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HomeMy WebLinkAbout08-4066I r 1 T IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION CORNERSTONE DEVELOPMENT GROUP, INC. Plaintiff V. WATERFORD SQUARE ASSOCIATES, INC., Defendant No. 2008- q664 c of l+e cn Jury Trial Demanded Law and Equity COMPLAINT AND NOW, this 3'6 day of July 2008, comes Plaintiff, Cornerstone Development, Inc., which files this Complaint against Defendant, Waterford Square Associates, Inc. on the following grounds: 1. Plaintiff, Cornerstone Development, Inc., is a Pennsylvania corporation with a mailing address of 300 Bailey Drive, Suite 106, Stewartstown, PA 17363. 2. Defendant, Waterford Square Associates, Inc., is a Pennsylvania corporation with a mailing address of 111 Centerville Road, Lancaster, PA 17062. 3. On April 7, 2004, the parties entered into an Agreement of Sale/Purchase ("Agreement'), a true and correct copy of which is attached hereto and incorporated herein by reference as "Exhibit A", for the purchase of a property located in the Township of Silver Spring, Cumberland County, Pennsylvania ("Property") 4. Pursuant to this Agreement, Buyer/Plaintiff and Seller/Defendant agreed that Plaintiff would purchase the property for the sole use of construction of residential townhomes. 5. The Agreement contains the following applicable clauses: 3. Covenant to Develop Residential Townhouse Units Buyer covenants and agrees to develop said Property only for the construction of residential townhouse units having individual widths not exceeding twenty (20) feet in accordance generally with the provisions of the Sketch Plan. If Buyer should attempt to develop said Property other than for residential townhouse units, Seller shall have the right to cancel and rescind this agreement. 4. Price.... Buyer retains the right to cancel this agreement in the event that Buyer is unable to obtain approval for construction of not less than 120 residential townhouse lots. 5. Payment of Price. Buyer covenants and agrees to pay the Price in the following manner: A. $50,000.00 to be paid in guaranteed funds upon execution of this agreement, (hereinafter called "Deposit") ... to be held ... in a segregated interest-bearing escrow account, said sum to be held pending final settlement of the last phase of Buyer's development, at which time said Deposit shall be applied on account of the final portion of the Price. 18. Complete Agreement. This document is the entire and only agreement between the parties hereto, and it cancels and replaces any previous agreements between aid parties. Seller represents to Buyer that there are no outstanding agreements to sell the Property to any other persons. 6. The parties entered into Amendments of Agreement of Sale/Purchase, true and correct copies of which are attached hereto and incorporated herein by reference as "Exhibit B". COUNTI 7. The allegations in Paragraphs 1 through 6 are incorporated herein by reference thereto. t T [ t 8. Plaintiff and Defendant believed the property could be used for residential purposes. 9. The Agreement was contingent upon developing residential townhouse units. 10. The ability to develop the property with residential townhouse units was a mistake that relates to a basic assumption on which the contract was made. 11. The misconception that the property could be used for residential purposes entered into the contemplation of both parties as a condition of assent to the contract. 12. Plaintiff did not bear the risk of the mistake. 13. Defendant bore the risk of the mistake that the property could be used for residential purposes, as Defendant claimed a vested right to use the property for residential purposes. 14. The parties can be placed in their former position regarding the subject matter of the contract, but Defendant has refused even to refund the $50,000.00 deposit to Plaintiff despite repeated demands. WHEREFORE, Plaintiff, Cornerstone Development, Inc., respectfully requests this Honorable Court to enter judgment in its favor against Defendant, Waterford Square Associates, Inc., for reformation and restitution. COUNT II thereto. 15. The allegations in Paragraphs 1 through 14 are incorporated herein by reference 16. Throughout the course of negotiations prior to the Agreement, at the time the Agreement was executed, and thereafter until July 2006, Pete Slough a representative of 1 I I q Defendant, partial owner of the property, and licensed real estate broker, represented to Plaintiff that the property could be used for residential purposes and that he had a vested right to such use. 17. The Agreement was contingent upon developing residential townhouse units. 18. Defendant did not have a vested right to residential use of the property. 19. Defendant continued to represent to Plaintiff Buyer that he would work to "get back" the residential zoning. 20. The parties agreed to continue with the contract and continue with the engineering work at considerable expense based on Defendant's representations regarding its ability to get the property re-zoned residential. 21. Plaintiff reasonably relied on the representations of Mr. Slough and other agents of Defendant in proceeding with engineering and other costs associated with the residential development of the property contemplated under the contract. 22. Plaintiff expended over $84,000.00 in engineering and associated costs in attempting to develop the property for residential use, pursuant to the Agreement, and in reliance on the representations by Seller that the property would be able to be developed consistent with the terms of the Agreement. 23. The land cannot be used for residential use. 24. Defendant's representations that the land would be rezoned residential were knowingly misleading and false and intended to continue the contractual relationship. WHEREFORE, Plaintiff, Cornerstone Development, Inc., respectfully requests this Honorable Court to enter judgment in its favor against Defendant, Waterford Square Associates, Inc., for an amount that exceeds the jurisdictional limit referring the matter to arbitration. Respectfully submitted, BLAKEY, YOST, B & RAUSCH, LLP Dated: 0 By; ?Wakwc? N\N?" A I Carolyn J. P&tl" gj? E Counsel for Cornerstone Development Group, Inc. 17 East Market Street York, Pennsylvania 17401 Supreme Ct. I.D. #200972 Telephone (717) 845-3674 AGREEMENT OF SALE/PURCHASE This agreement made and entered into this 7th day of April, 2004, by and between: WATERFORD SQUARE ASSOCIATES, INC., having a mailing address for all purposes hereunder of 111 Centerville Road, Lancaster, PA 17062, party of the first part, hereinafter called "Seller", AND CORNERSTONE DEVELOPMENT GROUP, INC., having a mailing address for all purposes hereunder of 300 Bailey drive (Suite 106), Stewartstown, PA 17363, party of the second part, hereinafter called "Buyer": WITNESSETH: WHEREAS, Seller is the owner of a certain tract of land situated in the Township of Silver Spring, Cumberland County, Pennsylvania (hereinafter called "Property-), as more fully depicted on a certain sketch plan attached hereto marked "Exhibit All and made a part hereof (hereinafter called "Sketch Plan"); and WHEREAS, Seller desires to sell said Property and Buyer desires to purchase said Property; and WHEREAS, the parties have negotiated various terms and conditions as more fully contained herein below, whereby Seller agrees to sell said Property to Buyer and Buyer agrees to purchase said Property from Seller; NOW, THEREFORE, in consideration of these presents and the mutual promises, terms and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. Preface The foregoing preamble and paragraphs are incorporated herein by reference thereto. 2. General Agreement. Seller agrees to sell said Property and convey title thereto to Buyer and Buyer agrees to purchase said Property and accept conveyance thereof from Seller on the terms hereinafter set forth. 3. Covenant to Develop Residential Townhouse Units. Buyer covenants and agrees to develop said Property only for the construction of residential townhouse units having individual unit widths not exceeding twenty (20) feet in accordance generally with the provisions of the Sketch Plan. If Buyer should attempt to develop said Property other than for residential townhouse units, Seller shall have the right to cancel and rescind this agreement. 4. Price. A. Buyer agrees to pay to Seller as the total price and consideration for the conveyance of the Property, a sum of money equal to the number of residential townhouse units which may lawfully be constructed on said Property times Thirteen Thousand ($13,000.00) Dollars per residential townhouse unit (the "Base Price") plus the Additional Price as computed in accordance with the escalator provisions contained in subparagraph B below (the total thereof hereinafter called "Price") based upon the following elements: (1) Buyer shall use its best efforts to obtain all necessary approvals for the construction of not less than one hundred twenty (120) residential townhouse units in general conformity with the Sketch plan. (2) Buyer shall have the right to develop the Property by physically dividing it into not more than three (3) geographical phases, each phase to contain an equal number of residential townhouse units, with each phase being logically connected to each prior phase. Buyer retains the right to cancel this agreement in the event that Buyer is unable to obtain approval for construction of not less than 120 residential townhouse lots. B. In addition to the foregoing basic pricing terms in subparagraph A above, Buyer agrees to pay to Seller as Additional Price per residential townhouse unit based upon the following escalator provisions: (1) If Buyer develops the Property in two or more development phases, Buyer shall pay to seller as Additional Price the sum of Six Hundred Fifty ($650.00) Dollars per residential townhouse unit for each such unit included in the portion of the Property conveyed within 365 days after the date of settlement of the first development phase, making the multiplier $13,650.00 per residential townhouse unit for the second phase of development. (2) If the Buyer develops the Property in three (3) development phases, the Additional Price for the second phase shall be as provided in subparagraph B(1) above, and thereafter the Buyer shall pay to Seller as Additional Price the sunn of One Thousand Three Hundred Thirty-two and 50/100 ($1,332.50) Dollars per residential townhouse unit for each such unit included in the portion of the Property conveyed within 365 days after date of settlement of the second development phase, making the multiplier $14,332.50 per residential townhouse unit for the third (last) phase of development. 5. Payment of Price. Buyer covenants and agrees to pay the Price in the following manner: 2 A. $50,000.00 to be paid in guaranteed funds upon execution of this agreement (hereinafter called "Deposit") the receipt of which is hereby acknowledged, said deposit to be held by Seller's attorneys, Snelbaker, Brenneman & Spare, P.C., in a segregated interest-bearing escrow account, said sum to be held pending final settlement of the last phase of Buyer's development, at which time said Deposit shall be applied on account of the final portion of the Price. B. A directly proportionate portion of the price (based upon the number of residential townhouse units) shall be paid in guaranteed funds upon final settlement of conveyance of each phase of development. 6. Final Settlement. Final settlement of this transaction shall be held at Seller's office at 1:00 o'clock P.M., prevailing time, on the days as follows: A. If Buyer elects to acquire the entire Property or the first phase of two (2) or more development phases, settlement shall occur on a day mutually agreeable but. in no event later than the 30* calendar. day following approval of a Final Subdivision Plan for the entire Property as provided herein below, time being of the essence of this agreement. B. If Buyer elects to acquire the Property in two or three development phases: (1) For a two-phase development: Settlement shall occur on a day mutually agreeable but in no event later than three hundred sixty-five (365) calendar days after the date of settlement of the first phase of development as provided in subparagraph A above, time being of the essence of this agreement. (2) For a three-phase development: Settlement shall occur on a day mutually agreeable but in no event later than three hundred sixty-five (365) calendar days after the date of settlement of the second phase of development as provided in subparagraph B(1) above, time being of the essence of this agreement. 7. Events of Settlement. At each final settlement as provided in paragraph 6 above, Seller agrees to convey to Buyer the phase of the Property so involved by special warranty deed, free and clear of all liens and encumbrances except as provided in paragraph 10 herein below, and to deliver possession to Buyer. The parties agree to prorate and apportion the annual teal estate taxes attributed to said phase of Property as of and to the date of said settlement. The parties shall share equally the payment of realty transfer taxes due on the conveyance, Seller to pay one-half and Buyer to pay one-half. The legal description for each deed shall be based upon a township approved final subdivision plan, on which such plan each phase shall be deemed to be a separate lot. 3 8. Review Period. For a period of sixty (60) calendar days from and after the date hereof ("Review Period"), Buyer shall have the right to review the proposed development and make whatever investigation it may require. All inspection and investigation shall be made at Buyer's sole cost and expense. If at any time during said Review Period, Buyer in exercise of its sole discretion elects to cancel and rescind this agreement, it shall have the right to do so by written notice to Seller, after which Seller shall direct its attorneys to refund the Deposit (with any accrued interest) to Buyer, at which time this agreement shall become void and unenforceable. Buyer is authorized to enter upon the Property for the purpose of performing soil and subsurface studies and surveys. Buyer shall restore the Property to its pre-inspection condition upon completion of its studies. Buyer agrees to indemnify Seller and to hold Seller harmless of, from and against all claims, liabilities, actions and suits at law or in equity arising from any of Buyer's activities on said Property. 9. Planning Schedule. Unless Buyer elects to rescind and cancel this agreement as provided in paragraph 8 above, Buyers shall proceed as follows: A. At its sole cost and expense, Buyer shall prepare and file all necessary subdivisions and applications for approval of development of residential townhouse units as contemplated hereinabove. All such applications and subdivisions shall be subject to Seller's prior written approvals, which approvals shall not be unreasonably withheld. B. All necessary approvals and permits must be obtained by Buyer by December 31 , 2004 ("Final Approval Date"). However, subject to proof satisfactory to Seller "of Buyer's continuous good faith pursuit of such approvals and permits, Seller will agree to extend said Final Approval Date up to six (6) consecutive extensions of thirty (30) days each ("Extension's upon Buyer's payment of the sum of Five Thousand ($5,000) Dollars to Seller in advance of each such Extension. If all necessary approvals and permits are not acquired by the end of the sixth Extension, Seller will, upon proof satisfactory to Seller of Buyer's good faith pursuit of such approvals and permits, agree to further extend said Final Approval Date up to six (6) additional consecutive extensions of thirty (30) days each ("Additional Extension's upon Buyer's payment of the sum of Ten Thousand ($10,000) Dollars to Seller in advance of each such Additional Extension. The consideration paid for Extensions and Additional Extensions as provided in subparagraphs A and B immediately above shall be paid directly to Seller, which payments shall not be refundable to Buyer if Buyer elects to cancel or rescind their Seller's default in performance of this agreement), but shall be credied agreement the Price eif this agreement is not otherwise cancelled or rescinded. If, after pursuing the necessary approvals and permits in good faith, Buyer has not obtained all necessary approvals and permits by the end of the last extension granted by Seller, 4 either party shall have the right by written notice to the other to cancel and rescind this agreement, in which event, Seller shall direct its attorney to refund the Deposit and all accrued interest to Buyer, in which event this agreement shall become void and of no further legal effect, except for the following terms which shall survive such cancellation and rescission: Buyer shall deliver and transfer ownership to Seller all studies, surveys, tests, investigations, subdivisions, development plans and governmental decisions which were produced by or for Buyer during its application and subdivision procedures, free and clear of all fees, costs, expense or liens of any third-parties claiming an interest therein for preparation or otherwise. 10. Quality of Title to Property. Seller agrees to convey title to the Property in whole or in phases as aforesaid in fee simple, free and clear of all liens and encumbrances, except the following: A. Rights and privileges of all public utilities or municipal services as documented of prior record or by notice from maintaining facilities on the Property. B. Building and use restrictions of public record, including, but not limited to, use restrictions resulting from prior agreement with Cumberland Valley School District limiting the nature and type of business development adjoining lands of said school District, but not including any such restrictions which prevent or prohibit the development of the Property for residential townhouse units. C. Notes and provisions of all prior subdivision plans relating to the property. D. Rules and regulations of all governmental agencies governing land subdivision, use and/or development of the Property. Buyer shall have sixty (60) calendar days from the date hereof within which to examine the title to said Property and determine its acceptability which shall be such as can be insured at regular rates by a reputable title insurance company doing business in Pennsylvania. If there are any exceptions not allowed as aforesaid which prevent such acceptance of Seller's title, Buyer shall give written notice thereof to Seller not later than ten 0 0) calendar days following the expiration of the 60-day examination period, following receipt of which notice, Seller shall have thirty (30) calendar days to resolve such exceptions. If Seller is not able to resolve said exceptions within said period of thirty (30) days, Buyer shall have the option of (1) accepting such title as Seller may be able to deliver with no adjustment of Price, or (2) rescinding and canceling this agreement, in which latter event, Seller shall direct its attorneys to refund the Deposit and any accrued interest to Buyer, in which event this agreement shall become void and of no further legal effect. If Buyer does not give the required notice of unacceptable exceptions, it shall be deemed to have waived all exceptions and will accept Seller's title as it then exists. 11. Access of Bac ground Material. Within ten (10) calendar days after the date hereof, Seller shall, at Seller's office, made available for Buyer's review all then existing engineering reports, plans, surveys, governmental approvals, land testing reports and environmental reports, together with a list of all professionals and experts which Seller believes 5 may be helpful to Buyer in proceeding with the development of the Property. Seller shall remain the owner of all such materials, but agrees to transfer the rights thereto to Buyer at the time of the first settlement of conveyance hereunder. 12. Sewer and Water Availability. The obligation of Buyer to proceed to closing for each phase described above shall be subject to the continued availability of water and sewer permits to service the residential townhouse units. In the event there is a sewer or water moratorium which prevents Buyer from connecting to said service, all time periods with respect to subsequent closings shall be stayed for the period of such unavailability. Buyer shall not be obligated to close on any additional phase until such time as sewer and water shall become available at which time all time periods shall resume as of the date of the lifting of the moratorium, and shall continue from the date of original stay with only the period of stay being deleted from the time period. Notwithstanding the foregoing, if such moratorium or unavailability of sewer and water service continues for a period in excess of one year, either party, at any time thereafter, may terminate this agreement by written notice to the other. 13. Brokers' Commission. Seller shall be responsible for payment of any real estate brokerage commission or similar fee or compensation arising out of or in any way connected with a claimed agency or cooperative relationship relating to this agreement for the purchase and sale of the Property. Buyer represents and warrants to Seller that it has dealt with no broker in connection with this transaction other than Gary Nentwig of Coldwell Banker HomeSale Services Group and William M. Gladstone of CIR (Commercial Industrial Realty) Company. Seller agrees to pay 8% of the Price, which shall be equally divided between these two Brokers, said commission to be paid in installments, the number-of which shall be determined by the number of settlements of development phases as provided hereinabove and the amount of each shall be based upon the portion of the Price paid at each such settlement. Buyer shall indemnify and hold Seller harmless of, from and against all claims of any and all brokers or other intermediaries claiming to have had any dealings, negotiations or consultation s with Buyer in connection with this agreement or the sale of the Property. 14. Notices. All notices under this agreement must be in writing. The notices must be delivered personally or mailed by certified mail, return receipt requested, to the other party at the address set forth in the preamble to this agreement and to the attention of the following person: As to.Se}ler:t?yer Sam Juffe Cornerstone Development Group, Inc. 1100 Centennial Avenue, Suite 201 Piscataway, NJ 08854 (732) 981-1004 Office; (732) 981-1044 Fax with a copy to: Albert G. Blakey Blakey, Yost, Bupp & Rausch 17 East Market Street York, PA 17401 (717) 845-3674 Office: (717) 854-7839 Fax 6 As to Seller: Paul H. Slaugh, Jr. Waterford Square Associates, Inc. 111 Centerville Road Lancaster PA 17603 (717) 393-0783 Office; (717) 393-5298 A copy of such notice shall be delivered to the receiving party's attorney by the same means as for the parties. 15. Recor_ding. This Agreement of Sale shall not be recorded in the Office of the Recorder of Deeds or in any other office of place of public record. 16. Successors. This agreement shall inure to the benefit of and be binding upon the parties, their respective heirs, personal representatives, guardians, and successors and assigns; however, this agreement may not be assigned by Buyer without the prior written consent of Seller, which consent shall not unreasonably be withheld. Any such attempted assignment in violation of the foregoing limitation shall be void and of no legal effect. 17. Amlicable Law. This agreement shall be interpreted and enforced in accordance with the law of the Commonwealth of Pennsylvania. 18. Complete Aereement. This document is the entire and only agreement between the parties hereto, and it cancels and replaces any previous agreements between said parties. Seller represents to Buyer that there are no outstanding agreements to sell the Property to any other persons. 19. Modifications. The terms contained in the document may be modified, amended or otherwise changed only by a further written document containing such modified, amended changed provisions, with specific reference to this agreement and signed by all parties. or 7 IN WITNESS WHEREOF, the parties have executed this agreement by their duly authorized representatives as of the date first written above. SELLER: BUYER: DEVELOPMENT GROUP, INC. By YJA-Z-7 ATTEST: Sam Juffe, l race Wilt, retary 8 04/15/2004 11:X35 717a?50752 B GLADSTONF PAGE 01/01 APR-13-2004 12:27 CB FOMESALE SERVICES 717 393 S,98 P.10 JOWDER BY SAIM BROKERS The following entities, being the sales brokers idea0ed in paragraph 13 herein gave, hereby join in the foregoing ag=ment in order to indicate their understanding and agrec went to the terms of said paragraph 13 COLDWELL BANKER ROM MALE SERVICES I ;ROUP By ccpa=4::?- GlrY64twig COMMERCIAL EgDUSTIUAL REALTY COMANY (' Cat") William M ObdsWna Censor ComftMw WSM*rd Sgnm 4.7.01 9 TOTAL P.10 Cx?rd,+ 6 Q 06/01/200.; 12:40 FAX 7176977681 SNELBAItER BRENNEMAN SPAR Z002 AGREEMENT OF SALE/PURCHASE This agreement made and entered into this -7-N 1 day of June, 2004, by and between: WATERFORD SQUARE ASSOCIATES, INC., having a mailing address for all purposes hereunder of 111 Centerville Road, Lancaster, PA 17062, party of the first part, hereinafter called "Seller", AND CORNERSTONE DEVELOPMENT GROUP, INC., having a mailing address for all purposes hereunder of 300 Bailey Drive (Suite 106), Stewartstown, PA 17363, party of the second part, hereinafter called "Buyer": WITNESSETH: WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement"), a true copy of which is attached hereto and incorporated herein by reference thereto; and WHEREAS, the first textual paragraph of paragraph 8 of said Original Agreement provides for a Review Period of 60 days from the date of said Original Agreement; and WHEREAS, the parties have agreed to extend said Review Period until hily 14, 2004, and desire by these presents to amend the Original Agreement accordingly; NOW, THEREFORE, in consideration of these presents and the mutual promises, terns and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. The foregoing preamble and paragraphs are incorporated herein by reference thereto. 2. The parties hereby agree to amend, modify and change the first textual paragraph of paragraph 8 of the Original Agreement to read as follows: 8. Review Period. For a period of time ending at 11:59 P.M., prevailing time, on July 14, 2004 (hereinafter called "Review Period"), Buyer shall have the right to review the proposed development and make whatever investigation it may require. All inspection and investigation shall be made at Buyer's sole cost and expense. If at any time during said Review Period, Buyer in exercise of its sole discretion elects to cancel and rescind this agreement, it shall have the right to do so by written notice to Seller, after which JUN-02-2Q04 14:35 GCB HOhESALE SERVICES 717 393 5298 P.03 Seller shall direct its attorneys to refud the Deposit (with any acccund interest) to Buyer, at which time this agreement shall become void and unenforceable. 3. Except only as amcndcd, modified and changed as aforesaid, the parties ratify, confirm and reaffirm the Original Agreement as so amendecL modifed and changed. IN WrM- SS WHEREOF, the parties have executed this agreemenr by their duly authorized representatives as of the dam first written above. SELLIER: WATERFORD SQUARE ASSOCIATES, INC. By President BUYER: 2 DEVELOPMENT GROM JNC. TOTAL. P.03 05/02/2004 14:29 7179'50752 B GLADSTONE PAGE 02/02 JUN-02-2004 11:53 1 HOMESALE SERUICES ?1'i SyJ ?c?o ?.?• JOINDER B fiALES BROIRS The following entities, being tha sales brokers identified in paragraph 13 of the Original Agreement mentioned in the foregoing First Amendment of Agreemem of Sale/purchase, hereby join in the First Amendment of Agreement of Saldpurcbase in order to indicate their undersmding and agreement to the Original Agreement as so amended, modified and changed. OOLDWEL BAMaR $OWSAU S) RYICES GROUP By Gary twig COMMERMI, DMU6TRIAI, REALTY COMM" ("ClA") William M. Madseone 3 TOTAL P.04 -- - ecv P.04 JUN-21-2004 15:12 -CB HOMESALE SERVICES X17 393 5298 SECOND AMENDMENT OF A EMS= F S EJP This agreement made and entered into this t r day of June, 2004, by and between: WATERFORD SQUARE ASSOCIATES, INC., having a mailing address for all purposes hereunder of 111 Centerville Road, Lancaster, PA 17062, party or the first pan, hereinafter called "Seller", AND CORNERSTONE DEVELOPMENT GROUP, INC., having a mailing address for all purposes hereunder of 300 Bailey Drive (Suite 106), Stewartstown, PA 17363, parry of the second part, hereinafter called "Buyer": WnWESSETH: WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement"), a true copy of which is attached hereto and incorporated herein by reference thereto; and WHEREAS, the first textual paragraph of paragraph 8 of said Original Agreement provides for a Review Period of 60 days from the date of said Original Agreement; and WHEREAS, the parties heretofore agreed in writing dated June 2, 2004, to extend said Review Period until July 14, 2004, a true copy of said document of extension ("First Amendment") being attached hereto and incorporated herein by reference thereto; NOW, THEREFORE, in consideration of these presents and the mutual promises, terms and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. The foregoing preamble and paragraphs are incorporated herein by reference thereto, 2. The parties hereby agree to further amend, modify and change the first textual paragraph of paragraph 8 of the Original Agreement and paragraph 2 of the First Amendment to read as follows: 8. Review Period. For a period of time ending at 11:59 P.M., prevailing time, on August 31, 2004 (hereinafter called "Review Period'), Buyer shall have the right to review the proposed development and make whatever investigation it may require. All P.02 JUN--?1-2004 15:12 CB HOMESALE SERVICES . . W'.' 1-4 • kl r CB HOP9ESPLE aERU I CES 717 393 5298 P.03 717 393 5;o.3s F'.63 uaspaaion wad iMtsttgatson Aall ho mode at Buyer'e solc cost Pad exponse, if at any tune during Bald Review pajo k Iluyer in exercise of its Dole rfiuxelion elects to cytce) and MS6W this RfAeMftt it shell have die ri to do so h after which Sayer awl dh=j its ettomyc to ftfund the rmpoeitt (With any, aecruedcy, interest) to Buye:, Qt which tkro this 84MMEnt shall become vofd atui unoforccablc, ron$rm and reafhr pt only m arie?ridad, raodified VA changed its aforesAld, the partite ratify, ch;uidccl, she Orfginal Apvgmont aid First Atnetndment as so arne?adedy r»odifiod and tN 1WIT1VIE$6 WUVXOF.1he partyes have executed thit agrearnert by their duly aurt,rtrized rapre,?MAtives as Of the date first wrnten above, SFILFR: 2YV O /A 1T1: Presidcut r uG BUYER bEY?'L6p?? tiROUP, JNr.- By 1 A i rUST: sident s 2 SEP720-20P4 14:52 `8 HOMESALE SERVICES •717 393 5298 P.02 THM AMNDMENT OF Or SAr n?rr?r,tr. ?,.. vwa..aa?w This "en' made and entered into this_ Z ? ----daY of September, 2004 by and between: WATERFORD SQUARE ASSOC Having a mailing address for all ?S' ]NC. Of l l I Centen+ille R purposes hereunder Party of the first ?' caster' PA I7062, Perk hereinaRer-called "Seller", AND CORIMRSTONE DEVELOPINTNT GROUP, INC., Having a mailing address for all 300 Bailey Drive (Suite 106 Ste he ceder of Party of the second ?' w OW14 PA 17363 part, hereinafter-called Buyer'; , WITNESSET$; 2004 WM1tEAS, the parties hereto entered into as A , (hereinafter called "Original A gr?ment gy of t of Sale/Ptucliase on April 7, co rporated herein by reference thereto: and "), a true copy of which in is attached hereto and for a 12evieS 0 the 60udatextual pagmpLb Y from the date o Of Said Ong 8 of said origin Agreement provides Agreement: and 1"'EREAS, the parties heretofore agreed Review Period until July 14, 2004. F in wnt?ng dated June 2, 2004, to extend said writing to further extend the Review Period until June 2 ], 2004 the parties heretofore agreed in ugust 31, 2004. NOW, MEREFp1ZE, in consideration of these presents and mutual Promises, terms and conditions set forth herein, and intending to be legally bound hereby, the follows: Y? Parties mutually agree as 1. The foregoing Preamble and paragraphs are incorporated herein by ref 2, The Y thereto. Parties hereby agree to further amend, m located in the first textual paragraph of ? ence and change the Final Approval bate follows: p?'Ph 9-8 of the Original Agreement as Final Approval Date changed to March l 2005 required to follow the guidelines outlined Para Any additional extensions if graph 9-B. 3. Except only as amended, modified and changed as aforesaid, the and reaffirm the Orig Agreement, First Amendment, Second drnentYcd tDhism Third Amendment as so amended, modified and changed. SEP720-2004 14:53 CB HOMESALE SERVICES ?1? 393 5298 P.03 IN WITNESS WMREOF, the parties have executed this authorized representatives as of the date first wri moment by their duly tteri above. ATTEST: BUYER: By: ATTEST: GROUP, INC. rq 01 i17*47 S t commercial-industrial really (cir) VOMMERCIAL REAL ESTATE SE:RWICLS, WQRLt>WtDE FOURTH AMENDMENT Of AGREEMENT Of SALEIPURCHASE The Agreement made and entered into this 24th day of June, 2005 by and between: Waftrford Square Assodates„ Inc. 111 Centerville Road Lancaster, PA 17603 Referred to as the Seiler AND Cornerstone 0mllopment Group, Inc., or their assigns 300 Bailey Drive Suite 106 Stewartstown, PA 08854 Referred to as the Buyers, VVITNI SM- H: Tt5!v..MAM Rcu ,LROV AO•ess ?O Dot &Qto Ca-.v A0, AA I";.6orr, WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement'), a true copy of which Is attached hereto and incorporated herein by reference thereto., and WHEREAS, the first textual paragraph of Paragraph 9 of said Original Agreement provides for Planning Schedule, Unless Buyer elects to rescind and cancel this agreement as provided in Paragraph 8 of the Original Agreement, Buyers shalt proceed as follows: WHEREAS,. At its sole cost and expense, Buyer shall prepare and file all necessary subdhRisions and applications for approval of development of residential townhouse units: as contemplated hereinabove. All such applications and submissions shall be made to Silver Spring Township on or before August 4, 2005 pursuant to paragraph 2 of this Addendum. im otrr.iall.Afarken WWdMitfr- N.,V Aa+ym X'Al AtAo Ilai-/ - NA! Cau da AI F.#Pvh, Al Lan* Awer7ra• awdrh C??/aE.va INDIVIDUAL MEMBER OF 717/767-8070 "`AX f17,?g38yfs? PLW.iw vtic?yttit,,•y,. Wnt.w a .7n.A _ nabp 1 I NOW, THEREFORE, In cony ' ,n of these presents and ML ..., .._ .omises, terms and conditions set forth herein, and Intending to be legally bound hereby, the parties mutually agree as follows. I. Except only as amended, modified and changed as aforesaid, the parties ratify, confirm and reaffirm the Original Agreement, First Amendment, Second Amendment, Third Amendment, and Fourth Amendment as so amended, modified and changed. 2. Extension of the submission of preliminary plan approval to eight (8) weeks from the date of this Amendment, which would be August 24, 2005 provided that this amendment is signed by all parties prior to June 29, 2-006. If signed after that date submission will be made one month later. 3. Buyer shall be required to close on said property 60 days after receiving final site plan and land development approval and meeting all conditions of said approval, but no later than 4/30/06 unless extended In writing by both parties. 4. As a condition of this contract the Buyer, at Buyers expense, will have the obligation to place themselves on the reserve capacity Ilst created by Silver Spring Township for available EDU's associated with the pump station and sewer plant servicing the subject property, at the earliest date possible. Buyer, at Buyer's expense, having placed themselves on the Silver Spring list of EDU's as of the date of this Addendum, has already reserved 94 available EDU's, the maximum that is currently available. As a result, Buyer will: A.) Allow the Seller to sign B.) C.) agreement as co-owner of any future EDU's reserved, cost of Seller. the sewer capacity, reservation the. EDU's currently reserved and up to a total of 120 EDU's, at no Exert all reasonable efforts to obtain the final 26 EDU's, as they become available, to complete the project of 120 units. Seller, at no cost to Seller, will also be allowed to sign as co- owner for these additional 26 EDU's. In the event that the Buyer waives its rights to purchase the original 94 EDU's or the additional 26 EDU's when they are available, Buyer will have the obligation to proceed forward to settlement and will waive the availability of EDU's or any other contingencies (such as Land Development Plan Approval) that would be conditioned on the availability of EDU's under the Buyer's contract. M WITNESS WHEREOF, the ?•.. have executed this Agreeme- eir duly ' authorized representatives a:. ?,. the date first written above. SIGNED AND AGREED TO BUY: SQUARE ? Date: A V _ /17 :TTE I ?G SELLER: By: INC. BUYER: Date: J-VG CORNER NE DE' By: G? Sam ]uffe, P GROUP, INC. ATTEST; V Fourth Amendment of Agreement of Sale Purchase•WMG-sem-6-27-05 CALMER CORP. DAVID L. MEULER PRESIDENT (717) 691-8600 P.O. Box 1549 FAX.• (717) 691-8559 Mechanicsburg, PA 17050 dmetler@carlislecc.com Al/+< y - A«a-e- W,« Ak?e4' 77 S3J* 'L4-y? S' x,,13 e t J /Y t, ?tti9?? S 071(4a4- FIFTH AMENDMENT OF AGREEMENT OF SALE / PURCHASE This Agreement made and entered into this day of June, 2005 by and between: Waterford Square Associates, Inc. 111 Centerville Road Lancaster, PA 17503 referred to as the Seller AND Cornerstone Development Group, Inc., or their assigns 300 Bailey Drive Suite 106 Stewartstown, PA 08854 referred to as the Buyers. WITNESSETH. WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement"), a true copy of which is attached hereto and incorporated herein by reference thereto: and WHEREAS, the first textual paragraph of paragraph 9 of said Original Agreement provides for Planning Schedule. Unless Buyer elects to rescind and cancel this agreement as provided in paragraph 8 above, Buyers shall proceed as follows: WHEREAS, At its sole cost and expense, Buyer shall prepare and file all necessary subdivisions and applications for approval of development of residential townhouse units as contemplated hereinabove. All such applications and subdivisions shall be made to Silver Spring Township on or before August 4, 2005. NOW, THEREFORE, in consideration of these presents and mutual promises, terms and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. Except only as amended, modified and changed as aforesaid, the parties ratify, confirm and reaffirm the Original Agreement, First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment as so amended, modified and changed. 2. Extension of the submission of preliminary plan approval to eight (8) weeks from the date of this Amendment, which would be August 3, 2005. IN WITNESS WHEREOF, the parties have executed this agreement by their duly authorized representatives as of the date first written above. SIGNED AND AGREED TO BY: ATTEST: Secretary SELLER: WATERFORD SQUARE ASSOCIATES, INC By: President BUYER: CORNERSTONE DEVELOPMENT GROUP, INC By: Sam Juffe, President ATTEST: Secretary 2 •.• 4 t SIXTH AMENDMENT OF AGREEMENT OF SALE / PURCHASF f .t t This Agreement made and entered into this - day of November, 2005 by and between: Waterford Square Associates, Inc. 111 Centerville Road Lancaster, PA 17603 referred to as the Seller AND Cornerstone Development Group, Inc., or their assigns 300 Bailey Drive Suite 106 Stewartstown, PA 08854 referred to as the Buyers. WITNE,SSETH: WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement'), a true copy of which is attached hereto and incorporated herein by reference thereto: and WHEREAS, the first textual paragraph of paragraph 9 of said original Agreement provides for Planning Schedule. Unless Buyer elects to rescind and cancel this agreement as provided in paragraph 8 of the Original Agreement, Buyers shall proceed as follows: WHEREAS, At its sole cost and expense, Buyer shall prepare and file all necessary subdivisions and applications for approval of development of residential townhouse units as contemplated hereinabove. All such approvals, applications and submissions shall be extended through June 30, 2006. NOW, THEREFORE, in consideration of these presents and mutual promises, terms and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. Except only as amended, modified and changed as aforesaid, the parties ratify, confirm and reaffirm the Original Agreement, First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment as so amended, modified and changed. IN WITNESS WHEREOF, the parties have executed this agreement by their duly authorized representatives as of the date first written above. 1 4 1 1 l SIGNED AND AGREED TO BY: ATTEST: Secretary . I 4 SELLER: WATERFORD SQUARE ASSOCIATES, INC By: President BUYER: DEVELOPMENT GROUP, INC ATTEST: ?T. Sec By: 2 Sam 0 . S f j 4 41 SEVENTH AMENDMENT OF AGREEMENT OF SALE/PURCHASE This Agreement made and entered into this 7h day of March, 2006 by and between: Waterford Square Associates, Inc. 111 Centerville Road Lancaster, PA 17603 referred to as the Seller WITNESSETH: Cornerstone Development Group, Inc., or their assigns 300 Bailey Drive Suite 106 Stewartstown, PA 08854 referred to as the Buyers WHEREAS, the parties hereto entered into an Agreement of Sale/Purchase on April 7, 2004, (hereinafter called "Original Agreement'), a true copy of which is attached hereto and incorporated herein by reference thereto: and WHEREAS, the first textual paragraph of paragraph 9 of said Original Agreement provides Planning Schedule. Unless Buyer elects to rescind and cancel this agreement as provided in paragraph 8 of the Original Agreement, Buyer shall proceed as follows: WHEREAS, at its sole coast and expense, Buyer shall prepare and file all necessary subdivision and applications for approval of development of residential townhouse units as contemplated hereinabove. All such approvals, applications and submissions shall be extended through December 31, 2006. NOW, THEREFORE, in consideration of these presents and mutual promises, terms and conditions set forth herein, and intending to be legally bound hereby, the parties mutually agree as follows: 1. Except only as amended, modified and change as aforesaid, the parties ratify, confirm and reaffirm the Original Agreement, First Amendment, Second Amendment, Third Amendment, Fourth Amendment Fifth Amendment and Six Amendment as so amended, modified and changed. 0 1 S a The parties to this Addendum hereby agree that should the Agreement dated 4/7/04 (together with all Addendums) be terminated by either party neither party shall be obligated or liable for any reason to the other party with respect to this agreement or any other contractual obligation relevant to this transaction. IN WITNESS WHEREOF, the parties have executed this agreement by their duly authorized representatives as of the date first written above. SIGNED AND AGREED TO BY: David L. Metzler President ATTEST: ecr tary By: / V Sam 7uffe, BUYER: GROUP, INC. 4 . • 4 VERIFICATION • + 4 , I hereby verify that the information set forth in the foregoing document is true and correct to the best of my knowledge, information and belief. I understand that any false statements contained herein are subject to the penalties of 18 Pa. C.S. 4904, relating to unworn falsification to authorities. Date: 7--J-d3 Development Group, Inc. Samuel ?K? r ca ? ? w c? ?? 7 ? ? ._,. ? .. ?. ? ? ?' c? ? ? ' ? ? ? t ,, ?'iC?L! ? F?,'yy 1 ?' ?J °c? U _ r SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2008-04066 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CORNERSTONE DEVELOPMENT GROUP VS WATERFORD SQUARE ASSOCIATES IN R. Thomas Kline Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT WATERFORD SQUARE ASSOCIATES INC to wit: but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of LANCASTER County, Pennsylvania, to serve the within COMPLAINT & NOTICE On August 5th , 2008 , this office was in receipt of the attached return from LANCASTER Sheriff's Costs: So answeXs? Docketing 18.00 Out of County 9.00 Surcharge 10.00 02 R. Thomas Kline , Dep Lancaster Co 46.18 Sheriff of Cumberland County Postage 3.46 00 08/05/2008 BLAKEY YOST BUPP RAUSCH Sworn and subscribe to before me this day of A. D. SHERIFF'S OFFICE 50 NORTH DUKE STREET, P.O. BOX 83480, LANCASTER, PENNSYLVANIA 17608-3480 • (717) 299-8200 a 32atatafi g SHERIFF SERVICE PLEASE TYPE OR PEAT LEGIBLY. PROCESS RECEIPT, and AFFIDAVIT OF RETURN DO NOT CrMCH ANY Cam. 1. PLAINTIFF/S/ Cornerstone Development Group Inc 2. COURT NUMBER 08-4066 civil 3. DEFENDANT/S/ Waterford Square Associates Inc 4. TYPE OF WRIT OR COMPLAINT Notice and Complaint E H Cr] O SERVE 5. NAME OF INDIVIDUAL, COMPANY, CORPORATION, ETC., TO BE SERVED Cn Waterford Square Associates Inc to 6. ADDRESS (Street or RFD, Apartment No., City, Boro, Twp., State and P Co 111 Centerville Road Lancaster, PA 1?i06?) > AT I (Al 7. INDICATE UNUSUAL SERVICEPUTIZE ? OTHER En Now, July 14 20 , I, SHERIFF OF R COUNTY, PA., do hereby d putize the Sherriff of 0 Lancaster County to execute this Writ turn thereof g 'Ajaeglao to law. This deputation being made at the request and risk of the plaintiff. ?wFa?FF n S. SPECIAL INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: Please mail return of service to Cumberland County Sheriff. Thank you. N TE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN - Any deputy sheriff levying upon or attaching any property under in n writ may leave same without a watchman, in custody of whomever is found in possession, after notifying person of levy or attachment, without liability on the part of such deputy or the sheriff to any plaintiff herein for any loss, destruction or removal of any such property before sherrif's sale thereof. 9. SIGNATURE of ATTORNEY or other ORIGINATOR 10. TELEPHONE NUMBER 11. DATE 12. SEND NOTICE OF SERVICE COPY TO NAME AND ADDRESS BELOW: (This area must be completed If notice Is to be mailed) BLAKEY, YOST, BUPP & RAUSCH 17 EST MARKET ST. MACE BELOW FOR USE OF SHMFF ONLY -- DO NOT WRME BELOW TINS LME 13. 1 acknowledge receipt of the writ 1 NAME of Authorized LCSO Deputy or Clerk 114. Date Received 115. Expiration/Hearing Date or complaint as indicated above. f TAC'KTF MTrrTrMP. 717-39n-2309 7/15/OA R/A/nR 16. 1 hereby CERTIFY and RETURN that 10 have personally served, ? have legal evidence of service as shown in "Remarks:, ? have executed as shown in "Remarks", the writ or complaint described on the individual, company, corporation, etc., at the address shown above or on the individual, company, cor- poration, etc., at the address inserted below by handing a TRUE and ATTESTED COPY thereof. 17. NM hereby certify and return a NOT FOUND because I am unable to locate the individual, company, corporation, etc., named above. (See remarks below) 18. Name and title of individual served (if not shown above) (Relationship to Defendant) 19. ? No Service See Remarks Below (No. 30) 20. Address of where served (complete only if different than shown above) (Street or RFD, Apartment No., City, Boro, Twp. 21. Date of Service 22. Time State and Zip Code) AM PM EST EDST 23. ATTEMPTS ' to Mlles Dep. Int. Date Miles Dep. Int. Date Mlles Dep. Int. Date Mlles Dep. Int. Date Mlles Dep. Int. ?L P> 24. Advance Costs 25. Service Costs 26. Notary Cert. 27. Mileage/Postage/N.F. 28. Total Costs 29. COST DUE OR REFUND R O&IK-9 i5a 36 0 1 - ? 4 . -S t 103' CE1.1Z 30. REMARKS: 0,he.aeJ r7 1AX_ --0-_ <S ?S /4 / '50"h-f 9 S.T.A.: [?'Ql? )/(1 15 tQ ?s, C37 /) A)b P 6a Ar?e ?'06V ham ' h f 31. AFFIRMED and subscribed to before me this P-1 , 32. Signatui IA H.. M 9n Dep. Sheriff HARTMAN UNDERHILL & BRUBAKER LLP Mark E. Lovett, Esquire Attorney I.D. No. 41071 221 East Chestnut Street Lancaster, PA 17602 (717) 299-7254 / (717) 299-3160 (fax) 0 1G. IN4Z Attorneys for Defendant CORNERSTONE DEVELOPMENT IN THE COURT OF COMMON PLEAS GROUP, INC., OF CUMBERLAND COUNTY, Plaintiff, PENNSYLVANIA V. WATERFORD SQUARE ASSOCIATES, INC., Defendant. CIVIL ACTION - LAW & EQUITY No. 2008-4066 JURY TRIAL DEMANDED NOTICE TO PLEAD TO: Plaintiff You are hereby notified to file a written response to the enclosed Preliminary Objection within twenty (20) days from service hereof or a judgment may be entered against you. Date: \S G? By: TMAN UNDERHILL & BRUBAKER LLP Mark E. Attorney I.D. No. 41071 Attorneys for Defendant {oo525757.1)-4- ?- jo HARTMAN UNDERHILL & BRUBAKER LLP Mark E. Lovett, Esquire Attorney I.D. No. 41071 221 East Chestnut Street Attorneys for Defendant Lancaster, PA 17602 (717) 299-7254 / (717) 299-3160 (fax) CORNERSTONE DEVELOPMENT IN THE COURT OF COMMON PLEAS GROUP, INC., OF CUMBERLAND COUNTY, Plaintiff, PENNSYLVANIA V. WATERFORD SQUARE ASSOCIATES, INC., Defendant. CIVIL ACTION - LAW & EQUITY No. 2008-4066 : JURY TRIAL DEMANDED DEFENDANT'S PRELIMINARY OBJECTION TO PLAINTIFF'S COMPLAINT - COUNT II 1. Plaintiff brought this action against the Defendant to recover damages allegedly resulting from a commercial real estate transaction between the parties. (Plaintiffs Complaint, TT 3, 14, & 22). 2. In Count II, Plaintiff seeks reimbursement for "engineering and associated costs [spent] in attempting to develop the property for residential use." (Complaint ¶ 22). 3. Plaintiff claims that these costs were incurred in reliance on representations allegedly made by Defendant that were "intended to continue the contractual relationship." (Complaint ¶ 24). Preliminary Objection in the Nature of a Demurrer Pursuant to Pa. R.C.P. 1028(a)(4) 4. Plaintiffs claim in Count II fails as a matter of law because the evidence required to prove the oral representations allegedly made by the defendant is barred by the parol evidence rule. 5. The Agreement and subsequent Amendments between the parties contain an integration clause, which states, "This document is the entire and only agreement between the parties hereto, and it cancels and replaces any previous agreements between said parties ...." (Agreement ¶ 18; reaffirmed in each Amendment). 6. The representations in the Complaint that allegedly were made by the Defendant are not contained within the Agreement or its subsequent Amendments. 7. Plaintiff claims to have relied on the alleged representations in entering into and continuing with the Agreement, making Count II a fraud in the inducement claim. 8. Pennsylvania law bars parol evidence in fraud in the inducement cases when the Agreement at issue has an integration clause and covers the subject matter of the alleged fraud. WHEREFORE, Defendant, Waterford Square Associates, Inc., respectfully requests that the Court enter an Order dismissing Count II for legal insufficiency, plus such other relief as is permitted under the law and the facts. HARTMAN UNDERHILL & BRUBAKER LLP Date:', By: Mark E. Lovett, ire Attorney I.D. No. 41071 Attorneys for Defendant {00525757.1)-2- CERTIFICATE OF SERVICE I HEREBY CERTIFY that I am this day serving the foregoing Preliminary Objection upon the person and in the manner indicated below. Service by First Class Mail, addressed as follows: Carolyn J. Pugh, Esquire Blakey, Yost, Bupp & Rausch, LLP 17 East Market Street York; Pennsylvania 17401 Date: ARTMAN UNDERHILL RUBAKER LLP By: Mark E. Love it Attorney I.D. No. 41071 Attorneys for Defendant {00525757.1}-3- a 4 to , Jn IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION CORNERSTONE DEVELOPMENT GROUP, INC. Plaintiff V. WATERFORD SQUARE ASSOCIATES, INC., Defendant No. 2008-4066 Jury Trial Demanded Law and Equity PLAINTIFF'S ANSWER TO DEFENDANT'S PRELE IINARY OBEJECTIONS TO PLAINTIFF'S COMPLAINT - COUNT II 1. Admitted that the Complaint, being a writing, speaks for itself. 2. Admitted that the Complaint, being a writing, speaks for itself. 3. Admitted that the Complaint, being a writing, speaks for itself. 4. The averments of this paragraph are conclusions of law, and as such, no response is required. In the event a response is required, the averments are denied. 5. Admitted that the Complaint, being a writing, speaks for itself. 6. Admitted that the Agreement and Amendments, being writings, speak for themselves. 7. Admitted in part. Denied in part. Admitted insofar as Defendant's allegation contained in this paragraph references specific allegations in the Complaint, which, as a writing, speaks for itself. The rest of this paragraph is denied as a conclusion of law, to which no response is required. In the event a response is required, the averment is denied. 8. The averments of this paragraph are conclusions of law, and as such, no response is required. In the event a response is required, the averments are denied. WHEREFORE, Plaintiff, Cornerstone Development, Inc., respectfully requests this Honorable Court to enter deny Defendant, Waterford Square Associates, Preliminary Objection to Plaintiff's Complaint - Count I. Respectfully submitted, BLAKE X, YOST, B RAUSCH, LLP Dated: 10 b $ By: Carolyn J. Pugh, sq ' e Counsel for Plaintiff, Cornerstone Development Group, Inc. 17 East Market Street York, Pennsylvania 17401 Supreme Ct. I.D. #200972 Telephone (717) 845-3674 C •1% CERTIFICATE OF SERVICE I HEREBY CERTIFY that this day I am serving the foregoing Answer to Preliminary Objection upon the person and in the manner indicated below: Service by First Class Mail, addressed as follows: Mark E. Lovett, Esquire HARTMAN UNDERHILL & BRUBAKER, LLP 221 East Chestnut Street Lancaster, PA 17602 Dated: to 1? Carolyn J. sq Cornerstone Development Group, Inc. 17 East Market Street York, Pennsylvania 17401 Supreme Ct. I.D. #200972 Telephone (717) 845-3674 BLAKEY, YOST, RAUSCH, LLP By: Counsel for Plaintt r? c" ) s CP PRAECIPE FOR LISTING CASE FOR ARGUMENT 01?IGIIV4 (Mbe typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) CAPTION OF CASE (entire caption must be stated in full) CORNERSTONE DEVELOPMENT GROUP, INC. vs. WATERFORD SQUARE ASSOCIATES, INC. No. 2QQ8 . 4066 Term 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, tc.): ])efeneant`s Preliminary Objections to Plaintiff's Complaint - Count II. 2. Identify all counsel who will argue cases: (a) for plaintiffs: Carolyn J. Pugh, Esquire - Blakey, Yost, Bupp & Rausch, LLP 17 East Market Street, (Name and Address) York, PA 17401 Mark E. Lovett, Esquire, Hartman Underhill & Brubaker LLP 221 Eabst for hestnuttsStreet, Lancaster, PA 17602 (Name and Address) 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: December 3, 2008 Signature Mark E. Lovett, Esquire Print your name Waterford Square Associates, Inc. October 14, 2008 Attorney for Date: INSTRUCTIONS: 1. Two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case Is relisted. l CERTIFICATE OF SERVICE I HEREBY CERTIFY that I am this day serving the foregoing Praecipe for Listing Case for Argument upon the person and in the manner indicated below. Service by First Class Mail, addressed as follows: Carolyn J. Pugh, Esquire Blakey, Yost, Bupp & Rausch, LLP 17 East Market Street York, Pennsylvania 17401 HARTMAN UNDERHILL & BRUBAKER LLP Date: October 14, 2008 By: Mark E. Lovett, s *re Attorney I.D. No. 41071 Attorneys for Defendant 100525832.11 .? :ix' c? `- ' a°: c r?? ?? , -? _, ? F,. -? ? ? ,` N i' `° -? E E ? i . ?? .. ,, * J HARTMAN UNDERHILL & BRUBAKER LLP Mark E. Lovett, Esquire Attorney I.D. No. 41071 221 East Chestnut Street Lancaster, PA 17602 (717) 299-7254 / (717) 299-3160 (fax) ORIGINAL Attorneys for Defendant CORNERSTONE DEVELOPMENT IN THE COURT OF COMMON PLEAS GROUP, INC., OF CUMBERLAND COUNTY, Plaintiff, PENNSYLVANIA V. WATERFORD SQUARE ASSOCIATES, INC., Defendant. CIVIL ACTION - LAW & EQUITY NO. 2008-4066 JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY: Please mark the Preliminary Objections of Defendant Waterford Square Associates to Plaintiff's Complaint as withdrawn. Please remove the Preliminary Objections from the December 3, 2008 Argument List. HARTMAN UNDE L & BRUBAKER LLP Date: November 17, 2008 By: ar , Esqui Attorney I.D. No. 41071 Attorneys for Defendant 100532299.11- 1 l ?kA ? (y. e• r CERTIFICATE OF SERVICE I HEREBY CERTIFY that I am this day serving the foregoing Brief upon the person and in the manner indicated below. Service by First Class Mail, addressed as follows: Carolyn J. Pugh, Esquire Blakey, Yost, Bupp & Rausch, LLP 17 East Market Street York, Pennsylvania 17401 LLP Date: November 17, 2008 Attorney I.D. No. 4107T Attorneys for Defendant {00532299.1)-2- rya dMC IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION CORNERSTONE DEVELOPMENT GROUP, INC. Plaintiff V. WATERFORD SQUARE ASSOCIATES, INC., Defendant No. 20084066 Jury Trial Demanded Law and Equity PRAECIPE TO SATISFY THE DOCKET To the Prothonotary: Please mark the above docket settled and satisfied. Dated: of % 9 Respectfully submitted, BLAKEY, YOST, BUPPJ&P-AUSCH, LLP By: Carolyn J. Pugh, Esqui Counsel for Plaintiff, Cornerstone Development Group, 17 East Market Street York, Pennsylvania 17401 Supreme Ct. I.D. #200972 Telephone (717) 845-3674 C -mot r?i- ts' I