Loading...
HomeMy WebLinkAbout08-6296RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdrubyCcr?ypalaw.com Attorneys for Plaintiffs JAMES P. O'GRADY, JR and IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, , v. DOCKET NO. 08 - (..Z916 HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, : DECLARATORY JUDGMENT Defendants. JURY TRIAL DEMANDED 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 days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE COURT ADMINISTRATOR 4rn FLOOR, CUMBERLAND COUNTY COURTHOUSE CARLISLE, PA 17013 (717) 240-6200 i RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdrubyna,hersheypalaw. com Attorneys for Plaintiffs ............................................................................. JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. . l DECLARATORY JUDGMENT JURY TRIAL DEMANDED COMPLAINT IN DECLARATORY JUDGMENT 1. Plaintiffs are James and Florence O'Grady, husband and wife, adult individuals with a residence address of 35 Bella Vista Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050. 2. Defendant, Hovnanian Enterprises, Inc. is a purported Delaware corporation with a principal place of business at 110 West Front Street, Red Bank, New Jersey, 07701. 3. Defendant, K. Hovnanian Enterprises, Inc. is a purported California corporation with a principal place of business at 10 Highway 35, Red Bank, New Jersey 07701. 4. Defendant, K. Hovnanian at Silver Spring, L.L.C., is a purported Pennsylvania limited liability company with a principal place of business of 1170 Wheeler Way, Suite 200, Langhorne, Pennsylvania 19047. 5. Defendant, K. Hovnanian Venture I, L.L.C., is a purported New Jersey limited liability company with a principal place of business at 110 West Front Street, Red Bank, New Jersey, 07701. 6. Defendant, K. Hovnanian Companies of Pennsylvania, Inc., is a purported Pennsylvania corporation with a principal place of business at 1170 Wheeler Way, Suite 200, Langhorne, Pennsylvania 19047. 7. Defendant, K. Hovnanian Homes of Pennsylvania, L.L.C., is a purported Pennsylvania limited liability company with a principal place of business at 1170 Wheeler Way, Suite 200, Langhorne, Pennsylvania 19047. 8. Defendant, Hovnanian Enterprises, Inc., is purportedly the parent company of the other Defendants. 9. On April 6, 2006, Plaintiffs entered into a Purchase Agreement (hereinafter "Agreement") with Defendant, K. Hovnanian at Silver Spring, L.L.C. A true and correct copy of the Agreement is attached hereto as Exhibit A. 10. The Agreement provided for the sale to the Plaintiffs of a home to be constructed at 35 Bella Vista Drive, Mechanicsburg, Pennsylvania 17050 (hereinafter "the Residence"). 11. . Paragraph 18 of the Agreement states that the Seller, defined as K. Hovnanian at Silver Spring, L.L.C. would "provide, at its own expense, a Home Builder's Limited Warranty administered by a professional warranty service corporation." 12. K. Hovnanian at Silver Spring, L.L.C., as Seller, also warranted that the common facilities for a period of two years, warranted that outbuildings, driveways, walkways, patios retaining walls and fences would be free from defects in material and workmanship for a period of one (1) year, and warranted that the home was fit for its intended use. See Exhibit A, Paragraph 18. 13. Closing on the property was held on October 26, 2006, at which time the Seller, K. Hovnanian at Silver Spring, L.L.C., provided Plaintiffs with a deed to the Residence. A true and correct copy of the deed is attached hereto as Exhibit B. 14. On December 12, 2006, Plaintiffs were issued a Warranty (Warranty Number 70A- OS604007029, Warranty Form No. 117 Rev. 05/02) by the Professional Warranty Service Corporation for the Residence. A true and correct copy of the Warranty is attached hereto as Exhibit C. 15. Plaintiffs did not draft the language of the Warranty. 16. Plaintiffs did not have the opportunity to negotiate the language of the Warranty. 17. Plaintiffs did not sign any documentation agreeing to the terms of the Warranty. 18. As such, Plaintiffs had no advanced knowledge of the terms and conditions of the warranty prior to being presented with the document by Professional Warranty Service Corporation (hereinafter "PWC"). 19. The Limited Warranty Validation Form indicates that the Builder of the Residence is Defendant, K. Hovnanian Venture I, L.L.C. 20. The Warranty makes no reference, in any way, to the Seller of the Residence, K. Hovnanian at Silver Spring, L.L.C. or any of the other Defendants. 21. The Warranty states that: Throughout this HOME BUILDER'S LIMITED WARRANTY, referred to hereinafter as the "LIMITED WARRANTY", the words "YOU" and "YOUR" refer to the HOMEOWNER and HOMEOWNERS ASSOCIATION. The words "WE", "US" and "OUR" refer to the BUILDER. This LIMITED WARRANTY establishes the agreed method for determining when a CONSTRUCTION DEFECT exists and a clear understanding of OUR responsibilities for remedying and such CONSTRUCTION DEFECT. See Exhibit C, Warranty, p.1. 22. The terms are again defined under the definitions of the Warranty as, "We, Us, Our means the Builder." See Exhibit C, Definitions. 23. Further, "Home Builders Limited Warranty" means "only this express warranty document provided to YOU [Plaintiffs] by US [Builder-K. Hovnanian Venture I, L.L.C.]." 24. Accordingly, the Warranty is separate and distinct from the Agreement between K. Hovnanian at Silver Spring, L.L.C. and the Plaintiffs. See Warranty, Section IX, General Condition A. 25. As the Warranty is purportedly a document between "We", defined as the Builder, K. Hovnanian Venture I, L.L.C. and "You" defined as the Homeowner, the Plaintiffs, Defendant K. Hovnanian at Silver Spring is not a party to the Warranty. 26. Consequently, the Warranty does not control the relationship between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. and the rights and obligations of the parties are controlled by the Agreement. 27. Moreover, as the Warranty only refers to Defendant, K. Hovnanian Venture I, L.L.C. and no other entity, the Warranty does not control the relationship between the Plaintiffs and the other Defendants. 4 28. The Warranty also attempts to limit the forum under which Plaintiffs are permitted to proceed against the Builder, K.Hovnanian Venture I, L.L.C. 29. The Warranty states that: In addition, YOU waive the right to seek damages or other legal or equitable remedies from US, OUR contractor, subcontractor, agents, vendors, suppliers, design professionals and materialmen, under any theory of liability, including but not limited to negligence and strict liability. YOUR only remedy in the event of a CONSTRUCTION DEFECT in or to the HOME or the COMMON ELEMENTS or to the real property on which the HOME or the COMMON ELEMENTS is situated is the coverage provided to YOU under this LIMITED WARRANTY. See Warranty, p.1. 30. The Warranty also seeks to require the parties to submit to binding arbitration regarding the following: A. Any disagreement that a condition in the HOME or the COMMON ELEMENTS is a CONSTRUCTION DEFECT and is therefore covered by this LIMITED WARRANTY; B. Any disagreement as to whether a CONSTRUCTION DEFECT has been corrected in compliance with this LIMITED WARRANTY; C. Any alleged breach of this LIMITED WARRANTY; D. Any alleged violation of consumer protection, unfair trade practice, or any other statute; E. Any allegation of negligence, strict liability, fraud, and/or breach of duty of good faith, and any other claims arising in equity or from common law; F. Any dispute concerning the issues that should be submitted to binding arbitration; G. Any dispute concerning the timeliness of OUR performance and/or YOUR notifications under this LIMITED WARRANTY; H. Any dispute as to the payment or reimbursement of the arbitration filing fee; I. Any dispute as to whether this LIMITED WARRANTY, or any provision hereof, including, but not limited to any waiver hereunder, is unenforceable; J. Any other claim arising out of or relating to the sale, design or construction of YOUR HOME or the COMMON ELEMENTS, including, but not limited to any claim arising out of, relating to or based 5 on any implied warranty or claim of negligence or strict liability not effectively waived by the LIMITED WARRANTY. See Warranty, Section VIII, Binding Arbitration Procedure. 31. As stated above, because Defendants, Hovnanian Enterprises, Inc., K. Hovnanian Enterprises, Inc., K. Hovnanian at Silver Spring, L.L.C., K. Hovnanian Companies of Pennsylvania, Inc. and K. Hovnanian Homes of Pennsylvania, L.L.C. are not parties to the Warranty, the arbitration provisions do not apply to any claims between Plaintiffs and those Defendants. 32. Further, as Plaintiffs did not sign the Warranty or any document indicating that they agreed to the terms of the Warranty, Plaintiffs cannot be held to have waived their rights to proceed to court with regard to the Warranty. 33. As such, the arbitration provisions of the Warranty are invalid for reasons including, but not limited to that they are unconscionable, unilaterally imposed and in violation of public policy. 34. Moreover, the Warranty attempts to exclude implied warranties in their entirety. The Warranty states: All express or implied warranties other than this LIMITED WARRANTY, including any oral or written statement or representation made by US or any other person, and any implied warranty of habitability, merchantability or fitness, are hereby disclaimed by US and are waived by YOU. See Warranty, p.1. 35. While Defendant, K. Hovnanian Venture I, L.L.C. attempts to disclaim implied warranties under the Warranty, it fails to do so properly under Pennsylvania law. 36. Pennsylvania law recognizes an implied warranty of good and workmanlike construction. See Elderkin v. Gaster, 288 A.2d 771 (Pa. 1972). That implied warranty 6 ? z requires a builder, who is more skilled and experienced in the construction field than a purchaser, to "bear the risk that a home he built will be functional and habitable in accordance with contemporary and community standards." Id. at 777. 37. Any waiver of that implied warranty must be sufficiently particular to inform the home purchaser of the right he or she is waiving. Tyus v. Resta, 476 A.2d 427 (Pa. Super 1984). 38. Moreover, the contract must always be construed against the builder. Id. at 432. 39. Furthermore, to exclude implied warranty coverage for latent defects, "language of disclaimer must refer to its affect on specifically designated, potential latent defects." Id. 40. Still further, pursuant to the Magnuson-Moss Warranty Act (hereinafter "the Act"), 15 U.S.C. §2301 et seq. Defendant, K. Hovnanian Venture I, L.L.C is considered a supplier under the Act. 41. Defendant, K. Hovnanian Venture I, L.L.C.'s failure to comply with the obligations of the implied warranties stated above was one of the factual causes of the Plaintiffs' harm. 42. As a result, Defendant, K. Hovnanian Venture I, L.L.C is in violation of the Act. 43. Additionally, Defendant, K. Hovnanian Venture I, L.L.C is in violation of the Act by attempting in the Warranty to limit or disclaim the implied warranties of good and workmanlike manner and habitability. 44. Under the Magnuson-Moss Warranty Act, 15 U.S.C. § 2308(a), the Defendant, K. Hovnanian Venture I, L.L.C., having provided a written warranty, may not disclaim any implied warranties to the Plaintiffs. 7 45. As Defendant, K. Hovnanian, Venture I, L.L.C. has not complied with the above appellate case law nor has it complied with the Magnuson-Moss Act, Defendant, K. Hovnanian Venture I, L.L.C. has failed to properly disclaim the implied warranties. WHEREFORE, Plaintiffs respectfully request that this Honorable Court declare the following: a. The Warranty does not control the relationship between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. and the rights and. obligations of the parties are controlled by the Agreement and otherwise. b. The Warranty does not control the relationship between the Plaintiffs and the other Defendants. c. Because Defendants, Hovnanian Enterprises, Inc., K. Hovnanian Enterprises, Inc., K. Hovnanian at Silver Spring, L.L.C., K. Hovnanian Companies of Pennsylvania, Inc. and K. Hovnanian Homes of Pennsylvania, L.L.C. are not parties to the Warranty, the arbitration provisions do not apply to any claims between Plaintiffs and those Defendants. d. As Plaintiffs did not sign the Warranty or any document indicating that they agreed to the terms of the Warranty, Plaintiffs cannot be held to have waived their rights to proceed to court with regard to the Warranty. e. Further, the arbitration provisions of the Warranty are invalid because they are unconscionable, unilaterally imposed and in violation of public policy. f. Defendant, K. Hovnanian Venture I, L.L.C., having provided a written warranty, may not disclaim any implied warranties to the Plaintiffs. g. Defendant, K.Hovnanian Venture I, L.L.C. has failed to comply with the Magnuson-Moss Act and has failed to properly disclaim the implied warranties. Accordingly, those implied warranties exist and a violation of those implied warranties may be asserted by the Plaintiffs. h. Any other relief later requested by Plaintiffs or that the Court deems just and proper. Date: Attorneys for Plaintiffs Respectfully NESTICO, By: Richard B. Dru Attorney I.D. No. 904 840 E. Chocolate Avenue Hershey, PA 17033 (717) 533-5406 Telephone 9 L.L.P. (, k:,6T 1-?{ ? t ?? .t ..f` .rte. •r•.I ?.. '?..?:?? . .,t• - •'. •h ?+ _. Ste. •,. , '...w' •?. •'p? •,it s•'r X U(r VNA?4X&N AT!$.VZR SPRD(G,LGC TnMS AND CONDmom PuRcnA.n AGRESbU 1P1' TABKZ CF COIITMCrd. tes? z. D?oaR?s+aR?csctioHS•---,...N..N.wN ..NN_.N_...«..N N N--.-.-,---••-- •-- _ s 3. CXANME4 «..w....._ .__._ __.. .« _...._.2 &sm 2 S. I?R1?OArdl?««.._.w? .. N.. •NNrNNNNw......Nr .r ... - 2 0. Almahita(/m.r_ _rr .•-•••.r__ •••w••wwrr ' ._nrrr N____r«w««_w.« »w_r..w._._. 7. OWAULTQKNM «.. _ .NON...... N ... ,»...Nr..... NNN_._ _.?_. _ _ _ 4 11• N' WA7JWCOfa1B •••?•••• •••?w-•• ••N••?• •••'•?•T-N_I[N_ YMMNNNINNN«NNNM 4 !. 6mjjnD xuTYTO D9uvHLDEBO ' _ _ -- ---...N. _....«N.....w....... N....4 to s[L=BCQON U. CLOf1fWCNAFA=ANDAVAXll4lal n __•„«,• __ ----•--.-.....-...NNs U• q.OiQlO/s81'1i8M®tt. 12-111 u??N rtosmum .?N...NN.N.N..N.....«? __. . _w _.w.....?...w. _s 14. MR AND CASUALTY- 5 15. Licom 16. Wll17LA470M...,.,.N.__...NN ----•..N..N..rNN. « ..«....w.. »_?...._w _ ._ _ _ d 17. MITES IL WAN Ate ION 1!. ]@ W>1gtJ1 ?1'lARAtIl? ©ObalAilTY.N- _ _- ..... _ ., d 20. SMA.ORSAMMT -------- ---- N.•.-•N- 2L No DIODJfImnam JMar6disVifti s"i ..rfc m 1 • y f. ozroSITS All depad% for r- xovadiaa at S&w Sptiap, L.LC alydl be aspaudy held in m arm m smoaaa for K. Hovsmim PA Red Eelrte. Inc. at PM Bm% beaead at 1560 6AW st 3uve , lhdsddpldq PA 10102 =0 doeitg of tide Oa ftmd dm of dais oosBacy ptaee IM b the PmaoOytrd. Uniftm !loaned Coam ft Act (68 Pa. C.B.Q. i M). hN Mt mmwd finm mch tigm to *AI belong to Sella and oban.a be credited tswn& dts Pm*m PA% 2. DICORATOSffiICZ=ONS B the uywBewasl CWwpie m DNe net fw& is gummy of Bodc Pmvb m ml so mac T wdl not be aabjaet to mammon is prices of daoordot aalrcdm& Boyar drill aides deep 1 - 9 aaloodm m am lira dole acre loath [A St " Dnomw Sdwfiosa Agoomm et." or is do abaems of that I tt?ldtia in (10) dop ar adlee's t"post drat toy be empl" B'Beyor 5ilmto do a0. SsLs. let he Solt d!lctsdoo. boa tlw eslbt tD do Dios e< eves aE tk? )btvwia? (m? ieroemos tits prices otdooorasaaelratioar (b) cbmpr dra ibtimrsed Compb4 m Date ar (o) mob decorator ad=uom is BMwind Bayer mil accept asdpay fordo odss6agt w& dry War. 3. CHANGES OF PLANS Sallee has do dot b seats sabdionfim of makemb, muku o al a delro dmoW tatiaat nodes to Buyw wlbeasase Sault Bade it am m earlr or ompodroat, in lb vole disoMdco, povidd ad dis a% Ilmod- s mra of stpol ar beftquality. Ballot baa the dgk in its solo dimadno, a daknniaa The pbowmat of do home m die h0hapaly i mb dieq: (a) a er vem of the Boar plas; (b) flee rW to molm sage !?oft adjsatmvmr sad (a) b nmaM dmp or leave my notondlys oaeeriag iraeaes c a ere buttnp,Ry. . sin co"rricm Mo doe, cwjt sado% sepaqreft vsd otba saaddom of DoWs lot and do waM Brayer dbooies my mom jkyaes vas of dM prep ww mod vbitty m sealoa octetot adeiei m and imprasa MM& sryM meat daaa111110 vAM W tow SWASt seedidas as asndltioma =Cb r aaeammoas, dtokwip swain and seMeta as doplcad mr tht 10111 d eba and mdWivid@R pbn dBoat des "IV to ao nkm a pod, dada, saaade shod, Vall% Ow: Bt abow ado is am iavsall dim by ormeeeWft vii dW slipre4daee po hnimis. Sdhr that also brlw the alpha b wAm aw V I @ Wboommuss ad to ramov or lave my aaevn* ooeagtilt dlaaeeme. MW vboWd iittdiathe Dwane to yard orm an doped to swommedd a deaim4le tram Borer's tot as wet as *m adjaloift toes. MORTGAGE CW XNgGENCY Tldo hsa.gr? ypUas adr tf a "Ma %W Amomor ie SWd in m dto ?y of Basic lhovieiaee part of dde Ap mmmL WBtu.ma (ta) hmioaa days of to dell m w1duk dds Ap.eoowrt is My pmsM4 Dom tW mdse Vpstovtioa to oDaio a mph fi m on isetlertimui leads. boessed is Pesssytvaiia. MAs Apmaaeae k meaaaMW aa•Baya ablais a,dates arortpgaammi mm as bow rhea do Morttasa Conti $My Dote. he act om tone des a.aftW Utmost awed in to lxoty of Basic Praddan. M der peetaftnaa of waset me of am dab of deal" and tiaesd'vpon a XMW Bdk %ds e?ws and amAdow I V i?ayment tm+o of aot iaa than terry (30) peon, Buyer mart limey ad fully caanply with an n4unsh of tea leader Dom mart trot withdraw any wan g9tic Lion, meue my raa,numble m0s='mwt ud t pay aD teas ad Ch"M a0aa4slad to MR& applicW= and ooaWi mmL Seiler is tot ObUgMd m Pay say faaa. oast;, pdM at On eba gm is Donnedon wifo aueh aPpllntim err ooaeaibont, wolaw 8aliar ycaa a do ao ie writhes in edranoe. Buyer tataby arrdtaeiaee Dayat'a bktwg iswitanim eo rstaaaa as tidlar alt iafotmniop o0malead in aed t 0s 8 *%l a KWV applMOM &W. caaowma mat it Buyer Maim a Worop obaO to 16am1. >3t7er't del oa Dular ig respolo" fir' it is Buyae% 90 ?Y idea ie a dt?tYdt by Bu3w. If Bum don not abtais a xmtpp conEdtMot by &a Y DaIr, MqjK mg: (a) deaf b waive &a nosi?a cO y aid ooaePlaaa UMParahare withoart a marte.>e, or (b) nagaaat flit edkr named the ]w Af*W Camioeaeay DsK or (o) nagaeet aaaoeliaAon of dtie lldtaaaMM Ma nstm eras dePoaMa Paid, w4pk bstsnat or PM14 Air nquoto ast0ad _ Date at to cimcd this Arnmeat asast be is wdit :eeeivad by llnyar 1ui ttttsi Wa C7OUtucaoOy Daee and am coatain Oopias addooa0aaas powks6d appliadon fey t5a svotRgage aad tlnt tits aPpiiioati4o4 nos arlgtlrt is so IM- tiMarrttiaabL No arrarNme ooathgFWy wa be NOW" to a new data a dw "MmIl >P to by saw beteno me eft au0mt Koei a Comp Data is traolred. tf !A K 410010 os WdM dte MWWV aea- w 1 1,, &a d& A?aaeaaat VA r.mp& in fill fbaea witiapt atq onion" OodttiPauoy and bww mtuat p fsrmdv t fire putoa , tt Ba4i?'a app?tea it de0iad? err if Hayes ngisnl0 a agedi0 ft 1p fa t: tht Aioetga?e ' , at is tea, any sNst ettilttr ac (1) sad w Httyat'f depoWa wsAianc b10wa? M diner Dnyar in apply for a man" CeINIftlaat Ooraiga? with the t4tats of Ire AWa W to a y iWAItiao ttalee 0130% and Bayer agtaat aNr m *a* "Wfhb p? OttN at doOaas¦tte, fi r easa* wim and raasooabie segvess of that IMMW am M erg cwaaoaabia trn and on" Composed In do spoi0edw or (3) arm io WO back a PutdW aaoay AwOa ? at tb aloiK aed at the tyan peanaiYag sate or iosenat ie whioh V focwacd wiat do >noLss4 Old malt euo001s aD heave and doesiag" bl? 6dma b aeaits for lean 0oadosulis iatibs seotu?aty aaedoe(, V a m0atgaPe eommmo o is aot obaiaad aerie clap, (fib fts ftam foe dale of. ma named ac if Sabah alms sat to aloe back a ta0ttgttrr, >i" must tvluee di depo0it moaia tt? OUW wMMt iatrsst aadt & Agreem=vA b4 o[ao tbtgW OffWL lbo itnaan0a of a mol*W conmidaeea to B ayar which CIMMOMMS to dta abm fatale Ooosbpteoe etII Of ft >leaap0 $- M d Buyer is ntP?iand to so hnmod with des ptsoob M r to aaet+ a nonaaftuat )e btar wit>rdnm36 aseoded, taeabaad or if it Ispees fora W r4roq ieoaNditls but eat VA" b a A t & in Btgror"O f n@dd XWM (with &a amappoa of fan ad' 72,11FIll" Cam* or 8 mfr Mot to Id* easy of the mW4W rald4atse? nod con"M ftft 150 at an"MAiss ((kwkft Ora axis err foam of bwa'a pt?I done HaOrsor win 0etlts is deck if the d* Beyer TO ISO in 0" ,d foie Apoomaot. Ilme, to tm * aisle this in aooao mocwith 9* AV@WW t uf 1° 8c11w'a m (i) »>?toaiYtttBii4atioe: (? Dogmata S??with m0ttpco tads; Cm7 aMte?r ati 4adid4w aaO 4seti?euai4s 4ddte mmyage . (T) CORM&M wlth 3WK% 4ftbatr b p0ooeaa a ataaai mortgage appiipg4q it WFM* ttttoVDet?•vistauansa.deeae[tiad s (v) iooept a mmooablm mortpp oo>mt tumor (TOO nO* Saber In wthim& an at belie the WMIPP y bate drat a uwtpp aaaoaa == bm bees obtained, . sha oaN the s tm dO§dm by Rayar io waive the morVW eameimroq mad tics Aposomot " be in 61 offm wig l1w m Vpp eaabepemoy. Tbb oseaos tiro Hmyar nmK go AwMad aha the pawbom% *VW wFtLoat r mottpgt. It Buyer does not go fawwd wM dte P RiMMk &Uyer is in debaR IL Ai1GICrtN>s a B07M CMW "AiMa. NO a is mr way tsansitr tids AStmesoeet or any Wermm in ob A1eeosoae1 Aar dkmo m do a is a ddm& of BW. 7. DEFAM OF SUM It Mayor Nils ht m7 roam to maw pays =* violas may of fn lama mf tbis Awswam ar dame sot ems plaoa the paasiata mdw thla ASaeemmt, Boyer WW be in.ddmk, I SWO k is deimk. S aBr mqr touts perymemo medt by Dqw, but tat mote Gina to (10%) p woo of the pm'shme tom, Plea the mn okM pdoa ad ivy aptiaoa ar lift Ims bodied br selim Salim mill twalain sis user aif w as moma?ot of Ga purdmsm pries of s lgdinsd Gmmeps. Liq Msbd dmmgn an a And aeoonat paid to Ballet iMcb do pmdw a@= wbl be a nwomorb od ata ottba dsosSn iiHsrae iaDelb. trmee 8e8ais salad d?eaaSes aa<dtBiodt b oatatitiY6. ItSstiler dom a tibia mossy it tigsiialyd dnsoSesr this Amt aril be of me iim -bo off*% wd S*J wwm rt?wsato tiiayse vt sMmaiaio? aaoeey. if mq. S_ If Boyer alerts m Wwwot *PRO sdwv m lo*An a demo aerno m of mar d"MA mosia Wd oo *iK StA r w aani a Door- Gads dot Bayer lr soUtlaii w *o mto m al alt mow* t lolpdw It Y>t trwttc llatlo bat bSalet t)od to tamn ho and Dab of ? also be spood* lbr Solu% tmmoble attotmoy fam and comb ofoWt 9. 9ZLi.1r, S WAdU,IT•'JC TO DILIVRR MWD If Sdkfs *k is momm owblq ac if SdInt does not oompim or cmve3 do bolas within our (6) ttu aft of Ow Dobwed Cceoph6on Simon due so. mar easmm boym i SdWs oo=A Boom may aaaod dm ASpmwj M6 samtbt: dims by dalinsiq am rjtem melon of e*mm0Wm a =diet wiSda RAIN ti1Sl.odo or &ps shot at dot whisk i six (6) swells lltlmnrlaS M qw"d Mt deposit mon" paid WWW fm A? L wttbAromok os 9 ? eli sad d 1D oeiyobliaafom b r ow ? .nasal coat oArM?ie seeee8t sett ' s0?'e B's the sane y i won This Admmstaot will On bat w Botymr e&& if dds ,?yrrasmmt b sell o m*W w &M" *m tbm s wm nmsie in bm hm and e? led m m for Gibe ram SAga ? dw Bayer bees da a my simsigt allay . 'lb Cow* wbidt SnGw Adt, GUPm 10 um is ?r $ts nk ad e how m improved lead as tt? Pw'bd of tro W rain if Gismo ?ma mo ssaaoticipai>ad ab as tata? ootdtis ottia ooamol of wile. KHev B.i. Vim tans sod q@aMWm a it S[7'>i: fUrf& RR-OCCUPANCY CnON Bxcyw and BUWs aaota dm ace aot mowed to do our wmk in the low behm dw do ft Doa to amhW aad ieautmee sepswww, Bayer'a site iaspmcdom =Utto by sppovmaat Mai rRou by Salk 'i sapaaaatttstiva vaasha to the Lamle wdteo order ooombu*ou mm F nAw to t~o MvWu be w ** pwaoeopmey intpealm Brjer wawa mu liabwy toe wi dwuV or aymsiw drain aw oosmoompaaied A& A brae A of tbis Panpcapb is a dab& waft talc .4 0 put. 31 1 m tb do ft $dbr veil spaaly the dm md dm he BwWa vdk4 caudb aupeetioa aitbe Lomme: 73ae isecta w?h. in >iNlaehl ja0tmot, mast be osaAtlMed of trpaiad to esd* bttilfligp oode aWknoty Act stmdmnk wM be =wW oa a ptovmp Awy bmpocdm tgwt Aped by B"w mod ScHa Mit agmd mpoa ittaom will be rmI a I or ooa pW" by SAW at moos aspoisibla aftw ale dodos mdvM not pcerestt of May Sam ckshl. YU CX"RIcCBARGRSANDAwUUTMENM boyw dmU be spot" hr dl an ondead w M Wo*% Twas, anumuft aaso=mm inn. wow and, aiwa; sod 4"4m f of 90 PN=Yhvdm Rmfthy Tnodw Tax an to be mpPatn -d ac dbl. boatofm?adty whi bo ffarp by a m#l=d iafttat plat. Hiow "w. bdaae Ate ww a pbpt eam bmo atdimd ibr mwgp trwtoaslflm by )tmmmw in dnoomgM ft. a,WMp $aid bwr womo m eN will be of And for wwap dhpod. A dtat$a ibt aawapeA*" VM be bsfasa+e I Bages(46 md mq be aLatped st dodo& and any be p!l" is tapMr inmtaBaseea 16etaailer. 12. Q,JOSIN4' Qoaiat will ocamc a coats a4 poaaibla dw eo=pla m of do boat at the tim% dale and ph m set by 8e11er is a madoe a Bayac. Wbaa ao atwdaia4 do dale sod dace aftdmsite ii RM TM "• 7bk fat *9 DrAes Aftm to aloN st Ave aat tiatb 6 a bma md de fir* of Alf- The Rdbmtsd ( =D@M b S?deQ to Swm m1"y dlb& Bahms" m Dtle d Cafafv dke is atidaamod by A N=Poc-r or mimmo ?ds m 8ttrar eoomc Pam bm[orpoeats ice ?• m inNo dome dik cvm If al d to to, - oreteI f the at ot?i wpoa loans an PMm If lit i<omwe r idboos to aloam afm 1hQ damn aad alas TwWid by 3*w. at qs option Seller my afsa * he rWa in Patti 7 of Ibis I t m' ham 9vaw csimI Seller ax or baxate ? fat total xaae0mabia ar?in= amd mdrsioimin?tire vests ihr PAP 8 We riasft to awdw dm% data and plans sk by Seft. Dqu %pcxa Go Seger mqy camel my Time afthe Boom daft r1ophy. 13. TITLAAND lOSMSidN At tam aWm BWw w111 bm Siva poummion of do how aad $aBw w2 "m a Sped d Wscaaty DNd4 No IAMMftfrit of Ma ad flogws b RCiala m apan twAr Ottbe &D ptwdm pfd Tba arUibg sss of tiavmtf We Absefamt Compam, l Iodmst W Way Waa &toamaant, W OT724, me arm or no Asowiaaa 1`ido hlatatanma Oompaay, tb isaaoe tide in the hawse tacabiidaa awd and mmdm *W ,hh ' Bttyw b ssst mbk4pgsa tm abtaia lift hwa+mca fiam Oonaoat's Abamm Ommpomy, wbieb is alRad whb Saw. Title fta be Sue from all li= mad anaam6samm cmawt die fall fts: • reshictions, zcmorv docta, o0?lma?W. apammNt Ot masa®sma M taek* 1Qi.r ttdla vtN am adONWIu ma any statt of faca an acmde survey would Wnd; uniaig rspladooc, sestsictisss. Deslasom of Covmams mad Bast wbons, or ' Dwistsdpa for Bells Vida PI . m Cawuotq, 0 eppHMMr. and « nsoattnape or Hma which maybe addled ambsia6. 14. I= AND O't'l3 M CASUALTY Tiu H* of bee or dsm p to tho hu® byfne at ottsaalse until cleft is on Sd im If. IAC Dwpw busby tsdmisw seed pasta to Seller the itravoeil& ri* to attar lean, q, CIVQ ec MRft the Lame aed 00 istapaty for a period of two (1) yeas aSa the dale of daaia6 on prier eatiee to !layer led at ra wsubie ban (woept ha am of smarpq) fw the ooasplation of ocatiaoelloa, taptd<, ems.) ?oattloaa a purssunt to posomnoul abler of tagoiteme t. Ibis p?ision dtsdl scavive dome 11L DGU"TM b compinswe, oft Pedara) Usde Cemmissoo, lteph&u Rn1C 16 CF$ Pan 460, We fdlew inaussidou summtsles 1'adstisati in your ban Is fcsaishod. (A) Scam installs 13 atip11 wells w 9 In Gouda 36 w1dis (be COMW ad R value of adaidc well assaerbiy d thr. issoistioa cavity is I.16 in dw 3z4 walk mad 8-21.7 is *4 2x6 walla„ as appliaaAO and R-30 in edkp babes We space and )1-11 as ootahb bwona ma ban the baawssot and Sot Seem (1) 71m amr5ictmad tl?iclaasiss dime slaw type at iasctadas 4 asf 8mmA-13is3M,R11is31S";R-10a9W. 1?. >Gl+rI7RR AiC6 l MSPIlBBRWA7 WM 7bb Apace„ da Public Oft bq Sat>ssaat, say Let Disdanae Stalemeot pteaett I to Dom the oppca - dla plots Md atobbWB plan, ea6 my hiders to this Apmo mt or the Doouneanb„ ceetaic the patties' aqCkv I@esnr M Any US 11 aC OW Apttemo d is a d bk ft tselaas it Is im wzitiog sod dpod lry both Darya[ sad SdkL ilia Armemot is bbsp ft and in?ncs to the 1 -81 of tlrc perdas' tespeaSe lift >nooanosa, abdoleonaa sod roootdsd Iola cry psMie tea o[taw Par*wumad >srapbs s MkMA* deOft Apasuiss aq be ilssk Apwmss? dtat tby ttadarmMike Seller ssay sell sheilst huma at price his6s m loan ?aat tlds bowel pdoe. IL WARRANTM Seller MW peavidc, it ib owe cxpmec, a Home Boulder's Limn[ wanauy Vistaed by a I -, I I cheat am" as v ioe coepotatiaa. Sella wmom dw coast oath a at say ooawam i hr a puM of twp (3) years Sam the ddt of mmpialion of mob hdky sod OK fbsy we t# tat %* bowed tan. SalNt rmtresNS an fsllooriar to be Ree !icon tttaMM and 11 -j - dei'.bets hr a period of ate (1) you from tin data or posmulan or oloikw oulbcnldiscq M ""p, wdkwq% P11104 fmwft walie mid Foam if W. Shca wsssssstt that the bone is At for is lonodsd nsa Tl1B FOFMOPM WARBA'N' M AIM ttl wMaVaa<- aeiCosMeas c ) DIMSLY W LIEU OF ANY 07MM WARRANi'IB$, MMRBU OR UMM, 3RJDM. BY WAY OF TrI11 MATION AND NOT LB&TA'TION DOLM WARRAZ•TPtBS OF NUCHANrABRM AND OF Frl'NBSii POR A PARTWULAR f'UN 3ELLi 1t munft ASSUMS NOR AUTHOMM ANY P>3R MN TO ASSUMB Ka TT ANY t>?I?it LTA8RM IN CONNBCT UW WfTI[ IMM I M 8 OR U= DF TM MM 03L, 788 SBStDBfi1 U L UMLDD Q AND M AM t RSOV)r SOLD ROMMMM. AND TRW ARE NO AOAMRS OR WARRANTM5, anum ORAL OR WAMEN, COLI1 MAL TO OR STEM AGR1MUM. 19. MISiVDiERBB!lINTt?DELI.A VISTA IL+MNI?'ED GOpTg Up= olwioB of dt* Dorw will owmada f? bacme a toember or** Hdh Visa PL=mod cm 1 1ty. **& w® provide hr tae pmd maisawmm of aw acamnrawr taasadSmod rye, *wk* us& and @my Now • Ta9? bD'ttte Tanrmtalp, the asa:aeaeot and aaRaotiatt of =on= ogmmm, in ttttmxft" wilt ** Daoknft of Owcomak dta aeor$er of 'h Dada wRl be roosa d is the OM= of Cbuaty, tmoiy?lwo L M doeft iD - , o Areee with %c Dealt ollaa. Ssiia %VZ =am* an behdf of- *c Do& VIM PbuMd C motsotiq, a =a- ttrlieodaMr oo?lldiflt sf t?ma HumAed Dd1ms (Sit1Q0? to the vroridoj papist and operadop cu mme of the Bob Wile Pim w Cam uay. Ba<1?er trot StidLc'a ooite ataU wodta o?p !bt BciiQ acrd ho hpl °6liBetiopo. caMad fiderdwy 'tea, a NOWL 71Mt imatda naaaoaalo OW., =&wided loyalty, eao8dmtist?r and iirR diecleaare. 31. RBSTffiCii0Pi8 . D%w ac npowiedpa to it Is awm *a Bihar t3 ft Toad baa a r oo as lira amovmt of im 0 a m - avwotrp whath trop be hwmfltod as a pn pa W. To e m boomme, tae te:ietian =AY rgdn ?oopmy uwm to W* lidmo uminS edid.if thayr astirote' du cauvuctlen efsddidow itaytrviaao ft'm tooooitlod wo atpo" pmt ecru, per. Pofm and new adbuttd[W rt. NO BIODflnD[.A'1at]IiVS w ORDia TO E> mm -M CONS1gUGTItA,T AM ost.T UY (W YOUR NOh+>8, SW-M W" Mr AM= TO ANY lrH1DH+iC/lMM TO THIS AR r. Btn7lA 300= CgNMT AN ATTOMW REM4REWO TIC IXHM AND OWJD*,T10M OF BUM AM =LM UNDBR TM "MEMa Ul VVFPt'MB TINVEMM, the Palos aalernaEa have eel tbea hwh and =do the doy ad year wrinm bdoar. Men IG HOVNAN MN TSKI,V= MdNi2, t1,LC. BY / Its 1. Dde: HH*r leer aadcmdWaoe 7 AWbmiaed Ropmaeodivs O f G o6 (?` 04 I? 6 B"W date doa BUYER MLET READ NOTAC3Z TO PORCB4$68S ON NEXT PAGE AND EXECUTE A WT OF RZCWT -hTo l TO PURCBASM- P MUAM TO PBNNMVAMA LAW YOU RAVE THE RrjHT TO CANCEL. THM AGREBMBNT BY SBNDINO OR DBLtVEJUNG WRITTEN NOTICE OF CANCELLATION TO THE DEVM OPBR BY 14MNMM OF THE SEVENTH CALENDAR DAY FOLLOWD40 THE DAY ON WMCH YOU RECEIVE THE PUE= OFFERM STATE AS AC=40WL ' 'D ABOVE. SUC E CANC X LATION is W1IHC w PENALTY, AND AIL MONIIS PAS SHALT. BE PROMPTLY ]tEFL7NIW IN THEIR ENTIRETY IF TB E PUBLdC 01WR M STATBN(ENT is RBCNNW BY YOU MORE THAN SEVEN AAYS BEFORE SIGNING' TMS AGREEMENT, YOU CANNON CANCEL THIS CONTRACT. BUYER ACKNOWLEDGES RZCEIPT OB ,A, COPY OF THZ PUBLIC OF MRING STATEMENT OF BBLiA VWA PLANNED COMMUNITY, ON BUYER'S IIO'I7AL ]Qiov" a msu l W a.Ieicoa ADDMUMTOAt IT OF a*= DUCLOMM AND DUMS CONG7 UMG POSMMU Maio DA. / lo& TbisAddmd=Laarauadbrar1ES % i?loier ?uF C?' Y i (twl aeaas in wbieb ? r to b. tsiraq) (l+wh MW OEq "% ad r. Hoasmlea it S?Ua qe?, LLG pwAiv cad ,w, aoocv?rm?b.rib. t:..r.?eioa.?b ?ell?ao?efcl?i Y?eam wit ?aa ? d?wl?'1p G - adipil?ilMMlle?irmiuie?pWtlwad?n+eine?od,be"A? 'tbtJ??lf?t? of fibwapdot, mmly lift D UU IRBdUWM G POBSUMZrV OF MOLD AND OT®t MW CICAL DffURrfM MITALLY ZXIST WG W OR LATER DxvtlA3pnQG IN YOU R some SNNt b6l*y taiblpps,i"w" mmnwM ? t6 - 0 1 to w'mW my be ptseaal is &a newly aoaeteantndinee idmmmw ?e mt tae time di?i kww oow4ww? ar, Raat mum atom dm of 'a ie31ia1 oloopmsol am law dardsp wietiio me bkdw of tbat bees. Twit Nape 9 M*w cortttltetsdnw wasrao l 1o b lbe of odd w ott<KnmKalbr ac4wrio f bkh*W impm'ties. Moil it a oaluni oeoan* oepsoi m ad V'pm* wolf ooUaot and `Dear wbeusrat ba coo wAlm of eaobatw, -pale WOU11 l and wam ib ao?aiaL TrsO an ]atadoO I - me)La *sum& - atopodu of e 1 11 1 ID M *MOW. SOW Of *AM bdwm 1616 be imd b k ma ban acid dr?rs osttab ? %aft usda wos wm& mw PaPk t0. or Nyalep OYt" b eld b adddioo b mid, -eels`- obr wato?- dret a* doe, fillei. lisslsdel and POO= (agdsaiwb. "BW ogW b*w%se)nq Wn* Iwo Os bate we enrol *VAIMaa d alr a somw by nor NOW W" papl% aaimah of w}ometlle7a4ieoomabeppdWda?lowadbpnnriatLebamedase?rrois?mowd. A1a'U1R014, Dwscow barm"aa am aura al)lgoq a I&W lam o!lecta. Acoaffin to lams upwa. ooid ad ad w eldopiosl bWu*in an IOOi sk ant be can,&*, ly dir?iaats/. W nq be rdncod b9? wWw Doer maielmaom 7b dw% ZIW abMM (t) pefiem pniodle 10 Uqd o mM ar BWUS d 11 -1 ftas. (Z) remOae tboa eabmaon wbaa iaecocK ? m Prm iaeo& bwmdea to am vbM* n - (ftm mai,,a Ise ID MM KBor DdlaVibouat1 aad mddms vowth} You dMM rqw am aoaietasa btntiac bA no the be= xhiab ie aped or wbiob bd hw rod is paw so re scut of woiswe4 We twotttaaaod yo oeatact a homed east saw ft edOM bs Zatae! !bm MPM WUda. A&WO111el Wb[MWieq awry k ewWWAG Ban dte United States RateedooAsency aestata and lug eutboeides. eedpd you and b elect evbeegwt owaree or aKaipsate of your boos >D tbio Dsdaeao>r To baMbr apses tbat eitbtrptier to of aid+eequeb to dosit&9dW sq iwbA Qn tbs bandty t?4 .. I or *boom cfteote, cc **a taidbb baedoae Is tba bmi) a peataumt ruaadw of tba Swd b soodoslay MR' .-N, for rho pwemce of asold aadlar odwslolaelcal Istpudda. 'All Br. KHnaa"atM wcSp bsL X- 6106 13?r ( ) .. :64 (Deb) EHwBe&vvhtoneeadoaaAWoos to BELLA VISTA PLANNED COAMUNMY ADDENDUM TO A(REE?!Ith T 09 SALE Arifn S MOO AMOK AD1flMUM TbisAddMW=106 awcated J6mWL& ,s 1 n9wh4cit C Qxrels o&(ad (1107601 (FO1laatae in wbiah the: is tO bs w=) sad L Qa? d SikarS da& LL.CAmmio albd"Sdw-), is motored iaao aid, oris eo?aeliao wM Gd Pardons Apo=mo batweea Dom and BAK, der =ii1r a dbythk Aie+?easb"Wealed-t Iteod(baraisalb tm*Caaars M 7boCotticact applfaadeatfimptev paopaetydemsibedw: Lot NmbSC cv%n9 , bid* TOftAhip of gilrer SpdV& Coantyof Cmabm%ndL cnmunaawatdtofl%mmjylsaaia, lYsrruB dre sueaaderasofAfalk ?11w"bR.. >? . As s mawrid kdoo m aat b *a Sella to sell m the Buyer the Property, Buys sdbm A=4m and Asian le flee tioltowbw. ba ceder m swoomp "aslation sad to p wwide a dmbil=W m moony of pdntarily owsss- aoosplad boaur, Shcw dais to sQ boost only to bnyees who wilt a" tiro Psaperly hr a paaiod of at Isast aaa (1) Tar. 'gybes, m otdaao iadyaa Solfa b epw m self ?e Ptopeety b Hayes. Sayer sap moots mad agm a as hdown: Owaeseie of ngo tv ter ON (11 Yea. Buyar-ropnama and wan ow to Sena that Boyar drill Sot aeaip or ~ to leader BUYS& ZVO ender the COMM or eora iaae omeyslew typo of eoa b o, P ft tlm ais a odw ttS dw of the lmpeiyr TA kb <rOStd nadt In >P<tyat'ti d<tlata tD bold tWx FOtelte is he dwk amd ma tea PtapKi y Inc a pabd of at Last come (1) Yaw hate tes oIWU of BMW% p 'IN I of do Ptnp wW (boMb restttied ton *6.0wawddp Perbd"). Mw pip Miler of Gb pat%IMVYald the aaa m y of the above repruma dooa and wunWm vlatdilals a aovaami of Bttya'md a omdith oprooolm to wear's perfammtmce tailor the Cootie& 2. in, Any assiporfseat by Bayer or.ttaegpt w assign caret's rigo sender the Corn od and Al a odmwin tcaoeber tea Pmpegy plow to doato8 hoc tee nk of tits Psapaij shall com M on bosh (a,1 a walwwltraa FA Often C okw% a od ft $elliec, at Ur ob doodo% to Umminab aw co~ old satmn bo aft dapoeit ptasaast to tee aam, of tee Ow tact, and (b) toe fdblra a(& eottdiliOR prooadaat ID Sdiw" s oblitadw to lllie+Bdls vise.saas aadennddose sed the Property to Buyer. Sallsi's aemadim sm not limited m pipe to dye elosiag of Propacty to Bayer. U Bsdw haesrclya the povisioat of ddo Addmdnm and Boyce closes, Sa11er stall tlmuffit e: be limited to dw remooa "Umdw PusBt eph 3, below. 3. to Cbmhw Dump bw "b dddp' simatiaas as de mtmd b Praegraph 7, ssy sels air edw tr -, - & r by Boyar saider whidu Dayor u mohn fm skq% tbie to dsa P cwKt? prior to dye a om of th Owacnbip Period shall ema ilm a samorAl bsfstfed of at COW" Any such nwtetid kmach"sadde Scilo r b noovar fiom Bum ow ad all dammos. inobudms reasomsblp attorneys fee4 arm" fiam Buyer's breaeb. 4. Halm ac =WAd$w did be parpose of this Addendum is b comor rfd8 Sdioft i,ta om ID sed hoosaa only to bayets who wm s=#My mein 1 4 of *W belmw dwing dye Owmcd3ip Period $aralp? prww sad atdM prq)tAy w-nW ht pmmu t nsidasss. Boyar apses the the Peen= and rsslriodnas ant fro iA dris Add=&= do not ommime an wrom able rawalm epos aHmadon of die prapatp. 5. AU otthe eovmaps omylsiaad hatain aba0 aucvive the tWiwsy sad tatysrdssiamof th dead t tl?e Property iram Seifrer b Keyes. The ysovidms of deia Ade wbw shit bo iadspendmt a>,d severable, sad a deEmdontiaq of Vic aft- P? biee < evf obdwR i sot a She ravabddy or of say an pswidom at porfi ! 1 e Qoypr, vadit or eof rca6?r of any other passrisian of dde ortb 6. MMINok* Boysr hereby adtlmomlo fte s ad ogres dot a vWmioo of dim Addmckm by Hopm alsdl sot defeat: or nods kvdW the lips of any Salt wattage mode in pod US lad flier value by Buyer. and dot as swomals ned pmvidoaa of this Addit&m ANd be isfa t and aabanNoae b *a liar of any snob first came ieaet le ouanmrwl r vela the deed conveying the rropcrty m sayer. 7. Tie fWkmft gents dwU be loaned to cooslibda'hrdstifp" dtmdm =dw wtdoh Dow our 04 twok, or mdv dimm (coloodVab, an lropaiy pdor w hoMbg d 04 oad o s, Ibc Pwpartty?8oc a pedod of ow (1) yew spas dodax 1. A' R ckbaa IIom dw dum of Buyec', 2. A Trrdsr by Boyar vAm os the spouse of Buyer boo mm as only co-owner of dye hopcrly wish Bays r, 3. A Tnafr mulf'ma Sm a douse of d4sobdian at•nseigp or lepl aspatatian or Bom a Pmpury nulsamut ivvaaeat hwidsot ea soeb chorea; 4. A Tsanok'by Bayer into a rwoWAc Ww vim* tour is which Boyar is a banaUeiry: 3. A T1fae t. aameyamv. piadpk mdp m at odw hypad?aertian of #A Proprtyto some the pcdoumm of an ablipdoa, wbleh translat, cow yappe. xRGv Hds viva ftmmsod caodme 12 pkdM auigoznait w kpadmestWo will be rdeand or ceccoveped xqm the oowoeb a of suchperfasmsnce 6. A IU=ta by Boyrr whore oeoepuy to aceammodmic a nrodrooty j& tomooft required by Bnyals ro *oyer (cot iodndint Bayer. ff Buyer is self-mopkyoo: 7. A T msfar mcmikbd by a< modkal of finaa m rmatteocy, proof of which amerymcy has bean deliveaed to Seller, rod bw been apptovpl by Seber in im reaemsbte dieaetou; 8. A Tt v6rr which, io the n=ow&le jadBmmt of Sdkr, comflodae s 9swdt*o siuradm eot dow with die k*mdaas cf Ws Addwdum aoyw sdmosledIp due (U Ayer bw seed do psovieiom of -*b Addeadrm, (b) Boyer vadeasteeds die ruvirioes of dais Addeadam nd OXW *W W COMMON% and (e) Beyer rcloussA_gn *Mao np m mtetloa, wommay or o6or promiw Dior coriodoed in d& Adbodeot} het lem Dade to BYyar by my employee, abs steot or npteaate W of Sdfm WOR wbieh Buyer b rdyiet bt comee6ao witb Bayer's p xcbrrs of die Pmpaty. IBB TWM AND CONDMONS OF THIS ADDENDUM ARE HEREBY ACCEPTED AND DADS A BA&T OF THS CONPRACI' llr liovaadra es Silva: splk$,"C, a PO=Wvada owbed HdAfty Murray Ln& U& mica U Xmw tt k v%m a rad aoadk m is BELIL A VISTA PJ ANNED CObgdUNrrY X HOVNANIAN AT SILVM SPRING, L.L.C. DLSCLOSM STATIMM FOR LOT CONJDrr 1dS A camber of hitters abort fie an and eyoyoaoat of tM property an which you dare dbaoatl to llhibd yeatr isaaw Far esampk thars Is a Deckradm forth eft Pieta 17ommed Camiwttatq CBMI etattrfa'q, llikh lift been, or will he. reosrded im the O18ee of the Mweder of Daatls of CtWwload Catoq, Petattsylratfioi a o+7 ettea Do dwadm b prod" dome WU dth 4inlmn sb autumn. Year hams bulldar, I K, SOVAmalma at 52w Spebtg, I- L,c l lbvam ha') roewresn& tltatywt ardor a aflsaeeeaa N tfatarnim the eoveasta„ r4dr'idbas. saoeaeob, t iatgas sad Om that stay atllat 7W propam. The Sim 0o068=600, topammoy and other natural ooa I'do s or your lot. a id lib model you dm m% luny atlbot your an of do peope:tty and year Aft to halm mean addatiooa and bnprWveare t X lieruus M INIPM fiat yam renew &a Te niip appwrod subdivision guano CVW place") 3aooas0 i• dta talus oftioa t0 araVt you i1? Aotmai &g the dyM lot Ar par hMma ed tip. Wm taniawlog don plans, piano boar lammed do tits lied V WU and cJeeriag of yarn lot and mt m* dW=m may be due m *a ooardoar emoouttmted during cooetttretioa 'line eamge may lACtaOa bat trot b lisitod to: totatoiag W" VmdbL r hOc 8 stalty eaaeofotr, udlfty tafrbeftm% "cam: loco" of boom Iftme arms ou®ottsdi C your bow ry be d_mud caL Dam modhor kvd? by K. anommima. Tbis mimes that dace mq not be laws or ymd areas snoottodbrg ymr boon m tabk for aalvidas tMt mMy typioa>lyr ba smdsoard is oue6 atsaa. Fur as+urpk, Ana to ar4ud feeeaeo of the taro amromdioD yoor Noma. tbtso lay abt ba aawa ouitablt for`plrsfiog lbws or ate ate, "ddoe 6 km kmft% i mob a Poob and Patios. Yoeahenld do be awart *1 &o Moving. t) xeiftw the developer am its sass roinum atiraa make any rMuctastloms concerning; yt,t? ability a tas yoerpopaty other m.¦ tisane oou net ibrth in rids Disdaaoa Snewrle>tt sad the ?alma ad CoadNtma t'urcbar AB?m ?'ADepna?. Z) Yoe mod to darmim drr ytsttself ym WOW to mob kWonmeott to yow pmpny atker yon Close tide. !or yott doWd oduv your am Wookpim by consulting with is ytptopisla paaiwlanab n to your ability vo c A CAMI Ne! a awia JIMhW pool, loom ad3ttiooa, taorada shad, dock petim, rte. 3) Thu cidd Coe of aasentanb, wotla*4 setbacla, dniup swim amour, ntuming WdW6 barmy at GOer *K uns (Eat mawk. to allow iorlsW= no ma aaa of swam WNW awmtgaranc swain. of otbar impravamada, oobVIrtaoe ooaitmy? lower bm% and Other types of aooeosimw) at drpbtad on t a Wpom dW sad subdivision plats may acct your abWtr tct mane oarotlpi impmrenmis to ytwr papeq. Yoa dmildbo aware KHov hallo VIE vi I MOM eaodit M 14 ' tbot yard arson aft doped to so mmamwwm drainage from ym lot as well as from a4oWog propestiea. - 4) The wo mbw. tYpt nand the location of plantiep an the lot my have been squired by the appkovab granted by Sihw Spring Taw mhip. Yon dtoadd inspea tho l mdacapt plan in the Bob* Gfrme to ddw dsa if saoh will afieot lot saiabaity. 5) No amaamptkm dmmld ba ands wM istpaot to On flatness at atsepmaas of gmda, and exiaoios IIIa-- one on your lot. Bold existing and ragnirod adopaa and gmd% a wall m Sail P m 0 AM I atr. wW Dave m cffmt on the tloal grids coaditiaaa mhWa for yvor italded we sad a dw namt of the property. You my or may not tied thane Sad Vaft and vetemire aooalitiom as tabk for yaw micudod one and Woymaat of d w pApaty. A aarelid tet+iaw ofthe aab&viim nod gm&o$ plane locatod in the sake cake by saaeent wmpaowa, emlavtow mach pbea m aootaaaty to aasaaiain the proposed grade 00446ao8 that d+e mtpeatoed tm eraiet upon oanplatloaof gta?g twrd Landaarapia= (eabj.tt tD eme?or c3snges dada to rile conft m asabuntarad dating oono merlon, as notes Wm), Emang a fbta m Silver Sp %g Towaft or anther rah bd= m*d pment the placement or shuchnu such aspools and dtdcs hi nth wow. drosiWa ad vdifty o roaeuat, Wmbng but tx* ba w to doers, fue ba dmm and tdspbomt podab& It is poasibk mat am or more of dwn iaxma may be loearadonyanr tot. . 7) Any avvaar v bo wisban to aomaaw addWaad iaa>ptuvamsaa an chair lot u advised to casawt SHw 9pdag Twos** befare procasdh* More speci8cjr, is order m oaasataaot m additias m a Loma a olhar o[imptotreeacaaas a lot, it miL t be naccemry to obtmn veaiaooe relief from the eb Township Zm ft Em dxm sound or f km the Silver Stmaag TOWN* Boatel of S wwnaas. 8) Oaasas at LM my ps b*Lbd fvm eoamhw ft nay impWwen mts within the U01h of the watdaade ea or t aesstt b their resltmotire Lob. Nam Ike Amoeiation not may Own shall un or tasrot or phnonit to be weds l tmW&ft witNa nay areo shown ao tine Pram as wtd mdl% a?haI= in OM Synge or as a IA*. aaar abaft tba Aaaoaidion or any Owner -ree is ww PAM audfar ffift or odterr dbtedma of at wodamd was, except as mar be permitted by tw l!enmyivada Depatutnaat of BaviaorAMj l pmbo&u unakt appBaahie law. 9) Ptatbw. as addAielod by the Dtxbntion, to my of the lots in due appro-,ad mAdivlslon am due atbjmtt of -11 to eewar oemommt. I have read be coatm a of data bladdwwa SMUm m sad nodsrstmagd IL I Lave been iumbucted that a dwwom h rem of the Subdhidon nm for Bdla Viete Pleased C,oearaa why art tune approval documna ffi tbeir tMathtV are accessary to ondsrstard Ike asanasa b wMA vwIm cuwmmkty resbidioas of vaned and tke cosdltiotes may NOW tM ptroWty and ib tam. 1 uadtnhmd dW k is my KR-i'dhr vlmwm sad ota m- is respoadbOity to seek the assistance and advice of an attarney our athw prpfesdotLah In ro iewing these disclosure dewmentL 0 XBov tiffs Meat um ¦ad commons BELLA VISTA PLANNZD CON MTJNrrY ADDENDUM TO AGREEMF,NT OF SALE PLANNED COMMUNM ADDENDUM Tbis Addendum, executedbv;"y Asit MM" S._L1j.AAftJL 00rein called (Buyer") (Fu11 name in which title is to be taloem) and K. Hovnanian at Silver SpriM& L.L,C.(bmk called " SeIIe % is entered into concurrently with, or m won with that Purchase-Agra meat between Buyer and Seller, dated -4 1& Zr, and by this refmwoe is made a part thereof (herein called, the "Contract"}. The Contact applies to that improved property des6nIxd as: Lot Number: c=q _ in the Township of Silver Spring, County of Cproberlsnd, Commonwealth of pennsylvania, having the street address of 3S &NIA 1 t o -R f Yl rl 1 (herein called, the "Property"). t •7o31S- As a material inducement to. the SeIle r to sell to the Buyer the Property, Buyer aclonowladges and agreW to the followhtg: Buyer aclmowledges that Seller is socking approval from the Township to permit the establishment of a Homeowners' Association lhat will, among other things, maintain the stor nwater management system on the Property.. The dutles. and obligatie = of the Henaneowneis' Association are set forth in the Publio Offering Stateneal, .a copy of which the Buyer received with the Contract Buyer agrees that if the Seller is nneW to obtain Township approval for the Homeowners' Anociatloz6 and each property owner will be responsible to maintain all improvememb on its poevperry, which potentially include ern hen that rovauld be assigned to the Homeowness' Associadan, Buyer is still obligated to put-chase the Property in accardaace with the Agreomemt Buyer agrees that he or she has evaluated the4 merits of &a purchase of the property as a part of a Homeowners' Association #ad as a fee simple lot•that is not a part of any plauu wd community. Buyer acknowledges that (a) Buyer has read the Fovisio ns of this Addendum, (b) Buyer uaderstaceds the provisions of this Addendum and agrees -they are resaonable, and (c) Buyer acknowledges that no representation, wanamy'or other promise not contained in this Addendum has been made to Buyer by any employee, sales agent or rope antative of Seller upon which Buyer is re lying in conneodon with Buyefs pu rdbm of the Property. THE TMUG AND COND MONS •OF THIS ADDENDUM AIRE HEREBYACCT = AND MADE A PART OF THE CONTRACT R. Hovnanian at silver Spring, L.I..C., a Pennsylvania limited liability company KHQV sells Vierta W= and ooadittow Ai. A Signatum Buyer Signature 17 f,7x k, bI' ? B Preaared By: Michael R Macaninch, Esq., c% K. Hovnanian Homes 1170 Wheeler Way, Suite 200 Langhorne, PA 19047 (215) 478-9400 Record and Return to: 2006 OCT 27 Am 8 59 DEED THIS INDENTURE MADE THIS DAY, 10/26/06 BETWEEN K. HOVNANIAN AT SILVER SPRING, L.L.C., a Pennsylvania limited liability company, whose office is located at 1170 Wheeler Way,, Suite 200, Langhorne, PA 19047. (hereinafter called the Grantor), of the one part, and P -Jn JamesAO'Gradyiand Florence O'Grady, as husband and wife. (hereinafter called the Grantee(s), of the other part, about to reside at 35 Bella Vista Drive, Silver Spring, Pennsylvania WITNESSETH, That the said Grantor, for and in consideration of the sum of $498,935.00 Dollars lawful money of the United States of America, unto it well and truly paid by the said Grantee(s), at or before the sealing and delivery hereof, the receipt whereof is hereby acknowledged, by these presents grants, sells, conveys and transfers ownership of the property known as Lot in Bella Vista, a Planned Community, Silver Spring Township, Cumberland County, Pennsylvania as more fully described on Exhibit "A" attached hereto unto the said Grantee(s) his/her/their heirs, successors, and assigns forever. THIS CONVEYANCE IS subject to the terms, limitations, conditions, covenants, restrictions, and other provisions of the Declaration of Bella Vista, a Planned Community recorded October 25, 2006 as Document No. in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania as amended from time to time. TO HAVE AND TO HOLD the said lot above described, with the messuage or tenement thereon erected, hereditaments and premises hereby granted, or mentioned and intended so to be, with the appurtenances, unto the said Grantee(s); his/her/their heirs and assigns, forever. UNDER AND SUBJECT, nevertheless to certain conditions and restrictions of record, as aforesaid. AND the said. Grantor, for itself, its successors and assigns, does covenant, promise and agree, to and with the said Grantee(s), his/her/their heirs and assigns, by these presents, that it, the said Grantor and its successors and assigns, all and singular the hereditaments and premises hereby granted or mentioned and intended so to be, with the appurtenances, unto the said Grantee(s), his/her/their heirs and assigns, against it, the said Grantor and its successors and assigns, and against all and every person and person whomsoever lawfully claiming or to claim the same or any part thereof, by, from or under him, her, them or any of them, shall and will, subject as aforesaid, WARRANT and forever DEFEND. The Grantor specially warrants the property conveyed by this Deed. This Deed has been signed and attested to by an authorized representative of the Grantor. K. HOVNANIAN AT SILVER SPRING, L.L.C., Grantor by: K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC., MANAGING MEMBER BY: a S. Platt, Authoriz6d Representative STATE OF ) )SS: COUNTY OF ) On this day, 10/26/06, Pamela S. Platt, personally appeared before me and acknowledged under oath that she is the Authorized Representative of K. HOVNANIAN AT SILVER SPRING, L.L.C., a Pennsylvania limited liability company, the Grantor in this Deed, and that this Deed was signed and delivered by the Grantor as its voluntary act, which act was properly authorized by the Grantor. Sworn and subscribed to before me this date aforesaid. o ary Public / My commission expires: lD 20 40"EALTH OF MENNSYLVANIA Seal Coben k K Rj* Fab Twp., g? EOW Jue 10, 2007 member P&ww#," Amdadon Of Nobft PREMISES: The address of the above-named Grantee is 35 Bella Vista Drive, Si've @" PA. r'70.'S_ Le) All that certain tract, piece or parcel of land, and the improvements thereon erected, situation in the Township of Silver Spring, County of Cumberland and Commonwealth of Pennsylvania, described as follows: BEING known and designated as Lot 9 on that certain plan entitled, "Final Subdivision Plan for Bella Vista Located in Silver Spring Township, Cumberland County, PA", prepared by R. J. Fisher & Associates, New Cumberland, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, PA on August 22, 2005, in Book 91, Page 32. BEING part of the same premises which Mark X. DiSanto and John M. DiSanto conveyed to K. Hovnanian at Silver Spring, L.L.C. a Pennsylvania limited liability company, by Deed dated February 17, 2006, and recorded March 10, 2006 in the office of the Recorder of Deeds in and for Cumberland County in Book 273, page 2528, in fee. Mod roe ®fl913A33H S3/N39 00009 x II n N G p rM S ; Q AsV O n CAA . g Sy O-x g V N N D N O ? n O 0 O 0 f 0 ? c C K WOO (D C-" 6 G5 ? m !v N <r ca -n C- 3 .??0 N D cD 0 cn 0 D ? > r o V 0 c = o z Ei? ? R A ? N N cn W v c? (A D 3 ch ? < O c D 0 +a 1 at c c 0 00 - z a ?i c W O 3 n 0 z 0 o - A z y 3 4 F 14 az 3 N g - c m J Q J N r O C7 0 3 1..... -! HOME BUILDER'S LIMITED WARRANTY Administered by Professional Warranty Service Corporation Throughout this HOME BUILDER'S LIMITED WARRANTY, referred to hereinafter as the "LIMITED WARRANTY", the words "YOU" and "YOUR" refer to the HOMEOWNER and HOMEOWNERS ASSOCIATION. The words "WE", "US" and "OUR" refer to the BUILDER. The other words and phrases which appear in boldface uppercase type also have special meaning. Refer to the Section X. Definitions, so that YOU will understand the terminology applicable to this LIMITED WARRANTY. This LIMITED WARRANTY establishes an agreed method for determining when a CONSTRUCTION DEFECT exists and a clear understanding of OUR responsibilities for remedying any such CONSTRUCTION DEFECT. This LIMITED WARRANTY also helps distinguish a CONSTRUCTION DEFECT that is OUR responsibility from those minor imperfections that can reasonably be expected in a HOME or the COMMON ELEMENTS or result from normal wear and tear or are routine HOMEOWNER or HOMEOWNERS ASSOCIATION maintenance responsibilities. This LIMITED WARRANTY contains the procedures YOU must use to notify US of a condition in YOUR HOME or the COMMON ELEMENTS which YOU believe may constitute a CONSTRUCTION DEFECT. In the event a condition occurs in the HOME or the COMMON ELEMENTS that YOU believe may constitute a CONSTRUCTION DEFECT, YOU agree to submit any request for warranty performance under this LIMITED WARRANTY. Based on the information YOU provide, and where WE deem it necessary information obtained from OUR onsite investigation inspection and/or testing of the HOME or the COMMON ELEMENTS, WE will determine whether WE agree with YOU that the condition constitutes a CONSTRUCTION DEFECT. If WE determine that the condition reported by YOU is a CONSTRUCTION DEFECT, WE will remedy the condition in accordance with the remedies prescribed in this LIMITED WARRANTY. WE. will make this determination in accordance with Section 111, OUR Coverage Obligations, contained in this LIMITED WARRANTY. If WE determine that a condition does not constitute a CONSTRUCTION DEFECT that is OUR responsibility and therefore deny YOUR request for warranty performance, YOU have the right to initiate binding arbitration that will irrevocably determine whether the condition constitutes a CONSTRUCTION DEFECT that is OUR responsibility. If this binding arbitration determines that the condition does constitute a CONSTRUCTION DEFECT that is OUR responsibility, WE will resolve the problem in accordance with the remedies prescribed in this LIMITED WARRANTY. The arbitrator will make a determination based on the language contained in Section III, OUR Coverage Obligations. Enclosed with this LIMITED WARRANTY is a Limited Warranty Validation Form. The Limited Warranty Validation Form provides the dates on which the warranty coverage period begins and expires. It is important that this form is retained with the LIrTED WARRANTY. Liability under this LIMITED WARRANTY is limited to the amount shown on the Limited Warranty Validation Form. All express or implied warranties other than this LIMITED WARRANTY, including any oral or written statement or representation made by US or any other person, and any implied warranty of habitability, merchantability or fitness, are hereby disclaimed by US and are waived by YOU. In addition, YOU waive the right to seek damages or other legal or equitable remedies from US, OUR contractor, subcontractors, agents, vendors, suppliers, design professionals and materialmen, under any other common law or statutory theory of liability, including but not limited to negligence and strict liability. YOUR only remedy in the event of a CONSTRUCTION DEFECT in or to the HOME or the COMMON ELEMENTS or to the real property on which the HOME or the COMMON ELEMENTS is situated is the coverage provided to YOU under this LIMITED WARRANTY. There may be instances where an additional PWC administered Builder's Limited Warranty is issued together with this LIMITED WARRANTY. If both of these warranties are issued to YOU, YOU agree to request warranty performance under either warranty relative to warrantable issues on the HOME br the COMMON ELEMENTS. YOU may not collect twice relative to the same defect and amounts paid or expended by US for warranty performance under either warranty will reduce the limit of liability remaining ender both warranties simultaneously. WE have contracted with PWC for certain administrative services relative to this LIMITED WARRANTY. PWC's sole responsibility is to provide administrative services. Under no circumstances or conditions is PWC responsible for fulfilling OUR obligations under this LIMITED WARRANTY. If any provision of this LIMITED WARRANTY is determined to be unenforceable, such a determination will not affect the remaining provisions. If this LIMITED WARRANTY or any provision herein is determined to be unenforceable as to a HOMEOWNERS ASSOCIATION or a specific HOMEOWNER, such a determination will not affect the enforceability of this LIMITED WARRANTY or such provision as to any other HOMEOWNERS ASSOCIATION or any other HOMEOWNER. The issue of enforceability, as well as all other issues, will be determined by Binding Arbitration as provided for in this LIMITED WARRANTY. 1. Coverage Limit The amount shown on the Limited Warranty Validation Form is OUR limit of liability. It is the most WE will pay or expend for all covered CONSTRUCTION DEFECTS regardless of the number of requests for warranty performance made against this LIMITED WARRANTY. Once OUR limit of liability has been paid, no further requests for warranty performance can be made against this LIMITED WARRANTY or any other PWC administered Builder's Limited Warranty issued for the HOME or the COMMON ELEMENTS. 11. Warranty Coverage Coverage under this LIMITED WARRANTY is expressly limited to CONSTRUCTION DEFECTS which occur during the WARRANTY PERIOD indicated on the Limited Warranty Validation Form and are reported by YOU in accordance with the notification requirements of Section VII, Procedure to Request US To Perform Under This LIMITED WARRANTY. Coverage During the WARRANTY PERIOD indicated on the Limited Warranty Validation Form that is attached to and made part of this LIMITED WARRANTY, WE warrant the HOME and the COMMON ELEMENTS will be free of CONSTRUCTION DEFECTS. To be eligible for coverage WE must receive written notice from YOU of the alleged CONSTRUCTION DEFECT as soon as it is reasonably possible after YOU have become aware or should have become aware of a CONSTRUCTION DEFECT but in no event later than thirty (30) days after the expiration of the coverage. 111. OUR Coverage Obligations All notices of alleged CONSTRUCTION DEFECTS, and complaints under this LIMITED WARRANTY must be made by YOU in writing. Telephonic or face-to-face discussion will not protect YOUR rights under this LIMITED WARRANTY (see Section VII, Procedure to Request US To Perform Under This LIMITED WARRANTY). In,the event YOU -allege a -CONSTRUCTION DEFECT occurs during.the WARRANTY PERIOD, upon receiving written notice from YOU, WE, or a third party designated by US or acting on OUR behalf, will inspect, investigate and/or test (including destructive testing) the alleged CONSTRUCTION DEFECT to determine if a CONSTRUCTION DEFECT exists. Upon confirmation of a CONSTRUCTION DEFECT, WE, or a third party designated by US or acting on OUR behalf, will (1) repair or replace the CONSTRUCTION DEFECT, (2) pay to YOU the actual amount it would cost US to repair or replace the CONSTRUCTION DEFECT or (3) PAY to YOU an amount equal to the diminution in fair market value caused by the CONSTRUCTION DEFECT. The decision to repair, replace, or to make payment to YOU is at OUR or OUR authorized representative's sole option. WE will have been considered to have breached this LIMITED WARRANTY only if WE flail to resolve a CONSTRUCTION DEFECT in accordance with the terms and conditions of this LIMITED WARRANTY. A. Standards By Which the Prownce of a CONSTRUCTION DEFECT WUI Be Determined In the event YOU bellows that a Claw in the HOME or the COMMON ELEMENTS constitutes s CONSTRUCTION DEFECT, the bNowing facers will be considered by US In determining whether the condition constitutes a CONSTRUCTION DEFECT. Should either YOU or WE elect to initiate binding arbitration, these factors will be considered by the arbitrator in rendering a decision: 1. Any performance standards or guidelines or other documents or manuals that contain OUR building standards, #0 were provided to YOU at or prior to dosing on the HOME, or in the case of the HOMEOWNERS ASSOCIATION, Prior to trarwterring We 10 all the COMMON ELEMENTS. Abserit such standards. the Residential Construction Performance Gui k*m published by the National Association of Home Builders, in effect at the time of dosing on the HOME, or in the ewe of the HOMEOWNERS ASSOCIATION, at the time of transferring title ID all the COMMON ELEMENTS shall apply. Absent a specific standard in the documents identified above, building Practices and standards in use In the region of the country in which the HOME or the COMMON ELEMENTS are located shall apply; 2. Consideration as to whether the magnitude of the flaw or imperfection: • materially afhft the structural integrity of the HOME or CONM M ELEMENTS; or • has an obvious and material negative impact on the appearance of the HOME or COMMON ELEMENTS; or • jeopardizes the life or safety of the occupants; or • results in the inability of the HOME or the applicable COMMON ELEMENTS to provide the functions that can reasonably be expected in such a HOME or COMMON ELEMENT. 3. Consideration as to whether a condition is the result of normal wear and tear (conditions that are normal wear and tear, or are caused by normal wear and tear are not CONSTRUCTION DEFECTS); 4. Consideration as to whettwthe condition was caused by, or in any way resulted from, the failure of the HOMEOWNER or HOMEOWNERS ASSOCIATION to perform normal or routine maintenance (any condition that is determined to be a HOMEOWNER or HOMEOWNERS ASSOCIATION maintenance issue, or any condition that results from improper or inadequate HOMEOWNER or HOMEOWNERS ASSOCIATION maintenance, is not a CONSTRUCTION DEFECT); 5. Consideration as to whether the condition was caused by the HOMEOWNER or HOMEOWNERS ASSOCIATION or their representatives, other than US, after the HOMEOWNER took possession of the HOME or the COMMON ELEMENTS (WE and YOU conducted a waNk through inspection lust prior to dosing on the HOME. Damage that was caused by YOU or YOUR representatives is not a CONSTRUCTION DEFECT, for example, a large, visible scratch on marble tile in the entry foyer that was not noted in the walk through inspection, but was reported after furniture was moved into the HOME, will not be considered a CONSTRUCTION DEFECT); 6. Recognition that any condition resulting directly or im*ecdy from or worsened by changes, additions. alterations or other actions or omissions by the HOMEOWNER or HOMEOWNERS ASSOCIATION or their agents. other than US. will not be considered a CONSTRUCTION DEFECT (this includes changes to the topography, drainage or grade of the property); 7. Any Exclusions contained in this LIMITED WARRANTY. IV. Homeowner Maintenance Obligations Maintenance of the HOME and the COMMON ELEMENTS is YOUR responsibility. All homes and common elements require periodic maintenance to prevent premature deterioration, water intrusion and to ensure adequate performance of the SYSTEMS. WE will make a "Homeowner Maintenance Manual" or similar publication available to YOU upon request. Whether from this document or others that are readily available to YOU, YOU must understand and perform the maintenance that the HOME and COMMON ELEMENTS require. As stated in other sections of this LIMITED WARRANTY, WE are not responsible for HOME or COMMON ELEMENTS maintenance issues or for damage that results from YOUR failure to maintain the HOME or the COMMON ELEMENTS. V. Coverage Limitations When WE or a third party designated by US or acting on OUR behalf, repair or replace a CONSTRUCTION DEFECT the repair or replacement will include the repair or replacement of only those surfaces, finishes and coverings that were damaged by the CONSTRUCTION DEFECT that were part of the HOME or the COMMON ELEMENTS when tide was first transferred by US. Surfaces, finishes and coverings that require repair or replacement in order for US or a third party designated by US to repair or replace CONSTRUCTION DEFECTS will be repaired or replaced. The extent of the repair and replacement of these surfaces, finishes or coverings will be to approximately the same condition they were in prior to the CONSTRUCTION DEFECT, but not necessarily to a like new condition. When repairing or replacing surfaces, finishes and coverings, the repair or replacement will attempt to achieve as close a match with the original surrounding areas as is reasonably possible, but an exact match cannot be guaranteed due to such factors as fading, aging and unavailability of the same materials. In the case where a CONSTRUCTION DEFECT exists and the HOME is rendered uninhabitable and the CONSTRUCTION DEFECT is repaired or replaced, the repair or replacement shall include the reasonable cost of the HOMEOWNER'S alternative shelter until the HOME is made habitable. VI. Exclusions A. This LIMITED WARRANTY does not cover: Any CONSTRUCTION DEFECTS or other damages resulting, either directly or indirectly, from the following causes or occurring in the following situations: a. Fire; b. Lightning; c. Explosion; d. Riot and Civil Commotion; e. Smoke; f. Hail; g. Aircraft; h. Falling Objects; i. Vehicles; j. Floods; k. Earthquake; 1. i. Landslide or mudslide originating on property other than the site of the HOME or the COMMON ELEMENTS or other property developed by the BUILDER; M. Mine subsidence or sinkholes; PWC FORM NO. 117 Rev. 05/02 4 n. Changes In the underground water table not reasonably foreseeable by the BUILDER; o. Vol aMc eruption; explosion or effusion, p. Wind including: (i). Gale tome winds; 00. Hurricanes; (iii). Tropical storms; (iv). Tornadoes; q. Insects, animals or vermin; r. Chsngss of the grading of the ground by anyone other than US or OUR agents, or subcontractors which results in surface drainage towards the HOME or other improper drainage or permits water to pond or become trapped in localized areas against the foundation or otherwise; S. Changes, additions, or alterations made to the HOME or the COMMON ELEMENTS by anyone alter the WARRANTY PMOD begins, except those made or authorized by US; . t. Any detect in material or workmanship supplied by anyone other than US or OUR agents, or subcontracts; U. Improper maintenance, negligence or improper use of the HOME or the COMMON ELEMENTS by YOU or anyone other than US that results in rot, dry rot. moisture, rust, mildew or any other damage; V. Dampness or condensation due to YOUR failure to maintain adequate venblation; W. Damage resulting from the weight and/or performance of any type of waterbed or other furnishings which exceeds the load-bearing design of the HOME or the COMMON ELEMENTS; X. Normal wear and tear or normal deterioration of materials; V. Economic damages due to the HOME'S or the COMM ELEMENTS' failure to meet consumer expectations. 2. Any costs arising from, or any CONSTRUCTION DEFECT resulting from the actual, alleged or threatened discharge, dispersal, release or escape of POLLUTANTS. WE will not cover costs or expenses arising from time uninhabitabtiity of the HOME or the CO#M M ELEMENTS or health risk due to the proximity of POLLUTANTS. WE will not cover costs, or expenses resulting from the direction of any governmental entity to test, dean-up, remove, treat, contain or monitor POLLUTANTS; 3. Any costs arising from, or any CONSTRUCTION DEFECT resulting from the effects of electromagnetic fields (EMF's) or radiation; 4. Any damage to personal property that does not result from a CONSTRUCTION DEFECT; 5. Any "CONSEQUENTIAL OR INCIDENTAL DAMAGES'; 6. Any damage to CONSUMER PRODUCTS; 7. Any CONSTRUCTION DEFECT as to which YOU have not taken timely and reasonable steps to protect and minimize damage after WE or OUR authorized representative have provided YOU with au tiorizirdon to prevent further damage; B. Any damage to the extant it is incurred after or as a result of YOUR failure to notify US in a reasonably timely manner alter YOU have become aware or should have become aware of the CONSTRUCTION DEFECT or condition causing such damage; 9. Any costs or obligations paid or incurred by YOU in violation of Section VII. C. below; 10. Any non-conformity with local building codes, regulations or requirements that has not resulted in a CONSTRUCTION DEFECT. While WE acknowledge OUR responsibility to build in accordance with applicab- budding codes. this LIMITED WARRANTY does not cover budding code violations in the absence of a CONSTRUCTION DEFECT; 11. Any deviation from plans and specifications that has not resulted in a CONSTRUCTION DEFECT. 8. OUR LIMITED WARRANTY does not cover any CONSTRUCTION DEFECT which would not have occurred in the absence of one or more of the excluded events or conditions listed in Exclusions, Section VI. A.1 a. - A. 1.q., A.2. or A.3. above, regardless of: 1. the cause of the excluded event or condition; or 2. other causes of the loss or damage; or 3. whether other causes acted concurrently or in any sequence with the excluded event or condition to produce the loss or damage. VII. Procedure to Request US To Perform Under This LIMITED WARRANTY If YOU become aware of a condition that YOU believe is a CONSTRUCTION DEFECT under this LIMITED WARRANTY, YOU have the following responsibilities: A. Notification YOU must notify US in writing as soon as it is reasonably possible after YOU have become aware or should have . become aware of a CONSTRUCTION DEFECT, but in no event may YOUR written notice of a CONSTRUCTION DEFECT or YOUR written request for warranty performance be postmarked or received by US later than thirty (30) days after this LIMITED WARRANTY has expired. If the written notice is postmarked or received by US more than thirty (30) days after the expiration of this LIMITED WARRANTY, WE shall have no obligation to remedy the CONSTRUCTION DEFECT. In order to establish a record of timely notification, WE recommend that written notice should always be sent by Certified Mail, return receipt requested. B. Cooperate With US YOU must give US and any third parties acting on OUR behalf reasonable help in inspecting, investigating, testing (including destructive testing), monitoring, repairing, replacing or otherwise correcting an alleged CONSTRUCTION DEFECT. Help includes, but is not limited to, granting reasonable access to the HOME or COMMON ELEMENTS for the forgoing purposes. If YOU fail to cooperate or provide such reasonable access to the HOME or COMMON ELEMENTS, WE will' have no obligation to do any of the foregoing. C. Do Not Make Voluntary Payments YOU agree not to make a",votuntarypayments or assume any obligations or incur anyexpenses forthe remedy " of a condition YOU believe is a CONSTRUCTION DEFECT without prior written approval from US, or other parties authorized to act on OUR behalf. WE will not reimburse YOU for costs incurred where YOU did not obtain prior written approval. However, YOU may incur reasonable expenses in making repairs in an EMERGENCY CONDITION without prior written approval, provided the repairs are solely for the protection of the HOME or COMMON ELEMENTS from further damage or to prevent an unsafe living condition and provided YOU notify US as soon as is reasonably possible. To obtain reimbursement for repairs made during an EMERGENCY CONDITION, YOU must provide US with an accurate written record of the repair costs. PWr FORM NO. 117 Rov nSlnl A D. Sign A Release When WE or a third party designated by US or acing on OUR behalf have completed repaving, replacing or paying YOU as to any DEFECTS or other related damage to the HOME or the COMMON ELEMENTS covered by this LIMITED WARRANTY, YOU must sign a full release of OUR obligation for the CONSTRUCTION DEFECTS. The release shall be applicable to the CONSTRUCTION DEFECTS and shall not prevent YOU from notifying US should YOU become aware of a subsequent CONSTRUCTION DEFECT. E. If YOU Disagree With US K YOU believe WE have not responded to YOUR request for warranty performance to YOUR satisfaction or in a manner that YOU believe this LIMITED WARRANTY requires, YOU may provide written rice to PWC requesting Mediation. Upson PWC's receipt of written notice from YOU. PWC may review and mediate YOUR request by communicating with YOU, US, and any other ledividusls or entities that PWC believes may possess relevant information. If after forty five (45) days, PWC is unable to successfully mediate YOUR request for warranty performance, or at any earlier tsne when PWC deftrmines that YOU and WE are at an impasse, PWC will notify YOU that YOUR request for warranty performance remains unresolved and that YOU may elect to initiate Binding Arbitration. Binding Arbitration as described in the following section is the sole remedy for the resolution of disputes between YOU and US as set forth in the following section, Vlll. Binding Arbitration Procedure Any disputes between YOU and US. or parties acting on OUR behalf, induding PWC, mated Ic or arising from this LWITED WARRANTY. the design or construction of the HOME or the COMMON ELEMENTS or the sale of the HOME or transfer of We to the COMMON ELEMENTS will be resolved by binding arbitration. Binding arbitration shall be the sole remedy forresolving any and all disputes between YOU and US, or OUR re Disputes subject to binding arbitration include, but are not limited to: representatives. A. Any disagreement that a cation in the HOME or the COMM MELEMENTS is a CONSTRUCTION DEFECT and is therefore covered by this LIMITED WARRANTY; B. Any disagreement as to whether a CONSTRUCTION DEFECT has been corrected in compliance with this LIMITED WARRANTY; C. Any alleged breach of this LIMITED WARRANTY; D. Any altieged violation of consumer protection, unfair trade practice, or any other statute; E. Any allegation of negligence, strict liability, fraud, and/or breach of duty of good faith, and any other claims arising in equity or from common law; F. Any dispute concerning the issues that should be submitted to binding arbitration; G. Any dispute concerning the timeliness of OUR performance and/or YOUR notifications under this LIMITED WARRANTY; H. Any dispute as to the payment or reimbursement of the arbitration filing fee; 1. Any dispute as to whether this LIMITED WARRANTY, or any provision hereof, including. but not limited to any waiver hereunder, is unenforceable; J. Any other claim wising out of or relating to the sale, ising ng design or construction of YOUR HOME or the COMMON ELEMENTS, including, but not limited to any claim arising out of, relating to or based Pwr Foo M 1Nn > 17 v.., ficim on any implied warranty or claim for negligence or strict liability not effectively waived by this LIMITED WARRANTY The arbitration shall be conducted by Construction Arbitration Services, Inc., or such other reputable arbitration service that PWC shall select, at its sole discretion, at the time the request for arbitration is submitted. The rules and procedures of the designated arbitration organization, that are in effect at the time the request for arbitration is submitted, will be followed. A copy of the applicable rules and procedures will be delivered to YOU upon request. This arbitration agreement shall be governed by the United States Arbitration Act (9 U.S.C.§§ 1 - 16) to the exclusion of any inconsistent state law, regulation or judicial decision. The award of the arbitrator shall be final and binding and may be entered as a judgment in any court of competent jurisdiction. Each party shall bear its own attorneys fees and costs (including expert costs) for the arbitration. The arbitration filing fee and other arbitration fees shall be divided and paid equally as between YOU and US. This filing fee shall be no more than the amount charged by the arbitration service to PWC for each arbitration. Contact PWC to determine the arbitration filing fee in effect at the time an arbitration is being requested. The arbitrator shall, as part of any decision, award to the party prevailing at the arbitration any applicable filing fees or other arbitration fees paid by that party. The process for YOU to initiate arbitration is described below. Step 1 YOU complete a Binding Arbitration Request Form and mail it to PWC along with the appropriate arbitration filing fee. A Binding Arbitration Request Form is attached to this LIMITED WARRANTY. YOUR Binding Arbitration Request Form must be received no later than ninety (90) days after this LIMITED WARRANTY expires. YOU must still notify US of an alleged CONSTRUCTION DEFECT as soon as it is reasonably possible after YOU have become aware or should have become aware of the CONSTRUCTION DEFECT, but in no event later than thirty (30) days after expiration of this LIMITED WARRANTY. Please Note that while YOU have thirty (30) days after this LIMITED WARRANTY expires to notify US and ninety (90) days after it expires to file for arbitration, this time period does not extend the WARRANTY PERIOD for CONSTRUCTION DEFECTS. Additionally, no investigation, inspection, testing, repair, replacement, or payment, nor any promise of same by US under this LMMTED WARRANTY, nor any dispute resolution efforts, shall extend the term of this LIMITED WARRANTY or extend or toll any statutes of limitations or any of YOUR rights or remedies. Step 2 PWC Will Arrange the Arbitration Proceeding. The arbitrator or arbitration organization will notify YOU of the time, date and location of the arbitration hearing. Most often the hearing will be conducted at the HOME or the COMMON ELEMENTS or some other location that is agreeable to all the parties to the dispute. In scheduling the hearing the arbitrator will set a time and date that is reasonably convenient to all the parties. Step 3 The Arbitration Hearing. The parties at the arbitration hearing will include the arbitrator, YOU, US and/or a thiid?party?designatedbyUS-nraeting on OUR beh&., Any*party to the pr6c6edlrig maybe t6otesentedat the hearing. All persons who are parties to the arbitration, as well as representatives and witnesses, are entitled to attend hearings. After evidence is presented by YOU, US or OUR representatives, a decision will be rendered by the arbitrator. The decision is final and binding on YOU and US. The arbitrator first will determine whether any claimed or alleged CONSTRUCTION DEFECT exists and whether it is OUR responsibility. Second, if the arbitrator finds US responsible for a CONSTRUCTION DEFECT, the arbitrator will determine the scope of any repair or replacement, OUR cost of any such repair or replacement, and the diminution in fair market value, if any, causeq by such CONSTRUCTION DEFECT. Based upon the arbitrator's decision, WE shall choose whether WE shall (1) repair, replace the CONSTRUCTION DEFECT, (2) pay to YOU the actual amount it would cost US to repair or replace the CONSTRUCTION DEFECT or (3) PAY to YOU an amount equal to the diminution in fair market value caused by the CONSTRUCTION DEFECT. The decision to repair, replace, or to make payment to YOU is at OUR or OUR PWC FORM NO. 117 Rev. 05/02 authorized representative's sole option. In addition, the arbitrator 00 randier a decision resolvini; disputed m1 On a or issues related to or arising from this LIMITED WARRANTY, the ? other HOME or the COMMON ELEMENTS or the sale of the HOME or UwWw of title t0 the nOMor mewcom MONMMON ELEMENTS. Stop 4 WE will comply with the arbitrator's decision no later than 60 days from the data of the award or other such dab se may be specified or allowed in the decision. However, delays caused by circumstances beyond OUR or OUR representative's CDnbd shag be excused. Step S. If YOU b MS WE Have E" T--°.Scomft? The Awyd. YOU should cxmtad PWC at its mailing address siasdlfsd in this LI111AFTED WARRANTY if YOU believe WE have not Complied with the arbitrator's award. PWC will mediate this dispute and tl It carmot be resorted, will advise YOU that a coo ownce inspection arbitration Is available to detarnnine whelhsr WE have performed adequately under the original arbitration mod. PWC will cmmunic ate these findings to both US and YOU. If it is detem*wd that WE have not properly performed, WE will be obligated to immedoley comply. PWC's sole responsibility is to administer this LIMITED WARRANTY on OUR behalf and as such PWC assumes no other IiabNties In cminection with this LIMITED WARRANTY. Under no condition or circumstance is MC responsible for fulfilfg any of OUR obligations under this LIMITED WARRANTY. IX. General Conditions A. Separation of This LIMITED WARRANTY From The Contract Of Sale This LIMTED WARRANTY is separate and Independent of the contract between YOU and US for the construction and/or sale of the HOME or trwlar of the COMMON ELEMENTS. The provims of this LIMITED WARRANTY Shall In no way be restricted or expanded by anything cwtained in the construction and/or sales Contrail or other dnts between YOU and US. B. Transfer to Subsequent HOMEOWNERS This LNUM WARRANTY will transfer to new owners of the HOME for the remainder of the WARRANTY PERIOD. YOU agree to provide this UII rm WARRANTY to soli, subsequent p of the HOME as a part Of the Contract of sale of the HOME. OUR.duties under this UMITEO WARRANTY to the new HOMEOWNER will not exceed the limit of liability then remaining, if any. C. Transfer of Manufacturer's Warranties WE assign to YOU all the manufacturers wartorbes on all applisnc es. factures and items of equipment that WE Installed in the. HON. Should an appliance or item of wMpm9ffl rraNuncoon YOU moat follow the procedures IN forth in that manufacturer's warranty to conw the problem. OUR Obligation under this LIMITED WARRANTY is Incited to the workms om installation of such appliances and equonent. wE have no obligation for appliances and equipment defined as CONSUMER PRODUCTS. D. Recovery Rights If WE or a third party designated by US or aching on OUR behalf reps, replaces or CONSTRUCTION DEFECT, or other related pays YOU as to a by this LttIMITED W?,RRpNn, dartrage to the HOME orthe commm Et.ITS Covered WE are entitled, to the extent of OUR payment, to take over YOUR minted i of W*vvy kor and people and orgwftafions. ? but not li nW to, other warrant bs and 1 YOU oblation not to make It harder for US to enforce these rights. YOU agree to sign any papers, deliver them to US, and do anything else tat is necessary to help US exercise OUR rights. vvvr mart wan 11 17 D- Aeom E. General Provisions If any provision of this LIMITED WARRANTY is determined to be unenforceable, such a determination will not affect the remaining provisions. If this LIMITED WARRANTY or any provision herein is determined to be unenforceable as to a HOMEOWNERS ASSOCIATION or a specific HOMEOWNER, such a determination will not affect the enforceability of this LIMITED WARRANTY or such provision as to any other HOMEOWNERS ASSOCIATION or any other HOMEOWNER. The issue of enforceability, as well as all other issues, will be determined by Binding Arbitration as provided for in this LIMITED WARRANTY. 2. This LIMITED WARRANTY and the binding arbitration process are binding on YOU and US. It is also binding on YOUR and OUR heirs, executors, administrators, successors, and assigns, subject to paragraph B of the General Conditions. 3. As may be appropriate, the use of the plural in this LIMITED WARRANTY includes the singular, and the use of one gender includes all genders. X. Definitions BUILDER means the individual, partnership, corporation or other entity which participates in the Warranty Program administered by the Professional Warranty Service Corporation and provides YOU with this LIMITED WARRANTY. Throughout this document the BUILDER is also referred to as "WE", "US" and "OUR". COMMON ELEMENTS means the property as specified in the recorded Covenants, Conditions and Restrictions as common area and any other property as to which the HOMEOWNERS ASSOCIATION has standing under the law to make a claim. This may include, but is not limited to, streets, slopes, the structure or components of enclosure or other parts of the HOME, corridors, lobbies, vertical transportation elements, rooms, balconies, clubhouses or other spaces that are for the common use of the residents of the development in which the HOME is located. SYSTEMS serving two or more HOMES, and the outbuildings that contain parts of such SYSTEMS are also included in this definition. CONSEQUENTIAL OR INCIDENTAL DAMAGES means any loss or injury other than: A. OUR cost to correct a CONSTRUCTION DEFECT including the correction of those surfaces, finishes and coverings damaged by the CONSTRUCTION DEFECT; B. OUR cost of repair or replacement of furniture, carpet or personal property damaged by the CONSTRUCTION DEFECT. Should replacement be necessary, OUR obligation is limited to replacement with items providing the same function and quality and that are readily available at the time the item is being replaced. C. OUR costs of removal or replacement in order to repair or replace a CONSTRUCTION DEFECT; D. The reasonable cost of the HOMEOWNER'S alternative shelter where the HOME is unhabitable 'due to a CONSTRUCTION DEFECT or where the HOME is rendered unhabitable by the repair of the CONSTRUCTION DEFECT. Diminished fair market value Is considered "CONSEQUENTIAL OR INCIDENTAL DAMAGE" and is excluded under this LIMITED WARRANTY unless WE elect this remedy in lieu of the repair, replacement or other payment as to a CONSTRUCTION DEFECT. CONSTRUCTION DEFECT(S) means a flaw in the materials or workmanship used in constructing the HOME that: • materially affects the structural integrity of the HOME or the COMMON ELEMENTS; or • has an obvious and material negative impact on the appearance of the HOME or the COMMON ELEMENTS ; or • jeopardizes the life or safety of the occupants; or • results in We inability of the HOME or the applicable COMMON ELEMENTS to provide the functions that can reasonably be expected in a residential dwelling. WE and any arbitrator assigned to rule relative to a CONSTRUCTION DEFECT will consider both this definition and Section M - A. (Standards By Which the Preaance of a CONSTRUCTION DEFECT Win Be DeNrmin d) in the endslisnce of s CONSTRUCTION DEFECT. Allow ice CONSTRUCT10N DEFECT If either WE or an arbltr*loi? corndcxtinp a binding arbitration hsoring decism the flaw to be a COIMiTRUCTION DEFECT. OUR obvious and Visible fidure to complete the construction of the HOME or COMMON ELEMENTS, or any portion of the HOME or COMMON ELEMENTS, is not a CONSTRUCTION DEFECT. CONSUMER PRODUCT means any item of equipment, appliance or other item defined as a CONSUMER PRODUCT in the Mapnuson-Moss Warranty Act (15 U.S.C.S. 2301, V 2m) Exampin of Consumer Products include. but we not knitted to dishwasher, garbage disp? gas or electric cook-top, range, range hood, refngeratepr orreff %M 11111101111 Sam combination, gas oven, electric oven, microwave oven, trash compactor, garage door opener, dollies washer and dryer, hot water heater and thermostat. EMERGENCY CONDITION means an event orsitustion that creates the I mninerrt terror of damage to the HOME Ems. or results in an unaefe living condition due to a CONSTRUCTION DEFECT that YOU (o r as applicable. the HOMEOIYNERS ASSOCIATION) become aware of eta point in time other than OUR normal business hours arid YOU were initiate repairs to stabilize the corn orb OUR or OUR autfr tZed r+e 's Prior written approval to prevent further damage. HOME means a singie family residence efther attached or detached covered by this LIMITED WARRANTY or a WARRANTY condominium or cooperative unit in a multi-unit residential sbucture/building covered by this LIMITED HOME BUILDER'S LIMITED WARRANTY means only this express warranty document provided to YOU by US HOL'EOWNER means the first person(s) to whom a HOME (or a unit in a multi-unit residential structur e/buiidi sold, or forwhom such HOME is constructed, for occupancy by such person or such persons family, and such Person's(s') sons In title to the HOME, or mortgagees in possession and any representative of such ms(s) who has t rg to make a claim on that person(s) behalf, including any class HOMEOWNERS ASSOCIATION making a claim in a representative capacity. nY representative or HOMEOWNERS ASSOCIATION means a profit or nonprofit corporation, unincorporated association Partnership. asaaasment ??, limned li»bli tyy company, limited li?lty partnership or other entity of any kind to Owns, manages, maintains. repairs, administers, or is otherwise responsible for and has standing to make a claim as to any part of the COMMON ELEMENTS. POLLUTANTS means all solid, liquid, or gaseous irritants or contaminerft. The term indudes, but is not limited to, petroleum products, smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, radon gas, and waste materials, including materials to be recycled. PWC means Professional Warranty Service Corporation which administers the warranty participate. As such, PWC assumes no other Gabitit n in connection with this LIMITED AR?tTY.1Tt eP C mailing address is: Prof esionat Warranty Barnes Corparation P.O. Box SW Annandale, VA 220034800 SYSTEMS means the following: (a) Plumbing system - gas supply lines and fittings; water supply, waste and vent septic tanks and their drain fields; and water, PiP? and their fittings: tie-in of a public utility connection or on-aft wanand sewer d sew services piping and their extensions to the (b) E lectrical system - all wiring, electrical boxes, switches, outlets, disposal snectiorns up t0 the public utility connection. (c) Heating. Cooling. and Ventilation system - all dud-work; steam, water and reconnectors. radiation elements and dampers. fngerant lines; and registers, WARRANTY PERIOD shall comrt>ence on the data the We to the HOME is transferred to the first HOMEOWNER. Notwtlhstandirg anything to the contrary set forth in this UNITED Wes, the WARRANTY PERIOD for the COMMON ELEMIf NTS of an individual struClure/bulidirg commerices on the date the We for the first HOME in the COMMON ELEMENTS coed to the first HOMEOWNER or as concerns clubhouses or outbuildings or other part of the HOME the date the title to these structures is transferred to the r HOMEOWNER ASSOCIATION. The dates the WARRANTY PERIOD begirn and ends are Mdfc@W on the Limited Warranty Validation Form which Is attached to and made part of this L MM WARRANTY. WE, US, OUR means the BUILDER. YOU, YOUR moor s the HOMEOWNER and the HOMEOWNERS ASSOCIATION. ! 76 0 BINDING ARBITRATION RECUEST FORM Dear Homeowner (Homeowners Association): Prior to requesting binding orb tration under the terms of the HOME BUILDER'S LIMITED WARRAN ly, you should have sent your builder a dear and spedfic written request outlining the situation or condition that you are herein submit" to binding ubitrudon. If you have takerrtlis step and believe the builder has not properly responded in accordance with the HOME BUILDER'S LIMITED WARRANTY, MI out this form and send it to PWC along with the arbitration Mina fee. Be sure to Minch a copy of all pertinent correspondence between you and your builder relative to the issue. The information you need to fill out this form can be found on the Limited Warranty Validation Form. However, if you do not know the answers to any questions, wrlle "Don't Know." Please do not Ism any stern blank. Your nano: Address: a" Morns Phone:L_ 1 LIMITED WARRANTY VAN m Business Phone:( Dab Warranty Period begins: BuNdees Name: Address: Describe the curs that you wish to submit Is bhm" arbitration under rise terms of the NOME BUILDER'S LIMITED WARRANTY. If Iehe dispose is relative to a construction dMhet plesMe kMft& WdWWAdMn an WIM the construction defect(s) first occurred or when you first noticed the construction defect. (Attach addlllonal shsats, N necessary). Uwe are hereby requesting PWC to Initiate a binding arbitration to resolve do dispute described herein above. INSTRUCTIONS: Photo-copy this form and complete the fields.. Obtain the required arbitration tiling fee by contacting PWC at 1-800/850-2799. Send this Minding Arbitration Request Form and the arbitration fling fee to: PROFESSIONAL WARRANTY URVICE CORPORATION P. 0. Box 090 ANNANDALE, VIRGMiIA 2500341800 MC none OW an on s • A SUBSEQUENT HOME BUYER ACKNOWLEDGMENT AND TRANSFER Any coverage remaning under the HOME BUILDER'S LIMITED WARRANTY applicable to'The home specified on the L:n*ed Warranty Validation Form Is transferred to the subsequent homeowner. Any obligations under the HOME BUILDER'S, LIMITED WARRANTY to any subsequent homeowner shall not exceed the limit of liability remaining at the time of transfer, if any. The undersigned horne buyer(s) hereby scl nowledg! and agree: Uwe acknowledge that I have reviwaed, understand and agree to all the terms of the HOME BUILDER'S LIMITED WARRANTY document (PWC Form No. 117) Uwe understand and acknowledge that Professional Warranty Service Corporation ("w") is not the warrantor of the DOME BUILDER'S LMNTED WARRANTY. Uwe understand that Uwe am responsible for the maintenance of the hams incWding maintenance of the grade of the land surrounding the home, and that the builder shalt not he responsible for my dlefect of damage to tin hcome which Is the result of mylour failure to maintain the home. Uwe acknowledge and agree to the Binding Arbitration Procedure contained in the HOME BUILDER'S LIMITED WARRANTY. Signature(s) of Subsequent Home Buyer(s): Dab: Dab: Print above name(s): R!-issuance of the Limited Warranty Validation Form with the narns(s) of the nwr Horne Buyer(s) is = necessary for you to receive the coverage remaining under the HOME BUILDER'S UWTED WARRANTY. Upon receipt of this signed form, PWC will update Its records to reAek.'t the name(s) of the new homeowner(s). 9 you want PWC to issue another Limited Vkffmty VafidNiat Form with your name(s) on the loan, please dwck the box below and send a check In the amount of VA.00 made payable to °PWC" with your submission of this form. YES, re-issue the Limited Warranty Validation Form in the above name(s) ? (dmck box) Initial Address of Home: Limited Warranty No.: INSTRUCTIONS: Photo-copy this form. Provide information requested, sign, fill in Limited Warranty # in the space provided (this number is provided an the Limited Warranty Validation Form), and provide a, telephone number where you can be reached (__J If you want the Limited Warranty Validation Form reissued in your name, enclose your check to PWC in the amount of $20.00 (check box above and initial). To reach PWC by pMme, call: 1-800/850-2799. Mall this form and a photocopy of applicable settlement/dosing documents indicating transfer of tide, to: PROFESSIONAL WARRANTY SERVICE CORPORATION P.O. BOX 800 ANNANDALE, VA 22003-0800 r VERIFICATION I, Florence O'Grady, verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. r Date: 4 441 ' Grady VERIFICATION I, James O'Grady, Jr. verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Date: A a ? .p Q fs, "[ •t rn /? {^n .( ` GIBLEY AND McWILLIAMS, P.C. By: Glenn M. Campbell, Esquire Identification No. 51059 2campbell9 ibleylaw com 524 N. Providence Road Media, PA 19063 (610)627-9500 JAMES P. O'GRADY and FLORENCE O'GRADY Plaintiffs V. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN AT SILVER SPRING, L.L.C.; K. HOVNANIAN VENTURE I, L.L.C.; K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K. HOVNANIAN HOMES OF PENNSYLVANIA, INC. Defendants. ATTORNEY FOR DEFENDANTS CUMBERLAND COUNTY COURT OF COMMON PLEAS NO. 08-6296 Civil Term ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter my appearance on behalf of Defendants, Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian at Silver Spring, L.L.C.; K. Hovnanian Venture I, L.L.C.; K. Hovnanian Companies of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, Inc. in the above-captioned matter. GIBLEY AND McWILLIAMS, P.C. By: /GLENN M. CAMPBELL, Esquire DATED: November 14, 2008 Attorney for Defendants C= ti 7°t .? CA .? SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2008-06296 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND O'GRADY JAMES P JR ET AL VS HOVNANIAN ENTERPRISES INC ET A R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: K HOVNANIAN AT SILVER SPRING LLC but was unable to locate Them deputized the sheriff of BUCKS in his bailiwick. He therefore serve the within DECLARATORY JUDGMENT COMP County, Pennsylvania, to On November 7th , 2008 , this office was in receipt of the attached return from BUCKS Sheriff's Costs: So answers.:-? -- -""? Docketing 18.00 Out of County 9.00 Surcharge 10.00 R. Thomas Kl e Dep Bucks County 84.00 Sheriff of Cumberland County Postage 4.99 125.99 ? 11/07/2008 NESTICO DRUBY HILDABRAND Sworn and subscribe to before me this day of A. D. SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2008-06296 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND O'GRADY JAMES P JR ET AL VS HOVNANIAN ENTERPRISES INC ET A R. Thomas Kline Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: K HOVNANIAN COMPANIES OF PENNSYLVANIA INC but was unable to locate Them deputized the sheriff of BUCKS in his bailiwick. He therefore serve the within DECLARATORY JUDGMENT COMP County, Pennsylvania, to On November 7th , 2008 , this office was in receipt of the attached return from BUCKS Sheriff's Costs: Docketing Out of County Surcharge So answer r? 6.00 .00 10.00 R" Thomas Kline .00 Sheriff of Cumberland County .00 16.00 ? 1l?IS?n? 11/07/2008 NESTICO DRUBY HILDABRAND Sworn and subscribe to before me this day of A. D. SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2008-06296 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND O'GRADY JAMES P JR ET AL VS HOVNANIAN ENTERPRISES INC ET A R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: K HOVNANIAN HOMES OF PENNSYLVANIA LLC but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of BUCKS County, Pennsylvania, to serve the within DECLARATORY JUDGMENT COMP On November 7th , 2008 this office was in receipt of the attached return from BUCKS Sheriff's Costs: So answ -- Docketing 6.00 Out of County .00 Surcharge 10.00 R. Thomas Klin .00 Sheriff of Cumberland County .00 16.00 hIl rb P, 9- 11/07/2008 NESTICO DRUBY HILDABRAND Sworn and subscribe to before me this day of A. D. In The Court of Common Pleas of Cumberland County, Pennsylvania James P. O'Grady et al vs. Hovnanian Enterprises Inc et al SERVE: K. Hovnanian at Silver Spring, LLC 08-6296 civil No. Now, October 27, 2008 -1 , SHERIFF OF CUMBERLAND COUNTY, PA, do hereby deputize the Sheriff of Bucks County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. ?1- Sheriff of Cumberland County, PA Please mail return of service to Cumberland County Sheriff. Thank you. Affidavit of Service Now, , 20 , at o'clock M. served the within upon at by handing to a and made known to copy of the original So answers, the contents thereof. Sheriff of Sworn and subscribed before me this day of , 20 COSTS SERVICE $ MILEAGE AFFIDAVIT County, PA In The Court of Common Pleas of Cumberland. County, Pennsylvania James P. O'Grady et al vs. Hovnanian Enterprises Inc et al SERVE: K. Hovnanian Companies of Pennsylvania, Inc. No. 08-6296 civil Now, October 27, 2008 hereby deputize the Sheriff of I, SHERIFF OF CUMBERLAND COUNTY, PA, do Bucks ` County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA Please mail return of service to Cumberland County Sheriff. Thank you. Affidavit of Service Now, within upon at by handing to a and made known to copy of the original the contents thereof. So answers, Sheriff of Sworn and subscribed before me this day of , 20 COSTS SERVICE MILEAGE _ AFFIDAVIT County, PA 20 , at o'clock M. served the M In The Court of Common Pleas of Cumberland, Cqunty, Pennsylvania James P. O'Grady et al vs. Hovnanian Enterprises Inc et al 08-6296 civil No. SERVE: K. Hovnanian Hanes of Pennsylvania, LLC' Now, October 27, 2008 , I, SHERIFF OF CUMBERLAND COUNTY, PA, do hereby deputize the Sheriff of Bucks County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA Please mail return of service to Cumberland County Sheriff. Thank you. Affidavit of Service Now, within upon at by handing to a and made known to copy of the original the contents thereof. So answers, Sheriff of Sworn and subscribed before me this day of , 20 2C , at o'clock M. served the COSTS SERVICE $ MILEAGE AFFIDAVIT County, PA r?AT<_: 1C/31/2018 TIM= I `I`8 01 SHOOTFFS C!fftCF - FCvePr J. l,rwwFtl ye SNF!??fr- AOMTNISTR:TI^ A aLi ING JCYLESTOUNs PA RUCKS DISC COCKET A 2009 32489 LCCATICN: Ct l EF CCURTI ##*## SHERIFF'S RETURN OF SERVICE **#** SHERIFF'S OFFICE CUMBERLANC CCUNTY 1 COURTHOUSE SQUARE CARLISLE PA 17013 ATTN:RICHARC 8 CRUBYsESG CIASS: ASSUMPSIT PLAINTIFF DEFENDANT O'GRADY•JR JADES P VS. ON HCVNANIAN AT SILVER SFRINGS9LLC 3179 WHEELER MAY STE 200 LANGHORNEjjPA IS047 VS.C?) K HCVNANIAN COPPANIES CF PAs INC 1370 WHEELER MAY STE 209 LANGHORNE9 4A 19047 VS.OK HCYNANIAN HOMES OFPAvLLC 1179 WHEELER WAY STE 204 LANGH13RNE9.FA IS047 10232008 COPPLA14T - CIVIL ACTICN RECEIVED FRCP CUMBERLAND CO SHERIFFS CEPT RAG 10302008 RECEIVED IN SHERIFFS OFFICE FCR SERVICE. TRANSACTION SOS-1-18086 RAG ANCUNT PAIC $84.00. 10312001 SHERIFF* RETURNS UNDER OATF, NOT FCUND BY DEPUTY BOBBS AT 8+42AP RAG DEFTS' HOVNANIAN AT SILVER SPRGALC99 FOVNANIAN CO OF =FA,IMC,K HOVAA NIAN HOMES CF PAvLLC AT 1170 VhEELER MAY STE 2Cfl LANGHCRNE,PA NOT SE RAG RVED.DEFT MCVEC TO NJ OVER A YEAR AGC.ADORESS 'VACANT. INVOICE MAILED 70 CUMBERLAND CC SHERIFFS DEPT ATTN:RICtARD 8 DRUBYvE RAG SQ TRANSACTION #08-1-18086 END OF CASE GIBLEY AND McWILLIAMS, P.C. By: Glenn M. Campbell, Esquire Identification No. 51059 gcampbell Ribleylaw.com 524 N. Providence Road Media, PA 19063 (610)627-9500 JAMES P. O'GRADY and FLORENCE O' GRADY ATTORNEY FOR DEFENDANTS CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiffs V. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN AT SILVER SPRING, L.L.C.; K. HOVNANIAN VENTURE I, L.L.C.; K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K. HOVNANIAN HOMES OF PENNSYLVANIA, INC. NO. 08-6296 Civil Term Defendants. ANSWER AND NEW MATTER OF DEFENDANTS, HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN AT SILVER SPRINGS, L.L.C.; K. HOVNANIAN JOINT VENTURE I, L.L.C.; K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; AND K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C., TO PLAINTIFFS' COMPLAINT IN DECLARATORY JUDGMENT Defendants, Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian at Silver Springs, L.L.C.; K. Hovnanian Joint Venture I, L.L.C.; K. Hovnanian Companies Of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, L.L.C., by and through their counsel, Gibley and McWilliams, P.C., hereby file this Answer and New Matter to Plaintiffs' Complaint in Declaratory Judgment as follows: 1. On information and belief, admitted. 2. Admitted. 3. Denied as stated. Defendants deny that K. Hovnanian Enterprises, Inc., has a principal place of business at the address alleged. To the contrary, the principal place of business of K. Hovnanian Enterprises, Inc., is 110 West Front Street, Red Bank NJ 07701. 4. Denied as stated. Defendants deny that K. Hovnanian at Silver Spring, L.L.C., has a principal place of business at the address alleged. To the contrary, the principal place of business of K. Hovnanian at Silver Spring, L.L.C., is 5 Commerce Way, Suite 200, Hamilton NJ 08691. 5. Admitted. 6. Denied as stated. Defendants deny that K. Hovnanian Companies of Pennsylvania, Inc., has a principal place of business at the address alleged. To the contrary, the principal place of business of K. Hovnanian Companies of Pennsylvania, Inc., is 5 Commerce Way, Suite 200, Hamilton NJ 08691. 7. Denied as stated. Defendants deny that K. Hovnanian Homes of Pennsylvania, L.L.C., has a principal place of business at the address alleged. To the contrary, the principal place of business of K. Hovnanian Homes of Pennsylvania, L.L.C., is 5 Commerce Way, Suite 200, Hamilton NJ 08691. 8. Denied as stated. Defendants deny that Hovnanian Enterprises, Inc., is the parent company of the other Defendants. Hovnanian Enterprises, Inc., is a holding company. 9. Admitted in part, denied in part. Defendants admit that Plaintiffs entered into an purchase agreement with K. Hovnanian at Silver Spring, L.L.C., on or about April 6, 2006. It is 2 denied that a complete copy of the purchase agreement is attached to Plaintiffs' Declaratory Judgment Complaint as Exhibit "A." To the contrary, only the terms and conditions portion of the purchase agreement is attached to the Complaint. 10. Admitted. 11. Denied as stated. The purchase agreement is a document in writing that speaks for itself. In addition, Defendants deny that this is a full and complete statement of the language contained in Paragraph 18 of the purchase agreement. 12. Denied as stated. The purchase agreement is a document in writing that speaks for itself. In addition, Defendants deny that this is a full and complete statement of the language contained in Paragraph 18 of the purchase agreement. 13. Admitted. 14. Admitted. 15. Admitted. 16. Admitted. 17. Denied. Defendants deny that Plaintiffs did not sign any documentation agreeing to the terms of the warranty. To the contrary, Plaintiffs signed the Home Builder's Limited Warranty Registration Form at the time of the closing on their home whereby they agreed to be bound by a warranty to be issued by Professional Warranty Service Corporation ("PWC"). A true and correct copy of the Registration Form is attached hereto as Exhibit "1." 3 18. Denied. Defendants deny that Plaintiffs were not aware of the terms of the warranty prior to receipt of the document from PWC. Plaintiffs were well aware at the time that they signed the purchase agreement and at the time of the closing that they would be issued a Home Builder's Limited Warranty to be administered by a professional warranty service corporation, and that the written warranty issued would be in lieu of any other warranties, express or implied. See Exhibit "A" to Plaintiffs' Complaint, Paragraph 18. Plaintiffs further acknowledged in the Registration Form that they "have received, reviewed, understand and agree to the terms of the Home Builder's Limited Warranty ("Limited Warranty") document (PWC Form #117)." See Exhibit "1" attached hereto. 19. Denied. Although Defendants admit that the warranty document issued by PWC states this, Defendants deny that the builder of the residence was K. Hovnanian Venture I, L.L.C. To the contrary, the builder of the residence as identified at various portions of the purchase agreement was K. Hovnanian at Silver Spring, L.L.C. 20. Admitted that there is no specific reference in the written warranty to K. Hovnanian at Silver Spring, L.L.C., or any of the other K. Hovnanian entities named as defendants in this lawsuit. 21. Denied as stated. The Home Builder's Limited Warranty is a document in writing that speaks for itself. In addition, Defendants deny that this is a full and complete statement of the language contained in this portion of the Home Builder's Limited Warranty. 22. Admitted. 23. Denied. Defendants deny that K. Hovnanian Venture I, L.L.C., is the builder as referenced in the Home Builder's Limited Warranty. To the contrary, the builder that was 4 responsible under the purchase agreement to issue the warranty was K. Hovnanian at Silver Spring, L.L.C., and therefore the "builder" referenced in the warranty is K. Hovnanian at Silver Spring, L.L.C., not K. Hovnanian Venture I, L.L.C. 24. Denied. Defendants deny that the Home Builder's Limited Warranty is separate and distinct from the purchase agreement between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. To the contrary, the Home Builder's Limited Warranty was issued pursuant to an obligation on the part of the builder, K. Hovnanian at Silver Spring, L.L.C., to issue a limited warranty, and thus it is not separate and distinct from the purchase agreement. 25. Denied. Defendants deny that K. Hovnanian at Silver Spring, L.L.C., is not a party to the Home Builder's Limited Warranty. The Home Builder's Limited Warranty was issued pursuant to an obligation on the part of the builder, K. Hovnanian at Silver Spring, L.L.C., to issue a limited warranty, and therefore the builder under the Home Builder's Limited Warranty is K. Hovnanian at Silver Spring, L.L.C. 26. Denied as stated. Defendants deny that the Home Builder's Limited Warranty does not control the relationship between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. Defendants admit that the rights and obligations of the Plaintiffs and K. Hovnanian at Silver Spring, L.L.C., are controlled by the terms of the purchase agreement. Under the terms of this agreement, Plaintiffs have agreed to waive all warranties except for those provided in a limited warranty to be issued by the builder, K. Hovnanian at Silver Spring, L.L.C. 27. Denied. Defendants deny that the Home Builder's Limited Warranty does not control the relationship between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. Defendants would admit that the warranty document does not control the relationship between Plaintiffs and 5 other named Hovnanian Defendants as there is no relationship of any kind between Plaintiffs and Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian Venture I, L.L.C., K. Hovnanian Companies of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, L.L.C. 28. Denied. Defendants deny that the Home Builder's Limited Warranty attempts to limit the forum under which Plaintiffs are permitted to proceed against K. Hovnanian Ventures I, L.L.C. Defendants deny that K. Hovnanian Ventures I, L.L.C., is the builder that is subject to the Home Builder's Limited Warranty. To the contrary, this is K. Hovnanian at Silver Spring, L.L.C. Pursuant to the terms of the Limited Warranty, issued pursuant to the purchase agreement, Plaintiffs have agreed to submit any disputes to binding arbitration. 29. Admitted that the Home Builder's Limited Warranty so states. 30. Admitted that the Home Builder's Limited Warranty so states. 31. Denied as stated. Defendants would admit that Defendants, Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian Companies of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, L.L.C., are not direct parties to the Home Builder's Limited Warranty, but deny that Plaintiffs may proceed against any of these entities outside of the binding arbitration process. Defendants deny that there is any relationship of any kind whatsoever between Plaintiffs and any of these Defendants that would entitle Plaintiffs to any relief any nature whatsoever with regard to any of these Defendants. 32. Denied. Defendants deny that the Plaintiffs have failed to sign any document indicating that they agree to the terms of the Home Builder's Limited Warranty. To the contrary, they have agreed to the terms of a limited warranty pursuant to the terms of the purchase agreement. In addition, Plaintiffs signed the Home Builder's Limited Warranty Registration Form 6 at the time of the closing on their home wherein they expressly agreed that they "received, reviewed, understand and agree to the terms of the Home Builder's Limited Warranty ("Limited Warranty") document (PWC Form #117)." Defendants deny that Plaintiffs cannot be held to have waived their rights to proceed in court with regard to the Warranty, as this is directly contradicted by the terms of the Home Builder's Limited Warranty document which they acknowledged having received, reviewed, understood and agreed to at the time of the closing. 33. Denied. Defendants deny that the arbitration provisions of the Home Builder's Limited Warranty are invalid, unconscionable, unilaterally imposed, or in violation of public policy. 34. Admitted that the warranty excludes implied warranties in their entirety, as does the purchase agreement between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. 35. Denied. Defendants deny that K. Hovnanian Venture I, L.L.C., is a party to the Home Builder's Limited Warranty. Defendants deny that K. Hovnanian at Silver Spring, L.L.C., or to the extent that it is subject to the Limited Warranty K. Hovnanian Venture I, L.L.C., has failed to properly disclaim implied warranties under Pennsylvania law. 36. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 37. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 38. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 39. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 40. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. To the extent that a further response is required, Defendants deny that K. Hovnanian Venture I, L.L.C., is a "supplier" under the Magnuson-Moss Warranty Act. 41. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. To the extent that a further response is required, Defendants deny that K. Hovnanian Venture I, L.L.C. issued any implied warranties of any kind whatsoever to the Plaintiffs as K. Hovnanian Venture I, L.L.C., was not the builder or seller of their home. Defendants deny that K. Hovnanian Venture I, L.L.C., failed to comply with the obligations of any warranty, express or implied, or that any actions on behalf of K. Hovnanian Venture I, L.L.C., has caused any harm to Plaintiffs. 42. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 43. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 44. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. 45. Denied for reason that this paragraph contains legal conclusions to which no response is required by the Pennsylvania Rules of Civil Procedure. WHEREFORE, Defendants respectfully request that judgment be entered in their favor and against the Plaintiffs. NEW MATTER 46. There is no relationship between Plaintiffs and Defendants, Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian Venture I, L.L.C., K. Hovnanian Companies of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, L.L.C., and therefore Plaintiffs are not entitled to relief as to any of these entities. 47. At the time of signing the purchase agreement with K. Hovnanian at Silver Spring, L.L.C., Plaintiffs agreed that the seller, K. Hovnanian at Silver Spring, L.L.C., would provide a Home Builder's Limited Warranty administered by a professional warranty service corporation, and that this written warranty would be in lieu of any other warranties, express or implied. 48. The builder identified in the purchase agreement for Plaintiffs' home is K. Hovnanian at Silver Spring, L.L.C. 49. Of the named defendants, only K. Hovnanian at Silver Spring, L.L.C., had an obligation under the purchase agreement to issue a written warranty to Plaintiffs. 50. At no time did K. Hovnanian Venture I, L.L.C. have any obligation to issue a warranty of any kind to Plaintiffs. 51. The document attached to Plaintiffs' Declaratory Judgment Complaint as Exhibit C was a document issued by the Professional Warranty Services Corporation, and not by any of the named defendants. 9 52. The Home Builder's Limited Warranty issued by PWC to the Plaintiffs was issued to fulfill the obligation of K. Hovnanian at Silver Spring, L.L.C., to issue a written Home Builder's Limited Warranty as stated in paragraph 18 of the purchase agreement. 53. Plaintiffs signed the Home Builder's Limited Warranty Registration Form attached hereto as Exhibit "1" at the time of the closing on their home, and by signing the document agreed that they "received, reviewed, understand and agree to the terms of the Home Builder's Limited Warranty ("Limited Warranty") document (PWC Form #117)." 54. Plaintiffs received, reviewed, and agreed to the terms of the Limited Warranty document PWC Form #117, which is attached to Plaintiffs' Complaint as Exhibit "C," including the requirements relating to binding arbitration. 55. Pursuant to the terms of the Home Builder's Limited Warranty, Plaintiffs have agreed that "any disputes between YOU and US, or any parties working on OUR behalf, including PWC, related to or arising from this LIMITED WARRANTY, the design or construction of the HOME or the COMMON ELEMENTS or the sale of the HOME or transfer of title to the COMMON ELEMENTS will be resolved by binding arbitration." 56. All of the claims that Plaintiffs have raised relate to or arise from the design or construction of their home, and therefore are subject to binding arbitration pursuant to the terms of the Home Builder's Limited Warranty. 57. Plaintiffs have agreed to, and therefore are required to submit all of the disputes relating to the design or construction of their home to binding arbitration pursuant to the terms of the Home Builder's Limited Warranty. 10 58. To the extent that the Court finds that K. Hovnanian at Silver Spring, L.L.C. is not the "builder" subject to the terms of the Home Builder's Limited Warranty, which is denied, Plaintiffs are nevertheless obligated to submit their claims against K. Hovnanian at Silver Spring, L.L.C. to binding arbitration as K. Hovnanian at Silver Spring, L.L.C., may be found to have been acting on behalf of the builder under the Home Builder's Limited Warranty. 59. At all times, K. Hovnanian at Silver Spring, L.L.C., and all other defendants have acted reasonably in attempting to address the issues that have been raised by the Plaintiffs with regard to the design or construction of their home. 60. At all times, K. Hovnanian at Silver Spring, L.L.C., and all other defendants have attempted to address any and all issues subject to the Home Builder's Limited Warranty, and have been prevented from doing so by the actions of the Plaintiffs. 61. Plaintiffs have failed to state a claim against the Defendants upon which relief may be granted. WHEREFORE, Defendants respectfully request that judgment be entered in their favor and against the Plaintiffs. GIBLEY AND MCWILLIAMS, P.C. By: GLENN M. CAMPBELL, Esquire Attorney for Defendants DATED: December 2, 2008 11 EXHIBIT "1" .... _ HOME BUILDER'S LIMITED WARRANTY, Sales Contract Da e REGISTRATION FORM for `tbit's Home: 116 / d r Name: ild m 7l ? B Id tifi ti N il u e en ca on o. Bu der ADDRESS OF HOME TO BE REGISTERED (NUMBER " STREET)) ` LOT BLOCK y .? CITY; ST E?: ) 21P: lht a /C:?-) 1) u r,?( 7,11 6 _?b COU T9: / Ive- r 'Gt9r)'r 6. ENTER THE DATE THE WARRANTY, ERIOD WILL BEGIN: E TYPE (check one) (TITLE TRANSFER) - Single Family Attached ? MONTH DAY r? YEAR l 1 / Condominium Unit ? Single Family Detached N L f 1 6. ENTER THE SALES PRICE OF THIS HOME: $ IF FHA or VA mortgage, check here: ? FHA or VA Case No. T, N n?5 OF INI filAL PURCHA ER(5) OF HOME .(L•AST NAME, FIRST NAME) __..- .- / / 8. MAILING ADDRESS (COMP TE NLY IF DIFFERENT FROM NUMBER AND STREET OF THE HOME IDENTIFIED ABOVE ON LINES 1 - 4) 9. Signature of Build 7r's Representative or Authorized Agent: ? ^{ ! ?(Tp T U2.._ Date: / HOME=BUYI=R ?i NOWLED( -HNIW, -- ' -: (LlNE1CF). The undersigned hereby acknowledgelgt s: I/we have received, reviewed, understand and agree to the terms of the Home Builder's Limited Warranty ("Limited Warranty") document (PWC Form #117). I/we acknowledge that the Builder does not make any representations as to its Limited Warranty that contradict or are inconsistent with the terms and conditions stated in its Limited Warranty. 90. Signature of Home Buyer(s): (?+?'?. Dale: (0 `-" C 1 06 r.. I 1? (i- I Dale: f, l Date: Date: MAIL ORIGINAL TO: Professional Warranty Service Corporation (PWC) 1-800/850-2799 P.O. Box 800 Annandale, VA 22003-0800 Q PWC-1053 01103 Original-PWC Canary-Builder Pink-Purchaser VERIFICATION verify that I am the V? 09? vof the Defendants, and that the statements made in the foregoing Answer and New Matter to the Complaint 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. Section 4904 relating to unsworn falsification to authorities. vDa :?L Date: t-?)- t "(?) CERTIFICATE OF SERVICE I, Glenn M. Campbell, Esquire, hereby certify that a copy of the attached Answer and New Matter of Defendants, Hovnanian Enterprises, Inc.; K. Hovnanian Enterprises, Inc.; K. Hovnanian at Silver Springs, LLC; K. Hovnanian Joint Venture I, LLC; K. Hovnanian Companies of Pennsylvania, Inc.; and K. Hovnanian Homes of Pennsylvania, LLC; to Plaintiffs' Complaint in Declaratory Judgment has been served upon the following parties by first class mail, on the date noted below. Richard B. Druby, Esquire Nestico, Druby & Hildabrand LLP 840 East Chocolate Avenue Hershey, PA 17033 GIBLEY AND McWILLIAMS, P.C. By: Glenn M. Campbell, Esquire DATE: December 2, 2008 ?. s.. ..., ? `??'_ c'? ? ..- t ?" i; ? <?a -Z? ?: r > C 7 rrt ` N rs ? , - .? ? ' - .? JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on Peter Reinhart, President of Defendant, K. Hovnanian Homes of Pennsylvania, LLC, 5 Commerce Way, Suite 200, Hamilton, NJ 08619, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by his authorized agent on November 17, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully sub , NESTICO, D IILD1ABRAly), L.L.P. By: chard B. Dru , Es 1X Attorney I.D. N . 6 04 840 E. Chocolate Ave. Hershey, Pennsylvania 17033 (717) 533-5717 Date: Jodi - S' 6S Attorney for Plaintiffs D WTIC09 DMY & KDURAND, LLP ATTORNEYS AT LAW 840 East Chocolate Avenue, Hershey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www.hersheypakw.com November 13, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REQUESTED Mr. Peter Reinhart, President K. Hovnanian Homes of Pennsylvania, LLC S Commerce Way Suite 200 Hamilton, NJ 08691 Re: O'Grady v. Hovnanian Enterprises, Inc. et aL Cumberland County Docket No. 08-62% Dear Mr. Reinhart: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DR & By: % Richard B. ti 0 0 0 0 C Total P-U*e & Fees I l• 5? 1 1 I ? 0 0 M 0 rl - - ---.._---.------ --°--? - ----------- k1A q ?. _ P'" ? P ?`3 ?? _r. p ??? ' t,_. ?.?; '.." +? "`- ?„' 0 JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on Peter Reinhart, President of Defendant, K. Hovnanian Homes of Pennsylvania, LLC, 110 West Front Street, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by his authorized agent on November 18, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully sub d, NESTICO, D _ _ LD?ABRAb;a, L.L.P. Hershey, Pennsylvania 17033 (717) 533-5717 Date: Attorney for Plaintiffs By: t chard B. Drub V6 Attorney I.D. No 840 E. Chocolate NED NESC02 DRUBY & HILDABBANND, UP JATF0n"EYSATLAW 84 0 East Chocolate Avenue, Heeshey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www.hersheypalaw.com November 13, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY. RETURN RECEIPT REOUESTED Mr.Peter Reinhart, President K. Hovnanian Homes of Pennsylvania, LLC 110 West Front Street Red Bank, NJ 07701 Re. O'Grady v. Hovnanian Enterprises, Inc. et aL Cumberland County Docket No. 08-6296 Dear Mr. Reinhart: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DRUJWA H114DABRAND, LLP By: RBD:bls Enc. ce O' Postal CERTIFIED MAIL . R E CEIPT m (Domestic Mail Only? No Insuranc e Coverage Provided) FFICIA L USE Posta $ ge Cerdw Fee C3 c? 0 (? RegW? C3 Tote) Postage & Fear $ . 5 ' M C3 Swt T4 RM11 !P pA?¢s - L----- Qkh ? M j z orFOBa Ab. JID W? ?1=QI T f -- - --- -------- _-...... ---- _ . __ _ . _. . _ -- ---------------------- 7 al Richard B. ¦ Complete items 1, 2, and 3. Als*compfft Item 4 if Restricted Delivery Is desired. ¦ Print your name and address on the reverse so that we can return the cans to you. ¦ Attach this cans to the back of the maiipiece, or on the front If space permits. 1. Article Addressed to: K ?? nanian {-?trn? c? PA ?- R?tvl'. tlc? ? Q? ?rurrE ?-h-e.?b i?d (va n k t IS J 0101 A SI -._._ x ` 0 Agent 0 Addressee B. Received by (Printed Name C. of Delivery D. Is delivery address d' m item 1? IATA If YES, enter deliveryp Al 91 AA 3. Service Type NtCertlfied Mail 0 Express Mali 0 Registered PRstum Receipt for Merchandise 0 Insured Mail 0 C.O.D. 4. Restricted Delivery? (Extra' Fee) II(ym 2. Article Number M&mbrftmswW=&W 7007 3020 0002 1421 5723 PS Form 3811, February 2004 Dwm* Return Receipt lazsr?z wt 1?p r /'t fem. v7 J . a ? r-? ? ! <? .?_4 *._ _y S? ?,_ r?.. ? ??y nn».. i? ?,T' `?? «-?... ? y? l ' ? JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, , Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on Marcia Wines, President of Defendant, K. Hovnanian at Silver Spring, LLC, 5 Commerce Way, Suite 200, Hamilton, NJ 08619, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by her authorized agent on November 17, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. y, y vama 17033 (717) 533-5717 Date: Attorney for Plaintiffs Respectfully sub i d NESTICO, ILPABRAN.Hr,L.L.P. By: 'chard B. Drub , Esqu' •e Attorney I.D. N .619 840 E. Chocola e A Hershe Penns I ND NESDCO DROBY & RDABRAND, LLP ATTORNEYS AT LAW 840 Lst Chocolate Avenue. Hers bey. PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www hersheypalaw•.com November 13, 2008 VIA CERTIFIED MAIL RESTRICTED DELIVERY RETURN RECEIPT REQUESTED Ms. Marcia Wines, President K. Hovnanian at Silver Spring, LLC 5 Commerce Way Suite 200 Hamilton, NJ 08691 Re. O'Grady v Hovnanian Enterprises, Inc. et ab Cumberland County Docket No. 08-62% Dear Ms. Wines: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DRU.W&fflLDA RAND, LLP V / By: Richard B. by RBD:bls i Postal CERTIFIED MAIL RECEIPT (Domestic Only, Provided) r%- f%- Ir-1 FFICIAL USE r ? Pogepe $ is i Certl W Fee Poftnark C3 (ErWonsnt Requireed) Here D Fee O (Enderae 0 red) C C Tote) PoeMge & Fees $ J ? ? ? I M O oraoaaffW -- -- - r•...._._ ?A1>a1C1eC? UJ_ (1 _?..-- o20d - ---------- -- JJ 0 1 i ¦ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: ' m 11011 an '?? ?1 ?1iQl c' lr? l!! N"; marciCA ?J nes,Pres,denf Commerce W aq & ,6tVkbn t PS Oi4ett A. Sig X r ? Agent V? ? Addressee El e it d Name) C. Date of Delivery lI rp"p` ? D. Is delivery address different from Item 1? ? Yes If Y rj address below: ? No ('L ? NQy 1 1 ? ? . 3 Type ig! Mail ? Express Mail Registered W Rstum Receipt for Merchandise ? insured Mail ? G.O.D. 4. Restdoted Delivery? (Extra Fee) lalllf. 2- J% Number 7007 3020 0002 1421 5778 MWNfW ffam aaMos k bO PS Form 3811, Februwy 2004 Domestic Return Receipt 102505-024A-1 540 lic, } C7 z `;> 77 JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT : JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on Marcia Wines, President of Defendant, K. Hovnanian at Silver Spring, LLC, 110 West Front Street, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by her authorized agent on November 18, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully subme , NESTICO, DR DAB , L By: Richard B. Druby, Esquir Attorney I.D. No. 61904 840 E. Chocolate Ave. Hershey, Pennsylvania 17033 (717) 533-5717 Date: 12 d? Attorney for Plaintiffs NRSUCO, DROBY & V&DABRAND, LLP A840 East Chocolate Avenue, Hershey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www.hersheypalaw.com November 13, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REOUESTED Ms. Marcia Wines, President K. Hovnanian at Silver Spring, LLC 110 West Front Street Red Bank, NJ 07701 Re. O'Grady v. Hovnanian Enterprises, Ina et ab Cumberland County Docket No. 08-62% Dear Ms. Wines: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DRuB.1zA IE.DA$RAND, LLP By: Richard RBD:bls Enc. cc: Jim and Florence O' ru Ir (Domestic only: No insurance Cov erage . , , ,., r qF ICIAL USE a Ce #W Fee T R. o e r a Powffw* P 0 (End s nt RequMSd) Hie C3 pAsbjCW Dave, G (Endor MRS y 2r G Total Postage & Fese $ I LI I ov m SON TO M --- }--------------- fZ --- -- ------------------- ::: _ --- -- - -n.?_ ------------------------ M1i O7 v 6 L ¦ Complete items 1, 2, and 3. Also complete item 4 If Restricted Delivery Is desired. ¦ Print your name and address on the reverse so that we can return the cans to you. ¦ Attach this card to the back of the mailpleoe or on the front If space permits. 1. Article Addressed to: "NYWf110)10.- 3,iV& °? n9 L-Lc- 11 wQls-k IF rw * gear. Qza &l_nk , t3 cm &I A. =--- _ _ X ? Agent ? Addressee B. Received by (Printed N of Delivery D. Is delivery address dd -- from If YES, enter delivery 3. Service Type VKQertified Mail ? Express Mail ? Registered )k Return Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Deliv V Otre Fee) Yes 2. Article Number Mwwwilomanrvro.QaW 7007 3020 0002 1421 5792 PS Form 3811, February 2004 Dmwwdc Roku, Rw*t f 0259s-o¢-M.ts.o n ? ?Z, ?- ;y?? tea '?.z .?.,. ? ?a ,_ ?- ?::% ? - , , a ?-! .. C? .. , .c' ., ? ,. JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on the President of Defendant, K. Hovnanian Companies of Pennsylvania, Inc., 5 Commerce Way, Suite 200, Hamilton, NJ 08619, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by their authorized agent on November 17, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully NESTICO, I By: Richard B. Druby, qui e/ Attorney I.D. No. 6 9 840 E. Chocolate Ave. Hershey, Pennsylvania 17033 f (717) 533-5717 Date: VV Attorney for Plaintiffs NES% BOY & NUORAND, LLP RNDA7T0HRNEYSATLAW 840 East Chocolate Avenue, Hershey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 wwar.hersheypalaw.com November 13, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY. RETURN RECEIPT REQUESTED President K. Hovnanian Companies of Pennsylvania, Inc. 5 Commerce Way Suite 200 Hamilton, NJ 08619 Re: O'Grady v Hovnanian Enterprises, Inc et al. Cumberland County Docket No. 08-62% Dear Sir or Madam: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. ,ft.-: Very truly yours, NESTICO, D By: Richard AIL_ RECEIPT Only, No insurance Coverage Provided) rF Tyyi, !ttioonn ice aivernf ormavisit our websit e at www.usps.com ?r-q tv ?' nj O ° ° ?o I° ° M OFFICIAL USE Postage $ Cerff.W Fos (Endots.rr ant ReQukedl RnkLftd (Eft-arnent wired) Total Postage 3 Fees PosVnark Here t\IW1ug Sent Or PO Bay Ah LLP ¦ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery Is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: ??es'I denfi • 1 nanian CCUY)pax- I Q% db PA 1 rr- 5 ?Us,te ? ?arn? 1-bn , N J U?Iq A Ig X 13 Agent ? Addressee B• R ? (?,'`'? ?' C. Date of Delivery D. Is delivery address d llifferent from Item 11 13 Yes 'N YE"S, ry address below: ? No ti t )1, m be Type ed 0 Express mail F7 5KRetum Recelpt for Merchandise ? insured mail a C.O D. 4. Rerbleted Delivery? tl:xha Fee) I9 Yes 2. Article Number 7007 3020 0002 1421 5655 p WWftrnom,en+"hW Ps Form 3811, February 2004 Domeetlc Return Rsoeipt 102895-0244-1540 i. `l .t7 L7 fry ?'-... d ... `.. __. . `? JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on November 13, 2008, I served on the President of Defendant, K. Hovnanian Companies of Pennsylvania, Inc., 110 West Front Street, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by their authorized agent on November 18, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully NESTICO, I By: Date: 1; - r.-O0 Ricfiaid B. Druby s Attorney I.D. N q. 6000) 840 E. Chocolate ve. Hershey, Pennsylvania 17033 (717) 533-5717 Attorney for Plaintiffs , L.L.P. wTC09 DROBY & KRURAND, LLP gNDjA7T0R1NEYSATLAW 840 East Chocolate Avenue, Hershey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www.hersheypalaw.com November 13, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REOUESTED President K. Hovnanian Companies of Pennsylvania, Inc. 110 West Front Street Red Bank, NJ 07701 Re: O'Grady v Hovnanian Enterprises, Inc. d ab Cumberland County Dockd No. 08-6296 Dear Sir or Madam: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DR By: 10 ", Richard RBD:b1s Enc. cc: Jim and Florence O'Grady FICIAL USE Postage S Certlfled Fee (Endorsementti ed) R Er?oreern D =l estrkKed Delivery Fes ( ere Total Postage 6 Fees Posbnark Fiore 11/i4hff P"to or po Box tio. ` p r ?- ---- =--------------- - - lu1 )uw !ttt!Iq Unui I (I,NN llbl Inquniu nn nUlllln1l!flUll ¦ Complete items 1, 2, and 3. Also complete Item 4 if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: ?res'?c\en? !?v rlor(kW-1 C0MpxmlOs Go, Ito \WQS?t orb(\A gtreei- P10 e nk, Q? 01W A- s5? ? X B. Received by (Printed D. Is delivery address dif H YES, enter delivery Agent C,'R%V Delivery 3. Service Type 1RCCertMed Mail ? Ids Mail ? Registered N(Retum Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Delivery? (Extra Fbq 2. Article Number 7007 3020 0002 1421 5662 Mar for ham saMor aw Ps Form 3811, February 2004 Domsstic Retum PAOGO , ,s+o r..a } JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on October 27, 2008, I served on Mr. Ara K. Hovnanian, President of Defendant, Hovnanian Enterprises, Inc., 110 West Front Street, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by his on October 30, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Respectfully sub , NESTICO, D i?-IILD)NBRANBH L.L.P. By: Richard B. Druby!E Attorney I.D. N q. 61 840 E. Chocolatd,4&e. Hershey, Pennsylvania 17033 (717) 533-5717 Date: Attorney for Plaintiffs NESTIC09 DRURY & RILDABU D, LLP ATTORNEYS AT LA W 840 East Chocolate Avenue, Hershey, PA 17033 Phone(717)533-5406 Fax(717)533-5717 www.hersheypalaw.com October 27, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REQUESTED Mr. Ara K. Hovnanian, CEO and President HOVNANIAN ENTERPRISES, INC. 110 West Front Street Red Bank, NJ 07701 Re: O'Grady v Hovnanian Enterprises, Ina et at: Cumberland County Docket No. 08-6296 Dear Mr. Hovnanian: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Complaint for Declaratory Judgment filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DjkUKA?IILD,ABRAND, LLP By: Richard A. RBD:bls Enc. ti 0 0 0 C3 p Toml Pastaps 8 Fees 01(:Q 7/0 1? M t o ? o o ec ?a?(1- 4 ?Zlc`bK --1h?5??.._?t a_ 3------------------- PO Box Ab. 0 77 01 ¦ Complete Items 1, 2, and 3 Also complete item 4 if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Gov fm'\on tq?&P'15m,'fx. Mr , 4?c?,, ? • ?V nan?c?ln , CS O -ti ?reSidei 110 W OS'k ??nt r ee} A. signature X ? Agent ? Addressee B. Received by (Printed Name) Date of Delivery D. Is delivery address If YES, enter delM 3. Service Type )KCertitled Mail 0 Express Mail ? Registered X Return Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted DeBvery i' (Fxfrs Fee) AYes 2. Article lumber 7007 3020 0002 1421 5525' (rlar"Aw Num so Wbe Nt,.t) PS norm 3811, Febnmy 2oo4 Don nlc Rstum Receipt io26adoz tir ts+o R9d 8an?., tJJ L) I-I oI d' - r fill r r W JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; : K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on October 27, 2008, I served on Mr. Ara Hovnanian, CEO of Defendant, K. Hovnanian Venture I, LLC, 110 West Front Street, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by his authorized agent on October 30, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Date: 10;? 5 0 Respectfully NESTICO, I By: Richard B. Drub f, Esq ire Attorney I.D. No. 619 4 840 E. Chocolate Ave. Hershey, Pennsylvania 17033 (717) 533-5717 Attorney for Plaintiffs INDH HSTIC0, DRUBY & KDABMM LLP ATTORNEYS AT LAW 840 East Chocolate Avenue. Hershey, PA 17033 Phone(717)533-5406 Fax(717)533-5717 www.hersheypalaw.com October 27, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REQUESTED Mr. Ara Hovnanian, CEO K. HOVNANIAN VENTURE I, LLC 110 West Front Street Red Bank, NJ 07701 Re. O'Grady v Hovnanian Enterprises, Inc. et aL Cumberland County Docket No. 08-6296 Dear Mr. Hovnanian: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Declaratory Judgment Complaint filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, DOW f ffl] ?DABRAND, LLP By: RBD:bls Enc. cc: Jim and Florence O'Grady U.S. Postal Ser vice i Q- CERTIFIED D MAIL RECEIPT ( omestic !? FFI CI AL TST n, ?- %afte $ rq j oenteed Fee ti i C3 ? Realm Rsoeipt Fee E d Paetrnsrk I G I ( n orsement Required) Mere r O «.n..waenron[ nequlreOJ C3 C3 Tofel Poetege & Fees . M Sent O M1 I.CLtttJ?C 4.3.1. LC A - - a ? or AO Baur No. -------°-------------- Ito V95 is save awe -- - - - -- - - -- --------------------------- II 4iNi ?uilu? 'pill ?gquniunn imnnuuiiuui ¦ Complete items 1, 2, and 3. Also comp1% item 4 if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: llb WQSt ?ran? StrPet RQCt O.n k , W D 7 ? of A. Signs x ? Agent r1 Addressee B. Received by (Printed _ of Delivery D. Is delivery address If YES, enter delivi 3. Service Type Certified Mail ? Express Mail ? Registered 6( Return Receipt for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Delivery? g5ftm Fee) Was 2. Article Number 7007 3020 0002 1421 5549 (Iiarww fiom servfoe r neq PS Form 3811, February 2004 Dw mtlc Return Receipt 102596-02-M•1540 x?, .?{?_ f?, . f c- _f z ` * ? c? ? ? : ^? ? . ?. ._ -?-?'' ;- ? 7 n,?! _ pr K I? V JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN ENTERPRISES, INC.; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE I, Richard B. Druby, Esquire, counsel for Plaintiff, hereby certify that on October 27, 2008, I served on Kevork S. Hovnanian, Chairman of Defendant, K. Hovnanian Enterprises, Inc., 10 Highway 35, Red Bank, NJ 07701, the Complaint for Declaratory Judgment via certified mail, restricted delivery, return receipt requested. The green return receipt for said service indicates that the same was received by his authorized agent on October 30, 2008. Attached hereto, marked as Exhibit A and incorporated herein by reference are the cover letter and green return receipt for the service of the original Complaint for Declaratory Judgment. Date: l? S?6 Respectfully NESTICO, I By: )Kichard B. Druby sq re/ Attorney I.D. No 61994 840 E. Chocolate . Hershey, Pennsylvania 17033 (717) 533-5717 Attorney for Plaintiffs .L.P. gND NESTICO, DROY & RILDAR ND, LLP ' ATTORNEYS AT LAW 840 East Chocolate Avenue, Hershey, PA 17033 Phone(717)533-5406 Fax(717)533-5717 www.hersheypalaw.com October 27, 2008 VIA CERTIFIED MAIL, RESTRICTED DELIVERY, RETURN RECEIPT REQUESTED Kevork S. Hovnanian, Chairman' K. HOVNANIAN ENTERPRISES, INC. 10 Highway 35 Red Bank, NJ 07701 Re: O'Grady v Hovnanian Enterprises, Inc et al, Cumberland County Docket No. 08-6296 Dear Mr. Hovnanian: Pursuant to the Pennsylvania Rules of Civil Procedure, you are hereby served with the Complaint for Declaratory Judgment filed against your Company in the above matter. Please read that document carefully and act accordingly. Very truly yours, NESTICO, D"Y HILDABRAND. LLP By: Richard RBD:bls Enc. Postal Service CERTIFIED MAIL RECEIPT (Domestic Coverage Provided) OFFICIAL Posts" $ cernnsd Fee ?" Paabnerk (Endow =R-8" -- Total Postage & Fees $11 -C J 1 SWO TO 141-L -" r.__ 4a (_[xKt _`.. _ ,?lei:p_r_?us_ 1 nc - orPO Born nb. - l -: ------------------------------------ c-571 Of ¦ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: kevooc S. Avno-bon % Cho-a mah K Ooino-n'lo,-) fn`f erpri?zS , Inc- Iv k?5iWay 3s flank , w un of A Signs ft X ? Agent ??= ? Addre see B. Received by (Printed Nay f ;?tA,pf Delivery D. Is delivery address dif If YES, enter delivery 3. Service Type b(CertNied Mail ? Express Mall ? Registered WRstum Recut for Merchandise ? Insured Mail ? C.O.D. 4. Restricted Delivery? (Extra Fee) bf Y. 2. Article Number 7007 3020 0002 1421 5563 (I/wmfsrf rnm AsW PS f=orm 3811, February 2004 Domestic Pat" Reoslpt rotes a¢ et tsw ?.... ,-S _ a ,...? ? .?::x ..i.,? '--{ ? ... C"J X?f:;.; ??? ?? ? rte.. ? ? 6 ?? RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdrubyahersheypalaw.com Attorneys for Plaintiffs ............................................................................. JAMES P. O'GRADY, JR and IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, V. HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. : DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED PLAINTIFFS' REPLY TO DEFENDANTS' NEW MATTER 46. Conclusion of law, to which to no response is required. To the extent a response is required, the allegations in paragraph 46 are specifically denied. On the contrary, Plaintiffs believe and therefore aver that the Defendants have failed to maintain corporate formalities and/or failed to operate each of these entities separately and independently. In fact the Defendants operate these companies simply as "Hovnanian Homes," an entity which does not exist. Plaintiffs further believe that the Defendants abused the legal fiction of the corporate entities by having employees of one company perform the operations of the other companies by whom they are not employed and by attempting to structure the relationship among the parties so that K. Hovnanian at Silver Spring, LLC allegedly entered into the Agreement with Plaintiffs to construct the residence yet K. Hovnanian Venture I, LLC constructed the residence in an apparent attempt to insulate some or all of the Defendants from liability. 47. Conclusion of law, to which no response is required. To the extent a response is required, the purchase agreement speaks for itself. In further answer, as the warranty (hereinafter "Warranty") issued by Professional Warranty Services Corporation (hereinafter "PWC") was issued on behalf of K. Hovnanian Venture I, LLC as the builder of Plaintiffs' residence, K. Hovnanian at Silver Spring, LLC is in breach of the purchase agreement by failing to provide on its behalf the promised additional warranty in favor of the Plaintiffs. 48. No response is required as the purchase agreement speaks for itself. 49. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 49 are specifically denied. 50. Conclusion of law, to which on response is required. To the extent a response is required, the allegations of paragraph 50 are specifically denied. 51. Admitted in part and denied in part. Plaintiffs believe and therefore aver that the document attached to the Declaratory Judgment Complaint as Exhibit C is a document issued by PWC at the request of K. Hovnanian Venture I, LLC, the purported builder of Plaintiffs' residence. 52. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 52 are denied. In further answer, the responsible party under the Warranty issued by PWC and the only Defendant party referenced by the Warranty is K. Hovnanian Venture I, LLC. All communication from PWC regarding the issues raised by the Plaintiffs has been sent to K. Hovnanian Venture I, LLC. At no time did K. Hovnanian at Silver Spring, LLC ever inform Plaintiffs that they were inadvertently or otherwise not 2 listed as the builder on the Warranty Validation Form nor at any time has K. Hovnanian Venture I, LLC notified the Plaintiffs that they were incorrectly designated as the builder on the Warranty Validation Form. 53. No response is required as Exhibit 1 speaks for itself. However, Plaintiffs were not provided the Homebuilder's Limited Warranty document (PWC Form # 117) until it was sent to them after issuance of the Warranty on December 12, 2006. Accordingly, at the time of signing the document, Plaintiffs had not yet received, reviewed, understood or agreed to the terms of the Warranty as it was not provided to them by the Defendants or anyone else. 54. Conclusion of law, to which no response is required. To the extent a response is required, it is admitted that after issuance of the Warranty Validation Form, Plaintiffs had received the Limited Warranty document, PWC Form # 117. It is specifically denied that the Plaintiffs at the time of closing received, reviewed, understood and agreed to the terms of the Limited Warranty document, PWC Form # 117 including the requirements relating to arbitration or, at any time after closing, understood and agreed to those terms of the Warranty. Further, Plaintiffs believe that those provisions are unenforceable for the reasons set forth in their Complaint. 55. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 55 are specifically denied and that Plaintiffs had not agreed to the terms of the Homebuilder's Limited Warranty. Furthermore, the Homebuilder's Limited Warranty speaks for itself. Additionally, the Homebuilder's Limited Warranty only relates to K. Hovnanian Venture I, LLC as that is the entity listed as the builder on the Warranty Validation Form. 56. Conclusion of law, to which no response is required. To the extent a response is required, it is specifically denied that Plaintiffs' claims are limited solely to the design and construction of the home and it is further denied that the claims are subject to binding arbitration pursuant to the terms of the Homebuilder's Limited Warranty for the reasons set forth elsewhere in this Reply to New Matter and in Plaintiffs' Declaratory Judgment Complaint. 57. Conclusion of law, to which no response is required. To the extent a response is required, it is specifically denied that Plaintiffs' claims are subject to binding arbitration pursuant to the terms of the Homebuilder's Limited Warranty for the reasons set forth elsewhere in this Reply to New Matter and in Plaintiffs' Declaratory Judgment Complaint. 58. Conclusion of law, to which no response is required. To the extent a response is required, it is denied that Plaintiffs are obligated to submit their claims against K. Hovnanian at Silver Spring, LLC to binding arbitration as K. Hovnanian at Silver Spring, LLC is not a party to the Warranty. Additionally, as the Homebuilder's Limited Warranty was prepared on behalf of Defendant K. Hovnanian Venture I, LLC, the interpretation of the Warranty must be construed against it and in favor of the Plaintiffs. Accordingly, the document cannot be interpreted to include K. Hovnanian at Silver Spring, LLC as an entity acting on behalf of the builder, K. Hovnanian Venture I, LLC. 59. Conclusion of law, to which no response is required. To the extent a response is required, the allegations are specifically denied. Defendants have admitted that there are construction defects and deficiencies in the Plaintiffs' residence and have promised to correct those problems. However, despite the passage of a significant amount of time, those construction defects and deficiencies remain uncorrected and Defendants have not taken the steps to correct those problems, despite promises to do so. 60. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 60 are specifically denied. It is denied that the construction defects and deficiencies are subject only to the Homebuilder's Limited Warranty as Defendants are liable in court for those construction defects and deficiencies under theories of breach of contract, breach of implied warranties, breach of express warranties, negligence, fraud, violations of the Unfair Trade Practices and Consumer Protection Law and violations of The Magnuson-Moss Act. Additionally, the allegations are further denied, as the Plaintiffs have not prevented the Defendants from correcting the defects and deficiencies. On the contrary, Plaintiffs have permitted numerous inspections by the Defendants, their engineer and their subcontractors. Despite Plaintiffs' efforts to have the Defendants correct the defects and deficiencies, the Defendants have failed to correct those problems, despite promises to do so. 61. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 61 are specifically denied. WHEREFORE, Plaintiffs respectfully request that this Honorable Court dismiss Defendants' New Matter and declare the following: a. The Warranty does not control the relationship between Plaintiffs and K. Hovnanian at Silver Spring, L.L.C. and the rights and obligations of the parties are controlled by the Agreement and otherwise. b. The Warranty does not control the relationship between the Plaintiffs and the other Defendants. c. Because Defendants, Hovnanian Enterprises, Inc., K. Hovnanian Enterprises, Inc., K. Hovnanian at Silver Spring, L.L.C., K. Hovnanian Companies of Pennsylvania, Inc. and K. Hovnanian Homes of Pennsylvania, L.L.C. are not parties to the Warranty, the arbitration provisions do not apply to any claims between Plaintiffs and those Defendants. d. As Plaintiffs did not sign the Warranty or any document indicating that they agreed to the terms of the Warranty, Plaintiffs cannot be held to have waived their rights to proceed to court with regard to the Warranty. e. Further, the arbitration provisions of the Warranty are invalid because they are unconscionable, unilaterally imposed and in violation of public policy. f. Defendant, K. Hovnanian Venture I, L.L.C., having provided a written warranty, may not disclaim any implied warranties to the Plaintiffs. g. Defendant, K.Hovnanian Venture I, L.L.C. has failed to comply with the Magnuson-Moss Act and has failed to properly disclaim the implied warranties. Accordingly, those implied warranties exist and a violation of those implied warranties may be asserted by the Plaintiffs. h. Any other relief later requested by Plaintiffs or that the Court deems just and proper. L.L.P. By: Richard B. Vby Attorney I. 4 840 E. Cho enue Hershey, PA 17033 Q (717) 533-5406 Telephone Date: d 1 Attorneys for Plaintiffs vE?ca?ox We, James O'Grady and Florence O'Grady, verify that the statements made in the foregoing document are true and correct to the best of our knowledge, information and belied We understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. r Date: ZZ +''""° J O'GRADY Date; / 2 p? RENCE O'GRADY -? CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, of the law firm of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the 8t' day of January, 2009, a copy of the foregoing document was sent via First Class U.S. Mail, postage paid, to the following: Mr. Glenn Campbell, Esquire Gibley & McWilliams PC 524 N Providence Road Media, PA 19063 8 C "CIF C,._ CID RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdruby_(a,,hersheypalaw.com JAMES P. O'GRADY, JR and IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, V. DOCKET NO. 08-6296 CIVIL TERM HOVNANIAN ENTERPRISES, INC., K.HOVNANIAN ENTERPRISES, INC, K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC : DECLARATORY JUDGMENT Defendants. JURY TRIAL DEMANDED PLAINTIFFS' MOTION TO COMPEL DISCOVERY AND NOW, come the Plaintiffs, by their attorneys, Nestico, Druby & Hildabrand, L.L.P. and move this Honorable Court pursuant to Pa.R.C.P. 4019 to enter an Order compelling the Defendants to answer, without objection, interrogatories and respond to request for production of documents for the reasons stated below: 1. On October 23, 2008, Plaintiffs filed a Declaratory Judgment Complaint seeking a declaration and interpretation of a homeowners' warranty issued by Professional Warranty Service Corporation. 2. On or about December 2, 2008, Defendants filed an Answer with New Matter to the Declaratory Judgment Complaint. 3. On December 9, 2008, Plaintiffs served upon Defendant Interrogatories and Requests for Production. The Interrogatories are limited in number, inquiring into recognized areas of discovery, and the Requests for Production likewise call for the production of documents or other items which may lead to the discovery of admissible evidence. Copies of the Interrogatories and Requests are attached as Exhibits A and B hereto. 4. On June 15, 2009, undersigned counsel forwarded an email to Defendants' counsel requesting that he provide his clients' responses which were overdue to the discovery requests. 5. On August 18, 2009, not having received any responses to the discovery requests, undersigned counsel forwarded a letter to Defendants' counsel again requesting that his clients respond to the discovery requests within seven (7) days of the date of the letter so as to avoid a motion to compel. See undersigned counsel's letter of August 17, 2009 attached hereto as Exhibit C. 6. To date, Defendants have neither answered the interrogatories, produced the documents or other items, nor filed any objections within the time allowed by law. 7. Plaintiffs cannot properly prepare the prosecution of this action without the information requested of Defendants. 8. Because of Defendants' failure to provide the information, documents and other things requested, it is appropriate for an Order to be issued requiring Defendants to comply fully with the discovery requests or to suffer sanctions, including judgment, for failure to comply, all pursuant to Pa.R.C.P. 4019 and other applicable law. M r 9. On Wednesday, September 23, 2009, undersigned counsel emailed a copy of the Motion to Compel to Defendants' counsel seeking his concurrence as required by local rule. Defendants' counsel did not respond to the request for concurrence and it is presumed that he does not concur in this motion. WHEREFORE, Plaintiffs request that this Honorable Court enter an Order requiring Defendants to provide full and complete answers, without objections, to Plaintiffs' Interrogatories and to produce fully the documents requested in Plaintiffs' Requests for Production within ten (10) days, with sanctions to be placed upon Defendants, upon further application of the Plaintiffs, if Defendants fail to comply with such Order. Respectfully submitted, NESTICO, DRUBY, By: Date: 6chard B. Druby, E quire Attorney I.D. No. 61 840 East Chocolate Avenue Hershey, Pennsylvania 17033 (717) 533-5406 Attorney for Plaintiffs L.L.P. RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabmnd, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdn ft a@hershenWaw.com Attorneys for Plaintiffs ............................................................................. JAMES P. O'GRADY, JR and : IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, V. : DOCKET NO. 08-6296 CIVIL TERM HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, : DECLARATORY JUDGMENT Defendants. : JURY TRIAL DEMANDED PLAINTIFFS' INTERROGATORIES DIRECTED TO DEFENDANTS TO: Defendants We are enclosing herewith Interrogatories propounded by Plaintiffs to be answered by Defendants within thirty (30) days from the date of service hereof, with a request that a copy of the answers be served upon counsel for Plaintiffs. These shall be deemed to be continuing Interrogatories. If, between the time of your answers and the time of trial of this case, you or anyone acting on your behalf, learns of any further information not contained in your answers, you shall promptly furnish such information to the undersigned by supplemental answers. This cause of action relates to the construction defects and deficiencies caused by the some or all of the Defendants in the construction of the O'Grady residence at 35 Bella Vista • Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050. NESTICO, DRUBY & MLDABRAND, L.L.P. By: Richard B. Druby Attorney I.D. No. 61904 840 E. Chocolate Avenue Hershey, PA 17033 (717) 533-5406 Telephone Date: Attorneys for Plaintiffs Definitions: A. The words "you" refers to Defendants, their owners, shareholders, employees, servants and agents either individually or collectively. B. The term "person," as used herein, means any natural person, partnership, corporation, or other business entity and all present and former officers, directors, agents, employees, attorneys, and other acting or purporting to act on behalf of such natural person, partnership, corporation, or other business entity. C. The term "document," as used herein, mean the original and all copies of any written, printed, typed, or other graphic matter of any kind or nature and any other tangible thing in your custody or control, including but not limited to: 1. All contracts, agreements, letter agreements, representations, warranties, certificates, and opinions; 2. All letters or other forms of correspondence or communication, including envelopes and notes, telegrams, cables, telex messages, telex and messages, including reports, notes, notes, notations, and memoranda of or relating to telephone conversations or conferences; 3. All memoranda, reports, test results, financial statements or reports, notes, scripts, transcripts, tabulations, studies, analyses, evaluations, projections, workpapers, corporate records or copies thereof, expressions or statements of policy, lists, questionnaires, surveys, charts, graphs, summaries, extracts, statistical statements or records, compilations and opinions or reports of consultants; 4. All desk calendars, appointment books, and diaries; 3 • 5. All minutes, records, or transcripts of meetings and conferences and lists of persons attending meetings or conferences; 6. All reports and summaries of interviews or negotiations; 7. All books, articles, press releases, magazines, newspapers, booklets, brochures, pamphlets, circulars, bulletins, notices, instructions, and manuals; 8. All motion pictures and photographs (whether developed or undeveloped), tape recordings, microfilms, phonographs, tapes or other records, punch cards, magnetic tapes, discs, data cells, drums, print-outs, and other data compilations from which information can be obtained; and 9. Drafts of any documents, revisions of any draft documents, and original or preliminary notes. D. The term "communication," as used herein, means all statements, admissions, denials, inquiries, discussions, conversations, negotiations, agreements, contracts, understandings, meetings, telephone conversations, letter, correspondence, notes, telegrams, telexes, advertisements, or any other form of written or verbal intercourse. E. The term "identify," when used with respect to a document, means to state the date, author, addressee, type of document, (e.g., "letter"); to identify its last known custodian and location; and to state the exhibit number of the document if it has been marked during the course of a court proceeding. F. The term "identify," when used with respect to an individual, means to give the person's full name, all known aliases, present or last known business and home addresses and telephone numbers, and present position or business affiliation. 4 G. The term "identify," when used with respect to any other "person," means to give the person's official, legal, and formal name or the name under which the person acts or conducts business, the address and telephone number of the person's place of business, professional, commerce, or home, and the identity of the person's principal or chief executive officer or person who occupies the position most closely analogous to a chief executive. H. The term "relate(s) to," as used herein, means constitute(s), refer(s) to, reflect(s), concern(s), pertain(s) to, or in any way logically or factually connect(s) with the matter described in the interrogatory. s • INTERROGATORIES 1. List the name and address of all employees and agents of Defendants (other than employees or agents with merely clerical functions), including subcontractors/ trade-partners that in any way or manner were involved in the construction of the O'Grady Residence, 35 Bella Vista Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050. ANSWER: 6 • 2. For each of the individuals names above, please list the following: (a) The job title or classification held by the individual at the time the individual was involved with the O'Grady residence; (b) The current title or job classification held by that individual; and (c) If any individual no longer works for your company, please provide us with his name, last position with your company and last known address. ANSWER • 3. Of those persons listed in response to Interrogatories #1 and #2, please state the names of those individuals in a managerial capacity who participated in the construction of the O'Grady residence or the oversight of the construction of the O'Grady residence. ANSWER: • 4. Have you ever been a party to any legal action in the Commonwealth of Pennsylvania brought for breach of contract, breach of implied warranty of good and workmanlike performance, breach of implied warranty of habitability, Violation of the Magnuson-Moss Act and/or violation of the Unfair Trade Practices and Consumer Protection Law in the proceeding ten (10) years? ANSWER: • 5. If the answer to the immediately proceeding interrogatory is in the affirmative, please state for each such action: (a) The names and addresses of all parties; (b) The date of filing of the action; (c) The county in which the action was filed; (d) The substance of the facts, as set forth in the complaint; (e) Whether the action has been settled, adjudicated or is pending; (f) The nature or result of any disposition of that action; and (g) The name and address of the attorney representing Plaintiff in said actions. ANSWER: 10 • 6. Please provide your policy or standards regarding training, supervision and inspection of homes Defendants construct including, but not limited to, the O'Grady residence. AN? :: II • 7. Please state, in detail, any and all steps Defendants took, and provide a list of the materials used, to install the windows in the O'Grady home, including but not limited to the two-story window wall in the family room of the residence. Additionally, please provide the name of the manufacturer of the windows installed in the O'Grady home and provide the installation specifications issued by the window manufacturer. ANSWER: 12 • 8. Please state, in detail, any and all steps Defendants took, and provide a list of the materials used, to install the tile flooring at the O'Grady residence. ANSWER: 13 • 9. Please state, in detail, any and all steps Defendants took, and provide a list of the materials used, to install the front door and breakfast door at the O'Grady residence. ANSWER: 14 • 10. Please state, in detail, any and all steps Defendants took, and provide a list of the materials used, to install joists under the kitchen floor at the O'Grady residence. ANSWER: 15 • 11. Please state, in detail, any and all steps Defendants took, and provide a list of the r .. materials used, to install the catwalk above the family room at the O'Grady residence. ANSWER: 16 • 12. Please state, in detail, any and all steps Defendants took, and provide a list of the materials used, to install the bathroom fixtures at the O'Grady residence. ANSWER: 17 • 13. Did Defendants test moisture levels inside the O'Grady home upon completion of construction to ensure that those levels were acceptable? If so, please provide the results of that testing. If not done, why not? ANSWER: 18 • 14. Please provide Defendants' policy or standards regarding training, supervision and inspection of homes Defendants construct including, but not limited to, the O'Grady home. ANSWER: 19 • 15. Please provide the blue prints, materials list and any and all other drawings or schematics of the O'Grady residence and the other homes Defendants built which comprise the rest of the development known as Bella Vista of which the O'Grady residence is part. ANSWER: 20 16. Please provide the name and address of every purchaser of every home built by Defendants within the Bella Vista development. ANSWER: 21 • 17. State the history of your investigation into the events that give rise to this lawsuit. Identify any investigators, persons he or she communicated with, and dates of said- communication or attempted communication. Identify documents that were examined, dates of such examination and the identity of any person conducting the examination. ANSWER: 22 • 18. State whether or not any policies of liability insurance, including expenses or umbrella coverage, were carried by you or anyone else from 2005 to the present, which policies covered you. If so, state the following: (a) The name and address of the company issuing such policy. (b) The policy number. (c) The names of the persons named as insured under each such policy. (d) The maximum and minimum limits of liability for each such policy and the deductible amount, if any. (e) Whether the insurance company issuing each such policy has denied coverage with respect to the occurrences at the O'Grady residence, and if so, the nature and reason for such denial. (f) Whether the insurance company issuing each such policy has required the execution of any agreement by you or on your behalf before undertaking to defend this action; and if so, the nature of such agreement and the reason why the agreement was required (g) Whether, to the best of your knowledge, each of the policies provided coverage for the damages claimed by the O'Gradys was in full force and effect on the date of the occurrences mentioned in the Complaint or any of the pleadings which make a claim against you and if not, state in full why said policies were not in effect, specifically listing each such policy or policies and each and every reason. ANSWER: 23 19. Identify each person whom you expect to call as an expert witness at the trial of this case. As to each witness state: (a) The subject matter on which he is expected to testify. (b) The facts and opinions to which he is expected to testify. (c) A summary of the grounds for each opinion. (d) Whether the facts and opinions listed in (b) above are contained in it written report, memorandum, or other transcript and if they are, give the name and address of the present custodian of same and state whether you will provide the same without the necessity of a motion. (e) If the opinion of any expert listed above is based in whole or in part on any scientific rule or principle, set forth the said rule or principle. (f) If the opinion of any expert listed above is based in whole or in part on any code, regulation or standard, governmental or otherwise, identify the said code, regulation or standard and specifically set forth the section relied upon. (g) If the opinion of any expert listed above is based in whole or in part upon any scientific or engineering textbook or other publication, identify said text or publication. ANSWER: 24 • 20. With respect to each person you expect to call on as expert witness at the trial of this case, state: (a) His age, residence and business address. (b) The name and address of his present employer or if self-employed, the name of the business and his occupation. (c) His educational background specifying colleges attended, dates of attendance, degrees attained, and a detailed list of all writings prepared by the expert or in which the expert participated in any way whatsoever. (d) Specific identification of all courses attended, seminars attended, and other activities on the part of the expert within the past ten years which were concerned with the subject of which the expert was retained in this case. (e) The name and address for the persons or firms for whom the individual worked for the last ten years and a detailed description of all duties at each place of employment. If the expert was self-employed, state specifically and in detail the description of his duties and responsibilities. ANSWER: 25 21. Do you intend to use any book, magazine or other writing at the trial of this case? If . so, describe the writing in detail as to author, publisher, copyright date, and give the name and address of any known present custodian of said writing. ANSWER: 26 • 22. Have you or has any one acting on your behalf obtained from any person or persons any report, statement, memorandum or testimony concerning the O'Grady Residence or its construction? If so: (a) What is the name and last known address and present whereabouts, if known, of each such person? (b) When, where and by whom was each such report, statement, memorandum or testimony obtained or made? (c) Where is each located? ANSWER: 27 • 23. If you are in possession of any photographs of the locale or surrounding area of the site of the incident, the O'Grady residence, or any other matters or things involved in this incident, state: (a) The date(s) when such photographs were taken; (b) The names and addresses of the party taking them; (c) The object(s) or subject(s) or the particular site or view each photograph represents; (d) Where they were taken; and (e) The present whereabouts of the photographs and the name and addresses of whomsoever is in possession or custody thereof. ANSWER: 29 24. State the name, present address, and place of employment of each person whom you intend or expect to call as a witness at the trial of this case. ANSWER: 29 25. Please state, in detail, your reasons why the problems with the O'Grady residence. ANSWER: 30 26. Please state, in detail, the duties and obligations of each of the Defendants with regard to the O'Grady residence. Specifically, identify the entity that: a. Sold the O'Grady Residence to the O'Gradys; b. Constructed the O'Grady residence; C. Hired Subcontractors to work on the O'Grady residence; d. Issued a warranty for the O'Grady residence; e. Received payment for the residence at the time of closing with the O'Gradys; f. Reported profit from the sale of the residence to the O'Gradys. Please attach to your answers any and all documents, including but not limited to contracts, trade-partner agreements, requests for payment, change order requests, materials lists, and invoices that reflect the party responsible for the above duties and obligations. Also attached to your answers any warranties issued by or on behalf of any of the Defendants. ANSWER: 31 • 27. Please provide any and all contracts that exist between and among the Defendants for the sale and construction of homes in the Bella Vista Development. ANSWER: 32 • 28. Please provide the name and address of your bookkeeper, certified public accountant, public accountant or other individual or entity retained for the purpose of performing financial accounting practices for Defendants' business operations since January 1, 2000 to the present. ANSWER: 33 29. Please provide the name of the banking institution where bank accounts are maintained by Defendants in any capacity for the period January 1, 2000 to the present. ANSWER: 34- 30. Please provide the name and address of the individual who takes and maintains the minutes of meetings of the Board of Directors and/Officers of Hovnanian Enterprises, Inc., K.Hovnanian at Silver Spring, LLC, K.Hovnanian Enterprises, Inc., K.Hovnanian Venture I, LLC, and K. Hovnanian Homes of Pennsylvania, LLC. and K.Hovnanian Companies of Pennsylvania, Inc. ANSWER: 35 31. Please list the officers and members of the Board of Directors for each of the Defendants. ANSWER: Date: - S- 4 F Respectfully NESTICO, By: Richard B. Drub Attorney I.D. N 619 840 E. Chocolate nue Hershey, PA 17033 (717) 533-5406 Telephone Attorneys for Plaintiffs 36 L.L.P. CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, poif?the law fixm, of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the J " day of 2008, a copy of the foregoing document was sent via Certified Mail, return receipt requested, to the following: Glenn M. Campbell, Esquire 524 North Providence Road Media, PA 19063 B. RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel. 717-533-5406 rdruby hersheypaIaw.com Attorneys for Plaintiffs ............................................................................ JAME S P. O'GRADY, JR and : IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, V. HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN ENTERPRISES, INC; K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC; K.HOVNAAIIAN COMPANIES OF PENNSYLVANIA, INC; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants. : DOCKET NO. 08-6296 CIVIL TERM : DECLARATORY JUDGMENT : JURY TRIAL DEMANDED PLAINTIFFS' REOUEST FOR PRODUCTION OF DOCUMENTS DIRECTED TO DEFENDANTS TO: Defendants Pursuant to Pa. Rule of Civil Procedure 4009, you are hereby requested to produce for inspection and copying at the office of Plaintiff's counsel, Nestico, Druby & Hildabrand, L.L.P., 840 East Chocolate Avenue, Hershey, PA. 17033, or at such other location as may be mutually agreed upon by counsel not later than thirty (30) days after service of these Requests, the following documents. In lieu of the formal scheduled production, copies of all requested documents, properly identified by request, may be forwarded to Plaintiffs' counsel at the above address within thirty (30) days after service of these Requests. These Requests are deemed to be continuing Requests, and any documents or information requested herein which is discovered, obtained or available subsequent to your first response hereto shall be furnished immediately to Plaintiffs' counsel. DEFINITIONS The word "document" or "documents" are used in the within Request includes, without limitation or exception, the original and copies of the following items: (Whether printed or recorded or reproduced by any other mechanical process, or written or produced by hand). Agreements, communications, correspondence, telegrams, memoranda, summaries or records of personal conversations or interviews, diaries, reports, graphs, notebooks, note charts, plans, drawings, sketches, maps, summaries or records of meetings or conferences, summaries or reports of investigations or negotiations, opinions or reports of consultations, drafts, letters, any marginal comments appearing on any document, and writings of every kind. This definition shall also be deemed to include any machine-produced document, whether from a computer or not, notes and records of any oral communication and recordings (tape, disk, or other) of oral communications. The definition also includes but is not limited to any electronically stored data on magnetic or optical storage media as an "active" file or files (readily readable by one or more computer applications or forensics software); any "deleted" but recoverable electronic files on said media; any electronic file fragments (files that have been deleted and partially overwritten with new data); and slack (data fragments stored randomly from random access memory on a hard drive during the normal operation of a computer [RAM slack] or residual data left on the hard drive after new data has overwritten some but not all of previously stored data). 2 The word "communication" as used in the within Request shall mean any transmission of information by oral, written, pictorial, or otherwise perceptible means, including, but not limited to, telephone conversations, letters, telegrams, and personal conversations. The word "person" as used in the within Request shall mean any individual, corporation, partnership, unincorporated or business entity. The following definitions also apply: Application Software: A set of electronic instructions, also known as a program, which instructs a computer to perform a specific set of processes. Archive: A copy of data on a computer drive, or on a portion of a drive, maintained for historical reference. Backup: A copy of active data, intended for use in restoration of data. Computer: Includes but is not limited to network servers, desktops, laptops, notebook computers, employees' home computers, mainframes, the PDAs of Defendants and its employees (personal digital assistants, such as PalmPilot, Cassiopeia, HP Jornada and other such handheld computing devices), digital cell phones and pagers. Data: Any and all information stored on media that may be accessed by a computer. Hard Drive: The primary hardware that a computer uses to store information, typically magnetized media on rotating disks. Imaged Copy: A "mirror image" bit-by-bit copy of a hard drive (i.e., a complete replication of the physical drive). 3 Magnetic or Optical Storage Media: Include but are not limited to hard drives (also known as "hard disks"), backup tapes, CD-ROMs, DVD-ROMs, JAZ and Zip drives, and floppy disks. Network: A group of connected computers that allow people to share information and equipment (e.g., local area network [LAN], wide area network [WAN] metropolitan area network [MAN], storage area network [SAN], peer-to-peer network, client-server network). Operating System: Software that directs the overall activity of a computer (e.g., MS-DOS, Windows, Linux). Network Operating System: Software that directs the overall activity of networked computers. Software: Any set of instructions stored on computer-readable media that tells a computer what to do. Includes operating systems and applications. Storage Devices: Any device that a computer uses to store information. Storage Media: Storage media are any removable devices that store data. DOCUMENTS TO BE PRODUCED 1. All statements, signed statements, transcripts of recorded statements, or interviews of any person or witness relating to, referring to, or describing any of the events or claims described in the pleadings filed in the case. 2. The complete file maintained by you relating to all homes constructed by you in the Bella Vista Development (hereinafter "the Development"), including the O'Grady 4 residence located at 35 Bella Vista Drive, Mechanicsburg, Cumberland County, Pennsylvania (hereinafter "the Residence'). This request includes, but is not limited to, the following: (a) All work orders with regard to homes constructed by any of the Defendants in the Development and the Residence; (b) Any and all materials lists for the homes constructed by any of the Defendants in the Development and the Residence; (c) Any and all plot plans, blue prints, schematics, drawings or other renderings of the homes constructed by any of the Defendants in the Development and the Residence; (d) All plans, zoning documents, topographical drawings and other similar renderings; (e) Any and all permit applications and copies of permits issued; (f) Any and all building codes relied upon or utilized for homes constructed by any of the Defendants in the Development and the Residence; (g) Any and all other documents not specifically described above which form part of the file or in any way relate to the homes constructed by any of the Defendants in the Development and the Residence. 3. All documents prepared by any insurer or representatives of Defendants, except Defendants' attorneys, during an investigation of any and all claims arising out of the construction and condition of the O'Grady Residence. Such documents shall include any documents made or prepared up to the present time, with the exclusion of the mental 5 impressions, conclusions or the opinions respecting the value or merit of a claim or defense or respecting strategy or tactics. 4. All photographs of the homes constructed by any of the Defendants in the Development and the Residence or any of the instrumentalities involved in the incident. 5. All reports of any experts. 6. All copies of any and all policies insuring you for the years 2003 through the present. 7. Copies of all manuals, training material or any other documents of Defendants regarding homes constructed by any of the Defendants in the Development, the Residence or any other facility constructed by any of the Defendants between 2003 and the present. 8. All documents, writings, memoranda, data, physical evidence, photographs, video tapes, models, diagrams and/or tangible things of any nature whatsoever referred to or consulted in any manner whatsoever in answering the accompanying interrogatories. 9. All other writings, memoranda, data, and/or tangible things that relate directly or indirectly in any way to the construction of the Residence and/or any claims arising therefrom. 10. Any and all memoranda, notes, summaries, items of correspondence, records, documents, or other form of data retention, not included in the forgoing requests, made by you or obtained by you or your representative or any witness, contained in your files or other collections of records related in any way to the construction of the Residence and/or any claims arising therefrom. 6 ` 11. Any and all reports or documents of governmental or quasi-governmental agencies which inspected the homes constructed by any of the Defendants in the Development and the O'Grady residence. 12. If not already supplied, copies of any and all documents. consulted in answering this request for production of documents and/or Plaintiffs' Interrogatories directed to you. 13. Any and all written policies and/or procedures in effect prior from January 2003 to the present regarding the supervision of trade partner/subcontractors. 14. Any and all written policies and/or procedures in effect prior from January 2003 to the present regarding the inspection of work performed by trade partner/subcontractors. 15. Copies of responses you received from any and all customer satisfaction surveys issued from January 1, 2003 to the present. 16. Copies of any and all spreadsheets, databases, electronic media, electronic files, emails, information stored on any hard drives and archived information maintained by you from January 1, 2003 to the present regarding customer complaints, warranty items and the resolution of those items. 17. Any and all documents and records, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, including but not limited to, ledger statements, bank statements, cancelled checks, purchase orders, requests for payment and accounting records evidencing payment received by any of the Defendants regarding the construction of the O'Grady residence. 7 18. Any and all contracts, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, between and/or among the Defendants related to the construction of the O'Grady residence. 19. _ Any and all documents, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, relating to the Corporate Charter, amendments to the Corporate Charter, By-Laws, Stock Ledger, Articles of Incorporation and Certificate of Registration of Qualification to do Business in the Commonwealth of Pennsylvania, if applicable, as it relates to any and all of the Defendants. 20. All documents, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, concerning any changes in name of any of the Defendants. 21. All documents, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, that are in the nature of organizational charts, diagrams, tables or descriptions concerning the corporate structure or organization of any and all of the Defendants. 22. Any and all meeting minutes, resolutions and other records reflecting dates and times of meetings of shareholders of any and all of the Defendants from January 1, 2003 to the present. 23. All documents, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, 8 % concerning the policy, administration and operation of any and all of the Defendants from January 1, 2003 to the present. 24. All documents, whether maintained as a hard copy or in electronic media on your network, any storage device, storage media and computers all as defined herein, concerning the duties and responsibilities of all officers and directors of any and all of the Defendants from January 1, 2003 to the present. 25. Please produce copies of any and all written policies for the retention of documents including documents stored via electronic media on your network, any storage device, storage media and computers all as defined herein, for the time period of January 1, 2003 to present. 26. Please produce copies of any and all written policies for the destruction of documents including documents stored via electronic media on your network, any storage device, storage media and computers all as defined herein, for the time period of January 1, 2003 to present. 27. All documents prepared by bookkeeper, certified public accountant, public accountant or other individual or entity retained for the purpose of performing financial accounting practices for any and all of the Defendants' business operations since January 1, 2003 to the present. 28. All documents sufficient to show bank account statements for bank accounts maintained by any and all of the Defendants in any capacity for the period January 1, 2003 to the present. 29. Federal and state tax returns for all of the Defendants for 2003 through 2007. 9 30. Documents sufficient to show the net worth of any and all of the Defendants, including the identification and value of all properties and other assets owned in whole or in part by any and all of the Defendants, profit and loss statements for each year since 2003 for properties owned by any and all of the Defendants and all debts and liabilities of any and all of the Defenants. Also included in this request are any financial statements that relate to Defendants' assets, inventories, liabilities, gross and net income, and the amount of any undistributed profits of any and all of Defendants' businesses. NESTICO, By: w 'c7Bby yfo 190 Att 84a Avenue Hershey, PA 17033 (717) 533-5406 Telephone Date: Attorneys for Plaintiffs L.L.P. 10 t CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, of the law firm of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the S5.,o day of 2008, a copy of the foregoing document was sent via Certified Mail, return receipt requested, to the following: Glenn M. Campbell, Esquire 524 North Providence Road Media, PA 19063 -e NDH NESTIC09 DRUBY & HILDABRO, LLP ATTORNEYS AT LAW 840 East Chocolate Avenue, Hershey, PA 17033 Phone (717) 533-5406 Fax (717) 533-5717 www.hersheypalaw.corn August 17, 2009 VIA UPS Glenn C. Campbell, Esquire 524 North Providence Road Media, PA 19063 Re: O'Grady v. Hovnanian Enterprises, Inc., et at Declaratory Judgment Action Cumberland County No. 08-6296 Dear Glenn: Enclosed are Plaintiffs' Responses to your clients' Interrogatories and Plaintiffs' Responses to your clients' Requests for Production of Documents. I am also enclosing documents bate-stamped 000001 to 000667 consisting of the discoverable documents responsive to your clients' requests along with six (6) CDs containing photographs and videos related to the O'Grady residence. While I thank you for the extension of time to respond to your clients' discovery, as you know, your clients' responses to the O'Gradys' discovery have been outstanding longer than the O'Gradys'responses. I had asked you in my email of June 15, 2009 to provide me with your clients' discovery responses. Again, I ask that those responses be provided to me within the next seven (7) days so as to avoid a Motion to Compel. I am also enclosing a Notice of Intent to Serve Subpoena with regard to Professional Warranty Services Corporation. Please let me know whether you will waive the twenty (20) day period so that I may serve the Subpoena. Additionally, I would like to schedule depositions of your clients' corporate designees and then the deposition of Mr. Elvin Fisher. I would like to hold those depositions within the next thirty (30) days. Please provide me with dates on which you - and your clients' employees are available. r In the meantime, I look forward to receiving your clients' discovery responses within the next seven (7) days. Very truly yours, NESTICO, DRUBY-&)IILDABRAND, LLP By: Richard B. Druby RBD:bls enclosures cc: Jim and Florence O'Grady (via email) •r a CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, of the law firm of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the 28`h day of September, 2009, a copy of the foregoing document was sent via First Class U.S. Mail, postage paid, to the following: Mr. Glenn Campbell, Esquire Gibley & McWilliams PC 524 N Providence Road Media, PA 19063 ?[I.?i-y _ ? ELF OF THE 2069 S E P 28 N't (-- : G:, ? Jt :i JAMES P. O'GRADY, JR. IN THE COURT OF COMMON PLEAS OF and FLORENCE O'GRADY, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN ENTERPRISES, INC.; : K. HOVNANIAN AT SILVER SPRING, LLC; K. HOVNANIAN: VENTURE I, LLC; : K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K. HOVNANIAN HOMES OF PENNSYLVANIA, LLC, Defendants NO. 08-6296 CIVIL TERM IN RE: PLAINTIFFS' MOTION TO COMPEL DISCOVERY ORDER OF COURT AND NOW, this 1st day of October, 2009, upon consideration of Plaintiffs' Motion To Compel Discovery, a Rule is hereby issued upon Defendants to show cause why the relief requested should not be granted. RULE RETURNABLE within 14 days of service. /Richard B. Druby, Esq. 840 East Chocolate Avenue Hershey, PA 17033 Attorney for Plaintiffs BY THE COURT, Glenn Campbell, Esq. 524 N. Providence Road Media, PA 19063 Attorney for Defendants :rc FI EDICE ?, OF ? PO ? .tiOrd?.AF?Y 2909 OCT _2 PM 4: 27 PE*ZY1-VAMA NESTICO, DRUBY & HILDABRAND, LLP Richard B. Druby, Esquire PA Supreme Court I.D. 61904 840 East Chocolate Avenue Hershey, PA 17033 (717) 533-5406 rdruby@hersheypal aw. com JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC., K.HOVNANIAN ENTERPRISES, INC, K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED MOTION TO MAKE RULE ABSOLUTE AND NOW, come the Plaintiffs, by and through their attorneys, Nestico, Druby & Hildabrand, L.L.P. and move this Honorable Court to enter an Order compelling the Defendants to answer, without objection, Interrogatories and respond to Requests for Production of Documents and respectfully represents the following in support of this Motion: 1. On or about September 28, 2009, Plaintiffs Filed a Motion to Compel Discovery. 2 2. On October 1, 2009 this Honorable Court issued a Rule to Show Cause why the Motion to Compel Discovery should not be granted. 3. On October 5, 2009, the Cumberland County Prothonotary certified the Rule to Show Cause and served counsel with a certified copy of the Rule. 4. The Rule to Show Cause was returnable within fourteen (14) days of service thereof. 5. On or about October 9, 2009, Counsel for Defendants confirmed via voicemail to Plaintiffs' counsel his receipt of the Rule to Show Cause. 6. More than fourteen (14) days have run since the service of the Rule to Show Cause. 7. To date, Defendants have not filed any documents in response to the Rule to Show Cause nor have they provided any discovery to Plaintiffs' counsel. WHEREFORE, Plaintiffs ask that the Rule to Show Cause be made Absolute and this Honorable Court issue an Order to Compel Discovery, which is attached hereto. Respectfully submit d, NESTICO, HII?DABRAND, LLP ichard B. Druby, squire Attorney I.D. No. 6 90 840 East Chocolate venue Hershey, PA 17033 Date: I'd-29 y (717) 533-5406 3 VERIFICATION I, Richard B. Druby, Esquire, verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities Date: 10 - 2 f - O 4 CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, of the law firm of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the ag day of October, 2009, a copy of the foregoing document was sent via First Class U.S. Mail, postage paid, to the following: Glenn C. Campbell, Esquire 524 North Providence Road Media, PA 19063 5 T THI: lit! -?:.,r rA Y r-, 1 2839 OC' j 30 i it 1 c2 NOV 0 2 2009 1? RICHARD B. DRUBY, ESQUIRE PA Attorney I.D. No. 61904 Nestico, Druby & Hildabrand, LLP 840 East Chocolate Avenue Hershey, PA 17033 Tel: 717-533-5406 rdruby&hersheypalaw.com JAMES P. O'GRADY, JR and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC., K.HOVNANIAN ENTERPRISES, INC, K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-6296 CIVIL TERM DECLARATORY JUDGMENT JURY TRIAL DEMANDED ORDER AND NOW, this &I day of #4 p V , 2009, upon consideration of the Plaintiffs' Motion to Compel and Motion to Make Rule Absolute, it is hereby Ordered that Defendants shall provide full and complete answers without objection to Plaintiffs' Interrogatories and shall provide those documents requested by Plaintiffs in Plaintiffs' Request for Production within ,;- days of the date of this Order, with sanctions to be imposed upon Defendants, upon further application of Plaintiffs, for failure of Defendants to comply in full with this Order. BY THE COURT: OG rD' tribution: hard B. Druby, Esq., 840 E. Chocolate Ave., Hershey, PA 17033 ?Xlenn C. Campbell, Esq., 524 North Providence Rd., Media, PA 19063 (20Q F S rn? t l 4 OF THEE P , , KON 2009 NOV -4 Pik 2: 25 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW JAMES P. O'GRADY and FLORENCE ) O'GRADY, ) Plaintiffs ) Vs. ) HOVNANIAN ENTERPRISES, INC.; ) K. HOVNANIAN ENTERPRISES, INC.; ) K. HOVNANIAN AT SILVER SPRING, L.L.C. ; ) K. HOVNANIAN VENTURE I, L.L.C.; ) K. HOVNANIAN COMPANIES OF ) PENNSYLVANIA, INC.; and K. HOVNANIAN ) HOMES OF PENNSYLVANIA, INC., ) Defendants ) NO. 08-6296 CIVIL TERM Zc -,, d"n cD WITHDRAWAL OF APPEARANCE TO THE PROTHONOTARY: Please withdraw my appearance on behalf of ALL Defendants in the above-captioned matter. GIBLEY AND McWILLIAMS, P.C. By: MAAa 1) ('00 .. L4 .f D l/ Date: February /". , 2010 GLENN M. CAMPBEL, Es ire I.D. No. 51059 524 N. Providence Road Media, PA 19063 (610) 627-9500 Attorney for Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW JAMES P. O'GRADY and FLORENCE O' GRADY, Plaintiffs Vs. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN ENTERPRISES, INC.; K. HOVNANIAN AT SILVER SPRING, L.L.C.; K. HOVNANIAN VENTURE I, L.L.C.; K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K. HOVNANIAN HOMES OF PENNSYLVANIA, INC., Defendants NO. 08-6296 CIVIL TERM ENTRY OF APPEARANCE TO THE PROTHONOTARY: ?w 1- _ -?;rra rf co > ° v ,y J Fiz CJ7 -c Please enter our appearance on behalf of ALL Defendants in the above-captioned matter. TALLMAN, HUDDERS & SORRENTINO By: FRED?CN J. STELLATO, Esquire I. D. 37674 By: &&<?? WENDY R.S. O'CONNOR, Esquire I. D. No. 56537 1611 Pond Road, Suite 300 Allentown, PA 18104-2221 Date: February /57 , 2010 (610) 391-1800 FILED-!?'1CE A(TARY TALLMAN, HUDDERS & SORRENTINO Pennsylvania Office of Norris, McLaughlin & Marcus, P.A. By: Frederick J. Stellato Identification No.: 37674 Suite 300, The Paragon Centre 1611 Pond Road Allentown, PA 18104 (610) 391-1800 JAMES P. O'GRADY and FLORENCE O'GRADY, Plaintiffs, V. HOVNANIAN ENTERPRISES, INC., K. HOVNANIAN ENTERPRISES, INC., K. HOVNANIAN AT SILVER SPRING, LLC, K. HOVNANIAN VENTURE I, LLC, K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC. and K. HOVNANIAN HOMES OF PENNSYLVANIA, INC. 1°0 AUG 21 PM {: 44 CLUBE:kl--?Q-4D Cc PENNSYLVANfA Attorney for Defendants No.: 08-6296 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA WITHDRAWAL OF APPEARANCE TO THE PROTHONTARY: Please withdraw my appearance on behalf of ALL Defendants in the above- captioned matter. The appearance of Frederick J. Stellato, Esquire remains entered for all defendants. Date: Vz L(/ 1 O TALLMAN HUDDERS & SORRENTINO BY: zt?lj-(J? Wendy R. S. O'Connor, Esquire I.D.# 56537 1611 Pond Road, Suite 300 Allentown, PA 18104 610-391-1800 CERTIFICATE OF SERVICE I hereby certify that I have forwarded a true and correct copy of the foregoing Withdrawal of Appearance via regular mail, postage prepaid on the date shown below to all interested counsel and parties as follows: Richard B. Druby, Esquire Nestico, Druby & Hiladbrand, LLP 840 East Chocolate Avenue Hershey, PA "17033 TALLMAN HUDDERS & SORRENTINO By: Stellato, Esquire Date:, PRO � �ONd .4R - r: RICHARD B.DRUBY,ESQUIRE 2013SEP 3 P 3 PA Attorney I.D.No. 61904 CU118 Nestico Druby,PC PFNNS yL D COUN r y 1135 East Chocolate Avenue / NIA Suite 300 Hershey, PA 17033 Tel: 717-533-5406 rdrubyahershevpalaw.corn JAMES P. O'GRADY,JR and IN THE COURT OF COMMON PLEAS OF FLORENCE O'GRADY, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs, V. DOCKET NO. 08-6296 CIVIL TERM HOVNANIAN ENTERPRISES, INC., : K.HOVNANIAN ENTERPRISES, INC, K.HOVNANIAN AT SILVER SPRING, LLC; K.HOVNANIAN VENTURE I, LLC K.HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.; and K.HOVNANIAN HOMES OF PENNSYLVANIA, LLC : DECLARATORY JUDGMENT Defendants. JURY TRIAL DEMANDED DEPOSITION NOTICE PLEASE TAKE NOTICE that pursuant to Rule 4007.1 of the Pennsylvania Rules of Civil Procedure, Plaintiffs, James P. O'Grady, Jr. and Florence O'Grady, in the above- captioned action will take the deposition upon oral examination of the following individuals for the purpose of discovery and/or use at trial to be held on the dates and at the times below, at the law offices of Norris, McLaughlin & Marcus, P.A., 1611 Pond Road, Suite 300, Allentown, PA 18104, unless otherwise agreed between counsel for the parties herein. d October 16, 2013 10:00 a.m.—Steve Dahl The deponent is requested to bring with them any and all documents relating to the above referenced matter. Respectfully submitted, NESTIALD.DRUB By: quire 0 1135 East Chocolate Avenue Suite 30 0 Hershey, Pennsylvania 17033 (717) 533-5406 . Date: 02 /3 Attorney for Plaintiffs 2 s i CERTIFICATE OF SERVICE I, Richard B. Druby, Esquire, of the law firm of Nestico Druby, PC, hereby certify that on the V291ay of August, 2013, a copy of the foregoing document was sent via First Class U.S. Mail, postage paid, to the following: Mr. Fred Stellato, Esquire Norris, McLaughlin & Marcus, P.A. Suite 300 1611 Pond Road Allentown, PA 18104-2258 ichard B. Dru y, E qu' 3 T HE P R 0 T UGtN0`-TAR1: 2013 SEP -4 PM 3. 2o James P. O'Grady, Jr et al CUMBERLAND COUNTY PEN11Y X6%96 vs Case No. Hovnanian Enterprises, Inc. et al Statement of Intention to Proceed To the Court: Plaintiffs intends to proceed ith the abov captioned matter. Print Name Richard B. Druby,Enn Name Date: % 11113 Attorney .or Plaintiffs Explanatory Comment The Supreme Court of Pennsylvania has promulgated,new Rule of Civil Procedure 230.2 governing the termination of inactive cases and amended Rule of Judicial Administration 1901. Two aspects of the recommendation merit comment. I.Rude ofcivil Procedure New Rule of Civil Procedure 230.2 has been promulgated to govern the termination of inactive cases within the scope of the Pennsylvania Rules of Civil Procedure. The termination of these cases for inactivity was previously governed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting local rules. This rule was promulgated in response to the decision of the Supreme Court in Shop v.Eagle,551 Ila.360,710 A.2d 1104 (1993) in which the court held that "prejudice to the defendant as a result of delay in prosecution is required before a case may be dismissed pursuant to local rules implementing Rule of.tudicial Administration 1901." Rule of Judicial Administration 1901(4)has been amended to accommodate the new rule of civil procedure. The general policy of the prompt disposition of matters set forth in subdivision(a)of that rule continues to be applicable. 11 Inactive Cases The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system. The process is initiated by the court. After giving notice of intent to terminate an action for inactivity,the course of the procedure is with the parties. if the parties do not wish to pursue the case, they will take no action and"the Prothonotary shall enter an order as of course terminating the matter with prejudice for failure to prosecute." If a party wishes to pursue the matter.he or she will file a notice of intention to proceed and the action shall continue. a. THiere the action has been terminated If the action is terminated when a party believes that it should not. have been tenninated, that party may proceed under Rule230(d)for relief from the order of termination. An example of such an occurrence might be the termination- of a viable action when tite aggrieved party did not receive the notice of intent to terminate and thus did not timely file the notice of intention to proceed. The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of the entry of the order of termination on the docket,subdivision(d)(2)provides that the court must grant the petition and reinstate the action. if the petition is filed later than the thirty-day period,subdivision(d)(3)requires that the plaintiff must make a showing to the court that the petition was promptly tiled and that there is a reasonable explanation or legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of termination on the docket and for the failure to file the petition within the thirty-day period under subdivision(d)(2). R. fi%here the action has not been terminated An action which has not been terminated but which continues upon the filing of a notice of intention to proceed may have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a common law non pros which exits independently of termination under Rule 230.2.