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HomeMy WebLinkAbout08-5524SCOT L. AND DONNA J. NEAL, IN THE COURT OF COMMON PLEAS Plaintiffs OF CUMBERLAND COUNTY, PENNSYLVANIA .. NO. o8 ROBERT E. AND AUDREY C. NEAL, Defendants 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 an 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, 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 2 Liberty Avenue Carlisle, Pa. 17013 717-249-3166 NOTICE TO DEFEND-8-8-08 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 SCOT L. AND DONNA J. NEAL, IN THE COURT OF COMMON PLEAS Plaintiffs OF CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 0 & . 552 y C? 74-, ROBERT E. AND AUDREY C. NEAL, Defendants COMPLAINT AND NOW, this?day of 2008, comes the Plaintiffs, Scot L. Neal and Donna J. Neal, by and through their attorney, the Allen E. Hench Law Office, and files this Complaint and in support thereof, avers as follows: 1. Plaintiff, Scot L. Neal, is an adult individual residing at 4 Heather Drive, Carlisle, PA 17013. 2. Plaintiff, Donna J. Neal, is an adult individual residing at 4 Heather Drive, Carlisle, PA 17013. 3. Defendant, Robert E. Neal, is an adult individual residing at 15 McBride Avenue, Carlisle, PA 17013. 4. Defendant, Audrey C. Neal, is an adult individual residing at 15 McBride Avenue, Carlisle, PA 17013. 5. Robert E. and Audrey C. Neal are husband and wife and are the parents of Scot L. Neal. 6. Scot L. Neal and Donna J. Neal are husband and wife. 7. On or about November, 2005, Plaintiffs purchased a mobile home located in a mobile home park having an address of 4 Heather Drive, Carlisle, PA. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567.3139 8. In order to finance the acquisition of the mobile home, Plaintiffs borrowed from the Defendants $11,967.60 and gave Defendants their note, at zero interest, for said amount. See Exhibit A attached hereto and made a part hereof. 9. In order to secure the note, Plaintiffs gave Defendants a first lien on the mobile home. FAX: (717) 567-3130 10. Commencing January 6, 2006, the Plaintiffs began monthly payments in the amount of $300.00 in compliance with the terms of the note. 11. Plaintiffs continued to make payments through August 2006, when Plaintiff Donna J. Neal became disabled. 12. Monthly payments resumed in May of 2008 when Plaintiff Donna J. Neal received social security disability. 13. During the period of time from August, 2006, through May 6, 2008, Defendants agreed to accept such payments as Plaintiffs could provide. 14. On or about June, 2007, Defendant Robert Neal entered into an oral agreement with his son, Plaintiff Scot L. Neal, pursuant to which Scot L. Neal agreed to complete a body and interior restoration of Defendant Robert E. Neal's Corvette. 15. In consideration for the body and interior restoration of the Corvette, Defendant Robert E. Neal promised to pay Scot L. Neal on a time and materials basis, $25 per hour, plus the cost of materials. 16. Defendant Robert E. Neal further agreed to apply the amounts due to his son, Plaintiff Scot L. Neal for work on the Corvette to the outstanding balance owed on the note issued in connection with the mobile home until the same was satisfied and pay to Scot L. Neal the remaining balance. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 17. Plaintiff Scot L. Neal expended 600 hours in restoring the body and interior of the Corvette, amounting to $15,000 for labor and $1,145 for parts and subcontracted work. 18. On January 1, 2008, Defendant Robert E. Neal credited $2,000.00 toward the mobile home loan for work Plaintiff Scot L. Neal performed on the Corvette. See Exhibit A attached hereto and made a part hereof. 19. On January 1, 2008, Defendant Robert E. Neal credited $100.00 toward the mobile home loan for work Plaintiff Scot L. Neal performed on the Corvette. See Exhibit B. attached hereto and made a part hereof. 20. On April 30, 2006, Defendant Robert E. Neal credited $180.00 toward the mobile home loan. See Exhibit B. 21. On April 30, 2006, Defendant Robert E. Neal credited another $180.00 toward the mobile home loan. See Exhibit B. FAX: (717) 567-3130 22. In the late fall of 2006, Defendant Audrey C. Neal entered into an oral agreement with Plaintiff Scot L. Neal, pursuant to which Scot L. Neal agreed to do certain remodeling on the Defendants' home located at 15 McBride Avenue, Carlisle, PA 17013. 23. The terms of the oral agreement with Defendant Audrey C. Neal were that she would cause the Mobile home note to be satisfied in exchange for Scot L. Neal's remodeling of the Defendants' home. 24. Plaintiff Scot L. Neal expended 80 hours in connection with the remodeling work. In addition, Plaintiff Scot L. Neal purchased $160.00 in materials and supplies and incorporated those materials and supplies into the work. 25. After Plaintiff Scot L. Neal had invested 80 hours in the remodeling and $160.00, in carrying out the contract, Defendant Audrey C. Neal wrongfully terminated the contract and failed to satisfy the note for the mobile home or pay Plaintiff, Scot L. Neal for the work performed. 26. Defendant Robert E. Neal contracted for $960.00 worth of mechanical work to be performed on his Corvette by BMS Performance. 27. Defendant Robert E. Neal did not have the money to pay for the repairs performed by BMS Performance and asked his son, Plaintiff Scot L. Neal, to call BMX Performance on his behalf. 28. BMS Performance agreed to release the vehicle upon Plaintiff Scot L. Neal's agreement to make payments on the account. 29. Plaintiff Scot L. Neal paid $150 on the account so that the car would be released. COUNT ONE BREACH OF CONTRACT - CORVETTE Scot L. Neil v. Robert E. Neal ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 30. The allegations in paragraphs 1 through 31 inclusive are incorporated herein as though fully set forth. 31. By virtue of the oral agreement to rebuild the Corvette, Robert E. Neal became indebted to Scot L. Neal in the amount of $15,000.00 for labor and $1,145.00 for materials and subcontracted work or a total of $16,145.00 which Robert E. Neal FAX: (717) 567-3130 agreed to credit against the note for the mobile home until the note was satisfied and then pay the balance to Scot L. Neal. 32. Plaintiff's Scot L. Neal and Donna J. Neal have made a total of $3,000.00 in payments on the note for the mobile home. 33. Robert E. Neal credited a total of $ 2460.00 against the mobile home debt for work Plaintiff Scot L. Neal performed on the Corvette. 34. The balance due on the note after deduction the payments made by the Plaintiffs and the Credits given by Robert E. Neal is $6,507.60. 35. The balance due from Defendant Robert E. Neal to Scot L. Neal for work done on the Corvette after deduction the amount credited to the mobile home note is $13,685.00. 36. The work on the Corvette was performed in a good and workmanlike manner and was at all times proper, satisfactory and consistent with and in compliance with the oral contract between the parties. 37. Defendant Robert E. Neal has accepted the work on the Corvette without objection. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 38. Defendant Robert E. Neal's failure to provide a credit against the balance of the mobile home note, namely $6,507.60 for the work done on the Corvette and to pay Plaintiff, Scot L. Neal the balance due, after such credit of $7,177.40 is a material breach of the agreement between the parties. 39. Plaintiff Scot L. Neal has demanded that Defendant Robert E. Neal provide the required credit and pay the balance due to Plaintiff Scot L. Neal, but Defendant Robert E. Neal has refused and continues to refuse to do so. 40. Defendant Robert E. Neal's breach of the contract has caused injury to the Plaintiff, Scot L. Neal in the amount of $13,685.00 WHEREFORE, Plaintiff, Scot L. Neal demands judgment against Defendant Robert E. Neal in the amount of $13,685.00, together with costs, interest and such other relief as the Court deems just and proper. FAX: (717) 567-3130 COUNT TWO Unjust Enrichment/Quasi Contact - Corvette 41. The allegations in paragraphs 1 through 45 inclusive are incorporated herein as though fully set forth. 42. Plaintiff, Scott L. Neal is employed as a body shop mechanic and as such is trained in the total refurbishment of old cars. 43. The work performed by Scott L. Neal on Defendant Robert E. Neal's Corvette has a fair market value of $27,000.00 for labor and $1,800.00 for materials. 44. By accepting the benefit of the work performed on the contract and failing to pay for same, Defendant Robert E. Neal has become unjustly enriched at the expense of the Plaintiff, Scot L. Neal. 45. Defendant, Robert E. Neal's actions constitute an unjust retention of a benefit to the loss of Plaintiff, Scot L. Neal and such actions are against the fundamental principles of justice and good conscience and are patently unfair. 46. As the direct and proximate result of Defendant, Robert E. Neal's unjust retention of the work performed on the Corvette the Plaintiff has suffered a loss of $28,800.00. WHEREFORE, Plaintiff, Scot L. Neal demands judgment against Defendant Robert E. Neal in the amount of $28,800.00, together with costs, interest and such other relief as the Court deems just and proper. COUNT THREE Breach of Contract - Remodeling Scot L. Neal v. Robert E. Neal and Audrey C. Neal ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 47. The allegations in paragraphs 1 through 51 inclusive are incorporated herein as though fully set forth. 48. Audrey C. Neal, wife of Robert E. Neal, acted as Robert E. Neal's agent in entering into the oral contract for the remodeling of Defendant's home at 15 McBride Avenue, Carlisle, PA 17013. FAX: (717) 567-3130 49. Plaintiff Scot L. Neal performed the remodeling work in a good and workmanlike manner and was at all times proper, satisfactory and consistent with and in compliance with the oral contract between the parties. 50. The Defendants accepted the remodeling work without objection. 51. Defendant's wrongfully stopped the remodeling work on the home. 52. Defendant's stopping of the work constitutes a material breach of the contract. 53. Defendants' breach of the contract has cause damage to the Plaintiff in the amount of $6,507.60. WHEREFORE, Plaintiff, Scot L. Neal demands judgment against Defendant Robert E. Neal in the amount of $6,507.60, together with costs, interest and such other relief as the Court deems just and proper. COUNT FOUR Unjust Enrichment/Quasi Contract Scot L. Neal v. Robert E. Neal and Audrey C. Neal ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 54. The allegations in paragraphs 1 through 58 inclusive are incorporated herein as though fully set forth. 55. Prior to Defendants' termination of the remodeling work, Plaintiff, Scot L. Neal worked 80 hours in remodeling the home and expended $160.00 in materials for the work. 56. By accepting the benefit of the remodeling work and failing to pay for same, Defendant Robert E. Neal and Audrey C. Neal have become unjustly enriched at the expense of the Plaintiff, Scot L. Neal. 57. Defendants, Robert E. Neal and Audrey C. Neal's actions constitute an unjust retention of a benefit to the loss of Plaintiff, Scot L. Neal and such actions are against the fundamental principles of justice and good conscience and are patently unfair. 58. As the direct and proximate result of Defendants, Robert E. Neal and Audrey C. Neal's unjust retention of the remodeling work performed by the Plaintiff has suffered a loss in an unliquidated amount. FAX: (717) 567-3130 WHEREFORE, Plaintiff, Scot L. Neal demands judgment against Defendants Robert E. Neal and Audrey C. Neal in an amount not exceeding mandatory arbitration, together with costs, interest and such other relief as the Court deems just and proper. COUNT FIVE Unjust Enrichment/Quasi Contract - Mechanical work on Corvette Scot L. Neal v. Robert E. Neal 59. The allegations in paragraphs 1 through 63 inclusive are incorporated herein as though fully set forth. 60. Plaintiff, Scot L. Neal paid $150.00 to BMS Performance for mechanical repairs to Defendant Robert E. Neal's Corvette. 61. The payment by Scot L. Neal was not intended as a gift, but rather a short term loan. 62. Scot L. Neal has requested that Robert E. Neal repay the loan but Robert E. Neal has refused and continues to refuse to repay the same. 63. By accepting the benefit of the loan and failing to pay for same, Defendant Robert E. Neal has become unjustly enriched at the expense of the Plaintiff, Scot L. Neal. 64. Defendant, Robert E. Neal's actions constitute an unjust retention of a benefit to the loss of Plaintiff, Scot L. Neal and such actions are against the fundamental principles of justice and good conscience and are patently unfair. 65. As the direct and proximate result of Defendant, Robert E. Neal's unjust failure to repay the loan Plaintiff has suffered a loss of $150.00. WHEREFORE, Plaintiff, Scot L. Neal demands judgment against Defendant Robert E. Neal in the amount of $150.00, together with costs, interest and such other relief as the Court deems just and proper. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567.3130 COUNT SIX Trespass to shed Scot L. Neal and Donna J. Neal v. Robert E. Neal and Audrey C. Neal 66. The allegations in paragraphs 1 through 70 inclusive are incorporated herein as though fully set forth. 67. Plaintiffs, Scot L. Neal and Donna J. Neal are the owners of a shed located next to their mobile home. 68. Defendant Robert E. Neal without license or permission cut out portions of the walls of shed to accommodate his motor cycle. 69. As the direct and proximate result of the Defendant's actions the Plaintiff's have incurred and will incur costs to repair the shed. WHEREFORE, Plaintiff, Scot L. Neal and Donna J. Neal demand judgment against Defendants Robert E. Neal in an amount not exceeding mandatory arbitration, together with costs, interest and such other relief as the Court deems just and proper. Respectfully submitted The Al > -Tench Law Office r , imothy N. Atherton, Esquire Attorney I. D. No. 19656 220 Market Street Newport, PA 17074 Phone: (717) 567-3139 Attorney for Plaintiffs Neal, Scot and Donna - Complaint - 2008 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 ?orrow,6r(a) Lender Scot Neal Robert 'E Neal na, J. ;Neal Audrey C. Neal Date Don 4 H;ea,Yher' Dr. 15 McBride Av. Ca.r'l.isfey _ Pa. 1 701 3 Carlisle, Pa. 1 701 3 ,?, rc , 4 ? Sri r Note - For value rece+y Voin t• Nou T9.eil $t.y?CiC ??13 s 'kk±F ?' tt? f9tQ,,.O{ .Y 7b. e 9 blence of prep NMI?$?inteTest th [ate a gb PQr year ':,.. aY f, „ ; h Y a- `? k.° „? , •'?= { •:;?,: ? z!an??ltz+'???a ? paldrrn F r M ,nr?l?sunr) . , PaymPay +b i kd ndi d lRsure.below'• LtateCh Is s ttr?l? L ` gylosi??bx(7elo . OT. ? ` ?` '? Fy ?' 1?hh?v(?tfie?fihec??tt7e?q?d?shon?ored? r nIS waniM?db1UndeT r ?.r nr Z _ { E .6eu t ?r - h ,This loan Iskse?ured(bys Secs r':- r' ment> i fie Home Pro'pe"Cty'?and ttie I'{??$`?' de`cribed° s;ka°`__ and ].+'" k b? Z a a ,r,se?' Ftt .4 ANNUA ` x ?} a The c3sf?f{m'credlt 9 `? ,, - ?.. + ta. ;.y?h '?• ' "' - edit l 4, t e 7rt f,on- as 'aiyearirate kr y,-? m?i?Flehelj ^; sC ?d?'?eyments 0 0.00 $11,9626,011;6,7.'60" MyF;ayment5oreduleWdl be: . Number?of{Payfients `` Amotrf3Qf+Payme_nts r' WheORayments are ©ue ,. 09 $300.0)0 12/0-6/105 on the 6ct` o eaci? rrl?nt'h.' gtjereri( r untdl clud3ng„02/06%09 1 $?6._716. 0 03?Q?./49 d ? n.of other' P?ro t' 'Seo?rlty I a? ,grvtn9 ? C?`'rst`iri ? ( ? . RedY)the tgoodsLo 4 tfi fGas?ed , t ,?. z r a u "n , Callatb ec n r w?u? ?. Aso secuf in ax r ' P're ?Q f r ? s + - ,r?tj?Yo d ?;o a ]tier pE to You., Signatures Iaq?eel?ots;x y91 nc?2gtthh?,agreeMerit hhave;reoelv?a°d n?oo ? ? ?t ,i,. ? g Y COSIONERS`r-?'E ,,,., -?[` l ..9?• ??C? ?Qr.,c 3 Signature Signature Signaiure . ,.Sid 're 1NitneSs_ A rxh'4bj NT ADDITIONAL TERMS OF THE SECURITY'AGREEM ADDITIDNAL.TERMS OF THE NOTE - h ' " _ ,. ations Tht's; security agreementseeures, tliis'loap hpoludrpg ur bli d S o signs-this --each Prrr .- w . means ,er n u?r„r I, "my t and each ether persom_ or • legal entity , i iilrpg,.guarars; - ., g e O ec all extense, renewals,,; re financings and^ rriodrlleatio3s) and any, other ' y r rse(r an, ,ur-,tie_I ?.no agrees to pati th1? n ti- rt, Petliei referred _to bedvin thissacurity 'debt?:I have With YOU now or later. Property ,desc cur" reans'the'Lend rr a d iu successors??and i" or ' u I agreement"will'not secure other such deb,f.=1i and`to the extent the , s . property. art f rhis:notn .utno{;,be enforced, such.Ya t ::alt-not affect the h n , 1.,consttt6jes, my principal residence; or p a , c t of this n to nv: -hanoa to this unto or an y,agr mont-secunng th_it t.ih`at ,provisior nri mr l n d b t `-Goods- ? . ' ,is-,douse"old This secOrity'agreement?',ORlast'uritrl;lt is ;diseharged;in_writing.,Fortbe t , ; , yynu a ir7>ani signe ,rte must I. in .:n ?.ppoints,yor an aj nt s nut seblau t-rv ha pr .Ln n, of ,20 Pa C 3.P A- sole-`puiposo or deterrgi6jpg the extent of a' purchase-°n,oney_ security feetion 5601 r -f (Chapter 56, Deedents -'Est t and Frducraries ' ,'interest ansing cinder thisisecunly agreement .. dr'r 'roVr rights, under this n_10; }-,j do so':for ;ode) By-e e s ag 1..'Pavments. on any, nonpurc ease monoy.:ban al-secured shy this, ' i ' , our sole?b`enefit - r Loen; aso,Mq agreement will not be. deemed?4o_-apply to'ltho'Purch lame and Location - tt name and adores r ii atni r n page 1 are my and _° Payments2on the Purchase Money Loan will be daemed,to?aDPlynfust - a ?th'r9n toCt a f ihat10an'tit ar y' ,tion l ? e 'bn r ch ;'art iaal;, naon.=and my" rTirinupalt residence -III pen idea you with at l• r d '' ? :p mP m ' ? l ? y)[w o n?o n lp,ur ase tb,the o Were'.-. _inowhicFi:.4hesitems gaLOnsin`--:'th _rder, esmonoy+obli p?rcha ence nrr,i[_a, , .: Cr esi yna prior•[rclianging, aa?t'r?-days nntire „ , , ., ?prpayment ma,'•prrl at thlsdoan:in:v>hole or;irCt tit any tim9jlf;.l , n acquired ?1 ec ryty?n?te, e?ttF _ e rrti?iatid,? Afapplicat n+(olt?thrs frn§is L, an,lote s o ne P rhase M n tu sU bll ma4e'oarh latern y mant nport u o y u is t he, )m,, jc i I th n, d, i,pail] j fuu nrmp ?-ra eau ed{-tofa q rear}y_ opert'in tell iF n ? s Mc nowals;-cd'nsolidaligns?end rehnemm?gs'f[il?suc Isury. The ant •rest at, 1 ether cKwgr- on thia Ir an :.ill neg. er e.reed ho hijhert rate or r.liar ie all-.sveT h y law. for tt is loan - - Propert Y The word-'Property ,las used hereinclude }slhproperty that n_ r at?desgirption s -' l ( °tige e tpegef i up e t thei oem e d li - InterestrRate - 11this sectrn is ?ia? F 1 tho -pot matunt?r t Maturit t ? ? ? a p Ny? agf -in ste ? ?, ? -used ,.the word PrOe'fty?•Igtn01t7dGs'`t..all?lzrpyfotyfitting'rihegeP?Ysl y hos ril rn the day afrar matunr; tpe loan Is yin deauripuur 1ProperfyraiSo fneang`iall'f6er)elrt4kt aj sjr e?fio n thc,des ri d P' q n t a fl'f'li it ard'..r a?uie:nt, otterde7auh on (I 1 ;- _ Property (tncudmgatis?p?ctge sjnsueanGe,?eJ),?t,{Laygt,?(om - others Int ras(,'drvrdend sto selrtsr6n4otipg r gf;tS),tr Ittals%mea'ne III h 111 Jo-fault on this.loan'end an a?jr err ant `securing this )etault - 1 propeYt that now or`lete nsrntt cheQ to vs a'part¢ol cr:[esults'rifgmith{e . f „ ajl supporytt 8 n bgatrons Pooeeds rri?Ipdesaapyt,ipg .Propett and . ,an i I pall t,, mat a`pati n nCin toll when;due or. x h z ' r ' ? acquired?on the;sale, (ease; Ilceexcha.,gel; or other-di$posrtlon!of`the of the Property; 'anii any rout ',claims arisin hts and er P e upon t e orability to reali rperforn once oP p iymo,nt, o rr°prosp a r, , g rop tY; any, rig antly rn paired. r'tjC is ;ignilir ro collections and distributions on account of the Property, , _ r r l any rub us aft, male au t on' this note or any security agreement, you nay exercise your remedies against any or alrof us. Ownership And`Duties Towarcl?Property - Unless a co-owner(s)of the Property signed °a third party agreement, i represent that I own-all the temedies - If I am in'default on this loan or any agreement-securing. this Property. I will defend the Property'agsinst.ariy'otherclaim I agreerto do may exercise you rrights provided by, law and this. agreement. I you ran whatever you. require to, perfect your. interest and keep your prlority;J will ; , also understand and•ragree`to the following; eleiate th'e due.date!oll unpard:pnncipal balance of the v t F rr y not do anything;to;harm your, positron. I will keep`the Property inamy possession (except If pledged and de)Ivergd , a » makin? it d ie In`.its entirety d charges e t la te -I c I will kaep it in-'good?-tepalriand*yse It only,?)or Its intended- to you). , n in r s plu a ri I,an , I will keep it at my' address unless we agree otherWlae in ses ur helorwthe rhedule 1 dojo dgto po . p {?UF .r r N e On?1fY rt--perlJ seruring t1 5 t on a ton. or?neva parer..' Ul'j ted to-pay this nd!rnore secunt a; d writing (or permrt.,the Propflrty_to I will, not tty, tto sell or.tran9feriithei.PrOpertyti' , } I. tnu ni ma loan of bot ?bin,returnrfnrkin[ ustng?any otForvr..,medV ; beCOLtle a,?tta hedR na e" yNlt?hrtUtyorrttepsG9?serit it Will +,1,or aygfpake_ a;ylaimtlcr ny'and'e l rnsGranc t eneli[s'or re(u ds qty II taK?sdae c}S arg s sf F? 1G s,#t1ey becorTl due 91`will s s :, a.., x a.,-mil .?.? fr llrcleflt aJ dt cooSe4n°q°?? ec se iymasrJti-i rou ;°r TITt,,io e try as a c y ruUMAM"i Laht t treat hr rent a a efau Fri 11I appon a Gin r s P rlfi violate an? 1?"wsr or - - r a , . t ,'^ ? r ti n ?. ?+' ? ,?,r{I n e r4Ae yFtb?f O[i ? ?rsgr. r,? r -.. ,. iostsOCollectjogndeAttomeysGFe?es'?zl qre? ?to pay tau 9 ) F? qy r urn urto oll?ct 'is d rt?cr;ea?zo onnon u?t LT hi n d 5 r s r` a If?eerto guy ce?oP the r.QQ ?rty?agamst the,nsks a yd , -'e o able tt et?a,s a Geri Curt costs '?5+'?'?,q?r;,rpy?e t o a5 n biy equlreInaLL'tPieol h y ?.. ;6a a?lsosall anoly-if ,G..flea'Pe ri nn?;nrka n??,jo t_fie(o Jrl}r,¢'`f .,., w IR„ ._ ?, 4Cpj??V , r?8bh r nr other rla`i riirirr rr he}45 hled?aoalnst ma ¢yi another rr ;g. r I - ?in ?gYrepai e{?leoetthej?rop9 i ?' e e s?dd 5tX6ovcrTth?6mnunts skull-;c F• thtsrloaFL s 1 e e' 2 )+ > v VE, Sae?e.,aanftflhLnatinn ,'Kunti e'r,tand.tYiatrm?!ohliua hon,tocp2 im'o rr s tfUt ?interes[,In imp, ir-?orxrereaset{a rt?p5 .unry r a i. i i h I ' 1 t ? ; ? 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Y t Y,OL MAY PFjEP Y? THIS'LOAN,IN;FULL OR P =NT .- 2 PREPX sale•.co disposition. I agree t' inform you in writing of any change, Wray , ; ' llJ PARTxATT'ANY TIME WITHOUT?P?19AL:TY w l address , we wi l , '3 NoticelOf,Deiault Except as provjded further belo Fllin I authorize oy.to iris a fins nein stote me t covartng the Pfeery: g-. y Q D 9P . not acczlerate the unpaid balance' Of tris..Cbntravt5?re,possess s dt . + l agree to oomi??y With)add facrfltafe your fgpueaSs in coons tjori Wf i tees" after?eve?send you, ri or frir,eelose on,any Prbpertti uht(f ' a ` ' ; obtar(iing posssessren of qr Control oyel thesPiopenyLr?trl ?hrs??3aCU)?mY 1 SSed W - t;rdea ri es ha of default and:'an curer penod '' l p ' ou hive u a otice if (1 i,: y tc, sond y ed b { q ir : n agreement is term mated A copyi c6thra(securr-tV apreemeht may be used ` - , o „ ; e o u r may ot ,es a'fI ancirg'ate te rc_n when allow,ed;by,,aw: abandoned? the: Manufactured Home aj21'.you. received two nco - P,5 in the.=''prior: one=gear period; dr (31 other extreme, clrcunistances exist'. date ?I ?/ / 122d No. 470.4a?30 • receved tram"'' ow, od xnoun ?? for payment ',& re 96,h O « 0 credit O dierJt # em&tnt d D-.. amount pWd ataoo io from to ?,..: ., sc1/52W5 date ob o. 470431 received fro oU amoun for payment ot t 1 o V T `'? ush O money O credit O check # v( or e dr card = from to 12,,00 sg star ' 1152W5 date I s 6 LL -6 No. 4704)37* received fro k amou for payment ,cash O or=Y O credit O check # Pmount due/ 19 /) c card `aT ;FIB 1 I amount paid I/ Rio -1d from - `Y F-? I,;l„T 3 date- 30 No. 470408 • received rr amoun o 1 for payment oF^^ yt O money order amount due Q ????- amount paid ?/ ? ?Q'tl balance O ? (o ' Q O credit O check # card Verification I verify that the statements made in the Complaint are true and correct to the best of my knowledge, information and belief and that this Complaint is brought in sincerity and truth for the reasons mentioned in the said Complaint. I understand that false statements are made subject to law as provided in Title 18 Pa.C.S. 4904 relating to unsworn falsifications to authorities. Scot L. Neal I'. Jay f a J. Neal ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 N w V 1 Xy ?M1t j ^ lJlJIJIJIJIJ?? i N [T7 Co co N 4'7 T'1 J J E2 1003 CASE NO: 2008-05524 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND NEAL SCOT L ET AL VS NEAL ROBERT E ET AL SHAWN HARRISON Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon NEAL ROBERT E the DEFENDANT , at 0835:00 HOURS, on the 20th day of September, 2008 at 15 MCBRIDE AVENUE CARLISLE, PA 17013 AUDREY NEAL, WIFE by handing to a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 5.00 Affidavit .59 Surcharge 10.00 .00 1010k forL?, 33.59 Sworn and Subscibed to before me this day of So Answers: R. Thomas Kline 09/22/2008 ALLEN HENCH By: puty Sheriff A.D. CASE NO: 2008-05524 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND NEAL SCOT L ET AL VS NEAL ROBERT E ET AL SHAWN HARRISON Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE NEAL AUDREY C was served upon the DEFENDANT , at 0835:00 HOURS, on the 20th day of September, 2008 at 15 MCBRIDE AVENUE CARLISLE, PA 17013 AUDREY NEAL by handing to a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 00 1oloP?G p 16.00 Sworn and Subscibed to before me this day of , So Answers: R. Thomas Kline 09/22/2008 ALLEN HENCH By. c /"-Deputlfr Sheriff A.D. .i. -, SCOT L. NEAL and : IN THE COURT OF COMMON PLEAS OF DONNA J. NEAL, husband and wife, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, VS. : NO: 08-5524 CIVIL TERM ROBERT E. NEAL and AUDREY C. NEAL, husband and wife, Defendants. PRAECIPE TO ENTER AN APPEARANCE TO CURTIS R. LONG, PROTHONATARY.• Please enter my appearance on behalf of the Plaintiffs, Robert E. Neal and Audrey C. Neal, of Carlisle, Cumberland County, Pennsylvania, in this matter. Respectfully submitted, IRWIN & McKNIGHT October 10, 2008 By: Matthew A (*(Knight, Esquire Supreme Court ID#: 93010 60 West Pomfret Street Carlisle, PA 17013 (717) 249-2353 Attorney for the Defendants, Robert E. Neal and Audrey C. Neal ?• -_U CERTIFICATE OF SERVICE I, the undersigned hereby certify that on this 10' day of October, 2008, a copy of the Praecipe to Enter an Appearance was served by first-class, postage prepaid United States mail in Carlisle, Pennsylvania upon the following: Timothy N. Atherton, Esquire The Allen E. Hench Law Office 220 Market Street Newport, PA 17074 IRWIN & McKNIGHT Matthew A. cKnight, Esquire Supreme Court I.D. No: 93010 60 West Pomfret Street Carlisle, PA 17013 (717) 249-2353 Attorney for Defendants r.,.> ?..:t '-' : t., ^R ? f ??-+? ??`+ ...++T ?J ?? -. i ? 1 -,-i } ?y "'?.. t SCOT L. AND DONNA J. NEAL Plaintiff, V. ROBERT E. AND AUDREY C. NEAL Defendants. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA No. 2008 - 5524 CIVIL TERM NOTICE YOU ARE HEREBY NOTIFIED that you must responsively plead to the within Defendant's New Matter and Counterclaim, pursuant to Pa. R.C.P. 1026 within twenty (20) days after service, or a default judgment may be entered against you. IRWIN & McKNIGHT Date: October 20, 2008 By: L Matthew A. McKnight, Esquire Supreme Court I.D. No: 93010 Marcus A. McKnight III, Esquire Supreme Court I.D. No: 25476 60 West Pomfret Street Carlisle, PA 17013 717-249-2353 Attorneys for Robert E. Neal and Audrey C. Neal r SCOT L. AND DONNA J. NEAL : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA V. ROBERT E. AND AUDREY C. NEAL Defendants. No. 2008 - 5524 CIVIL TERM ANSWER WITH NEW MATTER AND COUNTERCLAIM TO PLAINTIFF'S COMPLAINT AND NOW this 20th day of October, 2008, come the Defendants by and through their attorneys, Irwin & McKnight, and pursuant to respectfully file this Answer with New Matter and Counterclaim to the Plaintiffs' Complaint, and in support thereof aver as follows: 1. The averments of fact contained in paragraph one (1) of the Plaintiff's Complaint are admitted. 2. The averments of fact contained in paragraph two (2) are admitted. 3. The averments of fact contained in paragraph three (3) are admitted. 4. The averments of fact contained in paragraph four (4) are admitted. 5. The averments of fact contained in paragraph five (5) are admitted. 6. The averments of fact contained in paragraph six (6) are admitted. 7. The averments of fact contained in paragraph seven (7) are admitted. 8. The averments of fact contained in paragraph eight (8) are admitted. A fully executed copy of the note is attached hereto as Exhibit "A" and made a part hereof. 9. The averments of fact contained in paragraph nine (9) are admitted. 10. The averments contained in paragraph ten (10) are specifically denied and strict proof thereof is demanded at trial. 11. The averments contained in paragraph eleven (I1) are specifically denied and strict proof thereof is demanded at trial. 12. The averments contained in paragraph twelve (12) are denied as stated. It is admitted that Plaintiffs made a payment on May 14, 2008. It is further admitted that Plaintiffs made a second payment on June 9, 2008. Receipts of which are attached hereto as Exhibit "B" and made a part hereof. All inferences that any payments had been made prior to May 14, 2008 are specifically denied and strict proof thereof is demanded at trial. 13. The averments contained in paragraph thriteen (13) are denied as stated. It is admitted that Defendants were willing to accept late payments. The remaining averments in paragraph thirteen (13), are specifically denied and strict proof thereof is demanded at trial. By way of further answer, it is specifically denied that any payments were made prior to the May and June 2008 payments. 14. The averments contained in paragraph fourteen (14) are specifically denied and strict proof thereof is demanded at trial. 15. The averments contained in paragraph fifteen (15) are specifically denied and strict proof thereof is demanded at trial. 16. The averments contained in paragraph sixteen (16) are specifically denied and strict proof thereof is demanded at trial. 17. The averments contained in paragraph seventeen (17) are specifically denied and strict proof thereof is demanded at trial. 18. The averments contained in paragraph eighteen (18) are admitted in part and denied in part. It is admitted that Defendant Robert E. Neal agreed to credit Plaintiffs $2,000.00 off of their unsecured personal loan as a "thank you" for Scot L. Neal helping Robert E. Neal work on his corvette. It is specifically denied that Defendant Robert E. Neal agreed to credit $2,000.00 toward the mobile home loan and strict proof thereof is demanded at trial. A copy of the receipt for the $2,000.00 credit to the personal loan is attached hereto as Exhibit "C" and made a part hereof. 3 19. The averments contained in paragraph nineteen (19) are admitted in part and denied in part. It is admitted that Defendant Robert E. Neal credited $100.00 toward the Plaintiffs personal loan on January 1, 2008. The remaining averments in paragraph nineteen (19), are specifically denied and strict proof thereof is demanded at trial. 20. The averments contained in paragraph twenty (20) are admitted in part and denied in part. It is admitted that Defendant Robert E. Neal credited $180.00 toward the Plaintiffs personal loan. The remaining averments in paragraph twenty (20), are specifically denied and strict proof thereof is demanded at trial. 21. The averments contained in paragraph twenty-one (21) are admitted in part and denied in part. It is admitted that Defendant Robert E. Neal credited $180.00 toward the Plaintiffs personal loan. The remaining averments in paragraph twenty-one (21), are specifically denied and strict proof thereof is demanded at trial. 22. The averments of fact contained in paragraph twenty-two (22) are admitted. 23. The averments contained in paragraph twenty-three (23) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, the terms of the agreement were that if Scot L. Neal helped his parents, the Defendants, finish remodeling the house, then they would credit the Plaintiffs outstanding personal loan. 24. The averments contained in paragraph twenty-four (24) are admitted in part and denied in part. It is admitted that Plaintiff Scot L. Neal purchased $160.00 worth of flooring materials, for which his outstanding personal loan was credited. The remaining averments in paragraph twenty-four (24), are specifically denied and strict proof thereof is demanded at trial. 25. The averments contained in paragraph twenty-five (25) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, Plaintiff Scot L. Neal simply stopped coming to work on the project and refused to finish the work as promised. 26. The averments of fact contained in paragraph twenty-six (26) are admitted in part and denied in part. It is denied that the amount was $960.00. By way of further answer, the 4 actual amount was $1,101.73. All other averments of fact contained in paragraph twenty-six (26) are admitted. 27. The averments contained in paragraph twenty-seven (27) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, Plaintiff Scot L. Neal, independently and without Defendants knowledge, contacted BMS and volunteered to make regular installment payments on the account. Defendants were not aware of the arrangement until notified by Plaintiff Scot L. Neal and BMS. After three payments of $50.00 each, Plaintiff Scot L. Neal stopped making payments on the account, but did not notify Defendants. When notified of Plaintiff Scot L. Neal's refusal to make further payments by BMS, Defendants resumed making payments on the account. 28. The averments contained in paragraph twenty-eight (28) are specifically denied and strict proof thereof is demanded at trial. 29. The averments contained in paragraph twenty-nine (29) are admitted in part and denied in part. It is admitted that Plaintiff Scot L. Neal voluntarily made payments on the account totaling $150.00. All other averments of fact contained in paragraph twenty-nine (29) are specifically denied and strict proof thereof is demanded at trial. COUNT I BREACH OF CONTRACT - CORVETTE 30. The averments contained in the Defendants' Answers in paragraphs one (1) through twenty-nine (29) above are hereby incorporated by reference as if fully set forth below. 31. The averments contained in paragraph thirty-one (31) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 32. The averments contained in paragraph thirty-two (32) are specifically denied and strict proof thereof is demanded at trial. 5 33. The averments contained in paragraph thirty-three (33) are specifically denied and strict proof thereof is demanded at trial. 34. The averments contained in paragraph thirty-four (34) are specifically denied and strict proof thereof is demanded at trial. 35. The averments contained in paragraph thirty-five (35) are specifically denied and strict proof thereof is demanded at trial. 36. The averments contained in paragraph thirty-six (36) are specifically denied and strict proof thereof is demanded at trial. 37. The averments contained in paragraph thirty-seven (37) are specifically denied and strict proof thereof is demanded at trial. 38. The averments contained in paragraph thirty-eight (38) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 39. The averments contained in paragraph thirty-nine (39) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 40. The averments contained in paragraph forty (40) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully request that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. 6 COUNT II UNJUST ENRICHMENT/QUASI CONTRACT - CORVETTE 41. The averments contained in the Defendants' Answers in paragraphs one (1) through forty (40) above are hereby incorporated by reference as if fully set forth below. 42. After reasonable investigation, Defendants arfe without knowledge or information sufficient to form a belief as to the truth of the averments contained in paragraph forty-two (42), therefore they are specifically denied and strict proof thereof is demanded at trial. 43. The averments contained in paragraph forty-three (43) are specifically denied and strict proof thereof is demanded at trial. 44. The averments contained in paragraph forty-four (44) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 45. The averments contained in paragraph forty-five (45) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 46. The averments contained in paragraph forty-six (46) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully requests that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. 7 COUNT III BREACH OF CONTRACT - REMODELING 47. The averments contained in the Defendant's Answers in paragraphs one (1) through forty-six (46) above are hereby incorporated by reference as if fully set forth below. 48. The averments contained in paragraph forty-eight (48) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 49. The averments contained in paragraph forty-nine (49) are specifically denied and strict proof thereof is demanded at trial. 50. The averments contained in paragraph fifty (50) are specifically denied and strict proof thereof is demanded at trial. 51. The averments contained in paragraph fifty-one (51) are specifically denied and strict proof thereof is demanded at trial. 52. The averments contained in paragraph fifty-two (52) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 53. The averments contained in paragraph fifty-three (53) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully requests that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. 8 COUNT IV UNJUST ENRICHMENT/QUASI CONTRACT 54. The averments contained in the Defendants' Answers in paragraphs one (1) through fifty-four (54) above are hereby incorporated by reference as if fully set forth below. 55. The averments contained in paragraph fifty-five (55) are admitted in part and denied in part. It is admitted that Plaintiff Scot L. Neal expended 160.00 on flooring materials. The remaining averments in paragraph fifty-five (55), are specifically denied and strict proof thereof is demanded at trial. 56. The averments contained in paragraph fifty-six (56) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 57. The averments contained in paragraph fifty-seven (57) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 58. The averments contained in paragraph fifty-seven (57) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully requests that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. 9 COUNT V UNJUST ENRICHMENT/QUASI CONTRACT- MECHANICAL WORK ON CORVETTE 59. The averments contained in the Defendants' Answers in paragraphs one (1) through fifty-nine (59) above are hereby incorporated by reference as if fully set forth below. 60. The averments contained in paragraph sixty (60) are admitted. 61. The averments contained in paragraph sixty-one (61) are specifically denied and strict proof thereof is demanded at trial. 62. The averments contained in paragraph fifty (50) are specifically denied and strict proof thereof is demanded at trial. 63. The averments contained in paragraph sixty-three (63) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 64. The averments contained in paragraph sixty-four (64) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 65. The averments contained in paragraph sixty-five (65) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully requests that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. 10 r COUNT VI TRESPASS TO SHED 66. The averments contained in the Defendants' Answers in paragraphs one (1) through sixty-six (66) above are hereby incorporated by reference as if fully set forth below 67. The averments contained in paragraph sixty-seven (67) are admitted. 68. The averments contained in paragraph sixty-eight (68) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, it was Plaintiff Scot L. Neal's own suggestion to cut portions of the shed wall to accommodate the motor cycle, and Plaintiff Scot L. Neal assisted with the work. 69. The averments contained in paragraph sixty-nine (69) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendants respectfully requests that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. NEW MATTER 70. The averments of fact contained in Defendants' Answers above are hereby incorporated by reference as if fully set forth below. 71. For the last several years, Defendant parents would periodically lend Plaintiff son and daughter-in-law money for various household needs. 72. These unsecured loans were given interest free by Defendants with the explicit agreement by Plaintiffs that they would provide regular periodic repayment. 11 r 73. Defendants would continue to provide unsecured loans from time to time despite the fact that Plaintiffs had not yet fully repaid loans already given. 74. On occasion Defendants would agree to accept services in lieu of payment for an agreed upon cash value that would be applied to the outstanding unsecured loan balance. 75. In November of 2005, Defendants agreed to assist Plaintiffs in the purchase of a mobile home. 76. Defendants provided Plaintiffs $11,967.60, which was the purchase price of the mobile home, in exchange for a security agreement naming Defendants as first lien holders on the 1988 Zimmer mobile home located at 4 Heather Drive, Carlisle, Pennsylvania 17013. A copy of the security agreement has previously been attached hereto as Exhibit "A" and made a part hereof. 77. In addition to the purchase price found in the security agreement, Defendants paid for the Plaintiffs initial fuel bill as well as the previous owners' back lot rent, taxes and trash bill that the mobile home park required to be satisfied prior to purchase. 78. Though the payment of these additional items were not included in the security agreement, Plaintiffs agreed to treat the payment for the items as additional amounts owed on the mobile home. 79. Per the terms of the security agreement, payments of $300.00 per month were to begin on December 6, 2005. 80. Because Plaintiffs already had outstanding unsecured loans with the Defendants, and because there was an ongoing expectation that Plaintiffs may continue to seek further unsecured loans from time to time, it was orally agreed that Plaintiffs' payments toward the mobile home would be made separately from, but concurrently with, payments on the unsecured loans. 81. From December 6, 2005 until May 14, 2008, Defendants received zero payments toward the repayment of the mobile home. 12 r 82. Defendants did not seek to enforce the terms of the security agreement during that time because Plaintiffs were attempting to make periodic payments on the unsecured loans. 83. The only payments made for the mobile home totaled $600.00 and were for the months of May and June, 2008. 84. The last payment made on the unsecured loans was on February 9, 2008. 85. On or about early 2007, Plaintiff Scot L. Neal suggested that he and Defendant Robert E. Neal work on Defendant's 1981 Corvette as a father-son project. 86. On or about the summer of 2007, Plaintiff Scot L. Neal and Defendant Robert E. Neal received permission from the garage where Plaintiff was then employed to keep the vehicle at the garage and work on it there. 87. For several months the vehicle sat at the garage with no one working on it. 88. When the vehicle was worked on, Plaintiff Scot L. Neal and Defendant Robert E. Neal worked on it together. 89. On or about early 2008, Plaintiff Scot L. Neal was fired from his job at the garage. Most of the work on the vehicle was completed in a day or two after Plaintiff had been terminated because the vehicle was no longer allowed to remain at the garage. 90. Work that Plaintiff Scot L. Neal helped with included mostly of sanding, painting and some interior work. 91. Most of the work Plaintiff Scot L. Neal performed on the vehicle was of poor quality and done in an unworkmanlike manner. 92. Despite the lack of quality work, Defendant Robert E. Neal offered to credit Plaintiff Scot L. Neal $2,000.00 toward the payment of Plaintiffs' unsecured loans as a thank- you for helping with the work. 93. In order to finish restoring the vehicle, including fixing much of the work Plaintiff Scot L. Neal performed on the vehicle, Defendant Robert E. Neal will either need to finish the work himself or hire someone to do it for him. 13 r 94. In 2006, Defendant Audrey C. Neal offered to allow Plaintiff Scot L. Neal to help Defendants remodel some of the interior of their home at 15 McBride Avenue, Carlisle, Pennsylvania, 17013. 95. In exchange for remodeling help, Defendant Audrey C. Neal offered to credit Plaintiffs toward the repayment of the unsecured loans. 96. Defendant Audrey C. Neal made this offer after she had recently provided Plaintiffs a small loan for Christmas presents. 97. Plaintiff Scot L. Neal rarely took advantage of the offer. He would often come to Defendants home, supposedly to do remodeling work, but simply visited with family before leaving without any work having been done. 98. When Plaintiff Scot L. Neal did work, he was primarily helping Defendant Robert E. Neal with flooring and drywall work. 99. Plaintiff Scot L. Neal's work was of such poor quality, and done in such an unworkmanlike manner, that the portions of the home he worked on will need to be redone, either by Defendant Robert E. Neal or an independent contractor. 100. Despite the poor quality of the work, Defendants did not ask Plaintiff Scot L. Neal to stop helping with the work because Plaintiff is their son. Plaintiff, however, stopped offering to help with the remodeling and refused to do anymore work. 101. Further, Defendants did apply a credit to the Plaintiffs outstanding unsecured loans for the actual value of the work and flooring materials that Plaintiff Scot L. Neal provided. 102. In 2006, Defendant Robert E. Neal contracted with BMS to do mechanical work on his 1981 Corvette. 103. After the work was completed, BMS released the vehicle to Defendant Robert E. Neal, and the parties worked out a payment arrangement for the work done. 104. Upon information and belief, sometime later Plaintiff Scot. L. Neal contacted BMS and voluntarily offered to make payments on the outstanding bill. 14 105. Upon information and belief, Plaintiff agreed to make weekly payments of $100.00 toward Defendant's outstanding balance. 106. Defendant Robert E. Neal was not made aware of the arrangement until contacted by Plaintiff Scot L. Neal and BMS. 107. Upon information and belief, Plaintiff Scot L. Neal made only three sporadic payments to BMS of $50.00 each. 108. Defendant Robert E. Neal was not made aware of Plaintiff Scot L. Neal's failure to make the agreed upon payments until he saw the proprietor of BMS confront Plaintiff about the situation. 109. Once Defendant Robert E. Neal became aware of the fact that Plaintiff Scot L. Neal had failed to make the payments as offered, Defendant resumed making payments on the outstanding bill. 110. Plaintiffs gave Defendant Robert E. Neal permission to store his motorcycle in their shed located at 4 Heather Drive, Carlisle, Pennsylvania 17013. 111. In order to facilitate moving the motorcycle in and out of the shed, Plaintiff Scot L. Neal suggested that they remove a portion of the shed wall to provide more accessibility. 112. Plaintiff Scot L. Neal and Defendant Robert E. Neal worked together to remove a portion of the shed wall. 113. On or about July, 2008, Defendants received notice that mobile home at 4 Heather Drive, Carlisle, Pennsylvania 17013 was listed for upset sale for failure to pay taxes. 114. On or about August 1, 2008, Defendants contacted the Cumberland County Tax Claim Bureau and set up a payment arrangement to satisfy the back taxes owed on the mobile home. 115. On or about August 28, 2008 Defendants had paid $388.00 worth of back taxes. 116. On or about July, 2008, Defendants discovered that Plaintiffs had allowed the insurance policy covering the mobile home to lapse. 15 117. Plaintiffs failed to provide Defendants proof of a new insurance policy. 118. On or about August 1, 2008, Defendants paid $365.00 for a new insurance policy to insure the mobile home. 119. Plaintiffs' Complaint therefore fails to state claims or causes of action upon which relief can be granted. 120. All or a portion of Plaintiffs' claims are attributable to persons and/or causes other than the named Defendants. WHEREFORE, Defendants respectfully request that this Honorable Court enter a judgment in their favor and against Plaintiffs in this matter. COUNTERCLAIM BREACH OF SECURITY AGREEMENT 121. The averments of fact contained in the Answers and New Matter to the Complaint are hereby incorporated by reference and are made a part of this Counterclaim. 122. Defendants are the holders of a first lien on the mobile home located at 4 Heather Drive, Carlisle, Pennsylvania 17013, by virtue of a security agreement signed by Plaintiffs, dated November 06, 2005. A copy of which has already been attached hereto as Exhibit "A" and made a part hereof. 123. Plaintiffs have defaulted on the terms of the security agreement by being more than two years behind in scheduled payments. 124. Per the terms of the agreement, Defendants have the right to accelerate the due date of any unpaid principle upon Plaintiffs' default. 16 125. Per the terms of the agreement, Defendants are also entitled to late fees in the amount of $30.00 per month for a total of $990.00. 126. Further, Defendants have the right to seek possession of the mobile home upon Plaintiffs' default. 127. Defendants also have the right to pay taxes, other charges and insurance if Plaintiffs fail to do so. 128. Defendants further have a right to recover costs and reasonable attorney's fees. 129. A notice of intent to foreclose mortgage dated September 29, 2008, was provided to Plaintiffs. A copy of the notice is attached hereto as Exhibit "D" and is made a part hereof. 130. Despite repeated requests to perform their obligations under the security agreement, Plaintiffs have failed to cure their default, and by their actions in filing the above captioned complaint, show that they are unlikely to do so in the future. WHEREFORE, Defendants demand judgment against Plaintiffs, Scot L. and Donna J Neal, for exclusive possession of the mobile home at 4 Heather Drive, Carlisle, Pennsylvania 17013, or in the alternative, judgment in the amount of Thirteen Thousand Seven Hundred Ten and 60/100 ($13,710.60) Dollars, together with costs, interest, reasonable attorneys fees and any other relief this Court deems just. Respectfully Submitted, B & McKNIGHT IRWIN/? ".l !?,?_... Y: Matthew A. c ight, Esquire Supreme Court ID # 93010 Marcus A. McKnight III, Esquire Supreme Court ID # 25476 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Dated: October 20, 2008 Attorneys for Robert E. Neal and Audrey C. Neal 17 VERIFICATION The foregoing document is based upon information which has been gathered by our counsel and ourselves in the preparation of this action. We have read the statements made in this document and they are true and correct to the best of our knowledge, information and belief. We understand that false statements herein made are subject to the penalties of 18 Pa.C.S.A. Section 4904, relating to unsworn falsification to authorities. RO ERT E. NEAL c. -AVDREY C. N L Date: EXHIBIT "A" Borrower(s) Lender Scot L. Neal Robert E Neal Donna J. Neal Audrey C. Neal Date 11106/05 4 Heather Dr. 15 McBride Av. Carlisle, Pa. 17013 Carlisle, Pa. 17013 Note - For value received, I promise to pay to you, or your order, at your address above, the principal sum of : E-1 even Thousand Nine Hundred Sixty Seven & 60/100******************* Dollars $11,967.60 plus interest from ? 0/06/05 at the rate of 0 % per year until 03/06/09 ? Post Maturity Interest - After maturity the unpaid balance of principal will earn interest at the rate of % per year. ? Additional Finance Charge - I also agree to pay a nonrefundable fee of $ and it will be ? paid in cash. ? withheld from the proceeds. (If this fee is withheld from the proceeds, the amount is included in the principal sum.) Payments - The number, amount, and due dates for scheduled payments are disclosed in the Truth in Lending disclosure below. Late Charge - If there is a late charge for this transaction, it will be disclosed in the Truth In Lending disclosure below. The Purpose Of This Loan Is - Purchase of Mobile Home ? Bad Check Charge - I agree to pay a charge of $ if I make a payment with a check that is dishonored. This Loan Made Under- The Laws of the Commonwealth of Pennsylvania This loan is secured by Security Agreement , dated 11/06/05 ® Security Agreement - I give you a security interest in the Property described below. The rights I am giving you in this Property and the obligations this agreement secures are defined on page 2 of this agreement. 1 certain Mobile Home Located at 4 Heather Dr., Carlisle, Pa. Said Mobile Home is more particularly described as a 1988 model, manufactured by ZIMMER. Its Serial # is ZZN4483. ANNUAL PERCENTAGE RATE FINANCE CHARGE AMOUNT FINANCED TOTAL OF PAYMENTS The cost of my credit The dollar amount the The amount of credit The amount I will have as a yearly rate credit will cost me. provided to me or on paid when I have made all my behalf. scheduled payments. 0 % 0.00 $11,967.60 $11,967.60 My Payment Schedule will be: Number of Payments: Amount of Payments: When Payments are Due: 39 $300.00 12/06/05 & on the 6th of each month thereafter until & including 02/06/09 1 $267.60 03/06/09 Security - I am giving a security interest in: ? (description of other property) n the goods or property being purchased. ? Collateral securing other loans with you may also secure this loan. ] Late Charge - I agree to pay a late charge equal to 10 % of the unpaid portion of an installment not paid within 3 days after it is due, or $ 30.00 whichever is greater Prepayment - If I pay off this note early, I will not have to pay a penalty, © If I pay off this note early, I will not be entitled to a refund of part of the finance charge. ® Assumption - Someone buying the property securing this loan ? may ® cannot assume this loan on the original terms. I can see my contract documents for any additional information about nonpayment, default, and any required repayment before scheduled date, and prepayment refunds and penalties. ® H you do not meet your contract obligations, you may lose your. Mnh; 1 P AnmP , ® Property Insurance - Property insurance is required. I may obtain property insurance from anyone I want that is acceptable to you. Signatures - I agree to the terms on page 1 and 2 of this agreement. 1 have received a copy of is document on today's date. COST NE ESP TE NOTICE BEFORE SIGNING. Signature _ Signature Witness Signature Signature Witness " ADDITIONAL TERMS OF THE NOTE jeffnitions - "I," "me" or "my" means each Borrower who signs this note and each other person or legal entity lincluding guarantors, epdorsers, and suretiesl who agrees to pay this note (together referred to as "us"). "You" or "your" means the Lender and its successors and assigns. If any part of this note cannot be enforced, such fact will not affect the rest of this note. Any change to this note or any agreement securing this note must be in writing and signed by you and me. Any provision that appoints you as an agent is not subject to the provisions of 20 Pa.C.S.A. Section 5601 et seq. (Chapter 56; Decedents, Estates and Fiduciaries Code). By exercising any of your rights under this note, you do so for your sole benefit. Name and Location - My name and address indicated on page 1 are my exact legal name and my principal residence. I will provide you with at least 30 days notice prior to changing my name or principal residence. Prepayment - I may prepay this loan in whole or in part at any time. If I prepay in part, I must still make each later payment in the original amount as it becomes due until this note is paid in full. Usury - The interest rate and other charges on this loan will never exceed the highest rate or charge allowed by law for this loan. Post Maturity Interest Rate - If this section is checked, the post maturity rate will begin to apply on the day after maturity, or, if the loan is in default and we accelerate after default, on such date. Default - i will be in default on this loan and any agreement securing this loan if: 1. 1 fail to make a payment in full when due; or 2. Your prospect of payment. performance, or ability to realize upon the property is significantly impaired. If any of us are in default on this note or any security agreement, you may exercise your remedies against any or all of us. Remedies - If I am in default on this loan or any agreement securing this loan, you may exercise your rights provided by law and this agreement. I also understand and agree to the following: 1. You may accelerate the due date of the unpaid principal balance of the loan, plus accrued interest and charges, making it due in its entirety before the scheduled due date. 2. You may realize on any property securing this transaction. 3. You may demand more security or new parties obligated to pay this loan (or both) in return for not using any other remedy. 4. You may make a claim for any and all insurance benefits or refunds that may be available. If i default and you choose not to exercise a remedy, you do not lose the right to treat the event as a default if it happens again. Costs Of Collection And Attorney's Fees - I agree to pay you the costs you incur to collect this debt or realize on any security. This includes your reasonable attorney's fees and court costs. This provision also shall apply if I file a petition or any other claim for relief under any bankruptcy rule or law of the United States, or if such petition or other claim for relief is filed against me by another. Independent Obligation - I understand that my obligation to pay this loan is independent of the obligation of any other person who has also agreed to pay it. You may, without notice, release me or any of us, give up any right you may have against any of us, extend new credit to any of us, or renew or change this note one or more times and for any term, and I will still be obligated to pay this loan. You may, without notice, fail to perfect your security interest in, impair, or release any security and I will still be obligated to pay this loan. Waiver - I waive (to the extent permitted by law) demand, presentment, protest, notice of dishonor and notice of protest. Financial Statements - I will give you any financial statements or information that you feel is necessary. All financial statements and information I give you will be correct and complete. Purchase Money Loan - If this is a Purchase Money Loan, you may include the name of the seller on the check or draft for this loan. For Federal Usury Preemption for Manufactured Home Loans: The following terms apply if, on page 1 of this form, the Federal Usury Preemption is cited as the authority for this loan. These terms will supersede anything to the contrary in this form: I. The late charge, if there is one, will not apply to the final scheduled installment. 2. PREPAYMENT - YOU MAY PREPAY THIS LOAN IN FULL OR IN PART AT ANY TIME WITHOUT PENALTY. 3. Notice Of Default - Except as provided further below, we will not accelerate the unpaid balance of this Contract, repossess or foreclose on any Property until after we send you a notice of default and any cure period it describes has passed. We may not be required to send you a notice if 0) you have abandoned the Manufactured Home, (2) you received two notices in the prior one-year period, or (3) other extreme circumstances exist. ADDITIONAL TERMS OF THE SECURITY AGREEMENT Secured Obligations - This security agreement secures this loan (including all extensions, renewals, refinancings and modifications) and any other debt I have with you now or later. Property described in this security agreement will not secure other such debts if and to the extent the property: 1. constitutes my principal residence; or 2. is household goods. This security agreement will last until it is discharged in writing. For the sole purpose of determining the extent of a purchase money security interest arising under this security agreement: 1. Payments on any nonpurchase money loan also secured by this agreement will not be deemed to apply to the Purchase Money Loan; and 2. Payments on the Purchase Money Loan will be deemed to apply first to the nonpurchase money portion of the loan, if any, and then to the purchase money obligations in the order in which the items were acquired. No security interest will be terminated by application of this formula. "Purchase Money Loan" means any loan the proceeds of which, in whole or in part, are used to acquire any property securing the loan and all extensions, renewals, consolidations and refinancings of such loan. Property - The word "Property," as used here, includes all property that is listed in the security agreement on page t. If a general description is used, the word Property includes all my property fitting the general description. Property also means all benefits that arise from the described Property lincluding all proceeds, insurance benefits, payments from others, interest, dividends, stock splits and voting rights). It also means property that now or later is attached to, is a part of, or results from the Property, and all supporting obligations. "Proceeds" includes anything acquired on the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising out of the Property; and any collections and distributions on account of the Property. Ownership And Duties Toward Property - Unless a co-ownerls) of the Property signed a third party agreement, I represent that I own all the Property. I will defend the Property against any other claim. I agree to do whatever you require to perfect your interest and keep your priority. I will not do anything to harm your position. I will keep the Property in my possession (except if pledged and delivered to you). I will keep it in good repair and use it only for its intended purposes. I will keep it at my address unless we agree otherwise in writing. I will not try to sell or transfer the Property, or permit the Property to become attached to any real estate, without your written consent. I will pay all taxes and charges on the Property as they become due. I will inform you of any loss or damage to the Property. You have the right of reasonable access in order to inspect the Property. I will not use the Property for a purpose that will violate any laws or subject the Property to forfeiture or seizure. Insurance - I agree to buy insurance on the Property against the risks and for the amounts you reasonably require. In addition: i. 1 will name you as loss payee on any such policy. 2. You may require added security on this loan if you permit any insurance proceeds to be used to repair or replace the Property. 3. If the insurance proceeds do not cover the amounts 1 still owe you, I will pay the difference. 4. 1 will keep the insurance until all debts secured by this agreement are paid. If 1 do not buy, maintain, and arrange to have you named as loss payee, as agreed above, I understand and agree: i. You may, but are not required to, purchase insurance to protect your interest in the Property. 2. The insurance you buy may be from an agent or company I might not choose. 3. The insurance will not cover my equity in the Property. 4. The premium you pay may be substantially higher than the premium 1 might be required to pay for the insurance I have agreed to buy on this note. Default And Remedies - If I am in default, in addition to the remedies listed in the note portion of this document, you may (subject to any applicable notice and cure period): 1. Pay taxes or other charges, or purchase any required insurance, if I fail to do these things (but you are not required to do so). You may add the amount you pay to this loan and accrue interest on that amount at the interest rate in effect on this note until paid in full; 2. Require me to gather the Property and any related records and make it available to you in a reasonable fashion; 3. Use any other remedy allowed by law. I agree that when you must give notice to me of your intended sale or disposition of the Property, the notice is reasonable if it is sent to me at my last known address by first class mail 10 days before the intended safe or disposition. i agree to inform you in writing of any change in my address. Filing - I authorize you to file a financing statement covering the Property. I agree to comply with and facilitate your requests in connection with obtaining possession of or control over the Property until this security agreement is terminated. A copy of this security agreement may be used as a financing statement when allowed by law. !bane 2 or 21 EXHIBIT "B" a 7 S .r date _?- -- - -' ?. reeeivrd fu, _- --- -- -.-? s amount."-L.1 d ?. for payment ?cach O money c: edit order C.ud 0 amount due +! r r}r t') amount paid fr_ balance =18 ?m_ date No. received froi ! 1 /,) n 1 ?1 1 amount_?kk C?' t) for payment of cash oriey credit rhFd # 0 om rder 0 card - amount clue 7 amount pa id balance 1 from ,jgnatui date received from- for payment of O cash No. 470443 O money O credit order card 0 check # amount due amount paid balance from _ signature to 11 date 1 V o. 4 1 0 3 received from amount for payment of O cash O money O credit O order card check amount due amount paid from to • balance signature SC1152WS 1 EXHIBIT "C" a w ?? i ?i ISO d eI / o*q -A / ?l/0? r Nom. 474429 received fro'm` 4IDt 1 LQ OX _,0 Q amoun IV- -7 for payment o e90 t>y cash O money O credit O check # Iv order card amount due Vio amount paid /J © From _ ro balance 7 7 ' signatur jMb rits)we dated . ; ! ?. iy rut ?k 1 received from i e for payment of = `??07v a-ish O money O credit O check # order card amount due 7 ? ? f amount paid balance J?? to O >gnatur (J?7 , ;C1152WS ..i IJrJ 0. # +z? date r, received From °c p? L amoun for payment of Q cash O money O credit O 6?,( order, card check # amount due 0 7? amount p,id d (? 01, from to - _ -7 V y l ,1 I balance C)/) iiKnatwL`?\ ti ! } - ! ??. aqX.1 EXHIBIT "D" ACT 91 / 6 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE Date: September 29, 2008 To: Mr. Scot L. Neal Mrs. Donna J. Neal 4 Heather Drive Carlisle, PA 17013 THIS FIRM IS A DEBT COLLECTOR ATTEMPTING TO COLLECT A DEBT. THIS NOTICE IS SENT TO YOU IN AN ATTEMPT TO COLLECT THE INDEBTEDNESS REFERRED TO HEREIN AND ANY INFORMATION OBTAINED FROM YOU WILL BE USED FOR THAT PURPOSE. IF YOU HAVE PREVIOUSLY RECEIVED A DISCHARGE IN BANKRUPTCY, THIS CORRESPONDENCE IS NOT AND SHOULD NOT BE CONSTRUED TO BE AN ATTEMPT TO COLLECT A DEBT, BUT ONLY ENFORCEMENT OF A LIEN AGAINST PROPERTY. This is an official notice that the mortgage on your home is in default and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S MORTGAGE ASSISTANCE PROGRAM (HEMAP) MAY BE ABLE TO HELP TO SAVE YOUR HOME This Notice explains how the program works, To see if HEMAP can help you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE Take this Notice with you when you meet the counseling agency. The name address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of this Notice If you have any questions you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397 (Persons with impaired hearing may call (717) 780-1869. This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNERS EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA FERDIDA DEL DERECHO A REDIMAR SU HIPOTECA. STATEMENTS OF POLICY Homeowner's Name(s): Scot L. Neal and Donna J. Neal Property address: 4 Heather Drive, Carlisle, Pennsylvania 17013 Loan / Account number: Mortgage and Mortgage Note signed November 6, 2005 Original Lender: Robert E. Neal and Audrey C. Neal Current Lender / Servicer: Robert E. Neal and Audrey C. Neal HOMEOWNERS EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS. IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE. • IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a face-to-face meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT THIRTY (30) DAYS IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this Notice the lender may NOT take action against you for thirty (30) days after the date of this meeting The names addresses and telephone numbers of designated consumer credit counseling agencies for the County in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in a default for the reason set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in 2 submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSE ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it un to date) NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 4 Heather Drive, Carlisle, Pennsylvania IS SERIOUSLY IN DEFAULT because: A. YOU HAVE NOT PAID THE REQUIRED AMOUNT DUE AS OF SEPTEMBER 27, 2008 Total Amount Past Due $11,367.60 Late charges for unpaid amount per Mortgage Note $ 960.00 Other: Unpaid Taxes and Homeowners Insurance $ 753 .76 Attorney Fees per Mortgage Note $ 650.00 Total amount to cure default $ 13,731.36 , together with any and all accrued and accruing interest per the Mortgage Note dated November 6, 2005. B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable N/A HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $13,731.36, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: Irwin & McKnight, Attn: Matthew A. McKnight, Esquire, 60 West Pomfret Street, Carlisle, PA; Telephone: 717-249-2353. You can cure any other default by taking the following action within THIRTY (30) DAYS of the date of this letter. 3 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorney to start legal action to foreclose upon your mortgage property. IF THE MORTGAGE IS FORECLOSED UPON - The Mortgage property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorney, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount owed to the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY periodyou will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff s Sale of the mortgage property could be held would be approximately SIX (6) MONTHS from the date of this notice. A notice of the actual date of the Sheriff s Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Irwin & McKnight, Attn: Matthew A. McKnight, Esquire, 60 West Pomfret Street, Carlisle, PA; Telephone: 717-249-2353. EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff s Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. 4 ASSUMPTION OF MORTGAGE - You may or X may not (check one) sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and cost are paid prior to or at the sale and that the other requirements of the mortgage are satisfied. YOU MAY ALSO HAVE THE RIGHT: • TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. • TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. • TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY IS ATTACHED. Very truly yours, IRWIN & MCKNIGHT Matthew A. McKnight, Esquire cc: Robert E. Neal and Audrey C. Neal 15 McBride Avenue Carlisle, PA 17013 Mailed by 1" Class mail / Certificate of Mailing and Certified Mail No.: 7004 1350 0003 7289 4294 CUMBERLAND COUNTY CONSUMER CREDIT COUNSELING AGENCIES: Adams County Interfaith Housing Authority 40 E High Street Gettysburg, PA 17325 717.334.1518 CCCS of Western PA 2000 Linglestown Road Harrisburg, PA 17102 888.511.2227 888.511.2227 Community Action Commission of Captial Region 1514 Derry Street Harrisburg, PA 17104 717.232.9757 Loveship, Inc. 2320 North 5th Street Harrisburg, PA 17110 717.232.2207 Maranatha 43 Philadelphia Avenue Waynesboro, PA 17268 717.762.3285 PHFA 211 North Front Street Harrisburg, PA 17110 717.780.3940 800.342.2397 6 s CERTIFICATE OF SERVICE I, the undersigned hereby certify that on this 20th day of October, 2008, a copy of the Answer With New Matter and Counterclaim was served by first-class, postage prepaid United States mail in Carlisle, Pennsylvania upon the following: Timothy N. Atherton, Esquire Allen E. Hench Law Offices 220 Market STreet Newport, PA 17074 IRWIN & McKNIGHT Matthew A. Mc ight, Esquire Supreme Court I. . No: 93010 60 West Pomfret Street Carlisle, PA 17013 (717) 249-2353 Attorney for Plaintiff 711 ?" 4 SCOT L. AND DONNA J. NEAL, Plaintiffs V. ROBERT E. AND AUDREY C. NEAL, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008 5524 Civil Term REPLY TO NEW MATTER AND COUNTERCLAIM ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 !11-L AND NOW, this 1 2 day of November, 2008, comes the Plaintiffs, by and through their Attorneys, the Allen E. Hench Law Office, and files the following Reply to New Matter and Counterclaim and in support thereof avers as follows: 70. The averments contained in Plaintiffs' complaint in the above matter are hereby incorporated herein by reference as if fully set forth herein. 71. Admitted in part and denied in part. It is admitted that the Defendants, Robert E. and Audrey C. Neal, are the parents of Plaintiff, Scot L. Neal. It is denied that the Defendants for the last several years have periodically lent Plaintiffs money for various household needs or any other purpose. To the contrary, the only loan between Plaintiffs and Defendants is that represented by Exhibit A to Plaintiffs' Complaint, being the secured loan for the purchase of the mobile home. 72. It is specifically denied that any unsecured loans were given, interest free or otherwise by Defendants to the Plaintiffs. To the contrary, the only loan made by the Defendants to the Plaintiffs was the Note & Security Agreement (hereinafter the "Secured Loan"), attached to Plaintiffs' Complaint as Exhibit A. It is specifically denied that Defendants had any agreement to make regular periodic payments with respect to any loan other than the Secured Loan for the mobile home. 73. It is specifically denied that the Defendants provided any unsecured loans to the Plaintiffs or that the Defendants extended additional unsecured loans when a balance remained due on earlier unsecured loans. To the contrary, the only loan made by Defendants to the Plaintiffs was the Secured Loan for the mobile home attached to Plaintiffs' Complaint as Exhibit A. 74. It is denied that Defendants made any loans to the Plaintiffs other than the Secured Loan for the mobile home. By way of further answer, it is denied that the Defendants agreed to accept services in lieu of payment for an agreed upon cash value, said credits to be applied to the unsecured loans. To the contrary, the FAX: (717) 567-3130 Defendants agreed to accept services in lieu of payment for agreed upon cash value to be credited to the Secured Loan for the mobile home. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567.3139 75. Admitted. 76. Admitted. 77. Admitted. 78. It is admitted that the additional payments for fuel bills and previous owners back lot rent, taxes and trash bill were not included in the security agreement. It is denied however the Plaintiffs agreed to treat the payments for those items as additional amounts owed on the mobile home. To the contrary, the Defendants made those payments as gifts to the Plaintiffs indicating to Plaintiffs from that point forward they would be responsible for such payments. 79. It is admitted that the Secured Loan calls for payments of $300.00 per month to begin on December 6, 2005. By way of further answer, the Plaintiffs aver that by mutual oral agreement the parties agreed that the first payment on the mobile home would not be made until after the Christmas holidays or January 2006. 80. It is denied that Plaintiffs had outstanding unsecured loans with the Defendants; to the contrary, no unsecured loans existed at the time of the purchase of the mobile home. It is admitted that the Plaintiffs agreed to make payments towards the mobile home but it is denied that any payments that were to be made were in fact due to Defendants for any unsecured loan. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and therefore the same are deemed denied and strict proof thereof, if relevant, is demanded at trial. 81. It is denied that from December 6, 2005 until May 14, 2008 Defendants received zero payments towards the repayment of the mobile home. To the contrary, during that period of time Plaintiffs paid $3,000.00 toward the repayment of the mobile home. 82. It is admitted that the Defendants did not seek to enforce the terms of the security agreement until after the commencement of this action. By way of further answer, it is denied that there were any unsecured loans between Plaintiffs and Defendants and that any periodic payments on such non-existent loans were due. By way of further answer, after reasonable investigation Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and the same are therefore deemed denied and strict proof thereof, if relevant, is demanded at trial. 83. It is admitted that payments on the mobile home were made for the months of May and June 2008. By way of further answer, in addition to those payments FAX: (717) 567-3130 Plaintiffs made monthly payments beginning on January 6, 2006 through June 6, 2006 in the amount of $300.00 each month. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 84. It is denied that there were any unsecured loans between Plaintiffs and Defendants and that the Plaintiffs owed Defendants any payments in connection therewith. By way of further answer, after reasonable investigation the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and such averments are deemed denied and strict proof thereof, if relevant, is demanded at trial. 85. It is admitted that in early 2007 Plaintiff, Scot L. Neal, suggested that he provide certain work on his father's 1981 Corvette. It is denied that the project was to be a father and son project; to the contrary, Plaintiff, Scot L. Neal, suggested that he perform work on his father's Corvette in response to Defendant, Robert Neal's, threats to evict Plaintiff and his family from their mobile home for non- payment on the Secured Loan. Defendant, Robert E. Neal, agreed to apply the value of the work of the Corvette as a credit against the amounts due and owing on the Secured Loan for the mobile home. 86. Admitted 87. It is denied that for several months the vehicle sat at the garage with no one working on it. To the contrary, work began on the vehicle almost immediately in early of July 2007 and continued through December 2007. 88. It is denied that when the vehicle was worked on that Plaintiff, Scot L. Neal, and Defendant, Robert E. Neal, worked together on it. To the contrary, on only two occasions did Defendant, Robert E. Neal, provide any work in connection with the vehicle. On all other occasions, the work was performed by Plaintiff, Scot L. Neal, with the occasional help of others. 89. It is admitted that in early 2008 Scot L. Neal was fired from his job at the garage. By way of further answer, he was discharged because Defendant, Robert E. Neal, was frequently on the premises consuming alcoholic beverages. It is denied that most of the work on the vehicle was completed in a day or two after Plaintiff had been terminated because the vehicle was no longer allowed to remain at the garage. To the contrary, work was performed over a period of five months with the majority of the work being completed before Plaintiff was terminated. It was only the last few items that were completed in the day or two after Plaintiff was terminated by his employer. 90. It is denied that the work Plaintiff, Scot L. Neal, helped with consisted mostly of sanding, painting and some interior work. To the contrary, the car was completely refurbished; the body lines were removed; the interior completely replaced; the car entirely primed, sanded, painted, sanded again, repainted, sanded a third time, gold pearl added, 2 coats of clear coat applied and the black paint stripped from all of the chrome on the vehicle. FAX: (717) 567-3130 91. It is denied that most of the work performed by Plaintiff, Scot L. Neal, on the vehicle was of poor quality and done in an unworkmanlike manner. To the contrary, all work was of high quality and performed in a workmanlike manner to the satisfaction of Defendant, Robert E. Neal. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 92. It is denied that the work was not of first-rate quality and performed in a good and workmanlike manner. To the contrary, the work was of first-rate quality, was performed in a good and workmanlike manner and was in all respects satisfactory to the Defendant. It is denied that Defendant, Robert E. Neal, offered to credit Plaintiff, Scot L. Neal, with $2,000.00 towards the payment on unsecured loans. To the contrary, it is specifically denied that there were any unsecured loans outstanding between the Plaintiffs and Defendants and the $2,000.00 credit was to be applied to the Secured Loan for the mobile home in accordance with the oral contract between the parties. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and such averments are deemed denied and strict proof thereof, if relevant, is demanded at trial. 93. It is denied that work performed by Plaintiff on the Corvette was not of a first rate quality and performed in a good and workmanlike manner. It is specifically denied that any of the work provided by the Plaintiff in connection with the vehicle will need to be repaired by the Defendant or by anyone else. It is admitted, however, that the final clear coat needs to be hand sanded and buffed. By way of further answer, the Plaintiff has requested on many occasions for the Defendant to bring the car in so that work could be performed and the Defendant has refused. 94. Admitted 95. It is denied that there were any unsecured loans which required repayment. It is specifically denied that Audrey C. Neal offered to credit Plaintiff s remodeling work towards repayment of unsecured loans. To the contrary, Defendant, Audrey C. Neal, agreed, in consideration for the Plaintiff, Scot L. Neal's, remodeling portions of the Defendants' home, to take moneys that she received as her share of a prior settlement with third parties and use the same to pay off the note on the mobile. 96. It is denied that Audrey C. Neal made the offer after she recently provided Plaintiffs a small loan for Christmas presents. To the contrary, no loans were made by Audrey C. Neal to either or both of the Plaintiffs for Christmas presents or any other purposes. 97. It is admitted that Plaintiff, Scot L. Neal, took advantage of the offer to have the mobile home paid for by providing remodeling work at the Defendants' home. It is admitted that he came to the Defendants' home often, but it is specifically denied that he simply visited and left without doing any work. To the contrary, FAX: (717) 567-3130 the Plaintiff installed two hardwood floors in the living room and dining room; custom framing on and around the front door; painted the living room walls with textured paint; dry walled the stairway hallway and up the stairs and taped and mudded the same; dry walled the upstairs hall and front bedroom and taped and mudded those rooms; and removed the carpet in the front bedroom. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 98. It is denied that Plaintiff, Scot L. Neal, worked primarily helping Defendant, Robert E. Neal, with the flooring and the dry wall work. To the contrary, Robert E. Neal did little or no work to the premises, such work being performed by Scot L. Neal, Sebastian Stoll and Nathan Kibe. 99. It is denied that Plaintiff, Scot L. Neal's, work was of such poor quality, and done in such an unworkmanlike manner, that portions of the home he worked on will have to redone either by Defendant or an independent contractor. To the contrary, all of the work performed by Plaintiff, Scot L. Neal, was of first-class quality and done in a good and workmanlike manner, using quality material, done to the complete satisfaction of Defendants, and will not be required to be redone by Defendants or an independent contractor. 100. The allegations in paragraph 100 are denied as stated. It is denied that Plaintiff, Scot L. Neal's, work was of poor quality. It is admitted that Defendant, Robert E. Neal, did not request Plaintiff to stop doing the work. To the contrary, the Plaintiff stopped performing the work when he was told by his father that his mother would not satisfy the mortgage on the mobile home out of funds she received from a settlement because Defendant, Audrey C. Neal's, funds were the funds of the Defendant, Robert E. Neal, and he would not permit it. This constituted a breach of the agreement between the Plaintiff and the Defendants which resulted in the Plaintiff's discontinuance of all remodeling work on the Defendants' home. 101. It is denied that there were any outstanding unsecured loans between Plaintiffs and Defendants. It is further specifically denied that the Defendants applied credit to such non-existing outstanding loans for the actual value of work and flooring materials that Scot L. Neal provided. To the contrary, the agreement between Scot L. Neal and Audrey C. Neal was that she would pay off the note on the mobile home. By way of further answer, Plaintiff received no credit for the value of the work and flooring materials. 102. Admitted 103. It is admitted that after the work was completed, BMS released the vehicle to Defendant, Robert E. Neal. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments contained in this paragraph and the same are therefore deemed denied and strict proof thereof, if relevant, is demanded at trial. FAX: (717) 567-3130 104. Denied as stated. Defendant, Robert E. Neal, told Plaintiff, Scot L. Neal, that he was unable to pay BMS for repairs to the vehicle and as a result Plaintiff, Scot L. Neal, told his father that he would assist him in making those payments provided that those payments were credited against the outstanding loan on the mobile home. The Defendant, Robert E. Neal, agreed to this proposal and thereafter Scot L. Neal contacted BMS and offered to assist his father in making payments on the outstanding bill. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 105. It is denied that Plaintiff agreed to make weekly payments of $100.00 towards Defendant's outstanding balance. To the contrary, the Plaintiff, Scot L. Neal, agreed to assist, and, in fact, did assist by paying three $50 payments towards the Defendant's, Robert E. Neal's, outstanding bill. At no time did the Plaintiff, Scot L. Neal, agree to pay $100 per week or any specific amount weekly towards this bill. 106. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments contained in this paragraph and the same are therefore deemed denied and strict proof thereof, if relevant, is demanded at trial. 107. Admitted 108. It is denied that the proprietor of BMS confronted the Plaintiff, Scot L. Neal, in the presence of the Defendant, Robert E. Neal, about the payments on the BMS account. To the contrary, no such confrontation occurred. By way of further answer, after reasonable investigation the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and the same are therefore deemed denied and strict proof thereof, if relevant, is demanded at trial. 109. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph and the same are therefore deemed denied and strict proof thereof, if relevant, is demanded at trial. 110. Denied. It is denied that the Plaintiffs gave Robert E. Neal permission to store his motorcycle in their shed located in 4 Heather Dry, Carlisle, PA 17013. To the contrary, the Defendant, Robert E. Neal, told the Plaintiffs that since he paid for the mobile home he had the right to store the motorcycle on their property. 111. It is denied that Scot L. Neal suggested that they remove a portion of the shed wall to provide accessibility for the motorcycle. To the contrary, Defendant, Robert E. Neal, said that he was going to remove a portion of the shed wall to accommodate the motorcycle and, in fact, did so without the Plaintiff, Scot L. Neal, being present. 112. Denied as stated. When, Plaintiff, Scot L. Neal found out that the wall had been removed, he assisted his father in placing hinges and re-hanging the portion of FAX: (717) 567-3130 wall so that the Plaintiff's tools and other property contained within the shed could be secured. ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 113. It is denied that the mobile home at 4 Heather Drive, Carlisle, PA 17013 was listed for upset sale for failure to pay taxes. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and the same are deemed denied and strict proof thereof, if relevant, is demanded at trial. 114. It is admitted that the Defendants, without authorization of the Plaintiffs, paid a portion of the back taxes on the mobile home. By way of further answer, the Plaintiffs had made prior arrangements with the taxing authorities to pay the back taxes in installments. The Plaintiffs made two installments on these taxes and then were informed by the taxing authority that the taxes had been paid by the Defendants. By way of further answer, after reasonable investigation the Plaintiffs are without information sufficient to form a belief as to the truth of the remaining averments in this paragraph and the same are therefore denied and strict proof thereof, if relevant, is demanded at trial. 115. Admitted 116. It is denied that the Plaintiffs allowed the insurance policy covering the mobile home to lapse. To the contrary, the Plaintiffs had arranged with the insurance agency to have the payments for the mobile home insurance billed to them monthly along with their automobile insurance payment. By way of further answer, after reasonable investigation the Plaintiffs are without sufficient information to form a belief as to the truth of the remaining averments of this paragraph and the same are therefore deemed denied and strict proof, if relevant, is demanded at trial. 117. It is admitted that the Plaintiffs have failed to provide the Defendants with the proof of the new insurance policy. Plaintiffs acquired no such new insurance policy but rather arranged to have the premiums paid upon the existing policy on a monthly basis as opposed to an annual or semi-annual basis. 118. After reasonable investigation, the Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph and the same are therefore deemed denied and proof thereof, if relevant, is demanded at trial. 119. The allegations in paragraph 119 constitute conclusions of law to which no answer is required. 120. The allegations contained in paragraph 120 constitute conclusions of law to which no answer is required. WHEREFORE, Plaintiffs respectfully request this Honorable Court enter judgment in their favor against the Defendants as set forth in their Complaint. FAX: (717) 567-3130 COUNTER CLAIM BREACH OF SECURITY AGREEMENT ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 121. The averments of fact contained in Plaintiffs' Complaint and in the foregoing Reply to New Matter are hereby incorporated herein by reference and made a part hereof as if fully set forth. 122. Admitted 123. It is admitted that the Plaintiffs did not make a payment on the mobile home in December 2005 because of the oral understanding reached between Plaintiffs and the Defendants that such payments would not begin until January 2006. It is also admitted that from August 2006 through May 6, 2008 that Plaintiffs made no payment on the security agreement and mobile home note because Plaintiff, Donna J. Neal, became disabled and Defendants agreed to permit the Plaintiffs to defer payments until such time as she obtained her disability payments which occurred in May 2008. Such oral arrangements constituted a modification of the Note and Security Agreement attached to the Plaintiffs' Complaint as Exhibit A and therefore the Plaintiffs denied that they were in breach of the terms and provisions of the note and the security agreement as modified. 124. It is admitted that the Note and Security Agreement provide that the payments can be accelerated upon default. It is, however, denied that any default has occurred because of the oral modifications to the agreement as set forth in paragraph 123 hereof. 125. It is denied that the Defendants are entitled to late fees in the amount of $990. To the contrary, Defendants waived the right to any such fees by the modifications to the Note and Security Agreement referred to in paragraphs 123 and 124 above. 126. It is admitted that the Defendants have the right to seek possession of the mobile home upon Plaintiffs' default. It is specifically denied, however, that the Plaintiffs are in default on the Note and Security Agreement. To the contrary, the Note and Security Agreement itself were amended by oral agreements as referred to in paragraphs 123 and 124 above. By way of further answer, the Plaintiffs are entitled to a complete set-off against any moneys owed on the note by virtue of the work Plaintiff, Scot L. Neal, performed on the Defendant, Robert E. Neal's, Corvette, the remodeling work performed on Defendants' home, and damages inflicted by Robert E. Neal on the Plaintiff's shed. 127. It is admitted that the Defendants' have the right to pay taxes and other charges and insurance if Plaintiffs' fail to do so. It is specifically denied, however, that the Plaintiffs have failed to pay taxes and insurance and other charges. FAX: (717) 567-3130 128. It is admitted that the Note and Security Agreement provide for the collection of reasonable attorneys fees if the agreement is in default. It is specifically denied, however, that the Plaintiffs are in default of the Note and Security Agreement. To the contrary, no such default exists by virtue of the oral modifications to the Note and Security Agreement. By way of further answer, Plaintiffs are entitled to a complete set-off against any claim with respect to the Note and Security Agreement by virtue of the work performed on Defendant, Robert E. Neal's, Corvette, the work performed on Defendant's home, and the damages inflicted upon the Plaintiff's shed by the Defendant, Robert E. Neal. 129. Admitted 130. It is denied that the Plaintiffs are in default in connection with the Note and Security Agreement. By way of further answer, the Plaintiffs are entitled to a complete set-off against any amounts due and owing under the Note and Security Agreement by virtue of the work performed on Defendant, Robert E. Neal's Corvette, the remodeling in connection with the Defendant's home, and damage inflicted on the Plaintiffs shed by Robert E. Neal. WHEREFORE, the Plaintiffs demand judgment against Defendants as set forth in their Complaint. Respectfully submitted, Allen E. Hench Law Offices By: Timothy N. Atherton, Esquire Supreme Court ID #19656 220 Market Street Newport, PA 17074 717-567-3139 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 Verification I verify that the statements made in the Reply to New Matter and Counterclaim are true and correct to the best of my knowledge, information and belief. I understand that false statements are made subject to law as provided in Title 18 Pa.C.S. 4904 relating to unsworn falsifications to authorities. cot L. Neal Z:Wtherton, Tim\Neal, Scot and Donna - Reply to New Matter - 2008 .doc ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT. PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 -n t C-1) IN C >:_^ r-j 1 -?: SCOT L. AND DONNA J. NEAL, Plaintiffs V. ROBERT E. and AUDREY C. NEAL, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA C O NO. 2008 5524 Civil Term 4 zr PETITION TO WITHDRAW AS COUNSEL.' cn AND NOW, this cG- day of January, 2010, comes Timothy N. Atherton, Esquire, and the Allen E. Hench Law Office and petitions the Court for leave to withdraw their appearance in the above matter, and in support thereof, avers as follows: 1. The Petitioners are Timothy N. Atherton, Esquire, and the Allen E. Hench Law Offices, with a place of business at 220 Market Street, Newport, PA 17074. 2. Respondents are Scot L. and Donna J. Neal, husband and wife, whose last known address was 4 Heather Drive, Carlisle, PA 17013. 3. Petitioners entered their appearance in the above matter on September 18, 2008, by filing a Complaint against Defendants. 4. Prior to entering their appearance, the Petitioners entered into an engagement agreement with the Respondents whereby the Respondents agreed to pay Petitioners for legal services in connection with this matter. A copy of the ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 engagement letter is attached hereto and made a part hereof as Exhibit A. 5. Respondents are currently indebted to the Petitioners in the sum of $2,053.26. -B n C corn FAX: (717)567.3130 6. Respondents have failed to cooperate with the Petitioners in that they sent a letter to opposing counsel indicating that Petitioners had been discharged as counsel, and failed to pay bills as rendered despite promises to do so. 7. Petitioners believe, and therefore aver, that their withdrawal at this time is appropriate and will not unduly delay litigation. 8. No Judge of this Court has ruled on any matter in this or in any related case. 9. No concurrence of opposing counsel was sought before filing this petition. WHEREFORE, Petitioners respectfully request that the Court enter an Order upon Respondents to show cause why Petitioners should not be permitted to withdraw as counsel, or, in the alternative, enter an Order allowing Petitioners to withdraw as counsel for Respondents/Plaintiffs in this matter. Respectfully submitted, Allen E. Hench Law Offices By: .---, Timothy N. Atherton, Esquire Attorney ID #19656 220 Market Street Newport, PA 17074 717-567-3139 Attorney for Plaintiffs Atherton, Tine Neal, Scot - Petition to Withdraw as Counsel -1-10 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 VERIFICATION I, Timothy N. Atherton, Esquire, hereby state that the statements made in the foregoing Petition to Withdraw as Counsel are true and correct to the best of my knowledge, information, and belief. The undersigned understands that the statements therein are made subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unworn falsifications to authorities. Date: 1 d ' i c mothy Atherton, Esquire ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 SCOT L. AND DONNA J. NEAL, Plaintiffs v. ROBERT E. and AUDREY C. NEAL, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008 5524 Civil Term CERTIFICATE OF SERVICE AND NOW, this at day of January, 2010, I hereby certify that I have this day served the following persons with a copy of the Petition to Withdraw as Counsel, by first class, United States Mail, postage pre-paid, addressed as follows: Scot L. Neal 4 Heather Drive Carlisle, PA 17013 Donna J. Neal 4 Heather Drive Carlisle, PA 17013 Matthew A. McKnight, Esquire Irwin & McKnight 60 West Pomfret Street Carlisle, PA 17013-3222 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 Attorney for Plaintiffs Supreme Court ID #19656 220 Market Street Newport, Pa. 17074 (717) 567-3139 FAX: (717) 567-3130 ALLEN E. HENCH LAW OFFICES 220 MARKET STREET NEwpoRT, PENNSYLVANIA 17074 (717)567-3139 Fax NUMBER (717) 567-3130 Email: at omCWpam Timothy N. Atherton, Esquire July 10, 2008 Scot L. and Donna J. Neal 4 Heather Drive Carlisle, PA 1701 Dear Scot and Donna: Thank you very much for your confidence in retaining our office. We loot: forward to working with you regarding your dispute with your parents. Over the last 30 years, we have learned that an attorney-client relationship functions best when both parties are fully aware of the scope of the representation and their respective obligations. The purpose of this letter is to set forth, in writing, the arrangements concerning our services and how we calculate charges and fees, so that we may avoid any misunderstandings. We realize this letter may seem quite formal, and perhaps unnecessary; yet, we find that clients appreciate a clear statement of arrangements, which can be referenced in the future if a question arises. Charges will be based on the time and effort for professional and office work devoted to your case at the hourly rates for the attorney and/or paralegal performing the service during the periods that the services are performed (based upon intervals of one-tenth of an hour). We try to have the work done at the level that will be most efficient in terms of rates and costs to you. The present rate for this matter is $175.00 per hour for service performed by Timothy N. Atherton or Aden E. Bench; and paralegal services, $45.00 per hour. A $2,000.00 retainer fee is required to be applied to charges, to be replenished when the account reaches $750.00. Please understand that all hourly rates charged to our clients generally are increased on an annual basis by the office. The tin!_e charged includes not only meetings with you, any necessary courthouse work, but also such activities as drafting, preparing, reviewing, and revising documents, pleadings, and correspondence, all telephone conversations with you, or any other attorney or other parties involved, time spent involving preparation, legal research, and travel, if any, etc. In addition to the charges for professional services, we will bill for all of our out-of- pocket disbursements, such as charges for long distance -telephone calls, postage, filing fees or governmental fees, experts, appraisals, investigative and witness fees, travel expenses, Ek1-113iT A computerized legal research, transcripts, telecopies, and photocopies. In order to allocate these expenses fairly and keep billable rates as low as possible for those matters that do not involve such expenditures, these items are separately itemized on our statements as "costs." We will be sending you periodic statements as your matter proceeds containing a description of how we have been spending our time on your behalf. In addition, we reserve the right to charge, but only with your consent, an additional fee in excess of our hourly charges and costs. Whether such an additional fee will be requested and the amount of the request will depend upon a number of factors, including the novelty and difficulty of the issues involved, the need to decline other matters in order to handle your case, the results obtained, the time, the time limitation set by you or by the circumstances, and the delay, if any, in the payment of your bills. Unfortunately, it is virtually impossible to estimate for you the total amount of time or total fee that will need to be devoted to your matter. That will depend upon a variety of factors, primarily upon how much time and effort is required in professionally handling the matter, telephone and office conferences with you and others, the nature and complexity of the issues involved and the degree of cooperation afforded by other parties, other attorneys, or others involved in the matter. We will, of course, provide you with copies of all correspondence, pleadings and any other relevant documents. We understand that in matters of this nature, urgent circumstances may arise that may necessitate your talking to us immediately. Understandably, there are occasions when we are not immediately available because of commitments to other cases, tight schedules for other matters, or other previously scheduled obligations. We therefore have made a strong commitment to respond to all of your inquiries as soon as possible. My staff will also be working with me on this matter and you should always feel free to contact anyone in the office. You have the right to terminate our services at any time, for any reason. We reserve the right to terminate the representation upon your failure to pay our fees and reimbursable expenses within thirty days of billing. We reserve the right to terminate the relationship immediately in the event that cause exists under the Pennsylvania Rules of Professional Conduct, which governs attorney conduct. We also reserve the right to terminate our relationship, for any other reason, upon thirty (30) days written notice to you. I trust that this letter satisfactorily sets forth our arrangement concerning our scope of representation as well as arrangements regarding our services, fees, and costs. We would ask for your approval and would appreciate your signing the enclosed copy of this letter in the space indicated and returning it to me in the stamped, addressed envelope. Of course, should you have any questions or comments about this letter or the arrangements discussed above, please do not hesitate to give me a call. We look forward to working with you. Sincerely, CoAtherton, Esquire Allen E. Hench Law Office WE HAVE READ THE ABOVE RCTAIMER LETTER AND AGREE WITH SAME; IT CORRECTLY SETS FORTH OUR UNDERSTANDING IN REGARD TO OUR FEE ARRANGEMENT AND REPRESENTATION BY ALLEN E. BENCH LAW OFFICE. THE COMMITMENTS AND AGREEMENTS HEREIN MADE ARE BINDING ON US, AND OUR HEIRS, ESTATES, SUCCESSORS, OR ASSIGNS. Dated:.` lot I Dated: C:/Neal, Scot & Donna. eng Enclosures: stamped, addressed envelope extra copy of letter J. NE SCOT L. AND DONNA J. NEAL, IN THE COURT OF COMMON PLEAS OF PLAINTIFFS CUMBERLAND COUNTY, PENNSYLVANIA V. C? ?v ROBERT E. AND `j ° AUDREY C. NEAL, ` DEFENDANTS NO. 08-5524 CIVIL= ORDER OF COURT AND NOW, this 11th day of January, 2010, upon consideration of the Petitiono yarn Withdraw as Counsel filed by the Petitioner, IT IS HEREBY ORDERED AND DIRECTED-tat:-^c 1. A Rule is issued upon the Parties to show cause why the Petitioner should not be granted permission to withdraw as counsel of record; 2. The Parties will file an answer on or before February 1, 2010; 3. If no answer to the Rule to Show cause is filed by the required date, the relief requested by Petitioner shall be granted upon the Court's receipt of a Motion requesting Rule be made Absolute. If the Parties file an answer to this Rule to Show Cause, the Court will determine if further Order or hearing is necessary. 4. The Prothonotary is directed to forward said Answer to this Court. By the Court, Timothy N. Atherton, Esquire Petitioner Scot L. Neal onna J. Neal Plaintiffs 4 Heather Drive Carlisle, PA 17013 Matthew A. McKnight, Esquire Attorney for Defendants bas COP 1 ip-S ?l M. L. Ebert, Jr., 0 J. SCOT L. AND DONNA J. NEAL, Plaintiffs V. ROBERT E. and AUDREY C. NEAL, Defendants IN THE COURT OF COMMON PLE+§ ? OF CUMBERLAND COUNTY, c? d PENNSYLVANIA ri = m t,, _ 2 2008 5524 Civil Term NO _ -c• . c a ? MOTION REQUESTING RULE BE MADE ABSOLUTE AND NOW, this 12TH day of February, 2010, comes Timothy N. Atherton and the Allen E. Hench Law Office and moves as follows: 1. On January 6, 2010, Petitioners filed a Petition to withdraw as counsel. 2. By Order dated January 11, 2010, Judge M. L. Ebert, Jr., entered a Rule upon the parties to show cause why Petitioners should not be granted permission to withdraw as counsel of record. 3. The Rule to Show Cause required that the parties file an Answer to the Petition on or before February 1, 2010. 4. No Answer has been filed on behalf of any party. WHEREFORE, your Petitioners request that the Rule to Show Cause be made absolute and that Petitioners, Timothy N. Atherton, Esquire and the Allen E. Hench Law Offices be permitted to withdraw as attorneys for Scot L. and Donna J. Neal. Respectfully submitted, Allen E. Hench aw Offices By: Timothy N. Atherton, Esquire ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 667-3139 Attorney ID #19656 220 Market Street Newport, PA 17074 717-567-3139 Attorney for Plaintiffs FAX: (717) 567-3130 SCOT L. AND DONNA J. NEAL, IN THE COURT OF COMMON PLEAS Plaintiffs OF CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 2008 5524 Civil Term ROBERT E. and AUDREY C. NEAL, Defendants CERTIFICATE OF SERVICE AND NOW, this 12T" day of February, 2010, I hereby certify that I have this day served the following persons with a copy of the Motion Requesting Rule Be Made Absolute, by first class, United States Mail, postage pre-paid, addressed as follows: Scot L. Neal 4 Heather Drive Carlisle, PA 17013 Donna J. Neal 4 Heather Drive Carlisle, PA 17013 ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 Matthew A. McKnight, Esquire Irwin & McKnight 60 West Pomfret Street Carlisle, PA 17013- TIMOTHY N. A HERTON, ESQUIRE Attorney for Plaintiffs Supreme Court ID #19656 220 Market Street Newport, Pa. 17074 (717) 567-3139 FAX: (717) 567-3130 r ?• FEB 1 12010 SCOT L. AND DONNA J. NEAL, Plaintiffs V. ROBERT E. and AUDREY C. NEAL, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2008 5524 Civil Term ORDER e A ND NOW, this 1day of February, 2010, upon Motion of Timothy N. Atherton, the Rule issued on January 11, 2010 is made absolute and Timothy N. Atherton, Esquire, and the Allen E. Hench Law Offices, are hereby granted permission to withdraw as counsel of record. BY THE COURT, ALLEN E. HENCH ATTORNEY AT LAW 220 MARKET ST. NEWPORT, PA 17074 TEL: (717) 567-3139 FAX: (717) 567-3130 C? ec? ? f s m????, s. ?e.,a- L a1???d C>" f? rn ?', T'?'i C:3J y CC) ? tom- a _J -n i1?. i OF <UM David D. Buell e Wenee X Simpson Prothonotary y 1st Deputy Prothonotary Sofionage, ESQ it , :� �?' Irene E. Morrow Solicitor „50 2"d Deputy Prothonotary Office of the Prothonotary Cum6er&and County, Pennsylvania — ,Sczy CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 29TH DAY OF OCTOBER, 2013,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 • Carlisle, cf7 17013 • (717)240-6195 • Fa.,(717)240-6573