract in Plaintim' Complaint against Defendants, Hany H. Fox, Jr., and John H, Fox, tJal Fox and Fox, a partnership lor failure to state a cause of action upon which relief may be granted. Preliminary Objection in the Nature of a Demmrer Pursuant to Pa. R.C.P. 1028(a)(4). Statutory Remedy Pursuant to 73 P.S. 505 /'1 ,W!II~ II. Plaintiff has additionally demanded damages under the Contractor and Subcontractor Payment Act (73 P.S. 501 ef scq,) (hereinafter "Act"). 12. The Act requires that payment be made 10 the cuntractor "slIietly in accordance with tenns of the construction contract". (73 P,S. 505(a)). 13. The constructiun agreement required payment pursuant to a bid and monies were to be released only upon acceptance of the Plaintitrs wurk by the Township and the release of monies held under a completion bond as alleged in paragraph six (6) above. 14. In light of the fact that the construction agreement contained tenns governing payment and the tim(~ ,)1' payment, the paymcnt ohligati,)J1s undcr the Act arc not applicable. (73 P.S. 505 (h), (c)). 15. The Complaint taiI- to set j('11h any legally or tactually cognizable basis upon which the rclief sought undcr thc Act could he grantcd. -' , "' 'r ", t, _:. .' " ~ ',:, ..~ ' .".' . . " :. './~'.",""", " ::' ""':.",:: '.:: .:;;:,:", ",:' :.'::::' '::',:, ,', ,":,;.,-:::,:. ~", ~..:, ~:<;.:.~;~,:,' :~.~::':.~<.~'~,;~:::/>,",':::: ;:,/;::....:r: ':;":"::''::::''.:: :::':'::':_ ':<:: :'::,,~~'. '.:': ,'::,:. :~<', "i:.";;':;)w,.wJ...( t I I ! JOHN F. \\fALTER EXCAVATiNG, INC., : COURT OF COMMON PU:AS OF : CUM8ERLANI> COUNTY, PENNSYLVANIA PLAINTIFF v. NO. CIVIL 1999 HARRY H. FOX, JR., and JOliN H. FOX, tlal FOX AND .'OX, a partnership, CIVIL ACTION - LA \V DEFENI>ANTS CERTIFICATE OF SERVICE I, Mark D. Schwartz, Esquire, hereby certify that on this date a true and correct copy of the foregoing document was served upon the attorney for PlaintitT" by first-class United States Mail, postage prcpaid in Carlislc, Pcnnsylvania 17013, addrcssed as follows: Thcodorc A. Adler, Esquire Rcagcr & Adler, P.c. 2331 Market Strect Camp Hill, PA 17011-4642 ,~~'- Mark D. Schwartz Irwin, McKnight & Hughcs Attorncy ID # 70216 Attorncy /ilr Defendants 60 West POm/rCI Stred Carlisle,I'A 170D (717) 249-2353 Dale: July 26, 1999 " - '-:',' ~ .j" [ .': ""',~,, ,:: ~'\. ,~.:~ ~>', >>:~',:i "\'~_'\"~:' ,!~,~::,;',I '-':"~ :,;,.~:~~~,~',\.:, :~ '~~'~I \:' ,l! r"'~2.'~' " " d' t { ~".' :....__..__ '. . " .. " .' '; "j.":"\ ,\..,:-1 '. ~ . . ," >1,; >. ~ ,1,..'\," I I [' t'" I I '- ..... fr: r; ~: <. ( -. ) t , , , t ,,' 0 c.. I...'... " ( " (...... ~ :! I . .- ~ , I:. , .J .." C- . '.J , .' , , .' " " . '- "". . ' , , . , , ., . . _ ~ I', . . : . \ EXHIBIT "A" " .', ',': '.' . ^: -: " ) " " ',', .,. .','. ",' ) " 7177764%6 JOI-D'I F WHLTER EXC 974 POS ............... .~ CONTRACT AGREEMENT AND NOW, this _ day of September, 1995, this Contract Agreement is entered into by JOHN F, WALTER EXCAVATL."IG, INC., P. O. Box: 175, Newville, pennsylvnnia 1724'1, h~rein'ill~i' ciJl~d"thd CON1~crOR; AND FOX & FOX, A Partnership, of 60 S. Pin Oak Dove, Boiling Springs. Pennsylvania, 17007, hereinafter called the OWNER. 1, TIIE CONTRACTOR ilgrees to perfonn certain work on behillf of the owner as set forth in Exhibit "A" and attached hereto and made a part of this Agreement, which includes elCcavatinB and paving for the Cross Roads School Road Estates, Phase II. . " 'I. I ~ , " . .' . .., .' . ; '. . . ,'), > - " ., . lcuJ.VCd: 01 3190 U: I., ; II (I (u.ll.JlJl.I ... 71777G"51~6 JCHI F IJI~LTER EXC 2. TIlE OWNER agrees to pay the CONTRACTOR for the sum of $140,238.00 for said work, said payments to be made upon acceptance by West PeMsboro Township and upon release orthe money held by West pennsboro Township under a completion BDnd, 3, CONTRACfOR wiU be responsible to notify the West Pennsboro Township to make the necessary inspections of the work, so that payment may be released from the Township and the Bond reduced, 4, CONTRACTOR agrees to begin the work Oil September .;2~ , 1995 and to have the work fuUy completed by D,c h; ,1995 and agrees to pay a;f ?(.Q per diem chnrge to OWNER ifthe work has not been completed by . 1995 and until the work is actually completed. s. This CONTRACT will be binding upou the panics, their successors and assigns. 2 , . ' '. .. . , .' . ' ,J. -.) '. ,.'. . J, " iU.";V....,,n,l.J, ,,- ..I' ~..;.Il... 'oJ. I". JO-lH F ~JRL TER EXC ';'7.1 PO? I'IAY 03 '99 10: 19 717?7Go-I5GG WHEREFORE, thc parties hcrcby enter thcir hands and scals the date first sct forth nbove. WlTNESSETn: \,',1" ,.' CONTRACTOR: JOlIN F. WALTER EXCAVATING, me. .., " .'JL nY.J=--=~../~ ';;- (~jj~,~ -<,SEAL) / ~ ~..._..,,;,, OW!'<T.R: 1/.-7 ,1/ 4i~t (SEAL) . HARRY H. FOX, Jlt, l'~ ner /J()r\ J/ 50 (SEAL) JOHN 11.1<'OX, Partner 3 REAGER & ADLER, r.c. OY: THEODORE A. ADLER, ESQUIRE Attorney I.D. No. 1h267 2331 MarKet Slrl'Cl Camp Hill, I'A 17011 Telephone: (717) 7C,3.13U3 Allornc)'s for Illilintif(s JOHN F. WALTER EXCAVATING, INC., Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA VS. NO. 99-2755 CIVIL HARRY H. FOX, JR. and JOliN H. FOX, I/a FOX AND FOX, a Partnership, CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED PLAINTIFf'S ANSWER TO DEFENDANTS' PRELIMINARY OBJECTIONS 1. Admilled. 2. Admilled. 3. Denied. The complaint al!eges that Defendants failed to pay all of the invuices submitted as they became due. 4. Denied. To the extent the objection stated .11 paragraph 4 of Defendants' preliminary objections infers or implies that acceptanCl~ by the Township was a precondition to Defendants' paying Plaintiff the periodic invoices for payn1l'nt, said objection stales a conclusion of law which is denied. 5. itself. 6. ils('If. 7. Denied. The contract which is Exhibit A to the complaint and is in writing speaks for Denied. Thl' contract which is Exhibit A to tilt' complaint and is in writing Slll'aks for Dl)!ljpd. Aller n..l~on.lbll' in\l'...tig.ltion, PI.Jinliff is without infurllldlioll !'-uffici('lltlu (Ollll .l belief as to the tllllh of th" .lVt'lI11t'nh uf pal.lgl.lph 7 uf th., lJ"fl'nd,lIlt's pll'lilllin.ll)' obj,'ction,. S.lid J.\'(~rnWnls .Jri.\ tIWII'(OIP, den it,d. 8. Denied, After reasonable inV!'sligation, Plaintiff is wilhoul information sufficient to form a belief as to the truth of the averments of paragraph 8 of the Defendant's preliminary objections. Said averments are, therefore, denied, 9. Denied as a legal conclusion. 10. Denied as a legal conclusion, 11, Admitted. 12. Denied as a legal conclusion. 13. Denied as a legal conclusion. 14, Denied as a legal conclusion. 15. Denied as a legal conclusion, 16. Denied as a legal conclusion. 17. Denied as a legal conclusion. 18, Denied as a legal conclusion. There are not multiple causes of action pleaded. WHEREFORE, Plaintiff requests that this Honorable Court dismiss Defendants' preliminary objections and that Defendants be ordered to answer the Plaintiff's complaint. Respeclfully submitted, Date: August 17, 1999 , REAGER & ADLER, I' . I tv THEODO~E A. ADLER, ESQUIRE Attoflwy I.D. No. 16267 2331 MiI,ket Stred C.lI11p Hill, PA 17011-4(,42 (717) 763-1383 AlIOIl1"YS for Plaintiff <:!- C8tI'E9L (LILI ZI>9~'~~OLI Ifd 'lllH dV;lf:l 133U1S 13XUlfVllttZ MVlllf SA3NUOlllf ':l'd 'U31C\I 'II U3D\l3U ::0- f'1 !;; ~ t.: ~{~ N t!i- ,.)~ i''i ( )u.. ~-'" ~ 0~ Z" Cl.. n 9~ ,. ..... . /':~ - W~ ~.. I G:!'~I <..? '~ t!; :.:J " ~ ct ~ en en . JOI'IN F. WALTER EXCA VA TING, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW HARRY H. FOX, JR. and JOHN H. FOX, tla FOX AND FOX, a partnership, Defendants NO. 99-2755 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT BEFORE BAYLEY and OLER. JJ. ORDER OF COURT AND NOW, this23rd day of November, 1999, upon consideration of defendants' preliminary objections to plaintiffs complaint, and for the reasons stated in the accompanying opinion, the preliminary objections are denied. BY THE COURT, Theodore A. Adler, Esq. Thomas O. Williams, Esq. 233 I Market Street Camp Hill, PA 1701 I Attorneys for Plaintiff (') '1') .:) c; '-:) -" ~~ .' - , " ::; .:~ :..... " . : , :'] " . . ) - ..- " , .., '" '_J i ~:J !.. J ,. , :..., " :-~ . . . -" ;:..... f , ty c-i , C... .." , ::> -, ~ ,~ ~ , , , I i , I' if. ;, I': I' . ': .:,:" .,'.;' "', :', .,' :." ::; '.'.': ,,;.',~::, '::.;>:1/'; ,~:,~';!' (';~',.;,~:,:; ~(' .t:;,:'::,"', :.:,',: ~''<t:-;<.:;, <, '.:'. .,: ;:':,', 'c,.',.' .,'.... ,'::' ','" .James D. Hughes, Esq. Mark D. Schwartz, Esq. 60 West Pomlret Street Carlisle, P A 17013 Attorneys for Defendants :rc ~4,. rr>~~J. II J~3Iqc;, .6'~ JOHNF. WALTER EXCA VA TING, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LA W HARRY H. FOX, JR. and JOHN H. FOX, tla FOX AND FOX, a partnership, Defendants NO. 99-2755 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT BEFORE SA YLEY and OLER. 11. OPINION and ORDER OF COURT Oler, J., November ,1999. In this civil case, plaintiff has sued Defendants for breach of contract and unjust enrichment. The action arises out of an alleged undertaking by plaintiff whereby certain excavating and paving work was performed by plaintiff on a project owned by defendants. Plaintiff alleges that it has not been fully paid tor its work. For disposition at this timc arc prcliminary objcctions to plaintiff's complaint, based upon legal insufficicncy of thc plcadingl and lack of conformity to rule of court.2 Spccifically, defendants contend (a) that the absence of a breach 1 See Pa. R.C.p. 1028(3)(4). 2 See Pa. R.C.P. 1028(a)(2). . :. . ' "~.' , "', -. , ' ;' .' .,' . . . ~ . ," . '.' " , ' . . . ' . . , .,..'. . In ruling upon a preliminary objection in the nature of a demurrer, the court "must accept as true all well-pled allegations and material facts averred in the complaint as well as inferences reasonably deducible therefrom and any doubt should be resolved in favor of overruling the demurrer.,,23 "The question presented by a demurrer is whether, on the facts alleged, the law says with certainty that no recovery is possible. ,,24 In addition, "[ilt is well settled... that a demurrer cannot be a 'speaking demurrer' and cannot be used to supply a fact missing in the complaint." Johnston v. Lehman, 148 Pa. Commw. 98,102,609 A.2d 880, 882 (1992). In the present case, the terms of the alleged written agreement between the parties, and their alleged practice under the agreement whereby defendants paid plaintiff as invoices were submitted, suggest the existence of a factual issue as to the intended condition(s) precedent for payment by defendants. The complaint does not, however, show on its face and with certainty that no recovery on the part of plaintiff is possible due to the manifcst absence of a brcach by defendants. Furthermore, additional facts averred in Defendants' preliminary objections may not bl~ cmployed by the court to supplement the record for purposes of disposition of the matter. For these reasons, defendants' preliminary objections in the nature of a demurrer will be denied. 23 Tiedeman v. City of Philadelphia, 732 A.2d 696, 698 (1'3. Comm\V. 1999). 24 Feigley v. Department of Corrections. 731 A.2d 220, 222 n.5 (Pa. Comnl\V. 1999). 6 ... . agreement and proof thereof is demanded. By way offurther answer, Walter was to receive under said agreement $140,238.00 for completion of the work specified in the agreement. 4. The avcnnents offact contained in paragraph four (4) of the Complaint are admitted. 5. The avcnnents of fact contained in paragraph five (5) of the Complaint are admitted in part and denied in part. It is admitted that Walter submitted periodic invoices for the work perfonned. It is specifically denied that said invoices attached as Exhibit "8" to the Plaintiff's Complaint are an accurate reflection of the price agreed upon for the work and services rendered and proof thereof is demanded. 6. The avennents of fact contained in paragraph six (6) of the Complaint are admitted in part and denied in part. It is admitted that the invoices attached as Exhibit "B" to the Plaintiff's Complaint total $171,458.77. It is denied that said invoices attached as Exhibit "8" to the Plaintiff's Complaint are an accurate reflection of the price agreed upon for the work and services rendered and proof thereof is demanded. 7. The avennents of fact contained in paragraph seven (7) of the Complaint are admitted in part and denied in part. It is admitted that the Defendants have paid PlaintifTSI38,670.50. It is specifically denied that the principal balance due is $32,788.27 and proof thereof is demanded. 2 '. :,: ," ",'...', I; ",....: ,J .l, . ; " :\ ,'. ;~. .,-. ,'~:( ,l', ':,,".,,' -', ",;, '~..: :,;,) '~:('~~~~.~..~;~,~ ~.: <.>~ : :'~:~ :'~' .:,\ :'.': '.".' '.- ~":t 1:-:, ,'"~I :',: : ;I:',!,':>',~.~': ,.,~ ";' '<.: ,';. ": >.', ........ . 8. The avennents offact contained in paragraph eight (8) of the Complaint are specifically denied. By way of further answer, the parties have subsequent to the original contract entered into a mutual agreement for payment of monies owed by Defendants for work perfonned by the Plaintiffs. 9. The aveffi1ents of contained in paragraph nine (9) of the Complaint are conclusions of law to which no response is required. To the extent that a response may be required, said avennents are specifically denied. By way of further answer, Plaintiff Walter is in breach of contract by its failure to complete the work required under the contract. 10. The avennents offact contained in paragraph ten (\ 0) of the Complaint arc conclusions oflaw to which no response is required. To the extent that a response is required, it is denied that this agreement is subject to the Contractor and Subcontractor Payment Act (73 P.S. 501 et seq.) and proof is demanded. II. The avemlents of fact contained in paragraph cleven (\ I) of the Complaint arc denied. By way of further answer, under the tenns oflhe contract at paragraph two (2), Defendants were to pay Plaintiff upon acceptance and release of monies hcld by Wesl Pennsboro Township under a completion bond. 3 ... 12. The avennents of fact contained in paragraph twelve (12) of the Complaint are admitted. By way of further answer, there was no need to givc Plaintiff Walter notice of alleged deficiencies under the partics' agreement. 13. The avennents of fact contained in paragraph thirteen (13) of the Complaint are specifically denied and proof thereof is demanded. 14. The avennents contained in paragraph fourteen (14) of the Complaint are admitted. 15. The avennents contained in paragraph fifteen (15) of the Complaint are conclusions of Jaw to which no response is required. In the event that a response is required, the avennents are specifically denied and proof is demanded. 16. The avennents contained in paragraph sixteen (16) of the Complaint are conclusions of law to which no response is required. In the event that a response is required, the avennents are specifically denied and proof is demanded. WHEREFORE, the Defendants. Harry H. Fox, Jr. and John H. Fox, tla Fox and Fox, respectfully request this Honorable Court to entcr judgment in its favor and against the Plaintiffs and dismiss Plaintiff's Complaint. 4 ,~'. :~':'~')~~'[;.:/.' ,",~. ',;"\'::::,::",:',<:::>,,,:, ,~"'::::':~'i:::~:',\)/,t,:~'~,>:::::'..:::,:"'~' ",':~:'\::." ,,",:::':,',"':" ',< '" . ....... 22. The avennents contained in paragraph twenty-two (22) of the Complaint are conclusions of law to which no response is required. To the extent that a response may be required, said averments are specifically denied. 23. The avennents contained in paragraph twenty-three (23) of the Complaint are conclusions oflaw to which no response is required. To the extent that a response may be required, said averments are specifically denied. WHEREFORE, the Defendants, Harry H. Fox, Jr. and John H. Fox, tla Fox and Fox, respectfully request this Honorable Court to enter judgment in its favor and against the Plaintiffs and dismiss Plaintiff's Complaint. NEW MA TTER By way of further defense and response, the Defendants aver the following new matter: 24. All of the affirmative avemlents contained in paragraphs one (I) through twenty-three (23) hereinabove are incorporated herein by rcfcrcnce thereto. 25. Thc partics agrecmcnt rcquircd Plaintiff to furnish all matcrialto do and pcrfonn thc work includcd in thc scopc of the agrccmcnt. A truc and correct copy of said agrccmcnt dated Scptcmbcr 1995 is attached as Exhibit "A" and is incorporated hcrcin by reference thercto. 6 ," 26. The scope of the work required under the agreement was for excavating and paving work for the Crossroads School Road Estates, Phase II. 27. The agreement required that Plaintiff complete the project by December 15, 1995. 28. The Plaintiff did not complete the excavating and paving work required under the agreement for the Crossroads School Road Estates, Phase II by December 15, 1995, and has yet to complete said work. 29. The agreement requires Plaintiff to pay a $500.00 pel' diem charge to Defendant if the work was not completed by the end of 1995. 30. Under the contract, the Defendants have a duty to pay for work perfonned by Plaintiff on the condition that the work is accepted by West Pennsboro Township and the Township has released monies being held under a completion bond. 31. The Defendants have paid Plaintiffs S 138,670.50 which includes payments made pursuant to release of bond monies by the West Pennsboro Township a~ required under the contract and monies paid lor additional rock excavation for laying of electrical lines which was agrel:d to by the parties. 7 '. ' . .. ',,' :, "'. .' , . :,', ' .' .:. ' ..'. . :' .':." ',- . : ';': .' .'. ",' 32. It is the Plaintiffs duty under the contact at paragraph four (4) to notify the township to make the necessary inspections so that payment may be released. 33. West Pennsboro Township still has control of monies held under the completion bond and has not released any additional monies from the bond which would require additional payments to the Plaintiff. 34. In the alternative, the parties reached an agreement (hereinafter "settlement") regarding payment of the Plaintiff's outstanding invoices for work performed by Plaintiff. Attached as Exhibit "B" and incorporated herein by reference thereto are two letters exchanged betlVeen the parties' counsel outlining the settlement agreement and its terms. 35. Pursuant to the settlement, Defendants agreed to pay to the Plaintiff a sum of $35,348.36 plus $5,000.00 in interest to pay the outstanding debt owed by Defendants to Plaintiff (See Exhibit "B"). 36. By check dated May 27, 1998, Defendants made a payment of $12,500.00 tOIVard the outstanding agreed upon balance oIVed of $40,348.36 which reduced the outstanding debt to $27,848.36. Attached as Exhibit "e" and incorporated herein by reference thereto. 8 37. By check dated August 6, 1998, Defendants made a payment of $13,000.00 toward the then outstanding balance of 27,848.36 which rcduced the outstanding debt to $14,848.36. The Plaintiff acknowledged receipt of said payment by letter from its counscl dated Septembcr I, 1998. Attached as Exhibit "D" and incorporated herein by reference thereto are said letters. 38. Prior to making the final payment under the settlement, it was discovered by Defendants that the Plaintiff had not completed the work as contemplated under the contract. The Defendants notified the Plaintiff of this situation by letter dated October 15, 1998. Attached as Exhibit "E" and incorporated hereby by reference thereto. 39. The Defendants had originally agrced to the settlement upon represcntation by Plaintiff that all work contemplated under the original contract had been completed. 40. Aftcr discovery that all work had not bcen performed, the Dcfendants rcquired that Plaintiffpcrform its obligations under thc contract before final payment would be made. 41. The Plaintiff did not complete the remainder ofthc requircd work under the contract and the Ddendants havc thercfore not made final paymcnt under the scttlement agrcement. WHEREFORE, the Defendants, Harry H. Fox, Jr. and John H. Fox, (/a Fox and Fox, respectfully request that this Honorable Court enler judgment in favor of the Defendants and 9 against thc Plaintitfand dismiss the eomplaint ofthc Plaintiff with the costs of this action award cd to the Dcfendants. COUNTERCLAIM Defendants further aver by way of dcfense (set-oft) and as affinnative claims, thc following counterclaim: 42. All of the Defendants' responses and avennents in paragraphs one (l) through thirty-three (41) hereinabove are incorporated herein by reference thereto. 43. The Plaintiff was required under the contract at paragraph four (4) to fully completc the work proposed under the contract by December 15, 1995. 44. The Plaintiff did not complcte thc work contcmplated under the agrcemcnt by December 15, 1995, and has refused to complete said work. 45. The Plaintiff excavatcd and laid stonc thc cntirc length of the road to the end of the phasc Illinc. 10 '",' .". " . - \ " "".. ' '. ". " ',.J . " ,.' '" " . I . .. 46. The Plaintiff then paved only a pOltion of the cntire length of thr.l road leaving approximately three-hundrcd (300) feet unpaved. 47. The Plaintiff has not placed a final top-coat on the paved portion of the road and has failed to complete paving on the remaining three-hundred (300) feet of road to the end of the phase II line. 48. The Plaintiff has breached the aforementioned contract between the parties in that it has failed to complete the work contemplated by the agreement by December 15, 1995. 49. The agrcement rcquires Plaintiff to pay a $500.00 per diem charge to Defendant if the work was not completed by the end of 1995. 50. As of the date of this pleading, one thousand four hundred sixty-eight 1468 (days) have passed since January I, 1996, subjecting the Plaintiff to charges totaling $734,000 for its failure to complete the work contemplated under thc agreement. II ," . , '" " ',', ".. ' . * -. .1, . " "'-., ." " .': ..., '". /",:' , I' ,'. ," 51. The Plaintiff will continue to accrue additional charges in the amount of $500.00 per diem for each day the project remains uncompleted. 52. The Plaintiff has not paid any of the $734,000 "late charge" to the Defendants for its failure to complete the project contemplated by the agreement. 53. The Plaintiff has breached the aforementioned contract between the parties in that it has: a. failed to complete the work contemplated by the agreement by December 15,1995. b. failed to pay the Defendant the sum of $500.00 per diem for its failure to complete the project by December 15, 1995. 54. As a result of said breach, Defendants has suffered damages as aforesaid and will be required to hire another contractor to complete the work contemplated under the agreement which will result in additional costs, expcnses and damagcs to the Defendant. 12 WHEREFORE, the Defendants, Harry H. Fox, Jr. and John H. Fox, (/a Fox and Fox, request this Honorable eourt to enter judgment in its favor and against the Plaintiff in the amount in excess of $25,000 said amount being the jurisdictional limit for mandatory arbitration. cKNIGHT & HUGHES t(~~ By: Mark D. Schwartz, Esquire Allomey I.D. No. 70216 60 West PomtTet Street Carlisle, Pennsylvania 17013 717-249-2353 Counsel for Defendants, Harry H. Fox, Jr. and John H. Fox, (/a Fox and Fox Date: January 7, 2000 13 . " ' ,',..,. " , " ':, , '" '. '. '.' ' " " ~ [ , ", , ~ , " ' ...-..... .. .. .. ~, . . , 71777645GS J( F WALTER EXC . I'IAY 03 . ~~ 11:1: 11:l 974 P85 .. .- CONTRACT AGREEMENT AND NOW. this _ day of September, 1995, this Contract Agreement is entered into by JOHN F. WALTEREXCAVATING,lNC., P. O. Box 175, Newville, Pennsylvrmia " ". . . .' ..-. ..... . ..' .'; 17241; hereiniuter ei11led' thci CONTRACTOR; AND FOX & FOX, A P:u1:nership, of 60 S. Pin Oak Drive, Boiling Springs, Pennsylvania, 17007, hereinafter called the OWNEU. 1. TIlE CONTRACTOR agrees to perform certain work on behillf of the owner as set forth in Exhibit" A" and attached hereto and made a part of this Agreement, which includes excavnting and pavinB for the CrossRoads School Road Estates, Phase II. , , \ .' . . - , !', . ."', " . . y' .". . . . ." < .. - - . . -', -, " ';' " - . " . ,.. ' '. . 1 . . j . . . . EXHIBIT "C" , . -' " " ,". . . . . ''''. .... " ..' \ . :' '. " "", ~,. , . ,.' ,-' ':'; .' --: ':., ~ LAW' OF#ICES IRWIN McKNIGHT & HUGHES . " - . : '.' . . .',' ..' \ . ' ~,' ".",.: ." .' ; : '. '." ~ . . ',' ;' '. . ROGER 8. IRWIN MARCUS A McKNIGHT, //I JAMES D. HUGHES REeECCA R. HUGHES DANIEL W. DeARMENT WEST POMFRET PROFESSIONAL BUILDING 60 WEST POMFRET STREET CARLISLE, PENNSYLVANIA 17013-3222 (717) 249-2353 FAX (717) 249.6354 E.MAIL: IMHLAW@AOL.COM HAROLD S IRWIN (,9;5. '97;") HAROLD S. IRWIN, JR (f9S':.1!;1l6) IRWIN.IRWIN~ IRWIN (1956.19061 '''WiN, ""WiN&. Ma,Nii::;hf (Hla6"So~", June 10, 1998 VIA HAND DELIVERY ROGER M. MORGENTHAL, ESQUIRE FLOWER, MORGNETIL\L, FLOWER & LlNDSA Y 11 EAST HIGH STREET CARUSLE, PA 170n.J016 fiLE COPl RE: JOHN F. WALTER EXCA V ATlNGfLIBERTY ASSOCIATES Dear Roger: Thank you for your copy of the correspondence from West Pennsboro Township with respect to the above-referenced matter. Also, per our discussions. [ am enclosing my client's check in the amount of$[2.500.00 as a principle payment on account toward the outstanding balance due from Libeny Associates to your client for the work performed at Crossroad School Road Estates. Phase II. West Pennsboro Township. Based upon our previous correspondence, the remaining balance due would be calculated as follows: Outstanding principle amount due .................. 535,348.36 Interest charge ................................................... S5.000.00 Subtotal ...........................................................540,348.36 Less payment ................................................... SI2.500.00 Totaloutstanding .......................................... $27,848.36 In the event that you have any questions with regard to any of the above. please do not hesitate to give me a call. Very truly yours. JDII:c1c cc: lIarry II. Fox. Jr. '.'",',''- ",i', '. ""'.,:.,.,', .;",,':'::':",;,,,,.:,;~.j:':>i;'.'::";;',,,',;:;;,;;~''''". :.'.." ",.,-" :"',','",,, ".' '",,'. .',',' .' , ." I,"" (.,i,...;..,. 1~J,.!'t.t""...."-" ,I .,.", , " j,....,. , .\ "', \' \ \ " . " , " . , ." . ,. , _' , " 't, " .'- " .' " " \ ~ " \' ~, " ',_". ," . , .' ; ,; I"" . f .' , . , , ,", ,',' .": "";' ',' "" . , ,)' . -'. \ ' , ,,-I ,. IRWIN McKNIGHT & HUGHES . ' , LAW OFFicES ROGE.~ B IRWIN MARCUS A. McKNIGHT, 11/ JAMES D, HUGHES REBECCA R. HUGHES DANIEL W. Dt!ARMENT WEST POMFRET PROFESSIONAL BUILDING 60 WEsr POMFRET STREET CARUStE PENNSYLVANIA 17013.3222 (717) 249-2353 FAX (717) 249.6354 E_MAIL;IMHLAW@AOL.COM HAROLD S IRWIN (19~S.Hl;;) HAROLD S U~WJN, JR (195.4.!!j861 IRW/N, IRWIN &. IRWIN {1!l56.198I5J IRWIN./RWIN &. McKNIGHT (1986.19941 I' I i I \ August 17, 1998 filE COPl VIA HAND DELIVERY ROGER M. MORGENTHAL, ESQUIRE FLOWER, MORGENTHAL, FLOWER & LINDSAY 11 EAST HIGH STREET CARLISLE, PA 17013 RE: JOHN WALTER/LIBERTY AssoelA TES Dear Roger: Enclosed herewith please find my client's check in the amount ofS13,OOO.OO as an additional payment on account to your client, John Walter Excavating. It is anticipated that at the next lot sale the remaining balance will be paid in full. I will have to check with Mr. Fox as to any movement on the remaining lots. However, in the meantime, Mr. Fox did go out and make a casual inspection of the development and questioned whether the entire first phase had in fact been paved. It did appear thatthc paving had stopped short of where it nceded to be. Therefore, please have Mr. Waiter review this situation and advise. I shall look forward to hearing from you. Very truly yours, IR\V1N, McKNIGHT & HUGHES R~'h~ d(:k JDH:c1c cc: Mr. Harry H. Fox .' ":,' j' . ':' ~ ' ',,:.. -: '",': :',,,1, ':,' '; ::' ,>" ;\" :"'~~;'~::~:~::{:\':!~':;':';~~"'~"~{~i~'" ~t1~~.~,.~I~::'~,', ') I~ ,~;,,:,,: ':. ,'~<',~,:' >', ,I:, \~,;~::;,\:.' <,',: ;1: ,"'::-:/':, ~~,;, > ~;, ",\1,::" , ", ,:: :.}; t ',' ,,' .J LAW OFFICES FLOWER, MORGENTHAL. FLOWER & LINDSAY A PROFESSIONAL CORPORA lION 11 EAST HIGH STREET CARLISLE, PENNSYLVANIA 17013-3016 JAMES D. FLOWER ROGER M. MORGENTIIAL JAMES D. FLOWER. JR. CAROLl. L1NDS,W B1ETSCH &. MORGENTHAL (1975.1985) FLOWER. KRAMER MORGENTHAL &. FLOWER (l985.199l1 (717)243-551) FAX: (7171 H)-6510 E~mllil: FMFL LlIwlq'llol.com September 1,1998 ,,:....,~..:~ ~._...:,.'.,;. ,.~..,):i ~.....: . "'" ",'''- ~ ., ";", " ' , ~. ~ ,'.: ~,! ";: r;: "~ ~".., .. .I~,:_:: ,'. ~ ... ~:~~ ..';;.;) James D. Hughes, Esquire IRWIN, McKNIGHT & HUGHES 60 West Pomfret Street Carlisle, PA 17013-3222 -. - - -,' '. ' .",~. - _.' ,'~~ I"." i. . ~, . .', .....~ .. H....~...';. '..--.. " ,. ,. ' .....:........:,1. :,ji'!: ;!,:', ~';' j; '..':':' ..J ...J "..... RE: JOHN F. WALTER EXCAVATING/LIBERTY ASSOCIATES Dear Jim: Enclosed is a copy of a statement which I received from my client showing the balance which they calculated after the last payment of $13,000.00. Where do we stand on getting the balance paid? If there is going to be any significant delay, it is important that the mortgage gets recorded to secure my client's interests. Thanks for YOlJr cooperation. ve~(J;' Roger M. Morgenthal ,: "< . ' ,~,\I, ,.J:'~ ~::. ::',,, ~,'> / ;' :~:~.~ ~~.~~~.L',;~~.},; "l:'J~'."\' ::.~~\.:,,";";;~;',~, ~ <~:':;:"_'"< ~.';'", '::, .:~ : .",~ '/-',':1 /.;: .J{~:''': ',:: ", ,I, :;~.\:' ;. ,:: ,.~~: Y:..i '\ .' . ~l .. ", , , . , '. . JOHN F. W ALTER EXCAVATING, INC., : COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. NO. CIVIL 1999 HARRY H. FOX, JR., and JOHN H. FOX, tJaJ FOX AND FOX, a partnership, CIVIL ACTION - LA W DEFENDANTS CERTIFICATE OF SERVICE I, Mark D. Schwartz, do hereby certifY that I am this day serving a true and correct copy of the foregoing document upon the person, and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules ofeiviJ Procedure, by depositing the same with the United States Post Office in Carlisle, Pennsylvania, postagc prcpaid, certified, restricted delivery, and addressed as follows: Theodore A. Adler, Esquire 2331 Market Street eamp Hill, PA 1701 I IRWIN, McKNIGHT & HUGHES By ,I J.. (1f,J w. f< ~h\\'artz, Esquire 60 West Porn fret Strcct Carlisle. P A 17013 717-249-2353 Supreme Court J.D. II 702 J 6 Allorney for the Defendant, Harry H. Fox.lr. and 10hn II. Fox T/a Fox and Fox, a Partnership Date: l 7 ' 2000 ,n,' - \ ',' ~, .' . ,(: "'\' I: : . . '\<, ':~'\ j :/~', ',::, ';,' ,;' ':',' ';i;~' l~/" /::t:, ~~ ~':"~~~"::~~ .~ ,',1:~-:._ \~.:.' :'''.: ;': 'f~ ':;,'" ,"';',' ..',' .' ~ " .. . _ \, I" :1' -' ,,, .,;".':,'., .' ,.r, :..... , , ',' <., ., . " \'"1 ,- C' (. IJ,' < , .' .' "." ':/ ':i, :, ,",,:; '. ,'.":.,:,' ';I::~!, ,~:. ..-~ ",;" .". "L_;,:;>,;~:~'~~~~~':"'.J>";I"~"~~i,~~'t::~::....:~~',,,':." ",' .:: ,.' ',; \',.~I!:r\': ,":":' ""~ ,'. .: , ~.. 28. Admitted in part; denied in part. It is admitted that Plaintiff continucd to perform work on the Project after December 15, 1995. To thc extent the averments of paragraph 28 imply or infer that this constitutes a breach of contract, said implications and inferences are denied. It is further averred that Plaintiff performed work after December 15, 1995, with the express approval of Defendant. 29. Denied. The Agreement, being in writing, speaks for itself. To the extent the avenllents of paragraph 29 of Defendant's New Matter are inconsistent with the plain meaning thereof, they arc dcnicd. In further response, it is averred that the $500.00 per diem charge is not part of the Agreemcnt and was never agreed to by Plaintiff. 30. Denied as a Icgal conclusion. 31. Admitted in part; denied in part. It is admitted that Defendant paid Plaintiff $] 38,670.50. The rcmaining avcnncnts are denied becausc they arc either legal conclusions or seek to characterize the contents of a written agrcemcnt, which speaks for itself. 32. Dcnied as a legal conclusion. 33. Dcnied. Plaintiff, after rcasonablc investigation, is without infonllation sufficient to fornl a belief as to the truth of the avcnllcnts of paragraph 33 of Defendant's New Matter. Said avenllcnts arc, therefore, denied and proof is demanded at trial. 34. Admitted in part; denied in part. It is admitted that the lellers identified as Exhibit B to Defendant's New Maller were exchanged by counsel for the parties. Since the documents are in writing and speak for themselves. Defendant', characterization of their contents, to the extent they arc inconsistent with the plainm('aning thereof. arc denied. , .<,.',~J,'.;; "rf,' ;;', ~,.:.l'<'.,~," \';'" r, >,: ,.,~":~;I';,,;.~i.~:~~;;~'I\;':";>:"::'>~~~\"~,";{:~~{::dl,\,~,...",l~.'~!"'~:':';":~." ':,y:,>,:\:', );,,;' ,,: ,,~r:\' ';,',):':.,(':, I'"~ 35. Denied. Thc Agrecmcnt, bcing in writing, speaks for itself. To the extcnt the averments of paragraph 35 of Dcfendant's New Mattcr arc inconsistent with the plain meaning thereof, thcy are denied. 36. Admittcd. 37. Admitted. 38. Denied. Plaintiffcomplcted all of the paving work contained in the scope of work for the Projcct. Dcfendant rcfused to make the final payment because Plaintiff refused to perlonn additional work without compensation. 39. Denied. The tenns of the settlcmcnt arc as set forth in documents identified as Exhibit B, which arc attached to Defendant's Ncw Matter. At the time these Icttcrs were exchanged, Dcfendant knew what work Plainliffhad pcrfol1ncd and agreed thatthc Project had been completed and that Plaintiffwas due the balance of its contract pricc. 40. Denied. Defcndant rcfused to makc final payment because Plaintiff would not perfoml additional paving work unless thcrc was an agreement to pay for the additional work. 41. Denied. Plaintiff completed the work contained in the scope of work included in the Agreement. WHEREFORE, Plaintiff, John F. Walter Excavating, Inc., respectfully requests this Honorable Court to enter judgment in its !'l\'Or and against Defendant in the amount of$24,193.77, plus statutory interest, penalties. attorney's fees and costs, 3 ANSWER TO CO! J1'ITERCLAlM 42. The avcnnents of paragraphs one (I) through forty-one (41) of Plaintiffs Complaint and Rcply to New Maller are incOll1orated herein by reference as if fully set forth. 43. Denied. Thc Agrecment, bcing in writing, speaks for itself. To the extcntthc averments of paragraph 43 of Dcfendant's New Maller are incOJ,sistent with the plain meaning thereof, they are denied. 44. Admilled in part; denied in part. It is admilled that Plaintiff continued to perfoml work after December 15, 1995 with the approval and concurrence of the Defendant. It is denied that the Plaintiffhas failed to complete the work contained in the Agreement. To the contrary, all of the work has been completed. 45. Denied. Plaintiff provided stone from Station 13 + 43 to 16 + 33 as required by the Agrcement. 46. Admitted in part; denied in part. It is admitted that a portion of the road was unpaved. It is denied that the scope of Plaintiffs work included paving the entire length of road. Rather, Plaintiffs scope of work required it to pave from Station 0 + 09 to Station 13 + 43. 47. Admillcd in part; denied in part. It is admilled that the entire length of the road has not been paved and that a final top-coat has not been placed on the paved portion oflhe road. It is denied that this work was required by the scope of work contained in the Agreement. 48. Denied as a legal conclusion. 49. Denied as a legal conclusion. In llJl1hcr rcsponsc. it is denied that the parties c\'cr agreed to a per diem charge. 4 50. Denicd as a Icgal conclusion. In fUlthcr response, it is avcrrcd that the Project work was completed and accepted by the Defcndant on or about August 6, 1996. 51. Dcnicd as a Icgal conclusion. In further response, Plaintiff incolllorates herein by reference the avellncnts of the New Matter to Counterclaim. 52. Admitted. In lurther response, until the filing of its Answer to Plaintiffs eomplaint, Defendant ncvcr rcqucstcd any latc charge payment. 53. Denied as a legal conclusion. 54. Dcnied. PlaintifT completed all of the work contained in its contractual scope of work Defendant has failed to pay for the work. NEW MATTER TO THE rOIJNTERCI AIM 55. The avcllnents of paragraphs one (1) through fitly-four (54) of Plaintiff's eomplaint and Reply to Dcfcndant's Ncw Matter and Plaintiffs Answer to Defendant's eountcrclaim are incorporated hcrein by reference as if fully set forth. 56. PlaintifTcould not complctc its work until it rcceived the plan ofPcnnsylvania Power & Light showing electric and communication eascmcnts at the Projcct. 57. Defendant did not providc thc plan until Novcmbcr 1995. 58. Subscquent to rcccipt of the plan, Plaintiffs opcrations wcrc halted becausc of weather conditions, as the Wintcr of 1995-1996 was historically one of the worst winters in the gcographical arca of the Project. 5 59. Throughout the period ofPlamtifrs pr.rfollllance, including the pcriod through May ) 996, Defendants requested additional work be perfollllcd by Plaintiff in connection with the Project, which Plaintiffperfolllled and for which it was paid by Defendant. 60. Defendant knew that the additional work would extend the completion date of the Project. 61. Defendant's claim for late charges is barred by the applicable statute of limitations. 62. The "late charge" clause alleged by Defendant to be part of the Agreement is ullenforceable. 63. The "late charge" clause alleged by Defendant to be part of the Agreemcnt has been waived by Defcndant. 64. The settlement agreement allegedly entered into by the parties is an accord and satisfaction thereby barring any "Iatc charge" claims. 65. Defendant is estopped from assessing "late charges" allegedly contained in the Agreement. 66. The Project was substantially completed in August 1996. 67. Defendant suffered no damages as a rcsuIl of the Project not being substantially completed by December 15, 1995. 68. The Counterclaim of Defendant sl'cking late charges in the amollnt of $734,000 is frivolous and without any legal merit. () CBn'C9L ILlll Z~9~' ~ ~OLl Itd "'IH d~WJ B3~lS B~~ltlN lCCl M\t111t S^3N~Oll\t 'J~ '11l3NDOJ 'll ~310V '~30\t3~ ~ Cl '- f- tr. -, ..,' "":::: t-' (.~ . . UJ(:~~ I -' 0':' :-c p,:....; Cl_ ~:):-:~ ~:., , , ,,-, ::!:~}i )':- I U,.i,J. ..-J11, ,..- 0;-, ,,:~~ l,:.li:;_ j:-: :..; ...'~ u. c.:) ~:) 0 c) U JOHN F. WALTER EXCA VA T1NG, INC., : COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTn-F v. NO. CIVIL 1999 - 2755 HARRY H. FOX, JR., /!lid JOHN H. FOX, tJa/ FOX AND FOX, a partnership, CIVIL ACTION - LAW DEFENDANTS DEFENDANT'S ANSWER TO NEW MATTER TO THE COUNTERCLAIM 55. See Defendant's Answer with New Matter and Counterclaim which are incorporated herein by reference thereto. To the extent that Plaintiff has made factual allegations in its Reply to New Matter and Answer to Defcndants' Counterclaim, these allegations are specifically denied. 56. Denied as stated. By way of further Reply, the PP&L Plan involved excavation work which was not part of the agreement, but rather was a separate arrangement between the parties. The provision of this Plain in no way kept Plaintiff from substantial completion of the work contemplated by the written agreement. 57. After reasonable investigation, Defcndants are without sufficient knowledge or information to form a belief as to the truth of this allegation and therefore it is specifically denied. 58. Denied as stated. By way of further reply, it is denied that the weather conditions caused Plaintiff to be unable to complete its work under the contract by December 15, 1995. 59. Denied as stated. By way of further reply, the only other work involved the excavation for utility lines which was a separate arrangement between the parties. - . . - " ", " \ ' .' ,..' ".. . '. 1 ",. ': ',.,' '~.' '_ ,;'. , .' .. : 60. Denicd as statcd. By way of further reply, the additional work contcmplatcd by parties was not of the natun: and scopc which would havc necessarily extended the completion date of the work contemplated by thc written contract. 61. This allegation is a conclusion of law to which no response is required. To the extent that an answer is deemed nccessary this allegation is specifically denied. 62. This allegation is a conclusion of law to which no response is required. To the extent that an answer is deemed ncccssary this allegation is specifically denied. 63. This allegation is a conclusion of law to which no response is required. To the extent that an answer is deemed necessary this allegation is specifically denied. 64. This allegation is a conclusion of law to which no response is required. To the extent that an answer is deemed nccessary this allegation is specifically denied. 65. This allegation is a eonclusion of law to which no response is required. To the extent that an answer is deemed nccessary this allegation is specifically denied. 66. Denicd. By way of further reply, the project was not completed, due to the fact that therc was no topcoat nor had the Plaintiff compktcd paving to the proper phasc line. Additionally, the Township still has not releascd the remainder ofthc bond monies. The project remains uncompleted. 67. Denicd. By way of furthcr reply, thc markctability and ovcrall development of the lots, intcr alia, was and continucs to bc adversely affccted by thc uncompleted project rcsulting in Defendants having to sell lots for less money. In addition, the bonds held by the township have to hc rene\\'(~d on a ycarly hasis thus incurring more cxpcnse filr Dcfcndants. 68. This allegation is :l conciusion of law to which no response is rcquircd. To thc cxtcnt that an answcr is dccmcd J1<'ccssary this allegation is spccilically dcnicd. WHEREFORE, the Defendants, Harry H. Fox, Jr. and John H. Fox, (/a Fox and Fox, respectfully request this Honorable Court to enter judgment in its favor and against the Plaintiffs and dismiss Plaintiff's eomplaint. By: J;'" Mark D. Schwartz, Esquire Attorney J.D. No. 70216 60 West Pomfret Street Carlisle, Pennsylvania 17013 717-249-2353 eounsel for Defendants, Harry H. Fox, Jr. and John 1-1. Fox, (/a Fox and Fox Date: June2f 2000 . , .... '. ',.' ',., ;.....> ',,' "":,' ' '. . " , '. . .".. '. ',' ': ',. ','" >- C1\ ?;; a.; c: .:1. :;:;~ I.:: c~ UJ~,:!. ( .l~.,. S,;' ;;'" - C':~ t~. -.... 0. n?i '.,' (~~ ~ ';.... >:- \~) ~ 'U) C' I.,..... N .-....<- l.~_ , ',", .. ~ i;'iliJ ... ::':~ ~J}(:I- .-', ..::,; .1;. c:' ::J Co) 0 "- 0', <::: (~) :t~: t~..,:i.,,-:.t,~ .'';'':'0- ~,j ':-':< ",l_':~; '.:?;.,:' ".. f.(~ f....' :'.'''/) 'i~: ' :. :;~:: . .,....:.. ~..... ~:!" ' ". J/ ~'J(!: :,::--", ;,) , '~" ::) tJ . ,,-;-, :<'1<...-,...._.. . <@li" .' . III . . U .... . ... li . '. e'i .... III ij .... \'I!l ... ~ "" ~~ ~~ " .. .., .... ~.;;: ~ .. ~~ '8 . 101 'I. ~ ~~ i"'.!~" ~O t'l . e; ~ ~ u @l!~ . s , .?'~ l.........~ > . ~ ~ . ~ ... ~~ .... ,.~~~ . .cl . ~ Ol ~~ . Ill..... ~ ro. ... .. ~r' ~ ! .13 f ~ 1Ol::l il!'f . Cil .., I'< '.'; ~ if '0 ~ ~ ~ .. ...~...... .~...' ....... . . ~.'" ...~..... ill:! n .'>i~HI'! ';i ~ s ~ ~., ..'~. i ~'.," ',"..R u . . . w " ..:;.....,.".. ,'.' "? " .'. . .::.... ......... ,-=,., ...., '~.:, :..""""." ,.~,."""..':'.':,... 4.111"'.'. ,., . ".,. ...,."-,,..,.......- -" -~~ .....,....,.,." ...~,.,.:r--~~ '. '&.~,' " .: ".. " ;--;"7,;""!-,..;J.~:--,~,,.> ',. " '. '. .': ~'. ... ,', . .~~,~-,_.....~.;-...""",>It.( . 1 -'._, REAGER &. ADLER, P.C. ATTORNEVS AT lAW 2331 MARKET sn~EET CAMP HilL, PA 17011.4642 (717) 763-1383 "IIG ? 1 2000 . \ " ,~ v.J\j ""11 I ! , , ..' . " ~ ~ . ,," , ~,': ' :" ,.., " " " . . .' ' . ' . ., JOHN F. WALTER EXCAVATING, INC., : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintili 'I. : No. 99-2755 CIVIL TERM HARRY H. FOX, JR., and JOHN H. FOX, : CIVIL ACTION - LAW tla FOX AND FOX, a partncrship, Defcndants RULE AND NOW, this L ~ J.day of August, 2000, a Rule is issued to Defendants, Harry H. Fox, Jr., and John H. Fox, (/a Fox and Fox, a partnership, to show cause why Plaintiffs Motion to Compel should not be granted. Rule retumable within i 0 days of service. i I , i _I 1 , , I ! i ; By the eourt, 1 1/ ~I ~. .J l /(--7/7{) ,r J I) ( 1-, . :0- G. f\ 0 ~ ~,:l~t ~\\C) JOHN F. WALTER EXCAVATING, INC., : IN TilE COURT 01< COMMON PLEAS : CUMUERLAND COUNTY, PENNSYLVANIA PlaintilT v. : No. 99-2755 CIVIL TERM HARRY H. FOX, JR., and JOHN H. FOX, : CIVIL ACTION - LAW t/a FOX AND FOX, a partncrship, Defendants MOTION TO COMPEL ANSWERS TO INTERROGATORIES AND NOW, comes the Plaintiff, John F. Walter Excavating, Inc. (hereinafter "Plaintiff') by and through its altorneys, Reager, Adlcr & Cognclli, who move this Honorable Court to compcl Defendanls, Harry H. Fox, Jr. and John H. Fox, t/a Fox and Fox, a partncrship (hcrcinatler "Defendanls"), 10 answer inlCITogalorics and rcqucsts for documents propounded to them by Plaintiff and as reasonlhcreforc slatc: I. On June 27, 2000, Plaintiff served intcITogalories and requcst for documents on counsel for the Dcfcndants. 2. Responses to intcITogatories were due on July 27, 2000. 3. On July 3!, 2000, counsel for Plaintiffwrotc to counsel for the Defendants inquiring as to when responses would bc made. A copy oflhe lcller is allached as Exhibit "A". No rcsponse was made to the Icllcr. 4. No objections havc been made hy Dcfcndanls to the inlcITogalorics or rcqucst for documents. 5. As ofthc date of this motion, Defendanls have failcd to respond in any fashion to Plaintiffs discovery request. >. U) ?::: ~~f.' <': I~' ~ ~) ,0, (\; '.r: In C. t:! " ;c;; , . , : Co, - 0' :-' .' . .n ,) C: , Wi .., f . '. ~ ,,'~J , .- . r:-;. . ,~; '. , C} -,. . CERTIFICATE O..E.SERVICE AND NOW, this 3'd day of October, 2000, I hereby verify that I have caused a true and correct copy of the foregoing Praecipe for Listing Case for Trial to be placed in the U.S. mail, first class, postage prepaid and addressed as follows: Mark D. Schwartz, Esquire Irwin, McKnight & Hughes 60 West Pomfret Street earlisle, PA 17013 Theooore A. Adler, Esquire ".' ',' :.;' '.~ \ : ".,:' t' i ",'. ':., ,\\>::;I,:,,',."<~~"~'~;;:::'I:\~_,~~;::f;,:~j:-~.~;~\':"'~"'~:::"/::;~~:'l,;"\: ::~.' '.: ';~"I:T_/, ',\:','::.:":' ;:~, '~".,/'. " (.,,,J~",'T'" '" '". ".Y, [c-, r::' -,:~'j 'J') I 1," /.. ;I\j ( "1,!.- '-- j) .) '-' . JOHN F. WALTER ExeA V ATlNO, INC., : IN THE eOURT OF eOMMON PLEAS : eUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. : No. 99-2755 CIVIL TERM HARRY H. FOX, JR., and JOHN H. FOX, : CIVIL AeTION - LAW (/a FOX AND FOX, a partnership, Defendants ANSWER OF PLAINTIFF, JOHN F. WALTER EXCAVATING, INC. TO DEFENDANTS' PETITION FOR LEAVE OF COURT TO AMEND DEFENDANTS' ANSWER WITH NEW MATTER. 1. Admitted. 2. Admitted. .) Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted in part. It is admitted that Exhihit "B" is a copy of Defendants' Answer with New Matter and Counterclaim. It is denied that "issues regarding the quality of the work that had been completed hy Plaintiff' were not raised hecause they "were not known or knowahle." The project has hecn completed since 1996. Additionally. Defendants have sold the lots and homes have hecn huilt onlhcm. MorcO\w.the \\011 perfi.lIl11eO hy Plaintiffwas inspected and accepted hy thc Township in which the project is located. 8. Denied. Plaintifffilcd a Rl'ply to l\:ew ~\j;ltkr and an Answer and New Matter to the Counterclaim. 9. Admitted. 10. Admilled with clarification. On.llln~ 27, 2000, Plaintiff served interrogatories and rcqucsts for production of documcnts upon thc Dcfcndants. Dcspit~ rcpcalcd assuranccs that responses would be filcd,nonc werc forth coming. On AugllSl16, 2000, PlaintifTfilcd a Motion to Compel and lhis eourt entered a Rule on August 23, 2000, which was retumable twenty (20) days after scrvice. Answcrs wcre ultimately filed by thc Defendant on Septcmbcr 8, 2000. 11. Admitted. By Ictter dated May 31,2000, counscl for Plaintiff advised counsel for Defendants that it intended to list the casc for trial once the pleadings wcre closed unless Defendants' counsel objected. No objections were madc. 12. Denied. After reasonablc invcstigation, Plaintiff has insufficient infollnation to foml belief as to thc truth of thc avellncnts contained in paragraph 12. Said avemlents are, therefore, denicd. Plaintiff avers, however, that it had a representative visit the project within the last month and thc project is apparently completed. 13. Denied. Representations havc continually bcen made by Defendants that they want to rcsolve the litigation. Based upon thcsc representations, Plaintiff gave Defendants an extension oftimc 10 answcr thc original eomplaint. After a number ofpostponcments a meeting was hcld which proved uscless. Thcrcaftcr, Plaintiff filed a 10.day Default Notice to which Defendants filed a serics of frivolous preliminary objections, all of which were dismissed by the court on Novcmbcr 23, 1999. 14. Denied. Plaintiff bas always insisted that it pcrfollncd all the work for which it now seeks paymcnl. This bas bccn "clear" for four (..t) years. IS. Dcnicd. To thc extcnt thc Dcfendant claims deficicncies in thc work perfollned by Plaintiff. it is al'crrcd that all of Plaintiff's work was pcrfollncd in acconluncc with the rcquircments of the contract, was 'nsp'xtcd by the Township and was accepted by the Township. , ," ('; "'. -~::', " ":.:: ,-: _' ',,:', (. ~"~.' ,.<"...~,' <,'<.~;,~-",: ~"",:~>,\~~,:,\\.I.;: ':'\\'~:~~~:':!7~~'::'i';I:.":,," "" ..\...;"1:..'<.:....".', " :,:.,:;:" /.,'~,.:.';',~':~.,.,< >" "', ~"'_:.' '<I' ~:~,' Moreover, Defendants, to this date, have never noti lied Plainti ff of any deficiencies in the work perfol1ned. Additionally, there is nothing in Defendants' petition that dcscribcs these allegcd deficiencies. 16. Denied. Plaintiff incorporates herein its answcr to paragraph 15. 17. Admittcd. In further response, it is averred that Defendants have had cighteen (18) months to schedule discovery. 18. Admitted in part; denied in part. Plaintiffs counsel advised Defendants' counsel that it intcnded to list the case for (rial after thc plcadings were closed. After receiving Defendants' eounterclaim for $738,000.00, Plaintiffsought discovery related to the Counterclaim. Defendants ncver indicated until the filing ofthis Petition that they intended to take any discovery. 19. Admittcd in palt; denied in part. It is admittcd that this case has not previously been listcd for trial. It is denied that additional discovery will not delay the trial in this matter. NEW MATTER 20. At no time did Defendants' counsel advise Plaintiffs counsel that it wished to file an amcndcd answer. 21. Gil'enthc fact that Defendants' Answer with New Mattcr and Counterclaim was filed on January 7, 2000, there was sufficicnt time for Defcndants to filc an amendment at that time. 22. Other than vaguc allegations of defcctil'c work, Dcfendants' Pctition provides no reason as to why Defcndants hdicl'c thcy nccd to file an amcndcd answcr. Morcovcr, Dcfcndants ha\'c failed to allach to the Pctition a copy of their proposed amended plcading. 3 23. Bascd upon previous actions and inactions of Defendants, Plaintiff believes and avers that the purpose oflhe Petition is to delay a trial on the merits. WHEREFORE, Plaintiff/Respondent respectfully requests that this court deny Defendants' Petition to File an Amended Answer with New Maller and Counterclaim. Date: November 21, 2000 Respectfully s milled, REAGER & I[;L , P.c. ~. ~/ iJ Theodore A. Adler, Esquirc Allomey I.D. No. 16267 2331 Market Street Camp Hill. P:\ 1701 ].4642 Telephonc: (717) 763-1383 Allomeys for Plaintiff .; '-. JOHN F. WALTER EXCAVATING, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW HARRY H. FOX, JR., and JOHN H. FOX, t/a FOX AND FOX, a partnership, Defendants No. 99-2755 CIVIL TERM ORDER OF COURT AND NOW, this 6th day of December, 2000, upon consideration of Defendants' Petition To Amend Answer with New Matter and Counterclaim, and following a conference held in the chambers of the undersigned judge on this date in which Plaintiff was represented by Theodore A. Adler, Esquire, and Defendants were represented by Mark D. Schwartz, Esquire, and pursuant to an agreement of counsel, Defendants' petition is granted, without prejudice to Plaintiff's right to preserve the issue of the statute of limitations and any other defenses with respect to any amended allegations for disposition at time of trial. Defendants' Amended Answer with New Matter and Counterclaim shall be filed on or before Friday, Thursday, December 21, 2000. By the Court, ... ~ } -lk:// I / ,We S.l. ey o e.; r. ,. t'I. \ Lcrp"u-D -fl\ ~ ,~: 19-00 ~XS (;;..' ;': , " " ',' ~ '. ' "'" '" ,>' ,. ',"",' ,',.: .. ,I, .;.. ~ ',' Theodore A. Adler, Eoquire 2331 Market Street Camp Hill, PA 17011 For the Plaintiff Mark D. Schwartz, Esquire 60 W. Pomfret Street Carlisle, PA 17013 For the Defendants wcy '. 11, 2001, at 9:30 a.m. Counsel have estimated the duration of trial as one day. Counsel have indicated that they do not at this time anticipate a settlement of the case prior to trial. I I I I By the Court, ., Theodore A. Adler, Esquire 2331 Market Street Camp Hill, PA 17011 For the Plaintiff .' , , (' / Xi. Ii. I / / "'7. ..... J. Wesley Oler', Jr., J'.' v t~ ~aJJ P-{<j'.oo ~j(s .,,' ? Mark D. Schwartz, Esquire 60 W. Pomfret Street Carlisle, PA 17013 For the Defendants wcy , ":'" " " ">,, h' ,":,,", ,,': ':', :,',' ," , .. ': .':' "<:::,' , : ". '" ", '" ,'. ',',,:", : JOlIN F. WALTER EXCAVATING, INC., : COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. NO. CIVIL 1999 - 2755 HARRY H. FOX, JR., and JOHN H. FOX, tJaI FOX AND FOX, a partncrship, CIVIL ACTION - LAW DEFENDANTS NOTICE TO PI.,EAD TO: 10HN F. WALTER EXCAVATING, INC. YOU ARE HEREBY N011FlED that you must responsively plead to the within Defendant's Amended New Matter with Counterclaim, pursuant to Pa. R.C.P. 2252(d) within twenty (20) days after service, or a default judgment may be entered against you. HUGHES By: a D. Schwartz, Esquire 60 West Pomfret Street Carlisle, PA 17013 717 -249-2353 Supreme Court I.D. No: 70216 Auomey for Defendants, Harry H. Fox, lr., and John H. Fox , , . ,':-" ". .. ': - . , ."_ '.. " "" " , 'c . " .:" . :',_ ,I . I.' JOHN F. WALTER EXCAVATING, XNC., : COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. NO. CIVIL 1999 - 2755 HARRY H. FOX, JR., and JOHN H. FOX, tJaJ FOX AND FOX, a partnership, CIVIL ACTION - LAW DEFENDANTS DEFENDANT'S AMENDED NEW MA'ITER WITH COUNTERCLAIM 1. Defendant herewith incorporates the allegations of the New Maller and Counterclaim filed on or about January 7, 2000. 2. In September 2000, the Defendant undertook the project of completing the paving and excavating work on the Cross Road School Road Estates Phase II. 3. During the course of completing this project, Defendant became aware of several deficiencies in the work previously perfonned by Plaintiff. These deficiencies include, inter alia, the following: a. improper stone depth at various portions along the roadway; b. the road was not properly crowned; c. swails were not properly installed; d. the catch basins were installed five (5) inches too high requiring the road to be raised; and e. tar and chip shoulders were not properly installed. 4. Previously, West Pennsboro Township had inspected the work done by the Plaintiff and had authorized release of monies for payment by Defendant to Plaintiff. 5. Defendant relied on the inspections done by the township and their authori7Altion for release OfpaymCl1t when paying for work done by the Plaintiff. , . '.....'.. . .,1 .,1 .. " . ," .', . .',' " I, '" .' .', "'. ' .' 6. West Pennsboro Township is now aware of the deficiencies noted above and has required the Defendant to correct the deficiencies in the roadway in order to complete Cross Road School Road Estate Phase II. 7. Defendant has incurred costs and expenses in the amount of $33,210 to cure the above deficiencies and to properly complete the Cross Road School Road Estate Phase II project as contemplated by the original agreement between the parties. 8. Plaintiff is in breach of contract for their failure to complctc the project pursuant to the terms of the contract and for their failure to perform the work required in a good and workman like manner. 9. As a result of the breach, Defendant has suffered damages as aforesaid and had to hire another contractor, Dave Leininger, to complete the work contemplated under the agreement which resulted in additional costs, expenses and damages to the Defendant. WHEREFORE, the Defendants, Harry H. Fox, Jr., and John H. Fox, tla Fox & Fox, requests this Honorable Court to enter judgment in its favor against Plaintiff in the amount in excess of $25,000.00 said amount being the jurisdictional limit for mandatory arbitration. Respectfully submitted, By: Mar D. Schwartz, Esquire 60 West Pomfret Street Carlisle, PA 17013 717-249-2353 Supreme Court I.D. No: 70216 Attorney for Defendants, Harry H. Fox, Jr., and John H. Fox December 3J... 2000 .. . .'. -;-, . "r \. "', ~'. ,(:: " '....: j ~ "\ .'.: .~ " " JOHN F. WALTER EXCA V ATlNG, INC., : COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. NO. CIVIL 1999 - 2755 HARRY H. FOX, JR., and .JOHN H. FOX, tJaI FOX AND FOX, a partnenhlp, CIVIL ACTJON - LAW DEFENDANTS CERTIFICATE OF SERVICE I, Mark D. Schwartz, do hereby certifY that I am this day serving a true and correct copy of the foregoing document upon the person, and in the manncr indicated below, which selvice satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by deposiiing the same with the United States Post Office in Carlisle, Pennsylvania, poslJlge prepaid, and addressed as follows: Theodore A. Adler, Esquire Thomas O. Williams, Esquire REAGER & ADLER, P.C. 2331 Market Street CampHiII,PA 17011 By: ~~ fcKNIGHT & HUGHES Marl, D. Schwartz, Esquire 60 West Pomfret Street Carlisle, PA 17013 7] 7-249-2353 Supreme Court Lu. # 70216 Attorney for the Defendants, Harry H. Fox, Jr. and John H. Fox (/3 Fox & Fox, a Part.ncrship Date: December _~_, 2000 , . . . ~ . " " / ' .,,: ". '" . .' " " . '- , . , '. " . , ,', ",' ", " .l'~,":~ ' ,~,!",,~-, .~',", """.""","1\":"~"~" "'," ",'. " ': :". CORRECTION · 1-.:-1.11I .--.... ."-11-:-::-.. ~. ..........:.. II -- -r-' ,.1.. .....1 "'-__11_ .. 11I11.-....... 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