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HomeMy WebLinkAbout99-04435e J ? 2 N I IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of Carl Pederson, No.: 99-4435 Type of Case: Civil Action Plaintiff(s) Type of Pleading: TRIAL BRIEF V. STEVEN M. HOUCK and JACK JOSEPH SPICER, Defendant(s) JURY TRIAL DEMANDED Filed on Behalf of Plaintiff: INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA Counsel of Record for this Party: Patricia Haas Corll, Esquire Court I.D. No.: 59238 Defendants WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLC 800 North Third Street, Second Floor Harrisburg, PA 17102 (717) 237-6940 Counsel of Record for Adverse Party: Richard H. Wix, Esquire IN T IIE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL AC'T'ION - LAW INSURANCE PLACEMENTFACILITY OF PENNSYLVANIA, as Subrogee of No.: 99-4435 Carl Pederson, Plaintiff(s) V. STEVEN M. HOUCK and JACK JOSEPH SPICER, Defendant(s) PLAINTIFF'S INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, A/S/O CARL PEDERSON, TRIAL BRIEF 1. STATF.MFNT OF FACTS: This action arises from a fire that occured on July 23, 1997 at Tau Kappa Epsilon Fraternity house. The house was largely destroyed by this fire. On or about April 23, 1999, a Complaint was filed against Steven M. Houck and James E. Spicer at docket 99-2441. '['his Complaint alleged two Counts - one in negligence and one in breach of contract. On July 22, 1999 it second Complaint was filed in this matter at docket 99-4435. This Complaint was filed against Steven M. Houck and Jack Joseph Spicer, apparently the brother of the originally named James E. Spicer. This Complaint also alleged negligence and breach of contract. A motion to consolidate the two actions was filed on August 8, 2001, as the Complaints were virtually identical, with the exception of the substitution of Jack Joseph Spicer as a party for his brother James E. Spicer. This Motion was grated by the Honorable Edgar J. Bayley on August 9, 2001. Prior to the consolidation of these cases, a default judgment was obtained against Jack Joseph Spicer on or about September 3, 1999. Thus, the only issues to be decided are the negligence and breach of contract issues against Defendant Steven M. Houck and the damages flowing therefrom and the damages attributable to Defendant Jack Joseph Spicer. II. NEGLIGENCE AS TO DEFENDANT HOUCK To establish a viable cause of action in negligence, a pleader must aver in his complaint the following elements: 1) a duty or obligation recognized by the law requiring the actor to conform to a certain standard of conduct for the protection of others against unreasonable risks of failure on the person's part to conform to the standard required; and 2) a breach of the duty; and 3) a reasonably close causal connection between the conduct and the resulting injury and actual loss or damage resulting to the interest of another. See Ferry v. Fisher, 709 A.2d 399, 402 (Pa. Super. 1998). See also, JEJ v. Tri-County Big Brothers Big Sisters, Inc., 692 A.2d 582 (Pa. Super. 1997)( holding that the elements of negligence are duty owed, a breach of that duty, a causal connection between the breach and the resulting injury and actual damages or loss). Thus, as we examine Defendant Houck's conduct, the threshold question in negligence is whether Mr. Houck owed a duty to Dr Pederson, and hence to the Plaintiff in this matter, Insurance Placement Facility. Section 323 of the Restatement (2d) of Torts has been cited and discussed in over 100 cases in the Commonwealth of Pennsylvania. See Filter v. McCabe, 1999 Pa. Super. 143, 733 A.2d 1274 (Pa. Super. 1999). More importantly, § 323 of the Restatement 2d of Torts has been adopted as an accurate statement of the law in this Commonwealth by the Pennsylvania Supreme Court. $" Gradel v. Inouve, 491 Pa. 534, 421 AN 674 (1980); DeJesus v. Liberty Mutual Insurance Co„ 423 Pa. 198, 223 A.2d 849 (1966). This section states as follows: "One who underlakcs.bratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of the other's person or JhjM,, is subicct to liability to the other for physical harm resulting [font Iris failure to exercise reasonable care to perform his undertaking, if (a) his failure to exercise such care increased the risk of harm, or (b) the harm is suffered because of the other's reliance upon the undertaking. §323 of the Restatement (2d) of Torts (emphasis added). Expanding upon the application of §323, the drafters indicated that [TJ 's Section al]j2lics to any undertaking to render services to another which the defendant should recognize as necessary for the protection of the other's person or jUM. It applies whether the harm to another or his things results from the defendant's negligent conduct in the manner of his performance of the undertaking or from his failure to exercise reasonable care to complete it or protect the other while he discontinues it. Continent A: §323 Restatement 2d of Torts (emphasis added), See also Feld v. Merriam, 506 Pa. 383, 485 A.2d 742 (Pa. 1984). Moreover, as the comments to Section 323 make it clear, once an individual undertakes to perform an action, even in the absence of a duty to do so, he must act non-negligently to protect 3 the other's person OR THINGS. Indeed, the Superior Court has discussed the application of Section 323 in a property damage case which arose from the failure of a utility to wam property owners that it was going to release flood waters from a lake behind a hydro electric dam. In Engle v. West Penn Power, 409 Pa. Super. 462, 598 A. 2d 290 (1991), the issue was whether West Penn Power was negligent in improperly obstructing or releasing flood waters from the Lake Lynn Dam and/or in failing to adequately notify the individuals or entities who ultimately suffered property damage. 409 Pa. Super. at 468. The failure to wam theory was brought under Section 323 of the Restatement 2d of Torts. 409 Pa. Super. at 471. Here too, Section 323 applies to Defendant Houck, and imposes a duty upon him, which he breached. Moreover, under §323, once a Plaintiff has introduced evidence that a defendant is negligent, there is a relaxed standard for causation - whether the defendant's conduct increased the risk of harm to Plaintiff's property. It then becomes a question for the jury as to whether or not that increased risk was a substantial factor in producing the harm. Hamil v. Bashline, 481 Pa. 256, 269, 392 A.2d 1280, 1286 (1978). III. BREACH OF CONTRACT AS TO HOUCK Defendant Houck admitted in his deposition that he signed a lease agreement with Carl Pederson, the Plaintiff's insured in this matter. This contract was also made part of the pleadings in this case as it was appended to and referenced in both Complaints in this matter. Specifically, it is alleged that Defendant Houck breached paragraphs 6 and 8 of the Agreement. These items specifically state: REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement DUE CARE/APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's Property, to give notice to Owner or Agent of the need for repair thereof, and to pay for all repairs to the apartment its contents and to all other parts of Owners or Agent's property which are necessitated by any act or lack of care on the part of Resident, members of Resident's family or his visitors Rental Contract (emphasis added and in original). While due care is predominantly discussed in the negligence context, it has been defined, nevertheless as, " the care which a reasonable prudent person would exercise under the conditions set forth by the facts of the case." Brown v. Tinneny, 280 Pa. Super. 512, 421 A.2d 839(1980). Thus, Defendant Houck agreed to act as a reasonable prudent person in the use of the premises, appliances and property he leased from Dr. Pederson. If he did not, he is liable in breach of contract for all the repairs to the property necessitated by his conduct. IV. JOINT AND SEVERAL LIABILITY On June 19, 2002 Senate Bill No. 1089 was signed into law. This Act, now known as Act 57, in essence does away with the law ofjoint and several liability in the Commonwealth of Pennsylvania. However, it is not applied retroactively. Indeed, Act 57 which took effect on August 18, 2002 is only applicable to causes of action accrued after that date. Here the cause of action accrued in 1997, and the case was filed in 1999. Thus the provisions of Title 42 Section 7102 which allow for a plaintiff to recover the full amount of the allowed recovery from any defendant against whom the plaintiff is not barred are applicable herein. Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP Pam Haas ll, Esquire P . Su rem C urt I.D. No.: 59238 00 N rth ; ird Street, 2nd Floor Ha .sbur , PA 17102 Phone: 717.237.6940 Fax: 717-237-6949 Counsel for Plaintiff Dated: July, 2003 CERTIFICATE OF SERVICE I, Patricia Haas Corll, Esquire, hereby certify that I am this day serving a copy of the foregoing Plaintiffs Trial Brief via hand delivery upon the below persons(s) which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure. July, 2003 Richard Wix, Esquire Wix Wenger & Weidner 4705 Duke Street Harrisburg, PA 17100 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of Carl Pederson, Plaintiff(s) Docket No.: 99-4435 Oler, J. V. STEVEN M.HOUCK and JACK JOSEPH SPICER Defendants Ab PLAINTIFF'S PROPOSED POINTS FOR CHARGE AND NOW, comes the Plaintiff, by and through its counsel, Patricia Haas Corll, Esquire and Weber, Gallagher, Simpson, Stapleton, Fires & Newby, LLP, and respectfully request this Honorable Court to instruct the jury on the law as set forth below: Binding Instructions 1. Under the law and evidence your verdict must be in favor of the Plaintiff, Insurance Placement Facility of Pennsylvania and against Defendant Jack Joseph Spicer on all claims of negligence because a Default Judgment has been entered against Defendant Spicer. ACCEPTED: REJECTED MODIFIED 2. Under the law and the evidence, your verdict must be in favor of Plaintiff, Insurance Placement Facility of Pennsylvania, and against Defendant Steven M. Houck on all claims of negligence. ACCEPTED: REJECTED MODIFIED 3. Under the law and the evidence, your verdict must be in favor of Plaintiff, Insurance Placement Facility of Pennsylvania and against Defendant Steven M. Houck on all claims of breach of contract. ACCEPTED: REJECTED MODIFIED 4. The admissions of fact made by defendant Houck in his Answer to the Complaint or in testimony have been offered by the Plaintiff and received in evidence. Defendant Houck is bound by these admissions. PSSJI§ 2.1 (Civ.). ACCEPTED: REJECTED MODIFIED 5. The Plaintiff claims that it was injured and sustained damages as a result of the negligent conduct of the defendant. The Plaintiff has the burden of proving its claims. Defendant Houck denies the Plaintiff's claims and asserts as an affirmative defense that the Plaintiffs were themselves negligent and that such negligence was a substantial factor in bringing about the Plaintiffs injuries. The Defendant has the burden of proving this affirmative defense. Based upon the evidence presented at this trial, the only issues for you to decide in accordance with the law as I shall give it to you, are: First: Was the Defendant negligent? Second: Was the Defendant's conduct a substantial factor in bringing about harm to Plaintiff? Third: Was the Plaintiff negligent and was the negligence a substantial factor in bringing about its injuries? PSSJI §3.00 (Civ) ACCEPTED: REJECTED MODIFIED 6. The legal term negligence, otherwise known as carelessness, is the absence of ordinary care which a reasonable prudent person would exercise in the circumstances here presented. Negligent conduct may consist either of an act or an omission to act when there is a duty to do so. In other words, negligence is the failure to do something which a reasonably careful person would do, or the doing of something which a reasonably careful person would not do, in light of all the surrounding circumstances established by the evidence in this case. It is for you to determine how a reasonably careful person would act in those circumstances. Pa. SSJI (Civ) 3.01. ACCEPTED: REJECTED MODIFIED 7. Ordinary care is the care a reasonably careful person would use under the circumstances presented in this case. It is the duty of every person to use ordinary care not only for his own safely and the protection of his property, but also to avoid injury to others. What constitutes ordinary care varies according to the particular circumstances and conditions existing then and there. The amount of care required by the law must be in keeping with the degree of danger involved. Pa. SSJI (Civ) 3.02 ACCEPTED: REJECTED MODIFIED 8. In order for the Plaintiff to recover in this case, the Defendants' negligent conduct must have been a substantial factor in bringing about the accident. This is what the law recognizes as legal cause. A substantial factor is an actual, real factor, although the result may be unusual or unexpected, but it is not an imaginary or fanciful factor or a factor having no connection or only an insignificant connection with the accident. Pa. SSJI (Civ) 3.25 ACCEPTED: REJECTED MODIFIED 9. There may be more than one factual cause of the harm suffered by the Plaintiff. When negligent conduct of two or more persons contributes concurrently to an occurrence or incident, each of these persons is fully responsible for the harm suffered by the Plaintiff regardless of the relative extent to which each contributed to the harm. A cause is concurrent if it was operative at the moment of the incident, and acted with another cause as a factual cause in bringing about the harm. Pa. SSJI (Civ) 3.26 ACCEPTED: REJECTED MODIFIED 10. There may be more than one factual cause of the harm suffered by the Plaintiff. When negligent conduct of two or more persons contributes concurrently to an occurrence or incident, each of these persons is fully responsible for the harm suffered by the Plaintiff regardless of the relative extent to which each contributed to the harm. A cause is concurrent if it was operative at the moment of the incident, and acted with another cause as a factual cause in bringing about the harm. Pa. SSJI (Civ) 3.27 ACCEPTED: REJECTED MODIFIED 11. Where the conduct of two or more persons is negligent, and it is proved that the harm was caused by the negligent conduct of only one of them, but there is uncertainty as to which onecaused it, the burden is upon each person to prove that he or she has not caused the harm. Pa. SSJI (Civ) 3.29 ACCEPTED: REJECTED MODIFIED 12. The number of witnesses offered by one side or the other does not, in itself, determine the weight of the evidence. It is a factor, but only one of many factors that you should consider. Whether the witnesses appear to be biased or unbiased or whether they are interested or disinterested persons, are among the important factors that indicate the reliability of their testimony. The important thing is the quality of the testimony of each witness. In short, the test is not which side brings the greater number of witnesses or presents the greater quantity of evidence; but which witness or witnesses, and which evidence, you consider most worthy of belief. Even the testimony of one witness may outweigh that of many, if you have reason to believe his or her testimony in preference to theirs. Obviously, however, where the testimony of the witnesses appears to you to be of the same quality, the weight of numbers assumes particular significance. Pa. SSJI (Civ) 5.03 ACCEPTED: REJECTED MODIFIED 13. You may find inconsistencies in the evidence. Even actual contradictions in the testi- mony of witnesses do not necessarily mean that any witness has been willfully false. Poor memory is not uncommon. Sometimes a witness forgets; sometimes he or she remembers incorrectly. It is also true that two persons witnessing an incident may see or hear it differently. If different parts of the testimony of any witness or witnesses appear to be inconsistent, you the jury should try to reconcile the conflicting statements, whether of the same or different witnesses, and you should do so if it can be done fairly and satisfactorily. If, however, you decide that there is a genuine and irreconcilable conflict of testimony, it is your function and duty to determine which, if any, of the contradictory statements you will believe. Pa. SSJI (Civ) 5.04 ACCEPTED: REJECTED MODIFIED 14. You will recall that Carl Natale of UBA Fire Investigation and Corporal Nolan Brubaker of the Pennsylvania State Police gave testimony of their qualifications as experts in the field of fire investigation. A witness who has special knowledge, skill, experience, training or education i a particular science, profession or occupation may give his opinion as an expert as to any matter in which he is skilled. In determining the weight to be given to his opinion, you should consider the qualifications and reliability of the expert and the reasons given for his opinion. You are not bound by an expert's opinion merely because he is an expert; you may accept or reject it, as in the case of other witnesses. Give it the weight, if any, to which you deem it entitled. PSSJI §5.30 (Civ) ACCEPTED: REJECTED MODIFIED 15. In general, the opinion of an expert has value only when you accept the facts upon which is based. This is true whether the facts are assumed hypothetically by the expert, come from his personal knowledge, from some other proper source or from some combination of these. PSSJI §531 (Civ) ACCEPTED: REJECTED MODIFIED 16. In this case you have heard what the law calls circumstantial evidence. Circumstantial evidence consists of proof of facts, or circumstances, from which it is reasonable to infer the existence of another fact. You may consider circumstantial evidence and you should give it whatever with you believe it deserves. Pa. SSJI (Civ.) 5.07. ACCEPTED: REJECTED MODIFIED 17. I have invited your attention to various factors you may consider in evaluating the evidence for the plaintiff and defendant. In doing so, I have not attempted to indicate any opinion on my part concerning the weight you should give to the evidence or to any part of it and I would not want you to think that I had. In any event, it is for you and you alone to determine the credibility of each witness. Pa. SSJI (Civ) 5.40 ACCEPTED: REJECTED MODIFIED 18. In civil cases such as this one, the Plaintiff has the burden of proving those contentions which entitled it to relief. When a party has the burden of proof on a particular issue, it's contention on that issue must be established by a fair preponderance of the evidence. The evidence establishes a contention by a fair preponderance of the evidence if you are persuaded that it is ore probably accurate and true than not. To put it another way, think if you will, of an ordinary balance scale, wth a pan on each side. Onto one side of the scale, place all of the evidence favorable to the plaintiff onto the other, place all of the evidence favorable to the Defendant. If, after considering the comparable weight of the evidence, you feel that the scales tip, ever so slightly or to the slightest degree, in favor of the plaintiffs, your verdict must be for the plaintiffs. If the scales tip in favor of the defendant, or are equally balanced, your verdict must be for the Defendant. In this case, the plaintiffs have the burden of proving the following propositions: that the Defendant was negligent, and that the negligence was a substantial factor in bringing about the accident. If, after considering all of the evidence, you feel persuaded that these propositions are more probably true than not true, your verdict must be for the plaintiff. Otherwise, you verdict should be for the Defendant. PSSJI §5.50 (Civ) ACCEPTED: REJECTED MODIFIED 19. If you find that the defendant is liable to the plaintiff, you must then find an amount of money damages you believe will fairly and adequately compensate the plaintiff for all the financial injury it has sustained as a result of the occurrence. The amount you award today must compensate the plaintiff completely for damage sustained. Pa. SSJI (Civ.) 6.0 (as edited). ACCEPTED: REJECTED MODIFIED 20. The plaintiff is entitled to be compensated for the harm done to Dr. Pederson's property. Because the property was not a total loss, damages are measured by the reasonable cost of repairs set forth in the amount of $102,738.04 Pa. SSJI (Civ) 6.01J ACCEPTED: REJECTED MODIFIED 21. A breach of contract occurs when a party to the contract fails to perform any contrac. tual duty of immediate performance or violates an obligation, engagement, or duty and that breach is material. A breach does not have to be defined in a contract. Not every nonperformance, however, is to be considered a breach of the contract. If you find that the nonperformance was immaterial, and thus the contract was substantially performed, you must also find that a breach of the contract has not occurred. Pa. SSJI (Civ) 15.06 ACCEPTED: REJECTED MODIFIED 22. Where one party to a contract breaches that contract, the other party may recover for those injuries that have been proved to you with reasonable certainty. Any compensation awarded for injury is termed "damages." Generally, the measure of damages is the sum that will compensate the plaintiff for the loss sustained. If you find that the defendant breached the contract, you must then decide, based on the evidence the plaintiff has presented, what amount of money will compensate the plaintiff for those injuries that were a direct and foreseeable result of the breach, and that the parties could have reasonably foreseen with certainty at the time they made the contract. Pa. SSJI 15.26 (Civ) ACCEPTED: REJECTED MODIFIED Respectfully submitted, WEBER GALI*GHBR SIMPSON STAPLETON u e e Court LD. No.: 59238 8ort Third Street, 2"' Floor H )asbur P: 717.237.6940 Fax: 717-237-6949 Attorneys for Plaintiff CJ??9) Weber Gallagher Simpson Stapleton Fires & Newby, LLP By: John M. Clark Attorney Id. No.: 72652 1811 Chestnut St., Suite 600 Philadelphia, PA 19103 Attorney for Plaintiff FEB 19 2003 W INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pederson Plaintiff(s) V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 And Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Brief Summary of the Case COURT OF COMMON PLEAS CUMBERLAND COUNTY Docket No.: 99-4435 This litigation arises out of a major fire occurring on July 23, 1997 at Tau Kappa Epsilon fraternity house located at 11 Britton Road, Shippensburg, Pennsylvania which was insured by Plaintiff under policy no.: 612180-97-0 effective from 02/12/97 to 02/12/98. Said fire destroyed most of the house and contents therein. At the time of the fire, Defendants, Houck and Spicer were tenants at the loss location on July 23, 1997. The major fire was caused by the re-kindling of a small fire occurring a few hours prior. The small fire occurred when defendants, James Spicer and/or Steven Houck recklessly placed the bed on top of the electrical cord leading to the window air conditioning unit located within the bedroom. Defendant, Spicer turned on the window air conditioning unit prior his air conditioner to going to sleep. Defendant, Spicer was awakened by a small fire located on his mattress. Defendants Spicer and Houck attempted to extinguish the fire by pouring water from a dog bowl onto the fire. Defendants negligently did not inform the proper authorities of the fire. Said defendants left the burning and/or burnt bedding in the room. Said Defendants proceeded to remove the batteries from the smoke detecting devices within the premises in order to prevent the alarm from sounding. The two Defendants thereafter moved to Houck's room to return to sleep. Thereafter, the fire re-kindled in the mattress where it originally ignited causing a major fire to the premises. II. Statement of Issues Negligent actions of Defendants, Steven Houck and/or James Spicer by recklessly placing bed on top on electrical cord leading to window air conditioning unit. 2. Negligent actions of Defendants, Steven Houck and/or James Spicer by recklessly extinguishing original fire. Negligent actions of Defendants, Steven Houck and/or James Spicer by failing to notify proper authorities of original fire. 4. Negligent actions of Defendants, Steven Houck and/or James Spicer by negligently disabling smoke detecting device located within premises. 5. Breach of contract by Defendant, Steven Houck by way of breaching lease agreement by causing damage to property of Plaintiff. 6. Breach of contract by Defendant, James Spicer by way of breaching lease agreement by causing damage to property of Plaintiff. III. Stipulations None IV. Witnesses 1. Steven Houck 2. James Spicer 3. Barry K. White/UBA Fire & Explosion Investigators 4. John W. Noblet, UBA Fire & Explosing Investigators 3. Any and all investigating officials including members of fire department and police department. V. Exhibits Damage Estimates Lease Agreement UBA Investigative Report VI. Damages Plaintiff suffered damages in the amount of $102,738.04. VII. Statement of Any Objections or Evidentiary Problems to be Resolved Prior to Trial Plaintiff is not aware of any issues to be resolved at the present time. VIII. Special Requests None IX. Best Offer of Settlement Authorized by Client Plaintiff has made no offer of settlement since the fire was caused by Defendants, Steven Houck and/or James Spicer's negligence and/or recklessness. X. Estimated Time Needed for Trial One to two days. Weber Gallagher Simpson Stapleton Fires & Newby, LLP Dated: ohn M. rk, ,Attorney for Plaintiff CERTIFICATE OF SERVICE I, Terri Enright, Legal Assistant to John M. Clark, Esquire, hereby certify as follows: I am employed by Weber Gallagher Simpson Stapleton Fires & Newby, LLP counsel for plaintiff and on the below referenced date I mailed a copy of the attached pleadings by facsimile and regular mail to the following counsel and/or parties: Wix Wenger & Weidner Richard H. Wix, Esquire 4705 Duke St. Harrisburg, PA 17109 Dated: -- erri Enrigl t, Legal Assistant to John M. Clark, Esquire INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO, 99-4435 CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT STEVEN HOUCK'S MEMORANDUM FOR PRE-TRIAL CONFERENCE 1. Brief Summary of the Case This litigation arises out of a fire that occurred on July 25, 1997 at 11 Britton Road, Shippensburg, Pennsylvania. Defendants were two of a number of tenants who resided at the property owned by Dr. Carl Pederson. At the time of the firs, the two Defendants were the only occupants of the building. On the night of the fire Defendant Houck was awakened by the smoke alarm. The smoke alarm was located in the room occupied by Defendant Spicer. Apparently the sheets on Mr. Spicer's mattress caught on fire due to an electrical defect associated with the air conditioner. When Mr. Houck entered Mr. Spicer's room, the fire had already been put out by Mr. Spicer. The cord to the air conditioner was unplugged, and as far as Mr. Houck could tell Mr. Spicer had extinguished the fire. At that point Mr. Houck felt that it was safe enough to go back to bed, which he did. Later in the evening, another fire broke out in Mr. Spicer's room. II. Statement of Issues 1. Negligence of Defendant Steven Houck. 2. If Defendant Houck was negligent, was his negligence a substantial factor in bringing about the Plaintiff's harm? 3. Damages III. Stipulations None. IV. Witnesses 1. Steven Houck V. Exhibits None VI. Damages See Plaintiffs Pre-Trial Memorandum. VII. Defendant is not aware of any unusual evidentiary issues to be resolved. VIII. Special Requests None. IX. Best Offer of Settlement Authorized by Client Defendant has made no offer of settlement since the fire was electrical in nature and Defendant Houck had nothing to do with the starting of either fire. 2 X. Estimated Time Needed for Trial 1 1/2 days Respectfully submitted, WIX, WENGER & WEIDNER Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: 02/14/03 CERTIFICATE OF SERVICE AND NOW, this 14th day of February, 2003, I, Gaye Crist, an employee of the firm of Wix, Wenger & Weidner, attorneys for Defendant, hereby certify that I served the within Defendant Steven Houck's Memorandum for Pre-Trial Conference this date by depositing a copy of same in the United States mail, postage prepaid, in Harrisburg, Pennsylvania, addressed as follows: The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 and by facsimile to: John M. Clark, Esquire 1500 JFK Boulevard, Suite 200 Two Penn Center Philadelphia, PA 19102 (215) 923-5076 WIX, WENGER & WEIDNER ,?CCak y,'I' Gaye fist FEe 19 2003 INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4435 CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT STEVEN HOUCK'S MEMORANDUM FOR PRE-TRIAL CONFERENCE 1. Brief Summary of the Case This litigation arises out of a fire that occurred on July 25, 1997 at 11 Britton Road, Shippensburg, Pennsylvania. Defendants were two of a number of tenants who resided at the property owned by Dr. Carl Pederson. At the time of the fire, the two Defendants were the only occupants of the building. On the night of the fire Defendant Houck was awakened by the smoke alarm. The smoke alarm was located in the room occupied by Defendant Spicer. Apparently the sheets on Mr. Spicer's mattress caught on fire due to an electrical defect associated with the air conditioner. When Mr. Houck entered Mr. Spicer's room, the fire had already been put out by Mr. Spicer. The cord to the air conditioner was unplugged, and as far as Mr. Houck could tell Mr. Spicer had extinguished the fire. At that point Mr. Houck felt that it was safe enough to go back to bed, which he did. Later in the evening, another fire broke out in Mr. Spicer's room. II. Statement of Issues 1. Negligence of Defendant Steven Houck. 2. If Defendant Houck was negligent, was his negligence a substantial factor in bringing about the Plaintiffs harm? 3. Damages III. Stipulations None. IV. Witnesses 1. Steven Houck V. Exhibits None VI. Damages See Plaintiffs Pre-Trial Memorandum. VII. Statement of Any Obiections or Evidentiary Problems to be Resolved Prior to Trial Defendant is not aware of any unusual evidentiary issues to be resolved. VIII. Special Requests None. IX. Best Offer of Settlement Authorized by Client Defendant has made no offer of settlement since the fire was electrical in nature and Defendant Houck had nothing to do with the starting of either fire. 2 X. Estimated Time Needed for Trial 1 1/2 days Respectfully submitted, WIX, WENGER & WEIDNER By C?7 Td - T? Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: 06/17/03 i INSURANCE PLACEMENT IN THE COURT OF COMMON PLEAS FACILITY OF PENNSYLVANIA, CUMBERLAND COUNTY, PENNSYLVANIA as subrogee of Carl Pederson, Plaintiff NO, 99-4435 V. CIVIL ACTION - LAW STEVEN M. HOUCK and JAMES E. SPICER, JURY TRIAL DEMANDED Defendants DEFENDANT STEVEN HOUCK'S MEMORANDUM FOR PRE-TRIAL CONFERENCE 1. Brief Summary of the Case This litigation arises out of a fire that occurred on July 25, 1997 at 11 Britton Road, Shippensburg, Pennsylvania. Defendants were two of a number of t6L who resided at the property owned by Dr. Carl Pederson. At the time of the fire, the two Defendants were the only occupants of the building. On the night of the fire Defendant Houck was awakened by the smoke alarm. The smoke alarm was located in the room occupied by Defendant Spicer. Apparently the sheets on Mr. Spicer's mattress caught on fire due to an electrical defect associated with the air conditioner. When Mr. Houck entered Mr. Spicer's room, the fire had already been put out by Mr. Spicer. The cord to the air conditioner was unplugged, and as far as Mr. Houck could tell Mr. Spicer had extinguished the fire. At that point Mr. Houck felt that it was safe enough to go back to bed, which he did. Later in the evening, another fire broke out in Mr. Spicer's room. II. Statement of Issues 1. Negligence of Defendant Steven Houck. 2. If Defendant Houck was negligent, was his negligence a substantial factor in bringing about the Plaintiffs harm? 3. Damages Ill. Stipulations None. IV. Witnesses 1. Steven Houck V. Exhibits None VI. Damages See Plaintiffs Pre-Trial Memorandum. VII. Statement of Any Objections or Evidentiary Problems to be Resolved Prior to Trial Defendant is not aware of any unusual evidentiary issues to be resolved. VIII. Special Requests None. IX. Best Offer of Settlement Authorized by Client Defendant has made no offer of settlement since the fire was electrical in nature and Defendant Houck had nothing to do with the starting of either fire. 2 X. Estimated Time Needed for Trial 1 1/2 days Respectfully submitted, WIX, WENGER & WEIDNER Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: 1/7/03 3 CERTIFICATE OF SERVICE AND NOW, this 7th day of January, 2003, I, Gaye Crist, an employee of the firm of Wix, Wenger & Weidner, attorneys for Defendant Houck, hereby certify that I served the within Defendant Steven Houck's Memorandum for Pre-Trial Conference this date by depositing a copy of same in the United States mail, postage prepaid, in Harrisburg, Pennsylvania, addressed as follows: James P. Carfagno, Esquire 1500 JFK Blvd., Suite 200 Two Penn Center Philadelphia, PA 19102 WIX, WENGER & WEIDNER ???l Ci?K .?Jv?. Gaye ist JANI 0 6 2ao3 02/14/2003 FRI 17:41 FAY Weber Gallagher Simpson Stapleton Fires & Newby, LLP BY: John M. Clark Attorney Id. No.: 72652 1811 Chestnut St., Suite 600 Philadelphia, PA 19103 Attorney for Plaintiff INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pederson COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff(s) V. Steven M. Houck 523 W_ Lisburn Road Mechanicsburg, PA 17055-5830 And Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Docket No.: 99-4435 lit 002/019 We- Ur i ? Wvk, Brief Summary of the Caee This litigation arises out of a major fire occurring on July 23, 1997 at Tau Kappa Epsilon fraternity house located at 11 Britton Road, Shippensburg, Pennsylvania which was insured by Plaintiff under policy no.: 612180-97-0 effective from 02/12/97 to 02/12/98. Said fire destroyed most of the house and contents therein. At the time of the fire, Defendants, Houck and Spicer were tenants at the loss location on July 23, 1997. 02/14/2003 FRI 17:41 FAX 0003/019 ,f The major fire was caused by the re-kindling of a small fire occurring a few hours prior. The small fire occurred when defendants, James Spicer and/or Steven Houck recklessly placed the bed on top of the electrical cord leading to the window air conditioning unit located within the bedroom. Defendant, Spicer turned on the window air conditioning unit prior his air conditioner to going to sleep. Defendant, Spicer was awakened by a small fire located on his mattress. Defendants Spicer and Houck attempted to extinguish the fire by pouring water from a dog bowl onto the fire. Defendants negligently did not inform the proper authorities of the fire. Said defendants left the burning and/or burnt bedding ir, the room. Said Defendants proceeded to remove the batteries from the smoke detecting devices within the premises in order to prevent the alarm from sounding. The two Defendants thereafter moved to Houck's room to return to sleep. Thereafter, the fire re-kindled in the mattress where it originally Ignited causing a major fire to the premises. II. Statement of Issues Negligent actions of Defendants, Steven Houck and/or James Spicer by recklessly placing bed on top on electrical cord leading to L ""- window air conditioning unit. 2. Negligent actions of Defendants, Steven Houck and/or James L-001 Spicer by recklessly extinguishing original fire. 3. Negligent actions of Defendants, Steven Houck and/or James ?. Spicer by failing to notify proper authorities of original fire. 4. Negligent actions of Defendants, Steven Houck and/or James Spicer by negligently disabling smoke detecting device located within premises. 02/14/2003 FRI 17:41 FAX IZO04/019 5. Breach of contract by Defendant, Steven Houck by way of breaching lease agreement by causing damage to property of Plaintiff. 6. Breach of contract by Defendant, James Spicer by way of breaching lease agreement by causing damage to property of Plaintiff. III. Stipulations None IV. Witnesses 1. Steven Houck 2. James Spicer 3. Barry K. White/UBA. Fire & Explosion Investigators 4. John W. Noblet, UBA Fire & Explosing Investigators 3. Any and all investigating officials including members of fire department and police department. V. Exhibits Damage Estimates Lease Agreement UBA Investigative Report VI. Damages Plaintiff suffered damages In the am nt of $102,738.04. VII. Statement of Any Objections or Evidentiary roblems to be Resolved Prior to Trial Plaintiff is not aware of any issues to be resolved at the present time. VIII. Special Requests None IX. Best Offer of Settlement Authorized by Client Plaintiff has made no offer of settlement since the fire was caused by Defendants, Steven Houck and/or James Spicer's negligence and/or recklessness. 02/14/2003 FRI 17:41 FAIL X. Estimated Time Needed for Trial One to two days. Dated: Weber Gallagher Simpson Stapleton Fires & Newby. L Attorney for r 005/019 02/14/2003 FRI 17:41 FLY ® 008/019 CERTIFICATE OF SERVICE I, Terri Enright, Legal Assistant to John M. Clark, Esquire, hereby certify as follows: I am employed by Weber Gallagher Simpson Stapleton Fires & Newby, LLP counsel for plaintiff and on the below referenced date I mailed a copy of the attached pleadings by facsimile and regular mail to the following counsel and/or parties: Wix Wenger & Weidner Richard H. Wiz, Esquire 4705 Duke St. Harrisburg, PA 17109 Dated: / y-O 3 erri Enrig t, Legal Assistant to John M. Clark, Esquire INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK, and JAMES E. SPICER, Defendants IN THE COURT OF COMMO a22 N PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4435 CIVIL TERM RRETRIAL CONFERENCE AND NOW, this 19th day of February, 2003, before Edgar B. Bayley, Judge, present for the plaintiff was Patricia Corll, Esquire. Trial counsel for plaintiff will be John M. Clark, Esquire. Counsel for Defendant Steven M. Houck is Richard H. Wix, Esquire. Defendant James E. Spicer has not entered an appearance. The default judgment as to liability has been entered against Spicer. This case arises out of a fire that occurred at the Tau Kappa Epsilon fraternity house in Shippensburg on July 23, 1997. Defendants Spicer and Houck lived in separate rooms in the fraternity. Spicer allegedly placed a bed on top of an electrical cord leading to a window air-conditioning unit in his room. He was in bed with the air-conditioner that was running when a fire emanating from the electrical cord started to burn his mattress. Spicer got Defendant Steven Houck, who was in his own room, to help put out the fire by pouring water on it. Defendants are alleged to have gone to bed in Houck's room after removing batteries from a smoke detector in order to prevent the alarm from sounding. The fire rekindled in the mattress in Spicer's room resulting in damage to the building in the amount of $102,738.04. Plaintiff, Insurance Placement Facility of Pennsylvania, seeks recovery of this amount as a subrogee of the property owner. Defendants allegations of negligence are as follows: 1. Placing the bed on top of an electrical cord leading to a window air-conditioning unit that was in operation. 2. Failing to extinguish the original fire. 3. Failing to notify the proper authorities of the original fire. 4. Disabling the smoke detector. Defendant Houck denies liability and causation. If the jury finds liability on Houck, they will determine damages as to Houck and Spicer. If the jury finds no liability on Houck, they will determine damages as to Spicer. Trial counsel shall file a succint trial brief with the trial judge at the commencement of trial on the issues of liability and causation. Counsel shall also provide the trial judge with points for charge on liability and causation. Estimated time of trial, two days. By the Court 11 Edgar B. Bay ey, J. John M. Clark, Esquire For Plaintiff Richard H. Wix, Esquire For Defendant Steven M. Houck prs ' ?r ,.i V: _? i ?. (.. ' ? u L:. _ L _? ., ? iJ #22 INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4435 CIVIL TERM PRETRIAL CONFERENCE AND NOW, this 18th day of June, 2003, before Edgar B. Bayley, Judge, present for the Plaintiff was Patricia Corll, Esquire, and for Defendant Steven M. Houck, Richard H. Wix, Esquire. Defendant James E. Spicer has not entered an appearance. The case is ready for trial and should take one and a half to two days. A pretrial conference memo of February 19, 2003, sets out the issues. The case should not be listed for Monday but can be tried Tuesday or beyond. By the Court, i .\ Patricia Corll, Esquire For Plaintiff Richard H. Wix, Esquire For Defendant Steven M. Houck Edgar B. Bayley? J. prs 'r r .? ,? '? - ;; ,.? - i.i INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4435 V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT STEVEN HOUCK'S MEMORANDUM FOR PRE-TRIAL CONFERENCE 1. Brief Summary of the Case This litigation arises out of a fire that occurred on July 25, 1997 at 11 Britton Road, Shippensburg, Pennsylvania. Defendants were two of a number of tenants who resided at the property owned by Dr. Carl Pederson. At the time of the fire, the two Defendants were the only occupants of the building. On the night of the fire Defendant Houck was awakened by the smoke alarm. ¦ The smoke alarm was located in the room occupied by Defendant Spicer. Apparently the sheets on Mr. Spicer's mattress caught on fire due to an electrical defect associated with the air conditioner. When Mr. Houck entered Mr. Spicer's room, the fire had already been put out by Mr. Spice The cord to the air conditioner was unplugged, and as far as Mr. Houck could tell Mr. Spicer had extinguished the fire. At that point Mr. Houck felt that it was safe enough to go back to bed, which he did. Later in the evening, another fire broke out in Mr. Spicer's room. ¦i II. Statement of Issues 1. Negligence of Defendant Steven Houck. 2. If Defendant Houck was negligent, was his negligence a substantial factor in bringing about the Plaintiffs harm? 3. Damages III. Stipulations None. IV. Witnesses 1. Steven Houck V. Exhibits None VI. Damages See Plaintiff's Pre-Trial Memorandum. VII. Statement of Any Objections or Evidentiary Problems to be Resolved Prior to Trial Defendant is not aware of any unusual evidentiary issues to be resolved. VIII. Special Requests None. IX. Best Offer of Settlement Authorized by Client Defendant has made no offer of settlement since the fire was electrical in nature and Defendant Houck had nothing to do with the starting of either fire. 2 X. Estimated Time Needed for Trial 1 1/2 days Respectfully submitted, WIX, WENGER & WEIDNER Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: 02/14/03 CERTIFICATE OF SERVICE AND NOW, this 14'hday of February, 2003, I, Gaye Crist, an employee of the firm of Wix, Wenger & Weidner, attorneys for Defendant, hereby certify that I served the within Defendant Steven Houck's Memorandum for Pre-Trial Conference this date by depositing a copy of same in the United States mail, postage prepaid, in Harrisburg, Pennsylvania, addressed as follows: The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 and by facsimile to: John M. Clark, Esquire 1500 JFK Boulevard, Suite 200 Two Penn Center Philadelphia, PA 19102 (215) 923-5076 WIX, WENGER & WEIDNER Gaye C list 02/13/2003 FRI 17:41 FAX Weber Gallagher Simpson Stapleton Fires & Newby, LLP By: John M. Clark Attorney Id. No.: 72652 1811 Chestnut St., Suite 600 Philadelphia, PA 19103 Attorney for Plaintiff INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pederson Plaintiff(s) V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 And Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 1. Brief Summary of the Case COURT OF COMMON PLEAS CUMBERLAND COUNTY Docket No.: 99-4435 This litigation arises out of a major fire occurring on July 23, 1997 at Tau Kappa Epsilon fraternity house located at 11 Britton Road, Shippensburg, Pennsylvania which was insured by Plaintiff under policy no.: 612180-97-0 effective from 02/12/97 to 02/12/98. Said fire destroyed most of the house and contents therein. At the time of the fire, Defendants, Houck and Spicer were tenants at the loss location on July 23, 1997. 11002 01 02%14/2007 FRI 17:41 FAX The major fire was caused by the re-kindling of a small fire occurring a few hours prior. The small fire occurred when defendants, James Spicer and/or Steven Houck recklessly placed the bed on top of the electrical cord leading to the window air conditioning unit located within the bedroom. Defendant, Spicer turned on the window air conditioning unit prior his air conditioner to going to sleep. Defendant, Spicer was awakened by a small fire located on his mattress. Defendants Spicer and Houck attempted to extinguish the fire by pouring water from a dog bowl onto the fire. Defendants negligently did not inform the proper authorities of the fire. Said defendants left the burning and/or burnt bedding in the room. Said Defendants proceeded to remove the batteries from the smoke detecting devices within the premises in order to prevent the alarm from sounding. The two Defendants thereafter moved to Houck's room to return to sleep. Thereafter, the fire re-kindled in the mattress where it originally ignited causing a major fire to the premises. II. Statement of Issues Negligent actions of Defendants, Steven Houck and/or James Spicer by recklessly placing bed on top on electrical cord leading to window air conditioning unit. 2. Negligent actions of Defendants, Steven Houck and/or James Spicer by recklessly extinguishing original fire. 3. Negligent actions of Defendants, Steven Houck and/or James Spicer by failing to notify proper authorities of original fire. 4. Negligent actions of Defendants, Steven Houck and/or James Spicer by negligently disabling smoke detecting device located within premises. 10003 01> 02/14/2003 FRI 17:41 FAX 5. Breach of contract by Defendant, Steven Houck by way of breaching lease agreement by causing damage to property of Plaintiff. 6. Breach of contract by Defendant, James Spicer by way of breaching lease agreement by causing damage to property of Plaintiff. III. Stipulations None IV. Witnesses 1. Steven Houck 2. James Spicer 3. Barry K. White/UBA Fire & Explosion Investigators 4. John W. Noblet, UBA Fire & Explosing Investigators 3. Any and all investigating officials including members of fire department and police department. V. Exhibits Damage Estimates Lease Agreement UBA Investigative Report VI. Damages Plaintiff suffered damages in the amount of $102,738.04• VII. Statement of Any Objections or Evidentiary Problems to be Resolved Prior to Trial Plaintiff is not aware of any issues to be resolved at the present time. VIII. Special Requests None IX. Best Offer of Settlement Authorized by Client Plaintiff has made no offer of settlement since the fire was caused by Defendants, Steven Houck and/or James Spicer's negligence and/or recklessness. 10004 01t 02/13/2003 FRI 1T:41 F.31 X. Estimated Time Needed for Trial One to two days. Weber Gallagher Simpson Stapleton Fires & Newby, LLB Dated: Attorney for Plaintiff X1005 019 02/14/2003 FRI 17:41 FAX CERTIFICATE OF SERVICE I, Terri Enright, Legal Assistant to John M. Clark, Esquire, hereby certify as follows: I am employed by Weber Gallagher Simpson Stapleton Fires & Newby, LLP counsel for plaintiff and on the below referenced date I mailed a copy of the attached pleadings by facsimile and regular mail to the following counsel and/or parties: Wix Wenger & Weidner Richard H. Wix, Esquire 4705 Duke St. Harrisburg, PA 17109 Dated: IV-0 3 err! Enrig t, Legal Assistant to John M. Clark, Esquire (6006 01E I1 JUN 0 4 2003 !T IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACFM ENT FACILITY OF PENNSYLVANIA, as Subrogee of Docket No.: 99-4435 Carl Pederson, Iless, J. Plaintiff(s) V. STEVEN M. HOUCK 523 W. Lisburn Road Mechanicsburg, PA 17055-5330 And JACK JOSEPH SPICER C/O Cumberland County Prision 1101 Claremont Road Carlisle, PA 17013 Defendants PLAINTIFF'S INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA A/S/O CARL PEDERSON SUPPLEMENTAL. PRE-TRIAL STATEMENT AND NOW, comes the Plaintiff, by and through its counsel, Patricia Haas Corll, Esquire, and Weber, Gallagher, Simpson, Stapleton, Fires & Newby, LLP, and files the following Supplemcnlal Pre-Trial Statement pursuant to Pennsylvania Rule of Civil Procedure 212.2 and Cumberland County Local Rule 212-4. IV. WITNESSES Representative/Records Custodian Insurance Placement Facility of Pennsylvania 530 Walnut Street Philadelphia, PA 19106 Representative/Records Custodian McShea Associates 47 Marchwood Road, Suite 2A-1 I Exton, PA 19341 Carl J. Natale President UBA Fire & Explosion Investigators 2373 Forest Hills Drive P.O. Box 6565 Harrisburg, PA 17112 4. Corporal Nolan E. Brubaker Pennsylvania State Police Carlisle, PA 5. Gregg Coy Shippensburg Fire Department Shippensburg, PA 6. Representative/Records Custodian Alex R. Szeles, Inc. 5110 Lancaster Street Harrisburg, PA 17111 Dr. Carl Pederson 218 North Main Street Mercersburg, PA 17238 8. Any and all investigating officials, including members of the fire departments and the police departments who responded to the subject property in connection with the fire on July 23, 1997. 9. Any and all witnesses listed by Defendants. V. EXHIBITS 1. Damage estimates 2. Lease Agreements 3. UBA Investigative Report 4. Police Report 5. Investigative Notes, etc. 6. Fire Marshall Investigative Notes, etc. 7. Depositions and discovery items produced during discovery on this case. 8. Witness Statements The Plaintiffs hereby reserve the right to call any individuals identified in any Pre-trial Statement of other parties or Interrogatories or answers thereto, Requests for Production of Documents or responses thereto, depositions or any other discovery documents produced by the parties or filed of record in this action. This Plaintiff reserves the right to offer any additional evidence which may be discovered and/or disclosed before trial and to amend or supplement this Pre-Trial Statement up to and including the time of trial pursuant to Local Rule 212-4 etc. Respectfully submitted, WEBER QALLAGUER SIMPSON STAPLETON Patr' a71aas CoW squire P . upreme Co rt I.D. No.: 59238 800 orth Third treet, 2nd Floor //Ha o PA 17102 Phone: 717.237.6940 Fax: 717-237-6949 Counsel for Plaintiff Dated: June 3, 2003 3 CERTIFICATE OF SERVICE 1, Patricia Haas Corll, Esquire, hereby certify that I am this day serving a copy of the foregoing Amended Pre-Trial Statement via U.S. First Class Mail, upon the below persons(s) which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure. June 3, 2003 Richard Wix, Esquire Wix Wenger & Weidner 4705 Duke Street Harrisburg, PA 17100 >x. INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4435 CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT STEVEN HOUCK'S MEMORANDUM FOR PRE-TRIAL CONFERENCE 1. Brief Summary of the Case This litigation arises out of a fire that occurred on July 25, 1997 at 11 Britton Road, Shippensburg, Pennsylvania. Defendants were two of a number of tenants who resided at the property owned by Dr. Carl Pederson. At the time of the fire, the two Defendants were the only occupants of the building. On the night of the fire Defendant Houck was awakened by the smoke alarm. The smoke alarm was located in the room occupied by Defendant Spicer. Apparently the sheets on Mr. Spicer's mattress caught on fire due to an electrical defect associated with the air conditioner. When Mr. Houck entered Mr. Spicer's room, the fire had already been put out by Mr. Spicer. The cord to the air conditioner was unplugged, and as far as Mr. Houck could tell Mr. Spicer had extinguished the fire. At that point Mr. Houck felt that it was safe enough to go back to bed, which he did. Later in the evening, another fire broke out in Mr. Spicer's room. II. Statement of Issues 1. Negligence of Defendant Steven Houck. 2. If Defendant Houck was negligent, was his negligence a substantial factor in bringing about the Plaintiffs harm? 3. Damages III. Stipulations None. IV. Witnesses 1. Steven Houck V. Exhibits None Vi. Damages See Plaintiffs Pre-Trial Memorandum. VII. Defendant is not aware of any unusual evidentiary issues to be resolved. VIII. Special Requests None. IX. Best Offer of Settlement Authorized by Client Defendant has made no offer of settlement since the fire was electrical in nature and Defendant Houck had nothing to do with the starting of either fire. 2 X. Estimated Time Needed for Trial 1 1/2 days Respectfully submitted, WIX, WENGER & WEIDNER l? By It Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: 02/14/03 CERTIFICATE OF SERVICE AND NOW, this 14th day of February, 2003, I, Gaye Crist, an employee of the firm of Wix, Wenger & Weidner, attorneys for Defendant, hereby certify that I served the within Defendant Steven Houck's Memorandum for Pre-Trial Conference this date by depositing a copy of same in the United States mail, postage prepaid, in Harrisburg, Pennsylvania, addressed as follows: The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 and by facsimile to: John M. Clark, Esquire 1500 JFK Boulevard, Suite 200 Two Penn Center Philadelphia, PA 19102 (215) 923-5076 WIX, WENGER & WEIDNER Gaye Crist COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 No. YV- and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Civil Action NOTICE TO DEFEND NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pa 717-249-3166 COURT OF COMMON PLEAS CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen 530 Walnut Street-Philadelphia, PA 19106 No 99- yv3s da _r'". V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 -and- Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Civil Action COMPLAINT Plaintiff, INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl D. Pedersen (the "Insured") by and through its undersigned counsel avers as follows: 1. Plaintiff is an unincorporated non-profit association created by statute, 40 P.S. 1600.101-1600.502, Act of July 31, 1968, P.L. 738, to issue basic fire insurance policies in the Commonwealth of Pennsylvania, and maintains a principal place of business at 530 Walnut Street, Suite 1650 Philadelphia, Pennsylvania and is entitled by law and equity to bring this action by virtue of an insurance payment made to Carl D. Pedersen (the "Insured") as described in more detail below. 2. Plaintiff insured the Tau Kappa Epsilon fraternity house ("TKE House") located at 11 Britton Road, Shippensburg, Pennsylvania (the "Premises") under Policy of Insurance No 612180-97-0 effective from 02/12/97 to 02/12/98 (the "Policy"). A true and correct copy of the declaration page of said Policy is attached as Exhibit A. 3. The defendant Jack Joseph Spicer ("Spicer") is an adult individual presently incarcerated with an address of c/o Cumberland County Prison, l 101 Claremont Road, Carlisle, PA 17013. 4. Defendant Steven M, Houck is an adult individual with an address of 116 North Fayette Street, Shippensburg, PA 17257 and/or 523 West Lisburn Road, Mechanicsburg, PA 17055 5. A major fire occurred on or about July 23, 1997 at the Tau Kappa Epsilon fraternity house, which consumed and destroyed most of the house and contents therein (the "Fire" or "Major Fire"). 6. At the time of the fire, the defendants were present in and residing at the TKE House. 7. The Major Fire complained of herein was caused by the re-kindling of a small, earlier fire a few hours prior. 8. The small, earlier fire occurred when defendant Spicer, turned on an air conditioner and went to sleep. He was awakened by a small fire burning at the end of his mattress which he attempted to extinguish. The authorities were not called. He was assisted in the extinguishment by Steven M. Houck who was previously sleeping in another room. The two defendants left the burning and/or burnt bedding in the room and then removed batteries from smoke alarm(s) in the Premises before the two moved to Houck's room to return to sleep. 9. Thereafter, fire re-kindled in the mattress which set surrounding consumables on fire, igniting the Major Fire to the premises. The Major Fire engulfed the entire premises; whereupon defendants finally awoke and escaped to safety through a window. A dog also escaped the Fire with the defendants. 10. Pursuant to the Policy of Insurance, the Facility paid its Insured $102,238.04 in partial indemnity for the reasonable actual cash value damages arising out of the Fire. By -2- virtue of its payment, the Facility became subrogated to the rights of its Insured and is entitled by law and equity to proceed herein. COUNTI NEGLIGENCE Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen v. Jack Joseph Spicer and Steven M. Houck 1 1. The foregoing paragraphs No. 1 through 10 are incorporated herein by reference. 12. The defendants owed a duty to the building owner, Carl Petersen, to use reasonable precautions to guard against the outbreak of fire. 13. The defendants breached that duty and were careless and/or negligent in the following, but not limited to, manner: by: a). failing to reasonably, competently, prudently and/or fully extinguish the first fire; b). failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; e). Removing the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; f). failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably -3- cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major Fire which substantially destroyed the Premises. 14. The damages sustained by the Insureds arising out of the Fire total at least $102,738.04. The Facility paid its Insureds the Policy amount of $102,738.04 in partial indemnity for the actual cash value damages sustained by the Insureds due to the Fire. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the amount of $102,738.04 plus interest and costs. COUNT II BREACH OF CONTRACT Insurance Placement Facility of Pennsylvania as subrogee of Dr. Carl D. Pedersen v. James E. Spicer and Steven M. Houck 15. The foregoing paragraphs No. 1 through 14 are incorporated herein by reference. 16. The defendants breached their Leases (attached as Exhibit B and Exhibit C hereto) with the plaintiff's insured, Carl Petersen, by causing the Premises to burn, causing damage. 17. The following acts of negligence and carelessness constitute breaches of the Leases of (See 16 ("Repeated Damage"); 18 ("Due car/Appliances")): a). failing to reasonably, competently, prudently and/or fully extinguish the first fire; b). failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; 4- e). Ramoving the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; f1. failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major Fire which substantially destroyed the Premises. 18. The defendants' above acts constitute breach(es) of the express and/or implied provisions of the lease between the defendants and Petersen which directly caused damages of at least $102,738.04 to the premises. 19. Despite demand, the defendants have failed to pay this sum and are legally liable for said payment. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the amount of $102,738.04 plus interest and costs. Mark J Wollman, Esq. Attorn y for Plaintiff law omm or Mark J. Wollman Alty I.D. No. 57127 Suite 70034 The Pavilion 261 Old York Road Jenkintown, PA 19046 (215)887.3505 -5- Verification 1, Mark Wollman, authorized representative of the plaintiff here hereby state the statements made herein are true and correct to the best of my knowledge, information and belief. I am aware that this is made under the penalties of 18 PA C.S.A. section 4904 relating to unsworn falsification to authorities. ark W man Date; July 21, 1999 _?,. Lut PLACEMENT FACILITY OF PENNSYLVANIA A LIST OF THE COMPANIES AND THEIR PERCENTAGE PARTICIPATION IS ON FILE AT THE INSURANCE DEPARTMENT IN HARRISBURG AND A COPY N1AY DE OBTAINED AT THE FACILITY OFFICE. DECLARATIONS NA.V.EO INSURED NAILING ADDRESS •;,,: y .,?, • r' 'I- T pry ;: C. L'Pr :', Ci'-tii •_: I>;= .''e::;::: ? ??... .. .. ,.. •r... .. POLICY NO. PFP, _ •. ..,. •.. RENEWAL c ,,? - 0'2r l i{i TERM RENEWAL DATE IMIA Ow yr.; EXPIRATION IIb Gw ye, NOON STANDARD THE NOON STANDARD TIME (YEAR .._i.. •. fM.. ,.;..•:.. cl, ', 7'c We will provide insurance described in this policy in return for the premium and cor..piiance with all applicable provisions of this policy. It we offer to renew this policy, the premium must be paid in advance of the above expiration dale or else this policy will expire. Upon receipt of the renewal premium and a property completed renewal application, we will issue a renewal endorsement or new policy. This insurance applies to the Cosr:itec location, coverage for which a limit at liability is shown and pefilsinsured against for which a premium is stated. AMOUNT I Po.EMIL•'A OUE „':NCB?T;CN OF ° RATES) 'NSURANC S.'Q; TOTAL(S) S ""i -I I COVERED CAUSES OF CSS ? FIRE. LIGHTNING, AND EXPLOSION WIND. HAIL. SMCNE, AIRCRAFT OR ? VEHIC'.ES, RIOT OR CML COMMOTION. SINNHOL: COLLAPSE, VOLCANIC ACTION. 11 1 UMR OF PERCENT OF OESCRIPTION OF PROPERTY COVERS. 0.0CA-CN IS DESCRIBED IF DIFFERENT FROM MAIL'NG AOCPES51 APPLIES ONLY C. w5. MNO° ICO IMS RANCE FOR WHICH A LIMIT OF INSURANCE IS SHu NN. SHOW CCCUPNICY OF BUILDING COVERED CA CONTAINING THE PROPERTY COVERED. AP "C.Ui :iii. _. -,_ .r.. - .. .. DEDUCTIBLE S 7::,i. •. IN CAS" OF LOSS UNDER THIS PCUC-r, WE COVER ONLY T HAT PART OF THE LOSS OVERT HE DEDUCTIBLE STATED. FORMS APPLICABLE: . ..... ... r PRODUCER EXHIBIT DATE ` AUMORIZEDR C C a C" RESIDENTLAL LEASE AGREEMENT THIS LEASE, made this 1st day of December, 1996 BETWEEN Dr. Carl Pedersen the Owner, ImPN - S ' e (hereinafter whether one or more, referred to "Resident"), jointly and severally: WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartmendhouse designated as _ l 1 Britton Road. ShiRpensburg PA 17257 hereater called the "premises", for the term of 1 year beginning on the 1 st day of June, 1997, and ending on the 31st day of May, 1998 , at the rent of 4 re l a ,1,:,?e d Dollars(S annually and monthly in installments of: tya?i 4,* d°'la+ Prior to the first day of the month for which it is due at a discounted rate of S 19`i . 00 Between the first and the fifth day of the month due at the face value of S a 0 3 After the fifth day of the month for which it is due at the penalty rate of S d 13 S. 4 o This letting is upon the following terms and conditions: 1. SECURITY DEPOSIT: Resident agrees to pay Owner a security deposit of or-1 ?L. J MAC n; ne1IJ ?aUr L Dollars (S ) upon signing of this agreement with receipt herein acknowledged paid by . Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the payment of all rent and other amounts due from Resident to Owner or Agent, for the Resident's performance of this lease and against any damages caused to the premises or any other part of Owner's or Agent's property by Resident, his family and guests. Resident understands and agrees that the security deposit may not be applied as rent or against any other amount due from Resident to Owner or Agent without Owner's or Agent's written consent and abatement for early vacancy by Resident Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner or Agent's office within 24 hours of such If If keys are not returned with the specified time period, Owner or Agent will have the righ change the locks on the premises and charge such lock charge to resident. L 2. FAILURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 30th day of each month, in advance, at the Rental Office of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. If the rental payment is not received by the 15th of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: 1. Residents check is returned by the bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of $25.00 in addition to other charges set forth. H. Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The returned check charge and late fees are immediately due and payable as additional rent under the terms of the lease and are considered liquidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TEP01INATION: Qwner or Agent may terninate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4.SUBLETTING/USE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or make additions to the premises, its painting, its fractures, and change locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRAINAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. 3-rm 7. UTILITIES: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by Resident Heating of water for premises to be paid by Resident Electricity for premises to be paid by Resident Gas for premises(IF APPLICABLE) to be paid by Resident Sewer charge to be paid by Resident Water consumption to be paid by Resident Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to be paid by Resident Snow removal to be paid by(sidewalk) Resident Lawn maintenace to be paid by Owner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Owner or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. 8. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to pay for all repairs to the apartment its contents and to all other carts of members of Resident's family or his visitors Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the Owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR: serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. ' S,L5 10. RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither patty shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAMAGE BY FIRE OR OTHER CASUALTY: If the premises is damaged by fire or other casualty, Owner or Agent shall rppair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PREMISES DESCRIBEWPROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby leased, J..r•5 except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15, FAILURE TO PAY RENT/DEFAULT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner; (b) terminate this lease; (c) bring an action or recover possession of the premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable attorney's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporarily(with or without our consent), Resident may be charged for de-fleains, deodorizing, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements maybe made with the Owner in writing prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. IS. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the premises at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCU ANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE COMPLLANCE OF MEMBERS OF HIS FAIVIILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRINTED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the Gen of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security S,?•3 thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so in the name of Resident. 21. 1VIUNICIPAL INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper ideniScation from the inspector; and (3) to be present during the inspection. You also ave the right to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door ro permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the nest monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpal inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search warrant or similar lawful process which is issued by a judge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13 THIS AGREEMENT IS A LEGALLY BLNDLYG CONTRACT: IF YOU DO NOT UNDERSTAND THIS AGREEMENT,. PLEASE CONSULT AN ATTORNEY-AT-LAW:: 22. RESIDENT/JOINT AND SEVERAL LEASE AGREEIIENT:The term "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall be joint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or' Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The term "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parries hereto as if they were in every case named and expressed. 23. GENERAL: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owner's reresentatives unless done in writing. S.?.S ?;rr#wrrr?rw#r#?r?«#«r??li#irtrrrr#ii;rii} n l f (SEAL) Resid nt (SEAL) Parent or Guardian (SEAL) Parent or Guardian Fr«;lir1liiiliRrttwtlrr}i?4•irr#ri##;t?t;##ti#ii#i#t#i#rit4??ii}?} (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian ##w#ri!#4#t#«#r#i##•iYiYiiii?!ii!###ii#t;#rw##?liiYi4Mir4i•#i}ri}; (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian !w#iwi4#;wtii#•#;#;#!«ii#iY;i#4#4###r###Y###w#### Y#«##ii#r#Yir#?## (SEAL) Resident (SEAL) Parent or Guardian SE ( AL) Parent or Guardian i!###twMt##i###!¦iit#i#i#iw}!4#w#tw#}#i;iYii##i;# #riti##t#Yw#}i4#? Intending to be, legally bound, and in consideration of the lease with the above Resident, the undersigned, jointly and severally, hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the term of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. SIGNATURE OF OWNER OR AGENT: A Age With ss ej.E.s RESIDENTIAL LEASE AGREEMENT THIS LEASE, made this Ist day of December, 1996 BETWEEN Dr. Carl Pedersen the Owner, < eueA. M 4 6 c (hereinafter whether one or more, referred to a "Resident"), jointly and severally: WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartmentfhouse designated as 1 l Britton Road. Shippensburg. PA 17257 hereater called the "premises", for the term of wear beginning on the 1 st day of June, 1997, and ending on the 31 st day of May, 1998 , at the rent of A,.e w", 1._? ! I?7 ADollars(S 2S71A ) annually and monthly in installments of: Prior to the first day of the month for which it is due at a discounted rate of S 194 Between the first and the fifth day of the month due at the face value of 5 203.70 After the fifth day of the month for which it is due at the penalty rate of S 213.40 This letting is upon the following terns and conditions: 1. SECURITY, DEPOSIT: Resident agrees to pay Owner a security deposit of & ho r d nInef - - Dollars (S 194 ) upon signing of this agreement with receipt herein acknowledged paid by4,-,Dav?K. Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the payment of all rent and other amounts due from Resident to Owner or Agent, for the Resident's ? rformance of this lease and against any damages caused to the premises or any other part of Owners or Agent's property by Resident, his family and guests. Resident understands and agrees that the security deposit may not be agplied as rent or against any other amount due from Resident to Owner or Agent without Owner's or Agent's written consent. and that the monthly rent will be paid each month including the last month of the lease term without abatement for early vacancv by Resident. Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner cr Agent's office within 24 hours of such v If keys are not returned with the specified time period, Owner or Agent will have the ri EXHIBIT change the locks on the premises and charge such lock change to resident. 6.4. 2. FAMURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 30th day of each month, in advance, at the Rental Office of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. If the rental payment is not received by the 15th of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: I. Residents check is returned by the bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of $25.00 in addition to other charges set forth. IL Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The returned check charge and late fees are immediately due and payable as additional rent under the terms of the lease and are considered tiauidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TE&MLYATION: Qwner or Agent may te=nate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4.SUBLETTING/USE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or make additions to the premises, its painting, its fixtures, and change locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRAINAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. SA. 7. UTILIMS: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by Resident Heating of water for premises to be paid by Resident Electricity for premises to be paid by Resident Gas for premises(IF APPLICABLE) to be paid by Resident Sewer charge to be paid by Resident Water consumption to be paid by Resident Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to be paid by Resident Snow removal to be paid by(sidewalk) Resident Lawn maintenace to be paid by Owner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Owner or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. 8. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to pav for all repairs to the apartment, its contents and to all other parts of members of Resides family, or his visitors. Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the Owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR: serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. S•H. 10. RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither party shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAMAGE BY FIRE OR OTHER CASUALTY: If the premises is damaged by fire or other casualty, Owner or Agent shall repair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease. if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PRENUSES DESCRIBED/PROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby teased, 3.4 except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15. FAILURE TO PAY RENT/DEFAULT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner; (b) terminate this lease; (c) bring an action or recover possession of the premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable attorney's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporarily(with or without our consent), Resident may be charged for de-fleaing, deodorizing, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements may be made with the Owner in writing prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. 18. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the premises at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCUPANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE COMPLIANCE OF MEMBERS OF HIS FAMILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRINTED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the Gen of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security 4A thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so in the name of Resident. 21. MUNICIPAL INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper idenifcation from the inspector; and (3) to be present during the inspection. You also ave the right to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door ro permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the nett monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpal inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search warrant or similar lawful process which is issued by a judge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13. THIS AGREEMENT IS A LEGALLY BENDING CONTRACT: IF YOU DO NOT UNDERSTAND THIS AGREEMENT. PLEASE CONSULT A:N ATTORNEY-AT-LAW" 22. RESIDENT/JOINT AND SEVERAL LEASE AGREEMENT:The term "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall be joint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or. Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The term "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parries hereto as if they were in every. case named and expressed. 23. GENERAL: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owner's reresentatives unless done in writing. 5.9. li+wN#ww!/\YtiMw/;#/r#\\#\#Y#\r\t#\\w^wI#/ww/#!#?\w/#?/q\#\/w\\4\/t pl ? l 43c o1` / (SEAL) Resident (SEAL) Parent or Guardian (SEAT.) Parent or Guardian !!###F/•rw#litt#i#####»taYi#t#»4t?•.tR###rw###\/4 w###\#\/#\w?t\w?#/ (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian slMFl4#w#M#rt###/!##?4##?r\?M#\?4#??#\*w4wrww4w Yr wr#w4#\?\rM\##//#• (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian !#4##t!#R#wt?4/F/r#44rr#\\##?#4#\.rr Yrwwrwwr#rwa rw Mw MM#r#wra•#\/#• (SEAL.) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian ###!!##?•!##wtt/rpwlwM?4\/??M#w#?##M4•#w!##w4www •#rw1?#•?e\!4///#• Intending to be,legally bound, and in consideration of the lease with the above Resident, the undersigned, jointly and severally, hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the term of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. SIGNATURE OF OWNER OR AGENT: O erorA t ttn s4. r .:) - i: . ZZ fZ1 J ??J J I r ?\ } Q ?I ROLF E. KROLL, ESQUIRE Pa: Supreme Court I.D. No. 47243 MARGOLIS EDELSTEIN Post Office Box 932 Harrisburg, Pennsylvania 17108-0932 Telephone: 17171 975-8114 Attorney for: Fax: 17171975-8124 DEFENDANT HOUCK E-mail: rkroll(a)mareolisedelstein.com INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF CARL PEDERSEN, Plaintiff, V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL. ACTION - LAW STEVEN M. HOUCK, and JACK JOSEPH SPICER, Defendants : NO. 99-4435 CIVIL JURY TRIAL DEMANDED NOTICE TO PLEAD TO: The Insurance Placement Facility of Pennsylvania a/s/o Carl Pedersen, Plaintiff c/o James P. Carfagno, Esquire Two Penn Center - Suite 200 Philadelphia, PA 19102 YOU ARE HEREBY NOTIFIED to plead to the enclosed NEW MATTER within twenty (20) days of service hereof, or a delhult judgment maybe entered against you. Date: April 11, 2001 Attorney I.D. #47243 Post Office Box 932 Harrisburg, PA 17108-0932 (71.7) 975-8114 Attorney for Defendant Houck ROLF E. KROLL, ESQUIRE Pa: Supreme Court I.D. No. 47243 MARGOLIS EDELSTEIN Post Office Box 932 Harrisburg, Pennsylvania 17108-0932 Telephone: 17171975-8114 Attorney for: Fax: 17171 975-8124 DEFENDANT HOUCK E-mail: rkroll(o),mareolisedelstein com INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF CARL PEDERSEN, Plaintiff, V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW STEVEN M. HOUCK, and JACK JOSEPH SPICER, Defendants NO. 99-4435 CIVIL JURY TRIAL DEMANDED ANSWER WITH NEW MATTER OF DEFENDANT, STEVEN M. HOUCK, TO PLAINTIFF'S COMPLAINT AND NOW comes Defendant, Steven M. Houck ("Mr. Houck"), by and through his counsel, Margolis Edelstein, a Professional Corporation, to answer Plaintiffs Complaint, as follows: Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. 2. Denied. This allegation of Plaintiffs Complaint refers to a writing which speaks for itself and is the best evidence of all it contains and accordingly, no responsive pleading thereto is required. 3. Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. 4. Denied. Mr. Houck resides at 523 West Lisburn Road, Mechanicsburg, Pennsylvania 17055. 5. Denied as stated. It is admitted that a fire occurred. After reasonable investigation, Mr. Houck is without knowledge or information sufficient to form a belief as to the accuracy or inaccuracy of averments contained in paragraph 5 of Plaintiffs Complaint, and the same is accordingly denied. 6. Admitted. 7. Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. 8. Admitted in part and denied in part. It is admitted that a small fire had burned a portion of Defendant, James Spicer's ("Mr. Spicer") bed linens. Any statement or implication that there was any evidence that the fire was ongoing in any way, shape or form at the time Mr. Houck returned to his own room is specifically denied. Moreover, Mr. Houck denies any statement or implication that he played any part in the disabling of all smoke alarms. 9-10. Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. COUNTI NEGLIGENCE Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen v. Jack Joseph Spicer and Steven M. Houck 11. Paragraphs 1-10 are incorporated herein by reference as though fully set forth in full. 12. Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. 13(a-f). Denied. This paragraph and its corresponding subparagraphs state conclusions of law to which no responsive pleading is required and the same are therefore denied. 14. Denied. Mr. Houck is without sufficient information to verify as to the accuracy or inaccuracy of the averment in the corresponding paragraph of Plaintiffs Complaint, and the same is accordingly denied. WHEREFORE, Defendant, Steven M. Houck, demands judgment in his favor and against Plaintiff with costs accrued assessed to Plaintiff. COUNT II BREACH OF CONTRACT Insurance Placement Facility of Pennsylvania as subrogee of Dr. Carl D. Pedersen v. James E. Spicer and Steven M. Houck 15. Paragraphs 1-14 are incorporated herein by reference as though fully set forth in full. 16. Denied. This allegation of Plaintiffs Complaint refers to a writing which speaks for itself and its best evidence of all of it contains and accordingly, no responsive pleading thereto is required. By way of further answer, this allegation of Plaintiffs Complaint sets forth a conclusion of law to which no responsive pleading is required and the same is therefore denied. 17(a-0. Denied. This paragraph and its corresponding subparagraphs set forth conclusions of law to which no responsive pleading is required and the same are therefore denied. 18-19. Denied. This allegation of Plaintiffs Complaint constitutes a conclusion of law to which no responsive pleading is required and the same is therefore denied. WHEREFORE, Defendant, Steven M. Houck, demands judgment in his favor and against Plaintiff with costs accrued assessed to Plaintiff. NEW MATTER 20. Paragraphs 1-19 are incorporated herein by reference as though fully set forth in full. 21. Plaintiff has failed to state a claim upon which relief can be granted. 22. Plaintiffs claims are barred by the doctrines of contributory and comparative negligence. 23. Plaintiffs claims are barred by the doctrine of assumption of risk. 24. Mr. Houck was confronted with a sudden emergency not of his own creation to which he responded reasonably under the circumstances. 25. Plaintiffs claims are barred by the applicable statute of limitations. WHEREFORE, Defendant, Steven M. Houck, demands judgment in his favor and against Plaintiff with costs accrued assessed to Plaintiff. NEW MATTER PURSUANT TO Pa.R C P 2252(d) 26. Plaintiffs Complaint and Mr. Houck's answers thereto are incorporated by reference as though set forth in full. 27. In Plaintiffs Complaint, Plaintiff asserts a claim of negligence against Mr. Spicer and Mr. Houck, which claims are specifically denied with respect to Mr. Houck. 28. In the event Mr. Houck and Mr. Spicer are determined to be jointly and severally liable, Mr. Houck hereby asserts that Mr. Spicer is alone liable to Plaintiff or is liable over to Mr. Houck or is jointly or severally liable to Plaintiff for the reasons set forth in Plaintiffs Complaint. 29. These allegations are made exclusively for the purpose of protecting Mr. Houck's right to indemnification and contribution. WHEREFORE, Defendant, Steven M. Houck, demands judgment in his favor and against Plaintiff with costs accrued assessed to Plaintiff. Respectfully submitted, MARGOLIS ELSTEIN By: Rolf .I{rol squire Attorney I.D. #47243 Post Office Box 932 Harrisburg, PA 17108-0932 (717) 975-8114 Attorney for Defendant Houck VERIFICATION I, Rolf E. Kroll, Esquire, counsel for Steven M. Houck, do verify, under penalty of perjury and subject to the penalties of 18 Pa. C.S.A. Section 4904, relating to unswom falsifications to authorities, that the facts set forth in the foregoing Answer with New Matter to Plaintiff's Complaint are true and correct to the best of my knowledge, information and belief at this time and that I am authorized to execute this Verification on my client's behalf. CERTIFICATE OF SERVICE I, Jessica Brady, an authorized representative of Margolis Edelstein, hereby certify that I have served a true and correct copy of the foregoing document upon all counsel and parties of record this ?it-"day of A I C; 1 2001, by placing the same in the United States First Class Mail, postage prepaid, at Camp Hill, Pennsylvania, addressed as follows: James P. Carfagno, Esquire Law Offices of John M. Clark, L.L.C. Two Penn Center- Suite 200 Philadelphia, PA 19102 Mr. James E. Spicer 116 North Fayette Street Shippensburg, PA 17257 By: Jessica Brady ,, <. - i ?..? .J J INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF CARL PEDERSEN, Plaintiff V. STEVEN M. HOUCK, and JAMES E. SPICER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4435 CIVIL JURY TRIAL DEMANDED PRAECIPE TO WITHDRAW APPEARANCE TO THE PROTHONOTARY: Please withdraw the appearance of Rolf E. Kroll on behalf of Defendant Houck. M 0 IS EDELSTEIN By: / R if E. of ,Esquire Attorney I.D. #47243 Post Office Box 932 Harrisburg, PA 17108-0932 (717) 975-8114 PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of Richard H. Wix on behalf of Defendant Houck. -WIX WENGER & WEIDNER, PC Richard H. Wix, Esquire Attorney I.D. #07274 4705 Duke Street Harrisburg, PA 17109 (717) 652-8455 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 No. 99-4435 and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Civil Action PRAECIPE TO ENTER DEFAULT JUDGMENT TO THE PROTHONOTARY: Please enter a default judgment in favor of plaintiff, INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of Carl Pedersen and against JACK JOSEPH SPICER for failure to answer or otherwise respond to the Complaint-Civil Action. The complaint was served on the defendant on July 23, 1999 by the Sheriff of Cumberland County. A copy of the Return of Service of Complaint is attached as Exhibit A. A copy of the Notice of Praecipe to Enter Default (10 day letter) was served on the Defendant on August 18, 1999 by First Class U.S. Mail. A copy is attached as Exhibit B. The Affidavit of Service of the Notice of Praecipe to Enter Default is attached as Exhibit C. Enter a default judgment against the defendant Jack Joseph Spicer and assess damages against the defendant in the amount of $102,738.04, being the amount demanded in the complaint together with costs of $45.50 ntalisaq $102-,-9-8-3-.-N plus interest. Mark J. Wollman Attorney for Plaintiff gar* J. w Ol 1 wtp+.11 Law , J. e of Mark J. Wollman AIN I.D. N0. 57127 sufle 700.34 The Pavilion 261 Old York Road Jenkintown, PA 19046 (215)887-3505 2 SHERIFF'S RETURN - REGULAR CASE NO: 1999-04435 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INSURANCE PLACEMENT FACILILTY VS. HOUCK STEVEN M ET AL RICHARD SMTIH , Sheriff or Deputy Sheriff of CUMBERLAND County, Pennsylvania, who being duly sworn according to law, says, the within NOTICE AND COMPLAINT was served upon SPICER JACK JOSEPH the defendant, at 8:20 HOURS, on the 23rd day of July 1999 at CUMBRLAND COUNTY PRISON 1101 CLAREMONT ROAD CARLISLE, PA 17013 CUMBERLAND County, Pennsylvania, by handing to JACK J. SPICER a true and attested copy of the NOTICE AND COMPLAINT and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So answers: 18.00 3.10 .00 _ 8.00 X77 ine, eri - K J. WOLLMAN 07/23/1999 Sworn and subscribed to before me this day of 19 A. D. i ........................ ...._ .... ..............._ by - ?\4epL Sheriff / 0 ono ary EXHIBIT IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as subrogee of Carl Pedersen Plaintiff V. Steven M. Houck -and- Jack Joseph Spicer Defendant No. 99-4435 Civil Term NOTICE OF PRAECIPE TO ENTER JUDGMENT BY DEFAULT To: Defendant Jack Joseph Spicer Date of Notice: August 18, 1999 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT THERE YOU CAN GET LEGAL HELP: Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pa EXHIBIT 717-249-3166 Q AVISO IMPORTANTE Usted esta en rebeldia porqu ha fallado en tomar la accion exigida de su parte en este case. A menos de que usted actue dentro de diez dias de la facha de este aviso, se puede registrar una sentencia contra usted, si el benefico de una audencia y puede perder su propiedad o derechos importantes. Usted ded llevar este aviso a un abogado ensequida. Si usted no tiene un abagoda y no puede pagar por los servicios de un abagado, debe communicarse son la siguiente oficina para. averiguar donde puede obtener ayuda 2aegal: Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pa 717-249-3166 Mar} J. Wol an, Esq. Attorney for Plaintiff Law Olllou of Mark J. Wollman Airy 1.0. No. 57127 SU W 700-34 The Pavilion 251 Old York Road JenkinW Pa 19048 (215)587.7505 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 No. 99-4435 and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Civil Action CERTIFICATE OF SERVICE I, Mark J. Wollman hereby certify that a true and correct copy of the Notice of Praecipe to Enter Default Judgment By Default was served on the Defendant Jack Joseph Spicer at c/o Cumberland County Prison, 1101 Claremont Road, Carlisle, PA 17013, by regular first class US Mail on August 18, 1999. Mark J. Wol man EXHIBIT G COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 No. 99-4435 Civil Action CERTIFICATION OF NON-MILITARY SERVICE thereto. Affiant also certifies that the address of the plaintiff is 530 Walnut Street, Ste. 1650, Philadelphia, PA 19106. I certify that I am familiar with the penalizes of 18 Pa. C.S. section 4904 regarding unsworn falsification to authorities. I, Mark J. Wollman, beir3 duly sworn according to law, deposes, certifies and says that I am attorney for the plaintiff in this matter and that the defendant Jack Joseph Spicer resides at c/o Cumberland County Prison,1101 Claremont Road, Carlisle, PA 17013 and that defendant is not in the Military Service of the United States, nor any State or Territory thereof or its allies as defined in the Soldiers' and Sailors' Civil Relief Act of 1940 and the amendments law a4 or Mark J. Wollman At le 700 3457127 The Pavilion / 261 Old York Road Jenkintown, PA 19046 Mark J . W lman (215) 887-3505 OFFICE OF THE. PROTHONOTARY COURTOF COMMON PLEAS OF CUMBERLAND COUNTY Cumberland County Courthouse I Courthouse Square Carlisle, PA 17013 Curtis R. Long Prethonotary To: Jack Joseph Spicer INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 No. 99-4435 Civil Action and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 NOTICE Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a Judgment has been entered against you in the above proceeding as indicated below. Curtis R. Long Prothonotary X Judgment by Default Money Judgment _ -Judgment in Replevin uw Judgment for Possession Mark J. Wollman -- Judgment on Award of Arbitration I.D. No. 57127 An Se 700-34 - Judgment on Verdict The 261 Old PavilionYork Road _ _ Judgment on Court Findings Jenkintown. PA 19046 (215) 887-3505 IF YOU HAVE ANY QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL: A'1'1'ORNEY MARK J. WOLLMAN, ESQ. at this telephone number: (215) 837-3505 ,? 1 ?? ? -- `-• - ?,. ?. ? :, ? : ? . CZS _ _. V? ,_ ? `'? , :: L ? ? U• .i ?? 1? _ -.! IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as subrogee of Carl Pedersen Plaintiff V. Steven M. Houck -and- Jack Joseph Spicer Defendant No. 99-4435 Civil Term ACCEPTANCE OF SERVICE I, Rolf E. Kroll, Esq. state that I am counsel to the defendant Steven M. Houck and I hereby accept,vice of the pla' tiff's com mt in this?att?r which was served upon me on the day of J? / X1999. I further certify that I am authorize accept this service. T-/ BY for LWendant Steven M. Houck - ?? - ? ? ? ? ? _. ?-? ,.,: t, ' u: ?? " ? . ... ` u. ?': - ?- V I ::L ?- V: • ?? i• _. n C? ?-? SHERIFF'S RETURN - REGULAR CASE NO: 1999-04435 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INSURANCE PLACEMENT FACILILTY VS. HOUCK STEVEN M ET AL RICHARD SMTIH , Sheriff or Deputy Sheriff of CUMBERLAND County, Pennsylvania, who being duly sworn according to law, says, the within NOTICE AND COMPLAINT was served upon SPICER JACK JOSEPH the defendant, at 8:20 HOURS, on the 23rd day of July 1999 at CUMBRLAND COUNTY PRISON 1101 CLAREMONT ROAD CARLISLE, PA 17013 CUMBERLAND County, Pennsylvania, by handing to JACK J. SPICER a true and attested copy of the NOTICE AND COMPLAINT and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 18.00 So answers: 3.10 1 8.00 $2-9.IU-0 RK J. 99LLMAN by Sworn and subscribed -o before me this day of 199A.D. ---- epu y e i roenonot-ar PRAECIPE FOR LISTING CASE FOR TRIAL (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY Please list the following case: (Check one) ( X ) for JURY trial at the next term of civil court. ( ) for trial without a jury. --------------------- ------------------- CAPTION OF CASE (entire caption must be stated in full) (check one) INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF (X ) Civil Action - Law CARL PEDERSON ( ) Appeal from Arbitration (Plaintiff) VS. STEVEN M. HOUCK and JAMES E. SPICER VS. (Defendant) (other.) The trial list will be called on 1/7/2003 and Trials commence on Feb. 3, 2003 Pretrials will be held on Jan. 15, 2003 (Briefs are due 5 days before pretrials.) (The party listing this case for trial shall) provide forthwith a copy of the praecipe to all counsel, pursuant to local Rule 214.1.) No- Civil 99-4435 19 Indicate the attorney who will try case for the party who files this praecipe: Richard H. Wix, Esq., Wix, Wenger & Weidner, 4705 Duke St., Harrisburg, PA 7 09-3099; 717 652-8455; ID 07274 (For Defendant Houck) Indicate trial counsel for other parties if known: Jam c P (`=+-fagno Esg,, 1500 JFK Blvd., Suite 200, Two Penn Center, Philadelphia, PA 19102 (For Plaintiff). Counsel unknown for Defendant James E. SDicer This case is ready for trial. " JJII Signed: ?A C? ?,dKS.rA ? ry. Print Name: Richard H. Wix. Esq. Date: ?( ova 0 2 Attorney for: Defendant Houck C V-'i: O Z1 O o U INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as subrogee of Carl Pederson, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-4435 V. CIVIL ACTION - LAW STEVEN M. HOUCK and JAMES E. SPICER, JURY TRIAL DEMANDED Defendants DEFENDANT STEVEN HOUCK'S ANSWER TO PLAINTIFF'S MOTION FOR CONTINUANCE AND NOW comes the Defendant, Steven Houck, by his attorneys, Wix, Wenger & Weidner and files the following answer and objection to Plaintiffs Motion for Continuance. 1. Admitted. 2. Defendant is without knowledge as to whether or not the wife of Carl Natale is suffering from cancer, however, the relevance of same is not applicable since Carl Natale was not listed as a witness in Plaintiffs Pre-Trial Memorandum. 3. The Defendant incorporates herein by reference his answer to paragraph 2 of Plaintiffs Motion. 4. The Defendant incorporates herein by reference his answer to paragraph 2 of Plaintiffs Motion. 5. Defendant does object to the continuance of this matter for the reasons set forth in New Matter. NEW MATTER 6. The above-captioned matter was listed for trial at the February 2003 Term of Cumberland County Common Pleas Court, and was continued from that trial list at the request of Plaintiffs counsel. 7. Mr. Natale was not listed as a witness on Plaintiffs Pre-Trial Memorandum. 8. As can be seen from a review of the UBA Investigation Report, Mr. Natale was not at the scene of the fire, rather the UBA employees who conducted this investigation were Barry K. White and John W. Noblet, both of whom are identified as Plaintiffs witnesses in Plaintiffs Pre-Trial Memorandum. Respectfully submitted, WIX, WENGER & WEIDNER ByC"?4 Richard H. Wix, Esq., ID# 07274 Attorneys for Defendant Houck 4705 Duke Street Harrisburg, PA 17109-3099 (717) 652-8455 Dated: ID S 03 2 CERTIFICATE OF SERVICE AND NOW, this 5th day of March, 2003, I, Gaye Crist, an employee of the firm of Wix, Wenger & Weidner, attorneys for Defendant Houck, hereby certify that I served the within Defendant Steven H ouck's Answer to Plaintiffs Motion for Continuance this date by Richard H. Wix, Esq. hand delivering a copy addressed as follows: The Honorable Kevin A. Hess Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 and by depositing a copy of same in the United States mail, postage prepaid, in Harrisburg, Pennsylvania, addressed as follows: Patricia Haas Corll, Esquire 800 North 3 d Street, Suite 200 Harrisburg, PA 17102 WIX, WENGER & WEIDNER Gaye C st of cr, ul: - ?•; l ) ,i .7 vJ 1 a UJ w z 0 o 0 w w° s w ? z a w ^ n C? w Y N uJ f ° w N X a _ x Xp\ &E i \STIG UBA INVESTIGATION REPORT FILE # 3424 THIS IS A CONFIDENTIAL AND PRIVILEGED REPORT REPORT - I INVESTIGATIVE REPORT DATE September 4, 1997 CLIENT PENNSYLVANLA FAIR PLAN 3325 CHESTNUT STREET, SUITE 600 PHILADELPHIA. PENNSYLVANIA SUBJECT DOCTOR CARL PEDERSEN LOCATION OF LOSS • ALBUQUERQUE • BALTIMORE • CHARLESTON • CLEVELAND • ERIE • PITTSBURGH • WASHINGTON r? it BRITTON ROAD SHIPPENSBURG, PENNSYLVANIA CLAIM NUMBER K7369 5490 Derry Street, P.O. Box 4022, Harrisburg, PA 17111 1.800.822-3973 (717) 564.7820 FAX (717) 564.0781 September 4, 1997 CLIENT Pennsylvania Fair Plan 325 Chestnut Street Philadelphia, PA 19106 ATT: Barbara Moore Telephone: 215-629-8843 REPORT OF INVESTIGATION Dr. Carl Pedersen LOCATION OF LOSS I 1 Britton Road Shippensburg, PA 17257 OCCURRENCE FIRE OF WEDNESDAY, XLY 23, 1997 At approximately 0400 and 0600 hours ... I NO DEATHS OR INJURIES Penns vlvama Fair Flan Re: Dr. Carl Pedersen September 1. 1997 INSURANCE INFORMATION PENNSYLVANIA FAIR PLAN ADJUSTER: William McCracken McShea Associates 47 Marchwood Road, Suite 2AI I Exton, PA ALPHABETICAL SUBJECT INDEX BREWBAKER, Trooper Nolan E. Fire Marshal Pennsylvania State Police Carlisle, PA COY, Gregg Fire Chief Shippensburg Fire Department Shippensburg, PA ENCLOSURES Exhibit Tl - Floor Plan Diagram; Exhibit :2 - Critical Photo Orientation Diagram. A detailed diagram including dimensions was prepared at the scene by Investigator Barry K. White and was redrawn for presentation by Carl J: Natale.. The layout and dimensions are approximate. L'BA Fire & Explosion Investigators, Inc 5191) Derry Street Harrisburg, PA 17111 Page 3 Pennsylvania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 SYNOPSIS The fire scene was carefully inspected by LBA on Friday, July 25, 1997. The fire scene examination encompassed all areas of the exterior and interior sides of the structure. The primary area of concentrated burning occurred in the southeast portion of the flrst floor. The Point of Origin is situated near a window-mounted air conditioner situated in the east quadrant of a bedroom. UBA determined the fire is accidental and ignition is attributed to electrical malfunction. HISTORY AND CIRCUMSTANCES OF LOSS The involved structure is a two-story, wood frame apartment building, of approximately twenty years of age, measuring 34 feet by 56 feet in overall.-dime'n'sion -(91- 10. The exterior is covered with brick facing and a gabled asphalt-shingled roof. Wood joists and wood floor deck surfaces are provided throughout. ; The structure is erected on a small, open city lot, and is in good condition with satisfactory maintenance, however, there is evidence of substandard housekeeping. Suitable access is provided via a paved roadway in an older residential neighborhood of Shippensburg Borough, Cumberland County, PA. The building is utilized by tenants as residences and was occupied at the time of the occurrence. UBA Fire & Explosion Investigators. Inc 5490 Derry Street Harrisburg, PA 17111 Page 4 Pennsylvania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 FIRE DISCOVERY On Wednesday, July 23, 1997, at approximately 0400 hours a fire was discovered by an unknown occupant who extinguished the fire and neglected to notify the local fire department. At approximately 0600 hours on the same date, the fire rekindled, burning with much more intensity. An unknown occupant discovered the rekindled fire and notified the Shippensburg Fire Department. The firefighters under the command of Tire Chief Gregg Coy responded in a timely manner, suppressing the blaze. The doors and windows were closed at the time of the firefighters arrival. A battery-operated smoke detector was present. There were no reports of thunderstorms, or abnormal climatic conditions. The fire department is located approximately one mile from the fire scene. Water suppiv (for suppression) is provided via public hydrant. The nearest structure is approximately 150 feet distant. Trooper Nolan E. Brewbaker, Pennsylvania State Police Fire Marshal, is conducting an independent and parallel fire scene investigation. UBA Fire & Explosion Investigators, Inc 5490 Derry Street Harrisburg, PA 17111 Page 5 Pennsvlvama Fair Flan Re: Dr. Carl Pedersen September a. 1997 PRESENT FOR INSPECTION The following person was present for the fire scene inspection of Friday, July 25, 1997. I. Barry K. White, UBA. The following persons were present for the fire scene inspection of Monday, July 28, 1997. 1. Barry K. White, UBA; 2. John W. Noblet, UBA. EXTERIOR INVESTIGATION On Friday, July 25, 1997, the initial fire scene investigation was conducted by UBA. A subsequent fire scene investigation was conducted by UBA on Monday, July 28, 1997. The initial fire scene inspection was started at the exterior southeast corner of the structure (# l ), continuing in a counterclockwise rotation until the ful perimeter was examined. The front side (east elevation) contained a small roof over the main entrance which revealed intense charring to the wood framework on the exterior side of the porch roof. Windows on either side of the front porch and brick facing revealed a heavy laver of UBA Fire & Explosion Investigators. Inc 5490 Derry Street Harrisburg, PA 17111 Page 6 Peansvivania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 Exterior, continued carbon deposits. This finding indicates the fire originated at the first floor, ascending to roof level. The window frame immediately to the left of the front porch contained the heaviest laver of carbon deposits. Vinyl shutters which were positioned on either side of the windows were totally consumed by tire. UBA learned a window air conditioner was situated in this particular window. The remaining exterior perimeter sidewalls sustained minimal fire and smoke damage. Please refer to Photographs 6 through 11. The roof was moderately damaged as evidenced in Photograph 66. The front, rear, and side yard areas were carefully examined and although cluttered, yielded the air conditioner. Please refer to Photographs 94, 95, and 96. Utilities The building is provided with an energized 200-amp aerial electric service entrance on the north side which was undamaged. The building is not provided with other fuel gas or fuel oil services. INTERIOR INVESTIGATION The interior examination was started after entry was made into the structure via the main entrance (east elevation) which entered into a small foyer containing a stairway to the second floor and a doorway to the first floor family room. UBA Fire & Explosion Investigators, Inc 5490 Derry Street Page 7 Harrisburg, PA 171 11 Pennsylvania Fair Flan Re: Dr. Ctrl Pedersen September 4. 1997 Basement Photographs 80 through 93 The basement, comprised of storage and utilities, was not affected by fire activity, however, smoke and water damage was present. There is no evidence of fire damage, however, the suspended ceiling was partially removed by firefighters seeking fire extension. Numerous alterations of the electrical system were present. Please refer to the attached photographs (00-93). First Floor Photographs 14 through 53 The first floor, comprised of a kitchen, dining room, family room, foyer, three bedrooms, and bathroom, sustained extensive fire damage. The initial fire scene inspection revealed the primary area of concentrated burning (room of origin) was situated in the bedroom situated in the east side of the hallway. This room of origin was extensively fire damaged. The initial fire scene observations found the furnishings were removed from the family room situated in the northeast quadrant. Point of Origin Photographs 38 through 63 The fire scene analysis revealed the Point of Origin is situated in an electrical outlet positioned on the east wall of the room of origin. UBA recovered an air conditioner and power supply cord that was plugged into a duplex receptacle. The air conditioner power supply cord and duplex receptacle were recovered by the investigator for further laboratory analysis. Fire, heat, and smoke migrated from the room of origin to other portions of the first floor and upper levels, causing proportionately less damage as UBA Fire & Explosion Investigators, Inc 5490 Derry Street Harrisburg, PA 17111 Page 8 Pennsylvania Fair Plan Rc: Dr. Carl Pedersen September 4. 1997 Discussion / Conclusion, continued Based on a careful and detailed investigation of the fire scene, it is the opinion of the UBA investigators the initial Ere is accidental. The observations made at the fire scene clearly implicate electrical malfunction as the cause of the initial fire. The second fire. which was investigated by UBA, rekindled in the mattress as a result of incomplete suppression of the initial fire by the apartment's occupants. The Pennsylvania State Police Fire Marshal concurs with UBA's findings regarding identification of the Point of Origin and cause of ignition. UBA is discontinuing the fire scene examination at this time Respectively submitted, UBA FIRE & ENPLOSION INVESTIGATORS Barry K. White Senior Fire Investigator John W. Noblet Senior Fire Investigator Licensed Master Electrician USA Fire & Explosion Investigators, Ina 5490 Derry Street Harrisburg, PA 17111 Page 89 Pennsvlvama Fair Flan Re: Dr. Carl Pedersen September a. 1997 Point of Origin. continued the distance from the Point of Origin increases. The maximum thermal activity occurred in the bedroom identified as the room of origin. Bum patterns, including information learned by UBA during the investigation, supports LBA's determination regarding the positive identification of the Point of Origin. Excavation. Photographs 38 through 63 Excavation was required in the room of origin to access burn patterns and search for evidence at the Point of Origin. The UBA investigator obtained photographic illustrations prior to disturbing the Fire scene to preserve the "as-found" condition. Subsequent to excavation, the investigator observed burn patterns situated in close proximity to an electrical outlet on the east wall. Consumption of a portion of a mattress situated at the foot of a bed was also positioned in close proximity to the Point of Origin. The predominant bum pattems in the room of origin were present on the bed and east wall of the first floor bedroom. Please refer to Photographs 38 through 63. Electrical UBA carefully examined all electrical outlets, appliances, and fluorescent light fixtures (that had fallen to floor of the hallway) for unusual electrical activity, however, none were present. LBA eliminated all known causes of ignition, except electrical malfunction occurring in the area of the receptacle where the air conditioner's power supply cord was energized. The air conditioning unit, later identified as an Emerson Radio Phonograph Company air conditioner and power supply cord, was given a UBA Fire & Explosion Investigators. Inc 5490 Derr v Street Harrisburg, PA 17111 Page 9 Pernsvlvania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 Electrical continued preliminary examination at the scene. The plug on the power supply cord revealed unusual electrical activity, consisting of beading on the copper wire. The cord illustrated a sharp indentation. In reconstruction of the fire scene UBA learned a portion of the bed was pushed up against the power supply cord, causing this deep impression in the power supply cord. The air conditioning unit revealed exposure to heat and flame impingement on the interior side with all control knobs having reached their flow temperature. Exposure to the air conditioning unit was most prominent on the control side of the unit. During the field examination UBA could not determine if the unit fell from the window at some stage of the fire or was removed by the firefighters subsequent to the fire. Identification of the air conditioning unit was not possible at the fire scene, however, sub- sequent investigation in the UBA laboratory revealed the manufacturer is the Emerson Radio Phonograph Company. UBA's client was apprized of this information. Fuel Load (origin area) During the Fire scene analysis the investigator learned construction in the Area of Origin consists of wood wall framing covered with paneling (939-63). The wood framed ceiling is covered with suspended non-rated ceiling tile. The wood floor deck surface is covered mostly with wall-to-wall carpeting (939-63). The investigator determined windows in the Area of Origin were closed at the time of the tire. UBA Fire & E:plosion Investigators, Inc 5490 Derry Street Harrisburg, PA 17111 Page 10 Pennsylvania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 Fuel Load, continued Deep charring was present at the Point of Origin. Bum patterns on the surrounding surfaces indicate intense flame activity, commensurate with a moderately- propagating fire (439-63). Temperature value indicators were carefully examined and were within the normal ranges, considering the fuel load to exist. Evidence of floor burning was present, however, UBA determined the burning is attributed to normal propagation. As pan of the fire scene investigation a careful search for incendiary devices or significant quantities of stored flammable liquids was conducted, however, none were located. Heavy carbon deposits were present on the window glass, full wall and ceiling surfaces (939-63). The investigator determined the fire began as a slowly-smoldering fire prior to auto-ventilation, at which time open conflagration occurred. In the opinion of the investigator, the apartment of origin is provided with poor quality furnishings. EVIDENCE RECOVERED In an effort to positively identify the failure responsible for ignition, items of evidence were recovered for laboratory analvsis. The evidence was tagged for UBA Fire & Explosion Investigators. Inc 5491) Derry Street Harrisburg, PA 17111 Page I I Perms ylvania Fair Flan Re: Dr. Carl Pedersen September 4. 1997 Evidence Recovered. continued identification and submitted to the UBA Laboratory by Senior Investigator Barry K. White. The evidence includes the following: 8424-01 An Emersion Radio Phonograph Company air conditioner (#94-96); 8424-02 Electrical power supply cord (954-59); 8424-03 Duplex electrical outlet (#60-61). EXCLUSIONS The building was provided with utility services and various other potential ignition hazards, ail of which were examined individually. The potential ignition hazards in any given structure fall into three basic categories including rapid propagation, moderate propagation and smoldering ignition. The UBA Investigators have prepared an analysis of each type of burning utilizing the burn patterns and remaining evidence at the fire scene, in concert with other information including interviews and eyewitness accounts in order to research other ignition possibilities. Several ignition hazards known to exist that develop slowly-propagating fires include electrical defects and malfunctions, spontaneous combustion, light refractions, appliance failures and careless disposal of smoking material. Each of these UBA Fire & Explosion Investigators, Inc 5490 Derry Street Harrisburg, PA 17111 Page 12 Pennsvhama Fair Flan Re: Dr. Carl Pedersen September 4. 1997 Exclusions, continued possibilities were eliminated except electrical malfunction since the burning characteristics observed at the scene fall within the parameters and criteria required. Several other potential hazards that produce moderate levels of burning include stationary or temporary heating devices, candles, standing pilot lights, cooking fire or uncontrolled trash buming, but there was no evidence to support these potential causes. Rapid propagation that develops from flammable gases or flammable liquids was also considered and eliminated, since the burning characteristics do not fall within this category. PHOTOGRAPHIC ILLUSTRATION All photographs were taken by Barry K. White beginning on Friday, July 25, 1997 using a Canon 35-millimeter single lens reflex camera and Kodacolor II negative fllm. A Critical Photo Orientation Diagram is provided in Exhibit 142. Due to space requirements, only the critical photographs were listed. Others appear in the report that are not on the enclosed diagram. UBA Fire & Explosion Investigators, Inc 5490 Derry Street Harrisburg, PA 17111 Page I3 of CJI 1? I ;; T4 1 •rl i• ? I IL' ?rJ ? l Jl. ? I I ?'lneT • I I• r I 1 1 j7L^OR f'Lrw wA Amy LI ?M 1 of 2= 'a -- 1 a, I I? I j ._.- 4 Gw ?• I , .. I ':211 RER of ' ' ? 0.161N I I I FI R I''Lr=F? ? ?AGkRm ?,? Ama? ?AQT of 54-24 Penns vivaria Fair Plan Re: Dr. Carl Pedersen September J. 1997 DISCUSSION / CONCLUSION The UBA investigators completed a detailed Fire scene analysis and based on burn patterns, information provided by previous investigators, and physical evidence, the Point of Origin was positively established. The investigators determined the fire originated at/or in close proximity to where the electric flex-receptacle containing the power supply cord for a window-mounted air conditioner was situated. As illus- trated in Photograph 59, the air conditioner power cord contained a sharp indentation which was caused by a mattress pushed up against the cord. UBA opines the initial fire was caused by the severe kinking of the air conditioner's power supply cord creating a heat build-up and utlimately ignition temperatures. Other factors include: The investigators learned the occupants in the tenable space did not notify the firefighters of the initial fire, but used a dog bowl and an unknown container filled with water in an attempted suppression of the fire. > In the opinion of the investigating team, the fire rekindled in the mattress which the occupants in the apartment improperly or inadequately failed to suppress. This failure and suppression permitted the fire to rekindle and extend to other portions of the tenable space. causing extensive damage. USA Fire & Explosion Investigators, inc. 5490 Deny Street Hanisburg, PA 17111 Page 88 I INSURANCE PLACEMENT : IN THE COURT OF COMMON PLEAS OF FACILITY OF PENNSYLVANIA, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION - LAW Vs. 99-4435 CIVIL STEVEN M. HOUCK and JACK JOSEPH SPICER, Defendants IN RE: PLAINTIFF'S MOTION FOR CONTINUANCE ORDER AND NOW, this 10' day of March, 2003, on motion of counsel for the plaintiff, trial herein is continued. The Prothonotary is directed to list this matter for trial in the term commencing July 7, 2003. BY THE COURT, Hess, J. Patricia Haas Corll, Esquire For the Plaintiff Richard H. Wix, Esquire For the Defendant Court Administrator :rlm Po1119fe /1172- /', ft ?-c x /(? ?pd3 MAR 0 4 2003 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of Carol Pederson, Docket No.: 99-4435 Plaintiff(s) V. STEVEN M.H000K 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 And JACK JOSEPH SPICER C/O Cumberland County Prision 1101 Claremont Road Carlisle, PA 17013 Defenants. ORDER AND NOW, this _ day of March, 2003, upon consideration of Plaintiff's Motion for Continuance, it is HEREBY ORDERED, ADJUDGED AND DECREED that this case is removed from the current trial list to be placed upon the 2003 trial list. J. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE PLACEMENTFACILITY OF PENNSYLVANIA, as Subrogec of Docket No.: 99-4435 Carl Pederson, Plaintiff(s) V. STEVEN M.HOUCK 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 And JACK JOSEPH SPICER C/O Cumberland County Prision 1101 Claremont Road Carlisle, PA 17013 Defendants PLAINTIFF'S. INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA A/S/0 CARL PEDERSON'S MOTION FOR CONTINUANCE AND NOW, comes the Plaintiffs, by and through their counsel, John M. Clark, Esquire, Patricia Haas Corll, Esquire, and Weber, Gallagher, Simpson, Stapleton, Fires & Newby, LLP, and files the following Motion for Continuance averring as follows: 1. The Pretrial Conference in this matter was held on February 19, 2003 before The Honorable Edgar Bayley. At that time it was determined that this case would be on the March 10, 2003 trial list. 2. In the process of preparing for trial, Carl Natale of UBA Fire & Explosion Investigators, Inc., has advised the undersigned that his wife is suffering from cancer. 3. On February 28, 2003, the undersigned counsel was advised by Mr. Natale that his wife is declining rapidly and she is not expected to live beyond the next two weeks. Mr. Natale is the primary care giver for his wife and she is suffering the last stages of her illness in their home with care from Mr. Natale and Hospice. 4. Due to Mr. Natale's need to provide care for his wife, we respectfully request that this trial be continued in order to allow him to attend to his wife in her last days. 5. Counsel has contacted the office of counsel for Defendant Steven Houck, Richard H. Wix, Esquire, and he has not yet advised us as to whether he has an objection to this continuance. WHEREFORE, Plaintiff respectfully requests this Honorable Court enter an Order rescheduling this trial from the current March 10, 2003 trial list to the next available trial list. The proposed order is attached. Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NE*B--?, LLP PA SUftreme Court I.D. No.: 59238 80 North Third Street, 2" Floor Harrisburg, PA 17102 Phone: 717.237.6940 Fax: 717-237-6949 Attorneys for Plaintiff CERTIFICATE OF SERVICE 1, Patricia Haas Corll, Esquire, hereby certify that 1 am this day serving a copy of the foregoing Motion for Continuance via U.S. First Class Mail, upon the below persons(s) which service satisfies the requirement of the Pennsylvania Rules of Civil Procedure. Richard Wix, Esquire Wix Wenger & Weidner 4705 Duke Street Harrisburg, PA 17100 February 28, 2003 ?T; '? ?=_ _' ?' - ? - i.? `= >?; ' r,: :: ?_. ` ?==; '"' ' i `? ?_:. - ?ii V r j V , ?9 9 -a yyl AUG q 8 200 INSURANCE PLACEMENT PAC'ILITI ' IN fl 11; C'OURT OP COMMON I'Ll.AS OF PENNSYLVANIA, AS SUBROGEI: ('UM13FRLAND COUNTY, PENNSYLVANIA OP CARL PEDERSEN. Plaintiff CIVIL ACI'ION - LAW v. NO. 99-4435 CIVIL STEVEN M. HOUCK, and JAMES E. SPICER, Defendants JURY TRIAL DEMANDED ORDER AND NOW, this day of 2001, upon consideration of the Motion to Consolidate, it is NOW AND HEREBY ORDERED that the actions identified at docket numbers 99-2441 and 99-4435 respectively, are hereby consolidated so that this matter may be listed for trial. 00 a rd?P a d, FFAs . BY THE COI IRT- . p- n'\ jj ?og is )/ A I e INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF CARL PEDERSEN, Plaintiff V. STEVEN M. HOUCK, and JAMES E. SPICER, Defendants AUG ?8 20p? IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4435 CIVIL ?/ JURY TRIAL DEMANDED ORDER ?? ?r AND NOW, this L day of r 2001, upon consideration of the Motion to Consolidate, it is NOW AND HEREBY ORDERED that the actions identified at docket numbers 99-2441 and 99-4435 respectively, are hereby consolidated so that this matter may be listed for trial. RY THF. C01IRT- G?pe,?La.AJ/ C o?-ia-a R?s J. c; GUF: '..V,VIl' PE dVSY? o'.Nl IA ROLF E. KROLL, ESQUIRE Pa. Supreme Court I.D. No. 47243 MARGOLIS EDELSTEIN Post Office Box 932 Harrisburg, Pennsylvania 17108-0932 Telephone: 17171975-8114 Attorney for: Fax: 17171975-8124 DEFENDANT HOUCK E-mail: rkroll(d)maraolisedelstein com INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, AS SUBROGEE OF CARL PEDERSEN, Plaintiff V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW STEVEN M. HOUCK, and JAMES E. SPICER, Defendants NO. 99-4435 CIVIL JURY TRIAL DEMANDED MOTION TO CONSOLIDATE AND NOW comes Defendant, Steven M. Houck, by and through his counsel, Margolis Edelstein, to answer the Complaint of Plaintiff, Insurance Placement Facility of Pennsylvania, as subrogee of Carl Pedersen, and in support thereof avers the following: This case arises from a fire that occurred on July 23, 1997 at the Tau Kappa Epsilon Fraternity house. The house was largely destroyed by the fire. 2. On or about April 23, 1999, a Complaint was filed at docket number 99-2441 before this Honorable Court, a true and correct copy of which is attached hereto as Exhibit A. An Answer was filed to that Complaint on June 7, 1999. On or about July 22, 1999 a second Complaint was filed at docket number 99-4435, a true and correct copy of which is attached hereto as Exhibit B. 3. Plaintiffs Complaint at docket number 99-4435 is identical to the prior Complaint filed at 99-2441, with the exception that the name James E. Spicer as party Defendant, was changed to Jack Spicer. A default judgment was taken against Jack Spicer. 4. The parties are preparing to list the above-referenced matter for trial. Accordingly, for purposes ofjudicial efficiency and in an effort to avoid confusion, the parties seek to consolidate the two actions. 5. The concurrence of Plaintiff's counsel in this Motion has been sought and obtained. WHEREFORE, Defendant requests that this Honorable Court enter an Order consolidating Plaintiff's second action at docket number 99-4435, with the original filing at docket number 99-2441, so that this matter may be listed for trial. Respectfully submitted, MARC4LIS EDELSTEIN Attorney'l.D. ##47243 Post Office Box 932 Harrisburg, PA 1 7 1 08-093 2 (717) 975-8114 Attorney for Defendant Houck 4357. - I COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen 530 Walnut Street, Suite 1650 Philadelphia, PA 19106 No. ??- ?YNl V. Steven M. Houck 523 W. Lisbon Road Mechanicsburg, PA 17055-5830 Civil Action and James E. Spicer 116 North Fayette Street Shippensburg, PA 17257 TRW C'Dpy FROM REOORo ffi Cddiale, pa. NOTICE NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pa 717-249-3166 COURT OF COMMON PLEAS CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen 530 Walnut Street-Philadelphia, PA 19106 No V. Steven M. Houck 523 W. Lisbon Road Mechanicsburg, PA 17055-5830 -and- James E. Spicer 116 North Fayette Street Shippensburg, PA 17257 Civil Action COMPLAINT Plaintiff, INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl D. Pedersen (the "Insured") by and through its undersigned counsel avers as follows: 1. Plaintiff is an unincorporated non-profit association created by statute, 40 P.S. 1600.101-1600.502, Act of July 31, 1968, P.L. 738, to issue basic fire insurance policies in the Commonwealth of Pennsylvania, and maintains a principal place of business at 530 Walnut Street, Suite 1650 Philadelphia, Pennsylvania and is entitled by law and equity to bring this action by virtue of an insurance payment made to Carl D. Pedersen (the "Insured") as described in more detail below. 2. Plaintiff insured the Tau Kappa Epsilon fraternity house ('TKE House") located at 11 Britton Road, Shippensburg, Pennsylvania (the "Premises") under Policy of Insurance No 612180-97-0 effective from 02/12/97 to 02/12/98 (the "Policy"). A true and correct copy I- of the declaration page of said Policy is attached as Exhibit A. 3. The defendant James E. Spicer is an adult individual with an address of 523 W. Lisbon Road, Mechanicsburg, PA 17055-5830. 4. Defendant Steven M. Houck is an adult individual with an address of 116 North Fayette Street, Shippensburg, PA 17257 5. A major fire occurred on or about July 23, 1997 at the Tau Kappa Epsilon fraternity house, which consumed and destroyed most of the house and contents therein (the "Fire" or "Major Fire"). 6. At the time of the fire, the defendants were present in and residing at the TKE House. 7. The Major Fire complained of herein was caused by the re-kindling of a small, earlier fire a few hours prior. 8. The small, earlier fire occurred when defendant James E. Spicer, turned on his air conditioner and went to sleep. He was awakened by a small fire burning at the end of his mattress which he attempted to extinguish solely by_poudiag-water-onfmm_a-djo bowl ontc The authorities were not called. He was assisted by Steven M. Houck who was sleeping in another room. The two defendants left the burning and/or burnt bedding in the room and then removed batteries from smoke alarms is the Premises before the two moved to Houck's room to return to sleep. 9. Thereafter, fire re-kindled in the mattress which set surrounding consumables on fire, igniting the Major Fire to the premises. The Major Fire engulfed the entire premises; whereupon defendants finally awoke and escaped to safety through a window with_adcg.-,10. Pursuant to the Policy of Insurance, the Facility paid its Insured $102,238.04 in Mark J. Wollman Attv I.D. No. 57127 Suite 700.34 i he Pavilion 261 Old York Road Jenkintown, PA 19046 15) 867.3505 partial indemnity for the reasonable actual cash value damages arising out of the Fire. By virtue of its payment, the Facility became subrogated to the rights of its Insured and is entitled by law and equity to proceed herein. -2- COUNTI NEGLIGENCE Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen v. James E. Spicer and Steven M. Houck 11 . The foregoing paragraphs No. 1 through 10 are incorporated herein by reference. 12. The defendants owed a duty to the building owner, Carl Petersen, to use reasonable precautions to guard against the outbreak of fire. 13. The defendants breached that duty and were careless and/or negligent in the following, but not limited to, manner: by: a). failing to reasonably, competently, prudently and/or fully extinguish the first fire; b). failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; e). Removing the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; f). failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major -3- Fire which substantially destroyed the Premises. 14. The damages sustained by the Insureds arising out of the Fire total at least $102,738.04. The Facility paid its Insureds the Policy amount of $102,738.04 in partial indemnity for the actual cash value damages sustained by the Insureds due to the Fire. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the amount of $102,738.04 plus interest and costs. COUNT II BREACH OF CONTRACT Insurance Placement Facility of Pennsylvania as subrogee of Dr. Carl D. Pedersen v. James E. Spicer and Steven M. Houck 15. The foregoing paragraphs No. 1 through 14 are incorporated herein by reference. 16. The defendants breached their Leases (attached as Exhibit B and Exhibit C hereto) with the plaintiff's insured, Carl Petersen, by causing the Premises to burn, causing damage. 17. The following acts of negligence and carelessness constitute breaches of the Leases of (See 16 ("Repeated Damage"); 18 ("Due car/Appliances")): a). failing to reasonably, competently, prudently and/or fully extinguish the first fire; b). failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; e). Removing the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would -4- cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; fl. failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major Fire which substantially destroyed the Premises. 18. The defendants' above acts constitute breach(es) of the express and/or implied provisions of the lease between the defendants and Petersen which directly caused damages of at least $102,738.04 to the premises. 19. Despite demand, the defendants have failed to pay this sum and are legally liable for said payment. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the amount of $102,738.04 plus interest and costs. Mark J. Woliman, Esq. Attorney for Plaintiff -5- Verification I, Mark Wollman, authorized representative of the plaintiff here hereby state the statements made herein are true and correct to the best of my knowledge, information and belief. I am aware that this is made under the penalties of 18 PA C.S,A. section 4904 relating to unsworn falsification to authorities. Z-2-j-Mark WOlfman Date: April 21, 1999 BERS OF T•SM??a? :: • ._.. ;. ;•.a.??-Tit ..,..%,e P ACEMENT FACILITY OF PENNSYLVANIA ?- A LIST OF THE COMPANIES AND THEIR PERCENTAGE PARTICIPATION IS ON FILE AT THE INSURANCE DEPARTMENT IN HARRISBURG AND A COPY MAY BE OBTAINED AT THE FACILITY OFFICE. DECLARATIONS NAMED INSURED MAILING ADDRESS ... I ... . .SC.1 ik,4l... 'il .,.. .. .. .. J POLICY NO. PFP' J• . RENEWAL TERM ?'?% !'L.. .. .. RENEWAL OATS IMO. Dry Yi.I EXPIRATION (Me on Yr.l I YEAR NOON STANDARD TIME NOON STANDARD TIME jl,:?.r i, "..,....%"a 1% ?• 1-- We will provide insurance described in INS policy in return for the premium and compliance with all applicable provisions of this polity. If We otter to renew ft pok7. use premium must be paid in advance of the above expiration date or else this policy will expire. Upon receipt of the renewal premium and a property completed renewal appliat" we will issue a renewal endorsement or new policy. This insurance applies tome described location. Coverage for which a limit at liability is shown and peals insured against for which a premium is stated. AMOUNT OF PREMIUM DUE COVERED CAUSES OF INSURANCE AATIFSI AT INCEPTION LOSS S = o- C) : O JCS s 161 S - Q ]. '. 11: ? FIRE. LIGHTNING. AND EXPLOSION WIND. HAIL. SMOXE. AIRCRAFT OR S L a 5 , , - ? VEHICLES. RIOT OR CN(L COMMOTION. SI NHOLE COLLAPSE. VOLCANIC ACTION. TOTAL(S) $ LIMIT OF PERCENT OF DESCRIPTION OF PROPERTY COVERED (LOCATION IS DESCRIED IF DIFFERENT FROM MALING ADDRESS) APPLIES ONLY COV INSURANCE C ooSeRnN9E FOR WHICH A LIMIT OF INSURANCE IS SHOWN. SHOW OCCUPANCY OF BUILDING COVERED OR CONTAINING THE PROPERTY COVERED. .-'S.? ;. ... i.li7i, t!ilii.., ii......._... tiiC:CJi''c_D i.f.. ..2r+: .. d•, ... DEDUCTIBLES IN CASE OF LOSS UNDER THIS POLICY. WE COVER ONLY THAT PART OF THE LOSS OVER-THE DEDUCTIBLE STATED. FORMS APPLICABLE: _ •? r• : ;. / - i+ ]: / .... .1 2 -. • _ 1 .' is '. r PRODUCER EXHIBIT J _ DATE AUTHORISED RE RESIDENTIAL LEASE AGREEMENT THIS LEASE, made this 1st day of December, 1996 BETWEEN Owner, 5 Dr art P dPrPn C the one or more, referred to "Resident"), jointly and severally: (hereinafter whether WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartment/house designated as _t l Britton Road Shippensburg PA 17257 hereater called the "premises", for the term of 1 year beginning on the 1 day of June, 1997, and ending on the 31st day of May, 1998 , at the rent of 41, ?-r?o bu ,1,f,(".,i E ollars($ ) annually and monthly in installments of: ta.,?s. y .411ws Prior to the first day of the month for which it is due at a discounted rate of $ 19 °I . C) Q Between the first and the fifth day of the month due at the face value of $ d 0 3 . Q After the fifth day of the month for which it is due at the penalty rate of S a) S. c16 This letting is upon the following terms and conditions 1. SECURITY DEPOSIT: Resident agrees to pay Owner a security deposit of 00 u, ? 4; nsJ ?h,M• 1. Dollars (S ) upon signing of this agreement with receipt herein acknowl dged paid by . Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the payment of all rent and other amounts due from Resident to Owner or Agent, for the Resident's } irformance of this lease and against any damages caused to the premises or any other part of Owner's or Agent's property by Resident, his family and guests. Resident ITft PI'CfOnftc ?n•r n•wne•• ?L_? •L_ __ _. • .. amount due from Resident to Owner or Ascent without Owner's or Agents 3ydttenfconsent, "nd that the monthly rent will be paid each month including the last month of the lease term without abatement for early vacancy by Resident Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner or Agent's office within 24 hours of such v If keys are not returned with the specified time period, Owner or Agent will have the righ EXHIBIT change the locks on the premises and charge such lock change to resident. 2. FAILURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 0th day of each month, in advance, at the Rental Office of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. If the rental payment is not received by the Slit of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: 1. Residents check is returned by the bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of $25.00 in addition to other charges set forth. II. Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The returned check charge and late fees are immediately due and payable as additional rent under the terms of the lease and are considered liquidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TERMINATION: Qwner or Agent may terminate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4.SUBLETTING/,VSE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or make additions to the premises, its painting, its fixtures, and char e locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRAINAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. 7. UTILITIES: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by Resident Heating of water for premises to be paid by Resident Electricity for premises to be paid by a ident Gas for premises(IF APPLICABLE) to be paid by Sewer charge to be paid by esid nt Resident Water consumption to be paid by eside t Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to be paid by Resident Snow removal to be paid by(sidewalk) Resident Lawn maintenace to be paid by caner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Owner or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. 8. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to pay for all repairs to the apartment its contents and to all other parts of r)wna,J. n. Anuw?4t'.........r.. members Of Resident's family or his visitors Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the Owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR: serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. 10. RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 2. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither party shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAMAGE BY FARE OR OTHER CASUALTY: If the premises is damaged by fire or other casualty, Owner or Agent shall repair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease'if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PREMISES DESCRAiED/PROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby leased, except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15. FAILURE TO PAY RENT/DEFAULT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner, (b) terminate this lease; (c) bring an action or recover possession of the premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable attorney's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporarily(with or without our consent), Resident may be charged for de-fleaing, deodorizing, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements may be made with the Owner in writing prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. 18. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the pre*es at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCUPANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE COMPLIANCE OF MEMBERS OF HIS FAMILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRINTED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the Gen of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so is the name of Resident. 21. MUNICIPAL INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper idenification from the inspector; and (3) to be present during the inspection. You also ave the tight to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door to permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the next monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpal inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search warrant or similar lawful process which is issued by a judge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13 THIS AGREEMENT IS A LEGALLY BINDING CONTRACT: IF YOU DO NOT UNDERSTAND THIS AGREEMENT. PLEASE CONSULT AN ATTORNEY-AT-LAW!! 22. RESIDENT/JOINT AND SEVERAL LEASE AGREEMENT:The term "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall bgjoint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or'Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The term "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parties hereto as if they were in every. case named and expressed. 23. GENERAL: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owner's reresentatives unless done in writing. 5.+www igirr??..??AUw???Fw??Mir M«??\riw wwr?r?? f ' (SEAL) Resident Parent or Guardian (SEAL) Parent or Guardian (SEAL) iii?•rrt?e?i•iriirii«??«i+iir?r«r•w«ri?ri?rrw?Frirrri««?r•rrri•4?«• Resident (SEAL) Parent or Guardian (SEAL) --?-Parent or Guardian (SEAL) iFxMiirtrti???iMtrirMrirr«iiiir«ri«t«Mii«ritiFiMi«?MiRriM r?«r««iiFrr?r?r Resident (SEAL) (SEAL) Parent or Guardian (SEAL) irwr?rrrtriirrwrrrr??r?«? arent r«rxxrrr««rrxrr«rrrF«r«rrr Resident (SEAL) Parent or Guardian (SEAL) (SEAL) Parent or Guardian Intending to be.legally bound, and in consideration of the lease with the above Resident, the undersigned, jointly and severally, hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the tern of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. SIGNATURE OF OWNER OR AGENT: r e tN s RESIDENTIAL LEASE AGREEMENT THIS LEASE, made this 1st day of December, 1996 BETWEEN Dr I p dor?P Owner, ca,,,a,. pA Li--I. D Owner, one or more, referred to a Resident"), jointly and severally: (hereinafter whether WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartment/house designated as 11 Britton Road hippensbura PA 17257 hereater called the "premises", for the term of .1 year beginning on the lit day of June, 1997, and ending on the 31st day of May, 1998 , at the rent ofT. • t A , 6, t, i r ._ .rpollars($ 1 1 annually and monthly in installments of: Prior to the first day of the month for which it is due at a discounted rate of Between the first and the fifth day of the month due $ Iq4 at the face value of After the fifth day of the month for which it is due $ 103. ?? at the penalty rate of $ 213.{0 This letting is upon the following terms and conditions: 1. SECURITY DEPOSIT: Resident agrees to pay Owner a security deposit of ^rAe- Doliars ($ I9?{ )upon signing of this agreement with receipt herein acknowle ged paid by{7`v Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the ayment of all rent and other amounts due f r om Resident to Owner or Agent, for the Resident's (performan ce of this lease and against any damages caused to the premises or any other part of Owner's or Agent's property by Resident, his family an d guests. sid nt understands and aoranc that A. --- ---- .••_•- -... ..... ,...uvuu, o, ine le a term yntno abatement for early vacancy by Resident. Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner or Agent's office within 24 hours of such v If keys are not returned with the specified time period, Owner or Agent will have the ri gh EXHIBI change the locks on the premises and charge such lock change to resident. e C- 2. FAELURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 30th day of each month, in advance, at the Rental Office of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. If the rental payment is not received by the 15th of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: 1. Residents check is returned by the. bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of $25.00 in addition to other charges set forth. U. Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The returned check charge and late fees are immediately due and payable as additional rent under the terms of the lease and are considered liquidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TERMINATION: Qwner or Agent may terminate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4.SUBLETTING/,IVSE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or make additions to the premises, its painting, its fixtures, and change locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRAINAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. 7. UTILTIIES: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by sident Heating of water for premises to be paid by Resident Electricity for premises to be paid by Resident Gas for premises(IF APPLICABLE) to be paid by Sewer charge to be paid by Resident Resident Water consumption to be paid by Resident Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to be paid by Resident Snow removal to be paid by(sidewalk) Resident Lawn maintenace to be paid by Owner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Owner or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. 8. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to pay for all repairs to the apartment its content and to II other goal of Owner's or Agent's property which are necessitated by any act or lack of care on the part of Resident lumbers of Resident' fa?ti y. or his visitors Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR: serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. 10, RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 2. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither party shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAMAGE BY FIRE OR OTHER CASUALTY: If the premises is damaged by fire or other casualty, Owner or Agent shall repair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease'if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PREMISES DESCRIBEDIPROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby leased, except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15. FAILURE TO PAY RENT/DEFAULT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner; (b) terminate this lease; (c) bring an action or recover possession of the premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable attorney's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporatily(with or without our consent), Resident may be charged for de-fleaing, deodorising, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements may be made with the Owner in writing prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. 18. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the premises at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCUPANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE COMPLIANCE OF MEMBERS OF HIS FAMILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRINTED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so in the name of Resident. 21. MUNICIPAL INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper idetdfication from the inspector; and (3) to be present during the inspection. You also ave the right to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door to permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the next monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpal inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search wan-ant or similar lawful process which is issued by a judge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13 THIS AGREEMENT IS A LEGALLY BINDING CONTRACT: IF YOU DO NOT UNDERSTAND THIS AGREEMENT, PLEASE CONSULT AN ATTORNEY-AT-LAW!! 22. RESIDENTMOINT AND SEVERAL LEASE AGREEMENT:The tern "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall be joint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or'Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The tern "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parties hereto as if they were in every. case named and expressed. 23. GENERAL: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owner's reresentatives unless done in writing. t?R?t?Yt?Y4R??t??rt????t?t44t/? Vwt?RYRMY¦tRt??it4t6t?f? Resident (SEAL) (SEAL) Parent or Guardian (SEAL) Pazent or Guardian ??rwt?trt??4t?MR/?Y/t???t??Rr#Y4/?M4RtYMrt/#?Rrt#?iY?trt?YR/r??wt?t/Yt (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian ' twst?ww4YR4YSwrttRRYR/trt4RrRR¦rr?wrrt/R?Rr#rt?/#?rRR#wssRRwrttYwrrR?? (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian ??/rt4tw4Y4Rrt?t?44trtYRrtR44r#R##rt?¦RRr4?+kiRrt?#+F4R1?+F rtt/rMRMii4RiMRt/R (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian RrtrRt?M4w4RSR4rti/•Y4RtY4#YrRR##Yr#+YV?RF4i?/?tYit## tiirtssRRRiww?FStis Intending to be.legally bound, and in consideration of the lease with the above Resident, the undersigned, jointly and severally, hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the term of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. SIGNATURE OF OWNER OR AGENT: j neror#'t? ess - -? n Exhibit B COURT OF COMMON PLEAS OF CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 and Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 No. `i y- Civil Action u NOTICE TO DEFEND NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pa 717-249-3166 COURT OF COMMON PLEAS CUMBERLAND COUNTY INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl Pedersen 530 Walnut Street-Philadelphia, PA 19106 No V. Steven M. Houck 523 W. Lisburn Road Mechanicsburg, PA 17055-5830 -and- Jack Joseph Spicer c/o Cumberland County Prison 1101 Claremont Road Carlisle, PA 17013 Civil Action COMPLAINT Plaintiff, INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA as Subrogee of Carl D. Pedersen (the "Insured") by and through its undersigned counsel avers as follows: 1. Plaintiff is an unincorporated non-profit association created by statute, 40 P,S. law OlACef of Mark J. Wollman Airy I.D. No. 57127 sutra 700.34 The Pavilion 261 Old York Road Jenkintown, PA 19046 (215)887.3505 1600.101-1600.502, Act of July 31, 1968, P.L. 738, to issue basic fire insurance policies In the Commonwealth of Pennsylvania, and maintains a principal place of business at 630 Walnut Street, Suite 1650 Philadelphia, Pennsylvania and is entitled by law and equity to bring this action by virtue of an insurance payment made to Carl D. Pedersen (the "Insured") as described in more detail below. 2. Plaintiff insured the Tau Kappa Epsilon fraternity house ("TKE House") located at 11 Britton Road, Shippensburg, Pennsylvania (the "Premises") under Policy of Insurance No 612180-97-0 effective from 02/12/97 to 02/12/98 (the "Policy"). A true and correct copy of the declaration page of said Policy is attached as Exhibit A. 3. The defendant Jack Joseph Spicer ("Spicer") is an adult individual presently incarcerated with an address of c/o Cumberland County Prison, 1 101 Claremont Road, Carlisle, PA 17013. 4. Defendant Steven M. Houck is an adult individual with an address of 116 North Fayette Street, Shippensburg, PA 17257 and/or 523 West Lisburn Road, Mechanicsburg, PA 17055 5. A major fire occurred on or about July 23, 1997 at the Tau Kappa Epsilon fraternity house, which consumed and destroyed most of the house and contents therein (the "Fire" or "Major Fire") 6. At the time of the fire, the defendants were present in and residing at the TKE House. 7. The Major Fire complained of herein was caused by the re-kindling of a small, earlier fire a few hours prior. 8. The small, earlier fire occurred when defendant Spicer, turned on an air conditioner and went to sleep. He was awakened by a small fire burning at the end of his mattress which he attempted to extinguish. The authorities were not called. He was assisted in the extinguishment by Steven M. Houck who was previously sleeping in another room. The two defendants left the burning and/or burnt bedding in the room and then removed batteries from smoke alarm(s) in the Premises before the two moved to Houck's room to return to sleep. 9. Thereafter, fire re-kindled in the mattress which set surrounding consumables on fire, igniting the Major Fire to the premises. The Major Fire engulfed the entire premises; whereupon defendants finally awoke and escaped to safety through a window. A dog also escaped the Fire with the defendants. 10. Pursuant to the Policy of Insurance, the Facility paid its Insured $102,238.04 in partial indemnity for the reasonable actual cash value damages arising out of the Fire. By -2- virtue of its payment, the Facility became subrogated to the rights of its Insured and is entitled by law and equity to proceed herein. COUNTI NEGLIGENCE Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen v. Jack Joseph Spicer and Steven M. Houck 11. The foregoing paragraphs No. 1 through 10 are incorporated herein by reference. 12. The defendants owed a duty to the building owner, Carl Petersen, to use reasonable precautions to guard against the outbreak of fire. 13. The defendants breached that duty and were careless and/or negligent in the ? om.a Mark J. wollman Atty I.D. No. 57127 Suite 700-34 The Pavilion 261 Old York Road Jenkintown, PA 19046 (215) 887-3505 following, but not limited to, manner: by: a). failing to reasonably, competently, prudently and/or fully extinguish the first fire; b?. failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; a). Removing the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; f). failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably -3- cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major Fire which substantially destroyed the Premises. 14. The damages sustained by the Insureds arising out of the Fire total at least $102,738.04. The Facility paid its Insureds the Policy amount of $102,738.04 in partial indemnity for the actual cash value damages sustained by the Insureds due to the Fire. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the amount of $102,738.04 plus interest and costs. COUNT II BREACH OF CONTRACT Insurance Placement Facility of Pennsylvania as subrogee of Dr. Carl D. Pedersen v. James E. Spicer and Steven M. Houck 15. The foregoing paragraphs No. 1 through 14 are incorporated herein by reference. 16. The defendants breached their Leases (attached as Exhibit B and Exhibit C hereto) with the plaintiff's insured, Carl Petersen, by causing the Premises to burn, causing damage. 17. The following acts of negligence and carelessness constitute breaches of the Leases of (See 16 ("Repeated Damage"); 18 ("Due car/Appliances")): a)• failing to reasonably, competently, prudently and/or fully extinguish the first fire; b). failing to report the first fire to the fire department; c). failing to inspect the mattress for internal burning or heat build-up or deep- seated fire within the mattress after the first, small fire; d). failing to properly remove the subject mattress from the house after the first fire so as to prevent the foreseeable outbreak of a second catastrophic fire in the foreseeable event of re-kindling; -4- e). Removing the batteries for and/or otherwise disabling the smoke/heat detectors and/or certain smoke/heat detector(s) in the Premises which would cause a re-kindled fire to burn unnoticed with foreseeable catastrophic consequences before it could be discovered by the defendants who were sleeping in a remote location with doors shut; f). failing to take other reasonable precautions after the discovery of the first, small fire which the defendants knew or should have known would foreseeably cause the rekindling of fire and ensuing Major Fire; all of which foreseeably, proximately and directly caused the ignition and spread of the Major Fire which substantially destroyed the Premises. 18. The defendants' above acts constitute breach(es) of the express and/or implied provisions of the lease between the defendants and Petersen which directly caused damages of at least $102,738.04 to the premises. 19. Despite demand, the defendants have failed to pay this sum and are legally liable for said payment. WHEREFORE, the Insurance Placement Facility of Pennsylvania as subrogee of Carl D. Pedersen request judgment jointly and severally against the Defendants in the. amount of $102,738.04 plus interest and costs. Mark J Wollmah, Esq. Attorn y for Plaintiff u.omusof Mark J. Wollman AlN I.D. No. 57127 Suite 700-34 The Pavilion 261 Old York Road Jenkintown. PA 19046 (215) 887-3505 -5- Verification I, Mark Wollman, authorized representative of the plaintiff here hereby state the statements made herein are true and correct to the best of my knowledge, information and belief. I am aware that this is made under the penalties of 18 PA C.S.A. section 4904 relating to unsworn falsification to authorities. ark W an Date: July 21, 1999 ..o-NlEt, BERS OF .... . • ._. . •: ?? ?;•'? g a? _.,..r.t,t PLACEMENT FACILITY OF PENNSYLVANIA A LIST OF THE COMPANIES AND THEIR PERCENTAGE PARTICIPATION IS ON FILE AT THE INSURANCE DEPARTMENT IN HARRISBURG ANO A CCPY MAY BE OBTAINED AT THE FACILITY OFFICE. NAMED INSURED MAILING ADDRESS OECLARATIONS POL'CY NO. PFP' RENEWAL '•. e . ::': ` TERM L;': .. .. RENFwAL ONE IMP. Jar TeI FXRMndN IAb, On V, 1 YEAR NCON STANDARD :1u2 NOON STANDARD TIME We will provide insurance described in this Policy in return for the premium and c=.C; lance with all applicable provisions at this polity. II we alter to renew, this policy, the premium must be paid in advance of the above expiration date at else Ihis palicy wit expire. Upon receipt of the renewal premium and a prapeny campleted renewal application, we will issue a renewal endorsement at new policy. This insurance applies to the cosc.nbed ICCahdn, coverage for which a limit of liability is shown and perilsinsured against fat which a;Temium is slated. AMOUNT I Pa.EMIUM cue OF I COVERED CAUSES OF INSURANCE RATF(51 AT NcrPT.'CN LO55 $ ...: CC!L $ ; EF t 5 .. .. 'J L: a FIRE. UGHTNWG. AND EKPLCSION WINO. NAIL. SACKS, AIRCRAFT OR $ : Li y $ - •• - S NKNOLE COLLAPSE. VOLCUIIACTION. PERCENT Of V L:Mm CF CO-INSURANCEI CESCRIPTION CF PROPERTY CC':eRcC OCAACN Is OEYRIOED iF DIFFERENT FROM AWL:NG AOORE59 APPLIES ONLY wSURANCE APPtICABL: FOR WHICH A LIMIT OF MSUIUNC5:5 S C.VN. -MC'W CCCUPANCY CF eUIL01NG COVEREa CRC:NTAWNG THE PROPERTY COVERED. i?r DEOUCTtBLE S ]'.:.i. .. IN CASE OF LOSS UNDER THIS PCLICY. WE COVER ONLY THAT PART OF THE LOSS OVERT HE DEDUCTIBLE STATED. FORMSAPPL:CABLE: '+' :a.' .. _ .... - _ .. ... r PRODUCER 7.- 1 EXHIBIT r"!'! DATE AU THORtZEO fl RESIDENTIAL LEASE AGREEMENT 11-US LEASE, made this 1st day of December, 1996 BETWEEN fir. Carl Pedersen the Owner, I& MIN - S e (hereinafter whether one or more, referred to "Resident"), jointly and severally: WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartment/house designated as _11 Britton Road. ShiPpensburg PA 17057 hereater called the "premises", for the tern of 1 year beginning on the 1 st day of June, 1997, and ending on the 31st day of May , 1998 , at the rent of 4g? "J 4 r e o t+"?, I r (a d DollarsLS 1 annually and monthly in installments of: t,4C,1,i ..5w, dadwi Prior to the first day of the month for which it is due at a discounted rate of g 19 ?I ?, Between the first and the fifth day of the month due at the face value of 5 d e 3• 0 After the fifth day of the month for which it is due at the penaity rate of S 3 )3. 4 o This letting is upon the following terms and conditions: 1. SECURITY DEPOSIT: Resident agrees to pay Owner a security deposit of Lj A l 141.,NA J ,i n -: ?? ,rnyr• ip Dollars (5 ) upon signing of this agreement with receipt herein acknowledged paid by . Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the payment of all rent and other amounts due From Resident to Owner or Agent, for the Resident's 1S'erformance of this lease and against any damages caused to the premises or any other part of Owner's or Agent's property by Resident, his family and guests. Resident understands and agrees that the security deposit may not be applied as rent or against anv other amount due from Resident to Owner or Agent without Owner's or Agent's written consent and that the monthly rent will be paid each month, including the last month of the lease tern without abatement for early vacancy by Resident. Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner or Agent's office within 24 hours of such v FJCHIBIT If keys are not returned with the specified time period, Owner or Agent will have the 6 change the locks on the premises and charge such lock change to resident. 2. FAILURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 30th day of each month, in advance, at the Rental Offence of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. IF the rental payment is not received by the 15th of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: 1. Residents check is returned by the bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of S25.00 in addition to other charges set forth. II. Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The returned check charge and late fees are immediately due and payable as additional rent under the terms of the lease and are considered liquidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TERMINATION: Qwner or Agent may terminate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4. SUB LETTING/USE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or make additions to the premises, its painting, its fixtures, and chance locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRAINAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. r,? 7. UTILIMES: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by Resident Heating of water for premises to be paid by Resident Electricity for premises to be paid by Resident Gas for premises(IF APPLICABLE) to be paid by Resident Sewer charge to be paid by Resident Water consumption to be paid by Resident Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to, be paid by Resident Snow removal to be paid bv(sidewalk) Resident Lawn maintenace to be paid by Owner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Ow-ter or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. , S. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Ownees or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to oav for all repairs to the apartment its contents and to all other parts of members of Resident's family, or his visitors. Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the Owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. 10. RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither parry shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAB` EAGE BY FIRE OR OTHER CASUALTY: If the premises is damaged by fire or other casualty, Owner or Agent shall repair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease.if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PREMISES DESCRIBED/PROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby leased, ? e. e except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15. F.AMURE TO PAY RENT/DEFATJLT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner; (b) terminate this lease; (c) bring an action or recover possession ofthe premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable attorney's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporarily(with or without our consent), Resident may be charged for de-fleaing, deodorizing, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements may be made with the Owner in writipg prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. 18. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the premises at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCUPANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE COMPLLANCE OF MEMBERS OF HIS FAMILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRINTED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security T thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so in the name of Resident. 21. MUNICIPAL INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper idenification from the inspector; and (3) to be present during the inspection. You also ave the right to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door ro permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the next monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpal inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search warrant or similar lawful process which is issued by ajudge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13 THIS AGREEMENT IS A LEGALLY BLYDLNG CONTRACT: IF YOU DO NOT UNDERSTAND THIS AGREENIENT. PLEASE CONSULT AN ATTORNEY-AT-LAW:: 22. RESMENTMOIiNT AND SEVERAL LEASE AGREENIENT:The term "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall be joint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or'Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The term "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parties hereto as if they were in every case named and expressed. 23. GENERa.L: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owner's reresentatives unless done in writing. Irsr#rr#ral YarwliYtriwr/grll•i!?w•#?qfl? f ui AA&I . - L (SEAL) Resid nt I (SEAL) Parent or Guardian (SEAL) Parent or Guardian /!f!!rs/ttitr/i?1•iPfYilrrifrNiifiY!/ir• #i#rTiifi?i!w#/irYlMttf#? (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian !lrisrYw#/r!liYrir#slirrrr?rriwr#wYri#f•#•rTTT/lasrrf/riw/#!!i#/?? (SEAL) Resident (SEAL) Parent or Guardian S ( EAL) Parent or Guardian ?!ii/s#ii/rYrir/ir/fiwliir?ir#aMF#rTrw#!•YlrTTT/#####r##Mw#YrYi#ri SE L ( A ) Resident SE ( AL) Parent or Guardian SEAL ( ) Parent or Guardian ifl•irwrriii##rriilwrr#r#rw#wY#i#?#w#is?ii?TrTT#wf#ri#rswlF/#safr? Intending to be, legally bound, and in consideration of the lease with the above Resident, the nundersigned, jointly a nil hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the term of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. SIGNATURE OF OWNER OR AGENT: r ge Wltn ss ej.E.S RESIDENTIAL LEASE AGREEMENT THIS LEASE, made this 1st day of December, 1996 BETWEEN Dr Ga*I Pedersen the Owner, ICA,ez M 4.6k (hereinafter whether one or more, referred to a "Resident"), jointly and severally: WITNESSETH: That Owner hereby leases to Resident and the letter lets from the former, the apartment/house designated as 11 Britton Road. Shippensburg PA 17257 hereater called the "premises", for the term of 1 year beginning on the I st day of June, 1997 and ending on the 3 I st day of May . 1998 at the rent of ,., wt o u,iDollars(S 2 t zs ) annually and monthly in installments of: Prior to the first day of the month for which it is due at a discounted rate of g 194 Between the first and the fifth day of the month due at the face value of S 203.70 After the fifth day of the month for which it is due at the penalty rate of S 2 t 3 'f0 This letting is upon the following terms and conditions: 1. SECUIUTY DEPOSIT: Resident agrees to pay Owner a security deposit of &Mdr d nice - w- Dollars (3 I q4 ) upon signing of this agreement with receipt herein acknowledged paid by}?,v Resident agrees to pay the security deposit set forth above prior to occupancy of the premises. The security deposit shall be held by Owner or Agent as security for the payment of all rent and other amounts due from Resident to Owner or Agent, for the Resident's ?;rformance of this lease and against any damages caused to the premises or any other part of Owner's or Agent's property by Resident, his family and guests. Reside nt understands and agrees that the security deposit may not be applied as rent or a3ainst any other amount due from Resident to Owner or Agent without Owner's or Agent's written consent and that the monthly rent will be paid each month. including the last month of the lease term without abatement for early vacancy by Resident Within thirty(30) days following termination of this lease and the physical vacating of the premises by the resident, the Owner or Agent shall return the security deposit, less any deductions from it on account of amounts owed by Resident to Owner or Agent, to Resident by check payable to all persons signing this lease mailed to a forwarding address which must be furnished by Resident in Writing. Upon terminating of lease and vacating of the premises within the terms and conditions set forth in the lease, Resident shall return all keys and all copies of keys to Owner or Agent's office within 24 hours of such v If keys are not returned with the specified time period, Owner or Agent will have the righ EXHIBIT change the locks on the premises and charge such lock change to resident. I C-- 6.4. 2. FAILURE TO PAY:Resident agrees to pay to Owner or Agent the monthly rate set forth above on the 30th day of each month, in advance, at the Rental Office of Owner or Agent or such other place as Owner or Agent may from time to time request and further agrees to pay the first and last months rent at the time of occupancy. If the rental payment is not received by the 15th of each month (as set forth above), Owner or Agent will reserve the right to proceed with the necessary legal authorities to collect same. 2a. CHARGES FOR RETURNED CHECKS: I. Residents check is returned by the bank for any reason (including, but no limited to, insufficient funds, errors on the check, and a stop-payment order), resident must pay a service charge of 525.00 in addition to other charges set forth. II. Resident shall replace the returned check with a money order, certified check, or cashier's check, payable to the Owner. Owner is not required to redeposit a returned check. III. The renamed check charge and late fees are immediately due, and payable as additional rent under the terms of the lease and are considered liquidated damages for Owner's bookkeeping and clerical expenses. IV. If Resident's rent check is returned, Owner reserves the right to require Resident to pay future rent by money order, certified check or cashier's check. V. Owner reserves the right to collect all additional penalities provided by law for checks not honored by the bank. 3. TERMLYATION: Qwner or Agent may ter-ninate this lease without cause by giving thirty (30) days prior written notice to Resident, but no termination by Owner or Agent without cause may take effect during the one (1) year term of the lease. 4. SUB LETTLNG/USE:Resident agrees to use the premises only as the personal residence of Resident and their children, and not to assign this lease or sublet the apartment. Resident agrees not to alter or makb additions to the premises, its painting its fixtures, and change locks without Owner's or Agent's written consent. Resident agrees not to do or to permit any act or practice injurious to the building, which may affect the insurance on the building, or which is contrary to any law. 5. DRALNAGE: Resident shall not allow any hair, thread, strings, rags, sanitary napkins, or rubbish of any kind to enter the drainage or waste pipes of the premises. Any damage caused by the entry of one or more of such items into the drainage or waste pipes of the premises shall be the Resident's responsibility. 6. REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement. i,t 7. UTILITIES: Resident understands that the equipment for utilities to serve the premises is installed therein and Resident agrees that the cost of the utilities shall be paid as follows: Heating for premises to be paid by Resident Heating of water for premises to be paid by Resident Electricity for premises to be paid by Resident Gas for premises(IF APPLICABLE) to be paid by Sewer charge to be paid by Resident Water consumption to be paid by Resident Resident Trash removal to be paid by Resident Cable Television to be paid by Resident Telephone to be paid by Resident Snow removal to be paid by(sidewalk) Resident Lawn maintenace to be paid by Owner Resident agrees to pay the bills for said utilities when due. Owner shall have no obligation to provide utilities that are the responsibility of the Resident. In the premises where the Resident provides the heat, the premises must be kept sufficiently heated at all times during the lease to avoid damage to the premises. In the premises where the Resident provides the heat, the Resident may not have the heat terminated for any reason during the lease. Resident agrees that Owner or Agent shall have the right temporarily to stop the service of electricity, or water, or gas in the event of accident affecting the same or to facilitate repairs or alterations made in the premises or elsewhere in Owner's or Agent's property. Owner or Agent shall have no liability for failure to supply heat, air conditioning, hot water or other services or utilities when such failure shall be beyond Owner's or Agent's control or to enable Owner or Agent to service or repair installations. 8. DUE CARE/ APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's property, to give notice to Owner or Agent of the need for repair thereof, and to pav for all repairs to the apartment its contents and to all other s of Owner's or Agent's" property which are necessitated by any act or lack of care on the part of Resident members ofResident's fa*ily or his vi hors Owner or Agent will make necessary repairs to the premises and the appliances therein within a reasonable time after Resident notifies Owner or Agent of the need for repairs. The following appliances are the property of the Owner and shall not be tampered with or removed from the premises. Any cost of repair or replacement for violation of the conditions of this lease clause shall be the responsibility of the Resident. RANGE: serial number REFRIGERATOR serial number OTHER APPLIANCES: 9. LIABILITY FOR INJURY:Resident agrees that Owner or Agent shall not be liable for property damage or personal injury occurring in the premises or elsewhere on Owner's or Agent's property unless the damage or injury results directly from Owner's or Agent's negligence. 10. RENTERS INSURANCE: All residents are required to carry "renters insurance" for the premises with an amount equal or greater to the value of all personal belongings of the resident. Name Insurer amount 1. 3. 4. 5. 6. 7. 8. 11. OCCUPANCY: If, due to circumstances beyond the Owner's or Agent's control, the premises shall not be ready for occupancy at the beginning of the term, this lease shall nevertheless remain in effect and the rent shall be abated proportionately until the premises are so ready, and Owner or Agent shall not be liable for delay; provided, that if the premises shall not be for occupancy sixty (60) days after said beginning, Resident shall have the right to cancel this lease by written notice delivered to Owner or Agent at any time after the expiration of said sixty (60) days, but not after the premises are ready for occupancy. Resident's remedy shall be limited to such right of cancellation, neither party shall have any further right against the other, save the Owner or Agent shall repay any deposits made by Resident. If Resident shall occupy the premises prior to the beginning of the term, such occupancy shall be subject to the terms of this lease, and Resident shall pay prior to occupying the premises rent for the same period from the date of such occupancy to the beginning of said term. 12. DAiYLAGE BY FIRE OR OTHER CASUALTY: If the premises is damaged by fire or other pasualty, Owner or Agent shall repair it within a reasonable time and rent shall continue unless the casualty renders the premises untenantable, in which case this lease shall terminate and Resident, upon payment of all rent to the date the premises is surrendered, shall not be liable for any further rent. If only a portion of the premises is rendered untenantable, the Resident may, with mutual agreement of Owner or Agent, alternatively choose to continue in possession and shall thereupon be entitled to a pro-rata reduction in the amount of rent, provided that election to proceed under this alternative shall not be a waiver of the Resident's right to terminate the lease if repairs are not made within a reasonable time. 13. RIGHT OF ENTRY: Owner or Agent, or any person authorized by him, shall have the right to enter the premises at reasonable times to inspect, make repairs or alterations as needed, to enforce this lease, and to show the premises to prospective residents. Reasonable times shall be defined as any time when the Owner or Agent has given the Resident at least a 24 hour notice by telephone or in writing, however, such notice shall not be required in the case of emergency or upon the Resident's request for maintenance work to be completed. 14. PREMISES DESCRIBED/PROPERTY USE:This lease confers no rights on Resident to use for any purpose any of the property of Owner or Agent other than the interior of the apartment hereby leased, c ut except the walks and roadways giving access thereto and such other areas, if any, as Owner or Agent may from time to time designate for the use of residents. When the use by Resident of any other portion of Owner's or Agent's property is permitted, it shall be subject to the rules and regulations established by Owner or Agent. 15. FAILURE TO PAY RENT/DEFAULT: If Resident shall fail to pay rent, or any other sum, to Owner or Agent when due; shall default in any other provisions of this lease; or shall remove or attempt to remove his possessions from the premises before paying to Owner or Agent all rent due to the end of the lease term, Owner or Agent, in addition to all other remedies by law, may: (a) discontinue utility service provided by owner; (b) terminate this lease; (c) bring an action or recover possession of the premises; (d) bring an action to recover the whole balance of the rent and other charges due herein under, of whatever kind and nature, together with any and all consequential damages caused by Resident's default, including reasonable artomey's fees and/or fees charged by Owner or Agent and any court costs and subsequent fees for the procurement of a State Constable and/or County Sheriff. 16. PETS: No Pets Allowed, Even Temporarily. No pets are allowed, even temporarily, anywhere in the apartment, or apartment community. Residents must advise guests of this policy so they can make other arrangements prior to their visit. If a pet has been in a Resident's apartment, even temporarily(with or without our consent), Resident may be charged for de-fleaing, deodorizing, and/or shampooing. 17. POSSESSION: Resident agrees that all security deposits as well as the right to take possession of the premises may be forfeited at the discretion of the owner if the resident does not take possession of the leased premises within seven (7) days of the beginning of the lease term. Prior arrangements may be made with the Owner in writing prior to the first day of the lease to schedule a later possession date, however, rent is still due from the beginning of the lease term. 18. WAIVER OF NOTICE TO QUIT: Resident hereby waives the usual notice to quit and agrees to surrender the premises at the expiration of said lease term, or the terminations of this lease for whatever reasons, forfeiture or otherwise without notice from the Owner or Agent whatsoever. If proceedings shall be commenced by the Owner or Agent to recover possession of the premises, either at the expiration of the term or earlier termination of the lease, or for non-payment or rent, or for any other reasons, Resident specifically waives the right to 30 days notice and to any other notice required under the Landlord and Tenant Act and agrees that not notice whatsoever shall be required. 19. OCCUPANCY REGULATIONS HEREIN AND ATTACHED: RESIDENT AGREES THAT HE WILL COMPLY AND PROCURE CONDLLANCE OF MENMERS OF HIS FAMILY, AND HIS GUESTS WITH THE OCCUPANCY REGULATIONS WHICH ARE PRI14TED HEREON AND WHICH ARE ATTACHED. 20. LIEN SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Owner's or Agent's property which includes the apartment, to extensions or renewals thereof, and to all advances now or hereafter made on the security 6.44. thereof. Resident agrees, upon request, to execute such further instruments evidencing such subordination as Owner or Agent may request, and if Resident fails to do so, Owner or Agent is empowered to do so in the name of Resident. 21. MUNICEPAI. INSPECTIONS AND INSPECTION FEES: If the local municipality requires annual or periodic inspections of your apartment in non-emergency situations, you have the right to: (1) prior notice, including notice of the purpose and the subject of the inspection; and (2) proper idenification from the inspector; and (3) to be present during the inspection. You also ave the right to deny the municipal inspector access into your private residence unless a search warrant or similar legal process is issued by a judge. Should you agree to permit the municipal inspection of your apartment, you will be required to: (1) make arrangements directly with the municipality. The landlord will not open your door to permit the municipal inspection. And, (2) reimburse the Landlord for the inspection fee with the next monthly rent payment. The charge for the inspection fee is to be considered additional minimum rent. You can avoid additional rent costs by choosing not to permit the municpai inspection. However, the Landlord will be responsible for the inspection fee(and will not charge you) should the municipality require the inspection under the authority of a search warrant or similar lawful process which is issued by a judge (not the municipality). To avoid the rent charge in the amount of the inspection fee, you must provide the Landlord with a copy of the search warrant or other legal process. This provision does not change the inspection rights of the Landlord under paragraph 13. THIS AGREEMENT IS A LEGALLY BINDING CONTRACT: EF YOU DO NOT UNDERSTAND THIS AGREEMENT. PLEASE CONSULT AN ATTOR-NEY-AT-LAW!! 22. RESIDENT/JOINT AND SEVERAL LEASE AGREEMENT:The tern "Resident" used herein shall refer collectively to all persons named above, and signing this lease as Resident, and the liability or each such person shall be joint and several. Also signing on this lease shall be the parents or legal guardians of resident who by signing hereafter shall be liable, jointly and severally, for the entire lease herein. Notice given by Owner or Agent to any person named as Resident or by any such person to Owner or Agent, shall bind all persons signing this lease as Resident. The term "Resident" shall also refer to any persons named as heirs, executors, administrators, successors, or the respective parries hereto as if they were in every. case named and expressed. 23. GENERAL: No oral promises, representations or agreements have been made by the owner or any owner's representative. This lease is the entire agreement between the parties. Owner's representatives ( including management personnel and other employees or agents ) do not have authority to make promises, representations or agreements which impose duties of security or other obligations on owners reresentatives unless done in writing. G 1J ??#w??4#r?Mr##?R#wi??#??4?w?t?r???w?rw?1•M#M#??iM??r?N?iwi?ti?1• (SEAL) Resident (SEAL) Parent or Guardian (SEAL) Parent or Guardian #r##wr#R??r#rr##w#???r••rrw?r???r??R?#iw###r## ###.?w?ri4•i#?ir??r# (SEAL) Resident (SEAL) Parent or Guardian SE ( AL) Parent or Guardian #r###rr#w?Rr#r#r#r##www•wr??r?4?iRw•ww##r+w#4i 4wr#wrRr#?R44?ir??i? SE AL) ( Resident SE L ( A ) Parent or Guardian SEAL ( ) Parent or Guardian M#r#Rw#Rr#i###r#Rr##rRMr#4r#R?4R4##i####wr•#4#R##4R#r#?ri44w#?4?R4 (SEAL ) Resident (SEAL ) Parent or Guardian (SEAL ) Parent or Guardian w##r###Rrrr##r########air##wir#4Rr•#####wiRRR4wwri##t?iiRi###wi##• SIGNATURE OF OWNER OR AGENT: Intending to be, legally bound, and in consideration of the lease with the above Resident the undersigned, jointly and severally, hereby become surety to Owner or Agent for the performance or the lease by Resident and guarantees payment of all sums becoming owing to Owner or Agent by Resident. This agreement shall remain in effect throughout the term of the lease or any renewal thereof. The liability of the undersigned is absolute, continuing and unconditional and Owner or Agent shall not be required to proceed against Resident or invoke any other remedy before proceeding against the undersigned. Owner or Agent expressly agrees to notify the guarantor in the event of breach or default. Own" tt MEL Witness S.fI. CERTIFICATE OF SERVICE I, Jessica Brady, an authorized representative of Margolis Edelstein, hereby certify that I have served a true and correct copy of the foregoing document upon all counsel and parties of record this 17th day of July, 2001, by placing the same in the United States First Class Mail, postage prepaid, at Camp Hill, Pennsylvania, addressed as follows: James P. Carfagno, Esquire Law Offices of John M. Clark, L.L.C. Two Penn Center - Suite 200 Philadelphia, PA 19102 Mr. James E. Spicer 116 North Fayette Street Shippensburg, PA 17257 By: J sica Brady n c N i ` u-l ) w_ '1 I . I - IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of Carl Pederson, No.: 99-4435 Typc of Case: Civil Action Defendant(s) Type of Pleading: TRIAL BRIEF JURY TRIAL DEMANDED Filed on Behalf of Plaintiff: INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA Counsel of Record for this Party: Patricia Haas Corll, Esquire Court I.D. No.: 59238 Defendants WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLC 800 North Third Street, Second Floor Harrisburg, PA 17102 (717) 237-6940 Counsel of Record for Adverse Party: Richard H. Wix, Esquire V. Plaintiff(s) STEVEN M. HOUCK and JACK JOSEPH SPICER, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, as Subrogee of No.: 99-4435 Carl Pederson, Plaintiff(s) V. STEVEN M. HOUCK and JACK JOSEPH SPICER, Defendant(s) PLAINTIFF'S. INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA. A/S/O CARL PEDERSON, TRIAL BRIEF 1. STATEMENT OF FACTS: This action arises from a fire that occured on July 23, 1997 at Tau Kappa Epsilon Fraternity house. The house was largely destroyed by this fire. On or about April 23, 1999, a Complaint was filed against Steven M. Houck and James E. Spicer at docket 99-2441. This Complaint alleged two Counts - one in negligence and one in breach of contract. On July 22, 1999 a second Complaint was filed in this matter at docket 99-4435. This Complaint was filed against Steven M. Houck and Jack Joseph Spicer, apparently the brother of the originally named James E. Spicer. This Complaint also alleged negligence and breach of contract. A motion to consolidate the two actions was filed on August 8, 2001, as the Complaints were virtually identical, with the exception of the substitution of Jack Joseph Spicer as a party for his brother James E. Spicer. This Motion was grated by the Honorable Edgar J. Bayley on August 9, 2001. Prior to the consolidation of these cases, a default judgment was obtained against Jack Joseph Spicer on or about September 3, 1999. Thus, the only issues to be decided are the negligence and breach of contract issues against Defendant Steven M. Houck and the damages flowing therefrom and the damages attributable to Defendant Jack Joseph Spicer. II. NEGLIGENCE AS TO DEFENDANT HOUCK To establish a viable cause of action in negligence, a pleader must aver in his complaint the following elements; 1) a duty or obligation recognized by the law requiring the actor to conform to a certain standard of conduct for the protection of others against unreasonable risks of failure on the person's part to conform to the standard required; and 2) a breach of the duty; and 3) a reasonably close causal connection between the conduct and the resulting injury and actual loss or damage resulting to the interest of another. See Ferry v. Fisher, 709 A.2d 399, 402 (Pa. Super. 1998). See also, JEJ v. Tri-County Big Brothers Big Sisters. Inc, 692 A.2d 582 (Pa. Super. 1997)( holding that the elements of negligence are duty owed, a breach of that duty, a causal connection between the breach and the resulting injury and actual damages or loss). 2 Thus, as we examine Defendant Houck's conduct, the threshold question in negligence is whether Mr. Houck owed a duty to Dr Pederson, and hence to the Plaintiff in this matter, Insurance Placement Facility. Section 323 of the Restatement (2d) of Torts has been cited and discussed in over 100 cases in the Commonwealth of Pennsylvania. See Filter v. McCabe, 1999 Pa. Super. 143, 733 A.2d 1274 (Pa. Super. 1999). More importantly, § 323 of the Restatement 2d of Torts has been adopted as an accurate statement of the law in this Commonwealth by the Pennsylvania Supreme Court. See Gradel v. Inoue, 491 Pa. 534, 421 A.2d 674 (1980); DeJesus v. Liberty Mutual Insurance Co., 423 Pa. 198, 223 A.2d 849 (1966). This section states as follows: "One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of the other's person or throes, is subject to liability to the other for physical harm resulting from his failure to exercise reasonable care to perform his undertakine, if (a) his failure to exercise such care increased the risk of harm, or (b) the harm is suffered because of the other's reliance upon the undertaking. §323 of the Restatement (2d) of Torts (emphasis added). Expanding upon the application of §323, the drafters indicated that [Tlhis Section applies to any undertaking to render services to another which the defendant should recognize as necessary for the protection of the other's person or throes. It applies whether the harm to another or his thin as results from the defendant's negligent conduct in the manner of his performance of the undertakine or from his failure to exercise reasonable care to complete it or protect the other while he discontinues it. Comment A: §323 Restatement 2d of Torts (emphasis added), ace also Feld v. Merriam, 506 Pa. 383, 485 A.2d 742 (Pa. 1984). Moreover, as the comments to Section 323 make it clear, once an individual undertakes to perform an action, even in the absence of a duty to do so, he must act non-negligently to protect the other's person OR THINGS. Indeed, the Superior Court has discussed the application of Section 323 in a property damage case which arose from the failure of a utility to warn property owners that it was going to release flood waters from a lake behind a hydro electric dam. In Engle v. West Penn Power, 409 Pa. Super. 462, 598 A. 2d 290 (1991), the issue was whether West Penn Power was negligent in improperly obstructing or releasing flood waters from the Lake Lynn Dam and/or in failing to adequately notify the individuals or entities who ultimately suffered property damage. 409 Pa. Super. at 468. The failure to wam theory was brought under Section 323 of the Restatement 2d of Torts. 409 Pa. Super. at 471. Here too, Section 323 applies to Defendant Houck, and imposes a duty upon him, which he breached. Moreover, under §323, once a Plaintiff has introduced evidence that a defendant is negligent, there is a relaxed standard for causation - whether the defendant's conduct increased the risk of harm to Plaintiff's property. It then becomes a question for the jury as to whether or not that increased risk was a substantial factor in producing the harm. Hamil v. Bashline, 481 Pa. 256, 269, 392 A.2d 1280, 1286 (1978). III. BREACH OF CONTRACT AS TO HOUCK Defendant Houck admitted in his deposition that he signed a lease agreement with Carl Pederson, the Plaintiffs insured in this matter. This contract was also made part of the pleadings in this case as it was appended to and referenced in both Complaints in this matter. Specifically, it is alleged that Defendant Houck breached paragraphs 6 and 8 of the Agreement. These items specifically state: REPEATED DAMAGE: Serious or repeated damage to the premises, any common areas or any property of the Owner or Agent, is a violation of this lease agreement DUE CARE/APPLIANCES: Resident agrees to use due care in the use of the premises, the appliances therein, and all other parts or Owner's or Agent's Property, to give notice to Owner or Agent of the need for repair thereof, and to pay for all repairs to the apartment its contents and to all other parts of Owners or Agent's property which are necessitated by any act or lack of care on the part of Resident, members of Resident's family, or his visitors Rental Contract (emphasis added and in original). While due care is predominantly discussed in the negligence context, it has been defined, nevertheless as, " the care which a reasonable prudent person would exercise under the conditions set forth by the facts of the case." Brown v. Tinnenv, 280 Pa. Super. 512, 421 A.2d 839(1980). Thus, Defendant Hoec. agreed to act as a reasonable prudent person in the use of the premises, appliances and property he leased from Dr. Pederson. If he did not, he is liable in breach of contract for all the repairs to the property necessitated by his conduct. IV. JOINT AND SEVERAL LIABILITY On June 19, 2002 Senate Bill No. 1089 was signed into law. This Act, now known as Act 57, in essence does away with the law of joint and several liability in the Commonwealth of Pennsylvania. However, it is not applied retroactively. Indeed, Act 57 which took effect on August 18, 2002 is only applicable to causes of action accrued after that date. Here the cause of action accrued in 1997, and the case was filed in 1999. Thus the provisions of Title 42 Section 7102 which allow for a plaintiff to recover the full amount of the . .. •• •.. .-. ... u.?vN"I:t[ "1'Y...<.I.WY`.LI,eY? allowed recovery from any defendant against whom the plaintiff is not barred are applicable herein, Respectfully submitted, WEBER GALLAGHER SIMPSON STAPLETON FIRES & NEWBY, LLP o.Patn Haas II, Esquire e C urt ID. No.: 59238 h ird Street, 2nd Floor r , PA 17102 Phone: 717.237.6940 Fax: 717-237-6949 Counsel for Plaintiff Dated: July, 2003 6 CERTIFICATE OF SERVICE I, Patricia Haas Corll, Esquire, hereby certify that I am this day serving a copy of the foregoing Plaintiffs Trial Brief via hand delivery upon the below persons(s) which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure. July, 2003 Richard Wix, Esquire Wix Wenger & Weidner 4705 Duke Street Harrisburg, PA 17100 #22 INSURANCE PLACEMENT IN THE COURT OF COMMON PLEAS OF FACILITY OF PENNSYLVANIA, CUMBERLAND COUNTY, PENNSYLVANIA as subrogee of Carl Pederson, Plaintiff V. STEVEN M. HOUCK and JAMES E. SPICER, Defendants CIVIL ACTION - LAW NO. 99-4435 CIVIL TERM PRETRIAL CONFERENCE AND NOW, this 18th day of June, 2003, before Edgar B. Bayley, Judge, present for the Plaintiff was Patricia Corll, Esquire, and for Defendant Steven M. Houck, Richard H. Wix, Esquire. Defendant James E. Spicer has not entered an appearance. The case is ready for trial and should take one and a half to two days. A pretrial conference memo of February 19, 2003, sets out the issues. The case should not be listed for Monday but can be tried Tuesday or beyond. Patricia Corll, Esquire For Plaintiff Richard H. Wix, Esquire - For Defendant Steven M. Houck C P-'prs _ INSURANCE PLACEMENT FACILITY OF PENNSYLVANIA, Plaintiff V. STEVEN M. HOUCK and JACK JOSEPH SPICER, Defendants Question 1: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-4435 CIVIL TERM VERDICT SLIP Do you find that either of the Defendants was negligent? Jack Joseph Spicer Yes X No Steven M. Houck Yes No X If you answered Question I "No," as to Defendant Houck, Plaintiff can not recover as to him and you should return to the courtroom. If you answered Question I "Yes," as to Defendant Houck, you should proceed to Question 2. Question 2: As to each Defendant found negligent, was the Defendant's negligence a factual cause of any harm to Plaintiff? Jack Joseph Spicer Yes X No Steven M. Houck Yes No If you answered Question 2 "No," as to Defendant Houck, Plaintiff can not recover as to him and you should return to the courtroom. If you answered Question 2 "Yes," as to Defendant Houck, you should proceed to Question 3. Question 3: State the total amount of damages, if any, sustained by Plaintiff as a result of the fire: TOTAL $ 7'11P1 se po.3 (zr (Date) (Foreperson) • CASE NO.: 4;1 Judge_ ClerklProth VTlpstaH_ COU 71C RTROOM NO.: DOCKET NO.: 99. 4 `I 3 5 C L'd 71 ,,.., , DATE: Juror# Name Random No. 1 86 Line, Michael R 2104063596 2 93 Witmer, Harry D -2093352607 1 112 Junga, Carol M -2005834197 .4 - -.1 o er T -C- -1852798914 118 Sigafoos, John H -1766596452 _ 9; Geretter4ene-E- -1699030853 O °Z -1521329694 -1488094982 9 102 Tappan, Adrienne R -1303269448 10 89 Smithson, Ross W -1257167099 it 107 Tate, Robert M -1057059537 12 117 Sanders, Patrick F -900749593 13 123 Bailey, Brenda Sue -836685208 14 114 Phillips, .John B -780560496 15 92 Myers, Phillip R -649061664 16 ey,' et ? -540090381 17 ifil I t -532188398 x 97 Wakefield, Ralph A -289163028 19 7062741 2t1 104 Vandling, Charlotte M 305869657 21 "s kak:A k p3 613090385 22 119 Bert, Bradley T 879403885 2 3 106 Koleno, Sharlene L 1036647590 _14 108 Bittinger, Keith G 1079446340 ?5 96 Hartman, John D 1444536951 '_ti 95 Clark, Andrew S 1518205966 27 98 Galer, Miriam M 1871415677 2S 122 Keisling, Margaret L 1939688291 29 120 Fulton, Douglas K 2144512042 G v '-L Lc%e%e /. 30/P 1 . brrtzo r 9 ff'. 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