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HomeMy WebLinkAbout99-04269¦ Z ¦ 1 r' PNC BANK, NATIONAL IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A. Plaintiff : NO. 99-4269 CIVIL V. JEAN O. DORSEY, DEN-NIS G DORSEY and GLENDA K. : CONFESSION OF JUDGMENT MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES: Defendants : CIVIL ACTION -LAW ASSIGNMENT OF JUDGMENT FOR VALUE RECEIVED, the undersigned PNC BANK, NATIONAL ASSOCIATION does hereby grant, bargain, sell, convey, transfer, assign and make over unto LAND HOLDING, INC., its successors and assigns any and all right, title and interest it may have in and to a certain judgment recovered by PNC Bank, National Association in the Court of Common Pleas for Cumberland County, Pennsylvania to docket number 99-4269 Civil against Jean 0. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, Individually and as Co-Partners d/b/a Dorsey/Maxton Associates, for the sum of One Hundred Twelve Thousand Twenty-Six and 94/100 Dollars ($112,026.94), together with interest thereon and costs of suit and for foreclosure and sale of the property described in Plaintiff's Complaint, and together with all the benefits and advantages that may be obtained thereby, and full power to enforce and recover the judgment to its own and their own use. I further authorize and empower the prothonotary or any attorney on behalf of the assignee to mark the judgment to the assignee's use. IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed in its name by its duly authorized officer, on the Z 'td' ay of d, 1999. PNC BANK, NATIONAL ASSOCIATION By: .r? Eric D. Krimmel Assistant Vice President COMMONWEALTH OF PENNSYLVANIA COUNTY OF On this, the ay day of/I/AQj;9h,L11, 1999, before me, the undersigned officer, personally appeared Eric D. Krimmel, who acknowledged himself to be an Assistant Vice President of PNC Bank, National Association, and that he, as such officer, being authorized to do so, executed the within instrument on behalf of such Bank for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. C (SEAL) Not y Public My Commission Expires: Sherry Notarial Seal M. Baney. Notary Publla Hampden Twp., Cumberland County My Commission Expires Juno 2d• ORI Member. Pennsylvania AII00161100 of NOtlries J C TJC_ ..?i G O ? U ISL. \ ?? Q e v ,. PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. DORSEY and GLENDA K. MAXTON, CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against Defendants as follows: Principal $106,489.19 Other authorized items: Interest to June 29, 1999 Mortgage satisfaction fee Attorney's Commission TOTAL $ 189.29 $ 24.00 $ 5.324.46 $112,026.94 Respectfully submitted, SAIDIS, SHUFF & MASLAND I [? l Date: By: l ( Ka M. Le ebohm,Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff Q ? r- J ? LL CJ rn U PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants NO. C ,/ - e ? CONFESSION OF JUDGMENT CIVIL ACTION -LAW COMPLAINT FOR CONFESSION OF JUDGMENT UNDER RULE 2951 The name and address of the Plaintiff is PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., 4242 Carlisle Pike, Cumberland County, Pennsylvania. 2. The last known address of the Defendants Jean O. Dorsey and Dennis G. Dorsey is 322 West Green Street, Shiremanstown, Cumberland County, Pennsylvania 17011-6521. 3. The last known address of the Defendant Glenda K. Maxton is 413 16th Street, New Cumberland, Cumberland County, Pennsylvania 17070-1318. 4. The last known address of the Defendant Dorsey/Maxton Associates is 320 Rear Bridge Street, New Cumberland, Cumberland County, Pennsylvania 17070 and 322 West Green Street, Shiremanstown, Cumberland County, Pennsylvania 17011-6521. 5. Defendants executed and delivered to Plaintiff a Mortgage Note ("Note"), a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "A" and made a part hereof. 6. Defendants are in default of Defendants' obligations to make payment to Plaintiff as required in the Note, as modified, and Plaintiff has demanded payment in full of all outstanding principal and interest as provided in the Note, as modified. A copy of Plaintiffs demand is attached hereto as Exhibit "B" and made a part hereof. 7. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 8. There has not been any assignment of the Note. 9. Judgment has not been entered on the Note in any jurisdiction. 10. Defendants are in default of their obligations to make payment to Plaintiff as required in the Note, as modified. The amount due to Plaintiff as a result of Defendants' default is as follows: Principal $ 106,489.19 Interest to June 29, 1999 $ 189.29 Mortgage satisfaction fee $ 24.00 Attorney's Commission $ 5.324.46 TOTAL $ 112,026.94 11. Interest continues to accrue at the rate provided in the Note, as modified, in the amount of Twenty-Three and 661100 Dollars ($23.66) per day. WHEREFORE, Plaintiff demands judgment against Defendants, Jean O. Dorsey, individually, Dennis G. Dorsey, individually, and Glenda K. Maxton, individually and Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, co-partners d/b/a Dorsey/Maxton Associates, as authorized by the warrant of attorney contained in the Note for One Hundred Twelve Thousand Twenty-Six and 94/100 Dollars ($112,026.94), plus interest from and including the date of this Complaint and judgment entered hereon at the rate of Twenty-Three and 66/100 Dollars ($23,66) per day, and costs of suit. Respectfully submitted, SAIDIS, SHUFF & MASLAND Date: c? Q By: KArI M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff Mortgage Note US-S_140,000.00 November 21, __. .,1991 FOR VALUE RECEIVED, the undersigned (hereinafter called the "Borrower") promises to pay CCNB [lank, N.A., a national banking business association created by and existing under the laws of the United States havin its principal place of business at 4242 Carlisle pike, Camp Ifill, Cumberland County, Pennsylvania, (hereinafter called the " (lank") or to its order, the principal sham of One hundred Forty Thousand and 00/100 ----------------------------------- (,$140,000.00 )DOLLARS together with interest on the unpaid principal balance at the rate of _10-1/2 percent per annum, said prin- cipal and interest to be paid at the times and in the manner set forth as follows, to wit: One Hundred Forty Thousand and 00/100 Dollars ($140,000.00), lawful money as aforesaid, payable five (5) years from date hereof, com- mencing on the twenty-second (22nd) day of December, 1991, and thereafter on the twenty-second (22nd) day of each month, said principal and interest, at the rate of ten and one-half percent (10-1/23) per annum, to be paid in monthly'instaliments of One Thousand Three Hundred Ninety Seven and 74/100 Dollars ($1,397.74) until the principal and interest are fully paid. It is understood and agreed that the provision for the payment of principal and interest shall not alter or change the term and maturity of this obligation. Borrowers to pay real estate taxes and present receipts to bank for verification prior to December 1st of each year, The Loan is payable in full at the end of five (5)' years. At maturity you must repay the entire principal balance of the loan and unpaid interest then due. The bank is under no obligation to refinance the loan at that time. You will, therefore, be required to make payment out of other assets that you may own or you will have to find a lender, which may be the bank you have this loan with, willing to lend you the money. If you refinance this loan at maturity, you may have to pay some or all of the closing costs normally associated with a new loan even if you obtain refinancing from the same bank. Mortgagor shall have the right to make pre-payment on the principal in whole or in part to the mortgagee without penalty or additional cost. at the office of said Bank (or such other place as designated in writing by the holduhereof) and shall also, from lime to time, until said debt and interest be filly paid, renew and keep alive, by paying the necessary premiums and charges on such policy or policies of lire, storm, explosion insurance, war d;unage insurance, or on any and all other insurance, which the Hank, its successors or assigns, may demand liar thither security ol'said debt upon [lie buildings and improvements described in the Mortgage accompanying and securing this present obligation, or any which may be hereallererceled thereon, said policies of insurance ofwhatsoeverkind to be deposited with the Bank, its successors or assigns, and transferred by properly registered and approved assignments with non-contributing mortgagee clauses lunched, and any renewals ol'said policies ill be furnished to said llank at least seven (7) days before the expinnion of said policies; in the event of loss or damage, the proceeds ol'said insurance shall he paid to hank alone. Bank is authorized to adjust and compromise such loss without the consent of Borrower, l0 collect, receive and receipt forsuch proceeds in the name of Bank and Borrower, and to endorse Borrowers name upon tiny check in payment thereof. Such proceeds shall he applied toward reimbursement ol'adl costs and expenses of Bank in collecting said proceeds, and luward the payment of all anrnmts payable by Borrower Io Bank hereunder, and Inward the payment of the indebledness secured hereby or any portion thereof, whether or not then due or payable, or Bank at its option, may apply said insurance proceeds or any pan thercoflo the repair orrebuilding ul'said premises. In the event of sale ol'lhe premisesun foreclosure, lheownership uf all puliciesul'insurance shall pass in the purchaseral said sale and Borrower hereby appoints Bank its attorney-in-I'net, in Borrower's name to assign and transfer all such policies to such pur,hiocc. The Burnrwershail also pay, from time m tulle, until saiddebt and interest be fully paid,;dl taxes, water and sewer rents and all charges and claims assessed or levied at any time, present or insure, by any lawful authority upon the mortgaged premises, which by any present or I'uture law or laws shall have priority in lien or payment to the debt represented by this obligation, and secured fly snit! M"rigage, when and as the same shall become due and payable, and shall also exhibit to said Bank, its successors orassigns, receipts for all taxes, water and sewer rents assessed upon orchargeable to thi mortgaged property, at the office ol'said Bank, or at sucholherplace as may be designated by said honk in writing, within twenty( 20) days allersuch taxes or watcrorsewer rents have last been payable al face without the imposition of interest or penalties, as well as receipts fir all other taxes or charges or claims of every kind and nature which by any present or future law or haws may be or hecome a lien upon the mortgaged property, priorin lien to said Mortgage, or which may be or become, by any present or future law or laws, first distributable or allowableorpay- able before said debt, out of tale proceeds of anyjudiciol sale for collection of saiddebt, orsodistributable or allowable or payable out Mahe proceeds of any nlherjudicial sale, without any fraud or future delay, then this obligation to he void; otherwise to remain in lull force and virtue; it being understood and agreed, however, that upon the failure ol'lhe Borrower, Borrower's heirs or ;assigns, to maintain said insurance upon the building, or to pay the taxes, water and sewer rents, orothercharges, clainhs or liens;ls;d'uresaid, the Bank, its successors orassigns, may insure the buildings, or pay such taxes, water and sewer rents or other charges, clainhs or liens, and the sums so advanced by the Bank, its successors and assigns, shall be payable by the Borrower, Borrower's heirs and assigns, to the Bank, its successors and assigns, and shall he added In and become it part ofthe principal debt hereby secured and shall bear interest thereon at the rate set lixth above until paid. rxhibit "A" The Burrower covenants find agrees: 'fh;U wish the payments of principal and e will ply to Bank n pm rata po'illh vesutaxes, nssessmenls:ual insurance Preto 111111, nextt(I hecnmc due as intesferest imat lie fly [lie B:m It so t ha t t he Bankwilllerc l'Anydefifucit ndsonhand due date topay[axes,assessmemsandinsurance premiumsthirty (30)days heloreIle ss of erwise Any d shall nd, edia[ely be paid to [lank by Ilorrower. Moneys so held shall not hear interest, 11 shall otherwise required by law, and upon default, only be applied by Bank on account of the mortgage indebtedness' II sally of the responsibility nl' (hc Borrower to furnish Hank with hills in sufficient time to pay taxes before the penalty ;leaches. The Ilorrowerhereinarisesfr in the event of the paate of[his Note, ofany law ol'theComllon. Wealth of I'ennsylvunb 4 deducting from the value nfthe ssage,alter the date fur h te purpose of lax;lion, any lien thereon, or changing in ;any why the laws new in force liter the taxation ol'mongages or debts secured thereby, for sane or local purposes, tic secured byanner this N orate or Note, collection together of any with the i such lazes nterest so (life asto Iherenn, affect tshhae ll, at the interest of the option ofth Banke, [[lie Bank, whole immediately principal become d sum and payable. , ue The Borrower herein further agrees that if any installment of interest be no paid when due, such installment shall hear ill ,resl a the nee scl forth above until paid. In [lfc event Thal nny payment provided liv herein shall hccomc ovcr- a[?fa•G,•.ah••?indmrcress nl'liltcenl151 laws. Bnrnnver+a tees it) pa so nwerdue for [lie purpose of defy ling expenses incident ao handling the delinquent Payment And former, borrower agrees not In convey or otherwise transfer lityc (either legal or equitable securing this Note Without prior written consent by the ) to the premises described in the mortgage Borrower to the specific transfer. A transfer to the survivoror devisees or heirs of the Borrower in the event of Borrower's death shall not come within the prohibition of this covenant. 11 saidprincipalstill) ordol'anyV press inle days, orol'any taxes, water and sewer rents, municipal assessments urcharges assessed against orupon the mortgaged premises as alt rc%aill, or any pan thereof, or in lane exhibition of the receipts for taxes and water find sewer rents and all other taxes or charges or claims aforesaid, on or before the lime hercinnFier specified f'or the ex If ihit ion thereof', fort lie spaceol evenly (?(f) days, the whole ofsaid principal debt or sum together with all premiumsofinsurance, taxes, water and sewer rents Paid shall thereupon become (line and payable, and judgment rally be entered and execution may issue Forthwith for the collection of the same, and all interest thereon, together with all fees, costs and expenses of collecting the same, including an attorney's commission of five per conlum (5'%), anything herein contained to the contrary, notwithstanding. In the event of the takingof:ill or any portion ofthe premises described in the mortgage securing [his Note in any proceedings under the power ofemincnl domain, the entire award rendered in such proceedings shall he paid to Bank, to he applied toward reimbursement orall costs and expenses ol'Bank in connection with said proceedings and toward paynhca[ of all amnums payable by Borrower to Bank under the mortgage securing this Note and toward the of Unc indebtedness hereby secured, or any portion payment thereof, whether or not then due or payable, or Bank at its option, may apply said award, or any pan thereof, to the repair or rebuilding of said premises described in said mortgage. And it is hereby declared that this obligation is accompanied by Indenture of Mortgage, of even date herewith, made between Borrower and said Bank, secured upon real estate situated in the IIOroUgh Of New Cumberland County, Cumberland County, Pennsylvania (320 Rear Bridge Street) m said Indenture of Mortgage more particularly described, Mortgage. and is subject to all the terms and conditions of said thereb BorruANDoralOVID nnal,fCo ditioon for agreement of this obligation sor of said Mthat in event l(bcnh ()Fall), w [)reach For nlhc Bank In enter upon all and singular the lands, buildings and premises granle(I by said Mortgage Insecure this obliga- I if xh, rogellfer with the hereditamenls and appurtenances, and each laid everypart thereof, and to lake Possession of the same and of the fixtures, appliances and equipment [herein contained and to have, hold, m, eno th llorroweu or any other person or persons, use and operate the same in such Parcels and on such termanages atndfort sesuche perinds of time as Bank may, in the sole discretion of Bank, deem proper, the Borrower agreeing lhm Borrower shall ;full will, whcneverreque.sled by Ilankso lode, assign, Ir nsFer at ldelivernmb, (lank any such lease orsublease; andlo every part thereof, orwldchlhisohligaimntshallfheasldlicienllwarrant whetherornotsuch leaseorsuhlealse( hasbeen .ssignedto Modgagee, and to make from time to lime all alterations, renovations, repairs and replacements therc[o as may seem judicious to Bank, and aherdeducting [he cost ofany orall such allerations, renovations, repairs and replacements and expenses incident t, taking and retaining possession of the said property and the management and operation thereof, and keeping the same propeny insured, to apply the residueol'such rents, issues and proff[s, any, arisingas aforesaid, to the p;lymenl of all taxes, charges, claims, assessments, water and sewer rents and any other liens that may be prior in lien or payment to said Mortgage or this obligation and premiums for said insurance, with interest thereon, or in the interest and principal due under this obligation and secured by said Indenture of Mortgage, with all costs and attor- ney's fees, in such oryeror priority, as flank, in the sole discretion of Bak, unity determine any st luteI law, custom or use In fife contrary not wit listanding; it being expressly agreed, however lull (lie taking of possession by Bank, under this provision, shall not relieve any default which may have been made by Borrower, orprevent [lie enforcemem ofany of the remedies by this obligation or accompanying Warrant ofAeorneyfir ofsaid Mortgage provided in case of such default; and it is further expressly understood and agreed that the remedies by this obligation and Warrant ufAunrney and said Indenture provided for file enforcement of fine payment of the principal sum secured by said Mnngage, logelher with interest thereon, as hcreinbetore specified, and fo- da: performance of the convents, conditions and agreements, matters and things herein contained, or in said Mortgage referred in, ire cumulative and concurrent and may be pursued singly or successively or together at the sole discretion of the Bank and may be exercised as often as occasion tferelor shall occur. AND for rife Purpose of securing said possession of said mortgaged premises to Bank, in (he even( orally breach as;doresaid, Bunruwerdocs hereby aulhnrize and empo verany arlurney of any court ofComrnon Pleas in any County of the Commonwealth of I ennsylvania, or orally other court there or elsewhere, as attorney for Borrower, as well as For all Persons claiming under, by, or through Borrower, to sign an agreement for entering in any competent court an amicahle action in ejecument forpossession oflhe premises granted by said Mortgage, together with the heredifainenrs and appurtenances, as well as all fixtures, appliances and equipment of any nature whatsoever, now or hereafter insudled upon fir in said mortgaged premises (wit hout any slaty (11 execulion or appeal) against said Borrower and all persons claiming under, by or through Borrower and therein confess judgment for the recovery by the Bank of the possession of the said mortgaged premises together with the heiedilaments and appurtenances, as well as all fixtures, appliances find eq a ipment of any nature whatsoever, now or hereafter installed if Pon or in said mortgaged premises, for ':Yr: which II I is ohIiga lion (or a copy Ihereol-verilicd b desires, ;t l Writ of Poss Y allid;ivit) hereby ession "lily be issued lihnhwitlt, wilhoshh;lll 11 be n su0icient warrant-. whereupon if the Bank so "rever rccasing:md agreeing to release the hank, from all errotit rs aany nd dor writ or orjudgmenl and in causing such writ or writs to be ol whatsoove er in dientering such action and Ilmrcby agrecin6t mt nowrit ol'crror orobjecton issued, and in any t rocce<ling dhereon on?on timing the ton/ insuch actionanen. madeHankeu smconehall on be beh made or I;rkall'ofBankcn settingf Ihcrcio, orththe providedfactsdhat the Dannecessaryk Inau $111111 thor haveize filed even try ofidence. such Judgmgmentt, according to the Ierms of this obligation, of which facts such affidavit shall be conclusive the And Borrower does hereby empower Attorney of an elsewhere, to appear for Borrower in any Court, any and with or without it declaration tiled, confess'ud •Igainst Borrower, Borrower's heirs and assigns, in favor of the said Hank, r its Li Ruccessorstorassigns, as ofa or liter the above principal sum, together with costs ol'suit, and mtorncy's commission ol'five per centu signs 5 as o f ny term on, on whichjudghuent, execution orexecutionsmuy issue forthwith, on failure to comply with any of tile conditions ofthis Note; hereby waivi ng inquisition and condemnation ofan ang term ion, and also waiving all exemption from levy and safe ml any under any Act of the Assembly, and with a release of all rs.y property levied upon by virtue of any such execu- Property that now is or that hereafter may be exempted there is more than one pa pa URTHER, AND PROVIDED and it is hereby and crn> thereby expressly covenanted find agreed That in tile event rty named herein as a Borrower, the singu shall be deemed and taken to mean the plural, lar wont, "Borrower", wherever Occurring herein, agr AND PRDVIDfiD rUR'I'lll'sR, that all cuven:uus. waivers, options, stipulations, promises, undertakings eements, and rights and benefits given lo , and obligations or liabilities imposed upon, each and all of said parties her shall inure to and bind thcmjointly andseverally and its, executors, administrators, successors and assigns his, her, and their, and eachoftheir, respective heirs, . WITNESS: D076Ty/NAXTON ASSOCIATES (SEAL) s P tner &(lndwid8a K• 11»CrCN as partner (SEAL) city r & Individ a11 (SEAL) Napacity -- (SEAL) PNC CAPITAL RECOVER" CORP. 4242 Carlisle Pike Camp Hill, PA 17011 E-mail: eric.krimmel@pncbank.com June 29, 1999 Darsey/Maxton Associates 322 West Green Street Shiremanstown, PA 17011 Eric D. Krimmel Assistant Vice President (717) 730.2492 Tel (717) 730.2373 Fax PNC Capital Recovery Corp, Mr. Dennis G. Dorsey Mrs. Glenda Kituniller Maxton Mrs. Jean O'Donnell Dorsey 413 W Street 322 West Green Street New Cumberland, PA 17070 Shiremanstown, PA 17011 In re: Commercial Loan Number 88-0255099 Dear Dorsey/Maxton Associates: Dear Mr. and Mrs. Dorsey: Dear Mrs. Maxton: In connection with your obligation to PNC Bank, National Association ('PNC") evidenced by a certain Promissory Note dated November 21, 1991 in the original amount of S 140,000, as subsequently modified, and Commercial Guaranties dated December 14, 1993, (hereinafter referred to as the "Loan Documents"), notice is hereby given that you are in default under the terms of the Loan Documents by virtue of your failure to payoff the above-referenced loan account when it matured on December 22, 1998. As a result of such default, all liabilities and obligations under the Loan Documents have been accelerated and demand is hereby made for immediate payment in full of all liabilities and obligations due to PNC. As of this date the amount due under the Loan Documents is as follows: Principal balance $106,489.19 Accrued and unpaid interest as of 06/29/99 189.29 Mortgage satisfaction fee 24.00 Total $106,702.48 Per Diem $23.66 Demand is hereby made for ifnmediate payment to PNC Bank, National Association of all sums due and owing under the Loan Documents, plus accrued interest and hereafter accruing, as set forth above, and any additional costs which may become due, from the date of this letter. Please be advised that unless payment in full is immediately delivered to PNC Bank, National Association at 4242 Carlisle Pike, Camp Hill, PA 17011, in the form of a cashiers check, certified check or money order, PNC shall take all action it deems appropriate to collect the above sums due and owing, preserve, protect and enforce its rights under the Loan Documents. Sincerely, PNC Capital Recovery Corp. Eric D. Krimmel Assistant Vice President Certified Mail Nos.: Z 077 330 622 Z 077 330 623 Z 077 330 624 cc: Regular Mail Geoffrey S. Shuff, Esquire Exhibit "B" 7177373407 SRIDIS SHUFF MRSLRZ 893 P02 JUN 30 '99 13:29 PNC BANK, NATIONAL ASSOCIATION, IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff NO. V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS : DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants CIVIL ACTION -LAW VERIFICATION 1, Eric Krimmel, Assistant Vice President, for PNC Bank, National Association, being authorized to do so on behalf of PNC Bank, National Association, hereby verify that the statements made in the foregoing pleading are true and correct to the best of my information, knowledge and belief 1 understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. PNC BANK, NATIONAL ASSOCIATION Date: ? JJO /9 S By: . /ice ?lC Eric Kritttmel Assistant Vice President Q LL - LL -y_ V o? G? cn CP i i. C 71 If) Q a { STATE OF PENNSYLVANIA, COUNTY OF CUMBERLAND SS. I, _________Robert_ P_Zie?ler ____ -------------------------- Recorder of Deeds in and for said County and State do hereby certify that the Sheriff's Deed in which Dennis G & Jean I Dorsey ------------------------------------------------------------------------------------is the grantee 8th the same having been sold to said grantee on the ______________________________________ day of December 99 ---------------------------------------- A. D., 19 --------- under and by virtue of a writ -------------- Execution issued on the12 --------------------------------------- Augu day of __ _ --------------- ---- ---- - - - A. D., 19_99 _ __, out of the Court of Common Pleas of said County as of ------------ Ciyil -------------------------------------------------------------- Tenn, 19_99- - Numbe{t269----------- atthesuit of...... PNC Bank _N_ A sbm CCNB Bank A -----------------------_N_ ----------------------- ----------------------------------- against- Jean 0 & Dennis G Dorsey Glenda K Maxton, n Dorsey/Mei[oti AssoaIWUi3 ------------------ duly recorded in Sheriffs Deed Book No._225-------- Page __470 ------- IN TESTIMONY WHEREOF, I have hereunto set my hand and seal of said office this ___ Z??day of -------- - -- - ---A.D., f9 2a v --------- ---------- -=----------- -- Record 'of Deeds rlisle My Commission Expires he First Mond,y of An. 2002 PNC Bank, National Association In the Court of Common Pleas of Successor by merger to CCNB, N.A. Cumberland County, Pennsylvania -vs- No. 99-4269 Civil Term Jean 0. Dorsey Dennis G. Dorsey and Glenda Maxton Co- Partners DB/A Dorsey/Maxton Associates Shannon M. Sunday, Deputy Sheriff, who being duly swom according to law, says on October 1,1 999 at 1:04 o'clock P.M. EDST, she posted a copy of Real Estate Writ Notice Poster and Description in the above entitled action upon the property of Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxton individually and as Co-partners D/B/A Dorsey Maxton Associates located at 320 Real Bridge Street, New Cumberland, Cumberland County, Pennsylvania according to law. Kenneth E. Gossert, Deputy Sheriff, who being duly sworn according to law, says on August 17, 199 at 7:55 o'clock P.M. EDST, he served true copy of Real Estate Writ Notice Poster and Description in the above entitled action upon one of the within named defendants to wit: Jean O. Dorsey by making known unto Jean Dorsey at 322 West Green Street, Shiremanstown, Cumberland County, Pennsylvania, its contents at the same time handing to her personally the said true and attested copies of the same. Kenneth E. Gossert, Deputy Sheriff, who being duly swom according to law, says on August 17, 1999 at 7:55 o'clock P.M.EDST, he served a true copy of Real Estate Writ Notice Poster and Description in the above entitled action upon one of the within named defendants to wit: Dennis G. Dorsey, by making known unto Jean Dorsey, wife at 322 West green Street, Shiremanstown Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and attested copies of the same. Brian Barrick, Deputy Sheriff, who being duly sworn according to law, says on August 19, 1999 at 5:09 o'clock P.M. EDST, he served a true copy of Real Estate Writ Notice Poster and Description in the above entitled action upon one of the within named defendants to wit: Glenda K. Maxton, by making known unto Glenda Maxton at 320 Rear Bridge Street, New Cumberland, Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and attested copies of the same. Brian Barrick, Deputy Sheriff, who being duly sworn according to law, says on August 19, 1999 at 5:09 o'clock P.M. EDST, he served true copy of Real Estate Writ Notice Poster and Description in the above entitled action upon one of the within named defendants to wit: Dorsey /Maxton Associates, by making known unto Glenda Maxton at 320 Rear Bridge Street, New Cumberland County, Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and attested copies of the same. Shawn Harrison, Deputy Sheriff who being duly sworn according to law, says on October 4, 1999 at 2:20 o'clock P.M. EDST, he served a copy of Real Estate Poster in the above entitled action upon the within named defendants to wit: Jean 0. Dorsey and Dennis G. Dorsey, by making known unto Dennis Dorsey for himself and Jean Dorsey at 322 West Green Street, Shiremanstown, Cumberland County, Pennsylvania, its contents and at the same time handing to him personally the said true and attested copies of the same. Shannon M. Sunday, Deputy Sheriff, who being duly sworn according to law, says on October 4, 1999 at 7:13 o'clock P.M. EDST, she served a copy of Real Estate Poster in the above entitled action upon one of the within named defendants to wit: Glenda Maxton, by making known unto John Maxton husband at 413 16°i Street, New Cumberland, Cumberland County, Pennsylvania, its contents and at the same time handing to him personally the said true and attested copies of the same. Kenneth E, Gossert, Deputy Sheriff, who being duly sworn according to law, says on October 11, 1999 at 1:50 o'clock P.M. EDST, he served a copy of Real Estate Poster in the above entitled action upon one of the within named defendants to wit: Dorsey/Maxton Associates by making known unto Glenda Maxton at 320 rear Bridge Street, New Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and attested copies of the same. R. Thomas Kline, Sheriff, who being duly sworn according to law, says he served the above Real Estate Writ Notice Poster attd Description in the following manner: The Sheriff mailed a notice of the pendency of the action to the within named defendants to wit: Jean O. Dorsey and Dennis G.Dorsey by first class mail to their last known address 322 West Green Street, Shiremanstown, Pennsylvania. This letter was mailed under the date of October 5, 1999 and never returned to the Sheriffs Office. R. Thomas Kline, Sheriff, who being duly sworn according to law, says he served the above Real Estate Writ Notice Poster and Description in the following manner: The Sheriff mailed a notice of the pendency of the action to one of the withinnamed defendants to wit: Glenda K.Maxton by first class mail to her last known address 413 10h Street, New Cumberland, Pennsylvania. This letter was mailed under the date of October 5, 1999 and never returned to the Sheriffs Office. R. Thomas Kline, Sheriff, who being duly sworn according to law, says he served the above Real Estate Writ Notice Poster and Description in the following manner: The Sheriff mailed a notice of the pendency of the action to one of the within named defendants to wit: Dorsey/Maxton Associates by first class mail to their last known address, 320 rear Bridge Street, New Cumberland, Pennsylvania. This letter was mailed under the date of October 5, 1999 and never returned to the Sheriffs Office. R. Thomas Kline, Sheriff, who being duly sworn according to law, says that after due and legal notice had been given according to law, exposed the within described premises at public venue or outcry at Court House, House, Carlisle, Cumberland County, Pennsylvania on December 8, 1999 at 10:00 o'clock A.M. EDST and sold the same for the sum of $ 211,000.000 to Dennis G. and Jean O. Dorsey. It being the highest bid and best price received for the same Dennis G. and Jean O. Dorsey of 322 West Green Street, Shiremanstown, Pennsylvania being the buyers in this execution paid to Sheriff R. Thomas Kline the sum of $ 222,222.36 it being sheriffs costs transfer taxes etc. Sheriffs Costs: Docketing 30.00 Poundage 4,220.00 Posting Bills 15.00 Advertising 15.00 Acknowledging Deed 30.00 Auctioneer 10.00 Law Library .50 County 1.00 Mileage Certified Mail Levy Surcharge Law Journal Patriot News Share of Bills Distribution of Proceeds Sheriff's Deed Sworn and Subscribed To Before Me 59.52 3.34 15.00 48.00 256.25 311.25 23.63 25.00 27.50 $ 5,090.99 Pd By Jean Dorsey 1/18/00 So answers: This jy !5' Day of? 2000, A.D. e2Q? Prothonotary R. Thomas Kline, Sheriff By 1 Real Estate Deputy 3a vo61? 1}v ck ?5i9y ?. 9J'99J Sale # 30 Schedule of Distribution Date filed January 6, 2000 Writ No. 99-4269 Civil PNC Bank, National Association Successor by merger to CCNB Bank, N.A. -vs- Jean O. Dorsey, Dennis G. Dorsey And Glenda K. Maxton, individually And as Co-Partners DB/A Dorsey Maxton Associates 320 Rear Bridge Street New Cumberland, PA Sale Date December 8, 1999 Bid Price Buyer: Jean O Dorsey $ 211,000.00 Real Debt Interest 6/29/99 at $ 23.66 per day Atty Writ Costs Total Collected DISTRIBUTION Sheriffs Costs Legal Search Transfer Taxes Local Transfer Taxes State Credit Writ No. 99-4269 Civil with Credit Lien file No.98-6834 with Refund to defendants Refund to attorney advance costs $ 112,026.94 3,832.92 32.00 $ 115,891.86 $ 222,222.36 $ 5,090.99 200.00 3,401.18 3,401.18 115,891.86 3,324.07 90.913 fDJ?-.21 $ 000,000.00 1,000.00 So ? R. Thomas Kline. Sheriff By Real Estate Deputy TITLE REPORT THE PREMISES ENDORSED HEREON ARE SUBJECT TO THE FOLLOWING ITEMS, WHICH WILL BE EXCEPTED IN THE POLICY UNLESS SATISFACTORY EVIDENCE PERMITTING THEIR REMOVAL IS PRODUCED. SHERIFF SALE NO. 30 Held Wednesday, December 8, 1999 Date: December 14, 1999 TAXES: Receipts for all taxes for the years 1996 to 1998 inclusive. Taxes for the current year 1999. WATER RENT: Company assumes no liability for private supply of water or sewer. SEWER RENT Receipts to be produced if services are lienable. MECHANICS' AND Possible unfiled Mechanics Liens and Municipal Claims. MUNICIPAL CLAIMS MORTGAGES: Listed Under Other Exceptions Below. JUDGMENTS: Listed Under Other Exceptions Below. INSTRUMENTS TO BE PRODUCED: Deed from Cumberland County Sheriff to dated , and recorded in Cumberland County Deed Book Page RECITAL: Being the same premises which CCNB Bank, N. A. by Deed dated November 20, 1991 and recorded November 22, 1991 in the Office of the Recorder of Deeds in and for Cumberland County at Carlisle, Pennsylvania in Deed Book "W', Volume 35, Page 202 granted and conveyed to Dorsey/Maxton Associates. OTHER EXCEPTIONS: The identity and legal competency of parties at the closing of this title should be established to the satisfaction of the closing attorney acting for this Company. Rights or claims of parties in possession, if any, other than the owner. Unrecorded easements, discrepancies or conflicts in boundary lines, shortage in area and encroachments which an accurate and complete survey would disclose. 4. Payment of State and local Real Estate Transfer Taxes, if required. Public and private rights in the roadbeds of Locust Avenue, Ruby Avenue, Cedar Alley and River Avenue. Conditions, easements and restrictions as shown on or set forth on the Plan for George Buttorff's addition to New Cumberland recorded in Cumberland Deed Book "N", Volume 5, Page 500. 7. Mortgage in the amount of $140,000.00 given by Dorsey/Maxton Associates, a Pennsylvania Partnership, to CCNB Bank N.A. dated November 21, 1991 and recorded in Mortgage Book 1036, Page 620. Assigned to Land Holding, Inc. by assignment of mortgage dated November 24, 1999 and recorded December 1, 1999 in Miscellaneous Record Book 632, Page 41. Confession of Judgment and Complaint filed by Land Holding, Inc. as Plaintiff against Jean O. Dorsey, Dennis G. Dorsey, Glenda K. Maxton, and Dorsey/Maxton Associates on July 14, 1999 in the Office of the Prothonotary of Cumberland County to File No. 99-4269. 8. Certified copy of lien filed by the Bureau of Compliance as Plaintiff against Glenda Maxton in the Office of the Prothonotary of Cumberland County to File No. 98-6834 in the amount of $6,522.49. 9. Satisfactory evidence to be produced that proper notice was given to the holders of all liens and encumbrances intended to be divested by subject Sheriffs Sale. 10. Satisfactory evidence to be produced that the advertisement of the property for sale is satisfactory in spite of the absence of any reference to the improvements on the subject property, 11. Real estate taxes accruing on and after January 1, 2000, not yet due and payable. 12. Names of all the members of the Partnership known as Dorsey/Maxton Associates to be furnished. Possible additional exceptions for each partner. It is to be noted that no search of Domestic Relations Records has been made to determine support arrearages regarding House Bill 1412, Act 58 of 1997, nor has any search been made for environmental liens in Federal District Court. Robert G. Frey, Agent -T- Note: This Title Report shall not be valid or t until countersigned by an authorized signatory. REAL ESTATE SALE NO. 30 Wilt No. 99-4269 Civil PNC Bank. Natlonal Association. Successor By Merger To CCNB Bank, N.A., Vs. Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxton. Individually And As Co-Partners, D/B/A Dorsey/Maxton Associates Atty.: Karl M. Ledebohm ALL T19AT CERTAIN lot or piece of ground, lying and situate in the Bor- ough of New Cumberland, County of Cumberland. and Commonwealth of Pennsylvania, more particularly de- scribed as follows: TRACT NO. 1: BEGINNING at a point on the Southwest corner of Lo. cust Avenue and Ruby Avenue: thence Westwardly along Ruby Ave- nue, one hundred fifteen (115( feel, more or less, to Cedar Alley: thence Southwardly one hundred forty-seven (147) feet, more or less, to River Ave- nue: thence Eashvardly along River Avenue, one hundred fifteen (115) feet, more or less, to Locust Alley, thence Northwardly along said Lo- cust Alley one hundred forty-seven (147) feet, more or less, to Ruby Ave- nue, the place Of BEGINNING. BEING Lots Nos. 29 to 34 Inclu. sive, Block "K", in the General Plan of George W. Buttorfrs Addition to New Cumberland, as recorded in the Cumberland County Recorder's Or. flee in Deed Book "N", Volume 5, Page 500. P.EAl=SIAI__ALct?1O 30 51,000.DDAdti'ance1_-ostsPaid 8/16/99 rn Karl Ledebohm Assessed Valuation S 22450.00 «RLt IN 0• 99-4269 Civil PNC Bank, National Association, Successor by merger to CCNB Bank N.A VS Jean 0. Dorsey, Dennis G. Dorsey and Glenda K. Maxton individually and as Cp Partners D/B/A Dorsey Maxton Associates • 32.0 Real .Bridge Street, New Cumberland,Pa. REAL. DEBT $ 112,026.94 INTEREST 6/29/99 @ 23.66 per day 3,832.92 .°.r'S FEES «IW COSTS?.TT1' ESCROW 32.00 LATE CHARGE SHERIFF'S COSTS Docketing 30.00 Poundal- 4,220.00 Posing Bills 15.00 Adtie^isiaLy 15. Acknowledging Dee_ 30.00 Aucuoretr 10.00 Law r ibrar• .50 Counr: 1.00 ,vIilea^- 59.52 Cen Mail 3.34 Le 15.00 Postpone Sale Surcharge 48.00 Legal Seat-cb 200.00 L_•.c Journal 256.25 Patriot 311.25 Share of Sills 23.63 Distribution of Procee_s 25.00 See;;:; s Dee:_ 27.50 ST.-MPS Pa Transfer T.IX Twp or 3oro Trarsf_: T,, TA X'ES Sewer 354.79 PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 STATE OF PENNSYLVANIA COUNTY OF CUMBERLAND : SS. Roger M. Morgenthal, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, NOVEMBER 5, 1999 Affiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. REAL ESTATE BALE NO. 90 Writ No. 99-4269 Civil PNC Bank, National Association, Successor By Merger To CCNB Bank. N.A.. vs. Jean O. Dorsey. Dennis G. Dorsey and Glenda K. M=ton. Individually And As Co-Partners, D/B/A Dorsey/Ma ton Associates Atty.: Karl M. Ledebohm ALLTHATCERTAIN lot or piece of ground, lying and situate In the Bor- ough of New Cumberland, County of Cumberland. and Commonwealth of Pennsylvania, more particularly de- scribed as follows: TRACT NO. 1: BEGINNING at a point on the Southwest corner of Lo- cust Avenue and Ruby Avenue; =?4 L- Roge . Morgenthal, Editor SWORN TO AND SUBSCRIBED before me this 5 day of NOVEMBER. 1999 NUFAR1ALSEAL " LOIS E. SNYDER, Nolary Public Carlisle Bom, Cumbedor,d County, PA Aty Commhsim Expires Moreh S, 2001 PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 STATE OF PENNSYLVANIA : ss. COUNTY OF CUMBERLAND : Roger M. Morgenthal, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, 1999 Afflant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. REAL ESTATE aALE NO. 30 Writ No. 99-4269 Civil PNC Bank. National Association, Successor By Merger To CCNB Bank, N.A.. V3. Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxlon. Individually And As Co-Partners, D/B/A Dorsey/Maxton Associates Atty.: Karl M. Ledeboltm ALLTHAT CERTAIN lot or piece of ground, lying and situate In the Bor- ough of New Cumberland, County of j Cumberland, and Commonwealth of Pennsylvania. more particularly de- scribed as follows: TRACT NO. 1: BEGINNING at a point on the Southwest corner of Lo. ! cusl Avenue and Ruby Avenue; thence Westwardly along Ruby Ave- nue, one hundred fifteen (115) feel, more or less, to Cedar Alley; thence Southwardly one hundred forty-seven I; (147) feet, more or less, to River Ave- nue: thence Eastwardly along River Avenue, one hundred fifteen (115) feet, more or less, to Locust Alley. thence Norlhwardly along said Lo- cust Alley one hundred forty-seven (147) feet, more or less, to Ruby Ave- nue, the place of BEGINNING. BEING Lots Nos. 29 to 34 inclu. sive, Block "K", in the General Plan of George W. Butlorffs Addition to New Cumberland, as recorded in the Cumberland County Recorder's of. fice in Deed Book "N", Volume 5, Page 500. HAVING THEREON ERECTED a storage shed, a one-story brick office building, a one-story cinder block building, a one-story stucco block building, and other improvements. Known and numbered as 320 Rear Bridge Street, New Cumberland, PA 17070. BEING the same premises which CCNB Bank, N.A., Executor of the Estate of Clarence G. Kaznrlller, by Its iced dated November 20. 1991. and recorded in the office of the Re- corder of Deeds in and for Cuutber- land County, Pennsylvania, on No- vember22, 1991, in Book K-35, Page 202, granted and conveyed unto Dorsey Maxlon Associates. _??72 Z RogeyM. Morgenthal, Editor SWORN TO AND SUBSCRIBED before me this --L -day of NOVEMBER, 1999 NOTARIAL SEAL V LOTS E. SNYDER, Notary public Corti" Eora, Cumbrrdond County. PA My Commission Enpir?s Morch 3, 2001 F Er Lt THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Bet No. 587, Bonroued May 16. 1929 Commonwealth of Pennsylvania, County of Dauphin) as Michael Morrow being duly sworn according to law, deposes and says: That he is the Assistant Controller of THE PATRIOT-NEWS CO., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 812 to 618 Market Street, in the City of Harrisburg, County of Dauphin, State of Pennsylvania, owner and publisher of THE PATRIOT-NEWS and THE SUNDAY PATRIOT-NEWS newspapers of general circulation, printed and published at 812 to 818 Market Street, in the City, County and State aforesaid; that THE PATRIOT-NEWS and THE SUNDAY PATRIOT-NEWS were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday and Metro editions/issues which appeared on the 26th day of October and the 2nd and 9th day(s) of November 1999. That neither he nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That he has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot-News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of D 'phin in,Miscellaneous Book "M", Volume 14, Page 317. PUBLICATION ?I COPY SALE N30 30 Member, i'annsy,vau:a Association of Noia!RS My commission expires June 6, 2002 CUMBERLAND COUNTY SHERIFFS OFFICE COURTHOUSE CARLISLE, PA. 17013 County of I a Rena to to and suhWfu before th 18th td Q ve lfe 9 A.D. Tony L. Russell, Notary Public U Hamsburg, Dauphin County My Crnnmisslon [xohos JUnr. G. NOTA PUBLIC mane, more a at a point on GW Avenue westwardly 4w Bhsen' Cedar Aft ndred % to h slap Rher M11 1Urer oe t Alley one t, more or Waco of m Statement of Advertising Costs 3+?"I To THE PATRIOT-NEWS CO., Dr. For publishing the notice or publication attached hereto on the above stated dates $ 309.75 Probating same Notary Fee(s) $ 1.50 Total $ 311.25 O of aer's Receipt for Advertising Cost of THE PATRIOT-NEWS and THE SUNDAY PATRIOT-NEWS, newspapers of general eipt of the aforesaid notice and publication costs and certifies that the same have THE PATRIOT-NEWS CO. By ............................................. , Sylvania, on I K-35, Papa unto Donm PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. NO. 99-4269 CIVIL JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW NOTICE OF SHERIFF'S SALE OF REAL ESTATE PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129 TAKE NOTICE: That the Sheriffs Sale of Real Property (real estate) will be held: DATE: December 8, 1999 TIME: 10:00 a.m. LOCATION- Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 THE PROPERTY TO BE SOLD is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) THE LOCATION of your property to be sold is: one tract of land situate in the Borough of New Cumberland, County of Cumberland and Commonwealth of Pennsylvania, known and numbered as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. THE JUDGMENT under or pursuant to which your property is being sold is docketed in the within Commonwealth and County to: PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A. v. Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Marton, Individually and as Co-Partners d/b/a Dorsey Manton Associates. No. 99-4269 Civil, in the amount of One Hundred Twelve Thousand Twenty-Six and 94/100 Dollars ($112,026.94) plus interest from and including the date of the Complaint and judgment entered thereon at the rate of Twenty-Three and 66/100 Dollars ($23.66) per day, and costs of suit and for foreclosure of the mortgrged premises until the Sheriff Sale. THE NAMES OF THE OWNERS OR REPUTED OWNERS of this property are: Dorsey Maxton Associates. A SCHEDULE DISTRIBUTION, being a list of the persons and/or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and municipalities that are owed taxes) will be filed by the Sheriff of this County thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the Schedule of Distribution may be obtained from the Sheriff of the Court of Common Pleas of the within County at the Courthouse address specified herein. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. IT HAS BEEN ISSUED BECAUSE THERE IS A JUDGMENT AGAINST YOU. IT MAY CAUSE YOUR PROPERTY TO BE HELD TO BE SOLD OR TAKEN TO PAY THE JUDGMENT. You may have legal rights to prevent your property from being taken away. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, YOU MUST ACT PROMPTLY. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of the within County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or the procedure used against you. 2. After the Sheriffs Sale, you may file a petition with the Court of Common Pleas of the within County to set aside the sale for a grossly inadequate price or for other proper cause. This petition MUST BE FILED BEFORE THE SHERIFF'S DEED IS DELIVERED. 3. A petition or petitions raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of the within County. The petition must be served on the attorney for the creditor or on the creditor before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office - Civil Division, of the within County Courthouse, before a presentation to the Court. A copy of the Writ of Execution is attached hereto. Respectfully submitted, SAIDIS, SHUYF & MASLAND Date: By: N '044 1 K 1 M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff ALL THAT CERTAIN lot or piece of ground, lying and situate in the Borough of New Cumberland, County of Cumberland, and Commonwealth of Pennsylvania, more particularly described as follows: TRACT NO. 1: BEGINNING at a point on the Southwest comer of Locust Avenue and Ruby Avenue; thence Westwardly along Ruby Avenue, one hundred fifteen (115) feet, more or less, to Cedar Alley; thence Southwardly one hundred forty-seven (147) feet, more or less, to River Avenue; thence Eastwardly along River Avenue, one hundred fifteen (115) feet, more or less, to Locust Alley, thence Northwardly along said Locust Alley one hundred forty-seven (147) feet, more or less, to Ruby Avenue, the place of BEGINNING. BEING Lots Nos. 29 to 34 inclusive, Block "K", in the General Plan of George W. Buttorff s Addition to New Cumberland, as recorded in the Cumberland County Recorder's Office in Deed Book "N", Volume 5, Page 500. HAVING THEREON ERECTED a storage shed, a one-story brick office building, a one-story cinder block building, a one-story stucco block building, and other improvements. Known and numbered as 320 Rear Bridge Street, New Cumberland, PA 17070. BEING the same premises which CCNB Bank, N.A., Executor of the Estate of Clarence G. Kitzmiller, by its deed dated November 20, 1991, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, on November 22, 1991, in Book K-35, Page 202, granted and conveyed unto Dorsey Maxton Associates. PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW AFFIDAVIT PURSUANT TO RULE 3129.1 PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., Plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution was filed the following information concerning the real properly consisting of all that certain lot or piece of ground, lying and situate in the Borough of New Cumberland, County of Cumberland, and Commonwealth of Pennsylvania more particularly known as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. 1. Name and address of owners or reputed owners: Dorsey/Maxton Associates Dorsey/Maxton Associates 320 Rear Bridge Street and 322 West Green Street New Cumberland, PA 17070 Shiremanstown, PA 17011-6521 2. Name and address of defendants in the judgment: Jean O. Dorsey and Dennis G. Dorsey 322 West Green Street Shiremanstown, PA 17011-6521 Glenda K. Maxton 413 16th Street New Cumberland, PA 17070-1318 Dorsey/Maxton Associates 320 Rear Bridge Street New Cumberland, PA 17070 Dorsey/Maxton Associates and 322 West Green Street Shiremanstown, PA 17011-6521 3. Name and address of everyjudgment creditor (other than the Plaintiff herein) whose judgment is a record lien on the real property to be sold: None Tenant/Occupant Apartment 102 Tenant/Occupant 320 Rear Bridge Street Apartment 104 New Cumberland, PA 17070 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Tenant/Occupant Apartment 106 320 Rear Bridgc Sti eet Apartment 108 New Cumberland, PA 17070 320 Ne Rear Bridge Street New Cumberland, PA 17070 1, Karl M. Ledebohm, Esquire, attorney for the Plaintiff, PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., verify that the statements made in this affidavit are true and correct to the best of my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. section 4904 relating to unswom falsification to authorities. Respectfully submitted SAIDIS, SHUE & MASLAND Date: ?`( By: (wi, % JC7 ?- ( /{arl M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff 4. Name and address of the last recorded holder (other than the Plaintiff herein) of every mortgage of record: None 5. Name and address of every other person who has any record lien on the property: None 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: None 7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Cumberland County Tax Claim Bureau New Insights Inc. Cumberland County Courthouse , Suite 96/98 One Courthouse Square 320 Rear Bridge Street Carlisle, PA 17013 New Cumberland, PA 17070 John E. Perry, Esquire Betsy Kahley and M. George Marburger Suite 200 Apartment 204 320 Rear Bridge Street 320 Rear Bridge Street New Cumberland, PA 17070 New Cumberland, PA 17070 Jean Jacobs Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 H.B. Zane Apartment 106 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 204 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 208 320 Rear Bridge Street New Cumberland, PA 17070 Binder Construction Apartment 108 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 202 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 206 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) NO 99-4269 CIVIL 19 COUNTY OF CUMBERLAND) CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due PNC Bank, National Association, successor by merger to CCNB Bank, N.A. PLAINTIFF(S) from Jean 0. & Dennis G. Dorsey, individually and as Co-Partners d/b/a Dorsey/ Maxton Associates, 320 Rear, Bridge St., New Cumberland PA 17070 and 322 W. Green St., Shiremanstown PA 17011-6521 and Glenda K. Maxton, 413 16th St. `vcw r _ 'DEFENDANT(S) (1) You are directed to levy upon the property of the defendant(s) and to sell ]Real estate t ocared at 320 Rear Bridge St., New Cumberland PA 17070. (See attached legal (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of as follows: and to notify the gamishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is/are enjoined from paying any debt to or for the account of the defendant(s) and from delivering any property of the defendant(s) or otherwise disposing thereof; (3) Itproperlyof the defendant(s) not leviedupon an subject to attachment is found inthe possession of anyonecither than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $112,026.94 LL $.50 Interest fmm 6/29/99@ $23.66 per day _ Due Prothy. Atty's Comm Atty Paid _ Plaintiff Paid Date: $32.00 August 12, 1999 REQUESTING PARTY: Name Karl M. Ledebohm, Esquire Address: 21089 Market St. Attorney for: Telephone: Camp Hill PA 17011 Plaintiff _ (717) 761-1881 Other Costs $1.00 CURTIS R. LONG Proth ofary? Civil Division by: u r? V J Deputy Supreme Court ID No. 59011 MKON REA1_ 707TE ?A E Na 3 c= L On 6?w-?` ??? 9 S 9 the sheriff levied upon the defendants interest in the real property situated in,dlu., "- Cumberland County, Pa., known 3n.1 numbered as: 3a° ,?./ 'IV..?.?? nd inure ful desc,ibe d on Exhibit "A" filed with this writ and by this reference incorporated herein. (Tate: l?_?a=? i P99 By: YINv?I?SNN38 V -) 661 Nd ZT £ EI'IV A:1. Mao 1AWBHS 3H1AO 311dlo DEC .3 0 199 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this ___ day of upon consideration of the allegations in the Petition ol'Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that a hearing is scheduled for the day of _ , 2000, in Courtroom No. at _M. to address the issues in the Petition and Answer thereto. Petitioner Glenda Maxton shall place a bond with the Court in the amount of $4,495.80 for payment of the monthly mortgage while the petition is pending for compensation of lost income of the subject property pending disposition. BY THE COURT, Distribution: Craig A. Dichl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M, Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Sheriff's Sale of Real Estate as follows: 1 - 6. Admitted. ANSWER TO I. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriff's Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation assumes a fully leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22, 1999, are attached hereto as Exhibit A.) The $145,000.00 number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. By way of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband John Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $137,500.00 to settle all issues before Sheriff's Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have )btained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written offer by the third party, the third party did not have a financing commitment, the offer required hat an additional appraisal be made and that Glenda Maxton receive payoff of her perceived artnership value through a complicated note from the third party, none of which were certain. WHEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriffs Sale, or such other relief as the Court deems just and appropriate. ANSWER TO II. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS JEAN O. DORSEY AND DENNIS G DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stem from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payment of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda Maxton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. By way of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriff's Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters had nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to put forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The cash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maxton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriff's Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriffs Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriffs Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at $657,000.00 sold at Sheriffs Sale for $365,000.00 (56% of value), Dalessio v. Dalessio 429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5% of value) J.B. Van Sciver Co. V. Smith 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. By way of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have gone through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriffs Sale. The last offer of settlement was a negotiated value before the property went to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had financing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication of a fair price at the sale. WHEREFORE, and because the Respondents have gone through the expense of sale, and have the obligation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for filing a baseless petition, or in the alternative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of $ 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, ' is ael S. Travis ID No 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 Date: ZZI-5 (717)731-9502 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP MILL, PA 17011 TELEPHONE 1717) 731.9502 FAX (717) 731.9511 October 25, 1999 VIA FACSIA ILE AT 770-2553 AND US MAIL Robert P. Kline, Esquire 331 Bridge Street, Suite 350 P.O. Box 461 New Cumberland, PA 17070-0461 RE: Dorsey/A4axton Associates, Offer of Settlement Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of $107,000.00 as settlement has been rejected by my, clients. The Dorsey's counteroffer for a cash settlement is $145,000.00. The following is a list of problems with the settlement terms, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxton Associates will pay for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. It is also not agreeable that there be a future adjustment for expenses in the partnership checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would also be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. Ifa deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriffs Sale date will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it was clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. EXHIBIT A Robert P. Kline, Esquire October 25, 1999 Page 2 We welcome any further discussions regarding settlement. Very truly yours, Michael S. Travis MST/lun Distribution: James M. Bach, Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) ROBERT PETER IFLLU 1E Attorney & Counsellor at Law 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, Pennsylvania 17070-0461 (717) 770.2540 tax (717) 770-2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSIMILE AND FIRST CLASS MAIL D Re: Dorsey/Maxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of 5107,000.00 as full satisfaction for: (a) your clients' interest in the partnership: (b) any claims against the partnership, my client, her husband, New Insights, Inc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 50% of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that any tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the event your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach of the oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that I had just received in my office and forwarded to her, for any Dorsey/Maxton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriff s sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the sale of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, I have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concerns with the expenditure of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. I ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. my yours, ROBERT PETER KLINE, ESQUIRE RPK/srf cc: Glenda K. Maxton Gregory J. Katshir, Esquire PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank)' James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) Dated: Bv' iel . raves ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION -LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unswom falsification to authorities. C? DATED: DATED: /? FEB 1 0 20001W PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER AND NOW, this day of 2000, upon consideration of Respondent/Defendant(s), Dennis and Jean Dorsey's motion for judgment on the pleadings, the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondent(s) Answers and Responses thereto, it is hereby Ordered and Decreed that the Petition is Denied; and that judgment is entered in favor of Respondent/Defendant Dennis and Jean Dorsey, and against Petitioner Glenda Maxton. By the Court: Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. J. James M. Bach, Esquire, for the partnership Edward L.Schorpp, Esquire, for the Sheriff Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants DEFENDANTS JEAN O. DORSEY AND DENNIS G. DORSEY'S MOTION FOR JUDGMENT ON THE PLEADINGS OF PETITION TO SET ASIDE SHERIFF'S SALE PURSUANT TO PA RCP 206.7 Defendants, Jean O. Dorsey and Dennis G. Dorsey, by their undersigned counsel, respectfully move this Court, pursuant to Pa. R.C.P. Nos. 206.7 and 1034 forjudgment on the pleadings as follows: 1. Petitioner Glenda Maxton commenced this action against defendants, Jean O. Dorsey and Dennis G. Dorsey, husband and wife (hereinafter "Dorseys"), on December 17, 1999, seeking to set aside Sheriffs Sale of Real Estate on December 8, 1999, a true and correct copy of which is attached hereto as Exhibit "A." 2. On December 29, 1999, The Honorable J. Wesley Oler, Jr., issued a Rule upon any party interest to show cause why the relief requested should not be granted. 3. On December 30, 1999, the Dorseys filed an Answer to the Petition to Set Aside Sheriffs Sale of Real Estate, a true and correct copy of which is attached hereto as Exhibit "B." 4. On January 6, 2000, R. Thomas Kline, Sheriff of Cumberland County, filed a Response to the Petition to Set Aside Sale of Real Estate, a true and correct copy of which is attached hereto as Exhibit "C." 5. On January 2, 2000, a Schedule of Distribution was issued by the Sheriff's office, ng to Rule 3136. 6. On or about January 14, a response of PNC Bank to the Petition to Set Aside the s Sale with New Matter was received by the Dorseys, a true and correct copy of which is hereto as Exhibit "D." 7. On February 2, 2000, Petitioner did file a response to PNC's New Matter. 8. Paragraph Six of the Petition, admits that the Dorseys were the successful bidder at the for the sum of $211,000.00. 9. Petitioner has failed to state a cause of action that the Sheriffs Sale should be set aside gross inadequacy of price. 10. Petitioner has failed to demonstrate oppressive conduct and bad faith on the part of the 11. The pleadings are closed and time exists within which to dispose of this motion so as to delay trial. 12. There are no genuine issues of material fact to be tried. 13. James M. Bach, Esquire, counsel for the partnership concurs that the matter may be on the pleadings. 14. Karl M. Ledebohm, Esquire, counsel for PNC bank, does not concur that the matter be determined on the pleadings, as he objects to PNC's involvement as a party. 15. Edward L. Shorpp, Esquire, counsel for the Sheriff's Office, does not concur that the .r may be heard on the pleadings, as he objects to the Sheriff s involvement as a party. 16. Craig A. Deihl, Esquire, counsel for Glenda Maxton, does not concur that the matter be heard on the pleadings. 17. Defendant/Respondent(s), Jean and Dennis Dorsey are entitled to judgment as a matter law on the pleadings. WHEREFORE, defendants/respondents, Jean and Dennis Dorsey, respectfully request that this Court enter a judgement in their favor, granting the relief requested in their answer to the petition and dismiss the petition of Glenda Maxton. is ael Attorney for DefendantiRespondent Dennis and Jean Dorsey ID No. 77399 4076 Market Street Suite 209 Camp Hill, PA 17011 I PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/9IAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION - LAW PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE AND NOW COMES Petitioner, Glenda K. Maxton, individually, respectfully petitioning this Court to set aside the sheriff's sale of real estate situate and known as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070 for the following reasons: Petitioner, Glenda K. Maxton, (hereinafter "Marton") is an adult individual residing at 413 16th Street, New Cumberland, Pennsylvania 17070-1318. 2. Defendants, Jean O. Dorsey and Dennis G. Dorsey, (hereinafter "Dorseys") are adult individuals residing at 322 West Green Street, Shiremanstown, Pennsylvania 17011-6521. 3. Defendant, DorseyMaxton Associates, is a Pennsylvania general partnership with a business address at 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. 4. premises. Defendant, Dorsey/Maxton Associates, is the legal fee simple owner of the subject EXHIBIT 5. Plaintiff, PNC Bank, N.A., pursuant to a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, foreclosed on the subject premises by having the subject property exposed at a Sheriffs Sale on December 8, 1999. 6. Defendants, Jean O. Dorsey and Dennis G. Dorsey, were the successful bidder at the sale for a sum of $211,000.00. 1. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Maxton avers that the fair market value of the property is in excess of $330,000.00. 8. Defendant, Jean O. Dorsey, had the property appraised in September, 1998 which set forth an appraised value of $332,000.00. 9. A week before the scheduled Sheriff Sale, the Dorseys demanded a buy-out of $145,000.00 from Maxton for their 50% partnership interest in the subject property which included unrelated, disputed amounts of $45,000.00 that pertain to other litigation set forth hereinafter. This net demand for approximately $100,000.00 creates a presumption that they believe the fair market value of the property to be approximately $320,000.00. 10. A day before the Sheriff Sale, the Dorset's orally agreed to accept $137,500.00 from Maxton with a last minute condition that the money be paid within twenty-four (24) hours. IL Maxton had secured financing to pay off PNC Bank, N.A. and the Dorseys but could not settle within this time frame and prior to the scheduled Sheriff Sale. 2 12. Maxton had previously received a bona fide written offer from a third party to purchase the property for S350,000.00. 1VHEREFORE, Petitioner, Glenda K. Maxton, respectfully requests that this Court set aside the sheriffs sale for gross inadequacy of the sale price, order a resale of the property, or award such other reasonable relief as it deems appropriate. It. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS JEAN O. DORSEY AND DE\NIS G DORSEY 13. The individual Defendants were partners in a partnership known as Dorsey/Niaxton Associates. 14. The respective parties have been embroiled in some lengthy disputes which have resulted in three (3) separate civil lawsuits being docketed at 99-3179, 99-4983, and 99-4984. 15. Notwithstanding the noted litigation, counsel for the Dorseys led Maxton to believe that the Dorseys truly wanted Maxton to have the property as set forth in correspondence dated December 1, 1999. Said letter caused Maxton to detrimentally rely or believe that negotiations would be successful prior to the actual sale date. 16. However, the Dorseys, prior to the Sheriff's Sale, demanded a buy-out price of $145,000.00 which included $45,000.00 of disputed amounts that was the crux of the aforementioned lawsuits. By demanding that the disputed amounts be paid to avoid a sheriff's sale, said negotiations raise a presumption of oppressive and bad faith dealing that exploited 3 Maxton's financial condition, jeopardized Maxton's husband's place of business, and jeopardized his source to make a living that resulted in unfairness to Maxton. IT Furthermore, the Dorseys' last minute condition of requiring cash within one day after dropping their accepted buy-out figure to $137,500.00 further creates a presumption of oppressiveness and bad faith dealing. 18. The gross discrepancy between the actual value of the property and the sum paid by the Dorset's raises a presumption of bad faith dealings. 19. Maxton is ready, willing, and able to tender to the Dorseys and PNC Bank, N.A., the sum paid by the Dorseys at the execution sale, plus interest, or in the alternative, the fair market value of the property as determined by this Court. WHEREFORE, Petitioner respectfully requests that this Court for proper cause set aside the Sheriff's Sale for oppressive and bad faith conduct by the successful bidders prior to the sale, order a resale of the property, or require Maxton to pay the successful bidders based on the fair market value of the property, or order such further relief as this Court in its broad discretion believes is just and equitable. Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Dated: December 16, 1999 By: 0".wQ. h,ut Craig A. Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Attorney for Petitioner, Glenda K. Maxton 4 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. AIAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY111IAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION -LAW CERTIFICATE OF SERVICE I hereby certify that 1 have on this date served the Petition to Set Aside Sheriffs Sale of Real Estate on the person and in the manner directed below, which satisfies the requirements of Pa.R.C.P. 440. Service by first class, postage paid, United states mail addressed as follows: Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Camp Hill, PA 17011 (Attorney for PA'C Bank, N.A.) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Jean O. Dorsey and Dennis G. Dorsey) Sen•ice by hand delivery as follows: Cumberland County Sheriff Cumberland County Courthouse 3 South Hanover Street Carlisle, PA 17013 Date: December 17, 1999 LAW OFFICES OF CRAIG A. DIEHL By: ?- Helen E. Rasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 994269 CIVIL : CIVIL ACTION - LAW ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Shcriffs Sale of Real Estate as follows: I - 6. Admitted. ANSWER TO 1. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriffs Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation assumes a full)' leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22,1999, are attached hereto as Exhibit A.) The $145,000.uv EXHIBIT E number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. By way of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband John Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted 5137,500.00 to settle all issues before Sheriffs Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have obtained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written offer by the third party, the third party did not have a financing commitment, the offer required that an additional appraisal be made and that Glenda Maxton receive payoff of her perceived partnership value through a complicated note from the third party, none ofw•hich were certain. Vl'IEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriffs Sale, or such other relief as the Court deems just and appropriate. ANSWER TO 19. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFEl?DANTS JEAN O. DORSEY AND DENINIS G. DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stem from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payrnent of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda Maxton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. Byway of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriffs Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters had nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to put forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The cash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maaton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriff's Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriffs Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriff s Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at 5657,000.00 sold at Sheriff s Sale for $365,000.00 (56% of value), Dalessio v. Dalessio 429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5110 of value) J.B. Van Sciver Co. v. Smith. 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. Byway of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have gone through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriff's Sale. The last offer of ettlement was a negotiated value before the property tivent to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had financing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication ofa fair price at the sale. NNT EREFORE, and because the Respondents have gone through the expense of sale, and have the obligation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for filing a baseless petition, or in the ahemative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of S 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, Iic aID No 77399 4076 Market Street, Suite 209 Cam Date: 3.? (717)731-9502 17011 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS Arrop NEY AT Liw 4076 MARKET STREET. SVITC too CAMP WILL, PA 17011 TELEPHONE 47171731-6502 FAX MM 731.9511 October 25, 1999 VIA FACSDvME AT 770-2553 AND US MAIL Robert P. Kline, Esquire 331 Bridge Street, Suite 350 P.O. Box 461 New Cumberland, PA 17070-0461 RE: Dorsey/Alazton Associates, Offer of Settlement Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of 5107,000.00 as settlement has been rejected by my clients. The Dorsey's counteroffer for a cash settlement is 514:,000.00. The following is a list of problems with the settlement temts, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxion Associates wtill pal for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. ]t is also not agreeable that there be a future adjustment for expenses in the partnership checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would also be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. If a deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriffs Sale date Will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it was clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. EAXHIBIT A D Robert?. Kline, Esquire October 25, 1999 Page 2 We welcome any further discussions regarding settlement. Very truly yours, ASichael S. Travis ]ASTIm Distribution: James M. Bach; Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) ROBERT PETER IffLI 'E Attorney & Counsellor at Lew 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, Pennsylvania 17070.0461 (717) 770.2540 fax (717) 770-2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSIIv13LE AND FIRST CLASS MAIL aURB Re: Dorsey.'Maxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of 5107,000.00 as full satisfaction for: (a) your clients' interest in the partnership; (b) any claims against the partnership, my client, her husband, New Insights. hrc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 50% of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that any tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the even! your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach of the oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that 1 had just received in my office and forwarded to her, for any Dorsey ,Marton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. r Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriffs sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the safe of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, I have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concemb with the expendihse of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. I ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. h' yours, 7Z2 qDl?l ROBERT PETER KLINE, ESQUIRE RPK!srf cc: Glenda K. Maxton Gregory J. Katshr, Esquire PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUIIIBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CINIIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attomey for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SNUFF R MASLAND 2109 Market Street Post Office Boa 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank)' James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) Dated: ,? ? Bps 'mss rays ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : W THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 994269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unswom falsification to authorities. DATED:4=?2: 2 DATED: I y PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K, MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants n IN THE COURT OP CGtAINON',PLEAS Ut] t 7 oo CUMBERLAND COOi\n , PENNSYLVANIA NO. 99-4269 CIVIL : CIVIL ACTION - LAW RESPONSE OF THE CUMBERLAND COUNTY SHERIFF TO PETITION TO SET ASIDE SA OF FA ESTATE AND NOW, comes R. Thomas Kline, Sheriff of Cumberland County, by and through his Solicitor, Edward L. Schorpp, Esq., and responds to the petition to set aside Sheriff's sale as follows: 1-4. Denied. After reasonable investigation, respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these paragraphs and the same are therefore denied. 5-6. Admitted. 7-19. Denied. After reasonable investigation, respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these paragraphs and the same are therefore denied. NEW MATTER 20. The Sheriff's sale of the subject property was in all respects lawful and valid, as the Sheriff complied with all applicable procedural and substantive law in exposing the property for sale and in "knocking down" the property to the highest bidder. Petitioner has not averred any procedural or substantive defect in the sale. 21. Under the circumstances of this sale, gross inadequacy of price is not EXHIBIT i basis for setting it aside, nor for ordering a resale. 22. To the extent that oppressive and bad faith conduc! b the sucrtSsful bidders.prior to the sale is a lawful basis to set aside the sale, which is denied, the Sheriff was not a participant in any such conduct. 23. To the extent that Petitioners have alleged any basis upon which relief could be granted, no such basis has been averred against the Sheriff and he should be dismissed as a party in the within action. WHEREFORE, the Sheriff respectfully requests that the petition be dismissed and that he be dismissed as a party in the within action. Very Respectfully Submitted, Edward L. Schorpp, E S4. Solicitor, Sheriff of Cumberland County 127 West High Street Carlisle, PA 17013 (717) 243-9258 TRUE COPY FROM REOORD to Tastirmxty arhare0f, I tr*re unto set rtty Aano and the seal a sad at Garth, Pa ihls ay - / . a 71' P/? AfGn?^ 2 _T prothonotary VERIFi ATION I verify that the statements contained herein are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. §4904, relating to unswom falsification to authorities. R. Thomas Kline,• heriff Dated: eq- %? % -rlofe? PNC BANK, NATIONAL : IN THE COURT OF COMt IGN PLKAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PFF44SYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants 1 hereby certify that a copy of the foregoing Response was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Glenda K. Maxtor) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Dennis and Jean Dorsey) Dated: -ro-00 B3=j??!?\ Edward L. Schorpp ?1. PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON. INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO.99-4269 CONFESSION OF JUDGMENT CIVIL ACTION-LAW RESPONSE OF PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A. TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE AND NOW, PNC Bank, National Association, successor by merger to CCNB Bank, N.A., through its attorneys Saidis, Shuff & Masland, and responds to the Petition To Set Aside Sheriff's Sale of Real Estate as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of this Paragraph, and the same are therefore denied. 5. Admitted. 6. Admitted. EXHIBIT 7-19. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these Paragraphs, and the same are therefore denied. NEW MATTER 20. The Sheriffs sale of the subject property was in all respects lawful and valid, as the Sheriff and Respondent complied with all applicable procedural and substantive law in exposing the property for sale and the Sheriff complied with all applicable procedural and substantive law in "knocking down" the property to the highest bidder. Petitioner has not averred any procedural or substantive defect in the Sheriffs sale. 21. Respondent bid the property at the Sheriff s sale to approximately $120,341.00. A third party unknown to Respondent and Jean O. Dorsey bid the property up to $211,000.00. 22. Under the circumstances of this sale, gross inadequacy of price is not a lawful basis for setting aside the Sheriff s sale, nor for ordering a new Sheriff s sale of the property. 23. To the extent that oppressive and bad faith conduct by the successful bidders prior to the Sheriffs sale is a lawful basis to set aside the Sheriff s sale, which is denied, Respondent was at all times without knowledge of any such conduct and was not a participant in any such conduct nor has Petitioner alleged that Respondent was in any way involved in such conduct. 2 24. Petitioners' allegations of bad faith conduct are strictly confined to the partners of Dorsey/Maxton Partnership and arise entirely out of a dispute between those partners concerning their tights under the relevant partnership agreement, and are not in any way relevant to the legal validity of the Sheriffs sale. Therefore, the dispute between the partners of Dorsey/Maxton Partnership is not properly before this Court in the form of a Petition to Set Aside Sheriff's Sale of Real Estate. 25. To the extent that Petitioners have alleged any basis upon which relief could be granted, no such basis has been averred against Respondent and Respondent should therefore be dismissed as a party to the within action. WHEREFORE, PNC-Bank, National Association, successor by merger to CCNB Bank, N.A., respectfully requests that the Petition be dismissed and that Respondent be dismissed as a party to the instant action. Respectfully submitted, SAIDIS, SNUFF & MASLAND Date: BY: Karl M. Ledebohm, Esquire Supreme Court ID 459012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for PNC Bank, National Association 3 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDMDUALLY AND AS CO- PARTNERS D/B/A DORSEY/NMTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 : CIVIL ACTION-LAW CONFESSION OF JUDGMENT VERIFICATION I, Eric D. Krimmel, Assistant Vice President, being authorized to do so on behalf of PNC Bank, National Association, hereby verif;- that the statements made in the foregoing pleading are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. PNC BAINK,,NATIONAL ASSOCIATION s Date: I?ii?o0 By: Eric D. Krimmel Assistant Vice President PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO.99-4269 CONFESSION OF JUDGMENT Defendants CIVIL ACTION - LAW CERTIFICATE OF SERVICE AND NOW, this I Ith day of January, 2000, I, Karl M. Ledebohm, Esquire, of the first of Saidis, Shuff & Masland, hereby certify that I this day served a true and correct copy of PNC Bank, National Association's Response to Petition to Set Aside Sheriff's Sale of Real Estate upon the parties listed below via United States Mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Dennis and Jean Dorsey) Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 (Solicitor for Cumberland Co. Sheriff) Respectfully submitted, SAIDIS, SH /'FF & MASLAND By: l '^ r I ?vr? Karl M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 (Solicitor, Cumberland County) a /..s?/ate Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey 'YI L _ • • V FEB ] 0 2000W PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER AND NOW, this day of 2000, upon consideration of Respondent/Defendant(s), Dennis and Jean Dorsey's motion for judgment on the pleadings, the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondent(s) Answers and Responses thereto, it is hereby Ordered and Decreed that the Petition is Denied; and that judgment is entered in favor of Respondent/Defendant Dennis and Jean Dorsey, and against Petitioner Glenda Maxton. By the Court: Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. J. James M. Bach, Esquire, for the partnership Edward L.Schorpp, Esquire, for the Sheriff FEB 1 0 2000 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER AND NOW, this day of 2000, upon consideration of Respondent/Defendant(s), Dennis and Jean Dorsey's motion for judgment on the pleadings, the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondent(s) Answers and Responses thereto, it is hereby Ordered and Decreed that the Petition is Denied; and that judgment is entered in favor of Respondent/Defendant Dennis and Jean Dorsey, and against Petitioner Glenda Maxton. By the Court: Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Edward L.Schorpp, Esquire, for the Sheriff J. FEB 1 0 20000' PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER AND NOW, this day of , 2000, upon consideration of Respondent/Defendant(s), Dennis and Jean Dorsey's motion for judgment on the pleadings, the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondent(s) Answers and Responses thereto, it is hereby Ordered and Decreed that the Petition is Denied; and that judgment is entered in favor of Respondent/Defendant Dennis and Jean Dorsey, and against Petitioner Glenda Maxton. By the Court: J. Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Edward L.Schorpp, Esquire, for the Sheriff FEB 1 0 20001 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER AND NOW, this day of 2000, upon consideration of Respondent/Defendant(s), Dennis and Jean Dorsey's motion for judgment on the pleadings, the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondent(s) Answers and Responses thereto, it is hereby Ordered and Decreed that the Petition is Denied; and that judgment is entered in favor of Respondent/Defendant Dennis and Jean Dorsey, and against Petitioner Glenda Maxton. By the Court: J. Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Edward L.Schorpp, Esquire, for the Sheriff MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP HILL, PA 17011 33?sa EDWARD L. SCHORPP, ESQUIRE 127 WEST HIGH STREET CARLISLE, PA 17013 1111111111111111111111 ? 11 ? 111111 I' ra MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP HILL, PA 17011 1 1 i CRAIG A. DIEHL, ESQUIRE 3464 TRINDLE ROAD CAMP HILL, PA 17011 11,111111,1111111111111111111111 s 4 1 MICHAEL S. TRAVIS ATTORNEY AT LAW 9076 MARKET STREET, SUITE 209 CAMP HILL, PA I7011 JAMES M. BACH, ESQUIRE 352 S. SPORTING HILL ROAD MECHANICSBURG, PA 17055 33U5A j ?1 I 1 MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP HILL, PA 17011 KARL M. LEDEBOHM, ESQUIRE SAIDIS, SHUFF & MASLAND 2109 MARKET STREET CAMP HILL, PA 17011 111111,111111,11111111,111111,1 C.. 1 t -y a? r PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION - LAW ORDER AND NOW, this day of 2000, upon consideration of the written briefs and having heard oral arguments from each party, it is hereby Ordered that Defendants Dorseys' Motion for Judgment on the Pleadings is denied. BY THE COURT: J. PNC BANK, NATIONAL, ASSOCIATION, SUCCESSOR BY MERCER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAX'rON ASSOCIATES, Defendants AND NOW, this day of IN 'riw COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION -LAW ORDER 2000, upon consideration of the written briefs and having heard oral arguments from each party, it is hereby Ordered that Defendants Dorseys' Motion for Judgment on the Pleadings is denied. BY THE COURT: J. PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR 13Y MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants AND NOW, this day of IN TIIE COURT OF COMI140N PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL : CIVIL ACTION -LAW ORDER 2000, upon consideration of the written briefs and having heard oral arguments from each party, it is hereby Ordered that Defendants Dorseys' Motion for Judgment on the Pleadings is denied. BY THE COURT: J. PNC BANK, NATIONAL : IN THu', COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff v. .JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAxTON ASSOCIATES, Defendants AND NOW, this day of : NO. 99-7269 CIVIL CIVIL ACTION -LAW ORDER 2000, upon consideration of the NTitten briefs and having heard oral arguments from each party, it is hereby Ordered that Defendants Dorseys' Motion for Judgment on the Pleadings is denied. BY THE COURT: J. MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP MILL, PA 10011 TELEPHONE (7101731-9602 FAR (717) 731.9311 March 31, 2000 CUR77S R. LONG PROTHONOTARY ONE COURTHOUSE SQUARE CARLISLE, PA 17013 Re: PNC Bank v. Dorsey, et al., No. 99-4269 Defendants/Movant's Motion for Judgment on the Pleadings Dear Mr. Long: Enclosed for filing, please find the defendant(s)/movant(s), Dennis and Jean Dorsey's memorandum of law in support of their motion for judgment on the pleading of petition to set aside sheriff's sale. Please contact me should you have any questions or concerns. Very truly yours, Michael S. Travis for defendant/movants MST/hm Encl. PC: Dennis and Jean Dorsey Lion, J. Wesley Oler, Jr. James M. Bach, Esquire, for the partnership Karl M. Ledebohm, Esquire, for PNC bank APR Craig A. Diehl, Esquire, for Glenda Maxton ` 3 ZOpp Edward L. Schorpp, Esquire for the sheriff PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL : CIVIL ACTION - LAW MEMORANDUM OF LAW IN SUPPORT OF DEFENDANTS JEAN 0. DORSEY AND DENNIS G. DORSEY'S MOTION FOR JUDGMENT ON THE PLEADINGS OF PETITION TO SET ASIDE SHERIFF'S SALE PURSUANT TO PA RCP 206.7 Michael S. Travis, Attorney for Defendant/Movants Dennis and Jean Dorsey 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Date of Argument: April 10, 2000 TABLE OF CONTENTS Page Table of Citations ............................................................................................ (ii) 1. PROCEDURAL HISTORY ................................................................ 1 H. STATEMENT OF FACTS ................................................................. 3 III. STATEMENT OF QUESTIONS INVOLVED ................................... 6 IV. LEGAL DISCUSSION ...................................................................... 7 A. Price at Sheriff's Sale was Adequate ............................................ 7 B. No Bad Faith has been Demonstrated by Petitioner .................... 10 V. CONCLUSION .................................................................................. 13 (i) TABLE OF CITATIONS CASES PAGE Continental Bank v. Frank, 343 Pa. Super. 477, 495 A.2d 565 (1985)......... 7 Dalessio v. Dalessio, 429 Pa. Super. 282; 632 A.2d 566 (1993) ................. 8,9 Fidelity Bank v Pierson, 437 Pa. 541, 264 A.2d 682 (1970) ........................ 7,10 Greater Pittsburgh Business Development Corporation v Braunstein, 390 Pa. Super. 454,458; 568 A.2d 1261 (1989) ............................................ 7 Hettler et al. v. Sheppard, 326 Pa. 165; 191 A. 581 (1937) ........................... 9 Miner's National Bank of Wilkes-Barre M. Bowman, 334 Pa. 534; 6 A.d 286 (1939) ........................................................................................... 7 Van Sciver Co. V. Smith, 328 Pa. Super. 487; 477 A.2d 550 (1984) ............. 7 Weissman v. Henkin, 154 Pa. Super. 12, 15; 34 A.2d 907 (1943) ................ 10,12 (ii) Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants MEMORANDUM OF LAW IN SUPPORT OF DEFENDANTS JEAN 0. DORSEY AND DENNIS G. DORSEY'S MOTION FOR JUDGMENT ON THE PLEADINGS OF PETITION TO SET ASIDE SHERIFF'S SALE PURSUANT TO PA RCP 206.7 At the request of the presiding Judge, defendants Dennis and Jean Dorsey, submit this memorandum of law in support of their motion for judgment on the pleadings. 1. Procedural History On July 8, 1999, plaintiff PNC Bank, filed a complaint for Confession of Judgment under Rule 2951 to foreclose on its mortgage against the defendant partnership. On August 3, 1999, the bank filed a Praecipe for a Writ of Execution Upon Confessed Judgment. Having otherwise complied with the notice requirements under the rules of civil procedure, the property was listed for Sheriffs Sale on December 8, 1999. Defendant(s)/Respondent(s) Dennis and Jean Dorsey were the successful bidders at the Sheriff's Sale on December 8, 1999, for the real estate located at 320-R Bridge Street, New Cumberland, Pennsylvania. On December 16, 1999, defendant Glenda Maxton, co-partner in Dorsey/Maxton Associates, filed a Petition to Set Aside Sheriff's Sale of Real Estate. On December 29, 1999, the Honorable J. Wesley Oler, Jr., issued a Rule upon PNC Bank, Jean Dorsey, Dennis Dorsey, or any other party in interest to show cause, why the relief requested should not be granted. On December 30, 1999, defendants Dennis and Jean Dorsey filed an Answer to the Petition to Set Aside Sheriffs Sale of Real Estate. On January 6, 2000, the Sheriff filed a Response to the Petition to Set Aside Sale of Real Estate and New Matter. Also on January 6, 2000, the Sheriff issued a Schedule of Distribution and Title Report regarding the sale property. On or about January 11, 2000, PNC Bank filed a Response to the Petition to Set Aside the Sheriff's Sale. On February 1, 2000, defendant Glenda Maxton filed a Reply to PNC Bank's New Matter. On or about February 5, 2000, defendants Dennis and Jean Dorsey filed a Motion for Judgment on the Pleadings of Petition to Set Aside the Sheriff s Sale under Rule 206.7. On February 15, 2000, Glenda Maxton filed a Response to the Motion for Judgment on the Pleadings. On February 29, 2000, Judge Oler issued an Order setting the matter for a hearing on April 10, 2000. On March 6, 2000, the Sheriff filed a Motion for Judgment on the Pleadings. On March 15, 2000, the Sheriff filed a Motion to Consolidate, and Judge Oler issued an Order setting both motions for argument on April 10, 2000. This brief is filed in support of Dennis and Jean Dorsey's Motion for Judgment on the Pleadings. II. Statement of Facts The parties Dennis and Jean Dorsey, husband and wife (hereinafter the "Dorseys") and Glenda Maxton, (hereinafter "Maxton") are partners in Dorsey/Maxton Associates. Mr. and Mrs. Dorsey are a one-half partner with Glenda Maxton, who is also one-half partner, The partnership's principle asset is the real property located at 320 Rear Bridge Street, New Cumberland, Pennsylvania. The partnership building is operated as rental units, both for individuals and businesses. Glenda Maxton's husband, John Maxton, operates a drug and alcohol rehabilitation business, "New Insights," housing rehabilitation patients in a number of the units of the building. Glenda Maxton and her husband also occupy administrative units in the building for New Insights, Inc. The partners pay business expenses, and any profits remaining are equally divided between Glenda Maxton and the Dorseys. Conversely, partners are equally responsible for any shortfall. Glenda Maxton and her husband, who is not a partner, currently owe approximately $70,000.00 in back rents for space occupied in the building. The Maxtons repeatedly promised full payment of back rents in exchange for forbearance in any action for either breach of the partnership agreement or non-payment of rent. Nonpayment of rents for space occupied by the Maxtons made it impossible for the partnership to pay the mortgage to PNC bank, mortgage holder of the real estate. On July 8, 1999, PNC bank, successor to CCNB, sought a judgment by confession when it was no longer willing to accept sporadic mortgage payments from the partnership. The matter was listed for a Sheriffs Sale on December 8, 1999. For at least one year before the Sheriffs Sale, it was clear that the partnership would not continue. Glenda Maxton repeatedly promised to find a buyer or new business partner willing to buy out the Dorsey business interest and give the Dorseys a satisfactory return on their investment. No offer materialized from Maxton. To this end, an appraisal of the property value was prepared by George Clauscr, SRA, on September 10, 1998. The appraisal estimated the property value at $332,000.00. This value estimated a fully leased, non-distressed property. In April of 1999, the Dorseys became concerned because no suitable buyer was located for the property and PNC was threatening suit to foreclose on the mortgage. At this time, the Dorseys obtained counsel and demanded payment of the back rents, as well as other money issues for services provided by Gary Dorsey and Jean Dorsey to the partnership or the Maxtons. Mr. Dorsey sought payment for renovation services he provided to the partnership, and Mrs. Dorsey sought payment for supplies she provided to the Maxtons for New Insights. The Dorseys filed suit for the supplies provided to the partnership and New Insights and demanded $4,000.00 by suit from at the District Magistrate. The Honorable Charles A. Clement, Jr., District Magistrate, found the case too complex for small claims court, and the parties stipulated the matter would remain pending while a comprehensive resolution was sought. Mr. Dorsey's suit against the partnership is captioned 99 - 3179, for the services he provided to the partnership. That matter is also pending. Both of these suits relate to matters the individuals sought from the partnership, and not between partners. The partnership agreement provides that disputes among partners are to be resolved by arbitration, through the American Arbitration Association. James M. Bach, Esquire, was retained as counsel for the partnership's interests, as Maxton's actions conflicted with partnership interest. On behalf of the partnership, Attorney Bach filed suit for the back rents owed either by the Maxtons, or New Insights. Those actions are captioned No. 99- 4983 and 99- 4984. In an effort to resolve all outstanding partnership issues, on May 12, 1999, the Dorseys made a comprehensive offer of purchase of the partnership building which would provide enough funds to pay the mortgage and pay equity to the partners after the sale. While the Dorseys were not especially interested in purchasing the property from Maxton, after more than a year without an offer from Maxton, the Dorseys became concerned that their partnership investment might be lost at a sheriffs sale. Maxton neither accepted nor rejected the Dorseys offer. Glenda Maxton continued to promise that an acceptable buyout package for the Dorseys interest would be made shortly. As the sheriff's sale date drew closer, it was apparent to the Dorseys that no acceptable offer would be forthcoming, and they arranged for purchase of the property at sale to protect their investment. Several attempts through Maxton's counsel were made to buyout the Dorseys interest, none of which were acceptable to the Dorseys. Importantly, see Attorney Kline's letter offer of October 22, 1999, attached to Answer to Petition to Set Aside Sheriffs Sale as Exhibit A, which summarized the status of the matter as the sale approached. It was apparent to the Dorseys that Maxton was either not serious about raising the funds for sale, or could not raise the funds on time. At the District Magistrate on August 9, 1999, Attorney Kline was not concerned about the sheriff s sale, believing that the sheriffs sale could be easily postponed. The Dorseys were completely against any change in the date for the sheriff's sale, and wanted all matters with the Maxtons resolved, before the sale, including all suits for all matters arising out of the partnership relationship. For their part, the Maxtons wanted to resolve all issues piecemeal, and believed up until the week before the sale that the Dorseys would accept what the Maxtons offered, and that the Dorseys would stipulate to take their chances on the amounts owed for the smaller suits. Until the very end, the Maxtons, through counsel, promised that if the Dorseys did not accede to the price they offered to purchase the partnership interest, that the pending suits would be "only the beginning" to the litigation. No resolution was reached prior to December 8, 1999, and the Dorseys purchased the property at sale for $211,000.00. The property was competitively bid upon at the sale. After approximately twenty-three (23) separate bids at the sale, the property was "knocked down" to the Dorseys, as the successful bidder. Sheriff s Sale. The bid price made by the Dorseys was $211,000.00. The debt plus interest on the PNC loan and real estate transfer tax came to $222,222.36. During the sale, the bank, by its counsel, Karl Ledebohm, Esquire bid the price up to the mortgage amount. The Dorseys bid against several other unknown bidders who took the price above $200,000.00, until finally being knocked down to the Dorseys. III. Statement of Ouestions Involved WHETHER OR NOT THE PROPERTY AT ISSUE SOLD FOR AN ADEQUATE PRICE AT SHERIFF'S SALE. Suggested answer in the affirmative. WHETHER OR NOT THE PETITIONER HAS DEMONSTRATED OPPRESSIVE CONDUCT AND BAD FAITH ON THE PART OF THE BUYERS AT SHERIFF SALE. Suggested answer in the negative. 6 IV. Legal Discussion A. Price at Sheriy s Sale was Adequate. Mere inadequacy of the sale price of real estate is not a sufficient basis to set aside a sheriffs sale. Fidelity Bank v. Pierson, 437 Pa. 54i, 264 A.2d 682 (1970). It has long been established that "gross inadequacy" of price is the basis for setting aside such a sale. Continental Bank v. Frank, 343 Pa. Super. 477, 495 A.2d 565 (1985). Maxton has failed to show that the $211,000.00 sale price is grossly inadequate. It is the petitioner's burden to establish by clear and convincing evidence the material allegations of the petition that sale price is inadequate. Greater Pittsburgh Business Development Corporation v. Braunstein, 390 Pa. Super. 454, 458; 568 A.2d 1261 (1989). Where gross inadequacy of price at sheriffs sale was alleged, one of the lowest sale prices to alleged property value in reported cases was in Van Sciver Co. v. Smith, 328 Pa. Super. 487; 477 A.2d 550 (1984). There, the owner of the property subject to sale believed the value of his property prior to sale to be at least $26,100.00, three times the assessed value for tax purposes. The Court disagreed, finding $6,300.00 (24% of the claimed value) was not grossly . inadequate. In Miner's National Bank of Wilkes-Barre v. Bowman, 334 Pa. 534; 6 A.d 286 (1939) the petitioner alleged the property to be valued at $15,000.00. After no competitive bidding, the property sold for $2,250.19 at sheriffs sale, subject to a mortgage of $6,317.00. The Court did not find the ratio of fair market value to sale price to be so disproportionate as to be an abuse of discretion causing the sale to be set aside. The Court also noted that the petitioner had the opportunity to bring his own bidders to the sale, as did Maxton in the case at bar. Gross inadequacy of price is that which "shocks the conscience." Dalessio v. Dalessio, 429 Pa. Super. 282; 632 A.2d 566 (1993). In Dalessio, the petitioner claimed the property subject to sheriffs sale had an appraised valued of $657,000.00, the Court found that the sale price of $375,000.00 was not grossly inadequate. Recognizing the large discrepancy between the appraised value and the sale price, the Court found no error. Id at 288. Like the case at bar, the Dorsey/Maxton partnership property is a business property, and the bank foreclosed under a confession of judgment. Dalessio instructs a two part test in a determination of whether or not a price at sale is adequate. The amount realized at the sale first must not be grossly inadequate when compared to its purported value. Maxton here states that the value is up to that of $350,000.00 from a "bona fide" buyer. An examination of the offer from the third party however, reveals that the offer only loosely had anything to do with the price of the real estate. Maxton's buyer did not have a financing commitment and required an additional appraisal of the property through a complicated buy out of Dorsey's interest. Essentially, she was asking the buyer to underwrite her debt for the back rents, and making the new "offer" as the only way to come up with money to pay to the Dorseys to avoid the sale. If Maxton had really obtained a potential cash buyer, they easily could have appeared at sale to bid on the property herself. Glenda Maxton was not even present at the sale, nor was her counsel. The fact that the Kline offer looked to pay the Dorseys first $95,000.00 and later $107,000.00, shows Maxton was not interested in fairly resolving partnership accounts if she believed the property was worth $332,000.00. Even as far back as August, 1999, Maxton's counsel was not concerned about the December sale, and believe it could be moved back. The Dorseys were always opposed to any change in the sale date, and wanted all matters resolved by then. The second part of the Dalessio approach instructs that the appraisal value should be considered in determining whether or not the sale price shocks the conscience of the Court. Here, the value of the appraiser is helpful. $332,000.00 was the value set by the appraiser in September 1998. The appraisal was requested for the specific purpose of establishing the partnership share at dissolution. It was drafted with an eye toward showing a lender what a fully leased property might be worth. The property had not been fully leased for well over a year because the Maxtons occupied the building, and did not pay rent. It would be purely speculative to say that the building could be fully leased if the Maxtons vacated the property. Additionally, it was found after July 1999, that the property had termites. Even if the value could be found to be $332,000.00, the Dorsey purchase price of $211,000.00 is not an amount which shocks the conscience. In Hettler v. Shephard the Court found a sale price $989.76 which covered only taxes and costs on a property assessed for $3,080.00 to be grossly inadequate. Hettler et al. v. Sheppard, 326 Pa. 165; 191 A. 581 (1937). In the case at bar, the bid price far exceeded both the sale costs and mortgage on the property by nearly $100,000.00. The price paid by the Dorseys at the sale on December 8, 1999, was not only adequate, but also a fair price. All parties were aware of the sale, as PNC properly filed its complaint for confess judgment. The sale was fair in procedure. There was substantial bidding, and the property commanded the offer of $211,000.00. Maxton has failed to establish that there was any gross inadequacy in price. Maxton simply now wants another opportunity to raise the money. This defeats the goal of a sheriffs sale. No buyer knows what a property will sell for, each buyer must be prepared to have all funds available in place the day of the sale. It is this aspect of a sheriff's sale which sets market price. Lastly, on March 13, 2000, Maxton made yet another offer to purchase the property from Dorsey, after her petition to set aside the sheriffs sale. This offer again only offered $225,000.00 as the building's value. If she believes the value of the property is $332,000.00, her offer is again $107,000.00 short. B. No Bad Faith has been Demonstrated by Petitioner. Glenda Maxton makes the argument that they were led to believe that the sheriffs sale would not take place by the actions of the Dorseys. However, it is undisputed that the Dorsey/Maxton Partnership was in arrears on the mortgage payment. The bank had the option of calling the entire loan, which it did. The bank never gave any indication that the sale would or could be moved to a date later than December 1999. The Dorseys would not agree to such a change. Maxton could not believe under these circumstances that the sale would not take place on December 8. Fidelity Bank at 543. Upon dissolution of a partnership, it is the right of each partner to have the property converted into money by a sale. Weissman v. Henkin, 154 Pa. Super. 12, 15; 34 A.2d 907 (1943). While it was unfortunate that the property was sold at sheriffs sale, neither partner could produce an acceptable offer to the other partner. The sheriffs sale did nonetheless afford an opportunity to provide a resolution of the partnership accounts. It was the inactivity of Maxton which caused the sale to take place. Maxton could have paid the rents due which would have prohibited the sale. Alternatively, Maxton could have accepted the Dorsey offer of 10 purchase, made earlier, or she could have made her own acceptable offer to the Dorseys. None of these events took place, which left no alternative but to Lave the property sold at sale. Maxton alleges the negotiations of the Dorseys amounted to bad faith. There is simply no validity to this argument. The crux of the Maxton argument is that the Dorseys demanded $137,500.00 before the sale to prevent the sale. The willingness of the Dorseys to accept an amount less than the full $145,000.00 sought the month before, demonstrates the utmost good faith attempt to allow Maxton an opportunity to buy the property before sale, at a cost of $7,500.00 less than previously demanded. Maxton also states that she is now willing to tender the funds which she would not before. This is not now relevant. The offer of $145,000.00 was to prevent sale, and avoid it. The Dorseys have now incurred substantial fees, costs, and expenses both to acquire the property and defend against the Maxton motion. Further, because no deed was issued by the sheriff, Maxton and New Insights, Inc., remain in the building without payment of rent. It was Maxton's financial position which did not allow her to buy the property from the Dorseys. Maxton's financial position also prevented her from accepting a reasonable offer from the Dorseys. It was also her financial situation which did not even allow her to come up with a reasonable amount of money prior to the sale to prevent it. These are all conditions of the Maxton, none of which relate to the Dorseys. Finally, Maxton seems to argue that the she was somehow not aware that the Dorseys intended to buy at sale. However, Maxton was aware that the Dorseys made an offer of settlement through counsel some months earlier. Her counsel also knew that the Dorseys intended to bid at sale, and promised that there would be other bidders at sale, presumably the new partner which Maxton sought to take on. Additional bidding was made on the building at the sale both by the bank and by the unknown group of bidders. The final offer of the Dorseys at sale was simply the highest value the property would fetch. The property in question was being sold by PNC Bank, not the Dorseys, the Dorseys simply stepped into rescue their investment. The unwillingness of Maxton to either make an acceptable offer or bid at the sale herself only demonstrates that negotiations failed between the parties. The conduct of Glenda Maxton raises issues of bad faith on her part. Maxton did not provide any offer of settlement until shortly before the sale was to take place. Her offer did not even come close to the $145,000.00 which the Dorseys sought. Maxton could have brought her buyer to sale but failed to do so. Maxton's counsel stated up to the date and time of sale that if the property was sold, that they would compound litigation thereafter without any basis. It was the Dorseys who wished to settle all litigation and reach a fair settlement of all issues. Valuation of the partnership property should not allow a defaulting partner a means for benefiting from her own misconduct. Weissman at 16. It was Maxtons financial condition which led to the sale, and the cause of it. The appraisal put forth was to allow the property to be bought out by one partner or another, not the value at sheriff's sale which the Dorseys were required to purchase. Dorsey decreased their demand before the sale in an effort to allow Maxton to come up with the money for the sale. Maxton simply could not raise the funds. No bad faith is demonstrated by the Dorseys in any of this. Maxton should not be able to benefit from her own misconduct. 12 V. Conclusion For the foregoing reasons, Dennis and Jean Dorsey, respectfully request that this Honorable Court find that the sale price of $211,000.00 was adequate, that there was no bad faith on the part of the Dorseys, and order that the sheriff issue a deed to the property in question. Respectfully submitted, ichael S. Travis Attorney for Defendants/Movants Dennis and Jean Dorsey 13 CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 1705.` (Attorney for Partnership) Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 (Solicitor, Cumberland County) By: } iael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 /?? /a/JQaQ Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW ORDER OF COURT AND NOW, this day of March, 2000, upon consideration of the Motion for Consolidation for Argument by the Cumberland County Sheriff, and upon relation by the Sheriff's Solicitor that all counsel concur in the motion, an argument is hereby scheduled for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. Argument is hereby consolidated with the argument previously scheduled in this matter. Briefs are to be submitted at least 7 days before the date of argument. BY THE COURT, 11 11-V . ?1 r PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL CIVIL ACTION - LAW MOTION BY THE SHERIFF OF CUMBERLAND COUNTY FOR CONSOLIDATION OF ARGUMENT NOW COMES, R. Thomas Kline, Sheriff of Cumberland County, by his Solicitor, Edward L. Schorpp, Esquire, and respectfully moves this Court to consolidate argument upon the following: 1. On March 6, 2000, the Sheriff of Cumberland County moved for judgment on the pleadings in the within matter and requested that, he be dismissed as a party. 2. On the same date, this motion was listed for argument court. 3. Thereafter, the Sheriff's Solicitor was furnished a copy of the Order of this Court dated February 29, 2000, scheduling argument for defendants Dorseys' motion for judgment on the pleadings for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1. 4. The Sheriff's Solicitor thereupon contacted counsel for all parties and obtained concurrence from each that the Sheriff's motion could be heard at the argument scheduled for April 10, 2000. WHEREFORE, the Sheriff requests your honorable Court to order argument upon his motion for judgment on the pleadings for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1, Cumberland County Courthouse. n 9 Very Respectfully submitted, ?r ; 3 :y . t a c - 0 3? Edward L. Schorpp, Es q ) Jrn Solicitor for Sheriff of Cumberland County 127 West High Street Carlisle, PA 17013 (717) 243-9258 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing document, Motion by the Sheriff of Cumberland County for Consolidation of Argument, was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Karl M. Ledebohm, Esquire Saidis, Shuff & Masland 2109 Market Street P.O. Box 737 Camp Hill, PA 17011 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 Edward L. Schorpp, Esq. Dated: PNC BANK, NATIONAL, ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL CIVIL ACTION -LAW DEFENDANT GLENDA K. MAXTON'S BRIEF IN OPPOSITION TO MOTION FOR JUDGMENT ON THE PLEADINGS OF DEFENDANTS JEAN O. DORSEY AND DENNIS G. DORSEY I. STATEMENT OF FACTS AND PROCEDURAL HISTORY: Defendant, Glenda K. Moreton (hereinafter "Maxton") initiated the immediate proceeding by the filing of a Petition to Set Aside Sheriffs Sale of Real Estate against Jean O. Dorsey and Dennis G. Dorsey (hereinafter "Defendant Dorseys") on December 17, 1999. Maxton seeks to set aside the Sheriffs Sale, which took place on December 3, 1999, based upon the gross inadequacy of the price and the oppressive and bad faith conduct of Defendant Dorseys. Those allegations were specifically raised in the Petition to Set Aside Sheriffs Sale and were based upon recent events between Maxton and Defendant Dorseys. More specifically, Maxton and Defendant Dorseys were partners (hereinafter collectively referred to as the "Partners"), in a partnership known as Dorsey/Maxton Associates. Said partnership was the legal fee simple owner of certain real property located at 320 Rear Bridge Street, New Cumberland, Cumberland County, Pennsylvania, (hereinafter the "Subject Property"). The Partners have been embroiled in various lengthy business disputes that have resulted in litigation between the parties to three (3) separate civil dockets. As a result of the inability of the Partners to resolve the various disputes, PNC Bank. who had a mortgage lien on the Subject Property, initiated a mortgage foreclosure proceeding and executed upon its civil judgment by Sheriff s Sale on December 8, 1999, same being the sale that is the subject of Maxton's Petition to Set Aside Sheriff's Sale. Maxton has based her Petition to Set Aside Sheriffs Sale on specific unreasonable, oppressive, and bad faith conduct of Defendant Dorseys as well as the gross inadequacy of the sale price of the Subject Property at the Sheriffs Sale. On multiple occasions Maxton and Defendant Dorseys, through counsel, attempted to resolve their business disputes prior to the subject Sheriff`s Sale. Moreover, Maxton believed through counsel that settlement negotiations of the various disputes between the Partners would be resolved prior to the Sheriff s Sale and that it was Defendant Dorseys' intent to have Maxton retain the Subject Property. Despite the specific representations of Defendant Dorseys through counsel and Maxton's reliance upon same to her detriment, Defendant Dorseys refused to agree to a delay of the Sheriffs Sale to permit settlement. PNC Bank had agreed to the postponement of the Sheriffs Sale if a valid agreement of sale had been entered into by all partners and the buyer had a financing commitment with settlement to occur in 30 to 45 days. An offer equal to the appraised value had been presented, however, Defendant Dorseys would not agree to the distribution of the excess funds unless other pending litigation, which they did not prevail in at the District Justice level, was paid to them. Accordingly, the Dorseys utilized the impending nature of the Sheriffs Sale to their advantage 2 in attempts to force Maxton to make certain financial concessions to resolve their outstanding business issues. Just one day before the Sheriffs Sale, Defendant Dorseys superficially dropped their monetary demand slightly, however, they demanded an unrealistic contingency of one day to obtain the financing. Defendant Dorseys did this knowing that settlement prior to the sale would be logistically impossible, despite the Buyer's approved financing sufficient to pay PNC Bank and Defendant Dorseys in full within the Bank's requested time period. At the time of the Sheriffs Sale, with knowledge that the appraised value of the Subject Property pursuant to Defendant Dorseys' appraisal of September 1998, was $332,000.00, Defendant Dorseys bid on the property at the Sheriffs Sale and were successful for the sum of $211,000.00, thereby obtaining the Subject Property for a grossly inadequate price. Thereafter, in compliance with Pennsylvania Rule of Civil Procedure 3132, Maxton's filed here Petition to Set Aside Sheriffs Sale on December 17, 1999, and the Honorable Judge J. Wesley Oler, Jr. issued a Rule to any party in interest to show cause why the relief requested should not be granted on December 29, 1999. Defendant Dorseys filed an Answer thereto on December 30, 1999, and R. Thomas Kline, Sheriff of Cumberland County, and PNC Bank, also responded to said Rule by filing their respective Answers to Maxton's Petition to Set Aside Sheriffs Sale. On or about February 2, 2000, Defendant Dorseys filed a Motion for Judgment on the Pleadings of Petition to Set Aside Sheriffs Sale. A hearing for argument of same was scheduled for April 10, 2000, and this Brief follows in accordance with the Order of the Honorable Judge J. Wesley Oler, Jr. 3 II. STATEMENT OF OUESTIONS INVOLVED: A. STANDARD OF REVIEW B. WHETHER DEFENDANT DORSI YS' MOTION FOR JUDGMENT ON THE PLEADINGS MUST BE DENIED UNDER THE FACTS OF THIS CASE. Suggested Answer: [Yes] III. LEGAL ARGUMENT: A. STANDARD OF REVIEW It is well-established in Pennsylvania that a motion for judgment on the pleadings will succeed only "in cases free from doubt inhere there are no issues of fact, and only where the cause is so clear that a trial would clearly be a fruitless exercise." Beck v. Minestrella, 264 Pa.Super 609, 401 A.2d 762 (1979), emphasis added. Procedurally, Pennsylvania Rule of Civil Procedure 1034 governs such motions wherein it states: (a) After the pleadings are closed, but within such time as not to delay the trial, any party may move for judgment on the pleadings. (b) The court shall enter such judgment or order as shall be proper on the pleadings. Pa.R.C.P. 1934. Because a motion for judgment on the pleadings is in the nature of a demurrer, upon a review of the allegations of the pleadings, it is clear that Defendant Dorseys' Motion for Judgment on the Pleadings must be denied. As a demurrer, "[a]II material facts set forth in the Complaint as well as all inferences reasonably deducible therefrom are admitted as true for the purpose of this review". Kyle v. McNamara & Criste, 506 Pa. 631, 634, 487 A.2d 814, 816 4 r.. (1985). In addition, "[tjhe party moving for the judgment on the pleadings admits for the purpose of his motion ... the untruth of any of his allegations which may have been denied by his adversary. Beck v. Minestrella, 264 Pa.Super. 609, 401 A.2d 762 (1979). Defendant Dorscys' Motion for Judgment on the Pleadings may be granted only if the law dictates with certainty that the facts as averred permit no possible recovery. Kj, c, 487 A.2d at 816. Accordingly. because Maxton has properly alleged the requisite facts necessary for review by this Court, as more specifically explained, infra, and has acted in compliance with Pennsylvania Rule of Civil Procedure 1332 in filing her Petition, Defendant Dorseys' Motion for Judgment on the Pleadings must be overruled. It is also well-established in Pennsylvania that "[w]here doubt exists as to whether a demurrer should be sustained, this doubt should be resolved in favor of overruling it." Id. Thus, in consideration of the nature of the pending motion as one for judgment on the pleadings, and in compliance with the Pennsylvania Rules of Civil Procedure regarding same that permit only the consideration of the well-pleaded statements of fact, specific admissions, and those documents properly attached thereto, Defendant Dorseys' motion must be denied. B. DEFENDANT DORSEYS' MOTION FOR JUDGMENT ON THE PLEADINGS MUST FAIL BECAUSE JUST CAUSE EXISTS FOR THIS COURT TO SET ASIDE THE SHERIFF'S SALE AND DISPUTED FACTS EXIST THEREBY PROHIBITING THE ENTRY OF JUDGMENT ON THE PLEADINGS. Upon review of the factual allegations of Maxton's Petition for Setting Aside Sheriff's Sale, and accepting the allegations as admitted for the purposes of a determination of the Motion for Judgment on the Pleadings, it is clear that Defendant Dorseys' Motion for Judgment on the 5 Pleadings must fail. More specifically, Maxton filed her Petition pursuant to Pennsylvania Rule of Civil Procedure 3132 which states that: Upon petition of any party in interest before delivery of the personal property or of the sheriffs deed to real property, the court may, upon proper cause shown, set aside the sale and order a resale or enter any other order which may be just and proper under the circumstances. Pa.R.C.P. 3132. In addition, Maxton's Petition was timely filed pursuant to Pennsylvania Rule of Civil Procedure 3135 which provides, infer cilia: (a) When real property is sold in execution and no petition to set aside the sale has been filed, the sheriff, at the expiration of ten days after the filing of the schedule of distribution, shall execute and acknowledge before the prothonotary a deed to the property sold ... Pa.R.C.P. 3135. In her Petition, Maxton has met her burden because she has properly pleaded the requisite facts regarding the sale of the Subject Property for a grossly inadequate price as well as the oppressive and bad faith conduct of Defendant Dorseys, which both constitute just cause to set aside the sale by this Court as permitted by Pennsylvania law. As stated above, because Defendant Dorseys' motion is for ajudgment on the pleadings, Maxton's factual allegations must be admitted as true, thereby preventing the entry of a judgment on the pleadings under the facts of this case. In Pennsylvania, it has long been established that gross inadequacy of price is the basis for setting aside a sheriff's sale of real property. Continental Bank v. Prank, 343 Pa. Super. 477, 484, 495 A.2d 565, 568 (1985). Nfaxton, who is clearly a party in interest, has properly plead this issue by including factual averments of the sales price, value of the property including 6 specific allegations of Defendant Dorseys' appraisal, the mortgage balance, and the estimated value of the property. (See Maxton's Petition to Set Aside Sheriffs Sale paragraphs 6, 7, 8, 9 and 12). A petition to set aside sheriff's sale is left to the discretion of the court, and the true value, sales price and mortgage balance are all items to be considered in making a determination. Id., Vend-a-Matic. Inc. v. Prankford "trust Co., 296 Pa. Super. 492, 442 A.2d 1 158 (1982). 'T'hus, upon review of the pleadings, it is evident that Maxton has plead the requisite information and that the parties clearly dispute whether the sales price was grossly inadequate. This Court's review of appraisals should be undertaken to determine the value of the property. Because the immediate proceeding is in the nature of a motion for judgment on the pleadings and the requisite factual allegations have been made by Maxton, in considering that the well pleaded allegations are admitted and the untruth of the moving party's averments are denied, judgment on the pleadings cannot be entered since material issues of the facts are in dispute. Tate v. Pennsylvania Board of Probation and Parole, 40 Pa.Conmmonwcalth Ct., 4. 396 A.2d 482 (1979). There are additional disputed facts that justify the denial of Defendant Dorseys' Motion for Judgment on the Pleadings. More specifically, Maxton alleged certain oppressive and bad faith conduct on the part of Defendant Dorseys that resulted in unfairness to Maxton thereby justifying the setting aside of the Sheriff's Sale. tvt. f3armann and Sons v. Dice, 74 DKC.2d 608 (1976). The Dorseys refusal to sign a full price offer of the appraised value of the property created a "financial hostage" situation to Maxton unless she gave in on the other business disputes. Such methods of dealing clearly constitute bad faith and oppressive conduct which this Court needs to be the Ultimate fact finder on in determining whether said conduct justifies setting aside the Sheriff Sale. This issue is also disputed by the p.uticS, and as Stated above, such a 7 disputed issue is sufficient reason for this Court to deny Defendant Dorseys' Motion for Judgment on the Pleadings. As explained above, it is well-established in Pennsylvania that "[w]here doubt exists as to whether a demurrer should be sustained, this doubt should be resolved in favor of overruling it." Kyle, 487 A.2d at 816. Thus, in consideration of the nature of the pending motion as one for judgment on the pleadings, and in compliance with the Pennsylvania law Defendant Dorseys' motion must be denied. IV. CONCLUSION: For the above-stated reasons, Defendant, Glenda K. Maxton, respectfully requests that Defendant Dorseys' Motion for Judgment on the Pleadings be overruled. Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Date: April 3, 2000 By: Craig Pi. Diehl, Esquire Attorney I.D. No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 8 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW CERTIFICAI'F._OF SERVICE AND NOW, this 3rd day of April, 2000, the undersigned hereby cerlilies that a true and correct copy of the foregoing DEFENDANT, 6LF.NDA K. \9AX'I'ON'S BRIEF IN OPPOSITION TO MOTION FOR JLJDG\11?N'1' ON TI Ili PI.FADINGS OF 1)[3FF.NDANTS, JEAN O. DORSEY AND DENNIS G. DORSEY was served upon the parties listed below by way of United States first class mail, postage prepaid, addressed as follows: Karl M. Ledebolmi, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Camp Hill, PA 17011 (Attorney for PNC Bank, N.A.) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Ilill, PA 17011 (Attorney for Jean O. Dorsey and Dennis G. Dorsey) Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 (Solicitor for Cumberland Co. Sheriff) James M. Bach, Esquire .152 South Sporting Hill Road Mechanicsburg, PA 17055 (Attorney li,r Partnership) LAWOFFIC'ES Oh CRAIG A. DIEHL BY: -- XU F' llelcn I:. asmtssen, Legal Assistant 3.164 '1'rindle Road Camp Hill, PA 17011 (717) 763-7613 PNC BANK, NATIONAL ASSOCIATIGN, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW RESPONSE OF GLENDA K. MAXTON TO MOTION FOR JUDGMENT ON THE PLEADINGS Defendant/Petitioner, Glenda K. Maxton, by her counsel, Law Offices of Craig A. Diehl, respectfully responds to the Motion for Judgment on the Pleadings filed by Jean O. Dorsey and Dennis G. Dorsey as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted. 8. Admitted. 9. Denied, Petitioner has set forth several allegations as to the true value of the property. It has been long established that gross inadequacy of price is the basis for setting aside of a sheriff sale. The value of the property must be considered by the Court as a factual issue through demonstrative evidence, appraisals, etc., in making its determination of whether the sale price is grossly inadequate. 10. Denied. The allegations set forth in Petitioner's Petition create a factual dispute that this Court needs to hear prior to making its decision whether the Dorseys' conduct is oppressive and in bad faith. 11. Admitted. 12. Denied. Petitioner has alleged several disputed factual issues which would be sufficient grounds to deny the Motion for Judgment on the Pleadings. 13. Denied. Counsel for Petitioner has no knowledge of Attorney Bach's position on this matter. 14. Denied. Counsel for Petitioner has no knowledge of Attorney Ledebohm's position on this matter. 15. Denied. Counsel for Petitioner has no knowledge of Attorney Schorpp's position on this matter. 16. Admitted. 17. Denied. Sufficient material factual issues have been timely raised such that this Court should set the matter for a hearing to decide the dispute. 2 WHEREFORE, Petitioner/Defendant, Glenda K. Maxton, respectfully requests that this Court deny the Motion for Judgment on the Pleadings and set the matter for a hearing. Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Dated: February 2000 By: Craig k Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Attorney for Defendant/Petitioner, Glenda K. Maxton 3 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL : CIVIL ACTION - LAW CERTIFICATE OF SERVICE AND NOW, this L"' day of February, 2000, the undersigned hereby certifies that a true and correct copy of the foregoing RESPONSE OF GLENDA K. MAXTON TO MOTION FOR JUDGMENT ON THE PLEADINGS was served upon the parties listed below by way of United States first class mail, postage prepaid, addressed as follows: Karl M. Ledebohm, Esquire Michael S. Travis, Esquire SAIDIS, SHUFF & MASLAND 4076 Market Street, Suite 209 2109 Market Street Camp Hill, PA 17011 Camp Hill, PA 17011 (Attorney for Jean O. Dorsey (Attorney for PNC Bank, N.A.) and Dennis G. Dorsey) Edward L. Schorpp, Esquire James M. Bach, Esquire 127 West High Street 352 South Sporting Hill Road Carlisle, PA 17013 Mechanicsburg, PA 17055 (Solicitor for Cumberland (Attorney for Partnership) Co. Sheriff) LAW OFFICES OF CRAIG A. DIEHL By Helen E-. 'Rasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 `J ¢ 0 q? J W N a A p w F a? a U r n n O o a ? ? z 5 ~=F U PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION - LAW REPLY TO NEW MATTER AND NOW COMES, Glenda K. Maxton, hereby responding to the New Matter filed by PNC Bank, N.A., as follows: 20. Admitted. 21. Denied. After reasonable investigation, Glenda K. Maxton is without knowledge or information sufficient to form a belief as to the truth of the averments. 22. Denied. Gross inadequacy of price is a proper cause for setting aside of a sheriff sale. 23. Denied. It is admitted that PNC Bank, N.A., was not a participant in any oppressive and bad faith conduct between Petitioner and the Dorseys. Any further averments are conclusions of law to which no responsive pleading is required. 24. Denied. The averments contain conclusions of law to which no responsive pleading is required. Petitioner, Glenda K. Maxton, has set forth valid reasons to request that the sheriff sale be set aside. 25. Admitted. WHEREFORE, Glenda K. Maxton respectfully requests that the sheriff's sale be set aside or order such further relief as this Court believes is just and equitable. Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Dated: January 31, 2000 By: l ?, wQ L );,'t Craig . Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Attorney for Petitioner, Glenda K. Maxton 2 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION - LAW CERTIFICATE OF SERVICE AND NOW, this -L5-1- day of February, 2000, the undersigned hereby certifies that a true and correct copy of the foregoing REPLY TO NEW MATTER was served upon the parties listed below by way of United States first class mail, postage prepaid, addressed as follows: Karl M. Ledebohm, Esquire Michael S. Travis, Esquire SAIDIS, SHUFF & MASLAND 4076 Market Street, Suite 209 2109 Market Street Camp Hill, PA 17011 Camp Hill, PA 17011 (Attorney for Jean O. Dorsey (Attorney for PNC Bank, N.A.) and Dennis G. Dorsey) Edward L. Schorpp, Esquire James M. Bach, Esquire 127 West High Street 352 South Sporting Hill Road Carlisle, PA 17013 Mechanicsburg, PA 17055 (Solicitor for Cumberland (Attorney for Partnership) Co. Sheriff) LAW OFFICES OF CRAIG A. DIEHL By. j elen tasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 C1 C.= t - 5 cn i W ¢ i to p w uiLb 2y Q F x ? C V a m LL y C W a LL V n ? LL a 3 F x n U 1 MICHAEL S. TRAVIS ATTORNEY AT LAW 4016 MARKET STREET, SUITE 209 CAMP HILL, PA 11011 JAMES M. BACH, ESQUIRE 352 S. SPORTING HILL ROAD MECHANICSBURG, PA 17055 I'll III II l111a„I,11 ? USA ? ? 55 1. MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET, SUITE 209 CAMP HILL, PA 17011 I, o' S d ""WUSA SJ KARL M. LEDEBOHM, ESQUIRE 2109 MARKET STREET CAMP HILL, PA 17011 1111111111111?1??11111111111?111 111I11r'' l; nFC o 19sk v PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of , upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff J. ,0- 19R, S 0 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CC" BANK N : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA , .A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G . DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A :CIVIL ACTION -LAW DORSEY/MAXTON ASSOCIATES , Defendants ORDER OF COURT upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and AND NOW, this day of the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. BY THE COURT, James M. Bach, Esquire, for the partnership Cumberland County Sheriff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that a hearing is scheduled for the day of 2000, in Courtroom No. at _M. to address the issues in the Petition and Answer thereto. Petitioner Glenda Maxton shall place a bond with the Court in the amount of $4,495.80 for payment of the monthly mortgage while the petition is pending for compensation of lost income of the subject property pending disposition. BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Sheriffs Sale of Real Estate as follows: 1 - 6. Admitted. ANSWER TO I. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriff's Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation aRsumes a fully leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22, 1999, are attached hereto as Exhibit A.) The $145,000.00 number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. Byway of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband John Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $137,500.00 to settle all issues before Sheriff's Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have obtained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not I acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written I affer by the third party, the third party did not have a financing commitment, the offer required hat an additional appraisal be made and that Glenda Maxton receive payoff of her perceived artnership value through a complicated note from the third party, none of which were certain. WHEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriffs Sale, or such other relief as the Court deems just and appropriate. ANSWER TO II. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS JEAN O. DORSEY AND DENNIS G. DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stem from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payment of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda Maxton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. By way of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriffs Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters had nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to put forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The cash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maxton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriffs Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriff s Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriff s Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at $657,000.00 sold at Sheriff s Sale for $365,000.00 (56% of value), Dalessio v. Dalessio. 429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5% of value) J B Van Sciver Co. v. Smith 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. By way of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have gone through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriffs Sale. The last offer of settlement was a negotiated value before the property wen/ to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had financing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication of a fair price at the sale. WHEREFORE, and because the Respondents have gone through the expense of sale, and have the obligation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for tiling a baseless petition, or in the alternative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of $ 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, Ic aeh lSis ID No 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 Date: 3.2 (717)731-9502 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS ATTORNEY AT LAw 4076 MARKET STREET, SVITE 209 CAMP HILL, PA 17011 TELEPHONE 1717) 731.9502 r" 17171 731.9611 October 25,1999 VIA FACSIMILE AT 770-2553 AND US MAIL Robert P. Kline, Esquire 331 Bridge Street, Suite 350 P.O. Box 461 New Cumberland, PA 17070-0461 RE: Dorsey/Alarton Associates, Offer ofSerrlemenr Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of 5107,000.00 as settlement has been rejected by my clients. The Dorsey's counteroffer for a cash settlement is $145,000.00. The following is a list of problems with the settlement terms, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxton Associates will pay for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. It is also not agreeable that there be a future adjustment for expenses in the partnership checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would also be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. If a deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriff's Sale date will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it was clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. EA Robert P. Kline, Esquire October 25, 1999 Page 2 We welcome any fiuther discussions regarding settlement. Very truly yours, ?C Michael S. Travis MST/]m Distribution: James M. Ba;.h, Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) r ROBERT PETER HLEVE Attorney & Counsellor at Law 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, Pennsylvania 17070.0461 (717) 770-2540 fax (717) 770.2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSBVME AND FIRST CLASS MAIL E rl? ' 2D Re: Dorsey/Maxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of S 107,000.00 as full satisfaction for: (a) your clients' interest in the partnership; (b) any claims against the partnership, my client, her husband, New Insights. Inc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 50% of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that any tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the event your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach of the oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that I had just received in my office and forwarded to her, for any Dorsey/Maxton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. i Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriffs sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the sale of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, I have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concerns with the expenditure of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. I ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. my yours, ROBERT PETER KLINE, ESQUIRE RPK/srf cc: Glenda K. Maxton Gregory J. Katshir, Esquire PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. IN THE COURT OF COMMON PLEAS :CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOC dams ES, CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SNUFF & MASLAND 2109 Market Street post office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank)' James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attomey for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) B , Dated: ravts ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unsworn falsification to authorities. DATED: DATED: l y PNC BANK, NATIONAL ASSOCIATION, IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G NO. 99-4269 CIVIL DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS : D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION - LAW RETURN OF SERVICE PURSUANT TO PA. R.C.P. 3129.2(c)(2) (L1 Cjt 4 0v I-6 C, &5) AND NOW, this I Ith day of August, 1999, I, Karl M. Ledebohm, Esquire, of the firm of SAIDIS, SHUFF & MASLAND, attorneys for PNC Bank, National Association, Plaintiff, hereby certify that I served the persons listed below whose names appear in the Affidavit filed in this proceeding pursuant to Pa. R.C.P. 3129.1 with the Notice to Lienholders Pursuant to Pa. R.C.P. 3129.2 and legal description in the United States Mail, first class, with certificates of mailing (postal forms 3817) and contained within envelopes bearing my return address. Copies of these certificates of mailing are attached hereto and marked as Exhibit "A". PNC Bank, National Association 4242 Carlisle Pike Camp Hill, PA 17011 John E. Perry, Esquire Suite 200 320 Rear Bridge Street New Cumberland, PA 17070 Jean Jacobs Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 H.B. Zane Apartment 106 320 Rear Bridge Street New Cumberland, PA 17070 Cumberland County Tax Claim Bureau Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 Betsy Kahley and M. George Marburger Apartment 204 320 Rear Bridge Street New Cumberland, PA 17070 Binder Construction Apartment 108 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 202 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 204 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 208 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 106 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 206 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 108 320 Rear Bridge Street New Cumberland, PA 17070 New Insights, Inc. Tenant/Occupant Suite 96/98 Apartment 102 320 Rear Bridge Street 320 Rear Bridge Street New Cumberland, PA 17070 New Cumberland, PA 17070 Tenant/Occupant Apartment 104 320 Rear Bridge Street New Cumberland, PA 17070 Respectfully submitted, SAIDIS, SH FF & MASLAND By: IM P, )a arl . Lede ohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff POSTAL SERVICE CERTIFICATE OF_N?AI?1_NO_ MAY BE USED FOR DOMESTIC ANO INTEflNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Reaelved From: 71 One piece of ordinary mall addressed to: r PS Form 391 i, mar. itroo Racelved From YI 1 i 17 Ono piece of ordin ry mail addraesed to: A ??,•.? 11:4 __ ?i PS Form 3817, Mar. 1 GPO : 1993 0 - 15: ,i i b- V/I , J Exhibit "A" g % y M y@ 5 in mwv as ""o. FOR DOMESTIC AND INTERNATIONAL MAIL, DOES 1 PROVIDE FOR INSURANCE-POSTMASTEfl yy y mm0 3 n' O 1 3 3 3 Received From: ° ^ OmD .. - `7 . pp t 3 ?o g .?_?\ ?: 2 3 A - D IA I O m in h0: _.} a D One piece of dinary mall addressed to: - -. zm (^1 1 C 0 ? PS Form 3817, Met. 1989 GPO 1993 0 - 3: O D 0 f_ m V m N 0 m 0 N ON 1 <j l I a 0 .0 m m 0 " Cm Om> .'3 s O j is ..3 20m F ° 00 (? 0 r y 6 020 ??? I m2 ? _ V ? m 2 n . - Y T 3: ?3 0 F= z o G) 0 0 m J s as m b O u W O U U. S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONA1,M?IL, DOES NOT PROVIDE FOR INSURANCF•-POSTMASTER Received From:' I {?,?1? fl ir::; 1 One piece of ordinary mail addressed to: P$ Farm 3817, Mar. 1989 GPO : 1993 O - 151- U.S. POSTAL SERVICE CERTIFICATE OF MAILI MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL. DOES PROVIDE FOR INSURANCE-POSTMASTER Received From: One piece of ordinary mail addressed to: Ir. 1 PS Form 3817, Mar. 1989 GPO : 1993 0 - 1: ' ? _ Ya Yq•.YS eDe no of an? 3 m v m t0 0 e a w N 0 a I p} p 1 T R 3 33 r., a - Y S - p " I I U. S. POSTAL RVICE reRTIFICATE OF h AILI ems < to NG . MAY SE USED Ftlfl DOMESTIC AND INTERNATIONAL MAI mm 09 N L. DOES NOT PROVIDE FOR INSURANCE-PDSTMASTER lJ C m > a 1 Rectlved From: ' ni r N N \ O y Z M One Fiece of ordinary mail addnseed to: Cam s y . T . J o D PS Form 3817, Mar. 1989 CPO : 1993 0 - 15 0 F= in - I Received From:- -• • _ " N m 3 m m m T O u e W O M N n PS Form 3 817, Mar . 1989 CPO 1993 0 - 151-( One Piece of ordinary mail addressed to: w _ (t I . I ?A nc,-7 PS Form 3817, Mar. 1989 CPO 1993 0 - 151- U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL. DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: One oiece of ordinary mail addressed to: to % - 1 ?a tl F. IU << ?.. T O m V 9 m e 00 I- W 0 I .r ? 1 I a O tV m V m IJ 0I? Ir 8 3 o v 6 a of =,n°w PROVIDE FOR INSURANCE-POSTMASTER" ANAL mnLL, DOES NC ^p r.w ':;,e a,r,iaee Peealved From: uji "?iC.S, it (T l l .!G-r. i^;1 i_I n 1_r.11 1.11 1=111'1 rya:'' ----------------- .; -. -.. --- One Plaes of ordinary mail addressed to: ?f?•, 0 1 Form 3817, Mar. 1989 CPO 1993 O - 151 U.S. POSTAL SERVICE CERTIFIC ATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: r •I"I One piece or ordinary mail addressed to: 11 a C m a 0 •3 N c y - n „ m PS Form 3817, Mar. 1989 CPO : 1993 0 - 151 Tj . 4 !FI ,•ti T rnuvNE FOR INSURANCE-POSTMASTER 3 Received From: aD a? N Z 2 ^ One Piece of ortlin(ary mail addressed ta: PS Form 3817, Mar. 1989 CPO 1993 0 - 1 , 7 J C1F tOd m C) PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff : NO. all _?' ?F V. JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS : DB/A/ DORSEY/MAY.TON ASSOCIATES, Defendants TO THE PROTHONOTARY: CIVIL ACTION - LAW ENTRY OF APPEARANCE Please enter the appearance of the undersigned on behalf of PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., Plaintiff in the above captioned matter. Respectfully submitted, Date: ?l?lgI ?wl M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff SAIDIS, SHUFF & MASLAND r o? l j_ CJ T ?? PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff : NO. 99 y? 9 V. JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants CONFESSION OF JUDGMENT CIVIL ACTION -LAW AFFIDAVIT OF NON-MILITARY SERVICE TO THE PROTHONOTARY: I do certify to the best of my knowledge that the Defendants, Jean 0. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, in the above-captioned action are not presently on active or nonactive military status. Respectfully submitted, SAIDIS, SHUFF & MASLAND Date: By: ! K M. Ledebo , Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff Cc; LU C3;=. 4 LLal. (ZZ u"C ? i.:]Cl (? Ql U PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff NO. 94- 4D & 9 -? V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW CERTIFICATE OF ADDRESSES I hereby certify that the precise address of Plaintiff, PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., is 4242 Carlisle Pike, Camp Hill, PA 17011; that the last known address of the Defendants Jean 0. Dorsey and Dennis G. Dorsey is 322 West Green Street, Shiremanstown, Pennsylvania 17011-6521; that the last known address of the Defendant Glenda K. Maxton is 413 16th Street, New Cumberland, Pennsylvania 17070-1318; and that the last known address of the Defendant Dorsey/Maxton Associates is 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070 and 322 West Green Street, Shiremanstown, Pennsylvania 17011-6521. Respectfully submitted, SAIDIS, SHUFF & MASLAND Date: ) cI By azl M. Ledebo-f Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff WU .? p " O i cn UJ _ W.. .' c t .1 LLD _ -J LL. V m rn U 4 *4 PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff NO. 99-4269 CIVIL V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW PRAECIPE FOR WRIT OF EXECUTION UPON A CONFESSED JUDGMENT To the Prothonotary: Issue a writ of execution upon a judgment entered by confession in the above matter. (1) directed to the sheriff of Cumberland County; (2) against Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, Individually and as Co-Partners d/b/a Dorsey/Maxton Associates, defendants; and (3) against N/A garnishee; (4) and index this writ (a) against Jean 0. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, Individually and as Co-Partners d/b/a Dorsey/Maxton Associates, defendants; and (b) against N/A , as garnishee and levy upon and attach as required the following: (a) All that real estate of the Defendants situate and known and numbered as 320 Rear Bridge Street, Borough of New Cumberland, Cumberland County, Pennsylvania, also known as Lot Numbers 29 to 34 inclusive, Block K, Plan of General Plan of George W. Buttorff s Addition, recorded in the Cumberland County Recorder of Deeds Office at Plan Book N-5, Page 500, and as further described in the legal description attached hereto. (5) Amount due: Interest from June 29, 1999 Attorneys fees Costs $112,026.94 t/ at $23.66 per day (to be added) (to be added) (to be added) Certification I certify that (a) This praecipe is based upon a judgment entered by confession; and (b) Notice will be served with the Writ of Execution Pursuant to Rule 2958.2. Date: Respectfully submitted, SAIDIS, S FF & MASLAND ay Kazl M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 761-1881 Attorney for Plaintiff ALL THAT CERTAIN lot or piece of ground, lying and situate in the Borough of New Cumberland, County of Cumberland, and Commonwealth of Pennsylvania, more particularly described as follows: TRACT NO. 1: BEGINNING at a point on the Southwest corner of Locust Avenue and Ruby Avenue; thence Westwardly along Ruby Avenue, one hundred fifteen (115) feet, more or less, to Cedar Alley; thence Southwardly one hundred forty-seven (147) feet, more or less, to River Avenue; thence Eastwardly along River Avenue, one hundred fifteen (115) feet, more or less, to Locust Alley, thence Northwardly along said Locust Ailey one hundred forty-seven (147) feet, more or less, to Ruby Avenue, the place of BEGINNING. BEING Lots Nos. 29 to 34 inclusive, Block "K", in the General Plan of George W, Buttorff s Addition to New Cumberland, as recorded in the Cumberland County Recorder's Office in Deed Book "N", Volume 5, Page 500. HAVING THEREON ERECTED a storage shed, a one-story brick office building, a one-story cinder block building, a one-story stucco block building, and other improvements. Known and numbered as 320 Rear Bridge Street, New Cumberland, PA 17070. BEING the same premises which CCNB Bank, N.A., Executor of the Estate of Clarence G. Kitzmiller, by its deed dated November 20, 1991, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, on November 22, 1991, in Book K-35, Page 202, granted and conveyed unto Dorsey Maxton Associates. L _• r• ". k?s- CS, PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS ; DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW NOTICE UNDER RULE 2958.2 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANT'S RIGHTS TO: Jean 0. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, Individually and as Co-Partners d/b/a Dorsey/Maxton Associates A judgment in the amount of $112,026.94 has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The court has issued a Writ of Execution which directs the sheriff to levy upon and sell certain real property owned by you to pay the judgment. The sheriff' sale has been scheduled for December 8, 1999 at 10:00 a.m. You may have legal rights to defeat the judgment or to prevent or delay the sheriffs sale. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JDUGMENT OR DELAY OF THE SHERIFF'S SALE PRIOR TO THE SHERIFF'S SALE OR YOU MAY LOSE YOUR RIGHTS. II. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. 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 ti OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 Respectfully submitted, SAIDIS, SHUFF & MASLAND Date: By: Zjy? ? oW' - arl M. Ledebohm, Esquire upreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717)737-3405 Attorney for Plaintiff r. n: r; PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL DORSEY and GLENDA K. MAXTON, CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants CIVIL ACTION - LAW AFFIDAVIT PURSUANT TO RULE 3129.1 PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., Plaintiff in the above aciion, sets forth as of the date the Praecipe for the Writ of Execution was filed the following information concerning the real property consisting of all that certain lot or piece of ground, lying and situate in the Borough of New Cumberland, County of Cumberland, and Commonwealth of Pennsylvania more particularly known as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. 1. Name and address of owners or reputed owners: Dorsey/Maxton Associates Dorsey/Maxton Associates 320 Rear Bridge Street and 322 West Green Street New Cumberland, PA 17070 Shiremanstown, PA 17011-6521 2. Name and address of defendants in the judgment: Jean O. Dorsey and Dennis G. Dorsey 322 West Green Street Shiremanstown, PA 17011-6521 Glenda K. Maxton 413 16`s Street New Cumberland, PA 17070-1318 Dorsey/Maxton Associates 320 Rear Bridge Street New Cumberland, PA 17070 Dorsey/Maxton Associates and 322 West Green Street Shiremanstown, PA 17011-6521 3. Name and address of every judgment creditor (other than the Plaintiff herein) whose judgment is a record lien on the real property to be sold: None 4. Name and address of the last recorded holder (other than the Plaintiff herein) of every mortgage ofrecord: None 5. Name and address of every other person who has any record lien on the property: None 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: None 7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Cumberland County Tax Claim Bureau Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 New Insights, Inc. Suite 96/98 320 Rear Bridge Street New Cumberland, PA 17070 John E. Perry, Esquire Suite 200 320 Rear Bridge Street New Cumberland, PA 17070 Jean Jacobs Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 H.B. Zane Apartment 106 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 204 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 208 320 Rear Bridge Street New Cumberland, PA 17070 Betsy Kahley and M. George Marburger Apartment 204 320 Rear Bridge Street New Cumberland, PA 17070 Binder Construction Apartment 108 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 202 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 206 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 100 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 102 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 106 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 104 320 Rear Bridge Street New Cumberland, PA 17070 Tenant/Occupant Apartment 108 320 Rear Bridge Street New Cumberland, PA 17070 I, Karl M. Ledebohm, Esquire, attorney for the Plaintiff, PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A., verify that the statements made in this affidavit are true and correct to the best of my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. section 4904 relating to unswom falsification to authorities. Respectfully submitted Date: v!,/ l SAIDISKSHHUUE & MASLAND J By: _% . ebohm E Attorney for Plaintiff squire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 ? ?'' r ? ; c? ?.. ? ? ? ? . i - f `_. ?), (?' ? ?"? 1 i .' ? .. - i . t PNC BANK, NATIONAL ASSOCIATION, :IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW NOTICE OF SHERIFF'S SALE OF REAL ESTATE PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129 TAKE NOTICE: That the Sheriffs Sale of Real Property (real estate) will be held: DATE: December 8, 1999 TIME: 10:00 a.m. LOCATION: Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 THE PROPERTY TO BE SOLD is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) THE LOCATION of your property to be sold is: one tract of land situate in the Borough of New Cumberland, County of Cumberland and Commonwealth of Pennsylvania, known and numbered as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. THE JUDGMENT under or pursuant to which your property is being sold is docketed in the within Commonwealth and County to: PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A. v. Jean O. Dorsey, Dennis G. Dorsey and Glenda K. Maxton, Individually and as Co-Partners d/b/a Dorsey Maxton Associates, No. 994269 Civil, in the amount of One Hundred Twelve Thousand Twenty-Six and 94/100 Dollars ($112,026.94) plus interest from and including the date of the Complaint and judgment entered thereon at the rate of Twenty-Three and 66/100 Dollars ($23.66) per day, and costs of suit and for foreclosure of the mortgaged premises until the Sheriff Sale. THE NAMES OF THE OWNERS OR REPUTED OWNERS of this property are: Dorsey Maxton Associates. A SCHEDULE DISTRIBUTION, being a list of the persons and/or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and municipalities that are owed taxes) will be filed by the Sheriff of this County thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the Schedule of Distribution may be obtained from the Sheriff of the Court of Common Pleas of the within County at the Courthouse address specified herein. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. IT HAS BEEN ISSUED BECAUSE THERE IS A JUDGMENT AGAINST YOU. IT MAY CAUSE YOUR PROPERTY TO BE HELD. TO BE SOLD OR TAKEN TO PAY THE JUDGMENT. You may have legal rights to prevent your property from being taken away. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, YOU MUST ACT PROMPTLY. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE. OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 THE LEGAL RIGHTS YOU MAY HAVE ARE: I. You may file a petition with the Court of Common Pleas of the within County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or the procedure used against you. 2. After the Sheriffs Sale, you may file a petition with the Court of Common Pleas of the within County to set aside the sale for a grossly inadequate price or for other proper cause. This petition MUST BE FILED BEFORE THE SHERIFF'S DEED IS DELIVERED. 3. A petition or petitions raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of the within County. The petition must be served on the attorney for the creditor or on the creditor before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office - Civil Division, of the within County Courthouse, before a presentation to the Court. A copy of the Writ of Execution is attached hereto. Respectfully submitted, SAIDIS, SHU))! F & MASLAND Date: By: 1 K 1 M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff ALL THAT CERTAIN lot or piece of ground, lying and situate in the Borough of New Cumberland, County of Cumberland, and Commonwealth of Pennsylvania, more particularly described as follows: TRACT NO. 1: BEGINNING at a point on the Southwest comer of Locust Avenue and Ruby Avenue; thence Westwardly along Ruby Avenue, one hundred fifteen (115) feet, more or less, to Cedar Alley; thence Southwardly one hundred forty-seven (147) feet, more or less, to River Avenue; thence Eastwardly along River Avenue, one hundred fifteen (115) feet, more or less, to Locust Alley, thence Northwardly along said Locust Alley one hundred forty-seven (147) feet, more or less, to Ruby Avenue, the place of BEGINNING. BEING Lots Nos. 29 to 34 inclusive, Block "K", in the General Plan of George W. Buttorff's Addition to New Cumberland, as recorded in the Cumberland County Recorder's Office in Deed Book "N", Volume 5, Page 500. HAVING THEREON ERECTED a storage shed, a one-story brick office building, a one-story cinder block building, a one-story stucco block building, and other improvements. Known and numbered as 320 Rear Bridge Street, New Cumberland, PA 17070. BEING the same premises which CCNB Bank, N.A., Executor of the Estate of Clarence G. Kitzmiller, by its deed dated November 20, 1991, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, on November 22, 1991, in Book K-35, Page 202, granted and conveyed unto Dorsey Maxton Associates. PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. NO. 994269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A/ DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION -LAW WAIVER OF WATCHMAN Any deputy sheriff levying upon or attaching any property under within Writ may leave same without a watchman, in custody of whomever is found in possession, after notifying person of such levy or attachment, without liability on the part of such deputy or the sheriff to any plaintiff herein for any loss, destruction or removal of any such property before sheriffs sale thereof. Respectfully submitted, SAIDIS, SNUFF & MASLAND Date: I 6 cy BY: Ll' C, v"l Karl W. Ledebo , Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff _ r- ?' i ` i C . ,. .. TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 99-4269 CIVIL JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants State matter to be argued (i.e., plaintiff s motion for new trial, defendant's demurrer to complaint, etc.): Motion of the Sheriff of Cumberland County for Judgment on the Pleadings 2. Identify counsel who will argue case: (a) for plaintiff: Michael S. Travis, Esquire Address: 4076 Market Street, Suite 209 Camp Hill, PA 17011 (b) for defendants: Craig A. Diehl, Esquire Address: 3464 Trindle Road Camp Hill, PA 17011 Karl M. Ledebohm, Esquire Saidis, Shuff & Masland P.O. Box 737 Camp Hill, PA 17011 James S. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: April 26, 2000 Dated: .3-ro -C%> Edward L. Schorpp, Esquire Solicitor for Sheriff of Cumberland County PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW I hereby certify that a copy of the foregoing document, Praecipe for Listing Case for Argument, was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Karl M. Ledebohm, Esquire Saidis, Shuff & Masland 2109 Market Street P.O. Box 737 Camp Hill, PA 17011 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 BY. x1 Edward L. Schorpp, Esq. Dated: .3- 6o 100 a? _. i ' uiL- -_ :?:. i" ? `-=' ?r?' a --?, ?, , u_?, . ?_ -- i:_ : -? C.' G V PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW R. Thomas Kline, Sheriff of Cumberland County, by his Solicitor, Edward L. Schorpp, Esquire, respectfully moves this Court, pursuant to Pa. R.C.P. No. 1034 for judgment on the pleadings on the following: The Sheriff was never joined as a party in the within action by any of the other parties. 2. On December 29, 1999, the Honorable J. Wesley Oler, issued a rule upon certain named parties, "or any other party in interest;" the Sheriff of Cumberland County was copied on that rule. 3. Because of the ambiguity and uncertainty created by the rule of December 29, 1999, the Sheriff filed a response to the Petition to Set Aside Sheriff's Sale. 4. No party has averred any facts which evidence any impropriety in the Sheriff's sale which is the subject of this action, or in the performance of the duties of the Sheriff and his employees under applicable law. 5. The Sheriff of Cumberland County has not properly been made a party to the within proceedings and should be dismissed from it. 6. To the extent that the Sheriff was joined as a party, which is denied, he is entitled to judgment on the pleadings, as no facts averring a cause of action been averred with respect to the Sheriff's sale which is the subject of this action. 7. The pleadings are closed and disposition of this motion will not delay trial. 8. There are no genuine issues of material fact to be tried concerning the actions of the Sheriff, or his employees in this matter. WHEREFORE, the Sheriff of Cumberland County respectfully requests that this Court enter a judgment in his favor dismissing him as a party to the within action. Respectfully submitted, '=mss%g? . Edward L. Schorpp, Esq. Solicitor, Borough of Carlisle 127 West High Street Carlisle, PA 17013 (717) 243-9258 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A CIVIL ACTION - LAW DORSEY/MAXTON ASSOCIATES, Defendants I hereby certify that a copy of the foregoing document, Motion by the Sheriff of Cumberland County for Judgment on the Pleadings, was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Karl M. Ledebohm, Esquire Saidis, Shuff & Masland 2109 Market Street P.O. Box 737 Camp Hill, PA 17011 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 By:-/? - ?? Edward L.Schorpp, Esq. Dated: _7 G -00 i;? u? - ?_ _ ' ?D I r: i l_ f.? lJ ?J ?-? PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW ORDER OF COURT AND NOW, this ! `: { 4 day of March, 2000, upon consideration of the Motion for Consolidation for Argument by the Cumberland County Sheriff, and upon relation by the Sheriff's Solicitor that all counsel concur in the motion, an argument is hereby scheduled for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. Argument is hereby consolidated with the argument previously scheduled in this matter. Briefs are to be submitted at least 7 days before the date of argument. BY THE COURT, T. Wesley Oler, Jr., J. Ingo l? 3 05 4 rig=n-,:??c: CO K'• I;i N:2:1! PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL : CIVIL ACTION - LAW NOW COMES, R. Thomas Kline, Sheriff of Cumberland County, by his Solicitor, Edward L. Schorpp, Esquire, and respectfully moves this Court to consolidate argument upon the following: 1. On March 6, 2000, the Sheriff of Cumberland County moved for judgment on the pleadings in the within matter and requested that he be dismissed as a party. 2. On the same date, this motion was listed for argument court. 3. Thereafter, the Sheriff's Solicitor was furnished a copy of the Order of this Court dated February 29, 2000, scheduling argument for defendants Dorseys' motion for judgment on the pleadings for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1. 4. The Sheriff's Solicitor thereupon contacted counsel for all parties and obtained concurrence from each that the Sheriff's motion could be heard at the argument scheduled for April 10, 2000. WHEREFORE, the Sheriff requests your honorable Court to order argument upon his motion for judgment on the pleadings for Monday, April 10, 2000, at 2:30 P.M. in Courtroom No. 1, Cumberland County Courthouse. c- _- C) ?i Very Respectfully submitted, n y t ur X Cr 'p - Edward L. Schorpp, Es (f. rn Solicitor for Sheriff of Cumberland County 127 West High Street Carlisle, PA 17013 (717) 243-9258 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW I hereby certify that a copy of the foregoing document, Motion by the Sheriff of Cumberland County for Consolidation of Argument, was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Karl M. Ledebohm, Esquire Saidis, Shuff & Masland 2109 Market Street P.O. Box 737 Camp Hill, PA 17011 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 By?c=s2??2??- /? Edward L. Schorpp, Esq. Dated: s= ?s -n PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/ MAXTON ASSOCIATES,: Defendants IN COURT THE OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4269 CIVIL TERM PleoQSe place in Q(,t, `Tho.nLyev-1. ORDER OF COURT AND NOW, thisG j Iday of February, 2000, upon consideration of (a) Defendants Jean O. Dorsey and Dennis G. Dorsey's motion for Judgment on the Pleadings of Petition To Set Aside Sheriff's Sale Pursuant to Pa. R.C.P. 206.7, and (b) the response of Glenda K. Maxton to Motion for Judgment on the Pleadings, an argument is hereby scheduled for Monday, April 10, 2000, at 2:30 p.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. Briefs are to be submitted at least 7 days before the date of argument. BY THE COURT, J Wesley Oler,,Jr' 3 -,,? -oo RK3 OF rrFiLFI3-CLFlCNARY 00 MAR - I PH I'll CUA4PENNSYLVMV NlY Karl M. Ledebohm, Esq. 2109 Market Street Camp Hill, PA 17011 Attorney for Plaintiff Michael S. Travis, Esq. 4076 Market Street Suite 209 Camp Hill, PA 17011 Attorney for Defendants Dennis Dorsey and Jean Dorsey Craig A. Diehl, Esq. 3464 Trindle Road Camp Hill, PA 17011 Attorney for Defendant Glenda K. Maxton :rc PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. CAPTION OF CASE (entire caption must be stated in full) PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., (Plaintiff) VS. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, (Defendant) /999 No, 4269 Civil ACTION-LAW por-2'&&e 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to conplaint, etc.): Defendants Dennis and Jean Dorsey's Motion for Judgment on the Pleadings of the Petition to Set Aside Sheriff's Sale filed by Glenda Maxton, Defendant. 2. Identify counsel who will argue case: (a) for pjajfft=: Movant/Defendant: Michael S. Travis Address: 4076 Market STreet, Suite 209, CAmp Hill, PA 17011 (b) forte: REspondent/Defendant: Craig A. Diehl Address: 3464 Trindle Road, Camp Hill, PA 17011 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: April 19, 2000, which has been changed to April 26, 2000. Dated: 2/25/00 or Movant/Defendant -, ? ;, ,, 1 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/ MAXiON ASSOCIATES,: Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW PJPPk p /a ?C ? 1n - _,_._.. .......... 6,0 NO. 99-4269 CIVIL TERM ORDER OF COURT AND NOW, this 1' day of April, 2000, upon consideration of (a) the Motion by the Sheriff of Cumberland County for Judgment on the Pleadings and (b) Defendants Jean 0. Dorsey and Dennis G. Dorsey's Motion for Judgment on the Pleadings of Petition to Set Aside Sheriff's Sale Pursuant to PA R.C.P. 206.7, and following oral argument held on April 10, 2000, it is ordered and directed as follows: 1. The motion by the Sheriff of Cumberland Countv for judgment on the pleadings is granted; 2. The motion by Defendants Jean 0. Dorsey and Dennis G. Dorsey for judgment on the pleadings is denied. A HEARING on the merits of Plaintiffs' Petition To Set Aside Sheriff's Sale of Real Estate is scheduled for Thursday, June 29, 2000, at 9:30 a.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. Karl M. Ledebohm, Esq. 2 Market Street amp Hill, PA 17011 Attorney for Plaintiff Michael S. Travis, Esq. 4076 Market Street Suite 209 Camp Hill, PA 17011 Attorney for Defendants Dennis Dorsey and Jean Dorsey Craig A. Diehl, Esq. 3464 Trindle Road Camp Hill, PA 17011 Attorney for Defendant Glenda K. Maxton Edward L. Schorpp, Esq. 127 West High Street Carlisle, PA 17013 Solicitor for Cumberland County Sheriff's Office -? ? oa . a,`i o, :rc BY THE COURT, Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 Attorney for Defendants PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants NOTICE OF SERVICE OF REQUEST FOR PRODUCTION OF DOCUMENTS DIRECTED TO PLAINTIFF PNC BANK, N.A., SUCCESSOR BY MERGER TO CCNB BANK, N.A. TO THE PROTHONOTARY: Please take notice that defendants, Dennis and Jean Dorsey, have served a Request for Production of Documents to Plaintiff PNC Bank, N.A., Successor by Merger to CCNB Bank, N.A., upon Karl M. Ledebohm, Esquire, SAIDIS, SHUFF & MASLAND, 2109 Market Street, Post Office Box 737, Camp Hill, PA 17011-0737 tchael Str sAttorney for Defendants 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 Date: AprildV, 2000 ??? ?;, Law Offices of Craig A. Diehl 3464 Trindle Road Camp Hill, Pennsylvania 17011 Telephone(717)763-7613 Telecopier (717) 763-8293 Craig A. Diehl, Esquire, C.P.A. Linda A. Ciotfelter, Esquire May 31, 2000 Cumberland County Courthouse Office of the Prothonotary 3 South Hanover Street Carlisle, PA 17013 In Spring Grove. Pennsylvania 119 West Hanover Street Spring Grove, PA 17362 Telephone: (717) 225-1929 RE: PNC Bank v. Dorsey, et al. No. 99-4269 Civil VIA UPS NEXT DAY AIR Dear Representative: Please find enclosed for filing an original and two copies of a Petition for Continuance and a proposed Order for same. Please time-stamp the copies and return them to our office in the enclosed envelope. Thank you for your attention to this matter. Sincerely, Helen E. Rasmussen Legal Assistant /her Enclosures Cie cc: Karl M. Ledebohm, Esquire Michael S. Travis, Esquire James M. Bach, Esquire D Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL CIVIL ACTION - LAW ANSWER TO PETITION FOR CONTINUANCE To the Honorable J. Wesley Oler, Jr.: AND NOW COMES, Dennis and Jean Dorsey, by and through their attorney Michael S. Travis, and files the following in response to the Defendant Glenda K. Maxton's petition for a continuance: 1. Admitted. 2. Admitted in part, denied in part. Admitted that defendant Maxton filed a petition. Denied the implication that the petition was emergency in nature. No irreversible harm has been demonstrated to defendant Maxton. 3. Admitted. 4. Denied. Answering defendants are without knowledge or information to admit or deny the allegations of the corresponding paragraph of the petition and the same is denied. 5. Admitted. 6-9. Admitted on information and belief. 10. Denied. Answering defendants are without knowledge or information to admit or deny the allegations of the corresponding paragraph of the petition and the same is denied. 11. Admitted. 12. Denied. It is specifically denied that counsel for Glenda Maxton has not had ample time to engage in discovery to prove the merits of the allegations in her petition. By way of further answer, petitioning defendant and counsel have had nearly six months to engage in discovery and have taken no discovery. 13. Denied. Answering defendants are without knowledge or information to admit or deny the allegations of the corresponding paragraph of the petition and the same is denied. Further, any information belonging to PNC bank has no bearing on the value of the property at the sale, or petitioner's claim of bad faith against the answering defendants. 14. Denied. Petitioning counsel stated to answering defendants counsel that he had just met with the individuals mentioned in Paragraph 14 on May 25, 2000, more than a month after the Court set the pending hearing for June 29, 2000. 15. Denied. Answering defendants are without knowledge or information to admit or deny the allegations of the corresponding paragraph of the petition and the same is denied. 16 - 17.Denied. Answering defendants have produced copies of all documents requested by petitioning defendant. 18. Denied. Answering defendants are without knowledge or information to admit or deny the allegations of the corresponding paragraph of the petition and the same is denied. By way of further answer, because of the action taken by the petitioner, answering defendant has caused detrimental harm to the financial net worth of the answering defendants. Additional delay will only exacerbate the problem. Further, petitioning defendant has had substantial time to engage in discovery. 19. Admitted in part, denied in part. Admitted that answering defendants have requested a list of witnesses, summary of testimony and exhibits. Denied that the petitioner cannot reasonably provide this information. Nearly a month was provided to comply with the request. By way of further answer, a simple list of the witnesses, a brief summary of their testimony and exhibits is not a time consuming matter. 20. Admitted. By way of further answer, petitioner promised that if the Dorseys' did not acceed to her demands prior to the Sheriff's Sale, that she would compound litigation causing substantial delay. Petitioner's request, demonstrates an unwillingness to timely resolve the pending claim. 21. Admitted. WHEREFORE, answering defendants, Dennis and Jean Dorsey respectfully request that the petitioner's request for a continuance of the June 29, 2000 hearing be denied. Respectfully submitted, i ae . raves ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 Attorney for Dennis and Jean Dorsey VERIFICATION I veriftyy that the statements made in Answer to Petition for Continuance are true and correct. [understand that false statements heroin are made subject to the penalties of 19 Pa.C.S. Section 4904 relating to unswom falsification to authorities. DATED:,, // y DATED:*9A00Q Roe ILLY SIOU H TT46 TCL LTL YYd te:eo 00/zo; sa CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 Dated: Ohob B - i raves , ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Fax 731-9511 Attorney for Dennis and Jean Dorsey Y !; C'l ti r f x. F- C j y C U p p PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/ MAXTON ASSOCIATES,: Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION- LAW NO. 99-4269 CIVIL TERM ORDER OF COURT AND NOW, this day of June, 2000, upon consideration of Defendant Glenda K. Maxton's Petition for Continuance, and of the Answer to Petition for Continuance filed on behalf of Dennis and Jean Dorsey, Glenda K. Maxton's Petition for Continuance is denied. Karl M. Ledebohm, Esq. 2109 Market Street Camp Hill, PA 17011 Attorney for Plaintiff 141di -8.00 phi G BY THE COURT, nrt p- I?, •-3 ,'! 10: LS . n„ r?id'i??YL?L Michael S. Travis, Esq. 4076 Market Street Suite 209 Camp Hill, PA 17011 Attorney for Defendants Dennis Dorsey and Jean Dorsey Craig A. Diehl, Esq. 3464 Trindle Road Camp Hill, PA 17011 Attorney for Defendant Glenda K. Maxton James M. Bach, Esq. 352 South Sporting Hill Road Mechanicsburg, PA 17055 Attorney for the Partnership Edward L. Schorpp, Esq. 127 West High Street Carlisle, PA 17013 Solicitor for Cumberland County Sheriffs Office :rc )UN - 5 2 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL : CIVIL ACTION -LAW ORDER Upon consideration of the Petition for Continuance filed by Craig A. Diehl, Esquire, on behalf of Defendant, Glenda K. Maxton, IT IS HEREBY ORDERED; That the hearing scheduled for June 29, 2000 at 9:30 A.M. is continued until , 2000 at discovery as described in said Petition. M. to allow sufficient time to conduct Judge PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION -LAW PETITION FOR CONTINUANCE To The Honorable J. Wesley Oler, Jr: AND NOW COMES Defendant, Glenda K. Maxton, by and through her counsel, Law Offices of Craig A. Diehl, and respectfully presents this petition for continuance of the hearing scheduled for June 29, 2000, setting forth the following reasons and facts relied upon to justify a continuance: 1. Defendant, Glenda K. Maxton, filed her Petition to Set Aside Sheriffs Sale of Real Estate on December 17, 1999. - 2. Said Petition was an emergency filing by the undersigned counsel to comply with the time deadlines set forth at Pennsylvania Rules of Civil Procedure, Rules 3132 and 3135. 3. Defendant, Glenda K. Maxton, prior to the sheriff sale was represented by Robert P. Kline, Esquire. 4. Defendant, Glenda K. Maxton, substituted counsel following the sheriff sale to retain counsel experienced in technical real estate matters. 5. A Rule was granted by The Honorable J. Wesley Oler, Jr. on December 29, 1999 as to why the relief requested should not be granted. 6. Answers to the Petition to Set Aside Sheriff's Sale of Real Estate were received by the undersigned counsel from Defendants Dorseys on or about January 3, 2000, from the Sheriff of Cumberland County on or about January 10, 2000, and from PNC Bank on or about January 14, 2000. 7. Defendant, Glenda K. Maxton, filed her reply to PNC Bank's New Matter on February 3, 2000. 8. Two days later, on February 5, 2000, counsel for Defendant, Glenda K. Maxton, received Defendants Dorseys' motion for judgment on the pleadings of petition to set aside sheriffs sale pursuant to Pennsylvania Rule of Civil Procedure 206.7. 9. On or about March 15, 2000, an Order was entered by The Honorable J. Wesley Oler, Jr., scheduling argument for April 10, 2000 and briefs to be submitted at least seven days before the date of argument. 10. Counsel for Defendant, Glenda K. Maxton, concentrated his efforts from March 15, 2000 until April 10, 2000 on the motion filed for judgment on the pleadings. 11. On April 17, 2000, an Order was entered denying the motion for judgment on the pleadings filed by Defendants Dorseys and setting a hearing date for June 29, 2000. 12. Counsel for Glenda K. Maxton has not had ample time to engage in discovery necessary to prove the merits of the allegations set forth in her petition. 2 13. Information necessary to substantiate Defendant Maxton's case is in the hands of PNC Bank and Defendants Dorseys. 14. Defendant, Glenda K. Maxton, has been diligent in pursuing information needed for the hearing by interviewing prior counsel, Robert P. Kline and Gregory J. Katshir, and by interviewing prior PNC Bank employees. 15. Counsel for Defendant, Glenda K. Maxton, has been informed that due to the turnover of several key personnel at PNC Bank that were involved in this dispute, records and files are not readily accessible. 16. Pursuant to interviews with prior counsel, it has been learned that financial records of the partnership which are critical to the merits of the case are in the possession of Defendants Dorseys. 17. Counsel for Defendant, Glenda K. Maxton, seeks adequate time to request for inspection the production of partnership documents held exclusively by Defendants Dorseys. 18. Due to the substantial amount of equity that exists in the subject property and its impact on Defendant, Glenda K. Maxton's financial net worth, it is imperative that she have sufficient time to undertake timely discovery efforts. 19. Counsel for Defendants Dorseys has informally requested a list of witnesses together with a summary of their testimony and a list of exhibits that was received by the undersigned counsel on May 22, 2000 imposing a deadline of June 15, 2000. Defendant, Glenda K. Maxton, reasonably cannot provide this information without the opportunity to complete her discovery. 20. This is the first continuance requested by Defendant, Glenda K. Maxton. rll. cc a 4j,/ 10r D[ f"J h Adf ne t e,Nfer.GeJ t4r I e cb,'t-n tlsaL t. WHEREFORE, Defendant, Glenda K. Maxton, respectfully requests that this Honorable Court grant a continuance of this action and that all proceedings stay meanwhile. LAW OFFICES OF CRAIG A. DIEHL Dated:M-Y 34 2000 Craig . Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Counsel for Defendant, Glenda K. Maxton PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE AND NOW, this %31 51? day of 2000, the undersigned hereby certifies that a true and correct copy of the foregoing PFOR CONTINUANCE was served upon the parties listed below by way of United States first class mail, postage prepaid, addressed as follows: Karl M. Ledebohm, Esquire Michael S. Travis, Esquire SAIDIS, SHUFF & MASLAND 4076 Market Street, Suite 209 2109 Market Street Camp Hill, PA 17011 Camp Hill, PA 17011 (Attorney for Jean O. Dorsey (Attorney for PNC Bank, N.A.) and Dennis G. Dorsey) James M. Bach, Esquire 352 South Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) LAW OFFICES OF CRAIG A. DIEHL By: elen E. Rasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 ?17 C LLI cl U J W a b p w u j w ? G m LL. F ? W W V ? ' LL ? g LL a ? U a .? w H Q Q Q C7 ? V ? _ H rf U H U u % _ O Q C) W w z ? _ 7 2 cn ? Y W W O W C a U Z a L [v K H LL. wEx O O z v a E ? E Q c Q ? Q a r+t U n DFr 10 199 y1 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff V PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that a hearing is scheduled for the day of 2000, in Courtroom No. at M. to address the issues in the Petition and Answer thereto. Petitioner Glenda Maxton shall place a bond with the Court in the amount of $4,495.80 for payment of the monthly mortgage while the petition is pending for compensation of lost income of the subject property pending disposition. BY THE COURT, DisLibution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Sheriffs Sale of Real Estate as follows: 1 - 6. Admitted. ANSWER TO 1. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriff's Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation assumes a fully leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22, 1999, are attached hereto as Exhibit A.) The $145,000.00 number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. By way of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband john Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $137,500.00 to settle all issues before Sheriffs Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have obtained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written offer by the third party, the third party did not have a financing commitment, the offer required that an additional appraisal be made and that Glenda Maxton receive payoff of her perceived partnership value through a complicated note from the third party, none of which were certain. WHEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriffs Sale, or such other relief as the Court deems just and appropriate. II. SHERIFF'S SAANSWER TO LE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS JEAN O. DORSEY AND DENNIS G DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stem from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payment of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda Maxton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. By way of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriff s Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters had nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to rut forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The ash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maxton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriffs Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriffs Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriff s Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at $657,000.00 sold at Sheriffs Sale for $365,000.00 (56% of value), Dalessio v. Dalessio. 429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5% of value) J.B. Van Sciver Co. v. Smith. 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. By way of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have gone through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriffs Sale. The last offer of settlement was a negotiated value before the proper0• went to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had financing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication of a fair price at the sale. WHEREFORE, and because the Respondents have gone through the expense of sale, and have the obiigation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for filing a baseless petition, or in the alternative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of $ 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, 'tic ael S. Travis ID No 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 Date: 3.? (717)731-9502 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STREET. SUITE 209 CAMP HILL. PA 17011 TELEPHONE 17171 771.9602 1" 17171 7319611 VIA FACSII ME AT 770-2553 AND US MAIL Robert P. Kline, Esquire 331 Bridge Street, Suite 350 P.O. Box 461 New Cumberland, PA 17070-0461 October 25, 1999 RE: Dorseyfhlaxton Associates, Offer of Serrlemew Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of $107,000.00 as settlement has been rejected by my clients. The Dorsey's counteroffer for a cash settlement is 5145,000.00. The following is a list of problems with the settlement terms, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxton Associates will pay for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. It is also not agreeable that there be a future adjustment for expenses in the partnership checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would also be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. If a deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriffs Sale date will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it %vas clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. EIOIIBIT A A Robert P. Kline, Esquire October 25, 1999 Page 2 We welcome any further discussions regarding settlement. Very truly yours, Michael S. Travis MSTIm Distribution: James M. Bach, Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) r ROBERT PETER SLII1iE Attorney & Counsellor at Law 331 Bridge Street, Sufte 350 Post Office Box 461 New Cumberland, Pennsylvania 17070-0461 (717)770.2540 fax (717) 770.2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSIMILE AND FIRST CLASS MAIL H rl~ ?D Re: Dorsey.Maxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of $107,000.00 as full satisfaction for: (a) your clients' interest in the partnership; (b) any claims against the partnership, my client, her husband, New Insights, Inc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 501/6 of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that any tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the event your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach of the oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that I had just received in my office and forwarded to her, for any Dorsey/Maxton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriffs sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the sale of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, l have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concerns with the cxpenditure of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. 1 ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. 13. yours, ROBERT PETER KLINE, ESQUIRE RPK/srf cc: Glenda K. Maxton Gregory J. Katshir, Esquire PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) Dated: ,,'Is,?j jo0y 0 . ravis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unworn falsification to authorities. DATED: `-L:!i Q /c DATED: ? ? ? y PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO.99-4269 CONFESSION OF JUDGMENT CIVIL ACTION - LAW NOTICE You are hereby notified to file a written response to the enclosed Response of PNC Bank, National Association, Successor by Merger to CCNB Bank, N.A. to Petition to Set Aside Sheriff's Sale of Real Estate within twenty (20) days from service hereof or a judgment may be entered against you. SAIDIS, SNUFF & MASLAND Attorney for PNC Bank, National Association arl Ledebohm Esquire Supreme Court ID,#59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff NO.99-4269 V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : CIVIL ACTION-LAW RESPONSE OF PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A. TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE AND NOW, PNC Bank, National Association, successor by merger to CCNB Bank, N.A., through its attorneys Saidis, Shuff & Masland, and responds to the Petition To Set Aside Sheriffs Sale of Real Estate as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of this Paragraph, and the same are therefore denied. 5. Admitted. 6. Admitted. 7.19. Denied. After reasonable investigation, Respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these Paragraphs, and the same are therefore denied. NEW MATTER 20. The Sheriff's sale of the subject property was in all respects lawful and valid, as the Sheriff and Respondent complied with all applicable procedural and substantive law in exposing the property for sale and the Sheriff complied with all applicable procedural and substantive law in "knocking down" the property to the highest bidder. Petitioner has not averred any procedural or substantive defect in the Sheriffs sale. 21. Respondent bid the property at the Sheriff's sale to approximately $120,341.00. A third party unknown to Respondent and Jean O. Dorsey bid the property up to $211,000.00. 22. Under the circumstances of this sale, gross inadequacy of price is not a lawful basis for setting aside the Sheriffs sale, nor for ordering a new Sheriffs sale of the property. 23. To the extent that oppressive and bad faith conduct by the successful bidders prior to the Sheriffs sale is a lawful basis to set aside the Sheriff's sale, which is denied, Respondent was at all times without knowledge of any such conduct and was not a participant in any such conduct nor has Petitioner alleged that Respondent was in any way involved in such conduct. 2 24. Petitioners' allegations of bad faith conduct are strictly confined to the partners of Dorsey/Maxton Partnership and arise entirely out of a dispute between those partners concerning their rights under the relevant partnership agreement, and are not in any way relevant to the legal validity of the Sheriffs sale. Therefore, the dispute between the partners of Dorsey/Maxion Partnership is not properly before this Court in the form of a Petition to Set Aside Sheriffs Sale of Real Estate. 25. To the extent that Petitioners have alleged any basis upon which relief could be granted, no such basis has been averred against Respondent and Respondent should therefore be dismissed as a party to the within action. WHEREFORE, PNC Bank, National Association, successor by merger to CCNB Bank, N.A., respectfully requests that the Petition be dismissed and that Respondent be dismissed as a party to the instant action. Date: r /I Z- /G o Respectfully submitted, SAIDIS, SHUFF & MASLAND By: A--rl-4 Karl M. Ledebohm, Esquire Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for PNC Bank, National Association 3 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, INDIVIDUALLY AND AS CO- PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 : CIVIL ACTION - LAW CONFESSION OF JUDGMENT VERIFICATION I, Eric D. Krimmel, Assistant Vice President, being authorized to do so on behalf of PNC Bank, National Association, hereby verify that the statements made in the foregoing pleading are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unworn falsification to authorities. PNC BANK, NATIONAL ASSOCIATION Date: /111100 By: t'e'?'J Eric D. Krimmel e Assistant Vice President PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB : CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. NO.99-4269 JEAN 0. DORSEY, DENNIS G. DORSEY and GLENDA K. MAXTON, CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS : D/B/A DORSEY/MAXTON ASSOCIATES, Defendants CIVIL ACTION - LAW CERTIFICATE OF SERVICE AND NOW, this 11th day of January, 2000, I, Karl M. Ledebohm, Esquire, of the firm of Saidis, Shuff & Masland, hereby certify that I this day served a true and correct copy of PNC Bank, National Association's Response to Petition to Set Aside Sheriffs Sale of Real Estate upon the parties listed below via United States Mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Dennis and Jean Dorsey) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) Edward L. Schorpp, Esquire 127 West High Street Carlisle, PA 17013 (Solicitor for Cumberland Co. Sheriff) Respectfully submitted, Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff SAIDIS, SH F & MASLAND By. f4 ?? KazI?M. Ledebohm, Esquire z co `d ' 11 :: T: X111 CCCL a PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants RESPONSE OF THE CUMBERLAND COUNTY SHERIFF TO PETITION TO CF.T ASIDF SAi OF REAL ESTATE AND NOW, comes R. Thomas Kline, Sheriff of Cumberland County, by and through his Solicitor, Edward L. Schorpp, Esq., and responds to the petition to set aside Sheriff's sale as follows: 1-4. Denied. After reasonable investigation, respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these paragraphs and the same are therefore denied. 5-6. Admitted. 7-19. Denied. After reasonable investigation, respondent is without knowledge or information sufficient to form a belief as to the truth of the averments of these paragraphs and the same are therefore denied. NEW MATTER 20. The Sheriff's sale of the subject property was in all respects lawful and valid, as the Sheriff complied with all applicable procedural and substantive law in exposing the property for sale and in "knocking down" the property to the highest bidder. Petitioner has not averred any procedural or substantive defect in the sale. 21. Under the circumstances of this sale, gross inadequacy of price is not a lawful JAN - 7 2000 basis for setting it aside, nor for ordering a resale. 22. To the extent that oppressive and bad faith conduct by the successful bidders prior to the sale is a lawful basis to set aside the sale, which is denied, the Sheriff was not a participant in any such conduct. 23. To the extent that Petitioners have alleged any basis upon which relief could be granted, no such basis has been averred against the Sheriff and he should be dismissed as a party in the within action. WHEREFORE, the Sheriff respectfully requests that the petition be dismissed and that he be dismissed as a party in the within action. Very Respectfully Submitted, Edward L. Schorpp, Es q. Solicitor, Sheriff of Cumberland County 127 West High Street Carlisle, PA 17013 (717) 243-9258 I verify that the statements contained herein are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. §4904, relating to unswom falsification to authorities. R. Thomas Kline, heriff Dated: e ?; -rr1,1V PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A/ DORSEY/MAXTON ASSOCIATES, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. 99-4269 CIVIL CIVIL ACTION - LAW I hereby certify that a copy of the foregoing Response was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first-class mail, postage prepaid, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Glenda K. Maxton) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank) James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Dennis and Jean Dorsey) Dated: I-C-00 Edward L. Schorp" p / i. ,.. ..i ?' ii DEC 1 0 199 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of , upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of , upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that a hearing is scheduled for the day of 2000, in Courtroom No. at M. to address the issues in the Petition and Answer thereto. Petitioner Glenda Maxton shall place a bond with the Court in the amount of $4,495.80 for payment of the monthly mortgage while the petition is pending for compensation of lost income of the subject property pending disposition. BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731.9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Sheriffs Sale of Real Estate as follows: 1 - 6. Admitted. ANSWER TO 1. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriffs Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation assumes a fully leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22, 1999, are attached hereto as Exhibit A.) The $145,000.00 number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. Byway of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband John Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $137,500.00 to settle all issues before Sheriffs Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have obtained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written offer by the third party, the third party did not have a financing commitment, the offer required that an additional appraisal be made and that Glenda Maxton receive payoff of her perceived partnership value through a complicated note from the third party, none of which were certain. WHEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriff's Sale, or such other relief as the Court deems just and appropriate. ANSWER TO H. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS. JEAN O. DORSEY AND DENNIS G. DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stem from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payment of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda ? 4axton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. By way of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriff s Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters had nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to put forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The cash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maxton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriff's Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriff s Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriffs Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at $657,000.00 sold at Sheriffs Sale for $365,000.00 (56% of value), Dalessio v. Dalessio.429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5% of value) J.B. Van Sciver Co. v. Smith. 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. By way of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have gone through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriffs Sale. The last offer of settlement was a negotiated value before the property Trent to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had fmancing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication of a fair price at the sale. WHEREFORE, and because the Respondents have gone through the expense of sale, and have the obligation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for filing a baseless petition, or in the alternative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of S 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, .? tic ael S. Travis ID No 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 Date: 3. (717)731-9502 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS ATTORNEY AT LAW ?076 MARKET STREET, SUITE !OD CAMP MILL, PA 17011 TELEPHONE )717) 731•9302 /A% 1717) 731.9511 VIA FACSUv= AT 770-2553 AND US MAIL Robert P. Kline, Esquire 331 Bridge Street, Suite 350 P.O. Boa 461 New Cumberland, PA 17070-0461 October 25, 1999 RE: Dorsey/B7axton Associates, Offer ofSetrlemew Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of $107,000.00 as settlement has been rejected by my clients. The Dorsey's counteroffer for a cash settlement is 5145,000.00. The following is a list of problems with the settlement terms, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxton Associates will pay for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. It is also not agreeable that there be a future adjustment for expenses in the partnersMp checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would a'.so be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. If a deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriff's Sale date will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it was clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. EO1181T A C Robert P. Kline, Esquire October 25, 1999 Page 2 We welcome any further discussions regarding settlement. Very truly yours, Michael S. Travis MST/hm Distribution: James M. Bach, Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) r ROBERT PETER SLIIm Attorney & Counsellor at Law 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, Pennsylvania 17070.0461 (717) 770.2540 tax (717) 770.2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSUV13LE AND FIRST CLASS MAIL nrIC 2D Re: DorseyMaxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of 5107,000.00 as full satisfaction for: (a) your clients' interest in the partnership; (b) any claims against the partnership, my client, her husband, New Insights. htc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 50% of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that an), tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the event your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach of the oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that I had just received in my office and forwarded to her, for any Dorsey/Maxton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriffs sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the sale of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, I have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concerns with the cxpendit4re of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. I ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. ly yours, ROBERT PETER KLINE, ESQUIRE RPK/srf cc: Glenda K. Maxion Gregory J. Katshir, Esquire PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY : IN TIM COURT OF COMMON PLEAS : CUMBERLAND COUNTY PENNSYLVANIA MERGER TO CCNB BANK, N.A., , Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/AMTON ASSOCLATES , Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank)' James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) Dated: g ? '' '? IO?tel + ravels ` ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unswom falsification to authorities. DATED. - o-? DATED:C / r7 tic Dennis G. Dorsey J n 0. Dorsey DEC 2 o 199 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants RULE AND NOW, to wit, this 7 01 day of December, 1999, upon consideration of the foregoing Petition to Set Aside Sheriff's Sale of Real Estate, a Rule is granted upon PNC Bank, National Association, Jean O. Dorsey, and Dennis G. Dorsey, or any other party in interest to show cause, if any be had, why the relief requested should not be granted. Rule Returnable twenty (20) days from service. , r? BY THE COURT, J. ,?o?2tt/aJ ?xat. Jd-19.9 9 RKS cc: Craig A. Diehl, Esquire Cumberland County Sheriff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants AND NOW, to wit, this day of NO. 99-4269 CIVIL CIVIL ACTION - LAW ORDER 2000, upon consideration of the foregoing Petition to Set Aside Sheriffs Sale of Real Estate, it is hereby ORDERED and DECREED that the Petition is granted; and the parties are directed to: BY THE COURT, ,J. cc: Craig A. Diehl, Esquire Cumberland County Sheriff PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION - LAW PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE AND NOW COMES Petitioner, Glenda K. Maxton, individually, respectfully petitioning this Court to set aside the sheriff's sale of real estate situate and known as 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070 for the following reasons: I. Petitioner, Glenda K. Maxton, (hereinafter "Maxton") is an adult individual residing at 413 16th Street, New Cumberland, Pennsylvania 17070-1318. 2. Defendants, Jean O. Dorsey and Dennis G. Dorsey, (hereinafter "Dorseys") are adult individuals residing at 322 West Green Street, Shiremanstown, Pennsylvania 17011-6521. 3. Defendant, Dorsey/Maxton Associates, is a Pennsylvania general partnership with a business address at 320 Rear Bridge Street, New Cumberland, Pennsylvania 17070. 4. Defendant, Dorsey/Maxton Associates, is the legal fee simple owner of the subject premises. 5. Plaintiff, PNC Bank, N.A., pursuant to a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, foreclosed on the subject premises by having the subject property exposed at a Sheriffs Sale on December 8, 1999. 6. Defendants, Jean O. Dorsey and Dennis G. Dorsey, were the successful bidder at the sale for a sum of $211,000.00. 1. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Maxton avers that the fair market value of the property is in excess of $330,000.00. 8. Defendant, Jean O. Dorsey, had the property appraised in September, 1998 which set forth an appraised value of $332,000.00. 9. A week before the scheduled Sheriff Sale, the Dorseys demanded a buy-out of $145,000.00 from Maxton for their 50% partnership interest in the subject property which included unrelated, disputed amounts of $45,000.00 that pertain to other litigation set forth hereinafter. This net demand for approximately $100,000.00 creates a presumption that they believe the fair market value of the property to be approximately $320,000.00. 10. A day before the Sheriff Sale, the Dorseys orally agreed to accept $137,500.00 from Maxton with a last minute condition that the money be paid within twenty-four (24) hours. 11. Maxton had secured financing to pay off PNC Bank, N.A. and the Dorseys but could not settle within this time frame and prior to the scheduled Sheriff Sale. 2 12. Maxton had previously received a bona fide written offer from a third party to purchase the property for $350,000.00. WHEREFORE, Petitioner, Glenda K. Maxton, respectfully requests that this Court set aside the sheriff's sale for gross inadequacy of the sale price, order a resale of the property, or award such other reasonable relief as it deems appropriate. II. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS. JEAN O. DORSEY AND DENNIS G. DORSEY 13. The individual Defendants were partners in a partnership known as Dorsey/Maxton Associates. 14. The respective parties have been embroiled in some lengthy disputes which have resulted in three (3) separate civil lawsuits being docketed at 99-3179, 99-4983, and 99-4984. 15. Notwithstanding the noted litigation, counsel for the Dorseys led Maxton to believe that the Dorseys truly wanted Maxton to have the property as set forth in correspondence dated December 1, 1999. Said letter caused Maxton to detrimentally rely or believe that negotiations would be successful prior to the actual sale date. 16. However, the Dorseys, prior to the Sheriff's Sale, demanded a buy-out price of $145,000.00 which included $45,000.00 of disputed amounts that was the crux of the aforementioned lawsuits. By demanding that the disputed amounts be paid to avoid a sheriffs sale, said negotiations raise a presumption of oppressive and bad faith dealing that exploited 3 Maxton's financial condition, jeopardized Maxton's husband's place of business, and jeopardized his source to make a living that resulted in unfairness to Maxton. 17. Furthermore, the Dorseys' last minute condition of requiring cash within one day after dropping their accepted buy-out figure to $137,500.00 further creates a presumption of oppressiveness and bad faith dealing. 18. The gross discrepancy between the actual value of the property and the sum paid by the Dorseys raises a presumption of bad faith dealings. 19. Maxton is ready, willing, and able to tender to the Dorseys and PNC Bank, MA., the sum paid by the Dorseys at the execution sale, plus interest, or in the alternative, the fair market value of the property as determined by this Court. WHEREFORE, Petitioner respectfully requests that this Court for proper cause set aside the Sheriff's Sale for oppressive and bad faith conduct by the successful bidders prior to the sale, order a resale of the property, or require Maxton to pay the successful bidders based on the fair market value of the property, or order such further relief as this Court in its broad discretion believes is just and equitable. Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Dated: December 16, 1999 By: l ,.-VL1 C),tZ Craig A. Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Attorney for Petitioner, Glenda K. Maxton 4 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL CIVIL ACTION -LAW CERTIFICATE OF SERVICE I hereby certify that I have on this date served the Petition to Set Aside Sheriff's Sale of Real Estate on the person and in the manner directed below, which satisfies the requirements of Pa.R.C.P. 440. Service by first class, postage paid, United states mail addressed as follows: Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Camp Hill, PA 17011 (Attorney for PNC Bank, N.A.) Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Jean O. Dorsey and Dennis G. Dorsey) Service by hand delivery as follows: Cumberland County Sheriff Cumberland County Courthouse 3 South Hanover Street Carlisle, PA 17013 Date: December 17, 1999 LAW OFFICES OF CRAIG A. DIEHL By: Helen E. Rasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 i' j r _ J W Na? , p w (7 V' C U ^ EEC n LL O ? N W < o LL a O i 5 FZ U DEC 1 0 ?gqo V PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA X MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriff's Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that the Petition is Denied; and counsel fees are awarded to Respondent to be paid by Petitioner in the amount of BY THE COURT, Distribution: Craig A. Diehl, Esquire Attomey for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ORDER OF COURT AND NOW, this day of upon consideration of the allegations in the Petition of Glenda Maxton to Set Aside Sheriffs Sale of Real Estate and the Respondents' Answer thereto, it is hereby Ordered and Decreed that a hearing is scheduled for the day of 2000, in Courtroom No. at M. to address the issues in the Petition and Answer thereto. Petitioner Glenda Maxton shall place a bond with the Court in the amount of $4,495.80 for payment of the monthly mortgage while the petition is pending for compensation of lost income of the subject property pending disposition. BY THE COURT, Distribution: Craig A. Diehl, Esquire Attorney for Petitioner Michael S. Travis, Esquire Attorney for Respondents, Dennis and Jean Dorsey Karl M. Ledebohm, Esquire Attorney for Respondent PNC Bank, N.A. James M. Bach, Esquire, for the partnership Cumberland County Sheriff Michael S. Travis 1D No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717) 731-9502 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants ANSWER TO PETITION TO SET ASIDE SHERIFF'S SALE OF REAL ESTATE NOW COMES Defendants Jean O. Dorsey and Dennis G. Dorsey, by and through their attorney, Michael S. Travis, and responds to Glenda Maxton's Petition to Set Aside Sheriff's Sale of Real Estate as follows: 1 - 6. Admitted. ANSWER TO I. SHERIFF'S SALE SHOULD BE SET ASIDE FOR GROSS INADEQUACY OF PRICE 7. Denied. It is denied that the fair market value of the property is in excess of $330,000.00; Competitive bidding at the Sheriff's Sale on December 8, 1999, establishes a value of $221,000.00. 8. Admitted in part, denied in part. Admitted that an appraisal was performed in September 1998, by George Clauser, SRA. By way of further answer, the valuation assumes a fully leased, non-distressed property. The property in question is neither. 9. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $145,000.00 to buy out their partnership interest. By way of further answer, the $145,000.00 figure dates back to October 25, 1999. (A copy of the October 25, 1999, Dorsey counteroffer, and the Maxton Offer of October 22, 1999, are attached hereto as Exhibit A.) The $145,000.00 number was also conveyed to Glenda Maxton's counsel by telephone on September 14, 1999, in response to an oral offer of $95,000.00 by petitioner. Denied that disputes in the amount of $45,000.00 are unrelated to partnership issues. By way of further answer, all disputed sums derive from issues at the heart of partnership disputes. Denied that a net demand of $100,000.00 creates a presumption that the property is valued at approximately $320,000.00. By way of further answer, a demand by the Dorseys against Glenda Maxton is no indication of price. Approximately $70,000.00 is owed for back rents by Glenda Maxton and her husband John Maxton for space occupied by the Maxtons in the building, a larger share of any partnership interest is therefore due the Dorseys. 10. Admitted in part, denied in part. Admitted that the Dorseys would have accepted $137,500.00 to settle all issues before Sheriffs Sale. The Dorseys worked tirelessly to settle all partnership issues before the sale of the property. Denied that the demand for cash was last minute in nature. The demand was always for cash (See Exhibit A). By way of further answer, the unacceptable offer by Glenda Maxton, and subsequent offers through counsel, did not end all litigation, which was a condition before acceptance by the Dorseys. Glenda Maxton vowed through her counsel, and through her husband's counsel, that if the Dorseys did not agree to sell the property at the price the Maxtons wished to pay, that sale by the Sheriff would be only the beginning of litigation related to the partnership dispute. 11. Denied. Through counsel, Glenda Maxton's position was that she could raise some of the money, but only by postponing the sale, in addition to setting other conditions which were not agreeable to the Dorseys. By way of further answer, Glenda Maxton had promised a buyout and resolution to these issues for more than a year prior to the sale. 12. Admitted in part, denied in part. Admitted that Glenda Maxton claimed to have obtained a third-party offer. Denied that the offer was for $350,000.00 cash. The offer was not acceptable, and included terms not acceptable to the Dorseys. Principally, there was no written offer by the third party, the third part), did not have a financing commitment, the offer required that an additional appraisal be made and that Glenda Maxton receive payoff of her perceived partnership value through a complicated note from the third party, none of which were certain. WHEREFORE, Respondents, Dennis and Jean Dorsey, respectfully request that this Court dismiss the petition of Glenda Maxton, and order conveyance of the deed by Sheriff pursuant to the valid Sheriff's Sale, or such other relief as the Court deems just and appropriate. ANSWER TO II. SHERIFF'S SALE SHOULD BE SET ASIDE DUE TO OPPRESSIVE AND BAD FAITH CONDUCT ON THE PART OF DEFENDANTS JEAN O. DORSEY AND DENNIS G DORSEY 13. Admitted. 14. Admitted in part, denied in part. Admitted that three separate suits exist docketed at 99-3179, 99-4983, and 99-4984. Denied that the implication that the respondents are the cause of said suits. By way of further answer, the principal issues in dispute stein from the non- payment of rent for use of the partnership building by the petitioner, and her husband, John Maxton. It is the non-payment of the rents which has left the partnership insolvent and caused PNC Bank to foreclose on the building mortgage, to the financial detriment of the Dorseys. 15. Admitted in part, denied in part. Admitted that the Dorseys wished to sell the building to Glenda Maxton, and/or her husband. Denied that Glenda Maxton detrimentally relied or was lead to believe that negotiations would be successful before Sheriffs Sale. By way of further answer, the Dorseys made several offers, as early as May of 1999, both to buy the building from the partnership or to allow the Maxtons to buy the building from the partnership. None of these negotiations bore fruit. The Sheriffs Sale was the only calendar item which expedited any negotiation. 16. Admitted in part, denied in part. Admitted that the Dorseys would have accepted a buyout of $145,000.00. Denied, the implication that the counteroffer to settle disputed matters iad nothing to do with partnership issues. By way of further answer, the Dorseys were obliged to )ut forth a counteroffer for cash settlement on the demand of Glenda Maxton's counsel. The :ash payment of $145,000.00 was an amount acceptable to the Dorseys to settle all disputed issues arising out of the partnership. The $145,000.00 counteroffer was in response to the ridiculously low offer by Glenda Maxton to purchase the Dorsey partnership interest for $95,000.00 on September 14, 1999, and the subsequent written offer of Maxton for $107,000.00 dated October 22, 1999 (See Exhibit A). The Maxtons' financial situation speaks for itself, which was the cause of the partnership's inability to pay its mortgage and has no relevance to an agreeable price for purchase of the partnership interests at issue. 17. It is specifically denied that a reduction in the amount the Dorseys would accept to settle all partnership issues is oppressive. To the contrary, the willingness to reduce the amount needed to resolve all partnership issues demonstrates the utmost good faith in dealing. By way of further answer, cash was the only method put forth by the Dorseys to settle all disputes. Glenda Maxton's remedy for partnership miscount, if any, is found in the partnership agreement, not in a petition to set aside a Sheriffs Sale. 18. It is specifically denied that the discrepancy, if any, between the actual value of the property and the sum paid at Sheriffs Sale by the Dorseys raises a presumption of bad faith dealings. By way of further answer, a distressed property rarely commands a dollar value of a property not subject to Sheriffs Sale in mortgage foreclosure. Gross inadequacy of price not established where building appraised at $657,000.00 so;d at Sheriffs Sale for $365,000.00 (56% of value), Dalessio v. Dalessio 429 Pa. Super. 282 (1993), or property valued at $10,000.00 sold for $2,250.19 at Sheriffs Sale (22.5% of value) J.B. Van Sciver Co. v. Smith. 328 Pa Super. 487, 477 A.2d 550 (1984). 19. Denied. It is denied that Glenda Maxton is able to tender the amounts paid by the Dorseys on sale, or in the alternative, fair market value. By way of further answer, Robert P. Kline, Esquire, stated that the Maxtons could not raise even the lesser $137,500.00 to settle all issues before the sale. Even if true that the Maxtons could raise an amount of cash between $211,000.00 and 332,000.00 which they now claim they have, it is irrelevant. The Dorseys have ;one through the expense of obtaining financing, title insurance, counsel fees, distress and embarrassment of having the partnership property sold at Sheriff's Sale. The last offer of ettlement was a negotiated value before the property went to sale, and to avoid it. The Maxtons were aware of the pending sale and were able to bid on the property themselves if they had financing. Further, the petition of Glenda Maxton on the whole appears to state that she had no idea that the Dorseys intended to bid on the property at sale. To the contrary, her counsel warned that if the Dorseys did not accept the offer of Glenda Maxton, that others would be there on the day of the sale to bid against the property. There were up to twenty bids before the property sold to the Dorseys, which is the best indication of a fair price at the sale. WHEREFORE, and because the Respondents have gone through the expense of sale, and have the obligation to pay a note on the property pending the petition while delaying title to the property without income from the property, the Respondents request the following relief: a) That the petition of Glenda Maxton be dismissed and that counsel fees in the amount of $500.00 be paid for filing a baseless petition, or in the alternative; b) Should the Court determine that a hearing on the matter is in order, that Petitioner post a bond in the amount of $ 4,495.80 (3x monthly mortgage) for payment of the monthly mortgage of the loan obtained by the Dorseys, for lost income pending a hearing should the Dorseys prevail on the petition; c) or such other relief as the Court may deem just and appropriate. Respectfully submitted, 'Ivvhcchael S. Travis ID No 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 Date: 3.? (717)731-9502 Attorney for Respondents, Dennis and Jean Dorsey MICHAEL S. TRAVIS ATTORNEY AT LAW 4076 MARKET STRCET, SUITE !OD CAMP MILL, PA 17011 TELEPHONE 4717) 731-9502 FAX 17171 731.6611 VIA FACSIMILE AT 770-2553 AND US MAIL October 25, ] 999 Robert P. Kline, Esquire 333 Bridge Street, Suite 350 P.O. Boa 461 Nev, Cumberland, PA 17070-0461 RE: Dorsey/111a:ton Associates, Offer ofSettlemenr Dear Robert: Thank you for your letter dated October 22, 1999. Your client's offer of $107,000.00 as settlement has been rejected by my clients. The Dorsev s counteroffer for a cash settlement is 5145,000.00. The following is a list of problems with the settlement terms, other than the price, which are not necessarily exhaustive. My clients agree that Dorsey/Maxton Associates will pay for one-half of settlement costs, but if there is a shortfall in funds available from the partnership, the parties would share that amount, which is reflected in the counteroffer price. The failure of New Insights to pay rents caused the insolvency of the partnership. It is also not agreeable that there be a future adjustment for expenses in the partnership checking account. All expenses are legitimate. If a lump sum cash settlement is proposed, then any amounts disputed would also be reflected in the purchase offer as part of the deal. Settlement of all outstanding suits, and waiver of claims by New Insights are agreeable terms. If a deal is reached at this point, please be prepared for your client to provide a commitment letter from her lender that the purchase funds are available. An escrowed deposit will also be required. Lastly, no extensions beyond the December 8, 1999 Sheriff's Sale date will be accepted. If your client wishes to purchase the property, arrangements must be made for settlement prior to that date. My client's position is unchanged in that it was clear for sometime that the partnership would be terminated. My clients did not believe the mortgage could be renewed with PNC. E El isrr A l Robert P. Kline, Esquire October 25, 1999 Page 2 We welcome any further discussions regarding settlement. Very truly yours, i. Michael S. Travis MST1tm Distribution: James M. Bach, Esquire (via facsimile only) Mr. and Mrs. Dorsey (via facsimile only) r ROBERT PETER ]FLUM Attorney 6 Counsellor at Low 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, Pennsylvania 17070-0461 (717) 770-2540 fax (717) 770-2553 October 22, 1999 Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 VIA FACSUVME AND FIRST CLASS MAIL u ?+rl y ' 2D Re: Dorsey/Maxton Associates Dear Mike: My client believes she can obtain financing sufficient to pay off PNC Bank and pay to your clients the sum of $107,000.00 as full satisfaction for: (a) your clients' interest in the partnership; (b) any claims against the partnership, my client, her husband, New Insights, Inc. or 320 Management brought by Gary Dorsey, Jeannie Dorsey, or either of them in their role as partners in Dorsey/Maxton Associates, specifically including all claims for rent due from New Insights, Inc. or 320 Management and Gary Dorsey's claim against the partnership; and (c) any other interests your clients may have in any partnership claims against New Insights or any other tenant of the partnership real estate. This proposal presumes that your clients will be obligated to assume 50% of any expenses incurred to formally terminate the partnership, including the preparation of any final returns that may be required, and 50% of the usual and customary seller's expenses at settlement on the sale of the real property in the event that these expenses are not available in the partnership checking account. This proposal is valid only if the partnership has no other outstanding past due liabilities and no commitment for future liabilities beyond those specifically addressed in this correspondence, and that any tenant security deposits are in escrow and would be transferred to the new owner. In addition, I have been advised that in the event your clients agree to this proposal, John Maxton and New Insights, Inc. will waive any right they have to further litigate the issue of the Dorseys' breach ofthe oral partnership agreement involving 320 Management. This offer is further subject to adjustment after my client has had the opportunity to review the year-to-date financial statement that I had just received in my office and forwarded to her, for any Dorsey/Maxton checking account disbursement made since January 1, 1998 that is not a legitimate Dorsey/Maxton expense. l MICHAEL S. TRAVIS 'E ATTORNEY AT LAW V4 4076 MARKET STREET, SUITE 209 CAMP MILL, PA IJOII b?S "SA S CRAIG A. DIEHL, ESQUIRE 3464 TRINDLE ROAD CAMP HILL, PA 17011 I?IIIII???IIIIIIIIIIII?IIIII?I?I i .:r. Michael S. Travis, Esquire October 22, 1999 Page Two This proposal is made in hope that we can reach an amicable and reasonable compromise in order to resolve this partnership. As you are well aware, time is running short and action needs to be taken as quickly as possible to set the wheels in motion to have any transaction progress to a level that will satisfy PNC Bank to the point where it will be willing to postpone the sheriffs sale of the real property pending settlement. Both parties need to realize that they must be flexible in order for any realistic hope of resolution prior to the sale of the partnership's only substantial asset. I sincerely believe that my client and her husband, in making this proposal, have taken a substantial step in that direction. At this late date, if progress is not made toward reaching a resolution, I have recommended to my client that she institute legal action regarding the partnership which will not only raise the issues regarding her concerns with the expenditure of partnership funds by your clients, but will also raise the issue regarding your clients' refusal to renew the partnership loan with PNC Bank which has placed the only significant asset of the partnership in jeopardy. I ask that you please request that your clients give this matter their immediate attention and provide me with a response at the earliest possible time. my yours, ROBERT PETER KLINE, ESQUIRE RPK/srf cc: Glenda K. Maxton Gregory J. Katshr, Esquire PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. :NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants CERTIFICATE OF SERVICE I, Michael S. Travis, certify that I have this day served a true and correct copy of the foregoing document by first class mail, postage prepaid, on the following person, addressed as follows: Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 (Attorney for Petitioner) Karl M. Ledebohm, Esquire SAIDIS, SHUFF & MASLAND 2109 Market Street Post Office Box 737 Camp Hill, PA 17001-0737 (Attorney for PNC Bank)' James M. Bach, Esquire 352 S. Sporting Hill Road Mechanicsburg, PA 17055 (Attorney for Partnership) R. Thomas Kline, Sheriff One Courthouse Square Carlisle, PA 17013 (Hand-delivered) Dated: B vjs VIII raves ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 Attorney for Dennis and Jean Dorsey PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 994269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants VERIFICATION I verify that the statements made in this Answer to Petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unswom falsification to authorities. DATED: DATED: /? 9 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G.: DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES,: Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No. 99-4269 CIVIL TERM ORDER OF COURT ,?d lPr Pjzrf-<.c ?rlv AND NOW, this 29th day of June, 2000, upon consideration of the Petition To Set Aside Sheriff's Sale of Real Estate filed on behalf of Glenda K. Maxton, and of the Answer to Petition To Set Aside Sheriff's Sale of Real Estate filed on behalf of Jean 0. Dorsey and Dennis G. Dorsey, and following a hearing, the record is declared closed, and the matter is taken under advisement. Craig A. Diehl, Esquire 3464 Trindle Road Camp Hill, PA 17011 For the Petitioners Michael S. Travis, Esquire '?? 4076 Market Street, Suite 209 Camp Hill, PA 17011 For the Respondents wcy By the Court, rr . ? . Pc:VNSYLYG.?d?' Michael S. Travis ID No. 77399 4076 Market Street, Suite 209 Camp Hill, PA 17011 (717)731-9502 PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS : CIVIL ACTION - LAW CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants HEARING MEMORANDUM OF LAW ON THE ISSUE OF BAD FAITH In her petition to set aside sheriff's sale, Glenda Maxton raises two issues. The first that the sheriff's sale should be set aside for gross inadequacy of price. Defendants Dennis and Jean Dorsey have addressed this issue in their memorandum in support of their motion for judgment on the pleadings. Defendants incorporate their response and legal discussion herein by reference as though set forth in full. Petitioner also raises the issue that the sheriffs sale should be set aside due to oppressive conduct and bad faith on the part of Dennis and Jean Dorsey, this memorandum further addresses that issue. Petitioner argues that the failure to reach a resolution of partnership disputes prior to the sheriffs sale demonstrates oppressive or bad faith conduct. Even if the defendants had committed acts of oppressive negotiations or bad faith, which is denied, such conduct is an insufficient basis to set aside a sheriffs sale. Legal Discussion In the instant case, negotiations between the two parties failed, forcing the sale of partnership real estate. The real estate foreclosure was brought about by a third party, PNC Bank over which the defendant Dorseys had no control. By appearing at sheriffs sale to bid on the property, the Dorseys were in the same position as any stranger or bidder who arrived at the sale. The simple fact that the property did not command the price which the Maxton petition alleges does not show bad faith or oppressive conduct. It is hornbook law that bad faith and oppressive dealings are topics for common law contracts. Every contract imposes an obligation of good faith in the performance or enforcement. These provisions leave untouched the "negotiation" stage.' It is denied that the Dorseys employed oppressive or bad faith tactics at any stage leading up to the sale of the property, however, no deal was reached with respect to the negotiations, thus making the purchase at sheriffs sale an improper forum for a bad faith claim. In this instance Glenda Maxton simply could not raise the funds necessary to buy out her partner's interest. The Dorseys even reduced their demand amount from $145,000.00 to $137,500.00 to allow the Glenda Maxton to obtain funding to avoid the sale. This act demonstrates the utmost good faith in attempting to resolve the pending sheriff s sale. Nonetheless, negotiations failed, and the building went to the highest bidder. Each party was free to competitively bid the property to its fair market value. Glenda Maxton now claims that she has sufficient funds to buy out the Dorsey interest, however this has no bearing on the conduct leading up to and including the sale. Petitioner has failed to provide any law for the proposition that bad faith is a valid basis to set aside a sheriff s sale. The sheriffs sale was lawful in all respects and should be upheld. WHEREFORE, Defendants Dennis and Jean Dorsey request that the petition to set aside the sheriffs sale be denied, and that Sheriff be ordered to convey a deed to the Dorseys. Respectfully submitted, Michael S. Travis Attorney for Defendants Dennis and Jean Dorsey John P. Dawson, William Bumet Harvey, Stanley Henderson, Contracts. pp. 697. There appears to be no law on the issue of a bad faith or oppressiveness claim in the setting of a sheriffs sale. The term "bad faith" is not defined by statute. Doylestown Elec. Supply Co. v. M_arvland Cas. Ins. Co., E.D.Pa..1996, 942 F.Supp. 1018. The UCC does define "Good Faith" as honesty in fact, in the conduct or transaction concerned. 13 Pa. C.S.A. § 1201. PNC BANK, NATIONAL : IN THE COURT OF COMMON PLEAS ASSOCIATION, SUCCESSOR BY : CUMBERLAND COUNTY, PENNSYLVANIA MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/MAXTON ASSOCIATES, Defendants NO. 99-4269 CIVIL CIVIL ACTION -LAW LEGAL MEMORANDUM Petitioner, Glenda K. Maxton, has raised two issues in her Petition to Set Aside the Sheriff's Sale of Real Estate located at 320 Rear Bridge Street, New Cumberland, Pennsylvania, set forth as follows: 1. Should the Sheriff Sale be set aside for the gross inadequacy of the sales price; and H. Should the Sheriff Sale be set aside due to oppressive and bad faith conduct on the part of Jean O. Dorsey and Dennis G. Dorsey? 1. The Sheriff Sale should be set aside for the gross inadequacy of the sales price. The evidence presented at trial set forth the fair market value of the subject property at a range from $332,000 to $350,894. Opposing counsel has cited two cases in an earlier brief suggesting examples of cases whereby the courts have held the sales price not to be grossly inadequate. In both cases, Continental Bank v. Frank, 343 Pa. Super. 477, 495 A.2d 565 (1985) and Van Sciver Co. v. Smith, 328 Pa. Super. 487, 477 A.2d 550 (1984), a careful analysis will indicate why these courts held that the sales price was not grossly inadequate. In Continental Bank v. Frank, the property was sold for $245,000, while appellant claims that its value was in excess of $400,000. However, the court held, "Appellant failed to support this allegation of value by providing an accurate appraisal by experts or other competent evidence." Id. at 568. It further noted that mere assertion of value of property by party is not enough. Id. at 568. Thus, the court did not really decide the issue of gross inadequacy of price since no credible evidence was presented to establish fair market value. Likewise, in Van Sciver Co. v. Smith, the subject property was assessed for $8700 and sold at sheriff sale for $6300. Appellants therein argued that their property was worth three times that amount. However, once again, no evidence was before the court below to sustain that claim. The court noted, "We will not assume, as appellants ask us to do, that the property was worth any specific amount based upon its assessed value." Id, at 551. Accordingly, the court decided while gross inadequacy of price may be grounds to set aside such a sale, if equity compels such a result, we cannot set aside a sale for that reason when the appellant has produced no more evidence of the value of the real estate than was produced here. Id. at 551. Interestingly, the case most focused on by opposing counsel in his prior brief, Dalessio v. Dalessio, 429 Pa. Super. 282, 632 A.2d 566 (1993) provides this court with the substantive basis to set aside the sheriff sale in the case sub judice. In the Dalessio case, the property sold at sheriff sale for $375,000 when the appellant had an appraisal of $657,000. However, the appellee's appraiser set the fair market value of the property at $365.000. This court held, 2 the sale price is closely in line with the $365,000 value assigned by appellee's appraiser. Thus, the sale price here is within a reasonable, acceptable range as established by the evidence before the trial court." Id. at 569. The court further stated that the sale price, when compared to appellee's appraiser's valuation, certainly does not "shock the conscience." Id. at 569. However, the court was quick to point out that had the court not been presented with evidence other than that given by appellant's appraiser, a different result may have been warranted. Thus, it is clear that the court would not have made the same decision if it considered $657,000 to $375,000. (Ratio of 57%: sale price _ fair market value). In the case at bar, the only evidence of value is a range of $332,000 to $350,894. Taking an average of the two values results in a fair market value of $341,447. Accordingly, the ratio in our case is 61.8°/x. Petitioner, Glenda K. Maxton, submits that the sales price is grossly inadequate. She further argues that when you combine the fact that on three separate occasions the sale could have been avoided with some cooperation on the part of the Dorseys, this certainly does shock the conscience of a reasonable, prudent person. II. The Sheriff Sale should be set aside due to oppressive and bad faith conduct on the part of Jean O. Dorsey and Dennis G. Dorsey. The beginning premise in the instant case is that Glenda K. Maxton and the Dorseys were partners in a partnership known as Dorsey Maxton Associates. It is basic partnership law that partners stand in fiduciary relationship to copartners, each being under a duty to act for the benefit of all and if the partnership has terminated, assets must be handled in accordance with such fiduciary principle. Bracht v. Connell, 313 Pa. 397, 170 A. 297 (1933). To suggest that 3 this occurred in our instant proceeding is the furtherest thing from the truth. Not only did Jean 0. Dorsey fail to act in accordance with the partnership agreement, she intentionally and willfully in bad faith breached said agreement. Specifically, at trial, testimony revealed that she failed to turn over business records when requested by Glenda K. Maxton, she paid for personal expenses out of the partnership account without consulting Glenda K. Maxton, she hired an attorney, James M. Bach, to represent the partnership without consulting with Glenda K. Maxton, she disbursed checks in excess of $200 without approval of her partner, and she purposely refused to settle other pending disputes which resulted in her tacticly using the sheriff sale to gain a substantial windfall to the detriment of her partner, Glenda K. Maxton. However, the most oppressive conduct determined at trial was when Jean O. Dorsey admitted that she took the approximate $90,000 in excess proceeds following the sheriff sale. It has been held that oppressive and bad faith conduct on the part of the judgment creditor that results in unfairness to defendant may justify setting aside a sheriff sale. M. Barmann & Sons v. Dice, 74 D&C 2d 608 (1976). This same principle should be extended to a copartner that engages in such conduct that results in unfairness to another partner. The court heard testimony about a March 17, 1999 letter sent to the Dorseys' address whereby the bank agreed to refinance the loan to the partnership. This Court must determine the credibility of the two different stories from each respective witness. Glenda K. Maxton testified that Mr. Dorsey brought the letter to her and informed her that he and his wife would not agree to sign new loan documents. Mrs. Dorsey testified that the letter was given to Glenda K. Maxton unopened and she had no knowledge that PNC Bank had agreed to refinance the balloon note. However, it is undisputed that an April 16, 1999 letter from Attorney Kline to the Dorseys 4 notified them that their refusal to refinance was a breach of the partnership agreement. Mrs. Dorsey testified that she did not believe it and thought it was "attorney talk." Closer to the sheriff sale, the Dorseys refused to execute an agreement whereby a full price offer of the appraised value was offered by Mr. Daniel Boreneman. At that time, unless financial concessions on other disputed items were resolved favorably to the benefit of the Dorseys, they again refused to sign the full price offer. Said actions clearly reflect the Dorseys' self interests and the deceptive scheme used to hold Ms. Maxton as a financial hostage in breach of the good faith duty required by their partnership agreement. Finally, a week before the sheriff sale occurred, PNC Bank was still willing to postpone the sale as long as an agreement was reached between the parties resolving their disputes and a valid financing commitment was in place. The financing commitment was in place, however, the Dorseys again refused to cooperate because now they could see the "windfall" awaiting them at the sheriff sale. Pennsylvania Rule of Civil Procedure 3132 states: "Upon petition of any party in interest before delivery of the personal property of the sheriffs deed to real property, the court may, upon proper cause shown, set aside the sale and order a resale or enter any other order which may be just and proper under the circumstances." The term proper cause is not set forth in the Rules. Furthermore, this Court has broad discretion to determine an equitable result. Glenda K. Maxton submits that an equitable result when considering the totality of the facts presented, would be that proper cause exists to order a resale or to enter any other order which may be just and proper under the circumstances. 5 Respectfully submitted, LAW OFFICES OF CRAIG A. DIEHL Dated:_ TT3 10oo By: l.w,., d. C 1 Craig . Diehl, Esquire Attorney ID No. 52801 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 Attorney for Defendant Glenda K. Maxton PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN O. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4269 CIVIL : CIVIL ACTION -LAW CERTIFICATE OF SERVICE AND NOW, this 5 day of July, 2000, the undersigned hereby certifies that a true and correct copy of the foregoing LEGAL MEMORANDUM was served upon the parties listed below by way of United States first class mail, postage prepaid, addressed as follows: Michael S. Travis, Esquire 4076 Market Street, Suite 209 Camp Hill, PA 17011 (Attorney for Jean 0. Dorsey and Dennis G. Dorsey) LAW OFFICES OF CRAIG A. DIEHL B Helen E. Rasmussen, Legal Assistant 3464 Trindle Road Camp Hill, PA 17011 (717) 763-7613 JUL 0 5 2000 PNC BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CCNB BANK, N.A., Plaintiff V. JEAN 0. DORSEY, DENNIS G. DORSEY AND GLENDA K. MAXTON, INDIVIDUALLY AND AS CO-PARTNERS DB/A DORSEY/ MAXTON ASSOCIATES,: Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4269 CIVIL TERM (? ORDER OF O iRT AND NOW, this (2' ""day of July, 2000, upon consideration of the Petition To Set Aside Sheriff's Sale of Real Estate filed on behalf of Glenda K. Maxton, and of the Answer to Petition To Set Aside Sheriffs Sale of Real Estate filed on behalf of Jean 0. Dorsey and Dennis G. Dorsey, and following a hearing at which Glenda K. Maxton was represented by Craig A. Diehl, Esq., and Jean O. Dorsey and Dennis g. Dorsey were represented by Michael S. Travis, Esq., the petition to set aside the Sheriffs sale is denied. NOTHING IN THIS ORDER is intended to represent a finding as to the proper distribution of partnership proceeds of the sale. BY THE COURT, .rJ II': t . .., ..: ^t: 1 Craig A. Diehl, Esq. Attorney for Petitioner (Glenda K. Maxton) Michael S. Travis, Esq. 4076 Market Street Suite 209 Camp Hill, PA 17011 Attorney for Respondent (Jean O. Dorsey and Dennis G. Dorsey) Karl M. Ledebohm, Esq. 2109 Market Street Camp Hill, PA 17011 Attorney for PNC Bank, N.A. 7.1-4-04 :rc PNC BANK, NATIONAL ASSOCIATION, : IN THE COURT OF COMMON PLEAS SUCCESSOR BY MERGER TO CCNB CUMBERLAND COUNTY, PENNSYLVANIA BANK, N.A., Plaintiff V. : NO. 99-4269 CIVIL JEAN 0. DORSEY, DENNIS G. DORSEY : and GLENDA K. MAXTON, : CONFESSION OF JUDGMENT INDIVIDUALLY AND AS CO-PARTNERS D/B/A DORSEY/MAXTON ASSOCIATES, Defendants CIVIL ACTION - LAW PRAECIPE TO THE PROTHONOTARY: Please mark the judgment entered in the above-captioned action satisfied. Respectfully submitted, SAIDIS, SHUFF, FLOWER & LINDSAY Date: January 25, 2005 By: % eoffiy Shuff, Esquire Supreme ourt ID #24848 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff y [?{ L7 N ? ? _.. tJJCJ CV -?.-? UCH F? -, Qn C? ? ? - wci N ?LUJ K ,[i LL CJ }J N `' U