HomeMy WebLinkAbout10-01882
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA Z918 JAN .5 'H 3= 06
Trent Rotz
Plaintiff
VS.
Chet Shank and Michelle Shank
Defendants
mSa
. No. 10- 188
aivi l L-t
: Civil Action - Law
:Judge:
NOTICE
You have been sued in court. If you wish to defend against the claims set
forth in the following pages, you must take action within twenty (20) days after
this complaint and notice are served, by entering a written appearance
personally or by attorney and filing in writing with the court your defenses or
objections to the claims set forth against you. You are warned that if you fail to
do so the case may proceed without you and a judgment may be entered against
you by the court without further notice for any money claimed in the complaint
or for any other claim or relief requested by the plaintiff. You may lose money
or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH
BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING
A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE
ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY
OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania
(717) 249-3166
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PTO a358(to
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
Trent Rotz
Plaintiff
VS.
Chet Shank and Michelle Shank
Defendants
. No.
Civil Action - Law
COMPLAINT
AND now, comes the Plaintiff, Trent Rotz, by and through his attorney, H.
Anthony Adams and sets forth the following:
1.
Plaintiff is Trent Rotz, an adult individual, who resides at 20 North Fayette
Street, Shippensburg, Cumberland County, Pennsylvania, 17257.
2.
Defendants are Chet Shank and Michelle Shank, adult individuals, husband
and wife, of 208 Walnut Dale Road, Shippensburg, Cumberland County,
Pennsylvania.
3.
On or about January 22, 2008, Plaintiff Trent Rotz entered into a business
relationship with Chet Shank and Michelle Shank to install insulation. Plaintiff
had worked for Chet Shank in the construction business. The business was
owned and operated by Chet Shank and Michelle Shank t/d/b/a Thinking Green
Systems.
4.
On or about January 24, 2008, Plaintiff, Trent Rotz on behalf of
Defendants began to meet with various sales representatives to prepared to
introduce the insulation product to the public.
5.
From February 2008 until March 2008, the Plaintiff represented the
Defendants' business at the Pennsylvania Home Show in Harrisburg,
Pennsylvania.
6.
In March and April of 2008, the Plaintiff attended training on behalf of the
Defendants' business with the company BioBased Technologies to become a
certified spray applicator of the insulation product.
7.
From January 24, 2008 through July 28, 2008, Plaintiff supplied 400.5
hours of service and labor to the business. Plaintiff was never compensated for
that service and labor.
8.
On March 19, 2008, a filing was accomplished with the Commonwealth's
Department of State for a limited liability company "Thinking Green Systems,
LLC" which was the successor to the business trading and doing business as
Thinking Green Systems. Plaintiff and Defendants were involved in both
businesses.
9.
On or about the end of July 2008, Defendants, Chet Shank and Michelle
Shank, ordered Plaintiff from their business location and property and informed
him that he no longer "works" for the Thinking Green Systems, LLC or Thinking
Green Systems.
10.
In August 2008, the Plaintiff requested an accounting for Thinking Green
Systems and Thinking Green Systems, LLC and payment for the services and
labor that he had performed.
11.
Defendants refused to supply an accounting for either of the business
refused to compensate Plaintiff and on August 14, 2008 filed a notice that they,
Defendants, intended to do business as Thinking Green Systems Contracting
Services.
12.
Plaintiff has not received compensation in any form for the services and
work supplied to Defendants and to the business Thinking Green Systems, LLC.
COUNT 1
Breach of Contract
13.
On or about October 2007 through October 2008, the Defendants
obtained services procured by Plaintiff, to establish a web-site and web hosting.
14.
The value of the services procured by the Plaintiff as set forth in
paragraph 13 was $2,453.87 for which neither the Plaintiff nor the supplier of the
service were compensated.
15.
The Defendants have agreed with Plaintiff that in exchange for his
services and efforts as set forth herein that he would receive 50% of the profit of
the business together with hourly compensation for his labor.
16.
The Plaintiff's hourly rate at the time this service was $19.00 per hour but
was being billed at $25.00 per hour resulting in a loss of income to Plaintiff of
$7,609.50. Plaintiff also used his vehicle to travel for the Defendants at a cost of
$2,265.16.
COUNT II
Breach of Covenant of Fair Dealing
17.
At all times relevant to the matters set forth in this complaint, Defendants
were acting as the proprietors and or members of the businesses known as
Thinking Green Systems and Thinking Green Systems, LLC.
18.
Defendants obtained hundreds of hours of services from Plaintiff using the
ruse that Plaintiff was a participant in the businesses known as Thinking Green
Systems and Thinking Green Systems, LLC and would share in the profit and
receive a wage for hours worked. Plaintiff did not receive remuneration in any
form Defendants.
19.
The actions of the Defendants violated the covenant of good faith and fair
dealing implied in the business arrangements.
COUNT III
Fraud
20.
The actions of the Defendants were fraudulent, deceptive and unfair
COUNT IV
Accounting
21.
The amount of money due from Defendants to Plaintiff cannot be
ascertained without an accounting.
22.
Plaintiff has demanded an accounting but Defendants have refused and
continue to fail and refuse to render such accounting.
COUNT V
Remedies
23.
As a result of the actions of the Defendants the Plaintiff has been
damaged.
(a) loss of value and future earnings of the business ventures
(b) loss of income and expenses of $9,874.66
(c) loss of future income from the business
(d) loss for services procured in the amount of $2,453.87
24.
Plaintiff is entitled to an accounting to determine the loss of profit on the
business from inception to the present.
WHEREFORE, Plaintiff requests entry of judgment in his favor for the loss
he sustained and that the Court order the Defendants to allow an accounting for
the businesses Thinking Green Systems and Thinking Green Systems, LLC.
Respectfully submitted,
T' _?
H. Anthony Adams, Esquire
Attorney for Plaintiffs
49 West Orange Street, Suite 3
Shippensburg, PA 17257
(717)-532-3270
Dated: 1 a 1-7
VERIFICATION
We verify that the statements made in this Complaint are true and
correct. We understand that false statements herein are made subject to the
penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to
authorities.
Date: Pa b
Trent Rotz
SHERIFF'S OFFICE OF CUMBERLAND COUNTY
Ronny R Anderson
Sheriff
Jody S Smith
Chief Deputy
?,tOgjl Qi u3 ilk jrX#
X
FILED,j
3F h'c P;'- =i RCE
rARY
20'0 JA,4 13 AH 13: 25
Cti^v
Edward L Schorpp
Solicitor
Trent Rotz
vs.
Chet Shank
Case Number
2010-188
SHERIFF'S RETURN OF SERVICE
01/11/2010 05:20 PM - Ronald Hoover, Deputy Sheriff, who being duly sworn according to law, states that on January
11, 2010 at 1720 hours, he served a true copy of the within Complaint and Notice, upon the within named
defendant, to wit: Chet Shank, by making known unto himself personally, at 208 Walnut Dale Road,
Shippensburg, Cumberland County, Pennsylvania 17257 its contents and at the same time handing to hirr
personally the said true and correct copy of the same.
01/11/2010 05:20 PM - Ronald Hoover, Deputy Sheriff, who being duly sworn according to law, states that on January
11, 2010 at 1720 hours, he served a true copy of the within Complaint and Notice, upon the within named
defendant, to wit: Michelle Shank, by making known unto Chet Shank, Husband of defendant at 208
Walnut Dale Road, Shippensburg, Cumberland County, Pennsylvania 17257 its contents and at the same
time handing to him personally the said true and correct copy of the same.
SHERIFF COST: $62.44
January 12, 2010
SO A SWER
VRNNNWY R ANDERSON, SHERIFF
B'Y
Deputy Sheriff
c -,E . ,,,:
I C;
''E
FILFC? t 'ir
Donald L. Kornfield .
?F TI +F F "' E r-t; }?r,Y
Attorney for Defendants
Kornfield and Benchoff, LLP
17 North Church Street l p p
2010 JAI N G ! PH la: I I
Waynesboro, PA 17268
(717) 762-8222 ,
CU +` %_ : !s •i
FAX 762-6544
don@kornfield.net
Atty. I.D. #19242
TRENT ROTZ : IN THE COURT OF COMMON PLEAS OF
: THE 9TH JUDICIAL DISTRICT, PA.
Plaintiff
No. 10-188 Civil Term
v
CIVIL ACTION -LAW
CHET SHANK and
MICHELLE SHANK
Defendants Judge:
DEFENDANTS' PRELIMINARY OBJECTIONS TO COMPLAINT
NOW COME Defendants Chet Shank and Michelle Shank, by and through their attorney,
Donald L. Kornfield, Esq., Kornfield and Benchoff, LLP, and set forth Defendants' Preliminary
Objections to Complaint, as follows:
Legal Insufficiency (Demurrer) To Counts II, III, IV, and V Brought by Plaintiff
Pursuant to Pa.R.C.P. 1028(a)(4)
1. Plaintiff has alleged 5 claims at law against Defendants: Count I (Breach of Contract);
Count II (Breach of Covenant of Fair Dealing); Count III (Fraud); Count IV (Accounting); and,
Count V (Remedies).
2. Pursuant to Pa.R.C.P. 1028(a)(4) a party may file a preliminary objection alleging the
legal insufficiency of a pleading (demurrer).
3. In paragraph 19 of Count II, Plaintiff alleged that "the actions of the Defendants violated
the covenant of good faith and fair dealing implied in the business arrangements."
4. Plaintiff has not set forth a legal or equitable basis to assert a violation of the allegedly
implied covenant of good faith and fair dealing under Count II and has not stated a valid cause of
action.
5. In paragraph 20 of Count III, Plaintiff alleged that "the actions of the Defendants were
fraudulent, deceptive and unfair."
6. It appears that Plaintiff alleged common law fraud.
7. Plaintiff did not aver the alleged fraud with particularity as required by Pa.R.C.P.
1019(b).
8. Count III for fraud does not state a cause of action upon which relief can be granted.
9. In paragraphs 21 and 22 of Count IV Plaintiff alleged that Plaintiff cannot ascertain the
amount of money due from Defendants without an accounting, which he has demanded.
10. In paragraph 24 of Count V Plaintiff alleged that "Plaintiff is entitled to an accounting to
determine the loss of profit on the business from inception to the present."
11. Plaintiff has not set forth a legal or equitable basis to require an accounting from
Defendants under either Count IV or Count V and has not stated a valid cause or valid causes of
action.
12. The 4 claims brought by Plaintiff against Defendants in Counts II, III, IV, and V are
legally insufficient as a matter of law and should be dismissed with prejudice.
WHEREFORE, Defendants preliminarily object to Counts II, III, IV, and V for failure to
state a cause or causes of action upon which relief can be granted, and request that those 4 claims
be dismissed with prejudice.
Insufficient Specificity of a Pleading To Paragraphs 3, 7, 8, 15, 16, 18, 19, 20, and 23
Pursuant to Pa.R.C.P. No. 1028(a)(3)
13. Paragraphs 1 through 12 above are incorporated herein by reference.
14. In paragraph 3 Plaintiff alleged that "Plaintiff Trent Rotz entered into a business
relationship with Chet Shank and Michelle Shank to install insulation."
15. In paragraph 7 Plaintiff alleged that "From January 24, 2008 through July 28, 2008,
Plaintiff supplied 400.5 hours of service and labor to the business. Plaintiff was never
compensated for that service and labor."
16. In paragraph 8 Plaintiff alleged, among other things, that "Plaintiff and Defendants were
involved in both businesses (Thinking Green Systems and Thinking Green Systems, LLC)."
17. In paragraph 15 Plaintiff alleged that "The Defendants have agreed with Plaintiff that in
exchange for his services and efforts as set forth herein that he would receive 50% of the profit
of the business together with hourly compensation for his labor."
18. In paragraph 16 Plaintiff alleged that "The Plaintiff's hourly rate at the time [sic] this
service was $19.00 per hour but was being billed at $25.00 per hour resulting in a loss of income
to Plaintiff of $7,609.50. Plaintiff also used his vehicle to travel for the Defendants at a cost of
$2,265.16."
19. In paragraph 18 Plaintiff alleged that "Defendants obtained hundreds of hours of services
from Plaintiff using the ruse that Plaintiff was a participant in the businesses known as Thinking
Green Systems and Thinking Green Systems, LLC and would share in the profit and receive a
wage for hours worked. Plaintiff did not receive remuneration in any form [sic] Defendants."
20. In paragraph 19 Plaintiff alleged that "The actions of the Defendants violated the
covenant of good faith and fair dealing implied in the business arrangements."
21. In paragraph 20 Plaintiff alleged that "The actions of the Defendants were fraudulent,
deceptive and unfair."
22. In paragraph 23 Plaintiff alleged that "As a result of the actions of the Defendants the
Plaintiff has been damaged. (a) loss of value and future earnings of the business ventures; (b)
loss of income and expenses of $9,874.66; (c) loss of future income from the business; and, (d)
loss for services procured in the amount of $2,543.87."
23. Pa.R.C.P. 1019(a) mandates that "[T]he material facts on which a cause of action or
defense is based shall be stated in a concise and summary form."
24. Pa.R.C.P. 1019(b) mandates that "[A]verments of fraud or mistake shall be averred with
particularity."
25. Paragraphs 3, 7, 8, 15, 16, 18, 19, 20, and 23 of Plaintiff's Complaint are not sufficiently
specific in that they fail to identify sufficient facts in support thereof, as follows:
(a) the paragraphs referencing an agreement or agreements between the parties do not
sufficiently specify whether the alleged agreement or agreements was/were oral or
written, or was/were based on another appropriate legal basis;
(b) Plaintiff has not sufficiently and specifically itemized when, where, and how the
specific 400.5 hours of services, or alternatively the how the hundreds of hours of
services, were allegedly provided to Defendants;
(c) Plaintiff has not sufficiently specified how he was "involved in both businesses" or
was "a participant in the businesses";
(d) Plaintiff has not sufficiently specified how business profit was to be determined, has
not sufficiently specified how an hourly rate compensation was allegedly agreed to given
the acknowledged difference in hourly rates, and how Defendants may have allegedly
agreed to reimburse Plaintiff for use of his vehicle and the cost therefore;
(e) Plaintiff has not sufficiently specified what actions of Defendants allegedly violated
the covenant of good faith and fair dealing implied in the business arrangements;
(f) Plaintiff has not sufficiently specified what actions of Defendants were fraudulent,
deceptive and unfair; and,
(g) Plaintiff has not sufficiently and specifically itemized the damages alleged in
paragraph 23.
26. Paragraphs 3, 7, 8, 15, 16, 18, 19, 20, and 23 of Plaintiffs Complaint otherwise fail to
apprise Defendants of the nature and extent of the Plaintiff's allegations or claims and the factual
basis thereof.
WHEREFORE, Defendants preliminarily object to paragraphs 3, 7, 8, 15, 16, 18, 19, 20,
and 23 of Plaintiff s Complaint on the grounds of insufficient specificity and request that the said
paragraphs be ordered stricken or, in the alternative, that Plaintiff be required to file a
sufficiently specific pleading.
Respectfully submitted,
KORNFIELD AND BENCHOFF, LLP
Doted L. Ko#nfild, Esq.
Attorney for Aef darts
CERTIFICATE OF SERVICE
This is to certify that in this case a true copy of the preliminary objections of Defendants
,has been served upon the following person(s), by the following means and dates stated:
H. Anthony Adams, Esq., attorney for Plaintiff
49 West Orange Street, Suite 3
Shippensburg, PA 17257
Date: January 20, 2010
Via: first class mail
I verify that the statements made in this Certificate are true and correct. I understand that
false statements herein are made subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to
unsworn falsification to authorities.
OFF, LLP
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in triplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next
Argument Court.)
--------------------------------------------------------------- *
--------------------------- CA- L
l4
CAPTION OF CASE
(entir~s caption must be stated in full) C7 0
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Trent Rotr, Plaintiff ~ ~ ~"
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Chet Shank and Michelle Shank, Defendants ;
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No. 10-188 Civil
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1. State matter to be argued (i.e., plaintiffs motion for n c.
ew trial, defendant's demurrer to
complaint, etc.):
~°f°^~a.:-ts'~reliminar~ Llh3P~'~~ ^n~ (cl m~rrPr~ specificity)
2. Identify all counsel who will argue cases:
(a) for plaintiffs:
H. Anthony Adams 49 West Orange Street, Shippensburg, PA 17257
(Name and Address)
(b) for defendants:
Donald L. Kornfield, Esquire Kornfield and Benchoff, LLP
(Name and Address)
17 North Church Street, Waynesboro, PA 17268
3. I will notify all parties in writing within two days that this case has been listed for
argument.
4. Argument Court Date: July 7, 2010
H. Anthony Adams
Print your name
06/17/2010 Attorney for plaintiff
Date:
INSTRUCTIONS:
1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR
(not the Prothonotary) before argument.
2. The moving party shall file and serve their brief 12 days prior to argument.
3. The responding party shall file their brief 5 days prior to argument.
4. If argument is continued new briefs must be filed with the COURT
ADMINISTRATOR (not the Prothonotary) after the case is relisted.
TRENT ROTZ, IN THE COURT OF COMMON PLEAS OF
Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA
V. CIVIL ACTION
cz; ri
CHET SHANK and
MICHELLE SHANK,
Defendants No. 10-188 CIVIL TERM'
ILI `j'
IN RE: DEFENDANTS' PRELIMINARY c •• :?
OBJECTIONS TO PLAINTIFF'S COMPLAINT w '<
BEFORE OLER and EBERT, JJ.
ORDER OF COURT
AND NOW, this 26`b day of August, 2010, upon consideration of Defendants'
Preliminary Objections to Plaintiff's Complaint, following oral argument on July 7, 2010,
and for the reasons stated in the accompanying opinion, it is ordered and directed as
follows:
1. Defendants' demurrer relating to Plaintiffs claim against
Defendants at Count 2 is sustained to the extent that the allegations
therein will be deemed part of Plaintiffs breach of contract claim in
Count 1.
2. Defendants' demurrer relating to Plaintiffs claim against
Defendants at Count 5 is sustained to the extent that the demands for
relief therein will be deemed part of the complaint's general claim
for relief clause.
3. Defendants' preliminary objections to the complaint, in the nature of
a motion for greater specificity, are granted to the extent that
Plaintiff is directed to file an amended complaint within 20 days of
the date of this order stating whether the alleged agreement between
Plaintiff and Defendants was oral or written.
4. In all other respects, Defendants' preliminary objections to
Plaintiff's complaint are denied.
BY THE COURT,
1. Wesley Olen Jr. J.
Anthony Adams, Esquire
49 West Orange Street, Suite 3
Shippensburg, PA 17257
Attorney for Plaintiff
./Donald L. Kornfield, Esquire
17 North Church Street
Waynesboro, PA 17268
Attorney for Defendants
c'V s m?a t UiCL
TRENT ROTZ, IN THE COURT OF COMMON PLEAS OF
Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA
V. : CIVIL ACTION
CHET SHANK and
MICHELLE SHANK,
Defendants No. 10-188 CIVIL TERM
IN RE: DEFENDANTS' PRELIMINARY
OBJECTIONS TO PLAINTIFF'S COMPLAINT
BEFORE OLER and EBERT, JJ.
OPINION and ORDER OF COURT
OLER, J., August 26, 2010.
In this civil case involving a business which Plaintiff was allegedly led to believe
he had an interest in, Plaintiff has sued Defendants for breach of contract (Count 1),
breach of an implied covenant of good faith and fair dealing (Count 2), fraud (Count 3),
an accounting (Count 4), and "remedies" (Count 5).1 In response, Defendants have filed
preliminary objections in the form of a demurrer to Counts 2, 3, 4, and 5, and in the form
of a motion to strike or, alternatively, a motion to plead with greater specificity certain
paragraphs in Counts 1, 2, 3, and 5.2
Argument was held on Defendants' preliminary objections on July 7, 2010. For
the reasons stated in this opinion, Defendants' preliminary objections will be sustained in
part and denied in part.
Plaintiff's Complaint, filed January 5, 2010 (hereinafter Plaintiff's Complaint, ¶_).
z Defendants' Preliminary Objections to Complaint, filed January 21, 2010 (hereinafter Defs' Prelim.
Objs. to Compl.).
STATEMENT OF THE FACTS
The facts alleged in Plaintiff's complaint may be summarized as follows:3
Plaintiff, Trent Rotz, is an adult individual who resides in Shippensburg, Cumberland
County, Pennsylvania.4 Defendants, Chet Shank and Michelle Shank, are adult
individuals, husband and wife, who also reside in Shippensburg, Cumberland County,
Pennsylvania.5 At all times relevant to this action, Defendants were acting as the
proprietors and/or members of businesses known as Thinking Green Systems and/or
Thinking Green Systems, LLC.6
On or about January 22, 2008, Plaintiff and Defendants entered into a business
relationship, the object of which was to operate a company that installed insulation for
customers.7 Defendants persuaded Plaintiff to participate in this enterprise, known as
Thinking Green Systems, by a "ruse, ,8 assuring Plaintiff that he was a participant in the
company and would receive 50%9 of the company's profits, with an additional hourly
wage of $19.00 per hour as compensation for his services. 10 Prior to this business
agreement, Plaintiff had been employed by Defendant Chet Shank in a construction
business."
3 In summarizing the allegations of Plaintiff's complaint the court is not expressing an opinion as to their
accuracy.
a Plaintiff's Complaint, ¶1.
' Plaintiff's Complaint, ¶2.
6 Plaintiffs Complaint, ¶17.
Plaintiff's Complaint, ¶3.
s Plaintiff's Complaint, ¶18.
9 Plaintiff's Complaint, ¶15.
10 Plaintiffs Complaint, ¶16.
11 Plaintiff s Complaint, ¶3.
2
During October of 2007 through October of 2008, Plaintiff, on behalf of
Defendants, secured outside services for the purpose of creating a web-site and web
hosting for Thinking Green Systems. 12 Neither Plaintiff nor the service provider was
compensated for the web-site and web hosting service, valued at $2,453.87.13 On or about
January 24, 2008, Plaintiff, on behalf of the business, met with various sales
representatives to prepare for the introduction of Thinking Green System's insulation
product to the public.14 Between February and March of 2008, Plaintiff represented the
business at the Pennsylvania Home Show in Harrisburg, Pennsylvania.15 Between March
and April of 2008, Plaintiff attended training with BioBased Technologies to become a
certified spray applicator for Thinking Green Systems' insulation product."' On March
19, 2008, Defendants registered the business as a limited liability company with the
Commonwealth's Department of State, utilizing the name "Thinking Green Systems,
LLC."17
From January 24, 2008 through July 28, 2008, Plaintiff rendered 400.5 hours of
service and labor to the business.18 In late July of 2008, Defendants informed Plaintiff
that he no longer worked for Thinking Green Systems, LLC, and forced Plaintiff to
vacate the business premises.19 On August 14, 2008, Defendants "filed a notice" stating
that they intended to do business as Thinking Green Systems Contracting Services and
would no longer be known as Thinking Green Systems, LLC.20
12 Plaintiff's Complaint, ¶13.
13 Plaintiff's Complaint, ¶14.
14 Plaintiff's Complaint, ¶4.
is Plaintiffs Complaint, ¶5.
16 Plaintiffs Complaint, ¶6.
" Plaintiffs Complaint, ¶8.
18 Plaintiffs Complaint, ¶7.
19 Plaintiffs Complaint, ¶9.
20 Plaintiffs Complaint, ¶1 1.
3
In August of 2008, Plaintiff requested an accounting and payment for the services
he had performed for Thinking Green Systems and Thinking Green Systems, LLC.21
Defendants refused to render such an accounting for either business.22 Defendants, as
proprietors of Thinking Green Systems and Thinking Green Systems, LLC, failed to
compensate Plaintiff for services rendered 23 and for the procurement of the web-site and
web hosting service.24 Plaintiff suffered an aggregate loss of income in the amount of
$7,609.50 as a result of Defendants' actions, with an additional loss in the amount of
$2,265.16 for the use of Plaintiff's personal vehicle for business purposes .25
Plaintiff asserts that Defendants' actions resulted in damages to Plaintiff in the
following particulars: (a) loss of value and future earnings with respect to the business
ventures; (b) an aggregate loss of income, for services rendered and expenses for the use
of Plaintiffs personal vehicle, of $9,874.66; (c) loss of future income from the business;
and (d) loss related to web-site and web-hosting services procured in the amount of
$2,453.87.26
Defendants filed preliminary objections to Plaintiffs complaint which may be
summarized as follows: (1) a demurrer as to Counts 2, 3, 4, and 5 of Plaintiffs complaint
for failure to state legally cognizable causes of action;27 and (2) a motion to strike or,
alternatively, a motion for a more specific pleading as to various paragraphs in Counts 1,
2, 3, and 5 of Plaintiffs complaint. 28
21 Plaintiff's Complaint, ¶10.
22 Plaintiff's Complaint, ¶11.
23 Plaintiff s Complaint, ¶12.
24 Plaintiffs Complaint, ¶14.
25 Plaintiffs Complaint, ¶16.
26 Plaintiffs Complaint, ¶23.
27 Defs' Prelim. Objs. to Compl.
28 Defs' Prelim. Objs., to Compl.
4
DISCUSSION
Demurrers, in general. A preliminary objection to a complaint in the nature of a
demurrer is appropriate where the complaint is legally insufficient to sustain a cause of
action recognized by the law. Pa. R.C.P. 1028(a)(4). The court must resolve the issues
solely on the basis of the challenged pleading and generally no testimony or other
evidence outside of the pleading may be considered to dispose of the legal issues
presented. Hess v. Fox Rothschild, LLP, 2007 PA Super 133, ¶18, 925 A.2d 798, 805.
When considering a demurrer, the court must accept all material facts set forth in
the complaint, as well as all inferences reasonably deducible therefrom, as true, and
"decide whether, based on the facts averred, recovery is impossible as a matter of law."
Wagner v. Waitlevertch, 2001 PA Super 100, ¶6, 774 A.2d 1247, 1250, citing Wiernik v.
PHH US Mortg. Corp., 1999 PA Super 193, 736 A.2d 616 (citations omitted). A
demurrer should be sustained only if the plaintiff "has failed to assert a legally cognizable
cause of action" and cannot prevail. Lerner v. Lerner, 2008 PA Super 183, X11, 954 A.2d
1229, 1234, citing Kramer v. Dunn, 2000 PA Super 101, ¶1.8, 749 A.2d 984, 990.
Demurrer to Count 2 (breach of an implied covenant of good faith and fair
dealing). In their preliminary objections, Defendants argue that Plaintiff has not set forth
a claim cognizable at law or in equity for an alleged breach of an implied covenant of
good faith and fair dealing, and thus has not stated a valid cause of action at Count 2.
Pennsylvania courts have consistently recognized the Second Restatement of Contracts
§205, which states that there is a "general duty of good faith and fair dealing in the
performance of a contract." Somers v. Somers, 418 Pa. Super. 131, 136, 613 A.2d 1211,
1213 (1992). The Pennsylvania Supreme Court has additionally recognized the doctrine
of necessary implication, whereby,
[i]n the absence of an express provision, the law will imply an agreement
by the parties to a contract to do and perform those things that according to
reason and justice they should do in order to carry out the purpose for
which the contract was made and to refrain from doing anything that would
destroy or injure the other party's right to receive the fruits of the contract.
5
Id. at 137-38, citing Frickert v. Deiter Bros. Fuel Co., Inc., 464 Pa. 569, 347 A.2d 701
(1957) (citations omitted).
However, a breach of the implied covenant of good faith and fair dealing is not
generally a cause of action in and of itself, but rather is subsumed within a breach of
contract claim. LSI Title Agency, Inc. v. Evaluation Services, Inc., 2008 PA Super 126, ¶
19, 951 A.2d 384, 392. Accordingly, Plaintiffs allegations in this regard will be deemed
to be included in his breach of contract claim in Count 1 and the demurrer as to Count 2
as a separate cause of action will be sustained.
Demurrer to Count 3 (fraud). In their preliminary objections, Defendants further
argue that Plaintiff has failed to state a cause of action upon which relief cart be granted
at Count 3 for fraud, and argue that under Pennsylvania Rule of Civil Procedure 1019(b)
Plaintiff has failed to allege fraud with particularity. Pennsylvania practice requires that
"[a]verments of fraud or mistake shall be averred with particularity." Pa. R.C.P. 1019(b).
Although Pennsylvania Rule of Civil Procedure 1019(b) requires that a complaint allege
fraud with particularity, it does not require that the facts said to constitute the fraudulent
act proceed in the pleading in a perfectly logical order and sequence. Borelli v. Barthel,
205 Pa. Super. 442, 448, 211 A.2d 11, 14 (1965). To sufficiently allege fraud, however,
the claimant must plead more than a mere legal conclusion. Id.
Plaintiffs complaint, viewed in its entirety, alleges more than a legal conclusion
of fraud. Plaintiff avers that Defendants, in the course of a "ruse," entered into an
agreement with Plaintiff, and offered to pay him 50% of the profit from Thinking Green
Systems, with an additional hourly rate of $19.00, in exchange for his participation in the
company. Plaintiff relied on this agreement and received training specifically for the
product being distributed by Thinking Green Systems, according to the complaint.
Plaintiff alleges that he represented Defendants' company at the Pennsylvania Home
Show in Harrisburg and advertised Thinking Green System's product to the public. The
complaint further asserts that Defendants terminated Plaintiff from Thinking Green
System and/or Thinking Green Systems, LLC, and refused to compensate Plaintiff for
6
work already rendered. When viewed in its entirety, Plaintiff's complaint states a valid
cause of action and does not simply plead fraud as a legal conclusion. Therefore,
Defendants' demurer as to Count 3 will be denied.
Demurrer to Count 4 (for an accounting). In their preliminary objections,
Defendants further argue that Plaintiff has failed at Count 4 to set forth a legal or
equitable basis upon which to require an accounting from Defendants. When reviewing a
request for an accounting, "it is reasonable for the court to permit some latitude since
often times it is not certain what claims a plaintiff may have until the accounting is
completed." Shared Commc'n Servs. of 1800-80 JFK Blvd., v. Albert M. Greenfield &
Co., 2001 Phila. Ct. Com. Pl. LEXIS 63, citing In re Estate of Hall, 517 Pa. 115, 136,
535 A.2d 47, 58 (1987). "An equitable accounting is proper where a fiduciary
relationship exists between the parties, where fraud or misrepresentation is alleged, or
where the accounts are mutual or complicated, and plaintiff does not possess an adequate
remedy at law." Id., citing Rock v. Pyle, 720 A.2d 137, 142 (Pa. Super. 1998) (citations
omitted).
As noted previously, Plaintiff has alleged a valid cause of action for fraud
committed by Defendants. As such, a request for an accounting is also permissible.
Accordingly, Defendants' demurer as to Count 4 will be denied.
Demurrer to Count S ("remedies'). In their preliminary objections., Defendants
also argue that Plaintiff has failed to set forth a legal or equitable basis at Count 5
sufficient to support a cause of action for "remedies." Under Pennsylvania Rule of Civil
Procedure 1021(a), "[a]ny pleading demanding relief shall specify the relief sought." Pa.
R.C.P. 1021(a).
Plaintiff's complaint properly specified his claims for relief under the
Pennsylvania Rules of Civil Procedure. However, this specification is not in and of itself
a separate cause of action. Accordingly, the claims for relief constituting Count 5 of
Plaintiff's complaint will be deemed part of the complaint's general claim for relief
clause and Defendants' demurrer to the Count as a separate cause of action will be
granted.
Motion to strike or for more specific pleading, in general. When a preliminary
objection is based upon a purported lack of specificity in a pleading, a motion to strike is
not a substitute for a motion for a more specific pleading. Huguet v. Foodsales, Inc., 3 Pa.
D. & C.3d 136, 138 (C.P. Chester Co. 1977). With respect to the latter type of motion,
Pennsylvania Rule of Civil Procedure 1028(a)(3) allows a party to preliminarily object to
an opponent's pleading for "insufficient specificity." In this regard, the Pennsylvania
Superior Court has stated that
[t]he pertinent question under Rule 1028(a)(3) is "whether the complaint is
sufficiently clear to enable the defendant to prepare his defense," or
"whether the plaintiffs complaint informs the defendant with accuracy and
completeness of the specific basis on which recovery is sought so that he
may know without question upon what grounds to make his defense."
Rambo v. Greene, 2006 Pa. Super. 231, ¶11, 906 A.2d 1232, 1236, citing Ammlung v.
City of Chester, 224 Pa. Super. 47 n.36, 302 A.2d 491, 498 (1973). To determine the
sufficiency of the pleadings in the complaint, the court must not simply focus upon one
portion or one paragraph of the complaint, but "such paragraphs must be read in context
with all other allegations in the complaint." Yocoub v. Lehigh Valley Med. Assocs. P.C.,
2002 Pa. Super. 251, ¶17, 805 A.2d 579, 589.
The Commonwealth is a fact-pleading state in which "the complaint must provide
the defendant notice of the basis of the claim as well as a summary of the facts essential
to support that claim." Latniak v. Von Koch, 70 Pa. D. & C. 4th 489, 494 (Lackawanna
Co. 2004), citing Alpha Tau Omega Fraternity v. Univ. of Pa., 318 Pa. Super. 293, 464
A.2d 1349 (1983). Pennsylvania Rule of Civil Procedure 1019 states that "material facts
on which a cause of action or defense is based shall be stated in a concise and summary
form." Pa. R.C.P. 1019(a). Averments of fraud must be pled with particularity in order
to allow "an inference that the claim is not without foundation nor offered simply to
harass the opposing party and to delay the pleader's own obligations." Mansaray v.
Gerolamo, 2007 Phila. Ct. Com. Pl. LEXIS 259, quoting Bata v. Central-Penn Nat'l
Bank of Philadelphia, 423 Pa. 373, 224 A.2d 174 (1966). The court has broad discretion
8
in determining the amount of detail that must be averred since the standard of pleading
set forth in the rule is incapable of precise measurement. Pike County Hotels Corp. v.
Kiefer, 262 Pa. Super. 126, 134, 396 A.2d 677, 681 (1978).
Finally, where the object of a motion can be assumed to be more within the
knowledge of the non-pleader, the details requested can be relegated to the discovery
process. Bethlehem Steel Corp v. Litton Indus., Inc., 71 Pa. D. & C.2d 635, 644-45 (C.P.
Allegheny Co. 1974).
Specificity with respect to Count I (breach of contract). In their preliminary
objections, Defendants argue that Plaintiff has failed to plead, with sufficient specificity,
his claim for breach of contract. To support a breach of contract claim, the claimant must
plead: "(1) the existence of a contract, including its essential terms, (2) a breach of a duty
imposed by the contract, and (3) resultant damages." Hart v. Arnold, 2005 PA Super 328
¶ 29, 884 A.2d 316, 332. According to Pennsylvania Rule of Civil Procedure 1019(h),
"[w]hen any claim ... is based upon an agreement, the pleading shall state specifically if
the agreement is oral or written." Pa.R.C.P. 1019(h).
Plaintiff has alleged that an agreement was made between himself and Defendants
and averred the essential terms of the agreement in the following particulars: (1)
Defendants and Plaintiff agreed to provide insulation installation services, through
Thinking Green Systems, to customers; (2) Defendants would share 50% of the profit
from Thinking Green Systems with Plaintiff and would further compensate Plaintiff with
an hourly wage of $19.00 per hour for his services and labor; and (3) damages in certain
amounts were incurred by Plaintiff as a result of Defendants' failure to compensate him
for services rendered and Defendants' termination of the relationship. However, Plaintiff
has not stated whether the agreement was oral or written. Plaintiff has thus sufficiently
pled the facts to fulfill the breach of contract standard, but has failed to comply with the
aforesaid Rule of Civil Procedure by indicating whether the agreement was oral or
written. Therefore, Defendants' preliminary objection requesting a more specific
pleading in this limited aspect as to Count 1 will be granted.
9
Specificity with respect to Count 2 (breach of an implied covenant of good faith
and fair dealing). In their preliminary objections, Defendants also argue that Plaintiff has
failed to plead with sufficient specificity the actions of Defendants that breached an
implied covenant of good faith and fair dealing. As noted previously in this opinion, a
demurrer to Plaintiffs claim in this regard as an independent cause of action will be
granted and the averments as to a breach of an implied covenant of good faith and fair
dealing will be deemed a constituent of his breach of contract claim in Count 1. Further
specification of this basis for relief in the pleading is not, in the court's view, necessary
for Defendants to prepare a proper response to the allegation.
Specificity with respect to Count 3 (fraud). In their preliminary objections,
Defendants further argue that Plaintiff failed to plead fraud at Count 3 with the requisite
specificity. Under Pennsylvania Rule 1019(b), "[a]verments of fraud or mistake shall be
averred with particularity." Pa.R.C.P. 1019(b). To establish fraud, a plaintiff must allege
"(1) a representation; (2) which is material to the transaction at hand; (3) made falsely,
with knowledge of its falsity or recklessness as to whether it is true or false; (4) with the
intent of misleading another into relying on it; (5) justifiable reliance on the
misrepresentation; and (6) the resulting injury was proximately caused by the reliance."
Mansaray v. Gerolamo, 2007 Phila. Ct. Com. P1. LEXIS 259, citing Bortz v. Noon, 556
Pa. 489, 499, 729 A.2d 555, 560 (1999).
Plaintiffs complaint, viewed in its entirety, in the court's view alleges the
elements required to sustain fraud with sufficient particularity. Plaintiff's complaint
alleges that Defendants led Plaintiff to enter into a business agreement, through a "ruse,"
in which Plaintiff believed that he was a participant in Thinking Green Systems and
would receive payment for his labor, including 50% of the business's profit and a $19.00
hourly wage, which Plaintiff did not receive. Plaintiff avers he subsequently rendered
400.5 hours of service for Thinking Green Systems and Thinking Green Systems, LLC.
Plaintiff alleges significant injury as a proximate cause of these events including (a) loss
of value of future earnings of the business ventures, (b) loss of income and expenses of
$9,874.66, (c) loss of future income from the business, and (d) loss related to outside
10
services procured in the amount of $2,453.87. Plaintiff has properly pled the facts
necessary to support a fraud claim in sufficient detail to enable Defendants to prepare any
defense they have to the claim. Accordingly, Defendants' motion for greater specificity
as to Count 3 will be denied.
Specificity with respect to Count 5 ("remedies'). In their preliminary objections,
Defendants argue finally that Plaintiff has failed to itemize sufficiently the damages
claimed in Plaintiffs complaint. As noted previously in this opinion, Count 5 of
Plaintiffs complaint will be regarded as an addendum to his claim for relief relating to
other causes of action rather than as a separate cause of action. The un-pled precise
amounts of certain losses claimed by Plaintiff would appear to be more within the
knowledge of Defendants than Plaintiff and the ascertainment of those amounts can be
relegated to the discovery process.
Based upon the foregoing, the following order will be entered:
ORDER OF COURT
AND NOW, this 26th day of August, 2010, upon consideration of Defendants'
Preliminary Objections to Plaintiffs Complaint, following oral argument on July 7, 2010,
and for the reasons stated in the accompanying opinion, it is ordered and directed as
follows:
1. Defendants' demurrer relating to Plaintiffs claim against
Defendants at Count 2 is sustained to the extent that the allegations
therein will be deemed part of Plaintiffs breach of contract claim in
Count 1.
2. Defendants' demurrer relating to Plaintiffs claim against
Defendants at Count 5 is sustained to the extent that the demands for
relief therein will be deemed part of the complaint's general claim
for relief clause.
3. Defendants' preliminary objections to the complaint, in the nature of
a motion for greater specificity, are granted to the extent that
Plaintiff is directed to file an amended complaint within 20 days of
11
the date of this order stating whether the alleged agreement between
Plaintiff and Defendants was oral or written.
4. In all other respects, Defendants' preliminary objections to
Plaintiff's complaint are denied.
BY THE COURT,
s/ J. Wesley Oler, Jr.
J. Wesley Oler, Jr. J.
H. Anthony Adams, Esquire
49 West Orange Street, Suite 3
Shippensburg, PA 17257
Attorney for Plaintiff
Donald L. Kornfield, Esquire
17 North Church Street
Waynesboro, PA 17268
Attorney for Defendants
12
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
Trent Rotz
Plaintiff
No.10-188 Civil Term
vs.
Chet Shank and Michelle Shank
Defendants
: Civil Action - Law
:Judge:
NOTICE
G _ n
-0 C?
You have been sued in court. If you wish to defend against the claims set
forth in the following pages, you must take action within twenty (20) days after
this complaint and notice are served, by entering a written appearance
personally or by attorney and filing in writing with the court your defenses or
objections to the claims set forth against you. You are warned that if you fail to
do so the case may proceed without you and a judgment may be entered against
you by the court without further notice for any money claimed in the complaint
or for any other claim or relief requested by the plaintiff. You may lose money
or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH
BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING
A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE
ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY
OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania
(717) 249-3166
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
Trent Rotz
Plaintiff
No.10-188 Civil Term
VS. : Civil Action - Law
Chet Shank and Michelle Shank
Defendants
AMENDED COMPLAINT
AND now, comes the Plaintiff, Trent Rotz, by and through his attorney, H.
Anthony Adams and sets forth the following:
1.
Plaintiff is Trent Rotz, an adult individual, who resides at 20 North Fayette
Street, Shippensburg, Cumberland County, Pennsylvania, 17257.
2.
Defendants are Chet Shank and Michelle Shank, adult individuals, husband
and wife, of 208 Walnut Dale Road, Shippensburg, Cumberland County,
Pennsylvania.
3.
On or about January 22, 2008, Plaintiff Trent Rotz entered into a business
relationship with Chet Shank and Michelle Shank to install insulation. Plaintiff
had worked for Chet Shank in the construction business. The business was
owned and operated by Chet Shank and Michelle Shank t/d/b/a Thinking Green
Systems. This agreement to enter into a business relationship was oral.
4.
On or about January 24, 2008, Plaintiff, Trent Rotz on behalf of
Defendants began to meet with various sales representatives to prepared to
introduce the insulation product to the public.
5.
From February 2008 until March 2008, the Plaintiff represented the
Defendants' business at the Pennsylvania Home Show in Harrisburg,
Pennsylvania.
6.
In March and April of 2008, the Plaintiff attended training on behalf of the
Defendants' business with the company BioBased Technologies to become a
certified spray applicator of the insulation product.
7.
From January 24, 2008 through July 28, 2008, Plaintiff supplied 400.5
hours of service and labor to the business. Plaintiff was never compensated for
that service and labor.
8.
On March 19, 2008, a filing was accomplished with the Commonwealth's
Department of State for a limited liability company "Thinking Green Systems,
LLC" which was the successor to the business trading and doing business as
Thinking Green Systems. Plaintiff and Defendants were involved in both
businesses.
9.
On or about the end of July 2008, Defendants, Chet Shank and Michelle
Shank, ordered Plaintiff from their business location and property and informed
him that he no longer "works" for the Thinking Green Systems, LLC or Thinking
Green Systems.
10.
In August 2008, the Plaintiff requested an accounting for Thinking Green
Systems and Thinking Green Systems, LLC and payment for the services and
labor that he had performed.
11.
Defendants refused to supply an accounting for either of the business
refused to compensate Plaintiff and on August 14, 2008 filed a notice that they,
Defendants, intended to do business as Thinking Green Systems Contracting
Services.
12.
Plaintiff has not received compensation in any form for the services and
work supplied to Defendants and to the business Thinking Green Systems, LLC.
COUNT 1
Breach of Contract
13.
On or about October 2007 through October 2008, the Defendants
obtained services procured by Plaintiff, to establish a web-site and web hosting.
14.
The value of the services procured by the Plaintiff as set forth in
paragraph 13 was $2,453.87 for which neither the Plaintiff nor the supplier of the
service were compensated.
15.
The Defendants have orally agreed with Plaintiff that in exchange for his
services and efforts as set forth herein that he would receive 50% of the profit of
the business together with hourly compensation for his labor.
16.
The Plaintiff's hourly rate at the time this service was $19.00 per hour but
was being billed at $25.00 per hour resulting in a loss of income to Plaintiff of
$7,609.50. Plaintiff also used his vehicle to travel for the Defendants at a cost of
$2,265.16.
17.
All of the terms, conditions, requirements and agreements between
Plaintiff and Defendant upon which this action is based were the oral agreements
set forth in these paragraphs. The oral agreements are supported by an
unsigned operating agreement and written submissions to the Commonwealth.
18.
At all times relevant to the matters set forth in this complaint, Defendants
were acting as the proprietors and or members of the businesses known as
Thinking Green Systems and Thinking Green Systems, LLC.
19.
Defendants obtained hundreds of hours of services from Plaintiff using the
ruse that Plaintiff was a participant in the businesses known as Thinking Green
r
Systems and Thinking Green Systems, LLC and would share in the profit and
receive a wage for hours worked. Plaintiff did not receive remuneration in any
form Defendants.
20.
The actions of the Defendants violated the covenant of good faith and fair
dealing implied in the business arrangements.
COUNT II
Fraud
21.
The actions of the Defendants were fraudulent, deceptive and unfair
COUNT III
Accounting
22.
The amount of money due from Defendants to Plaintiff cannot be
ascertained without an accounting.
23.
Plaintiff has demanded an accounting but Defendants have refused and
continue to fail and refuse to render such accounting.
24.
As a result of the actions of the Defendants the Plaintiff has been
damaged, as follows:
J a
(a) loss of value and future earnings of the business ventures
(b) loss of income and expenses of $9,874.66
(c) loss of future income from the business
(d) loss for services procured in the amount of $2,453.87
25.
Plaintiff is entitled to an accounting to determine the loss of profit on the
business from inception to the present.
WHEREFORE, Plaintiff requests entry of judgment in his favor for the loss
he sustained and that the Court order the Defendants to allow an accounting for
the businesses Thinking Green Systems and Thinking Green Systems, LLC.
Respectfully submitted,
H. Anthony Adams, Esquire __ -
Attorney for Plaintiffs
49 West Orange Street, Suite 3
Shippensburg, PA 17257
(717)-532-3270
C> r D
Dated:
VERIFICATION
We verify that the statements made in this Complaint are true and
correct. We understand that false statements herein are made subject to the
penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to
authorities.
Date:
Trent Rotz
CERTIFICATE OF SERVICE
I hereby certify that I am this day serving a copy of the foregoing
document upon the person in the manner indicated below, by depositing a copy
of the same in the United States Mail, Shippensburg, Pennsylvania, with first
class postage prepaid as follows:
Donald L. Kornfield, Esquire
Kornfield and Benchoff, LLP
17 North Church Street
Waynesboro, PA 17268
Date:9/ /2010 H. Anthony Adams, Esquire
49 W. Orange Street, Suite 3
Shippensburg, PA 17257
(717)-532-3270
c:)
Donald L. Kornfield t _T1
Attorney for Defendants --
Kornfield and Benchoff, LLP
'A
17 North Church Street I
Waynesboro, PA 17268 %=QC.;
`'
(717) 762-8222
FAX 762-654 4 -Ti
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)
don@kornfield.net
:3. .
_
Atty. I.D. #19242 c?
TRENT ROTZ : IN THE COURT OF COMMON ASNF
: THE 9TH JUDICIAL DISTRICT, P:(-. -'
Plaintiff
No. 10-188 Civil Term
V
CIVIL ACTION -LAW
CHET SHANK and .
MICHELLE SHANK .
Defendants Judge:
ANSWER TO AMENDED COMPLAINT
NOW COME Defendants and answer the amended complaint of Plaintiff as follows:
1. Admitted.
2. Admitted.
3. Denied. Plaintiff worked for Defendants business C&M Construction as a subcontractor
beginning November 2006. Around January 2008, Plaintiff and Defendant Chet Shank discussed
the possibility of creating a business with a bio-based spray foam insulation product but due to
the poor credit and criminal record of Plaintiff, the business was formed in the name of
Defendants.
4. Denied in that Plaintiff and Defendant Chet Shank began setting up meetings with
various businesses to introduce the product.
5. Denied in that from February 23, 2008 to March 2, 2008, Defendants, Plaintiff and his
girlfriend Ermina Memic represented Thinking Green Systems at the Pennsylvania Home Show
in Harrisburg, Pennsylvania. All costs associated with the show were paid for by C&M
Construction as Thinking Green Systems had not yet been formed.
6. Denied in that Defendant Chet Shank and Plaintiff attended training with BioBased
Technologies to become certified spray applicators of the insulation product. All costs and
expenses were paid for by C&M Construction since the Thinking Green Systems had not yet
started business.
ft
7. Admitted that from January 24, 2008 through July 28, 2008, Plaintiff provided hours of
service and labor to the business.
8. Admitted.
9. Denied. On July 28, 2008, Defendants had a meeting with the Plaintiff and Ermina
Memic. Plaintiff had become increasingly hostile toward Defendants accusing the defendants of
"being shady" as well as demanding that Thinking Green Systems provide health insurance for
him and Ms. Memic. Defendants told Plaintiff that the financial burden was showing on C&M
Construction and Thinking Green Systems, LLC and that Defendants could not afford to take out
another loan to support Plaintiff and Ms. Memic. Thinking Green Systems, LLC had not yet
made a profit even though Plaintiff had been reimbursed for his business expenses. It was
discussed that Defendants had taken out a loan for purchasing the Thinking Green Systems, LLC
trailer and equipment to spray the foam and that all of the start-up costs had been taken paid by
Defendants. Defendants asked Plaintiff if he would consider being a subcontractor instead of a
partner in Thinking Green Systems, LLC. Plaintiff became hostile and proceeded to lift
Defendants kitchen island top off of the base cabinet and slam the top back down. Plaintiff then
proceeded to advance toward Defendant Chet Shank and lifted his fist as if to hit the Defendant
Chet Shank. Ermina Memic then asked Plaintiff to leave the Defendants' home which he did on
his own accord
10. Denied. On May 1, 2008, accountant Trena Brookens of Myer's Tax Service met with the
Plaintiff, Ermina Memic and Defendants to discuss the audit that Plaintiff had requested that was
completed by the accountant. The Thinking Green Systems, LLC account was in order and the
company had a negative $24,303.07 balance.
11. Denied in that Plaintiff did not have further contact with Defendants after a July 28, 2008
meeting.
12. Admitted.
COUNTI
13. Denied. No contract was ever discussed regarding the website for C&M Construction or
Thinking Green Systems or Thinking Green Systems, LLC.
14. Denied in that after reasonable investigation, Defendants are without knowledge or
information sufficient to form a belief as to the truth of the averment because the means of proof
are within the exclusive control of Plaintiff.
15. Denied in that Defendants did not agree with Plaintiff would receive 50% of the profit of
the business together with hourly compensation for his labor. The Certificate of Organization
states that Defendant Chet Shank will receive 60% of the profit and that the Plaintiff would
receive 40% of the profit. At no time was the plaintiff going to receive an hourly wage from
Thinking Green Systems.
16. Denied. The hourly wage for Plaintiff at C&M Construction was $17.00. Plaintiff was
not to be paid an hourly wage by Thinking Green. The vehicle was used for Thinking Green
Systems hours. The reimbursement for use of the vehicle at the end of the tax year was
explained to Plaintiff by the Trena Brookens of Myer's Tax Service. In business dealings, hours
are billed to the customer at a higher rate than wages to offset costs of business insurance,
vehicle insurance, vehicle repair, equipment expenses, etc. At no time did Plaintiff have a loss of
income from this business practice.
17. Denied in that the only agreement was that Plaintiff would receive a 40% share of profits
and reimbursement for vehicle use.
18. Defendants were proprietors or members of the businesses known as Thinking Green
Systems and Thinking Green Systems, LLC.
19. Denied in that Defendants also put in hundreds of hours of services and money from bank
loans and C&M Construction with the intention that eventually the business would be profitable.
20. Denied in that Defendants did not violate the covenant of good faith and fair dealing
implied in the business arrangements but rather put in time and money attempting to obtain
profitability. It was the actions of Plaintiff which deprived him of benefit.
COUNT II
21. Denied in that at no time were the actions of Defendants fraudulent, deceptive, and
unfair. Defendants were attempting to give Plaintiff a chance to build up his credit and reputation
in the community by being a part of the business. It was Plaintiff became deceptive and
accusatory in nature.
COUNT III
22. Denied in that no sums are due Plaintiff from Defendants.
23. Denied in that Plaintiff has not been damaged for a loss of value and future earning as the
plaintiff never contributed any money to the start-up of the business venture.
24. (a) Denied in that by his actions against Defendants and by shutting the web site
down, Plaintiff caused more damage to the business than any expectation of future value
and earnings.
(b) Denied in that after reasonable investigation, Defendants are without knowledge
or information sufficient to form a belief as to the truth of the averment because the
means of proof are within the exclusive control of Plaintiff. On the contrary Plaintiff
damaged the vehicle of Defendants the repair of which will cost over $1,000.00.
(c) Denied in that by his actions against Defendants and by shutting the web site
down, Plaintiff caused more damage to the business than any expectation of future value
and earnings.
(d) Denied in that after reasonable investigation, Defendants are without knowledge
or information sufficient to form a belief as to the truth of the averment because the
means of proof are within the exclusive control of Plaintiff.
25. Plaintiff has not been damaged by a loss of income and expenses. All of Plaintiffs
expenses were paid by the business with the exception of fuel for his vehicle because that
expense comes off with yearly taxes. Plaintiff has not been damaged for loss of future income
from the business. Plaintiff did not contribute any money in the start-up or maintenance of the
business. Plaintiff did not have loss of services of $2453.87 for the web-hosting as stated. bill
was only sent as of the billing of August 2, 2008, at which time the web-sites were non-
functional.
WHEREFORE, Defendants request dismissal of the complaint.
B3
I verify that the statements made in this answer are true and correct. I understand that
false statements herein are made subject to the penalties of 18 Pa.C.S.A. Section 4904, relating to
unworn falsification to authorities.
Chi ?
Chet Shank
CERTIFICATE OF SERVICE
This is to certify that in this case a true copy of this answer has been served upon the
following person(s), by the following means and dates stated:
H. Anthony Adams, Esq., Attorney for Plaintiff
49 West Orange Street, Suite 3
Shippensburg, PA 17257
Date: September 24, 2010
Via: First Class Mail
I verify that the statements made in this Certificate 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.A. Section 4904 relating to unsworn falsification to authorities.
RNFIELD AND FWT CHOFF, LLP
Attorney for
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Statement of Intention to Proceed
To the Court:
intends to proceed with the above captioned matter.Mt"
Print Name ` • �� i •':n N.. -
Date: /0 1„)3 13 Attorney for re.c Z
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.Rule of civil Procedure
New Rule of Civil Procedure 230.2 has been promulgated to govern the termination of inactive cases within the
scope of the Pennsylvania Rules of Civil Procedure. The termination of these cases for inactivity was previously
governed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is
tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting
local rules.
This rule was promulgated in response to the decision of the Supreme Court in Shop v.Eagle, 551 Pa. 360,710 A.2d
1104 (1998) in which the court held that "prejudice to the defendant as a result of delay in prosecution is required
before a case may be dismissed pursuant to local rules implementing Rule of Judicial Administration 1901."
Rule of Judicial Administration 1901(b) has been amended to accommodate the new rule of civil procedure. The
general policy of the prompt disposition of matters set forth in subdivision(a)of that rule continues to be applicable.
II Inactive Cases
The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system. The process is initiated by the
court. After giving notice of intent to terminate an action for inactivity,the course of the procedure is with the parties.
If the parties do not wish to pursue the case, they will take no action and"the Prothonotary shall enter an order as of
course terminating the matter with prejudice for failure to prosecute." If a party wishes to pursue the matter,he or she
will file a notice of intention to proceed and the action shall continue.
a. Where the action has been terminated
If the action is terminated when a party believes that it should not have been terminated, that party may proceed
under Rule230(d)for relief from the order of termination. An example of such an occurrence might be the termination
of a viable action when the aggrieved party did not receive the notice of intent to terminate and thus did not timely file
the notice of intention to proceed.
The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of
the entry of the order of termination on the docket,subdivision(d)(2)provides that the court must grant the petition and
reinstate the action. If the petition is filed later than the thirty-day period, subdivision(d)(3)requires that the plaintiff
must make a showing to the court that the petition was promptly filed and that there is a reasonable explanation or
legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of
termination on the docket and for the failure to file the petition within the thirty-day period under subdivision(d)(2).
B. Where the action has not been terminated
An action which has not been terminated but which continues upon the filing of a notice of intention to proceed may
have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a
common law non pros which exits independently of termination under Rule 230.2.