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HomeMy WebLinkAbout04-0255YALE ELECTRIC SUPPLY CO., INC. IN THE COURT OF COMMON PLEAS OF 2207 Paxton Street CUMBERLAND COUNTY, PENNSYLVANIA Harrisburg, PA 17111 Plaintiff VS. CIVIL ACTION - LAW n m ALAN G. UNGER No. C)q - ?ss C lU?C""' 236 Red Tank Road Boiling Springs, PA 17007 and 610 Alexander Spring Road Carlisle, PA 17013 and CEC, INC., A/K/A CUMBERLAND ELECTRIC COMPANY 236 Red Tank Road Boiling Springs, PA 17007 and 610 Alexander Spring Road Carlisle, PA 17013 Defendants PRAECIPE FOR WRIT OF SUMMONS TO THE PROTHONOTARY OF SAID COUNTY: Please issue a summons in the above case. Writ of Summons shall be issued and fo arded to Sheri ff for Service Lebanon, PA 17042 t 717/274-1421 Date: 14(Q -U? Attorneys for Plaintiff By: TI THY J. HUB Q. Atty. I.D. 47231 525 S. 8h Street YALE ELECTRIC SUPPLY CO., INC. 2207 Paxton Street Harrisburg, PA 17111 Plaintiff VS. ALAN G. UNGER 236 Red Tank Road Boiling Springs, PA 17007 and 610 Alexander Spring Road Carlisle, PA 17013 and CEC, INC., A/K/A CUMBERLAND ELECTRIC COMPANY 236 Red Tank Road Boiling Springs, PA 17007 and 610 Alexander Spring Road Carlisle, PA 17013 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No. Oi(- oTS$ 1. tug ??£lL?Y1 AFFIDAVIT OF SERVICE BY MAIL COMMONWEALTH OF PENNSYLVANIA) ) ss: COUNTY OF LEBANON ) I, MARYANN MOORE, an employee in the law firm of Buzgon Davis, 525 South Eighth Street, Lebanon, Lebanon County, Pennsylvania, Attorneys for Plaintiffs, being duly sworn according to law, depose and say that I filed on January 16, 2004, in the Office of the Prothonotary of Cumberland County, Pennsylvania, the original PRAECIPE FOR WRIT OF SUMMONS. pv?Qt ?? a U y rl uv,-, (MARYANN MOORE) Sworn to and subscribed before me this 16th day of January, A.D., 20014. ?N. tart' Public A Notarial seal Kelly L EnhW, Notary pubtlc -2- Ciry Of Lebanon, Lebanon County My Commkabn Expires W. 10, 2007 Member. PennS*ania Association of Notaries ?j?"jL? ^ ? ? ? r > n\ ? ^ ? ? ? ? ? ?-; TO YOU ARE HEREBY NOTIFIE TO FILE BUZGON DAVIS A WRITTEN RESPON TO THE ENCLOSED ATTORNEYS-AT-LAW WE 00 HE REBY IFV WITHIN TWENTY 01 DAYS FROM THE WITHIN IS A UE AN SERVICE HEREOF OR A JUDGMENT 525 SOUTH EIGHTH STREET RECT COPY THE OI MAY BE ENTER AGAINST YOU `- FILED IN THIS TION -- P.O. BOX 49 ??, BY A BY A / TTORNEY LEBANON, PENNSYLVANIA 17042 ATTORNEY IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA WRIT OF SUMMONS-CIVIL ACTION TO THE SHERIFF OF CUMBERLAND COUNTY: YALE ELECTRIC SUPPLY CO., INC. Plaintiff vs. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW ALAN G. UNGER and CEC, INC., A/IUA CUMBERLAND F,LECLRIC COMPANY, Defendants NO. c>'-t - "2,$S l ! c L ! ?./L/"Y TO: ALAN G. UNGER AND CEC, INC., A/K/A CUMBERLAND ELECTRIC COMPANY You arc notified that Yale Electric Supply CO., Inc., Plaintiff has commenced an action against you. Date: -11'(-) . 0 01 oZ UU? PROTHONOTARY Deputy Buzgon Davis Law Offices By: Timothy J. Huber, Esq., I.D.4472 11 Attorney for Plaintiff SHERIFF'S RETURN - REGULAR CASE NO: 2004-00255 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND YALE ELECTRIC SUPPLY CO INC VS UNGER ALAN G ET AL JODY SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon UNGER ALAN G the DEFENDANT , at 1550:00 HOURS, on the 22nd day of January 2004 at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQ CARLISLE, PA 17013 by handing to ALAN G UNGER a true and attested copy of WRIT OF SUMMONS together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 18.00 Service .00 Affidavit .00 Surcharge 10.00 .00 28.00 Sworn and Subscribed to before me this Alf k-- day of .2,/60 y / aA, .D . /P24othonotary So Answers: R. Thomas Kline 01/22/2004 BUZGON DAVIS By: Deity Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2004-00255 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND YALE ELECTRIC SUPPLY CO INC VS UNGER ALAN G ET AL JODY SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon CEC INC A/K/A CUMBERLAND ELECTRIC COMPANY the DEFENDANT , at 1530:00 HOURS, on the 22nd day of January , 2004 at CUMBERLAND CO SHERIFF'S OFFICE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 ALAN G UNGER, PRESIDENT a true and attested copy of WRIT OF SUMMONS by handing to together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this aZ9 day of 4 1- r (honotary So Answer/s:! R. Thomas Kline 01/22/2004 BUZGON DAVIS By. S? De ty Sheriff Yale Electric Supply Co., Tnc. vs Case No. 04-0255 Alan G. Unger and CEC, Inc., aka Statement of Intention to Proceed Cumberland Electric Company To the Court: Yale Electric Supply Cc), T n r intends to pr Kd the above captioned matter. Print Name Timothy J. Huber, Egign Name Date: 10/30/07 Attorneyfor Yale Electric Supply Co_, Inc. Explanatory Comment The Supreme Court of Pennsylvania has promulgated new Rule of Civil Procedure 230.2 governing the termination of inactive cases and amended Rule of Judicial Administration 1901. Two aspects of the recommendation merit comment. 1. Rule of civil Procedure New Rule of Civil Procedure 230.2 has been promulgated to govern the termination of inactive cases within the scope of the Pennsylvania Rules of Civil Procedure. The termination of these cases for inactivity was previously governed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting local rules. This rule was promulgated in response to the decision of the Supreme Court in Shop v. Eagle, 551 Pa. 360,710 A.2d 1104 (1998) in which the court held that "prejudice to the defendant as a result of delay in prosecution is required before a case may be dismissed pursuant to local rules implementing Rule of Judicial Administration 1901." Rule of Judicial Administration 1901(b) has been amended to accommodate the new rule of civil procedure. The general policy of the prompt disposition of matters set forth in subdivision (a) of that rule continues to be applicable. II Inactive Cases The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system. The process is initiated by the court. After giving notice of intent to terminate an action for inactivity, the course of the procedure is with the parties. If the parties do not wish to pursue the case, they will take no action and "the Prothonotary shall enter an order as of course terminating the matter with prejudice for failure to prosecute." If a party wishes to pursue the matter, he or she will file a notice of intention to proceed and the action shall continue. a. Where the action has been terminated If the action is terminated when a party believes that it should not have been terminated, that party may proceed under Ru1e230(d) for relief from the order of termination. An example of such an occurrence might be the termination of a viable action when the aggrieved party did not receive the notice of intent to terminate and thus did not timely file the notice of intention to proceed. The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of the entry of the order of termination on the docket, subdivision (d)(2) provides that the court must grant the petition and reinstate the action. If the petition is filed later than the thirty-day period, subdivision (d)(3) requires that the plaintiff must make a show in to the court that the petition was promptly filed and that there is a reasonable explanation or legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of termination on the docket and for the failure to file the petition within the thirty-day period under subdivision (d)(2). B. Where the action has not been terminated An action which has not been terminated but which continues upon the filing of a notice of intention to proceed may have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a common law non pros which exits independently of termination under Rule 230.2. C-7 C._3 C.? t.'(y r',. C=am T 1 ti_A ? 4 r -) ..ib. te ?;> (" co "? F •JbA lo.-alio Yale f:la4trw Supply (. o\Unper and c } C`('Iea?Irne??.Praecipe for I?O!Vdoc - 84/01) 111:04 A:NI YALE ELECTRIC SUPPLY CO., INC., Plaintiff vs. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW ALAN G. UNGER and NO. 04-255 CIVIL TERM CEC, INC., a/k/a CUMBERLAND ELECTRIC COMPANY, Defendants PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of BUZGON DAVIS LAW OFFICES, whose address is 525 South Eighth Street P.O. Box 49, Lebanon Pennsylvania 17042, as attorneys for YALE ELECTRIC SUPPLY CO., INC., Plaintiff in the above-captioned matter. BUZGON VIS LAW OFFICES BY: Timot* J. Huber, Esquire-Attorney I.D. #47231 525 South Eighth Street-Post Office Box 49 Lebanon, PA 17042-0049 (717) 274-1421 Fax: (717) 274-1752 E-mail: huber@buzgondavis.com Attorneys for Plaintiff Dated: Q, ` ???C? RL' OF THE_ F^r . OTARY 2009 AUG 20 AM 11: 2 CUtvI'.: ( ;.; v 1 1''•aiIN.itigatiowYale iaectric Snppl?Co Ganger and 0:C'Neading iConiplainuloc -8;4" )() JW02 AM TIMOTHY J. HUBER, ESQUIRE Attorney I.D. #47231 BUZGON DAVIS LAW OFFICES 525 South Eighth Street Post Office Box 49 Lebanon, PA 17042-0049 (717) 274-1421 Fax: (717) 274-1752 E-mail: huber@buzgondavis.com YALE ELECTRIC SUPPLY CO., INC., Plaintiff vs. ALAN G. UNGER and CEC, INC., a/k/a CUMBERLAND ELECTRIC COMPANY, Defendants Attorney for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 04-255 CIVIL TERM COMPLAINT 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 other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 1-800-990-9108 717-249-3166 AND NOW, comes the Plaintiff, Yale Electric Supply Co., Inc., by its attorneys, Buzgon Davis Law Offices, and files the within Complaint, averring as follows: I . Plaintiff, Yale Electric Supply Co., Inc., is a Pennsylvania corporation with a place of business located at 2207 Paxton Street, Harrisburg, Dauphin County, Pennsylvania, 17111 (hereinafter "YALE") 2. Defendant, Alan G. Unger, is an adult individual with last known addresses of 610 Alexander Spring Road, Carlisle, Pennsylvania, 17013, and/or 236 Red Tank Road, Boiling Springs, Pennsylvania, 17007 (hereinafter "UNGER"). 3. Defendant, CEC, Inc., a/k/a Cumberland Electric Company, is upon information and belief, a Pennsylvania company with last known addresses of 610 Alexander Spring Road, Carlisle, Pennsylvania, 17013, and/or 236 Red Tank Road, Boiling Springs, Pennsylvania, 17007 (hereinafter "CEC") 4. At all relevant times, UNGER was the sole shareholder, director and principal in Grant Electrical Contracting, Inc. (hereinafter "GRANT") -2- 5. Upon information and belief, GRANT was in the business of doing commercial and residential electrical work. 6. GRANT had a credit account with Plaintiff. 7. UNGER, as the sole shareholder, director and principal of GRANT, ordered various electrical supplies from Plaintiff during 2001 and early 2002, resulting in a balance due of $492,064.49. 8. Because GRANT failed to pay the charges, Plaintiff filed suit in the Court of Common Pleas of Dauphin County to Action No. 2612 CV 2002. 9. During the pendency of that Dauphin County action, GRANT filed for bankruptcy protection in the United States District Court for the Middle District of Pennsylvania. 10. According to those filings, GRANT was insolvent and unable to make material payments to its creditors. 11. The bankruptcy of GRANT was ultimately terminated. COUNT ONE - VIOLATION OF PENNSYLVANIA UNIFORM FRAUDULENT TRANSFERS ACT PLAINTIFF v. ALAN G. UNGER 12. The averments of paragraphs 1 through 11 are incorporated herein by reference as if textually set forth at length. 13. During calendar year 2000, UNGER, as the sole shareholder, director and principal of GRANT, arranged for cash payments from GRANT to himself as follows: (a) loan (b) salary (c) rent TOTAL $254,071.00 $ 48,252.00 $44,500.0 0 $346,823.00 -3- 14. In 2001, the loans owed by UNGER to GRANT were "forgiven" by the Company and reclassified as distributions to Mr. Unger. 15. In 2001, UNGER, as the sole shareholder, director and principal of GRANT, arranged for cash payments loan from GRANT to himself as follows: (a) Additional distribution $ 87,112.00 (b) salary $ 48,474.00 (c) rent 44 500.00 TOTAL $180,086.00 16. In 2002, UNGER, as the sole shareholder, director and principal of GRANT, arranged for cash payments loan from GRANT to himself as follows: (a) Contribution to capital ($ 81,500.00) (b) Distribution to shareholder $ 58,902.00 (c) salary $161,350.00 (d) rent 44 500.00 TOTAL $183,752.00 17. The above payments were made without fair consideration for goods or services in that they were either given outright for no consideration or were excessive and above the fair value of the goods or services provided. 18. The aforesaid transfers were fraudulent under the Uniform Fraudulent Transfers Act in one or more of the following respects: (a) They were made with the actual intent to hinder, delay or defraud creditors such as Plaintiff, -4- (b) They were without reasonably equivalent value and rendered the assets of GRANT unreasonably small for contemplated transactions and/or resulted in GRANT's inability to pay debts when they became due; or (c) They were made without reasonably equivalent value and rendered GRANT insolvent. WHEREFORE, Plaintiff respectfully requests your Honorable Court to: (a) enter judgment against Defendant, Alan G. Unger, in the amount of $492,064.49, together with interest at the rate of six percent (6%) from April 1, 2002, and costs of suit; (b) in the alternative, all of the transfers made to Defendant, Alan G. Unger, by Grant Electrical Contracting, Inc. should be disregarded and Mr. Unger ordered to repay those funds to GRANT; (c) appoint a receiver to take charge of UNGER's assets for purposes of effecting the awarded relief, and (d) enter such other relief as the Court deems appropriate and just. COUNT TWO - PIERCING CORPORATE VEIL PLAINTIFF v. ALAN G. UNGER 19. The averments of paragraphs 1 through 18 are incorporated herein by reference as if textually set forth at length. 20. UNGER, as the sole Shareholder, Director and Principal of GRANT, is responsible for its debts for one or more of the following reasons: (a) UNGER undercapitalized GRANT; (b) UNGER intermingled his personal assets and affairs with that of the Corporation; -5- (c) UNGER failed to adhere to corporate formalities; (d) UNGER operated GRANT as his "alter ego" for purposes of furthering his personal interests; (e) UNGER managed and operated GRANT for his own personal benefit in such a way that it became insolvent and unable to pay its debts as they became due; and (f) The liability protection afforded to UNGER as the sole Shareholder, Director and Principal in GRANT should be disregarded. WHEREFORE, Plaintiff respectfully requests your Honorable Court to: (a) enter judgment against Defendant, Alan G. Unger, in the amount of $492,064.49, together with interest at the rate of six percent (6%) from April 1, 2002, and costs of suit; and (b) enter such other relief as the Court deems appropriate and just. COUNT THREE - PLAINTIFF v. CEC INC. a/k/a CUMBERLAND ELECTRIC COMPANY successor co ratio 21. The averments of paragraphs 1 through 20 are incorporated herein by reference as if textually set forth at length. 22. Following the bankruptcy filing of Grant Electric Contracting, Inc, UNGER arranged for the formation of CEC and transferred GRANT's assets to it. 23. CEC was simply the continuation of the business of GRANT and formed for the purpose of avoiding obligations to the creditors of GRANT. 24. CEC is responsible for the debts and obligations of GRANT for one or more of the following reasons: (a) It is simply a continuation of the business of GRANT; -6- (b) It is GRANT's successor corporation; (c) It is effectively a de facto merger of the business and operations of GRANT; and (d) The transfers were simply a fraudulent scheme to escape the liability of creditors such as Plaintiff. WHEREFORE, Plaintiff respectfully requests your Honorable Court to: (a) enter judgment against Defendant CEC in the amount of $492,064.49, together with interest at the rate of six percent (6%) from April 1, 2002, and costs of suit; (b) in the alternative, all of the transfers made to Defendant, Alan G. Unger, by Grant Electrical Contracting, Inc. should be disregarded and CEC ordered to repay those funds to GRANT; (c) appoint a receiver to take charge of CEC's assets for purposes of effecting the awarded relief; and (d) enter such other relief as the Court deems appropriate and just. COUNT FOUR - VIOLATION OF PENNSYLVANIA UNIFORM FRAUDULENT TRANSFERS ACT PLAINTIFF v. CEC. INC., a/k/a CUMBERLAND ELECTRIC COMPANY, successor corporation 25. The averments of paragraphs 1 through 24 are incorporated herein by reference as if textually set forth at length. 26. UNGER arranged for the transfer of assets to CEC without consideration. 27. The transfers were fraudulent to the creditors of GRANT for the reasons set forth in paragraph 24 above. -7- WHEREFORE, Plaintiff respectfully requests your Honorable Court to: (a) enter judgment against Defendant CEC in the amount of $492,064.49, together with interest at the rate of six percent (6%) from April 1, 2002, and costs of suit; (b) in the alternative, all of the transfers made to Defendant, Alan G. Unger, by Grant Electrical Contracting, Inc. should be disregarded and CEC ordered to repay those funds to GRANT; (c) appoint a receiver to take charge of CEC's assets for purposes of effecting the awarded relief, and (d) enter such other relief as the Court deems appropriate and just. BUZGON VIS L AW OFFICES BY: Timoth J. Huber, Esquire Attorney I.D. #47231 525 South Eighth Street Post Office Box 49 Lebanon, PA 17042-0049 (717) 274-1421 Fax: (717) 274-1752 E-mail: huber@buzgondavis.com Attorneys for Plaintiff -8- (2D ?ED F THE RR, 'l'W7 !nTA RY 2L L"" ' UG CO Hit 11: 27 NITY Sheriffs Office of Cumberland County R Thomas Kline Sheriff Ronny R Anderson Chief Deputy Jody S Smith Civil Process Sergeant Edward L Schorpp Solicitor aNtp o1 ?um6lp?0 C Y; OFFICE OF 1,,c $re¢RIFF OF R `H TPPY rH I: G. 3 Yale Electric Supply Co., Inc. vs. Alan G. Unger Case Number 2004-255 SHERIFF'S RETURN OF SERVICE 08/26/2009 R. Thomas Kline, Sheriff, who being duly sworn according to law, states that he made a diligent search and inquiry for the within named defendant to wit: Alan G. Unger, but was unable to locate him in his bailiwick. He therefore returns the within Complaint and Notice as not found as to the defendant Alan G. Unger. Defendant was not found at 236 Red Tank Road Boiling Springs, PA 17007. Request for service at 610 Alexander Spring Road Carlisle, PA 17013 is currently being rented by PennDot. An exact address is not available. 08/26/2009 R. Thomas Kline, Sheriff, who being duly sworn according to law, states that he made a diligent search and inquiry for the within named defendant to wit: CEC, Inc. a/k/a Cumberland Electric Company, but was unable to locate them in his bailiwick. He therefore returns the within Complaint and Notice as not found as to the defendant CEC, Inc.. Defendant was not found at 236 Red Tank Road Boiling Springs, PA 17007. Request for service at 610 Alexander Spring Road Carlisle, PA 17013 is currently being rented by PennDot. An exact address is not available. SHERIFF COST: $64.80 August 26, 2009 SO ANSWERS.,- R THOMAS KLINE, SHERIFF (David D. Bueff Prothonotary T,irkS. Sohonage, ESQ Socicitor )753 Renee K. Simpson 1" Deputy Prothonotary Irene E. Morrow 2nd (Deputy (Prothonotary Office of the Prothonotary Cumberland County, Pennsylvania 6'7 - ZSS CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 30TH DAY OF OCTOBER, 2012, AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE -THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R.C.P. 230.2. BY THE COURT, DAVID D. BUELL PROTHONOTARY One Courthouse Square • Suite 100 • Car(sle, PA 17013 9 (717) 240-6195 • Eax (717) 240-6573